MindMed Announces Project Angie, Targeting the Treatment of Pain with Psychedelics

PR Newswire

NEW YORK, May 5, 2021 /PRNewswire/ — Mind Medicine (MindMed) Inc. (“MindMed” or the “Company”) (NASDAQ: MNMD) (NEO: MMED), (DE: MMQ), a leading psychedelic-inspired medicine company announces the launch of its Project Angie to advance the development of psychedelics, including LSD, to treat pain conditions. MindMed is currently exploring two primary clinical indications for the treatment of pain.

For the commencement of Project Angie, MindMed will initiate a study of LSD in a severe pain indication. MindMed is currently preparing a pre-IND briefing package for this Phase 2a Proof of Concept study which it plans to submit to the FDA in the second half of 2021. In addition, the Company is also evaluating a second indication in a common, often debilitating, chronic pain syndrome.

Patients experiencing chronic pain represent a large and growing segment of the population and, according to IQVIA, the global market for analgesics is expected to grow over $31 billion by 2030.  At the same time, overuse of opioids in the treatment of pain has contributed to the opioid epidemic in the United States and around the world. There has been little innovation in the pain market in decades and the treatment paradigm is still dominated by opioids and nonsteroidal anti-inflammatory drugs (NSAIDs).

Preliminary evidence, including a clinical study co-authored by MindMed collaborating researchers Prof. Dr. Matthias Liechti and Dr. Kim Kuypers, suggests that psychedelics may offer an entirely novel mechanism of action for treating pain, which could ultimately offer patients a new treatment option. The exact mechanisms by which psychedelics may carry out their analgesic effect have not been fully characterized but may involve direct effects on endogenous pain modulation pathways. This mechanism is particularly relevant as altered function, or dysfunction, of these pain modulation pathways has been implicated in a range of pain syndromes.

“Evidence dating back to the 1950s suggests that LSD and other psychedelics may have analgesic effects, but this treatment area remains largely untapped by companies studying psychedelics, with the majority of research focusing solely on psychiatric indications” said MindMed Chief Development Officer, Rob Barrow

MindMed CEO & Co-Founder J.R. Rahn said “With the launch of Project Angie, we seek to align closely with MindMed’s core mission to improve mental health and combat substance use for the many patients in need. If we can help to develop a new paradigm to treat pain, it may have the potential to greatly reduce the use of addictive medicines such as opioids currently ravaging society and its mental health.”

Additional details about MindMed’s planned clinical trials in pain will be forthcoming.


About MindMed

MindMed is a clinical-stage psychedelic medicine biotech company that discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental illness. The company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including Psilocybin, LSD, MDMA, DMT and an ibogaine derivative, 18-MC. The MindMed executive team brings extensive biopharmaceutical experience to MindMed’s approach to developing the next generation of psychedelic inspired medicines and therapies.

MindMed trades on the NASDAQ under the symbol MNMD and on the Canadian NEO exchange under the symbol MMED. MindMed is also traded in Germany under the symbol MMQ.


Forward-Looking Statements

Certain statements in this news release related to the Company constitute “forward-looking information” within the meaning of applicable securities laws and are prospective in nature. Forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “will”, “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”, “potential” or “continue”, or the negative thereof or similar variations. Forward-looking information in this news release include, but are not limited to, statements regarding the Company’s plans and the timing of such plans related to its study of LSD in a severe pain indications, the potential benefits associated with psychedelics as a pain treatment option generally and compared to other currently available treatment options ability and the Company’s other intended future business plans and operations. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including history of negative cash flows; limited operating history; incurrence of future losses; availability of additional capital; lack of product revenue; compliance with laws and regulations; difficulty associated with research and development; risks associated with clinical trials or studies; heightened regulatory scrutiny; early stage product development; clinical trial risks; regulatory approval processes; novelty of the psychedelic inspired medicines industry; as well as those risk factors discussed or referred to herein and the risks described under the headings “Risk Factors” in the Company’s filings with the securities regulatory authorities in all provinces and territories of Canada which are  available under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results and future events could differ materially from those anticipated in such information. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend and does not assume any obligation to update this forward-looking information.

Media Contact:

[email protected]

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SOURCE Mind Medicine (MindMed) Inc.

Linden and DW Healthcare Partners Complete HydraFacial’s Public Offering via SPAC Merger

PR Newswire

CHICAGO and PARK CITY, Utah, May 5, 2021 /PRNewswire/ — Linden Capital Partners (“Linden”) and DW Healthcare Partners IV, LP (“DW Healthcare Partners”), both private equity firms focused exclusively on the healthcare sector, announced today the completion of the merger of Edge Systems, LLC (“HydraFacial”), a category-creating beauty health company, with Vesper Healthcare Acquisition Corp. (NASDAQ: VSPR) (“Vesper” or “Vesper Healthcare”). Vesper is a special purpose acquisition company (“SPAC”) led by former Allergan CEO Brent Saunders. As a result of the transaction, the combined company, now known as The Beauty Health Company (“BeautyHealth” or the “Company”), is expected to trade on the Nasdaq Stock Market under the ticker symbol “SKIN” beginning May 6, 2021. Linden will remain BeautyHealth’s largest shareholder.

Linden and DW Healthcare Partners acquired HydraFacial in 2016. At the time of its acquisition, HydraFacial operated as Edge Systems, LLC. As part of its differentiated Human Capital Program, Linden recruited and partnered with a new senior leadership team to execute on a proprietary value creation plan. Since the 2016 acquisition, HydraFacial has experienced significant growth as a result of Linden’s value creation plan, which included rebranding to HydraFacial, overhauling sales and marketing, expanding into new international markets, and investing heavily to build out the company’s infrastructure across operations, finance, IT, and R&D.

As a publicly traded company, BeautyHealth will continue to execute its organic and inorganic growth strategies under the leadership of Brent Saunders as Executive Chairman and Clint Carnell as CEO. Linden and DW Healthcare Partners will maintain active representation on the Company’s Board of Directors.

“We’d like to thank the entire HydraFacial team for driving extraordinary growth and building the Company into a global leader in the beauty health category,” said Brian Miller, Linden Managing Partner. “As the largest individual shareholder going forward, Linden looks forward to providing continued partnership and support to the Company.”

Linden Partner Kam Shah added, “HydraFacial’s rapid transformation from a niche medical technology provider into a global, category-creating leader in beauty health represents another great example of Linden’s differentiated value creation program at work.”

“We have built a tremendous business in HydraFacial, which has continued to perform well and grow its installed base amidst a global pandemic,” said Doug Schillinger, DW Healthcare Managing Director.

Brent Saunders, CEO of Vesper and former CEO of Allergan added, “Linden and DW Healthcare Partners have shepherded HydraFacial into an impressive, category-creating company that represents the perfect platform to achieve our goal of building a premier company in beauty health.”

Jefferies LLC served as Lead Financial Advisor, Piper Sandler served as Financial Advisor and Kirkland & Ellis LLP acted as legal advisor to HydraFacial.  Goldman Sachs & Co. served as financial advisor to Vesper Healthcare and Wachtell, Lipton, Rosen & Katz acted as legal counsel.

About Linden Capital Partners
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on the healthcare industry. Founded in 2004, Linden is one of the country’s largest dedicated healthcare private equity firms. Linden’s strategy is based upon three elements: (i) healthcare specialization, (ii) integrated private equity and operating expertise, and (iii) its differentiated human capital program. Linden invests in middle market platforms in the medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Since its founding, Linden has invested more than $2.5 billion in healthcare companies and has raised over $3 billion of commitments, augmented by capital provided by the firm’s limited partners for larger transactions. For more information, please visit www.lindenllc.com.

About DW Healthcare Partners
DW Healthcare Partners is a private equity firm focused exclusively on the healthcare industry. The firm manages over $1.43 billion in aggregate capital commitments and invests in leading healthcare companies with proven management teams. DW Healthcare Partners is led by seasoned healthcare executives with more than 120 years of combined industry experience. The firm provides the capital, strategic guidance, and acquisition expertise to help mid-stage companies realize their growth potential. For more information, please visit: www.dwhp.com.  

About The Beauty Health Company
BeautyHealth is a category-creating beauty health company focused on bringing innovative products to market. Our flagship brand HydraFacial is a non-invasive, and approachable beauty health platform and ecosystem with a powerful community of estheticians, consumers and partners, bridging medical and consumer retail to democratize and personalize skin care solutions for the masses. Leading the charge in beauty health as a category-creator, HydraFacial uses a unique delivery system to cleanse, extract, and hydrate with their patented hydradermabrasion technology and super serums that are made with nourishing ingredients, providing an immediate outcome and creating an instantly gratifying glow in just three steps and 30 minutes. HydraFacial® and Perk™ products are available in over 87 countries with over 16,000 delivery systems globally and millions of treatments performed each year. For more information, visit the brand on LinkedIn, Facebook, Instagram, or at HydraFacial.com. For more information, please visit at https://investors.beautyhealth.com/.

About Vesper Healthcare Acquisition Corp.
Vesper Healthcare Acquisition Corp. was a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, with the intention to focus its search on companies in the pharmaceutical and healthcare sectors.

Forward-Looking Statements
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside The Beauty Health Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of the Business Combination; costs related to the Business Combination; the inability to obtain or maintain the listing of The Beauty Health Company’s shares on Nasdaq; The Beauty Health Company’s ability to manage growth; The Beauty Health Company’s ability to execute its business plan and meet its projections; potential litigation involving The Beauty Health Company’s; changes in applicable laws or regulations; the possibility that The Beauty Health Company’s may be adversely affected by other economic, business, and/or competitive factors; and the impact of the continuing COVID-19 pandemic on the Company’s business. The Beauty Health Company’s does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media Contact:
Samantha Taccone,
[email protected]

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SOURCE DW Healthcare Partners

PSEG Announces 2021 First Quarter Results

$1.28 PER SHARE OF NET INCOME

NON-GAAP OPERATING EARNINGS OF $1.28 PER SHARE

Re-Affirms Non-GAAP 2021 Operating Earnings Guidance of $3.35 – $3.55 per Share

BPU Extends $10/MWh Zero Emission Certificates for Three NJ Nuclear Units to May 2025

Progress on Strategic Alternatives Yields Sale of Solar Source Portfolio

PR Newswire

NEWARK, N.J., May 5, 2021 /PRNewswire/ — Public Service Enterprise Group (NYSE: PEG) reported Net Income for the first quarter of 2021 of $648 million, or $1.28 per share as compared to Net Income of $448 million, or $0.88 per share, in the first quarter of 2020. Non-GAAP Operating Earnings for the first quarter of 2021 were $650 million, or $1.28 per share, compared to non-GAAP Operating Earnings for the first quarter of 2020 of $520 million, or $1.03 per share. Non-GAAP results for the first quarter exclude items shown in Attachments 7 and 8.

Ralph Izzo, chairman, president and chief executive officer said, “We are off to a solid start in 2021 and well positioned to execute on our financial and strategic goals during the balance of the year.  With the majority of our nearly $2 billion of Clean Energy Future programs having moved from approval to execution, PSE&G is helping to advance the decarbonization of New Jersey in a sizable and equitable way. The recent Biden Infrastructure proposal focusing on climate action contains several encouraging signals supporting offshore wind, existing nuclear generation, and electrification of transportation, all aligned with PSEG’s business plan. PSEG strongly supports a national approach to accelerate economy-wide, net-zero emissions even sooner than 2050, in a constructive manner that expands green jobs by investing in clean energy infrastructure.

The New Jersey Board of Public Utilities’ (BPU) April 27 decision to award our three New Jersey nuclear units a continuation of the full $10 per MWh Zero Emission Certificate through May 2025 will similarly advance climate action in New Jersey by recognizing nuclear’s reliability, resiliency and environmental benefits and help to preserve the state’s largest carbon-free generating resource. We applaud the BPU for its decision – which we believe is in the best interests of the state of New Jersey and its ability to achieve its long-term clean energy goals. PSEG Power has also made progress on the exploration of strategic alternatives for its fossil and solar generating fleet. PSEG has entered into an agreement to sell its 467 MWDC Solar Source portfolio to an affiliate of LS Power. The solar sale is expected to close in the second or third quarter of 2021, subject to customary regulatory and other closing conditions. PSEG Power is continuing the exploration of strategic alternatives for its fossil generating fleet, and currently anticipates reaching the contract stage around mid-year. With over a decade of capital allocation directed mainly toward PSE&G, PSEG today is primarily a regulated electric and gas utility, and these transactions will move us even further in that direction. PSEG’s remaining generating business will consist of a carbon-free nuclear fleet, and regional offshore wind investments that will be highly contracted.

The COVID-19 pandemic and its economic dislocations continue to impact the New Jersey economy. The large contribution of the Transmission and Residential electric and gas segments to our overall sales mix, as well as a supportive regulatory order that authorizes deferral of certain COVID-19 related costs for future recovery, have had a stabilizing effect on the margins of our utility business. New Jersey has been successful in vaccinating nearly half its population with at least one dose of the available vaccines, and we are hopeful that the remaining restrictions on economic activity will continue to ease in the near term.”

The following table provides a reconciliation of PSEG’s Net Income to non-GAAP Operating Earnings for the first quarter. See Attachments 7 and 8 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings.


PSEG CONSOLIDATED RESULTS (unaudited)


First Quarter Comparative Results


2021 and 2020

Income

Diluted Earnings

($ millions)

Per Share



2021



2020



2021



2020


Net Income

$648

$448

$1.28

$0.88

  Reconciling Items

2

72

0.15


Non-GAAP Operating Earnings


$650


$520


$1.28


$1.03


 Avg. Shares


507M


       507M

Ralph Izzo added, “We are re-affirming non-GAAP Operating Earnings guidance for full-year 2021 of $3.35$3.55 per share. This affirmation assumes normal weather and plant operations for the remainder of the year and incorporates the Conservation Incentive Programs that begin in June for electric and in October for gas to cover variations in revenue due to energy efficiency and other impacts. We are on track to execute PSEG’s five-year, $14 billion to $16 billion capital plan through 2025 and have the financial strength to fund it without the need to issue new equity. Over 90% of this capital program is directed to PSE&G, which is expected to produce 6.5% to 8% compound annual growth in rate base over the 2021 – 2025 period.”

The following table outlines PSEG’s expectations for non-GAAP Operating Earnings in 2021 by subsidiary:


2021 Non-GAAP Operating Earnings Guidance


($ millions, except EPS)


2021E

   PSE&G

$1,410 – $1,470

   PSEG Power

$280 – $370

   PSEG Enterprise/Other

($15)

Non-GAAP Operating Earnings

$1,700 – $1,800

   Non-GAAP Operating EPS

 $3.35 – $3.55

    E = Estimate   

Results and Outlook by Operating Subsidiary

PSE&G


Public Service Electric & Gas


First Quarter 2021 and 2020 Comparative Results


($ millions, except EPS)


PSE&G


1Q 2021


1Q 2020


Q/Q Change

Net Income

$477

$440

$37

Earnings Per Share

$0.94

$0.87

$0.07

PSE&G reported Net Income of $477 million ($0.94 per share) for the first quarter of 2021 compared with Net Income of $440 million ($0.87 per share) for the first quarter of 2020.

