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Enerplus Announces Quarterly Cash Dividend for September 2021; Increases Dividend by 15%

Canada NewsWire

CALGARY, AB, Aug. 5, 2021 /CNW/ – Enerplus Corporation (“Enerplus”) (TSX: ERF) (NYSE: ERF) today announced a 15% increase in its quarterly cash dividend, from CDN$0.033 per share to CDN$0.038 per share, payable on September 15, 2021 to all shareholders of record at the close of business on August 31, 2021. The ex-dividend date for this payment is August 30, 2021.

The CDN$0.038 per share dividend is equivalent to approximately US$0.030 per share if converted using the current Canadian/US dollar exchange rate of 0.7971. The U.S. dollar equivalent dividend will be based upon the actual Canadian/US exchange rate applied on the payment date and will be net of any Canadian withholding taxes that may be applicable. Dividends paid by Enerplus are considered an “eligible dividend” for Canadian tax purposes. For U.S.  income tax purposes, Enerplus’ dividends are considered “qualified dividends”.

For further information, including financial and operating results and our most recent corporate presentation, please visit our website at www.enerplus.com or phone 1-800-319-6462. Shareholders may, upon request, obtain a hard copy of Enerplus’ complete audited financial statements free of charge.

About Enerplus
Enerplus is an independent North American oil and gas exploration and production company focused on creating long-term value for its shareholders through a disciplined, returns-based capital allocation strategy and a commitment to safe, responsible operations.

SOURCE Enerplus Corporation

Posted on

CARS to Present at the 2021 J.P. Morgan Auto Conference

PR Newswire

CHICAGO, Aug. 5, 2021 /PRNewswire/ — Cars.com Inc. (NYSE: CARS) (“CARS” or the “Company”), a leading digital marketplace and solutions provider for the automotive industry, announced that Alex Vetter, President and Chief Executive Officer of CARS, will present at the virtual J.P. Morgan Auto Conference on Wednesday, August 11 at approximately 9:30 a.m.ET.

A live audio webcast of the presentation will be made available on the Company’s website, investor.cars.com. A replay will be available shortly after the conclusion of the presentation.

About CARS

CARS is a leading digital marketplace and solutions provider for the automotive industry that connects car shoppers with sellers. Launched in 1998 with the flagship marketplace Cars.com and headquartered in Chicago, the Company empowers shoppers with the data, resources and digital tools needed to make informed buying decisions and seamlessly connect with automotive retailers. In a rapidly changing market, CARS enables dealerships and OEMs with innovative technical solutions and data-driven intelligence to better reach and influence ready-to-buy shoppers, increase inventory turn and gain market share.

In addition to Cars.com, CARS brands include Dealer Inspire, a technology provider building solutions that future-proof dealerships with more efficient operations and connected digital experiences; FUEL, which gives dealers and OEMs the opportunity to harness the untapped power of digital video by leveraging Cars.com’s pure audience of in-market car shoppers, and DealerRater, a leading car dealer review and reputation management platform.

The full suite of CARS properties includes Cars.com™, Dealer Inspire®, FUEL™, DealerRater®,Auto.com™,PickupTrucks.com™ and NewCars.com®. For more information, visit www.Cars.com.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cars-to-present-at-the-2021-jp-morgan-auto-conference-301349892.html

SOURCE Cars.com Inc.

Posted on

Enerplus Announces Second Quarter 2021 Results; Increases Dividend by 15%

Canada NewsWire


All financial information con
tained within this news release has been prepared in accordance with U.S. GAAP, except as noted under “Non-GAAP Measures”. This news release includes forward-looking statements and information within the meaning of applicable securities laws. Readers are advised to review the “Forward-Looking Information and Statements” at the conclusion of this news release. A full copy of Enerplus’ Second Quarter 2021 Financial Statements and MD&A are available on the Company’s website at

www.enerplus.com
, under its SEDAR profile at www.sedar.com and on the EDGAR website at www.sec.gov.


CALGARY, AB
, Aug. 5, 2021 /CNW/ – Enerplus Corporation (“Enerplus” or the “Company”) (TSX: ERF) (NYSE: ERF) today reported its second quarter 2021 operating and financial results and an increase to its dividend. Cash flow from operating activities for the second quarter was $136.9 million and adjusted funds flow was $184.3 million, compared to $90.6 million and $70.0 million, respectively, in the second quarter of 2020. Cash flow from operating activities and adjusted funds flow increased compared to the same period in 2020 due to higher production and commodity prices during the second quarter of 2021.


HIGHLIGHTS


  • Successfully closed the strategic acquisition of assets in the Williston Basin from Hess Corporation on April 30, 2021

  • Achieved record production in the second quarter of 115,351 BOE per day, 26% higher than the prior quarter

  • Adjusted funds flow was $184.3 million in the second quarter, which exceeded capital spending of $129.9 million, generating free cash flow of $54.4 million
  • Annual average 2021 production guidance revised to 112,000 to 115,000 BOE per day, including 69,500 to 71,500 barrels per day of liquids, reflecting higher mid-points, with no change in 2021 capital spending guidance

  • Increasing return of capital to shareholders: quarterly dividend increased 15% to $0.038 per share; reinitiating share repurchase program

  • Capital efficiencies continuing to improve: well costs in North Dakota are tracking US$5.7 million per well, a 25% reduction compared to 2019

  • 2021 Bakken crude oil price differential guidance strengthened to US$2.35 per barrel below WTI (from US$3.25)

  • Estimated 2021 free cash flow of over $450 million based on current forward strip commodity prices

  • Net debt to adjusted funds flow ratio estimated to be at or below 1.0x by year-end 2021 based on current forward strip commodity prices

“Our second quarter results reflect the increasing scale of our business and continued strong operational momentum,” said Ian C. Dundas, President and CEO. “We delivered record production, capital efficiency gains along with an increasing free cash flow profile. The 15% increase to our quarterly dividend—our second dividend increase this year—and resumption of our share repurchase program underscores our commitment to providing increasing capital returns to shareholders. While we are prioritizing debt reduction in the near term, we will continue to evaluate returning incremental free cash flow to shareholders and are well positioned to meaningfully enhance our shareholder returns upon achieving our $400 million debt reduction target.”


SECOND QUARTER SUMMARY

Production in the second quarter of 2021 was 115,351 BOE per day, an increase of 32% compared to the same period a year ago, and 26% higher than the prior quarter.

Crude oil and natural gas liquids production in the second quarter of 2021 was 71,693 barrels per day, an increase of 49% compared to the same period a year ago, and 46% higher than the prior quarter. The increased production compared to the same period in 2020 was due to the contribution from the Company’s Williston Basin acquisitions in 2021 and lower production during the second quarter of 2020 due to reduced activity and temporarily curtailed volumes in response to the low crude oil prices.

Enerplus reported a second quarter 2021 net loss of $59.7 million, or $0.23 per share, compared to a net loss of $609.3 million, or $2.74 per share, in the same period in 2020 which included non-cash impairments. The net loss recognized in the second quarter of 2021 was primarily due to non-cash mark to market losses related to commodity derivative instruments. Adjusted net income for the second quarter of 2021 was $67.9 million, or $0.26 per share, compared to an adjusted net loss of $41.2 million, or $0.19 per share, during the same period in 2020. Adjusted net income was higher compared to the same period in 2020 due to higher
commodity prices and increased production.

Enerplus’ second quarter 2021 realized Bakken oil price differential was US$2.76 per barrel below WTI, compared to US$4.36 per barrel below WTI in the second quarter of 2020. Bakken crude oil differentials improved relative to the prior year period due to increased U.S. refinery demand and significant available pipeline capacity in the basin.