PSE&G’s first quarter 2021 results improved by $0.07 per share driven by revenue growth from ongoing capital investment programs, favorable pension/OPEB results and higher electric weather normalized Residential volume. Transmission rate base added $0.02 per share to first quarter Net Income compared to the first quarter of 2020. Gas margin improved by $0.03 per share over last year’s first quarter, driven by the scheduled recovery of investments made under the second phase of the Gas System Modernization Program. Electric margin was $0.01 per share favorable compared to the first quarter of 2020 on higher weather normalized Residential volume. O&M expense was $0.02 per share unfavorable compared with first quarter 2020, reflecting higher costs from several February snowstorms. Depreciation increased by $0.01 per share reflecting higher plant in service.  Distribution-related pension expense was $0.02 per share favorable compared to first quarter 2020.  Flow through taxes and other were $0.02 per share favorable compared to first quarter 2020. This benefit is due to the use of an annual effective tax rate that will reverse over the remainder of the year, and was partly offset by the timing of taxes related to bad debt expense. 

Winter weather, as measured by heating degree-days, was 4% milder than normal but was 18% colder than the mild winter experienced in first quarter 2020. For the trailing 12-months ended March 31, total weather-normalized sales reflect the expected higher Residential and lower Commercial and Industrial sales observed in 2020 due to the economic impacts of COVID-19. Total Electric sales declined by 2% while Gas sales increased by approximately 1%. Residential customer growth for Electric and Gas remained positive during the period.

PSE&G invested approximately $0.6 billion in the first quarter and is on track to fully execute on its planned 2021 capital investment program of $2.7 billion. The 2021 capital spending program will include infrastructure upgrades to its transmission and distribution facilities, as well as the rollout of the Clean Energy Future investments in energy efficiency, energy cloud (smart meters) and electric vehicle charging infrastructure.

PSE&G’s forecast of Net Income for 2021 is unchanged at $1,410 million$1,470 million.

PSEG Power


First Quarter 2021 and 2020 Comparative Results


($ millions, except EPS)


PSEG Power


1Q 2021


1Q 2020


Q/Q Change

Net Income

$161

$13

$148

Earnings Per Share (EPS)

$0.32

$0.02

$0.30

Non-GAAP Operating Earnings

$163

$85

$78

Non-GAAP EPS

$0.32

$0.17

$0.15

Non-GAAP Adjusted EBITDA

$321

$201

$120

PSEG Power reported Net Income of $161 million ($0.32 per share) for the first quarter of 2021, non-GAAP Operating Earnings of $163 million ($0.32 per share), and non-GAAP Adjusted EBITDA of $321 million. This compares to first quarter 2020 Net Income of $13 million, non-GAAP Operating Earnings of $85 million and non-GAAP Adjusted EBITDA of $201 million

PSEG Power’s first quarter results benefited from expected margin improvement in capacity and other items associated with a favorable weather comparison to the first quarter of 2020, as well as certain other items expected to reverse in subsequent quarters. A scheduled improvement in PJM capacity revenue improved non-GAAP Operating Earnings comparisons by $0.03 per share compared with Q1 2020. Higher generation output for the quarter added $0.01 per share from the absence of the unplanned Salem 1 outage in first quarter of 2020. Favorable market conditions, influenced by February’s cold weather, increased results by $0.03 per share, as the expected $2/MWh average decline in recontracting will become more pronounced in future quarters. The weather-related improvement in total gas send-out to Commercial and Industrial customers increased results by $0.04 per share. This increase in gas operations is expected to reverse later in the year due to the absence in 2021 of a one-time benefit recognized in the third quarter of 2020.  Lower O&M expense was $0.03 per share favorable in the quarter, reflecting the absence of first quarter outages at Bergen 2 and Salem Unit 1 in 2020.  Lower depreciation and lower interest expense combined to improve comparisons by $0.01 per share versus the year-ago quarter.

Generation output increased by just under 1% to total 13.3 TWh, reflecting the absence of a month-long unplanned outage experienced at Salem Unit 1 during the first quarter 2020. PSEG Power’s CCGT fleet produced 4.7 TWh, down 8%, reflecting lower market demand. The nuclear fleet produced 8.2 TWh, up 3%, and operated at a capacity factor of 98.8% for the first quarter, representing 62% of total generation. PSEG Power is forecasting generation output of 36 to 38 TWh for the three remaining quarters of 2021, and has hedged approximately 95% – 100% of production at an average price of $30 per MWh. 

The forecast of PSEG Power’s non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA for 2021 remain unchanged at $280 million$370 million, and $850 million$950 million, respectively. 

PSEG Enterprise/Other

PSEG Enterprise/Other reported Net Income of $10 million, $0.02 per share, for the first quarter of 2021 compared to a Net Loss of $5 million, $(0.01) per share, for the first quarter of 2020. The increase was driven by higher tax benefits recorded in the first quarter of 2021 due to the use of an annual effective tax rate that will reverse over the remainder of the year, as well as interest income associated with a prior IRS audit settlement. 

For 2021, the forecast for PSEG Enterprise/Other remains unchanged at a Net Loss of $15 million

Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a publicly traded diversified energy company with approximately 13,000 employees. Headquartered in Newark, N.J., PSEG’s principal operating subsidiaries are: Public Service Electric and Gas Co. (PSE&G),
PSEG Power and PSEG Long Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North America for 13 consecutive years (

https://corporate.pseg.com

).

Non-GAAP Financial Measures

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG’s financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of returns (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items.

Management believes the presentation of non-GAAP Adjusted EBITDA for PSEG Power is useful to investors and other users of our financial statements in evaluating operating performance because it provides them with an additional tool to compare business performance across companies and across periods. Management also believes that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to items such as income tax expense, interest expense and depreciation and amortization, which can vary substantially from company to company depending upon, among other things, the book value of assets, capital structure and whether assets were constructed or acquired. Non-GAAP Adjusted EBITDA also allows investors and other users to assess the underlying financial performance of our fleet before management’s decision to deploy capital. Non-GAAP Adjusted EBITDA excludes the same items as our non-GAAP Operating Earnings measure as well as income tax expense, interest expense and depreciation and amortization.

See Attachments 7 and 8 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA. The presentation of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA is intended to complement, and should not be considered an alternative to the presentation of Net Income, which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA as presented in this release may not be comparable to similarly titled measures used by other companies.

Due to the forward looking nature of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA guidance, PSEG is unable to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility.


Forward-Looking Statements

Certain of the matters discussed in this report about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward- looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

  • any inability to successfully develop, obtain regulatory approval for, or construct generation, transmission and distribution projects;
  • lack of growth or slower growth in the number of customers or the failure of our Conservation Incentive Program to fully address a decline in customer demand;
  • any equipment failures, accidents, severe weather events, acts of war or terrorism or other incidents, including pandemics such as the ongoing coronavirus pandemic, that may impact our ability to provide safe and reliable service to our customers;
  • any inability to recover the carrying amount of our long-lived assets;
  • any inability to maintain sufficient liquidity;
  • the impact of cybersecurity attacks or intrusions;
  • the impact of the ongoing coronavirus pandemic;
  • the impact of our covenants in our debt instruments on our operations;
  • adverse performance of our nuclear decommissioning and defined benefit plan trust fund investments and changes in funding requirements;
  • risks associated with the timeline and ultimate outcome of our exploration of strategic alternatives relating to PSEG Power’s non-nuclear generating fleet;
  • the failure to complete, or delays in completing, our proposed investment in the Ocean Wind offshore wind project, or following the completion of our initial investment in the project, the failure to realize the anticipated strategic and financial benefits of the project;
  • fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
  • our ability to obtain adequate fuel supply;
  • market risks impacting the operation of our generating stations;
  • changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
  • third-party credit risk relating to our sale of generation output and purchase of fuel;
  • any inability of PSEG Power to meet its commitments under forward sale obligations;
  • reliance on transmission facilities to maintain adequate transmission capacity for our power generation fleet;
  • the impact of changes in state and federal legislation and regulations on our business, including PSE&G’s ability to recover costs and earn returns on authorized investments;
  • PSE&G’s proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
  • the absence of a long-term legislative or other solution for our New Jersey nuclear plants that sufficiently values them for their carbon-free, fuel diversity and resilience attributes, or the impact of the current or subsequent payments for such attributes being materially adversely modified through legal proceedings;
  • adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning and transmission returns;
  • risks associated with our ownership and operation of nuclear facilities, including regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
  • changes in federal and state environmental regulations and enforcement; and
  • delays in receipt of, or an inability to receive, necessary licenses and permits.

All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward- looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com.

 


CONTACTS


Investor Relations:


Media Relations:

973-430-6565

908-531-4253


[email protected] 


[email protected]

 


Attachment 1


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED


Consolidating Statements of Operations


(Unaudited, $ millions, except per share data)


Three Months Ended March 31, 2021


PSEG



PSEG Enterprise/

Other

(a)



PSE&G


PSEG
Power

OPERATING REVENUES  

$            2,889

$                    (351)

$             2,073

$             1,167

OPERATING EXPENSES

Energy Costs

1,029

(502)

849

682

Operation and Maintenance

778

132

424

222

Depreciation and Amortization

341

8

241

92

  Total Operating Expenses

2,148

(362)

1,514

996

OPERATING INCOME 

741

11

559

171

Income from Equity Method Investments

3

3

Net Gains (Losses) on Trust Investments

60

1

1

58

Other Income (Deductions)

25

1

28

(4)

Non-Operating Pension and OPEB Credits (Costs)

82

4

66

12

Interest Expense

(146)

(21)

(98)

(27)

INCOME (LOSS) BEFORE INCOME TAXES 

765

(4)

556

213

Income Tax Benefit (Expense)

(117)

14

(79)

(52)


NET INCOME 


$                648


$                       10


$                477


$                161

Reconciling Items Excluded from Net Income(b)

2

2


OPERATING EARNINGS (non-GAAP)


$                650


$                       10


$                477


$                163


Earnings Per Share


NET INCOME 


$                1.28


$                     0.02


$                0.94


$                0.32

Reconciling Items Excluded from Net Income(b)


OPERATING EARNINGS (non-GAAP)


$                1.28


$                     0.02


$                0.94


$                0.32


Three Months Ended March 31, 2020


PSEG



PSEG Enterprise/

Other

(a)



PSE&G


PSEG
Power

OPERATING REVENUES  

$            2,781

$                    (322)

$             1,883

$             1,220

OPERATING EXPENSES

Energy Costs

906

(478)

708

676

Operation and Maintenance

754

127

386

241

Depreciation and Amortization

324

8

222

94

  Total Operating Expenses

1,984

(343)

1,316

1,011

OPERATING INCOME 

797

21

567

209

Income from Equity Method Investments

3

3

Net Gains (Losses) on Trust Investments

(221)

(1)

(220)

Other Income (Deductions)

4

27

(23)

Non-Operating Pension and OPEB Credits (Costs)

62

3

51

8

Interest Expense

(153)

(23)

(96)

(34)

INCOME (LOSS) BEFORE INCOME TAXES 

492

549

(57)

Income Tax Benefit (Expense)

(44)

(5)

(109)

70


NET INCOME (LOSS)


$                448


$                        (5)


$                440


$                   13

Reconciling Items Excluded from Net Income (Loss)(b)

72

72


OPERATING EARNINGS (non-GAAP)


$                520


$                        (5)


$                440


$                   85


Earnings Per Share


NET INCOME (LOSS)


$               0.88


$                   (0.01)


$               0.87


$               0.02

Reconciling Items Excluded from Net Income (Loss)(b)

0.15

0.15


OPERATING EARNINGS (non-GAAP)


$               1.03


$                   (0.01)


$               0.87


$               0.17

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.

(b) See Attachments 7 and 8 for details of items excluded from Net Income to compute Operating Earnings (non-GAAP).  

 


Attachment 2


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED


Capitalization Schedule


(Unaudited, $ millions)


March 31,


December 31,


2021


2020

DEBT

Commercial Paper and Loans

$                      665

$                   1,063

Long-Term Debt*

16,775

16,180

Total Debt

17,440

17,243

STOCKHOLDERS’ EQUITY

Common Stock

5,013

5,031

Treasury Stock

(902)

(861)

Retained Earnings

12,708

12,318

Accumulated Other Comprehensive Loss

(542)

(504)

Total Stockholders’ Equity

16,277

15,984

Total Capitalization

$                 33,717

$                 33,227

*Includes current portion of Long-Term Debt.

 


Attachment 3


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited, $ millions)


Three Months Ended March 31,


2021


2020


CASH FLOWS FROM OPERATING ACTIVITIES

 Net Income

$           648

$            448

 Adjustments to Reconcile Net Income to Net Cash Flows

   From Operating Activities

379

705


NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

1,027

1,153


NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

(624)

(724)


NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(134)

237


Net Change in Cash, Cash Equivalents and Restricted Cash

269

666


Cash, Cash Equivalents and Restricted Cash at Beginning of Period

572

176


Cash, Cash Equivalents and Restricted Cash at End of Period

$           841

$            842

 


Attachment 4


PUBLIC SERVICE ELECTRIC & GAS COMPANY


 Retail Sales 


(Unaudited)


March 31, 2021


Electric Sales


Three Months


   Change vs.



Sales (millions kWh)


Ended


2020

Residential

3,266

14 %

Commercial & Industrial

6,268

(3%)

Other

99

0 %


Total


9,633


2 %


Gas Sold and Transported


Three Months


Change vs.



Sales (millions therms)


Ended


2020


Firm Sales

Residential Sales

741

18 %

Commercial & Industrial

470

14 %


Total Firm Sales


1,211


17 %


Non-Firm Sales*

Commercial & Industrial

280

45 %


Total Non-Firm Sales


280


Total Sales


1,491


21 %

*Contract Service Gas rate included in non-firm sales


Weather Data*


Three Months


Change vs.


Ended


2020

Degree Days – Actual

2,445

18 %

Degree Days – Normal

2,536

*Winter weather as defined by heating degree days (HDD) to serve as a measure for the need for heating. For each day, HDD is calculated as HDD = 65°F – the average hourly daily temperature. The measures use data provided by the National Oceanic and Atmospheric Administration based on readings from Newark Airport. Comparisons to normal are based on twenty-years of historic data.

 


Attachment 5


PSEG POWER LLC



Generation Measures

(1)



(Unaudited)


GWhr Breakdown


Three Months Ended


March 31,


2021


2020

Nuclear – NJ

5,351

5,102

Nuclear – PA

2,894

2,933


Total Nuclear


8,245


8,035

Fossil – Natural Gas – NJ

1,783

1,981

Fossil – Natural Gas – NY

981

1,023

Fossil – Natural Gas – MD

1,009

1,194

Fossil – Natural Gas – CT

991

952



Total Natural Gas

(2)



4,764


5,150


Fossil – Coal


248


(7)


13,257


13,178


% Generation by Fuel Type


Three Months Ended


March 31,


2021


2020

Nuclear – NJ

40%

39%

Nuclear – PA

22%

22%


Total Nuclear


62%


61%

Fossil – Natural Gas – NJ

13%

15%

Fossil – Natural Gas – NY

7%

8%

Fossil – Natural Gas – MD

8%

9%

Fossil – Natural Gas – CT

8%

7%



Total Natural Gas

(2)



36%


39%


Fossil – Coal


2%


0%


100%


100%


(1)Indicates Period Net Generation; negative value reflects more GWh required to operate plants than were generated. Excludes Solar and Kalaeloa.