The Company’s realized Marcellus natural gas price differential was US$0.89 per Mcf below NYMEX during the second quarter of 2021 compared to US$0.49 per Mcf below NYMEX in the second quarter of 2020. The weaker second quarter 2021 differential reflected significant unplanned regional pipeline maintenance.

In the second quarter of 2021, Enerplus’ operating expenses were $8.43 per BOE, compared to $6.84 per BOE during the same period in 2020. Operating expenses in the second quarter of 2020 were impacted by price-related production curtailments and lower well servicing activity.  

Second quarter transportation costs were $3.45 per BOE and cash general and administrative (“G&A”) expenses were $1.04 per BOE.

Enerplus recorded a current tax expense of $4.2 million in the second quarter of 2021 related to U.S. federal taxes as a result of higher expected income in 2021.

Exploration and development capital spending was $129.9 million in the second quarter of 2021. The Company paid $11.0 million in dividends in the quarter.

Enerplus closed its strategic acquisition of certain assets in the Williston Basin from Hess Corporation on April 30, 2021, for total cash consideration of US$312 million, subject to customary purchase price adjustments.

At the end of the second quarter of 2021, the Company had total debt of $1,208.1 million and cash on hand of $75.3 million. Enerplus made principal repayments of US$81.6 million on its 2009 and 2012 senior notes during the quarter.


ASSET ACTIVITY


Williston Basin production averaged 72,390 BOE per day (73% crude oil) during the second quarter of 2021, an increase of 64% compared to the same period a year ago, and 53% higher than the prior quarter. During the second quarter the Company drilled four gross operated wells (100% working interest) and brought 23 gross operated wells on production (83% average working interest). Enerplus continued to drive capital efficiency improvements through faster drilling and completions cycle times and other efficiencies. Enerplus set a company record in the second quarter drilling a two-mile lateral section in 48 hours (lateral spud to total depth). Total well costs in North Dakota are now expected to average US$5.7 million per well in 2021, a reduction of 25% compared to 2019 levels and well below the 2021 target of US$6.1 million.

Marcellus production averaged 192 MMcf per day during the second quarter of 2021, a decrease of 3% compared to the same period in 2020, and 6% lower than the prior quarter.

Canadian waterflood production averaged 7,240 BOE per day (95% crude oil) during the second quarter of 2021, an increase of 14% compared to the same period in 2020, and 2% lower than the prior quarter.


FREE CASH FLOW PRIORITIES

Enerplus expects to allocate approximately 90% of its free cash flow, after dividends, to debt reduction. The Company is targeting a net debt to adjusted funds flow ratio at or below 1.0x assuming a $50 per barrel WTI oil price environment, representing a debt reduction target of approximately $400 million from second quarter 2021 levels. Enerplus estimates it will achieve its debt reduction target by mid-2022 based on current forward strip commodity prices. The remaining approximately 10% of free cash flow, after dividends, is expected to be allocated to incremental capital returns to shareholders, including potential dividend increases and share repurchases. The Company will continue to evaluate this free cash flow allocation as it makes progress on its debt reduction target with the expectation of increasing the allocation of free cash flow to shareholders once its debt target is achieved, assuming a supportive commodity price environment.

Given the Company’s significant increase in cash flow generation following its strategic acquisitions in the first half of 2021, Enerplus believes the business can support a higher dividend while continuing to prioritize debt reduction. As a result, the Board of Directors has approved a 15% increase to the Company’s quarterly dividend to $0.038 per share payable on September 15, 2021 to shareholders of record on August 31, 2021. This is Enerplus’ second dividend increase year to date and represents a 27% increase, on an annualized basis, from the Company’s dividend level at the start of the year. 

Enerplus also received approval from its Board of Directors to commence a Normal Course Issuer Bid (“NCIB”), subject to approval by the Toronto Stock Exchange (“TSX”). The proposed renewal will be for 10% of the public float (within the meaning under the TSX rules).


FIVE-YEAR OUTLOOK UPDATE

Enerplus has updated year one (2021) of its five-year outlook to reflect year to date commodity prices and the forward strip for the remainder of the year. The years 2022 to 2025 continue to be based on US$50 to US$55 per barrel WTI flat oil price assumptions. Based on this, the Company has increased the estimated cumulative free cash flow over this period to approximately $1.5 to $2.0 billion.


2021 GUIDANCE UPDATE

Enerplus revised its 2021 average production guidance to 112,000 to 115,000 BOE per day, including liquids production of 69,500 to 71,500 barrels per day due to outperformance year to date. Capital spending guidance is unchanged.

Enerplus narrowed its 2021 Bakken crude oil price differential guidance to US$2.35 per barrel below WTI, compared to US$3.25 per barrel below WTI previously. The improved differential guidance is due to strong year to date pricing and additional firm capacity on the Dakota Access Pipeline (“DAPL”) secured in connection with the pipeline’s expansion. Enerplus now has approximately 10,000 barrels per day of firm transportation on DAPL.

As a result of ongoing pipeline maintenance in the Marcellus, Enerplus widened its 2021 Marcellus natural gas price differential to US$0.65 per Mcf below NYMEX, compared to US$0.55 per Mcf below NYMEX previously.

The Company expects to incur current income tax expense of US$5 million to US$7 million in 2021.

A summary of the Company’s 2021 guidance is provided below.


2021 Guidance

Capital spending

$360 to $400 million

Average annual production

112,000 – 115,000 BOE/day (from 111,000 – 115,000 BOE/day)

Average annual crude oil and natural gas liquids production

69,500 – 71,500 bbls/day (from 68,500 – 71,500 bbls/day)

Average royalty and production tax rate

26%

Operating expense

$8.25/BOE

Transportation expense

$3.85/BOE

Cash G&A expense

$1.25/BOE

Current Income Tax expense

US$5 – $7 million


2021 Full-Year Differential/Basis Outlook (1)

U.S. Bakken crude oil differential (compared to WTI crude oil)(2)

US$(2.35)/bbl (from US$(3.25)/bbl)

Marcellus natural gas sales price differential (compared to NYMEX natural gas)

US$(0.65)/Mcf (from US$(0.55)/Mcf)

(1)

Excluding transportation costs.

(2)

Based on the continued operation of the Dakota Access Pipeline.


Risk Management

Enerplus’ commodity hedging positions are provided in the table below.



Enerplus’ Financial Commodity Hedging Contracts (As at




August 4, 2021)


 







WTI Crude Oil



(1)(2)


(US$/bbl)



NYMEX Natural Gas


(US$/Mcf)



Jul 1, 2021 –



Jan 1, 2022 –



Jan 1, 2023 –



Nov 1, 2023 –



Jul 1, 2021 –



Nov 1, 2021 –



Dec 31, 2021



Dec 31, 2022



Oct 31, 2023



Dec 31, 2023



Oct 31, 2021



Mar 31, 2022



Swaps

Volume (bbls/day)

–

–

–

–

60,000

–

Swaps

–

–

–

–

$ 2.90

–



Collars

Volume (bbls/day)

23,000

17,000

–

–

40,000

40,000

Sold Puts

$ 36.39

$ 40.00

–

–

$ 2.15

–

Purchased Puts

$ 46.39

$ 50.00

–

–

$ 2.75

$ 3.43

Sold Calls

$ 56.70

$ 57.91

–

–

$ 3.25

$ 6.00



Hedges acquired from Bruin



(3)



Swaps

Volume (bbls/day)

8,465

3,828

250

–

–

–

Swaps

$ 42.52

$ 42.35

$ 42.10

–

–

–



Collars

Volume (bbls/day)

–

–

2,000

2,000

–

–

Purchased Puts

–

–

$ 5.00

$ 5.00

–

–

Sold Calls

–

–

$ 75.00

$ 75.00

–

–

(1)

The total average deferred premium spent on outstanding hedges is US$0.84/bbl from July 1, 2021 – December 31, 2021 and US$1.22/bbl from January 1, 2022 – December 31, 2022.