(2)Includes several units that are dual fuel for oil.

 


Attachment 6


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED


Statistical Measures


(Unaudited)


Three Months Ended March 31,


2021


2020

Weighted Average Common Shares Outstanding (millions)

Basic

504

504

Diluted

507

507

Stock Price at End of Period

$60.21

$44.91

Dividends Paid per Share of Common Stock 

$  0.51

$  0.49

Dividend Yield

3.4%

4.4%

Book Value per Common Share

$32.33

$30.28

Market Price as a Percent of Book Value

186 %

148 %

 


Attachment 7


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED


Consolidated Operating Earnings (non-GAAP) Reconciliation


Three Months Ended


Reconciling Items


March 31,


2021


2020


($ millions, Unaudited)


Net Income


$        648


$        448

(Gain) Loss on Nuclear Decommissioning Trust (NDT) 

Fund Related Activity, pre-tax (PSEG Power)

(55)

219

(Gain) Loss on Mark-to-Market (MTM), pre-tax (a)(PSEG Power)

47

(107)

Oil Lower of Cost or Market (LOCOM) adjustment, pre-tax (PSEG Power)

20

Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b)

10

(60)


Operating Earnings (non-GAAP)


$        650


$        520


PSEG Fully Diluted Average Shares Outstanding (in millions)


507


507


($ Per Share Impact –
Diluted, Unaudited)


Net Income


$       1.28


$       0.88

(Gain) Loss on NDT Fund Related Activity, pre-tax (PSEG Power)

(0.11)

0.44

(Gain) Loss on MTM, pre-tax (a)(PSEG Power)

0.09

(0.21)

Oil LOCOM adjustment, pre-tax (PSEG Power)

0.04

Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b)

0.02

(0.12)


Operating Earnings (non-GAAP)


$       1.28


$       1.03

(a) Includes the financial impact from positions with forward delivery months.

(b) Income tax effect calculated at the statutory rate except for NDT related activity which is calculated at the statutory rate plus a 20% tax on income (loss) from qualified NDT funds.

 


Attachment 8


PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation


Three Months Ended


Reconciling Items


March 31,


2021


2020


($ millions, Unaudited)


Net Income


$        161


$          13

(Gain) Loss on NDT Fund Related Activity, pre-tax

(55)

219

(Gain) Loss on MTM, pre-tax (a)

47

(107)

Oil LOCOM adjustment, pre-tax

20

Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b)

10

(60)


Operating Earnings (non-GAAP)


$        163


$          85

Depreciation and Amortization, pre-tax (c)

90

93

Interest Expense, pre-tax (c) (d)

26

33

Income Taxes (c) 

42

(10)


Adjusted EBITDA (non-GAAP)


$        321


$        201


PSEG Fully Diluted Average Shares Outstanding (in millions)


507


507

(a) Includes the financial impact from positions with forward delivery months.

(b) Income tax effect calculated at the statutory rate except for NDT related activity which is calculated at the statutory rate plus a 20% tax on income (loss) from qualified NDT funds.

(c) Excludes amounts related to Operating Earnings (non-GAAP) reconciling items.

(d) Net of capitalized interest.

 

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SOURCE PSEG

CME Group Declares Quarterly Dividend

PR Newswire

CHICAGO, May 5, 2021 /PRNewswire/ — CME Group Inc., the world’s leading and most diverse derivatives marketplace, today declared a second-quarter dividend of $0.90 per share.  The dividend is payable June 25, 2021, to shareholders of record as of June 10, 2021.

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest ratesequity indexesforeign exchangeenergyagricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor’s Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners. 

CME-G

 

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SOURCE CME Group

Enbridge Declares Quarterly Dividends

PR Newswire

CALGARY, AB, May 5, 2021 /PRNewswire/ – The Board of Directors of Enbridge Inc. (TSX: ENB) (NYSE: ENB) has declared a quarterly dividend of $0.835 per common share, payable on June 1, 2021 to shareholders of record on May 14, 2021. The amount of the dividend is consistent with the March 1, 2021 dividend.

The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on June 1, 2021 to shareholders of record on May 14, 2021.  All amounts shown are in Canadian dollars unless otherwise specified.

Common Shares

$0.835

Preference Shares, Series A

$0.34375

Preference Shares, Series B

$0.21340

Preference Shares, Series C

$0.15501

Preference Shares, Series D

$0.27875

Preference Shares, Series F

$0.29306

Preference Shares, Series H

$0.27350

Preference Shares, Series J

US$0.30540

Preference Shares, Series L

US$0.30993

Preference Shares, Series N

$0.31788

Preference Shares, Series P

$0.27369

Preference Shares, Series R

$0.25456

Preference Shares, Series 1

US$0.37182

Preference Shares, Series 3

$0.23356

Preference Shares, Series 5

US$0.33596

Preference Shares, Series 7

$0.27806

Preference Shares, Series 9

$0.25606

Preference Shares, Series 11

$0.24613

Preference Shares, Series 13

$0.19019

Preference Shares, Series 15

$0.18644

Preference Shares, Series 17

$0.321875

Preference Shares, Series 19

$0.30625


About Enbridge Inc.


Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company’s common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

FOR FURTHER INFORMATION PLEASE CONTACT: 

Media
Toll Free: (888) 992-0997
Email: [email protected]

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Toll Free: (800) 481-2804
Email: [email protected]

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SOURCE Enbridge Inc.

Spirit AeroSystems Reports First Quarter 2021 Results

PR Newswire

WICHITA, Kan., May 5, 2021 /PRNewswire/ —

  • Delivered 269 shipsets, compared to 324 in Q1 2020 including 29 737 MAX shipsets in Q1 2021 compared to 18 in Q1 2020; expect to deliver about 160 737 MAX shipsets in 2021
  • $901 million in Q1 2021 revenue, compared to $1,077 million in Q1 2020
  • Cash used in operations of $(170) million and free cash flow* of $(198) million in Q1 2021 compared to cash used in operations of $(331) million and free cash flow* of $(362) million in Q1 2020
  • Full-year 2021 cash used in operations is expected to be between $(50) to $(150) million; full-year 2021 free cash flow* is expected to be between $(200) and $(300) million
  • EPS of $(1.65) in Q1 2021 compared to $(1.57) in Q1 2020; Adjusted EPS* of $(1.22) in Q1 2021 compared to $(0.79) in Q1 2020
  • Prepaid $300 million of floating rate notes in February 2021

Spirit AeroSystems Holdings, Inc. [NYSE: SPR] (“Spirit” or the “Company”) reported first quarter 2021 financial results.


Table 1.  Summary Financial Results (unaudited)


1st Quarter


($ in millions, except per share data)


2021


2020


Change


Revenues


$901


$1,077


(16%)


Operating Loss


($126)


($168)


**


Operating Loss as a % of Revenues


(14.0%)


(15.5%)


**


Net Loss


($172)


($163)


**


Net Loss as a % of Revenues


(19.0%)


(15.1%)


**


Loss Per Share (Fully Diluted)


($1.65)


($1.57)


**


Adjusted Loss Per Share (Fully Diluted)*


($1.22)


($0.79)


**


Fully Diluted Weighted Avg Share Count


104.1


103.7


**     Represents an amount equal to or in excess of 100% or not meaningful.

“A year ago we were grappling with unprecedented disruption and uncertainty,” said Tom Gentile, Spirit AeroSystems President and Chief Executive Officer. “The recovery this year is underway but slower than expected, particularly for international air travel, which is creating headwinds for the widebody programs. We intend to use our excess widebody production capacity to pursue defense program opportunities. While a broader air traffic recovery will continue to take some time, we are encouraged by improving domestic air travel, which is primarily served by narrowbody aircraft.  We believe Spirit is well positioned to benefit from this improvement given about 85% of our backlog consists of narrowbody aircraft.  We are increasing 737 MAX production rates in line with Boeing’s objective of 31 aircraft per month in 2022, and have started bringing back employees to support our factories.”

“Over the past few months, we have also been performing ongoing 787 engineering analysis and rework to support Boeing’s resumption of deliveries in the first quarter of 2021 which has resulted in a forward loss,” said Gentile. “We are pleased to see that Boeing resumed 787 deliveries in the first quarter.”

Revenue

Spirit’s first quarter of 2021 revenue was $900.8 million, down from the same period of 2020, primarily due to the significantly lower widebody production rates due to reduced international air traffic resulting from the impacts of COVID-19 as well as lower production rates on the Airbus A320 program.  First quarter 2021 revenue includes increased revenue from the recently acquired A220 wing and Bombardier programs as well as defense program revenue.  Deliveries decreased to 269 shipsets during the first quarter of 2021 compared to 324 shipsets in the same period of 2020, including Boeing 787 deliveries of 15 shipsets compared to 40 shipsets in the same period of the prior year, and 12 Airbus A350 shipset deliveries compared to 26 in the same period of 2020.  In the first quarter of 2021, Airbus A320 deliveries were 130 compared to 188 in the first quarter of 2020.

Spirit’s backlog at the end of the first quarter of 2021 was approximately $33 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.

Earnings

Operating loss for the first quarter of 2021 was $125.9 million, as compared to operating loss of $167.5 million in the same period of 2020.  The decreased loss was primarily driven by lower restructuring costs, excess capacity, abnormal COVID-19 related production costs and SG&A expense in the first quarter of 2021 compared to the first quarter of 2020, partially offset by additional forward losses on Boeing 787 and Airbus A350 programs. Included in the first quarter 2021 operating loss were pretax $5.8 million of unfavorable cumulative catch-up adjustments and excess capacity costs of $67.6 million.  Additionally, the first quarter of 2021 included pretax forward loss charges of $72.4 million, primarily driven by Boeing 787 engineering analysis and rework to support Boeing’s resumption of deliveries and the impact of lower Airbus A350 production rates coupled with higher costs to achieve production quality improvements. In comparison, during the first quarter of 2020, Spirit recorded pretax $8.2 million of unfavorable cumulative catch-up adjustments, excess capacity costs of $73.4 million, $19.7 million of net forward loss charges, restructuring expenses of $42.6 million and abnormal COVID-19 costs of $25.4 million.

Other income for the first quarter 2021 was $12.8 million, compared to a net expense of $49.0 million for the same period in the prior year.  The increase in income primarily reflects a net pension loss recognized in the prior year period related to a voluntary retirement program (“VRP”).  Interest expense and financing fee amortization for the first quarter of 2021 increased $27.6 million, primarily driven by increased interest expense on more debt as well as higher interest rates on the debt compared to the same period in the prior year. 

First quarter EPS was $(1.65), compared to $(1.57) in the same period of 2020. First quarter 2021 adjusted EPS* was $(1.22), which excluded the impacts from the acquisitions, restructuring costs and the incremental $42.3 million deferred tax asset valuation allowance in the first quarter of 2021. During the same period of 2020, adjusted EPS* was $(0.79), which excluded the impact of the Asco and Bombardier acquisitions, restructuring costs and the voluntary retirement program offered during 2020.  (Table 1)  

Cash

Cash used in operations in the first quarter of 2021 was $(170) million as compared to $(331) million in the same quarter last year, primarily due to positive impacts of working capital and partially offset by $215 million received in the first quarter of 2020 related to the memorandum of agreement with Boeing.  Free cash flow* in the first quarter of 2021 was $(198) million as compared to $(362) million in the same period of 2020. Cash balance at the end of the first quarter of 2021 was $1.4 billion. (Table 2)   


Table 2.  Cash Flow and Liquidity (unaudited) 


1st Quarter


($ in millions)


2021


2020


Change


Cash used in Operations


($170)


($331)


**


Purchases of Property, Plant & Equipment


($28)


($31)


(11%)


Free Cash Flow*


($198)


($362)


**


April 1,


December 31,


Liquidity


2021


2020


Cash


$1,359


$1,873


Total Debt


$3,565


$3,874


**  Represents an amount equal to or in excess of 100% or not meaningful.

2021 Cash Outlook

Full-year 2021 cash used in operations is expected to be between $(50) to $(150) million; full-year 2021 free cash flow* is expected to be between $(200) and $(300) million.  Please refer to our Cautionary Statement Regarding Forward-Looking Statements below and Item 1A. “Risk Factors” in our Annual Report on Form 10-K.


Segment Results

Fuselage Systems

Fuselage Systems segment revenue in the first quarter of 2021 decreased 21 percent from the same period last year to $437.1 million, primarily due to lower production volumes on the Boeing 777, 787 and Airbus A350 programs, partially offset by increased revenue from the Boeing 737 and recently acquired Bombardier programs. Operating margin for the first quarter of 2021 increased to (13.7) percent, compared to (15.7) percent during the same period of 2020.  This increase was partially due to increased profit on defense programs and Boeing 737 MAX production volumes resulting in decreased excess capacity costs.  First quarter 2021 increased profit was also due to lower restructuring expenses and abnormal COVID-19 costs.  The increased segment margin was partially offset by increased forward losses recognized on the Boeing 787 and Airbus A350 programs.  In the first quarter of 2021, the Fuselage Systems Segment includes restructuring expenses of $1.8 million, excess capacity costs of $42.6 million and abnormal COVID-19 costs of $0.7 million compared to restructuring expenses of $30.1 million, excess capacity costs of $51.2 million and abnormal COVID-19 costs of $15.3 million for the same period in 2020.  In the first quarter of 2021, the segment recorded pretax $1.9 million of favorable cumulative catch-up adjustments and $55.1 million of net forward losses. In the first quarter of 2020, the segment recorded pretax $4.0 million of unfavorable cumulative catch-up adjustments and $13.2 million of net forward losses.

Propulsion Systems

Propulsion Systems segment revenue in the first quarter of 2021 increased 1 percent from the same period last year to $226.5 million, primarily due to increased revenue from the 737 MAX program and aftermarket sales, partially offset by decreased revenue from the Boeing 777 and 787 programs. Operating margin for the first quarter of 2021 increased to 7.4 percent, compared to (2.4) percent during the same period of 2020, primarily due to lower restructuring expenses, excess capacity costs and abnormal COVID-19 costs.  Increased segment operating margin was offset by margin deterioration on the Boeing 737 MAX and 787 programs.  In the first quarter of 2021, the segment recorded $(0.2) million of restructuring costs, decreased excess capacity costs of $7.2 million and $0.1 million of abnormal COVID-19 costs compared to $8.8 million of restructuring expenses, excess capacity costs of $15.8 million, and abnormal COVID-19 costs of $6.2 million in the first quarter of 2020.  The segment recorded pretax $5.6 million of unfavorable cumulative catch-up adjustments and $4.7 million of net forward losses in the first quarter of 2021. In comparison, during the same period of the prior year, the segment recorded pretax $1.5 million of unfavorable cumulative catch-up adjustments, and $3.1 million of net forward losses.