(2)

Transactions with a common term have been aggregated and presented at weighted average prices and volumes.

(3)

Upon closing of the Bruin Acquisition, Bruin’s outstanding hedges were recorded at a fair value liability of $96.5 million. At June 30, 2021, the fair value of the Bruin hedges was a liability of $100.0 million. For the three and six months ended June 30, 2021 we recorded a realized loss of $2.2 million and $1.7 million, respectively, on the settlement of the Bruin hedges. In Addition, we recognized an unrealized loss of $52.8 million and $35.4 million, respectively, for the change in the fair value of the Bruin hedges over the same periods. See Note 17 to the Q2 2021 Financial Statements for further detail.


SECOND QUARTER PRODUCTION AND Operational summary tables


Average Daily Production(1)



Three months ended June 30, 2021



Six months ended June 30, 2021



Williston
Basin



Marcellus



Canadian
Water-floods



Other(2)



Total



Williston
Basin



Marcellus



Canadian
Water-floods



Other(2)



Total

Tight oil (bbl/d)

52,896

–

–

1,900


54,797

43,743

–

–

1,347


45,090

Light & medium oil (bbl/d)

–

–

2,912

86


2,998

–

–

2,970

65


3,035

Heavy oil (bbl/d)

–

–

3,983

25


4,008

–

–

4,045

17


4,063



Total crude oil (bbl/d)


52,896


–


6,895


2,012


61,803


43,743


–


7,015


1,429


52,188



Natural gas liquids (bbl/d)


9,257


–


129


504


9,890


7,634


–


76


535


8,245

Shale gas (Mcf/d)

61,418

191,602

–

1,535


254,555

51,300

197,760

–

1,337


250,396

Conventional natural gas (Mcf/d)

–

–

1,296

6,093


7,389

–

–

1,238

7,230


8,467



Total natural gas (Mcf/d)


61,418


191,602


1,296


7,628


261,945


51,300


197,760


1,238


8,566


258,863



Total production (BOE/d)


72,390


31,934


7,240


3,786


115,351


59,928


32,960


7,297


3,392


103,576

(1)

Table may not add due to rounding.

(2)

Comprises DJ Basin and non-core properties in Canada.


Summary of Wells Drilled


(1)



Three months ended







June 30, 2021



Six months ended







 June 30, 2021

Operated

Non-Operated

Operated

Non-Operated



Gross



Net



Gross



Net



Gross



Net



Gross



Net

Williston Basin

4

4.0

–

–

4

4.0

–

–

Marcellus

–

–

14

0.6

–

–

28

0.8

Canadian Waterfloods

–

–

–

–

–

–

–

–

Other(2)

–

–

–

–

–

–

2

0.3



Total


4


4.0


14


0.6


4


4.0


30


1.1

(1)

Table may not add due to rounding.

(2)

Comprises DJ Basin and non-core properties in Canada.


Summary of Wells Brought On-Stream(1)



Three months ended
June 30, 2021



Six months ended
 June 30, 2021

Operated

Non-Operated

Operated

Non-Operated

Gross

Net

Gross

Net

Gross

Net

Gross

Net

Williston Basin

23

19.1

1

0.4

26

22.1

1

0.4

Marcellus

–

–

20

1.4

–

–

36

1.8

Canadian Waterfloods

–

–

–

–

–

–

–

–

Other(2)

–

–

–

–

3

2.6

2

0.3



Total


23


19.1


21


1.8


29


24.7


39


2.5

(1)

Table may not add due to rounding.

(2)

Comprises DJ Basin and non-core properties in Canada.


Q2 2021 Conference Call Details

A conference call hosted by Ian C. Dundas, President and CEO will be held at 9:00 AM MT (11:00 AM ET) on Friday, August 6, 2021 to discuss these results. Details of the conference call are as follows:

Date:

Friday, August 6, 2021

Time:

9:00 AM MT (11:00 AM ET)

Dial-In:

587-880-2171 (Alberta)

1-888-390-0546 (Toll Free)

Conference ID:

07577276

Audiocast:   

https://produceredition.webcasts.com/starthere.jsp?ei=1470850&tp_key=75a2e3927a

T
o ensure timely participation in the conference call, callers are encouraged to dial in 15 minutes prior to the start time to register for the event. A telephone replay will be available for 30 days following the conference call and can be accessed at the following numbers:

Replay Dial-In:

1-888-390-0541 (Toll Free)

Replay Passcode:

577276 #

 



SELECTED FINANCIAL RESULTS



Three months ended
June 30, 



Six months ended
June 30, 


2021


2020


2021


2020



Financial (CDN$, thousands, except ratios)

Net Income/(Loss)

$

(59,664)

$

(609,323)

$

(44,967)

$

(606,447)

Adjusted Net Income/(Loss)(1)

67,932

(41,185)

124,183

(20,095)

Cash Flow from Operating Activities

136,902

90,560

174,141

213,299

Adjusted Funds Flow(1)

184,320

69,997

312,435

183,224

Dividends to Shareholders – Declared

11,040

6,675

18,405

13,345

Total Debt Net of Cash(1)

1,132,841

518,094

1,132,841

518,094

Capital Spending

129,903

40,084

195,434

203,709

Property and Land Acquisitions

408,764

3,416

1,037,332

5,672

Property Divestments

(17)

(63)

4,978

5,515

Net Debt to Adjusted Funds Flow Ratio(1)(2)

2.3x

1.0x

2.3x

1.0x



Financial per Weighted Average Shares Outstanding

Net Income /(Loss) – Basic

$

(0.23)

$

(2.74)

$

(0.18)

$

(2.73)

Net Income/(Loss) – Diluted

(0.23)

(2.74)

(0.18)

(2.73)

Weighted Average Number of Shares Outstanding (000’s) – Basic

256,750

222,557

250,443

222,457

Weighted Average Number of Shares Outstanding (000’s) – Diluted

256,750

222,557

250,443

222,457



Selected Financial Results per BOE



(3)(4)

Crude Oil & Natural Gas Sales(5)

$

48.60

$

19.53

$

46.38

$

26.11

Royalties and Production Taxes

(12.58)

(5.15)

(11.74)

(6.74)

Commodity Derivative Instruments

(3.53)

6.73

(3.02)

5.12

Operating Expenses

(8.43)

(6.84)

(8.16)

(7.90)

Transportation Costs

(3.45)

(4.28)

(3.68)

(4.11)

Cash General and Administrative Expenses

(1.04)

(1.14)

(1.28)

(1.26)

Cash Share-Based Compensation

(0.22)

(0.15)

(0.27)

0.09

Interest, Foreign Exchange and Other Expenses

(1.39)

(1.69)

(1.34)

(1.29)

Current Income Tax Recovery/(Expenses)

(0.40)

1.81

(0.22)

0.85

Adjusted Funds Flow(1)

$

17.56

$

8.82

$

16.67

$

10.87

 



Three months ended
June 30, 



Six months ended
June 30, 



SELECTED OPERATING RESULTS


2021


2020


2021


2020



Average Daily Production



(4)

Crude Oil (bbls/day)

61,803

43,168

52,187

46,106

Natural Gas Liquids (bbls/day)

9,890

4,929

8,245

5,137

Natural Gas (Mcf/day)

261,945

235,579

258,863

249,246

Total (BOE/day)

115,351

87,360

103,576

92,784

% Crude Oil and Natural Gas Liquids

62%

55%

58%

55%



Average Selling Price (4)(5)

Crude Oil (per bbl)

$

76.67

$

30.55

$

72.90

$

41.59

Natural Gas Liquids (per bbl)

22.72

(0.96)

28.06

6.16

Natural Gas (per Mcf)

2.45

1.63

2.96

1.87

Net Wells Drilled

5

3

5

37

(1)

These are non–GAAP measures that do not have any standardized meaning under the Company’s GAAP and, therefore, may not be directly comparable to similar measures presented by other entities. See “Non–GAAP Measures” section in the news release.

(2)

Ratio does not include trailing adjusted funds flow from the recent Williston Basin acquisitions.

(3)

Non-cash amounts have been excluded.

(4)

Based on Company interest production volumes. See “Presentation of Production Information” below.

(5)

Before transportation costs, royalties, and commodity derivative instruments.


Condensed Consolidated Balance Sheets

(CDN$ thousands) unaudited



June 30, 2021



December 31, 2020



Assets

Current Assets

Cash and cash equivalents

$

75,278

$

114,455

Accounts receivable

252,316

106,376

Derivative financial assets

—

3,550

Other current assets

7,505

7,137

335,099

231,518

Property, plant and equipment:

Crude oil and natural gas properties (full cost method)

1,680,329

575,559

Other capital assets, net

18,912

19,524

Property, plant and equipment

1,699,241

595,083

Right-of-use assets

36,951

32,853

Deferred income tax asset

600,257

607,001



Total Assets

$

2,671,548

$

1,466,455



Liabilities

Current liabilities

Accounts payable

$

379,255

$

251,822

Dividends payable

—

2,225

Current portion of long-term debt

98,688

103,836

Derivative financial liabilities

225,696

19,261

Current portion of lease liabilities

12,940

13,391

716,579

390,535

Derivative financial liabilities

64,536

—

Long-term debt

1,109,431

386,586

Asset retirement obligation

160,201

130,208

Lease liabilities

27,668

23,446

1,361,836

540,240



Total Liabilities

2,078,415

930,775



Shareholders’ Equity

Share capital – authorized unlimited common shares, no par value

Issued and outstanding: June 30, 2021 – 257 million shares

                                       December 31, 2020 – 223 million shares

3,236,117

3,096,969

Paid-in capital

36,269

50,604

Accumulated deficit

(2,995,389)

(2,932,017)

Accumulated other comprehensive income/(loss)

316,136

320,124

593,133

535,680



Total Liabilities & Shareholders’ Equity

$

2,671,548

$

1,466,455


Condensed Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss)



Three months ended



Six months ended



June 30, 



June 30, 

(CDN$ thousands, except per share amounts) unaudited


2021


2020


2021


2020



Revenues

Crude oil and natural gas sales, net of royalties

$

408,622

$

122,069

$

697,423

$

350,196

Commodity derivative instruments gain/(loss)

(197,967)

(10,895)

(267,810)

120,446

210,655

111,174

429,613

470,642



Expenses

Operating

88,459

54,353

152,981

133,373

Transportation

36,188

34,006

69,011

69,335

Production taxes

30,502

7,687

47,954

23,131

General and administrative

12,474

13,494

28,746

32,679

Depletion, depreciation and accretion

93,908

79,885

140,368

175,077

Asset impairment

—

426,810

4,300

426,810

Goodwill impairment

—

202,767

—

202,767

Interest

9,527

7,051

16,350

15,962

Foreign exchange (gain)/loss

6,864

1,493

6,986

(4,144)

Transaction costs and other expense/(income)

(718)

6,301

3,806

6,072

277,204

833,847

470,502

1,081,062



Income/(Loss) before taxes

(66,549)

(722,673)

(40,889)

(610,420)

Current income tax expense/(recovery)

4,175

(14,422)

4,175

(14,395)

Deferred income tax expense/(recovery)

(11,060)

(98,928)

(97)

10,422



Net Income/(Loss)

$

(59,664)

$

(609,323)

$

(44,967)

$

(606,447)



Other Comprehensive Income/(Loss)

Unrealized gain/(loss) on foreign currency translation

(14,345)

(57,284)

(27,212)

74,490

Foreign exchange gain/(loss) on net investment hedge with U.S.
denominated debt, net of tax

14,702

19,466

23,224

(30,596)



Total Comprehensive Income/(Loss)

$

(59,307)

$

(647,141)

$

(48,955)

$

(562,553)



Net income/(Loss) per share

Basic

$

(0.23)

$

(2.74)

$

(0.18)

$

(2.73)

Diluted

$

(0.23)

$

(2.74)

$

(0.18)

$

(2.73)


Condensed Consolidated Statements of Cash Flows



Three months ended



Six months ended



June 30, 



June 30, 

(CDN$ thousands) unaudited


2021


2020


2021


2020



Operating Activities

Net income/(loss)

$

(59,664)

$

(609,323)

$

(44,967)

$

(606,447)

Non-cash items add/(deduct):

Depletion, depreciation and accretion

93,908

79,885

140,368

175,077

Asset impairment

—

426,810

4,300

426,810

Goodwill impairment

—

202,767

—

202,767

Changes in fair value of derivative instruments

160,130

63,929

209,972

(32,499)

Deferred income tax expense/(recovery)

(11,060)

(98,928)

(97)

10,422

Foreign exchange (gain)/loss on debt and working capital

5,539

1,038

5,858

(1,377)

Share-based compensation and general and administrative

(23)

3,428

990

11,183

Other expenses/(income)

(2,353)

—

(2,353)

—

Amortization of debt issuance costs

312

—

385

—

Translation of U.S. dollar cash held in Canada

(2,469)

391

(2,021)

(2,712)

Asset retirement obligation settlements

(1,359)

(333)

(8,439)

(11,127)

Changes in non-cash operating working capital

(46,059)

20,896

(129,855)

41,202

Cash flow from/(used in) operating activities

136,902

90,560

174,141

213,299



Financing Activities

Bank term loan

—

—

501,286

—

Bank credit facility

333,616

1,364

333,616

1,364

Repayment of senior notes

(99,348)

(114,010)

(99,348)

(114,010)

Proceeds from the issuance of shares

—

—

125,746

—

Purchase of common shares under Normal Course Issuer Bid

—

—

—

(2,536)

Share-based compensation – cash settled (tax withholding)

—

—

(4,491)

(7,232)

Dividends

(13,608)

(6,676)

(20,627)

(13,337)

Cash flow from/(used in) financing activities

220,660

(119,322)

836,182

(135,751)



Investing Activities

Capital and office expenditures

(92,422)

(104,111)

(144,184)

(233,453)

Bruin acquisition

(2,537)

—

(531,134)

—

Dunn County acquisition

(374,613)

—

(374,613)

—

Property and land acquisitions

(1,619)

(3,416)

(5,026)

(5,672)

Property divestments

(17)

(63)

4,978

5,515

Cash flow from/(used in) investing activities

(471,208)

(107,590)

(1,049,979)

(233,610)

Effect of exchange rate changes on cash & cash equivalents

(92)

453

479

10,590

Change in cash and cash equivalents

(113,738)

(135,899)

(39,177)

(145,472)

Cash and cash equivalents, beginning of period

189,016

142,076

114,455

151,649



Cash and cash equivalents, end of period

$

75,278

$

6,177

$

75,278

$

6,177



Currency and Accounting Principles


All amounts in this news release are stated in Canadian dollars unless otherwise specified. All financial information in this news release has been prepared and presented in accordance with U.S. GAAP, except as noted below under “Non-GAAP Measures”.