Wing Systems

Wing Systems segment revenue in the first quarter of 2021 decreased 23 percent from the same period last year to $223.6 million, primarily due to lower production volumes on the Boeing 787, Airbus A320 and A350 programs, partially offset by revenue from the recently acquired A220 wing program. Operating margin for the first quarter of 2021 decreased to (8.5) percent, compared to 4.7 percent during the same period of 2020, primarily due to increased net forward losses recognized on the Boeing 787 and Airbus A350 programs as well as lower margin recognized due to increased excess capacity costs on the A320 and A220 wing. In the first quarter of 2021, the segment includes $0.5 million of restructuring costs, excess capacity costs of $17.8 million and $1.3 million of abnormal COVID-19 costs compared to the same period the prior year, which included restructuring expenses of $3.7 million, excess capacity costs of $6.4 million pretax and abnormal COVID-19 costs of $3.9 million.  In the first quarter of 2021, the segment recorded pretax $2.1 million of unfavorable cumulative catch-up adjustments and $12.6 million of net forward losses. In the first quarter of 2020, the segment recorded pretax $2.7 million of unfavorable cumulative catch-up adjustments and $3.4 million of net forward losses.


Table 4.  Segment Reporting (unaudited)


1st Quarter


($ in millions)


2021


2020


Change


Segment Revenues

   Fuselage Systems


$437.1


$551.5


(20.7%)

   Propulsion Systems


226.5


225.2


0.6%

   Wing Systems


223.6


291.4


(23.3%)

   All Other


13.6


9.2


**


Total Segment Revenues


$900.8


$1,077.3


(16.4%)


Segment (Loss) Earnings from Operations

   Fuselage Systems


($59.8)


($86.4)


**

   Propulsion Systems


16.7


(5.3)


**

   Wing Systems


(18.9)


13.6


**

   All Other


1.2


1.8


**


Total Segment Operating (Loss) Earnings 


($60.8)


($76.3)


**


Unallocated Expense

SG&A


($57.6)


($77.4)


25.6%

Research & Development


(8.2)


(12.3)


33.3%

Cost of Sales


0.7


(1.5)


**


Total (Loss) Earnings from Operations


($125.9)


($167.5)


**


Segment Operating (Loss) Earnings as % of Revenues

   Fuselage Systems


(13.7%)


(15.7%)


 ** 

   Propulsion Systems


7.4%


(2.4%)


 ** 

   Wing Systems


(8.5%)


4.7%


 ** 

   All Other


8.8%


19.6%


 ** 


Total Segment Operating (Loss) Earnings as % of Revenues


(6.7%)


(7.1%)


 ** 


Total Operating (Loss) Earnings as % of Revenues


(14.0%)


(15.5%)


 ** 


**     Represents an amount equal to or in excess of 100% or not meaningful.

On the web: http:/ /www.spiritaero.com


Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” that may involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “goal,” “forecast,” “intend,” “may,” “might,” “model,” “objective,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements are based on circumstances as of the date on which the statements are made and they reflect management’s current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements.

Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following:

  • the impact of the COVID-19 pandemic on our business and operations, including on the demand for our and our customers’ products and services, on trade and transport restrictions, on the global aerospace supply chain, on our ability to retain the skilled work force necessary for production and development, and generally on our ability to effectively manage the impacts of the COVID-19 pandemic on our business operations;
  • demand for our products and services and the general effect of economic or geopolitical conditions, or other events, such as pandemics, in the industries and markets in which we operate in the U.S. and globally;
  • the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft;
  • our reliance on Boeing and Airbus for a significant portion of our revenues;
  • the business condition and liquidity of our customers and their ability to satisfy their contractual obligations to the Company;
  • the certainty of our backlog, including the ability of customers to cancel or delay orders prior to shipment;
  • our ability to accurately estimate and manage performance, cost, margins, and revenue under our contracts, and the potential for additional forward losses on new and maturing programs;
  • our accounting estimates for revenue and costs for our contracts and potential changes to those estimates;
  • our ability to continue to grow and diversify our business, execute our growth strategy, and secure replacement programs, including our ability to enter into profitable supply arrangements with additional customers;
  • the outcome of product warranty or defective product claims and the impact settlement of such claims may have on our accounting assumptions;
  • our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components;
  • our ability and our suppliers’ ability to meet stringent delivery (including quality and timeliness) standards and accommodate changes in the build rates of aircraft;
  • our ability to maintain continuing, uninterrupted production at our manufacturing facilities and our suppliers’ facilities;
  • competitive conditions in the markets in which we operate, including in-sourcing by commercial aerospace original equipment manufacturers;
  • our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing, Airbus and other customers;
  • our ability to effectively integrate the acquisition of select assets of Bombardier along with other acquisitions that we pursue, and generate synergies and other cost savings therefrom, while avoiding unexpected costs, charges, expenses, and adverse changes to business relationships and business disruptions;
  • the possibility that our cash flows may not be adequate for our additional capital needs;
  • any reduction in our credit ratings;
  • our ability to access the capital markets to fund our liquidity needs, and the costs and terms of any additional financing;
  • our ability to avoid or recover from cyber or other security attacks and other operations disruptions;
  • legislative or regulatory actions, both domestic and foreign, impacting our operations, including the effect of changes in tax laws and rates and our ability to accurately calculate and estimate the effect of such changes;
  • our ability to recruit and retain a critical mass of highly skilled employees;
  • our relationships with the unions representing many of our employees, including our ability to avoid labor disputes and work stoppages with respect to our union employees;
  • spending by the U.S. and other governments on defense;
  • pension plan assumptions and future contributions;
  • the effectiveness of our internal control over financial reporting;
  • the outcome or impact of ongoing or future litigation, arbitration, claims, and regulatory actions or investigations, including our exposure to potential product liability and warranty claims;
  • adequacy of our insurance coverage;
  • our ability to continue selling certain receivables through our supplier financing programs;
  • and the risks of doing business internationally, including fluctuations in foreign currency exchange rates, impositions of tariffs or embargoes, trade restrictions, compliance with foreign laws, and domestic and foreign government policies.

These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You should review carefully the section captioned “Risk Factors” in the Company’s Annual Report on Form 10-K for a more complete discussion of these and other factors that may affect our business.


Spirit Shipset Deliveries


(one shipset equals one aircraft)

1st Quarter

2021

2020

B737

29

18

B747

1

2

B767

10

6

B777

5

9

B787

15

40

Total Boeing

60

75

A220

12

15

A320 Family

130

188

A330

5

8

A350

12

26

Total Airbus

159

237

Business/Regional Jet (1)

50

12

Total

269

324


(1)Beginning in the fourth quarter of 2020, includes Business/Regional Jet deliveries related to the Bombardier acquisition

 


Spirit AeroSystems Holdings, Inc.


Condensed Consolidated Statements of Operations


(unaudited)



For the Three Months Ended


April 1, 2021


April 2, 2020


($ in millions, except per share data)

Revenue

$900.8

$1,077.3


Operating costs and expenses:

Cost of sales 

958.8

1,112.5

Selling, general and administrative

57.6

77.4

Restructuring costs

2.1

42.6

Research and development

8.2

12.3


Total operating costs and expenses

1,026.7

1,244.8


Operating loss

(125.9)

(167.5)

Interest expense and financing fee amortization

(59.8)

(32.2)

Other income (expense), net

12.8

(49.0)


Loss before income taxes and equity in net loss of affiliate

(172.9)

(248.7)

Income tax benefit 

1.7

87.2


Loss before equity in net loss of affiliate

(171.2)

(161.5)

Equity in net loss of affiliate

(0.4)

(1.5)


Net loss

($171.6)

($163.0)

Loss per share

Basic

($1.65)

($1.57)

Shares

104.1

103.7

Diluted

($1.65)

($1.57)

Shares

104.1

103.7

Dividends declared per common share

$0.01

$0.01

 


Spirit AeroSystems Holdings, Inc.


Condensed Consolidated Balance Sheets


(unaudited)


April 1, 2021


December 31, 2020


($ in millions)


Assets

Cash and cash equivalents 

$1,359.3

$1,873.3

Restricted cash

0.3

0.3

Accounts receivable, net 

525.8

484.4

Contract assets, short-term

361.9

368.4

Inventory, net 

1,395.8

1,422.3

Other current assets 

344.5

336.3

    Total current assets 

3,987.6

4,485.0

Property, plant and equipment, net

2,457.0

2,503.8

Intangible assets, net

207.0

215.2

Goodwill

583.9

565.3

Right of use assets

70.0

70.6

Contract assets, long-term

5.9

4.4

Pension assets

466.8

455.9

Deferred income taxes

0.3

0.1

Other assets

89.3

83.6

    Total assets 

$7,867.8

$8,383.9


Liabilities

Accounts payable

$540.8

$558.9

Accrued expenses

383.3

365.6

Profit sharing

14.9

57.0

Current portion of long-term debt 

40.2

340.7

Operating lease liabilities, short-term

5.5

5.5

Advance payments, short-term 

53.1

18.9

Contract liabilities, short-term

119.3

97.6

Forward loss provision, short-term

244.5

184.6

Deferred revenue and other deferred credits, short-term 

15.0

22.2

Other current liabilities 

71.4

58.4

    Total current liabilities 

1,488.0

1,709.4

Long-term debt 

3,525.2

3,532.9

Operating lease liabilities, long-term

66.6

66.6

Advance payments, long-term 

289.9

327.4

Pension/OPEB obligation 

431.8

440.2

Contract liabilities, long-term

348.5

372.0

Forward loss provision, long-term

509.1

561.4

Deferred revenue and other deferred credits, long-term

38.0

38.9

Deferred grant income liability – non-current

27.9

28.1

Deferred income taxes

10.9

13.0

Other non-current liabilities 

438.9

437.0


Stockholders’ Equity

Common stock, Class A par value $0.01, 200,000,000 shares authorized, 105,438,110 and 105,542,162 shares issued and outstanding, respectively

1.1

1.1

Additional paid-in capital 

1,144.4

1,139.8

Accumulated other comprehensive loss

(150.0)

(154.1)

Retained earnings 

2,153.7

2,326.4

Treasury stock, at cost (41,523,470 shares each period, respectively)

(2,456.7)

(2,456.7)

    Total stockholders’ equity 

692.5

856.5

Noncontrolling interest

0.5

0.5

    Total equity

693.0

857.0

    Total liabilities and equity 

$7,867.8

$8,383.9

 


Spirit AeroSystems Holdings, Inc.


Condensed Consolidated Statements of Cash Flows


(unaudited)



For the Three Months Ended


April 1, 2021


April 2, 2020


($ in millions)


Operating activities

Net loss

($171.6)

($163.0)

Adjustments to reconcile net loss to net cash used in operating activities

     Depreciation and amortization expense

80.3

67.3

     Amortization of deferred financing fees

2.3

1.9

     Accretion of customer supply agreement

0.6

1.1

     Employee stock compensation expense

6.6

9.8

     Gain from derivative instruments

(0.1)

     Loss (gain) from foreign currency transactions

7.2

(6.5)

     Loss on disposition of assets

0.3

0.2

     Deferred taxes 

(0.9)

(61.5)

     Long term income tax payable

(1.9)

     Pension and other post-retirement benefits, net

(15.2)

59.9

     Grant liability amortization

(0.4)

(2.4)

     Equity in net loss of affiliates 

0.4

     Forward loss provision

(3.5)

(9.0)

Changes in assets and liabilities

     Accounts receivable, net

(38.3)

36.1

     Contract assets

5.6

144.5

     Inventory, net

23.1

(59.4)

     Accounts payable and accrued liabilities

(6.4)

(278.6)

     Profit sharing/deferred compensation

(42.6)

(66.7)

     Advance payments

(0.8)

(19.8)

     Income taxes receivable/payable

3.6

(32.8)

     Contract liabilities

(1.7)

39.1

     Other 

(16.8)

8.5


        Net cash used in operating activities

($170.2)

($331.3)


Investing activities

     Purchase of property, plant and equipment

(27.6)

(31.0)

     Equity in assets of affiliate

1.5

     Acquisition, net of cash acquired

(118.1)

     Other 

1.2

0.3


        Net cash used in investing activities

($26.4)

($147.3)


Financing activities

     Customer financing

(2.5)

10.0

     Principal payments of debt

(9.8)

(7.3)

     Payments on term loan

(1.0)

(5.7)

     Payments on floating rate notes

(300.0)

     Taxes paid related to net share settlement awards

(3.3)

(13.1)

     Proceeds from issuance of ESPP

1.4

1.3

     Debt issuance and financing costs

(4.8)

     Dividends paid

(1.1)

(12.4)

     Other

(0.1)


        Net cash used in financing activities

($316.4)

($32.0)

Effect of exchange rate changes on cash and cash equivalents

(1.0)

(6.2)


        Net decrease in cash, cash equivalents and restricted cash for the period

($514.0)

($516.8)

Cash, cash equivalents, and restricted cash, beginning of the period

1,893.1

2,367.2

Cash, cash equivalents, and restricted cash, end of the period

$1,379.1

$1,850.4



Reconciliation of Cash and Cash Equivalents and Restricted Cash:


April 1, 2021


April 2, 2020

Cash and cash equivalents, beginning of the period

$1,873.3

$2,350.5

Restricted cash, short-term, beginning of the period

0.3

0.3

Restricted cash, long-term, beginning of the period

19.5

16.4

Cash, cash equivalents, and restricted cash, beginning of the period

$1,893.1

$2,367.2

Cash and cash equivalents, end of the period

$1,359.3

$1,833.6

Restricted cash, short-term, end of the period

$0.3

$0.3

Restricted cash, long-term, end of the period

19.5

16.5

Cash, cash equivalents, and restricted cash, end of the period

$1,379.1

$1,850.4

Appendix

In addition to reporting our financial information using U.S. Generally Accepted Accounting Principles (GAAP), management believes that certain non-GAAP measures (which are indicated by * in this report) provide investors with important perspectives into the company’s ongoing business performance. The non-GAAP measures we use in this report are (i) adjusted diluted earnings per share and (ii) free cash flow, which are described further below. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define and calculate the measures differently than we do, limiting the usefulness of the measures for comparison with other companies.

Adjusted Diluted (Loss) Earnings Per Share. To provide additional transparency, we have disclosed non-GAAP adjusted diluted (loss) earnings per share (Adjusted EPS). This metric excludes various items that are not considered to be directly related to our operating performance. Management uses Adjusted EPS as a measure of business performance and we believe this information is useful in providing period-to-period comparisons of our results. The most comparable GAAP measure is diluted earnings per share.

Free Cash Flow. Free Cash Flow is defined as GAAP cash from operating activities (generally referred to herein as “cash used in operations”), less capital expenditures for property, plant and equipment. Management believes Free Cash Flow provides investors with an important perspective on the cash available for stockholders, debt repayments including capital leases, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. The most comparable GAAP measure is cash provided by operating activities. Management uses Free Cash Flow as a measure to assess both business performance and overall liquidity.

The tables below provide reconciliations between the GAAP and non-GAAP measures.


Adjusted EPS

1st Quarter

2021

2020

GAAP Diluted Loss Per Share

($1.65)

($1.57)

Costs Related to Acquisitions

0.01



a

0.08



b

Restructuring Costs

0.01



c

0.27



d

Voluntary Retirement Program

0.43



e

Deferred Tax Asset Valuation Allowance

0.41



f

Adjusted Diluted Loss Per Share

($1.22)

($0.79)

Diluted Shares (in millions)

104.1

103.7




Represents the three months ended Q1 2021 transaction costs (included in SG&A)




Represents the three months ended Q1 2020 transaction costs (included in SG&A)




Represents the three months ended Q1 2021 restructuring expenses for cost-alignment and headcount
    reductions (included in Restructuring costs)



d
  Represents the three months ended Q1 2020 restructuring expenses for cost-alignment and headcount
    reductions (included in Restructuring costs)




Represents the three months ended Q1 2020 retirement incentive expenses resulting from the VRP offered
    during the first quarter of 2020 (included in Other expense)



f
  Represents the three months ended Q1 2021 deferred tax asset valuation allowance (included in Income tax
     provision)


Free Cash Flow


($ in millions)

1st Quarter

Guidance

2021

2020

2021

Cash used in Operations

($170)

($331)

($50) – ($150)

Capital Expenditures

(28)

(31)

(150) – (150)


Free Cash Flow

($198)

($362)

($200 – $300)

 

* Non-GAAP financial measure, see Appendix for reconciliation

 

Cision View original content:http://www.prnewswire.com/news-releases/spirit-aerosystems-reports-first-quarter-2021-results-301284316.html

SOURCE Spirit AeroSystems

JLL Reports Strong First-Quarter 2021 Results

Diluted earnings per share of $1.97, up from $0.10 last year; adjusted diluted earnings per share1 of $2.10, up from $0.49

PR Newswire

CHICAGO, May 5, 2021 /PRNewswire/ — Jones Lang LaSalle Incorporated (NYSE: JLL) today reported operating performance for the first quarter of 2021.

  • Consolidated revenue was $4.0 billion and fee revenue1 was $1.4 billion, decreases of 4% and 7%, respectively
    • Transaction-based service lines reflected improving economic conditions, highlighted by outstanding rebound in Asia Pacific
    • Property & Facility Management growth led by continued strength of Americas Corporate Solutions
  • Overall margin expansion included
    • Valuation increases to JLL Technologies’ strategic proptech investments
    • Year-over-year changes in loan loss credit reserves and the fair value of LaSalle’s co-investment portfolio
    • Cost mitigation benefits partially offsetting pandemic’s impact to revenue
  • Credit Facility maturity extended to 2026; sustainability commitments incorporated into Facility pricing

“Our strong first-quarter results demonstrated JLL’s commitment to delivering value to stakeholders across our global, scaled platform and reflected our investments in technology growth initiatives while prudently managing expenses,” said Christian Ulbrich, JLL CEO. “While the pandemic continues to cause global disruption, we are encouraged by promising economic signs that indicate 2021 can be a year of strong recovery. More than ever, ‘One JLL,’ which brings together all our global service capabilities, puts us at a competitive advantage as we advise our clients on transitioning to a post-pandemic environment.”


Summary Financial Results


   ($ in millions, except per share data, “LC” = local currency)


Three months Ended March 31,


2021

2020

% Change in USD

% Change in LC

Revenue


$


4,037.1

$

4,096.0

(1)

%

(4)

%

Revenue before reimbursements


2,129.6

2,233.0

(5)

(8)

Fee revenue1


1,442.7

1,505.2

(4)

(7)

Net income attributable to common shareholders


$


103.0

$

5.3

n.m.

n.m.

Adjusted net income attributable to common shareholders1


109.7

25.8

n.m.

n.m.

Diluted earnings per share


$


1.97

$

0.10

n.m.

n.m.

Adjusted diluted earnings per share1


2.10

0.49

n.m.

n.m.

Adjusted EBITDA1


$


190.1

$

95.6

99

%

96

%

Adjusted EBITDA, Real Estate Services


169.2

120.1

41

39

Adjusted EBITDA, LaSalle


20.9

(24.4)

n.m.

n.m.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release.

n.m.: not meaningful, represented by a percentage change of greater than 100%, favorably or unfavorably.

 

Consolidated First-Quarter 2021 Performance Highlights:


Consolidated

   ($ in millions, “LC” = local currency)


Three Months Ended March 31,


% Change
in USD


% Change
in LC


2021

2020

Leasing


$


449.5

$

492.4

(9)

%

(10)

%

Capital Markets


320.4

342.3

(6)

(9)

Property & Facility Management


2,414.0

2,365.8

2

(1)

Project & Development Services


551.8

604.4

(9)

(12)

Advisory, Consulting and Other


210.2

186.2

13

8

Real Estate Services (“RES”) revenue


$


3,945.9

$

3,991.1

(1)

%

(4)

%

LaSalle


91.2

104.9

(13)

(16)


Total revenue


$


4,037.1

$

4,096.0

(1)

%

(4)

%

Reimbursements


(1,907.5)

(1,863.0)

2


Revenue before reimbursements


$


2,129.6

$

2,233.0

(5)

%

(8)

%

Gross contract costs1


(677.2)

(729.4)

(7)

(11)

Net non-cash MSR and mortgage banking derivative activity


(9.7)

1.6

n.m.

n.m.


Total fee revenue1


$


1,442.7

$

1,505.2

(4)

%

(7)

%


Leasing



429.5


475.2


(10)


(11)


Capital Markets



305.3


334.1


(9)


(11)


Property & Facility Management



304.7


279.9


9


5


Project & Development Services



170.1


188.3


(10)


(13)


Advisory, Consulting and Other



147.8


129.1


14


9


RES fee revenue



1,357.4


1,406.6


(3)


(6)


LaSalle



85.3


98.6


(13)


(17)


Operating income


$


80.7

$

64.6

25

%

23

%


Equity earnings (losses)


$


48.5

$

(28.3)

n.m.

n.m.


Adjusted EBITDA1


$


190.1

$

95.6

99

%

96

%

n.m. – not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Consolidated Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

The continued impact of the COVID-19 pandemic (the “pandemic”) contributed to lower consolidated RES revenue and fee revenue, compared with the prior-year quarter, as strong growth in Asia Pacific was more than offset by declines in Americas and EMEA. Notably, the consolidated RES revenue decreases in transaction-based service lines were less than the trailing three quarters, with encouraging economic indicators present in many geographies. Corporate Solutions continued to deliver stable fee revenue performance as strength in facilities management offset a decrease in Project & Development Services.

Net income attributable to common shareholders was $103.0 million, compared with $5.3 million last year, and Adjusted EBITDA was $190.1 million, compared with $95.6 million in 2020. Diluted earnings per share were $1.97, up from $0.10 in 2020; adjusted diluted earnings per share were $2.10, compared with $0.49 last year. Notable drivers of year-over-year growth include the following;

  • A $12.0 million gain recognized on the sale of a business as part of a broader investment made in Roofstock, a marketplace for investing in the dynamic single-family rental sector. This strategic investment enables JLL to offer access to a sector that is increasingly in demand by investor clients. This gain on sale is excluded from adjusted measures.
  • $34.7 million from valuation increases to JLL Technologies’ investments, reflecting progress in the strategy to invest in early-stage proptech companies. Refer to the Americas segment highlights for additional detail.
  • LaSalle’s co-investment portfolio, which contributed $13.0 million of equity earnings in 2021 compared with equity losses of $40.3 million in 2020.
  • An $8.1 million non-cash reduction to loan loss credit reserves recognized in Americas results, compared with a $30.6 million increase in reserves during the prior-year quarter.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 13.2% in USD (13.4% in local currency), compared with 6.4% in 2020. The net margin expansion was primarily due to the year-over-year non-cash changes in loan loss credit reserves and LaSalle equity earnings discussed above. Remaining margin expansion was driven by JLL Technologies’ investments as well as strong contributions from Asia Pacific, partially offset by a decline in EMEA. Refer to the segment performance highlights for additional detail.

Cash Flows and Balance Sheet:

Cash used in operating activities was $461.8 million for the first quarter of 2021, compared with $546.1 million used in the prior year. The decrease in cash used was primarily due to less incentive compensation paid in 2021, compared with 2020, partially offset by lower collections of trade receivables, reflecting higher revenue in 2019 compared with 2020.

Total net debt was $670.3 million as of March 31, 2021, representing an increase of $478.2 million from December 31, 2020, and a decrease of $843.2 million from March 31, 2020. The increase from year end reflected typical seasonality, driven by annual incentive compensation payments made in the first quarter. The decline from March 31, 2020, was driven by substantial cash collections in 2020 as well as lower incentive compensation payments this year, compared with the prior-year quarter.

Americas First-Quarter 2021 Performance Highlights:


Americas
Real Estate Services

   ($ in millions, “LC” = local currency)


Three Months Ended March 31,


% Change
in USD


% Change
in LC


2021

2020


Revenue


$


2,443.9

$

2,523.1

(3)

%

(3)

%

Reimbursements


(1,385.7)

(1,393.5)

(1)

(1)


Revenue before reimbursements


$


1,058.2

$

1,129.6

(6)

%

(6)

%

Gross contract costs1


(215.8)

(212.8)

1

2

Net non-cash MSR and mortgage banking derivative activity


(9.7)

1.6

n.m.

n.m.


Fee revenue1


$


832.7

$

918.4

(9)

%

(9)

%


Leasing



351.4


405.6


(13)


(14)


Capital Markets



206.6


246.6


(16)


(16)


Property & Facility Management



146.5


128.7


14


14


Project & Development Services



81.3


93.4


(13)


(13)


Advisory, Consulting and Other



46.9


44.1


6


6


Equity earnings


$


34.5

$

12.7

n.m.

n.m.


Segment income


$


145.0

$

94.6

53

%

53

%


Adjusted EBITDA1


$


169.0

$

121.3

39

%

39

%

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

The pandemic continued to negatively impact the Americas transaction-based service lines, although the decline in U.S. Leasing was notably less significant than recent quarters. Continued growth in industrial partially offset a decline in office leasing activity, however, U.S. office leasing again outperformed market gross absorption, which was down 45% according to JLL Research. Lower investment sales and debt placement activity drove the decline in Capital Markets revenue while the multifamily business continued to deliver stable revenue performance. Strong revenue and fee revenue growth in Property & Facility Management was attributable to new client wins and expansions of existing Corporate Solutions client relationships.

Equity earnings were entirely driven by valuation increases to JLL Technologies’ investments, as discussed in the Consolidated Performance Highlights, a reflection of subsequent financing rounds at increased per-share values for certain investments. In the prior year, equity earnings were largely attributable to gains by consolidated variable interest entities in which the company held no equity interest, and therefore, these gains had no net impact to Adjusted EBITDA.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 20.3% in USD and local currency, compared with 13.2% in 2020. The equity earnings noted above and year-over-year change in loan loss credit reserves substantially drove the margin expansion. The residual nominal margin improvement reflected savings from cost mitigation efforts during the trailing twelve months which offset the impact of lower revenue.

EMEA First-Quarter 2021 Performance Highlights:


EMEA
Real Estate Services

   ($ in millions, “LC” = local currency)


Three Months Ended March 31,


% Change
in USD


% Change
in LC


2021

2020


Revenue


$


716.2

$

755.9

(5)

%

(12)

%

Reimbursements


(153.4)

(182.8)

(16)

(23)


Revenue before reimbursements


$


562.8

$

573.1

(2)

%

(9)

%

Gross contract costs1


(251.3)

(262.6)

(4)

(11)


Fee revenue1


$


311.5

$

310.5

%

(7)

%


Leasing



50.3


47.0


7


(1)


Capital Markets



70.3


68.8


2


(5)


Property & Facility Management



77.0


77.9


(1)


(8)


Project & Development Services



59.2


66.1


(10)


(16)


Advisory, Consulting and Other



54.7


50.7


8




Equity earnings


$



$

n.m.

n.m.


Segment loss


$


(35.8)

$

(20.5)

75

69


Adjusted EBITDA1


$


(24.8)

$

(10.6)

n.m.

n.m.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the EMEA Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

EMEA’s revenue and fee revenue in 2021 continued to be influenced by the pandemic, particularly on a local currency basis, compared with the prior-year quarter which had not yet been meaningfully impacted. Transaction-based revenues were largely stable as significant growth in certain geographies, highlighted by Switzerland, was offset by geographies that experienced more restrictive lock-down measures, such as Germany and the UK. Lower activity in the fit-out business and significant prior-year project activity in MENA that did not recur this quarter primarily drove the decline in Project & Development Services. A decrease in fee revenue from the UK mobile engineering business impacted Property & Facility Management.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was negative 8.0% in USD (negative 8.4% in local currency), compared with negative 3.4% last year. The decline in revenue as well as a contract loss in the UK mobile engineering business contributed to the lower margin performance, more than offsetting savings resulting from cost mitigation efforts during the trailing twelve months.

Asia Pacific First-Quarter 2021 Performance Highlights:


Asia Pacific
Real Estate Services

   ($ in millions, “LC” = local currency)


Three Months Ended March 31,


% Change
in USD


% Change
in LC


2021

2020


Revenue


$


785.8

$

712.1

10

%

3

%

Reimbursements


(366.9)

(284.9)

29

19


Revenue before reimbursements


$


418.9

$

427.2

(2)

%

(8)

%

Gross contract costs1


(205.7)

(249.5)

(18)

(21)


Fee revenue1


$


213.2

$

177.7

20

%

12

%


Leasing



27.8


22.6


23


16


Capital Markets



28.4


18.7


52


39


Property & Facility Management



81.2


73.3


11


4


Project & Development Services



29.6


28.8


3


(4)


Advisory, Consulting and Other



46.2


34.3


35


24


Equity earnings (losses)


$


1.0

$

(0.7)

n.m.

n.m.


Segment income


$


17.8

$

2.4

n.m.

n.m.


Adjusted EBITDA1


$


25.0

$

9.4

n.m.

n.m.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Asia Pacific Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Asia Pacific’s double-digit fee revenue increase reflected an outstanding rebound in transaction-based revenue along with continued stability in Corporate Solutions. An increase in large-deal transactions, particularly in Singapore and Australia, drove revenue expansion in Capital Markets. Growth in Leasing was led by a pick-up in office volumes, especially in Greater China. Significant growth in Valuations Advisory, notably in Greater China and Australia, led Advisory, Consulting and Other.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 11.7% in USD (11.3% in local currency), compared with 5.3% in 2020. The significant margin expansion was attributable to growth in transaction-based revenue and savings resulting from cost mitigation efforts during the trailing twelve months.

LaSalle First-Quarter 2021 Performance Highlights:


LaSalle

   ($ in millions, “LC” = local currency)
 


Three Months Ended March 31,


% Change
in USD


% Change
in LC


2021

2020


Revenue


$


91.2

$

104.9

(13)

%

(16)

%

Reimbursements(a)


(1.5)

(1.8)

(17)

(24)


Revenue before reimbursements


$


89.7

$

103.1

(13)

%

(16)

%

Gross contract costs(a)


(4.4)

(4.5)

(2)

(3)


Fee revenue1


$


85.3

$

98.6

(13)

%

(17)

%


Advisory fees(a)



79.3


82.0


(3)


(8)


Transaction fees & other(a)



6.0


10.9


(45)


(47)


Incentive fees






5.7


(100)


(100)


Equity earnings (losses)


$


13.0

$

(40.3)

n.m.

n.m.


Segment income (loss)


$


19.4

$

(26.1)

n.m.

n.m.


Adjusted EBITDA1


$


20.9

$

(24.4)

n.m.

n.m.

(a) Gross contract costs are primarily within Advisory fees and Reimbursements are primarily within Other.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the LaSalle Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Lower LaSalle advisory fees were largely attributable to pandemic-driven valuation declines in assets under management over the trailing twelve months. Transaction and Incentive fees reflected decreased acquisition/transaction activity in 2021.