Barrels of Oil Equivalent


This news release also contains references to “BOE” (barrels of oil equivalent), “MBOE” (one thousand barrels of oil equivalent), and “MMBOE” (one million barrels of oil equivalent). Enerplus has adopted the standard of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl) when converting natural gas to BOEs.  BOE, MBOE and MMBOE may be misleading, particularly if used in isolation.  The foregoing conversion ratios are based on an energy equivalency conversion method primarily applicable at the burner tip and do not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading.



Presentation of Production Information


Under U.S. GAAP oil and gas sales are generally presented net of royalties and U.S. industry protocol is to present production volumes net of royalties. Under Canadian disclosure requirements and industry practice, oil and gas sales and production volumes are presented on a gross basis before deduction of royalties. All production volumes and oil and gas sales presented herein are reported on a “company interest” basis, before deduction of Crown and other royalties, plus Enerplus’ royalty interest. All references to “liquids” in this news release include light and medium crude oil, heavy oil and tight oil (all together referred to as “crude oil”) and natural gas liquids on a combined basis.



FORWARD-LOOKING INFORMATION AND STATEMENTS


This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking information”). The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “guidance”, “believes” and “plans” and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following:


expected benefits of the Hess asset and Bruin acquisition; expected impact of the Hess asset and Bruin acquisitions on Enerplus’ operations and financial results, including expected free cash flow in 2021 and beyond and year-end net debt to adjusted funds flow ratio; anticipated impact of the Hess asset and Bruin acquisitions on Enerplus’ future costs and expenses; the renewal of Enerplus’ NCIB and terms thereof; expected capital spending levels in 2021 and the future and the impact thereof on our production levels and land holdings; expected production volumes and updated 2021 and future production guidance; expected operating strategy in 2021; the effect of Enerplus’ participation in the DAPL expansion on increased crude oil transportation; 2021 average production volumes, timing thereof and the anticipated production mix; the proportion of our anticipated oil and gas production that is hedged and the expected effectiveness of such hedges in protecting our adjusted funds flow in 2021 and the future; the results from our drilling program and the timing of related production and ultimate well recoveries; oil and natural gas prices and differentials, our commodity risk management program in 2021 and expected hedging gains; expectations regarding our realized oil and natural gas prices; expected operating, transportation, cash G&A and financing costs; expected reduction in well costs; future royalty rates on our production and future production taxes; net debt to adjusted funds-flow ratio, financial capacity and liquidity and capital resources to fund capital spending, dividends and working capital requirements; expectations regarding our ability to comply with debt covenants under our bank credit facility, term loan and outstanding senior notes; and expectations regarding payment of increased dividends.


The forward-looking information contained in this news release reflects several material factors, expectations and assumptions including, without limitation: that we will conduct our operations and achieve results of operations as anticipated, including considering the Hess asset and Bruin acquisition; that our development plans will achieve the expected results; that a lack of adequate infrastructure and/or low commodity price environment will not result in curtailment of production and/or reduced realized prices beyond our current expectations; current and estimated commodity prices, differentials and cost assumptions; the continued ability to operate DAPL; that our development plans will achieve the expected results; the general continuance of current or, where applicable, assumed industry conditions, including expectations regarding the duration and overall impact of COVID-19; the continuation of assumed tax, royalty and regulatory regimes; the accuracy of the estimates of our reserve and contingent resource volumes; the continued availability of adequate debt and/or equity financing and adjusted funds flow to fund our capital, operating and working capital requirements, and dividend payments as needed; the continued availability and sufficiency of our adjusted funds flow and availability under our bank credit facility to fund our working capital deficiency; our ability to comply with our debt covenants; the availability of third party services; the extent of our liabilities; the rates used to calculate the amount of our future abandonment


and reclamation costs and asset retirement obligations;


the availability of technology and processes to achieve environmental targets. In addition, Enerplus’ 2021 outlook contained in this news release is based on the following rest of year prices: US$69/bbl WTI, US$3.92/Mcf NYMEX, and a USD/CDN exchange rate of 1.26.  Furthermore, in addition, years 2022 to 2025 of Enerplus’ five-year outlook contained in this news release is based on the following: a WTI price of between US$50.00/bbl and US$55.00/bbl, a NYMEX price of US$2.75/Mcf and a USD/CDN exchange rate of 1.27. We believe the material factors, expectations and assumptions reflected in the forward-looking information are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct.


The forward-looking information included in this


news release is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation:


continued instability, or further deterioration, in global economic and market environment, including from COVID-19;


continued low commodity price environment or further volatility in commodity prices; changes in realized prices of Enerplus’ products from those currently anticipated; changes in the demand for or supply of our products; failure to realize the anticipated benefits of the Hess asset and Bruin acquisitions; unanticipated operating results, results from our capital spending activities or production declines;


legal proceedings in connection with DAPL;


curtailment of our production due to low realized prices or lack of adequate infrastructure; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in our capital plans or by third party operators of our properties; increased debt levels or debt service requirements; inability to comply with debt covenants under our bank credit facility and outstanding senior notes; inaccurate estimation of our oil and gas reserve and contingent resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; reliance on industry partners and third party service providers;


changes in law or government programs or policies in Canada or the United States;


and certain other risks detailed from time to time in our public disclosure documents (including, without limitation, those risks and contingencies described under “Risk Factors and Risk Management” in Enerplus’ 2020 MD&A and in our other public filings).


The purpose of our estimated free cash flow disclosure is to assist readers in understanding our expected and targeted financial results and this information may not be appropriate for other purposes. The forward-looking information contained in this press release speaks only as of the date of this press release, and we do not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws.



NON-GAAP MEASURES


In this news release, Enerplus uses the terms “adjusted funds flow”, “adjusted net income”, “free cash flow” “total debt net of cash” and “net debt to adjusted funds flow ratio” measures to analyze operating performance, leverage and liquidity. “Adjusted funds flow” is calculated as net cash generated from operating activities but before changes in non-cash operating working capital and asset retirement obligation expenditures. “Adjusted net income” is calculated as net income adjusted for unrealized derivative instrument gain/loss, asset impairment, goodwill impairment, gain on divestment of assets, unrealized foreign exchange gain/loss, and the tax effect of these items. “Free cash flow” is calculated as adjusted funds flow minus capital spending. “Total debt net of cash” is calculated as senior notes plus term loan plus outstanding bank credit facility balance, minus cash and cash equivalents”.  “Net debt to adjusted funds flow” is calculated as total debt net of cash, including restricted cash, divided by adjusted funds flow.


Enerplus believes that, in addition to cash flow from operating activities, net earnings and other measures prescribed by U.S. GAAP, the terms “adjusted funds flow”, “adjusted net income”, “free cash flow”, “total debt net of cash” and “net debt to adjusted funds flow” are useful supplemental measures as they provide an indication of the results generated by Enerplus’ principal business activities. However, these measures are not measures recognized by U.S. GAAP and do not have a standardized meaning prescribed by U.S. GAAP. Therefore, these measures, as defined by Enerplus, may not be comparable to similar measures presented by other issuers. For reconciliation of these measures to the most directly comparable measure calculated in accordance with U.S. GAAP, and further information about these measures, see disclosure under “Non-GAAP Measures” in Enerplus’ 2020 MD&A.

Electronic copies of Enerplus Corporation’s Second Quarter 2021 MD&A and Financial Statements, along with other public information including investor presentations, are available on its website at www.enerplus.com. Shareholders may, upon request, receive a printed copy of the Company’s audited financial statements at any time. For further information, please contact Investor Relations at 1-800-319-6462 or email [email protected].