Equity earnings in the current quarter were substantially driven by increases to the estimated fair value of underlying real estate investments within LaSalle’s co-investment portfolio. In the prior year, equity losses were largely driven by the pandemic’s impact on real estate prices which drove lower estimated fair values within the portfolio.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 24.5% in USD (24.7% in local currency), compared with negative 24.8% last year. Margin improvement was attributable to the year-over-year change in equity earnings, partially offset by lower revenue.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.

Connect with us

https://www.linkedin.com/company/jll/

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https://twitter.com/jll  


Live Webcast


Conference Call

Management will offer a live webcast for shareholders, analysts and investment professionals on Wednesday, May 5, 2021, at 9:00 a.m. Eastern. Following the live broadcast, an audio replay will be available for download or stream.


The link to the live webcast and audio replay can be accessed at the Investor Relations website: ir.jll.com.

Refer to ir.jll.com for a registration link to receive unique credentials to access the presentation of earnings via phone.


Supplemental Information


Contact

Supplemental information regarding the first quarter 2021 earnings call has been posted to the Investor Relations section of JLL’s website: ir.jll.com.

If you have any questions, please contact Chris Stent, Executive Managing Director of Investor Relations and Corporate Finance:

Phone:

+1 312 252 8943

E-mail:


[email protected]


Cautionary Note Regarding Forward-Looking Statements

Statements in this news release regarding, among other things, future financial results and performance, achievements, plans, objectives and shares repurchases may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to, the material adverse effect that the pandemic is having on JLL’s business, which may cause the company’s actual results, performance, achievements, plans, and objectives to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to the company’s business in general, please refer to those factors discussed under “Business,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures about Market Risk,” and elsewhere in the company’s Annual Report on Form 10-K for the year ended December 31, 2020, and other reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, management expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in expectations or results, or any change in events.


JONES LANG LASALLE INCORPORATED


Consolidated Statements of Operations (Unaudited)


Three Months Ended March 31,

(in millions, except share and per share data)


2021

2020

Revenue before reimbursements


$


2,129.6

$

2,233.0

Reimbursements


1,907.5

1,863.0

Total Revenue


$


4,037.1

$

4,096.0

Operating expenses:

Compensation and benefits


$


1,334.4

$

1,324.5

Operating, administrative and other


644.3

774.8

Reimbursed expenses


1,907.5

1,863.0

Depreciation and amortization


53.0

55.0

Restructuring and acquisition charges3


17.2

14.1

Total operating expenses


3,956.4

4,031.4

Operating income


80.7

64.6

Interest expense, net of interest income


10.4

14.6

Equity earnings (losses)


48.5

(28.3)

Other income


11.8

0.9

Income before income taxes and noncontrolling interest


130.6

22.6

Income tax provision


28.2

5.0

Net income


102.4

17.6

Net (loss) income attributable to noncontrolling interest


(0.6)

12.3

Net income attributable to common shareholders


$


103.0

$

5.3

Basic earnings per common share


$


2.01

$

0.10

Basic weighted average shares outstanding (in 000’s)


51,173

51,612

Diluted earnings per common share


$


1.97

$

0.10

Diluted weighted average shares outstanding (in 000’s)


52,175

52,458

Please reference accompanying financial statement notes.

 


JONES LANG LASALLE INCORPORATED


Selected Segment Financial Data (Unaudited)


Three Months Ended March 31,

(in millions)


2021

2020


AMERICAS – REAL ESTATE SERVICES

Compensation, operating and administrative expenses


$


914.6

$

1,010.3

Depreciation and amortization


33.1

37.4

Total segment operating expenses, excluding reimbursed


947.7

1,047.7

Gross contract costs1


(215.8)

(212.8)

Total fee-based segment operating expenses


$


731.9

$

834.9

Segment operating income


$


110.5

$

81.9

Equity earnings


34.5

12.7

Total segment income


145.0

94.6


Add:

Depreciation and amortization


33.1

37.4

Other income


12.0

Net (income) loss attributable to noncontrolling interest


0.6

(12.3)


Adjustments:

Net non-cash MSR and mortgage banking derivative activity


(9.7)

1.6

Gain on disposal


(12.0)

Adjusted EBITDA1


$


169.0

$

121.3


EMEA – REAL ESTATE SERVICES

Compensation, operating and administrative expenses


$


587.7

$

584.4

Depreciation and amortization


10.9

9.2

Total segment operating expenses, excluding reimbursed


598.6

593.6

Gross contract costs1


(251.3)

(262.6)

Total fee-based segment operating expenses


$


347.3

$

331.0

Segment operating loss


$


(35.8)

$

(20.5)

Equity earnings



Total segment loss


(35.8)

(20.5)


Add:

Depreciation and amortization


10.9

9.2

Other income


0.1

0.8

Net income attributable to noncontrolling interest



(0.1)

Adjusted EBITDA1


$


(24.8)

$

(10.6)

 


JONES LANG LASALLE INCORPORATED


Selected Segment Financial Data (Unaudited) Continued


Three Months Ended March 31,

(in millions)


2021

2020


ASIA PACIFIC – REAL ESTATE SERVICES

Compensation, operating and administrative expenses


$


394.8

$

417.5

Depreciation and amortization


7.3

6.6

Total segment operating expenses, excluding reimbursed


402.1

424.1

Gross contract costs1


(205.7)

(249.5)

Total fee-based segment operating expenses


$


196.4

$

174.6

Segment operating income


$


16.8

$

3.1

Equity earnings (losses)


1.0

(0.7)

Total segment income


17.8

2.4


Add:

Depreciation and amortization


7.3

6.6

Other (expense) income


(0.1)

0.4

Adjusted EBITDA1


$


25.0

$

9.4


LASALLE

Compensation, operating and administrative expenses


$


81.6

$

87.1

Depreciation and amortization


1.7

1.8

Total segment operating expenses, excluding reimbursed


83.3

88.9

Gross contract costs1


(4.4)

(4.5)

Total fee-based segment operating expenses


$


78.9

$

84.4

Segment operating income


$


6.4

$

14.2

Equity earnings (losses)


13.0

(40.3)

Total segment income (loss)


19.4

(26.1)


Add:

Depreciation and amortization


1.7

1.8

Other expense


(0.2)

(0.1)

Adjusted EBITDA1


$


20.9

$

(24.4)

 


JONES LANG LASALLE INCORPORATED


Summarized Consolidated Statements of Cash Flows (Unaudited)


Three Months Ended March 31,

(in millions)


2021

2020

Cash used in operating activities


$


(461.8)

$

(546.1)

Cash used in investing activities


(97.8)

(90.5)

Cash provided by financing activities


376.7

883.3

Effect of currency exchange rate changes on cash, cash equivalents and restricted cash


(12.4)

(21.1)

Net change in cash, cash equivalents and restricted cash


$


(195.3)

$

225.6

Cash, cash equivalents and restricted cash, beginning of year


839.8

652.1

Cash, cash equivalents and restricted cash, end of period


$


644.5

$

877.7

Please reference accompanying financial statement notes.

 


JONES LANG LASALLE INCORPORATED


Consolidated Balance Sheets


March 31,

December 31,


March 31,

December 31,

(in millions, except share and per share data)


2021

2020


2021

2020



ASSETS


(Unaudited)



LIABILITIES AND EQUITY


(Unaudited)

Current assets:

Current liabilities:

Cash and cash equivalents


$


456.6

$

574.3

Accounts payable and accrued liabilities


$


1,108.7

$

1,229.8

Trade receivables, net of allowance


1,477.4

1,636.1

Reimbursable payables


1,016.6

1,154.5

Notes and other receivables


399.9

469.9

Accrued compensation & benefits


1,031.4

1,433.2

Reimbursable receivables


1,430.1

1,461.3

Short-term borrowings


90.6

62.0

Warehouse receivables


832.1

1,529.2

Short-term contract liability and deferred income


181.0

192.9

Short-term contract assets, net of allowance


264.7

265.8

Short-term acquisition-related obligations


72.4

91.7

Prepaid and other


412.9

517.1

Warehouse facilities


833.5

1,498.4

Total current assets


5,273.7

6,453.7

Short-term operating lease liability


159.1

165.7

Property and equipment, net of accumulated depreciation


682.0

663.9

Other


198.5

299.6

Operating lease right-of-use asset


706.5

707.4

Total current liabilities


4,691.8

6,127.8

Goodwill


4,201.7

4,224.7

Noncurrent liabilities:

Identified intangibles, net of accumulated amortization


687.0

679.8

Credit facility, net of debt issuance costs (a)


342.3

(8.7)

Investments in real estate ventures


545.1

430.8

Long-term debt, net of debt issuance costs


684.0

702.0

Long-term receivables


249.7

231.1

Long-term deferred tax liabilities, net


114.6

120.0

Deferred tax assets, net


293.9

296.5

Deferred compensation


461.8

450.0

Deferred compensation plans


480.2

446.3

Long-term acquisition-related obligations


22.7

26.2

Other


186.6

182.3

Long-term operating lease liability


692.4

683.9

Total assets


$


13,306.4

$

14,316.5

Other


582.1

597.5

Total liabilities


$


7,591.7

$

8,698.7

Redeemable noncontrolling interest


$


7.8

$

7.8

Company shareholders’ equity:

Common stock


0.5

0.5

Additional paid-in capital


2,015.5

2,023.3

Retained earnings


4,078.9

3,975.9

Treasury stock


(85.7)

(96.1)

Shares held in trust


(5.4)

(5.6)

Accumulated other comprehensive loss


(383.6)

(377.2)

Total company shareholders’ equity


5,620.2

5,520.8

Noncontrolling interest


86.7

89.2

Total equity


5,706.9

5,610.0

Total liabilities and equity


$


13,306.4

$

14,316.5

Please reference accompanying financial statement notes.


(a) As there was no outstanding balance on the Credit facility as of December 31, 2020, the negative liability reflected unamortized debt issuance costs.

JONES LANG LASALLE INCORPORATED

Financial Statement Notes

1.   Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following:

(i) Fee revenue and Fee-based operating expenses,

(ii) Adjusted EBITDA attributable to common shareholders (“Adjusted EBITDA”) and Adjusted EBITDA margin,

(iii) Adjusted net income attributable to common shareholders and Adjusted diluted earnings per share, and

(iv) Percentage changes against prior periods, presented on a local currency basis.

However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with U.S. generally accepted accounting principles (“GAAP”). Any measure that eliminates components of a company’s capital structure, cost of operations or investments, or other results has limitations as a performance measure. In light of these limitations, management also considers GAAP financial measures and does not rely solely on non-GAAP financial measures. Because the company’s non-GAAP financial measures are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures used by other companies.

Adjustments to GAAP Financial Measures Used to Calculate non-GAAP Financial Measures


Gross Contract Costs
represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses with the equal amount of corresponding fees in Revenue before reimbursements. Consistent with the treatment of directly reimbursed expenses, excluding gross contract costs from both Fee revenue and Fee-based operating expenses more accurately reflects how the company manages its expense base and operating margins and also enables a more consistent performance assessment across a portfolio of contracts with varying payment terms and structures, including those with direct versus indirect reimbursement of such costs.


Net Non-Cash Mortgage Servicing Rights (“MSR”) and Mortgage Banking Derivative Activity
consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets service line of the Americas segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how the company manages and evaluates performance because the excluded activity is non-cash in nature.


Restructuring and Acquisition Charges
 primarily consist of: (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore not a line item in the segments’ reconciliation to Adjusted EBITDA.


Amortization of Acquisition-Related Intangibles
, primarily composed of the estimated fair value ascribed at closing of an acquisition to assets such as acquired management contracts, customer backlog and relationships, and trade name, is more notable following the company’s increase in acquisition activity in recent years. Such non-cash activity is excluded as the change in period-over-period activity is generally the result of longer-term strategic decisions and therefore not necessarily indicative of core operating results.


Gain on Disposition
reflects the gain recognized on the sale of a business within Americas. Given the low frequency of business disposals by the company historically, the gain directly associated with such activity is excluded as it is not considered indicative of core operating performance.

Reconciliation of Non-GAAP Financial Measures

Below are reconciliations of (i) Revenue to Fee revenue and (ii) Operating expenses to Fee-based operating expenses:


Three months Ended March 31,

($ in millions)


2021

2020

Revenue


$


4,037.1

$

4,096.0

Reimbursements


(1,907.5)

(1,863.0)

Revenue before reimbursements


2,129.6

2,233.0

Gross contract costs


(677.2)

(729.4)

Net non-cash MSR and mortgage banking derivative activity


(9.7)

1.6

Fee revenue


$


1,442.7

$

1,505.2

Operating expenses


$


3,956.4

$

4,031.4

Reimbursed expenses


(1,907.5)

(1,863.0)

Gross contract costs


(677.2)

(729.4)

Fee-based operating expenses


$


1,371.7

$

1,439.0

Below is (i) a reconciliation of Net income attributable to common shareholders to EBITDA and Adjusted EBITDA, (ii) the Net income margin attributable to common shareholders (against Revenue before reimbursements), and (iii) the Adjusted EBITDA margin (presented on a local currency and on a fee-revenue basis). Following this is the (i) reconciliation to adjusted net income and (ii) components of adjusted diluted earnings per share.


Three months Ended March 31,

($ in millions)


2021

2020

Net income attributable to common shareholders


$


103.0

$

5.3


Add:

Interest expense, net of interest income


10.4

14.6

Provision for income taxes


28.2

5.0

Depreciation and amortization


53.0

55.0

EBITDA


$


194.6

$

79.9


Adjustments:

Restructuring and acquisition charges3


17.2

14.1

Gain on disposition


(12.0)

Net non-cash MSR and mortgage banking derivative activity


(9.7)

1.6

Adjusted EBITDA


$


190.1

$

95.6

Net income margin attributable to common shareholders


4.8


%

0.2

%

Adjusted EBITDA margin


13.4


%

6.4

%

 


Three months Ended March 31,

(In millions, except share and per share data)


2021

2020

Net income attributable to common shareholders


$


103.0

$

5.3

Diluted shares (in thousands)


52,175

52,458

Diluted earnings per share


$


1.97

$

0.10

Net income attributable to common shareholders


$


103.0

$

5.3


Adjustments:

Restructuring and acquisition charges3


17.2

14.1

Net non-cash MSR and mortgage banking derivative activity


(9.7)

1.6

Amortization of acquisition-related intangibles


13.0

14.5

Gain on disposition


(12.0)

Tax impact of adjusted items(a)


(1.8)

(9.7)

Adjusted net income attributable to common shareholders


$


109.7

$

25.8

Diluted shares (in thousands)


52,175

52,458

Adjusted diluted earnings per share


$


2.10

$

0.49

(a)

For the first quarter of 2021, the tax impact of adjusted items was calculated using the consolidated effective tax rate as this was deemed to approximate the tax impact of adjusted items calculated using applicable statutory tax rates. The tax impact of adjusted items for the first quarter of 2020 was calculated using the applicable statutory rates by tax jurisdiction.

Operating Results – Local Currency

In discussing operating results, the company reports Adjusted EBITDA margins and refers to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. Management believes this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations.

The following table reflects the reconciliation to local currency amounts for consolidated (i) revenue, (ii) fee revenue, (iii) operating income and (iv) Adjusted EBITDA.