SOURCE Enerplus Corporation

Posted on

Qualys Wins Two Pwnie Awards – Best Privileged Escalation Bug and Most Under-Hyped Research

Honor highlights value the Qualys Research Team brings to the cybersecurity community at large

PR Newswire

FOSTER CITY, Calif., Aug. 5, 2021 /PRNewswire/ — Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of cloud-based security and compliance solutions, today announced that its renowned research team won two Pwnie Awards at Black Hat USA 2021: Best Privilege Escalation Bug for CVE-2021-3156: Heap-Based Buffer Overflow in Sudo (Baron Samedit), and Most Under-Hyped Research for 21Nails. These awards honor the team for its cutting-edge research, discovery and responsible disclosure of new and critical vulnerabilities in popular software applications.

In a world where bad actors are becoming increasingly sophisticated, and almost weekly, discover and exploit vulnerabilities in widely used programs – research teams serve an incredibly vital purpose in protecting IT infrastructure and critical data. Qualys is committed to enabling its research team to conduct state-of-the-art research and identify vulnerabilities in popular applications before attackers find and maliciously exploit them.

The critical disclosures behind the award wins:

  • Best Privilege Escalation Bug:
    Heap-based buffer overflow in Sudo (Baron Samedit) is a heap-based buffer overflow vulnerability discovered in Sudo, a ubiquitous Unix program, exploitable by any local user, without authentication.
  • Most Under-Hyped Research: 
    21Nails were multiple critical vulnerabilities discovered in the Exim mail server, some of which can be chained together to obtain full remote unauthenticated code execution and gain root privileges.

The discovery of these vulnerabilities results from extremely thorough source code audits of each of these applications over a period of multiple months. These vulnerabilities were exceedingly difficult to find and, in some cases, deemed unexploitable. However, the Qualys Research Team was able to prove that these vulnerabilities were indeed exploitable and provide patches for them. Simultaneously, Qualys was able to prove that these vulnerabilities have been lurking in the code base for decades – adding to the disclosures’ levels of significance.

“Day in and day, out cybercriminals launch sophisticated attacks to discover assets connecting to your environment and exploit your ever-increasing attack surface. Defending against such attacks is what drives the Qualys Research Team,” said Mehul Revankar, vice president of Product Management & Engineering, VMDR at Qualys. “As part of our research process, we routinely investigate weaknesses in software packages that could lead to a compromise and responsibly disclose them to vendors to quickly resolve them; all to allow customers and any affected organization to mitigate threats and prioritize and facilitate an effective response.”

“Security research is in our DNA. Qualys recognizes the criticality of this program and prioritizes conducting research to find vulnerabilities before attackers do,” said Sumedh Thakar, president and CEO of Qualys. “We are honored to have received five Pwnie award nominations this year and thrilled to win in the Best Privileged Escalation and Most Under-Hyped Research categories.”

About the Pwnie Awards 2021

The Pwnie Awards are an annual recognition celebrating the achievements of security researchers and the security community. Nominations are taken from the security community at large, and a panel of respected security researchers reviewed the Active Nominations and announced winners in each category at Black Hat USA 2021.


The Qualys Research Team

The Qualys Research team engages in innovative vulnerability research helping customers discover and remediate critical vulnerabilities across their digital infrastructure. Qualys has multiple open positions within its research team. If you are a security researcher looking for new opportunities, we invite you to apply to open research and engineering positions worldwide.

Additional Resources

About Qualys

Qualys, Inc. (NASDAQ: QLYS) is a pioneer and leading provider of disruptive cloud-based IT, security and compliance solutions with over 19,000 active customers in more than 130 countries, including a majority of each of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions in a single platform and build security into digital transformation initiatives for greater agility, better business outcomes, and substantial cost savings.

The Qualys Cloud Platform and its integrated Cloud Apps deliver businesses critical security intelligence continuously, enabling them to automate the full spectrum of auditing, compliance, and protection for IT systems and web applications across on premises, endpoints, cloud, containers, and mobile environments. Founded in 1999 as one of the first SaaS security companies, Qualys has established strategic partnerships with leading cloud providers like Amazon Web Services, Microsoft Azure and the Google Cloud Platform, and managed service providers and consulting organizations including Accenture, BT, Cognizant Technology Solutions, Deutsche Telekom, DXC Technology, Fujitsu, HCL Technologies, IBM, Infosys, NTT, Optiv, SecureWorks, Tata Communications, Verizon and Wipro. The company is also a founding member of the Cloud Security Alliance. For more information, please visit www.qualys.com.

Qualys and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Media Contact:

Jackie Dutton

Qualys
[email protected]

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/qualys-wins-two-pwnie-awards—best-privileged-escalation-bug-and-most-under-hyped-research-301349890.html

SOURCE Qualys, Inc.

Posted on

Transcat, Inc. to Present at Oppenheimer Technology, Internet, and Communications Virtual Conference

Transcat, Inc. to Present at Oppenheimer Technology, Internet, and Communications Virtual Conference

ROCHESTER, N.Y.–(BUSINESS WIRE)–Transcat, Inc. (NASDAQ: TRNS), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, announced that Lee D. Rudow, Chief Executive Officer, and Mark A. Doheny, Chief Financial Officer, will present and be available for investor meetings at the Oppenheimer Technology, Internet and Communications Virtual Conference on Wednesday, August 11, 2021.

The Transcat presentation is scheduled to begin at 8:15 am Eastern Time. A link to the live webcast of the presentation, along with presentation materials, will be available at www.transcat.com/investor-relations. A replay of the webcast will be available for 60 days.

ABOUT TRANSCAT

Transcat, Inc. is a leading provider of accredited calibration, repair, inspection, and laboratory instrument services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the Life Science industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 22 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada, and services at 20 imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.

Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers.

Transcat’s strategy is to leverage the complementary nature of its two operating segments, its comprehensive service capabilities, strong brand, enhanced e-commerce capabilities and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model.

More information about Transcat can be found at: Transcat.com.

Mark A. Doheny

Chief Financial Officer

585-714-3617

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Other Manufacturing Technology Medical Devices Other Technology Manufacturing Biotechnology Hardware Health Pharmaceutical

MEDIA:

Logo
Logo
Posted on

Uber Health and ModivCare Announce Partnership, Boldly Aiming to Tackle Barriers to Healthcare Nationwide

One of Uber’s largest enterprise deals to-date, the partnership is designed to enable greater access to care across the country

SAN FRANCISCO and DENVER, Aug. 05, 2021 (GLOBE NEWSWIRE) — Uber Health and ModivCare, a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions focused on improving patient outcomes, today announced a nationwide partnership aimed at removing barriers to care at-scale, specifically for On-Demand Rides in underserved communities. The partnership, which enables national collaboration, offers a suite of integrated supportive care and non-emergency medical transportation (NEMT) solutions for public and private payers and 30 million patients served by ModivCare nationwide – including many Medicaid and Medicare Advantage members. In one of Uber’s largest and most dynamic enterprise relationships – this partnership is expected to enable greater access to care, help reduce costs across the continuum of care, and streamline population health management, thereby leading to improved patient outcomes in the U.S.

ModivCare is the largest NEMT broker in the nation, with over 40% of market share. In 2020, ModivCare managed 48.2 million trips through the industry’s largest network of contracted transportation companies, mass transit partnerships, mileage reimbursement programs, and independent driver networks to improve the well-being of their patients. In integrating via Uber Health’s application program interface (API), ModivCare can now even more easily request rides for the communities they serve directly within their existing workflows and offer access to care in communities that would otherwise not be possible.

“This partnership is one step closer to ensuring people in underserved communities are provided the highest quality access to care and transportation solutions that allow them to overcome health inequities. We will work tirelessly to continue our fight in solving the social determinants of health challenges in the nation,” said Dan Greenleaf, President and Chief Executive Officer of ModivCare. “We continue to invest in our ability to deliver the largest digital network of transportation partners to deliver on-demand transportation and close the gap in access to care.”

For Uber Health and ModivCare, this partnership is a natural extension of their broader commitments to addressing the social determinants of health (SDoH) and providing seamless access to healthcare which is expected to improve population healthcare management, so more people can achieve and maintain healthy lifestyles. Uber Health and ModivCare’s work together will help make connections to care that have a profound impact on people’s well-being. Beyond innovative mobility solutions, there is an opportunity for this partnership to further improve health outcomes more holistically by offering nutritional meal and prescription delivery as well.

“Throughout the course of the pandemic, Uber has doubled down on its commitment to address social determinants of health in innovative ways – from committing to providing 10 million rides and food deliveries to healthcare workers, seniors, and others in need, to, more recently, offering free rides to vaccination sites,” said Dara Khosrowshahi, Chief Executive Officer of Uber. “Access to healthcare is an integral piece of comprehensive, holistic care, which is why we’re proud to announce this partnership between Uber Health and ModivCare. We look forward to building on the partnership and leveraging the power and versatility of the Uber platform to reduce barriers to care.”

Key social determinants of health – such as access to transportation options, public safety, and additional resources like local food markets and healthcare services – affect long-term population and patient health outcomes. Negative effects disproportionately impact vulnerable communities like the elderly, low-income, or chronically ill. Lack of access to transportation in particular is emerging as a critical barrier to care that leads to rescheduled or missed appointments, delayed care, and missed or delayed medication use. Recent studies show that almost 6 million Americans miss medical care in a year due to transportation issues and that even one missed appointment can lead to significantly increased rates of attrition, where patients stop seeing their regular providers.

For more information on how Uber Health and ModivCare are working together please visit uberhealth.com.

About Uber Health

Since 2018, Uber Health’s HIPAA-secure solution has become the logistics platform of choice for healthcare organizations focused on population health management. From non-emergency medical transportation, nutritional meals to prescription delivery, Uber Health can help connect millions to the care they need. Over 2,000 healthcare organizations like ALC Solutions, Cerner, Boston Medical Center, and ModivCare trust Uber Health to provide access to stress-free transportation for those they care for. By tapping into Uber’s logistics expertise, Uber Health’s API is able to facilitate everything from mobility solutions to critical deliveries, streamlining population health management and supporting better patient outcomes. For more information, visit uberhealth.com.

About ModivCare Inc.

ModivCare Inc. (Nasdaq: MODV) is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payers and their patients. ModivCare’s value-based solutions addressing the social determinants of health (SDoH), enable greater access to care, reduce costs, and improve outcomes. ModivCare also holds a minority equity interest in CCHN Group Holdings, Inc. and its subsidiaries (“Matrix Medical Network”), which partners with leading health plans and providers nationally, delivering a broad array of assessment and care management services to individuals that improve health outcomes and health plan financial performance. To learn more about ModivCare, please visit: www.modivcare.com.

Cautionary Information Concerning Forward-Looking Statements

This press release contains “forward-looking statements” that reflect our current views, expectations, and assumptions about future events and projections about our businesses and industries. These statements are predictive in nature and frequently are identified by the use of terms such as “will,” “expect,” “estimate,” “intend,” and similar words indicating possible future actions or outcomes. These statements are not guarantees of future performance. Rather, they are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond the ability to control or predict, that may cause actual events to be materially different from those expressed or implied in this release, including: government or private insurance program funding reductions or limitations; alternative payment models or the transition of Medicaid and Medicare beneficiaries to Managed Care Organizations, or MCOs; inability to control reimbursement rates received for services performed; cost containment initiatives undertaken by private third-party payors; the effects of a public health emergency, such as the novel coronavirus; inadequacies in, or security breaches of, information technology systems, including the systems intended to protect clients’ privacy and confidential information; any changes in the funding, financial viability or customer relationships with payors; disruptions to contact center operations caused by health epidemics or pandemics like COVID-19; any failure to maintain or to develop further reliable, efficient and secure information technology systems; the failure to compete effectively in the marketplace; not being awarded contracts through the government’s requests for proposals process, or awarded contracts not being profitable; any misclassification of the drivers engaged as independent contractors rather than as employees; significant interruptions in communication and data services; and the loss of existing favorable managed care contracts.

ModivCare has provided additional information about the risks facing its business in its annual report on Form 10-K and subsequent periodic and current filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date asserted and are expressly qualified in their entirety by the cautionary statements set forth above and in the referenced ModivCare filings with the SEC, which you should read in their entirety because they contain important information. We undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable law.

Uber Health Media Contact


[email protected]

ModivCare Media Contact

Kate Zerone
Senior Manager, Communications
[email protected]



Posted on

UScellular reports second quarter 2021 results

Executing on strategic priorities;

guidance reaffirmed

PR Newswire

CHICAGO, Aug. 5, 2021 /PRNewswire/ —

As previously announced, UScellular will hold a teleconference August 6, 2021, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.uscellular.com.

United States Cellular Corporation (NYSE:USM) reported total operating revenues of $1,014 million for the second quarter of 2021, versus $973 million for the same period one year ago. Service revenues totaled $774 million, versus $753 million for the same period a year ago. Net income attributable to UScellular shareholders and related diluted earnings per share were $35 million and $0.39, respectively, for the second quarter of 2021 compared to $68 million and $0.78, respectively, in the same period one year ago.

“UScellular continued strong growth in service revenue and made meaningful progress towards our strategic priorities,” said Laurent Therivel, UScellular President and CEO. “Higher postpaid ARPU helped drive service revenue growth as customers chose higher-value plans.

“Our efforts to expand our prepaid business are starting to generate positive results, and our business-and-government initiatives are laying the foundation for future growth. With the competitive environment top of mind, we are continuing to execute our community-by-community strategy in order to deliver solutions that are right for our customers. 

“Our 5G and network modernization programs are on track. We continue to be very optimistic on the performance capabilities of mmWave spectrum. Additionally, the 5G fixed wireless access tests of market demand have seen early, encouraging results and will provide valuable learnings as we look to bring this high-speed product to market.

“I continue to be impressed with the hard work of our associates and their commitment to keeping our customers connected. I’d like to thank all of them for their contributions this quarter.”

2021 Estimated Results

UScellular’s current estimates of full-year 2021 results are shown below. Such estimates represent management’s view as of August 5, 2021 and should not be assumed to be current as of any future date. UScellular undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.


2021 Estimated Results

Previous


Current

(Dollars in millions)

Service revenues

$3,050-$3,150


Unchanged

Adjusted OIBDA1

$850-$950


Unchanged

Adjusted EBITDA1

$1,025-$1,125


Unchanged

Capital expenditures

$775-$875


Unchanged

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2021 estimated results, UScellular has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, UScellular believes that the impact of income taxes cannot be reasonably predicted; therefore, UScellular is unable to provide such guidance.


Actual Results


2021 Estimated
Results


Six Months Ended


June 30, 2021


Year Ended

December 31, 2020

(Dollars in millions)


Net income (GAAP)

N/A


$


97

$

233

Add back:

Income tax expense

N/A


17

17


Income before income taxes (GAAP)

$125-$225


$


114

$

250

Add back:

Interest expense

180


97

112

Depreciation, amortization and accretion expense

700


350

683

EBITDA (Non-GAAP)1

$1,005-$1,105


$


561

$

1,045

Add back or deduct:

(Gain) loss on asset disposals, net

20


7

25

(Gain) loss on sale of business and other exit costs, net

—


(1)

—

(Gain) loss on license sales and exchanges, net

—


—

(5)

(Gain) loss on investments

—


—

(2)

Adjusted EBITDA (Non-GAAP)1

$1,025-$1,125


$


567

$

1,063

Deduct:

Equity in earnings of unconsolidated entities

170


88

179

Interest and dividend income

5


3

8

Adjusted OIBDA (Non-GAAP)1

$850-$950


$


476

$

876


1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. UScellular does not intend to imply that any such items set forth in the reconciliation above are non-recurring, infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of UScellular’s operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of UScellular’s financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, and gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for June 30, 2021, can be found on UScellular’s website at investors.uscellular.com.