Three Months Ended March 31,

($ in millions)


2021


% Change


Revenue:

At current period exchange rates


$


4,037.1


(1)


%

Impact of change in exchange rates


(110.2)


n/a

At comparative period exchange rates


$


3,926.9


(4)


%


Fee revenue:

At current period exchange rates


$


1,442.7


(4)


%

Impact of change in exchange rates


(40.5)


n/a

At comparative period exchange rates


$


1,402.2


(7)


%


Operating income:

At current period exchange rates


$


80.7


25


%

Impact of change in exchange rates


(1.3)


n/a

At comparative period exchange rates


$


79.4


23


%


Adjusted EBITDA:

At current period exchange rates


$


190.1


99


%

Impact of change in exchange rates


(2.6)


n/a

At comparative period exchange rates


$


187.5


96


%

2.   Each geographic segment offers the company’s full range of RES businesses consisting primarily of (i) tenant representation and agency leasing, (ii) capital markets, (iii) property management and facilities management, (iv) project and development services, and (v) advisory, consulting and valuations services. LaSalle provides investment management services to institutional investors and high-net-worth individuals.

3.   Restructuring and acquisition charges are excluded from the company’s measure of segment operating results, although they are included within consolidated Operating income calculated in accordance with GAAP. For purposes of segment operating results, the allocation of restructuring and acquisition charges to the segments is not a component of management’s assessment of segment performance.

The table below shows restructuring and acquisition charges, including the portion related to the acquisition and integration of HFF (retention and severance expense, early lease termination costs, and other integration expenses).


Three Months Ended March 31,

(in millions)


2021

2020

Severance and other employment-related charges


$


1.8

$

1.3

Restructuring, pre-acquisition and post-acquisition charges


15.5

21.0

Fair value adjustments that resulted in a net decrease to earn-out liabilities from prior-period acquisition activity


(0.1)

(8.2)

Total restructuring & acquisition charges


$


17.2

$

14.1


Portion of total restructuring & acquisition charges related to the acquisition and integration of HFF



$



11.5


$


21.3

4.   The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the company’s Form 10-Q for the three months ended March 31, 2021, to be filed with the SEC in the near future.

5.   As of March 31, 2021, LaSalle had $70.9 billion of real estate assets under management (AUM), composed of $36.3 billion invested in separate accounts, $30.0 billion invested in fund management vehicles and $4.6 billion invested in public securities. The geographic distribution of separate accounts and fund management investments was $22.2 billion in North America, $13.5 billion in the UK, $11.8 billion in Asia Pacific and $13.1 billion in continental Europe. The remaining $5.7 billion relates to Global Partner Solutions which is a global business line.

AUM increased 3% in USD (0% in local currency) from $68.9 billion as of December 31, 2021. The AUM increase resulted from (i) $1.9 billion of foreign currency increases, (ii) $1.1 billion of acquisitions, and (iii) $0.9 billion of net valuation increases, partially offset by $1.9 billion dispositions and withdrawals.

Assets under management data for separate accounts and fund management amounts are reported on a one-quarter lag. In addition, LaSalle raised $1.0 billion in private equity capital for the quarter ended March 31, 2021.

LaSalle’s results for the three months ended March 31, 2021, included approximately $4 million of deferred compensation expense associated with the run-off of a previous compensation program.

6.   EMEA: Europe, Middle East and Africa. MENA: Middle East and North Africa. Greater China: China, Hong Kong, Macau and Taiwan.

7.   n.m.: “not meaningful”, represented by a percentage change of greater than 100%, favorably or unfavorably.

Appendix: Revenue, Revenue before Reimbursements and Fee Revenue by Service Line   


Three months Ended March 31, 2021

Three months Ended March 31, 2020

(in millions)


Americas


EMEA


Asia Pacific


Total

Americas

EMEA

Asia Pacific

Total


Revenue

Leasing


$


363.7


54.4


31.4


$


449.5

$

418.9

48.1

25.4

$

492.4

Capital Markets


216.9


74.2


29.3


320.4

247.4

73.2

21.7

342.3

Property & Facility Management


1,494.8


344.1


575.1


2,414.0

1,458.8

375.0

532.0

2,365.8

Project & Development Services


269.8


183.7


98.3


551.8

306.4

203.2

94.8

604.4

Advisory, Consulting and Other


98.7


59.8


51.7


210.2

91.6

56.4

38.2

186.2


RES revenue


$


2,443.9


716.2


785.8


$


3,945.9

$

2,523.1

755.9

712.1

$

3,991.1

LaSalle


91.2

104.9


Consolidated revenue


$


4,037.1

$

4,096.0


Revenue before reimbursements

Leasing


$


359.9


54.4


31.4


$


445.7

$

414.9

48.0

25.4

$

488.3

Capital Markets


217.2


74.1


28.7


320.0

246.0

73.1

20.5

339.6

Property & Facility Management


294.5


213.8


239.8


748.1

267.9

210.6

266.1

744.6

Project & Development Services


106.1


161.5


68.3


335.9

121.3

186.0

77.3

384.6

Advisory, Consulting and Other


80.5


59.0


50.7


190.2

79.5

55.5

37.9

172.9


RES revenue before reimbursements


$


1,058.2


562.8


418.9


$


2,039.9

$

1,129.6

573.1

427.2

$

2,130.0

LaSalle


89.7

103.1


Consolidated revenue before reimbursements


$


2,129.6

$

2,233.0


Fee revenue

Leasing


$


351.4


50.3


27.8


$


429.5

$

405.6

47.0

22.6

$

475.2

Capital Markets


206.6


70.3


28.4


305.3

246.6

68.8

18.7

334.1

Property & Facility Management


146.5


77.0


81.2


304.7

128.7

77.9

73.3

279.9

Project & Development Services


81.3


59.2


29.6


170.1

93.4

66.1

28.8

188.3

Advisory, Consulting and Other


46.9


54.7


46.2


147.8

44.1

50.7

34.3

129.1


RES fee revenue


$


832.7


311.5


213.2


$


1,357.4

$

918.4

310.5

177.7

$

1,406.6

LaSalle


85.3

98.6


Consolidated fee revenue


$


1,442.7

$

1,505.2

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/jll-reports-strong-first-quarter-2021-results-301283823.html

SOURCE JLL-IR

Applied Materials Introduces Materials Engineering Solutions for DRAM Scaling

  • New Draco™ hard mask material co-optimized with Sym3

    ®

    Y etcher to accelerate DRAM capacitor scaling
  • DRAM makers adopting Black Diamond

    ®

    , the low-k dielectric material pioneered by Applied Materials to overcome interconnect scaling challenges in logic
  • High-k metal gate transistors now being introduced in advanced DRAM designs to boost performance and reduce power while shrinking the periphery logic to improve area and cost

SANTA CLARA, Calif., May 05, 2021 (GLOBE NEWSWIRE) — Applied Materials, Inc. today announced materials engineering solutions that give its memory customers three new ways to further scale DRAM and accelerate improvements in chip performance, power, area, cost and time to market (PPACt).

The digital transformation of the global economy is generating record demand for DRAM. The Internet of Things is creating hundreds of billions of new computing devices at the edge which are driving an exponential increase in data transmitted to the cloud for processing. The industry urgently needs breakthroughs that can allow DRAM to scale to reduce area and cost while also operating at higher speeds and using less power.

Applied Materials is working with DRAM customers to commercialize three materials engineering solutions that create new ways to shrink as well as improve performance and power. The solutions target three areas of DRAM chips: storage capacitors, interconnect wiring and logic transistors. They are now ramping into high volume and are expected to significantly increase Applied’s DRAM revenue over the next several years.


Introducing Draco™ Hard Mask for Capacitor Scaling

Since over 55 percent of a DRAM chip’s die area is occupied by the memory arrays, increasing the density of these cells is the biggest lever for reducing cost per bit. Data is stored as charges in cylindrical, vertically arranged capacitors that need as much surface area as possible to hold adequate numbers of electrons. As DRAM makers narrow the capacitors, they also elongate them to maximize surface area. A new technology challenge to DRAM scaling has emerged: the etching of the deep capacitor holes threatens to exceed the limits of the “hard mask” material that acts as a stencil to determine where each cylinder is placed. If the hard mask is etched through, the pattern is ruined. Taller hard masks are not viable because as the combined depth of the hard masks and capacitor holes exceeds certain limits, etch byproducts remain and cause bending, twisting and uneven depths.

The solution is Draco™, a new hard mask material that has been co-optimized to work with Applied’s Sym3® Y etch system in a process monitored by Applied’s PROVision® eBeam metrology and inspection system that can take nearly half a million measurements per hour. The Draco hard mask increases etch selectivity by more than 30 percent which enables a shorter mask. Draco hard mask and Sym3 Y co-optimization includes advanced RF pulsing which synchronizes etching with byproduct removal to enable patterning holes that are perfectly cylindrical, straight and uniform. The PROVision eBeam system gives customers massive, immediate actionable data on hard mask critical dimension uniformity which is the key to capacitor uniformity. Applied’s solution provides customers with a 50-percent improvement in local critical dimension uniformity and reduces bridge defects by 100X, thus increasing yields.

“The best way to quickly solve materials engineering challenges with our customers is to co-optimize adjacent steps and use massive measurements and AI to optimize process variables,” said Dr. Raman Achutharaman, group vice president, Semiconductor Products Group at Applied Materials.


Bringing Black Diamond



®



Low-k Dielectric to the DRAM Market

A second key lever of DRAM scaling is reducing the die area needed by the interconnect wiring that routes signals to and from the memory arrays. Each of the metal lines is surrounded by an insulating dielectric material to prevent interference between data signals. For the past 25 years, DRAM makers have used one of two silicon oxides – silane and tetraethoxysilane (TEOS) – as the dielectric material. Continual thinning of the dielectric layers has reduced DRAM die sizes but created a new technology challenge: the dielectrics are now too thin to prevent capacitive coupling in the metal lines whereby signals interfere with one another causing higher power consumption, slower performance, increased heat and reliability risks.

The solution is Black Diamond®, a low-k dielectric material first used in advanced logic. With DRAM designs now experiencing similar scaling challenges, Applied is adapting Black Diamond to the DRAM market and making it available on the highly productive Producer® GT platform. Black Diamond for DRAM enables smaller, more compact interconnect wires that can move signals through the chips at multi-gigahertz speeds without interference and at lower power consumption.


High-k Metal Gate Transistors Bring PPAC Improvements to DRAM

A third key lever of DRAM scaling is improving the performance, power, area and cost of the transistors used in the periphery logic of the chip to help drive the input-output (I/O) operations needed in high-performance DRAM like those based on the new DDR5 specification.

Until today, DRAM used transistors based on polysilicon-oxide which were phased out in foundry-logic by the 28-nanometer node because extreme thinning of the gate dielectric allowed electrons to leak, thereby wasting power and limiting performance. Logic makers adopted high-k metal gate (HKMG) transistors, replacing the polysilicon with a metal gate and the dielectric with hafnium oxide, a material that improves gate capacitance, leakage and performance. Now memory makers are designing HKMG transistors into advanced DRAM designs to improve performance, power, area and cost. In DRAM as in logic, HKMG will increasingly replace polysilicon transistors over time.

This technology inflection in DRAM creates growth opportunities for Applied Materials. The more complex and delicate HKMG materials stack is challenging to manufacture, and in-vacuum processing of adjacent steps using Applied’s Endura® Avenir™ RFPVD system has become the industry’s preferred solution. HKMG transistors also benefit from Applied’s epitaxial deposition technologies such as Centura® RP Epi along with film treatments including RadOx™ RTP, Radiance® RTP and DPN which are used to fine-tune the transistor characteristics for optimum performance.

“Draco hard mask and Black Diamond low-k dielectric are being adopted by leading DRAM customers, and the first HKMG DRAMs are now being introduced,” added Dr. Achutharaman. “Applied Materials projects billions of dollars in revenue growth as these DRAM inflections play out over the next several years.”

Additional information about the growth outlook for these technologies is being provided at Applied’s 2021 Memory Master Class being held later today. For more information, please visit the investor page of our website at https://ir.appliedmaterials.com.

Forward-Looking Statements

This release contains forward-looking statements, including those regarding anticipated growth and trends in our revenues, businesses and markets, industry outlooks and demand drivers, technology transitions, new products and technologies, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements are described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible the technology shaping the future. Learn more at www.appliedmaterials.com.

Contact:

Ricky Gradwohl (editorial/media) 408.235.4676
Michael Sullivan (financial community) 408.986.7977

Photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7f8f3e74-0805-4334-937e-ac39f4dcceb7

The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress.



Amerigo Reports Strong Net Income & Operating Cash Flow in Q1-2021

(Amounts in U.S. dollars except indicated otherwise)

VANCOUVER, British Columbia, May 05, 2021 (GLOBE NEWSWIRE) — Amerigo Resources Ltd. (TSX: ARG; ARREF:OTC) (“Amerigo” or the “Company”) is pleased to announce financial results for the three months ended March 31, 2021 (“Q1-2021”).

Amerigo posted net income of $10.9 million, earnings per share (“EPS”) of $0.06, EBITDA1 of $23.3 million and quarterly operating cash flow before changes in working capital of $20.0 million.

“We are pleased to report again strong operational and financial results at Amerigo Resources. At an average quarterly copper price of $4.08 per pound, the Company generated $20.0 million in operating cash flow, improving its ending cash position to $38.6 million while continuing to reduce debt. As of the date of this news release, the Company’s cash position now exceeds total debt outstanding”, said Aurora Davidson, Amerigo’s President and CEO.

The information and data contained in this news release should be read in conjunction with Amerigo’s interim consolidated financial statements and Management’s Discussion and Analysis (“MD&A) for the quarter ended March 31, 2021, available at the Company’s website at www.amerigoresources.com and at www.sedar.com.           

             
    31-Mar-21 31-Dec-20 Q1-2021 Q1-2020  
Revenue ($ millions)       48.9 15.6  
Net income (loss) ($ millions)       10.9 (4.0)  
EPS (LPS) ($)       0.06 (0.02)  
EBITDA1 ($ millions)       23.3 (4.2)  
Operating cash flow before changes in working capital ($ millions)       20.0 (4.1)  
Cash and cash equivalents ($ millions)   38.6 14.1      
Bank debt ($ millions)   41.5 46.5      
             

Highlights and Significant Items

  • Q1-2021 net income was $10.9 million (Q1-2020: net loss of $4.0 million), due to higher production, higher metal prices and $5.0 million in positive fair value adjustments to Q4-2020 copper receivables.
  • Q1-2021 EPS was $0.06 (Q1-2020: loss per share (“LPS”) of $0.02).
  • The Company generated quarterly operating cash flow before changes in non-cash working capital of $20.0 million (Q1-2020: negative operating cash flow $4.1 million). Q1-2021 net operating cash flow was $28.1 million (Q1-2020: negative net operating cash flow of $1.4 million).
  • Q1-2021 production from Amerigo’s Minera Valle Central (“MVC”) tailings processing facility in Chile was 15.5 million pounds of copper (Q1-2020: 12.1 million pounds) including 8.5 million pounds from Cauquenes (Q1-2020: 5.7 million pounds) and 7.0 million pounds from fresh tailings (Q1-2020: 5.1 million pounds). In Q1-2020, 1.2 million pounds of copper were produced from slag processing.
  • Molybdenum production during Q1-2021 was 0.4 million pounds (Q1-2020: 0.2 million pounds).
  • Q1-2021 cash cost2 (a non-GAAP measure equal to the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits, decreased 3% to $1.88 per pound (“/lb”) (Q1-2020: $1.94/lb).
  • In Q1-2021, MVC’s average quarterly copper price was $4.08/lb, 74% higher than the Q1-2020 average quarterly copper price of $2.35/lb. MVC’s average quarterly molybdenum price was $10.88/lb, 18% higher than the Q1-2020 average quarterly price of $9.20/lb.
  • Revenue during Q1-2021 was $48.9 million (Q1-2020: $15.6 million), including copper tolling revenue of $45.4 million (Q1-2020: $13.3 million) and molybdenum revenue of $3.5 million (Q1-2020: $1.7 million). In Q1-2020 slag processing revenue was $0.7 million.
  • Copper tolling revenue is calculated from MVC’s gross value of copper produced during Q1-2021 of $58.1 million (Q1-2020: $27.2 million) and fair value adjustments to settlement receivables of $8.5 million (Q1-2020: (negative $5.3 million)), less notional items including DET royalties of $16.0 million (Q1-2020: $5.2 million), smelting and refining of $4.7 million (Q1-2020: $3.0 million) and transportation of $0.5 million (Q1-2020: $0.3 million). The Q1-2021 settlement adjustments included $5.0 million in settlement adjustments in respect of Q4-2020 production, which are final adjustments.
  • MVC’s financial performance is very sensitive to changes in copper prices. MVC’s Q1-2021 provisional copper price was $4.08/lb, and final prices for January, February, and March sales will be the average London Metal Exchange (“LME”) prices for April, May, and June respectively. A 10% increase or decrease from the $4.08/lb provisional price used at March 31, 2021 would result in a $6.2 million change in revenue in Q2-2021 in respect of Q1-2021 production.
  • At March 31, 2021, the Company’s cash balance was $38.6 million (December 31, 2020: $14.1 million) and the Company had working capital of $11.5 million (December 31, 2020: working capital deficiency of $6.1 million).
  • In Q1-2021, the Company received $3.9 million in proceeds from the sale of investments.
  • In Q1-2021, the Company made scheduled debt payments of $6.5 million (Q1-2020: $4.7 million) and paid $0.6 million for plant and equipment (Q1-2020: $0.5 million). MVC’s debt balance with banks at March 31, 2021 was $41.5 million.
Summary Consolidated Statements of Financial Position  
  March 31, December 31,  
  2021 2020  
  $ thousands $ thousands  
Cash and cash equivalents 38,643 14,085  
Property plant and equipment 181,090 184,805  
Other assets 29,751 38,685  
       
Total assets 249,484 237,575  
       
Total liabilities 128,664 126,893  
Shareholders’ equity 120,820 110,682  
Total liabilities and shareholders’ equity 249,484 237,575  
       
Summary Consolidated Statements of Income and Comprehensive Income  
  Q1-2021 Q1-2020  
  $ thousands $ thousands  
Revenue 48,907 15,638  
Tolling and production costs (30,029) (24,569)  
Other (expenses) gains (2,837) 4,036  
Finance expense (856) (2,833)  
Income tax (expense) recovery (4,260) 3,699  
Net income (loss) 10,925 (4,029
)
 
Other comprehensive income (699) (623)  
Comprehensive income (loss) 10,226 (4,652)  
       
Earnings (loss) per share – basic & diluted 0.06 (0.02)  
       
Summary Consolidated Statements of Cash Flows  
  Q1-2021 Q1-2020  
  $ thousands $ thousands  
Cash flows from (used in) operating activities 20,040 (4,132)  
Changes in non-cash working capital 8,096 2,754  
Net cash from (used in) operating activities 28,136 (1,378)  
Net cash received from (used in) investing activities 3,289 (393)  
Net cash used in financing activities (6,892) (4,779)  
Net increase (decrease) in cash 24,533 (6,550)  
Effect of foreign exchange rates on cash 25 (42)  
Cash and cash equivalents, beginning of period 14,085 7,164  
Cash and cash equivalents, end of period 38,643 572  
       

Investor Conference Call on May 6, 2021

Amerigo’s quarterly investor conference call will take place on Thursday, May 6, 2021 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

To join the call, please dial 1-888-664-6392 (Toll-Free North America) and enter confirmation number 84376564 to participate in the Amerigo Resources conference call.

The analyst and investment community are welcome to ask questions to management. Media can attend on a listen-only basis.

About Amerigo and MVC

Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile (“Codelco”), the world’s largest copper producer.

Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.

The information and data contained in this news release should be read in conjunction with Amerigo’s Condensed Interim Consolidated Financial Statements (unaudited) and MD&A for the three months ended March 31, 2021 and the Audited Consolidated Financial Statements and MD&A for the year ended December 31, 2020, available at the Company’s website at www.amerigoresources.com and at www.sedar.com.  

For further information, please contact:        

Aurora Davidson Graham Farrell        
President and CEO Investor Relations
(604) 697 6207 (416) 842-9003
[email protected]  [email protected] 

Alternative Performance Measures

Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this news release because they provide key performance measures used by management to monitor performance, assess corporate performance, and to plan and assess the overall effectiveness and efficiency of Amerigo’s operations. These performance measures do not have any standardized meaning within IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

Cautionary Statement on Forward-Looking Information

This news release contains certain forward-looking information and statements as defined in applicable securities laws (collectively referred to as “forward-looking statements”). These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These forward-looking statements include but are not limited to, statements concerning:

  • forecasted production, reductions in operating costs and an increase in recoveries;
  • our strategies and objectives;
  • our estimates of the availability and quantity of tailings, and the quality of our mine plan estimates;
  • prices and price volatility for copper and other commodities and of materials we use in our operations;
  • the demand for and supply of copper and other commodities and materials that we produce, sell and use;
  • sensitivity of our financial results and share price to changes in commodity prices;
  • our projection of being in net cash positive territory by the end of Q2-2021;
  • our financial resources and our expected ability to meet our obligations for the next 12 months;
  • interest and other expenses;
  • domestic and foreign laws affecting our operations;
  • our tax position and the tax rates applicable to us;
  • our ability to comply with our loan covenants;
  • the production capacity of our operations, our planned production levels and future production;
  • potential impact of production and transportation disruptions;
  • hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage, claims by third parties and suspension of operations
  • estimates of asset retirement obligations and other costs related to environmental protection;
  • our future capital and production costs, including the costs and potential impact of complying with existing and proposed environmental laws and regulations in the operation and closure of our operations;
  • repudiation, nullification, modification or renegotiation of contracts;
  • our financial and operating objectives;
  • our environmental, health and safety initiatives;
  • the outcome of legal proceedings and other disputes in which we may be involved;
  • the outcome of negotiations concerning metal sales, treatment charges and royalties;
  • disruptions to the Company’s information technology systems, including those related to cybersecurity;
  • our dividend policy; and
  • general business and economic conditions.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions, process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns, including COVID-19, and the inability of employees to access sufficient healthcare; government or regulatory actions or inactions; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco’s Division El Teniente’s current production and historic tailings from tailings deposits; risks with respect to the ability of the Company to draw down funds from bank facilities and lines of credit and the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Notwithstanding the efforts of the Company and MVC, there can be no guarantee that the Company’s or MVC’s staff will not contract COVID-19 or that the Company’s and MVC’s measures to protect staff from COVID-19 will be effective. Many of these risks and uncertainties apply not only to the Company and its operations, but also to Codelco and its operations. Codelco’s ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production, therefore these risks and uncertainties may also affect their operations and in turn have a material effect on the Company.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about:

  • general business and economic conditions;
  • interest rates;
  • changes in commodity and power prices;
  • acts of foreign governments and the outcome of legal proceedings;
  • the supply and demand for, deliveries of, and the level and volatility of prices of copper and other commodities and products used in our operations;
  • the ongoing supply of material for processing from Codelco’s current mining operations;
  • the ability of the Company to profitably extract and process material from the Cauquenes tailings deposit;
  • the timing of the receipt of and retention of permits and other regulatory and governmental approvals;
  • our costs of production and our production and productivity levels, as well as those of our competitors;
  • changes in credit market conditions and conditions in financial markets generally;
  • our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis;
  • the availability of qualified employees and contractors for our operations;
  • our ability to attract and retain skilled staff;
  • the satisfactory negotiation of collective agreements with unionized employees;
  • the impact of changes in foreign exchange rates and capital repatriation on our costs and results;
  • engineering and construction timetables and capital costs for our expansion projects;
  • costs of closure of various operations;
  • market competition;
  • the accuracy of our preliminary economic assessment (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based;
  • tax benefits and tax rates;
  • the outcome of our copper concentrate sales and treatment and refining charge negotiations;
  • the resolution of environmental and other proceedings or disputes;
  • the future supply of reasonably priced power;
  • rainfall in the vicinity of MVC continuing to trend towards normal levels;
  • average recoveries for fresh tailings and Cauquenes tailings;
  • our ability to obtain, comply with and renew permits and licenses in a timely manner; and
  • our ongoing relations with our employees and entities with which we do business.

Future production levels and cost estimates assume there are no adverse mining or other events which significantly affect budgeted production levels. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements.

We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. You should also carefully consider the matters discussed under Risk Factors in the Company`s Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news release and except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.

1 This is a non-GAAP financial performance measure. Refer to “Alternative Performance Measures” at the end of this press release.

2 This is a non-GAAP financial performance measure. Refer to “Alternative Performance Measures” at the end of this press release.



Progenity Provides Key Update Regarding its Preecludia™ Test for Preeclampsia

Pre-validation study demonstrates commercial laboratory systems readiness; data show strong performance consistent with verification study

SAN DIEGO, May 05, 2021 (GLOBE NEWSWIRE) — Progenity, Inc. (Nasdaq: PROG), a biotechnology company with an established track record of success in developing and commercializing molecular testing products, today announced another key update regarding its Preecludia preeclampsia rule-out test. The company reported that its systems and processes necessary for commercial launch, including information systems, laboratory equipment, SOP finalization, and laboratory personnel training, all demonstrated commercial readiness as part of a pre-validation test. Additionally, data from this new, independent, prospective, naïve cohort examined as part of the pre-validation process showed test performance in the intended use population that was consistent with the verification study results presented April 30th at the 2021 American College of Obstetricians and Gynecologists (ACOG) Annual Meeting. The company recently announced it is in the clinical validation testing phase for the Preecludia test, with a targeted commercial launch expected in the second half of 2021.

Preeclampsia is the second most common cause of maternal mortality, with more than 700,000 women presenting each year with signs and symptoms of possible preeclampsia. It is characterized as a hypertensive disorder, but it is often difficult to clinically differentiate from other hypertensive conditions in pregnancy, making diagnosis and management difficult. Ultimately, left undiagnosed and improperly managed, preeclampsia can result in impaired organ function, seizures, stroke, and death in the mother, and may require pre-term delivery of the baby. Preeclampsia can result in both poor health outcomes and significant costs.

The new data, generated with the original locked algorithm from the verification study, came from a cohort of more than 300 blinded samples equally distributed across gestational ages collected during the PRO-104 protocol, and examined as part of the pre-validation process. Analysis of these samples from the intended use population showed test performance consistent with the Preecludia verification study, indicating further de-risking of the program. The pre-validation test performance showed sensitivity greater than 87% and a negative predictive value (NPV) greater than 97% at a prevalence of 11%, and a rule out window of up to 14 days from sample collection. A similar level of performance, if observed in the larger PRO-104 validation study, would provide clinicians, especially OB/GYNs, with a new tool for their assessment of women at risk for preeclampsia. Preecludia is expected to result in a materially superior approach to the existing standard of care which offers an NPV of 83%, at best.

“We are very encouraged by the performance of the Preecludia test as evidenced in these data and prior studies. This portends well for the future performance of Preecludia in our validation study and for when we reach the commercial market,” said Harry Stylli, PhD, CEO, chairman of the board and co-founder of Progenity. “We have completed analytical testing and are initiating data analysis of the full set of patient samples from our validation study with over 1,300 patients. We plan to share the performance data from this validation study within the June/July timeframe. With these data in hand, we plan to begin a targeted launch of Preecludia in the second half of 2021 by leveraging our existing OBGYN/MFM channel.”

Progenity’s Preecludia is a preeclampsia rule-out test, not a diagnostic predictive test for preeclampsia. It has the potential to be the first-of-its-kind test in the United States to help healthcare providers evaluate patients who have signs and symptoms of possible preeclampsia. This laboratory developed test (LDT) is a novel multi-analyte protein biomarker assay designed to examine markers from multiple pathophysiological pathways of preeclampsia to assess risk. It is run from a simple blood draw and is designed to address the unmet need for tools to aid in the assessment and management of preeclampsia. The US market opportunity for Preecludia is estimated at up to $3 billion, with additional global market opportunities.

The ACOG poster presentation of the verification study results is available on the Progenity website.

For more information about Progenity’s products and pipeline visit www.progenity.com, or follow the company on LinkedIn or Twitter.

About Progenity

Progenity, Inc. is a biotechnology company with an established track record of success in developing and commercializing molecular testing products, as well as innovating in the field of precision medicine. Progenity provides in vitro molecular tests designed to improve lives by providing actionable information that helps guide patients and physicians in making medical decisions during key life stages. The company applies a multi-omics approach, combining genomics, epigenomics, proteomics, and metabolomics to its molecular testing products and to the development of a suite of investigational ingestible devices designed to provide precise diagnostic sampling and drug delivery solutions. Progenity’s vision is to transform healthcare to become more precise and personal by improving diagnoses of disease and improving patient outcomes through localized treatment with targeted therapies. For additional information about Progenity, please visit the company’s website at www.progenity.com.

Forward Looking Statements

This press release contains “forward-looking statements,” which statements are subject to substantial risks and uncertainties and are based on estimates and assumptions. All statements, other than statements of historical facts included in this press release, including statements concerning the development progress of our preeclampsia rule-out test, its future use by providers to rule out preeclampsia, the performance of the rule-out test in an upcoming validation study, the completion of our upcoming validation study, and our efforts and intent to commercialize the Preecludia test and address an unmet medical need, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual results to differ materially from the forward-looking statements expressed or implied in this press release, including our ability to develop and commercialize our testing products, the size and growth potential of the markets for our products and our ability to serve those markets, the rate and degree of market acceptance and clinical utility of our products and coverage and rates of reimbursement for our products, regulatory developments in the United States and foreign countries, our ability to obtain and maintain regulatory approval or clearance of our products on expected timelines or at all, our ability to improve and enhance our products, the development, regulatory approval, efficacy, and commercialization of competing products, the loss or retirement of key scientific or management personnel, our expectations regarding our ability to obtain and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing the intellectual property rights of others, the ongoing COVID-19 pandemic and associated impact on our business, and those risks described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 18, 2021, and other subsequent documents we file with the SEC. We claim the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:

Robert Uhl
Managing Director, Westwicke ICR
[email protected]
(619) 228-5886

Media Contact:

Angela Salerno-Robin
dna Communications
[email protected]
(212) 445-8219