Conference Call Information
UScellular will hold a conference call on August 6, 2021 at 9:00 a.m. Central Time.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.uscellular.com. The call will be archived on the Events & Presentations page of investors.uscellular.com.

About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 5.0 million connections in 21 states. The Chicago-based company employed approximately 5,000 associates as of June 30, 2021. At the end of the second quarter of 2021, Telephone and Data Systems, Inc. owned 82 percent of UScellular. For more information about UScellular, visit uscellular.com.


Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
 All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; UScellular’s smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of UScellular’s businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; uncertainties in UScellular’s future cash flows and liquidity and access to the capital markets; the ability to make payments on UScellular indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; potential conflicts of interests between TDS and UScellular; cyber-attacks or other breaches of network or information technology security; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of UScellular’s Form 10-K, as updated by any UScellular Form 10-Q filed subsequent to such Form 10-K.

For more information about UScellular, visit: www.uscellular.com



 


United States Cellular Corporation


Summary Operating Data (Unaudited)


As of or for the Quarter Ended


6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020


Retail Connections


Postpaid

Total at end of period


4,399,000

4,406,000

4,412,000

4,401,000

4,372,000

Gross additions


141,000

143,000

171,000

168,000

129,000

Feature phones


3,000

3,000

2,000

4,000

3,000

Smartphones


98,000

101,000

117,000

98,000

82,000

Connected devices


40,000

39,000

52,000

66,000

44,000

Net additions (losses)


(6,000)

(6,000)

11,000

28,000

12,000

Feature phones


(7,000)

(9,000)

(9,000)

(8,000)

(8,000)

Smartphones


6,000

6,000

12,000

8,000

11,000

Connected devices


(5,000)

(3,000)

8,000

28,000

9,000

ARPU1


$


47.74

$

47.65

$

47.51

$

47.10

$

46.24

ARPA2


$


125.25

$

125.25

$

124.87

$

123.27

$

120.70

Churn rate3


1.11


%

1.12

%

1.21

%

1.06

%

0.89

%

Handsets


0.88


%

0.92

%

1.01

%

0.88

%

0.71

%

Connected devices


2.69


%

2.53

%

2.64

%

2.35

%

2.24

%


Prepaid

Total at end of period


507,000

496,000

499,000

506,000

496,000

Gross additions


65,000

62,000

56,000

65,000

62,000

Net additions (losses)


10,000

(3,000)

(8,000)

11,000

2,000

ARPU1


$


35.64

$

35.25

$

35.15

$

35.45

$

34.89

Churn rate3


3.66


%

4.37

%

4.24

%

3.59

%

4.05

%


Total connections at end of period4


4,967,000

4,961,000

4,968,000

4,962,000

4,919,000


Market penetration at end of period

Consolidated operating population


31,493,000

31,493,000

31,314,000

31,314,000

31,292,000

Consolidated operating penetration5


16


%

16

%

16

%

16

%

16

%


Capital expenditures (millions)


$


148

$

125

$

320

$

216

$

168


Total cell sites in service


6,819

6,802

6,797

6,758

6,673


Owned towers


4,278

4,270

4,271

4,246

4,208


1 

Average Revenue Per User (ARPU) – metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:


•     

Postpaid ARPU consists of total postpaid service revenues and postpaid connections.


•     

Prepaid ARPU consists of total prepaid service revenues and prepaid connections.


2

Average Revenue Per Account (ARPA) – metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.


3

Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.


4

Includes reseller and other connections.


5 

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.

 


United States Cellular Corporation


Consolidated Statement of Operations Highlights


(Unaudited)


Three Months Ended


June 30,


Six Months Ended


June 30,


2021

2020

2021

vs. 2020


2021

2020

2021

vs. 2020

(Dollars and shares in millions, except per share amounts)


Operating revenues

Service


$


774

$

753

3

%


$


1,545

$

1,515

2

%

Equipment sales


240

220

9

%


492

422

17

%

Total operating revenues


1,014

973

4

%


2,037

1,937

5

%


Operating expenses

System operations (excluding Depreciation, amortization and accretion reported below)


204

197

4

%


389

377

3

%

Cost of equipment sold


258

218

19

%


533

435

23

%

Selling, general and administrative


334

323

3

%


639

659

(3)

%

Depreciation, amortization and accretion


180

178

1

%


350

354

(2)

%

(Gain) loss on asset disposals, net


2

4

(50)

%


7

8

(9)

%

(Gain) loss on sale of business and other exit costs, net


—

—

N/M


(1)

—

N/M

Total operating expenses


978

920

6

%


1,917

1,833

5

%


Operating income


36

53

(32)

%


120

104

16

%


Investment and other income (expense)

Equity in earnings of unconsolidated entities


47

44

7

%


88

89

–

Interest and dividend income


2

1

54

%


3

5

(30)

%

Interest expense


(60)

(25)

N/M


(97)

(49)

N/M

Total investment and other income (expense)


(11)

20

N/M


(6)

45

N/M


Income before income taxes


25

73

(66)

%


114

149

(24)

%

Income tax expense (benefit)


(10)

4

N/M


17

8

N/M


Net income


35

69

(49)

%


97

141

(31)

%

Less: Net income attributable to noncontrolling interests, net of tax


—

1

(2)

%


2

2

16

%


Net income attributable to UScellular shareholders


$


35

$

68

(49)

%


$


95

$

139

(32)

%


Basic weighted average shares outstanding


87

86

1

%


87

86

–


Basic earnings per share attributable to UScellular shareholders


$


0.40

$

0.79

(50)

%


$


1.10

$

1.62

(32)

%


Diluted weighted average shares outstanding


88

87

1

%


88

87

–


Diluted earnings per share attributable to UScellular shareholders


$


0.39

$

0.78

(50)

%


$


1.08

$

1.59

(32)

%

N/M – Percentage change not meaningful

 


United States Cellular Corporation


Consolidated Balance Sheet Highlights


(Unaudited)


ASSETS


June 30, 2021

December 31, 2020

(Dollars in millions)


Current assets

Cash and cash equivalents


$


267

$

1,271

Short-term investments


—

3

Accounts receivable, net


974

998

Inventory, net


183

146

Prepaid expenses


55

51

Income taxes receivable


126

125

Other current assets


40

29

Total current assets


1,645

2,623


Assets held for sale


3

2


Licenses


3,917

2,629


Investments in unconsolidated entities


445

435


Property, plant and equipment, net


2,386

2,466


Operating lease right-of-use assets


950

924


Other assets and deferred charges


574

602


Total assets


$


9,920

$

9,681

 


United States Cellular Corporation


Consolidated Balance Sheet Highlights


(Unaudited)


LIABILITIES AND EQUITY


June 30, 2021

December 31, 2020

(Dollars in millions, except per share amounts)


Current liabilities

Current portion of long-term debt


$


3

$

2

Accounts payable


293

387

Customer deposits and deferred revenues


153

151

Accrued taxes


46

48

Accrued compensation


53

82

Short-term operating lease liabilities


125

116

Other current liabilities


78

85

Total current liabilities


751

871


Liabilities held for sale


—

1


Deferred liabilities and credits

Deferred income tax liability, net


668

633

Long-term operating lease liabilities


890

875

Other deferred liabilities and credits


372

376


Long-term debt, net


2,710

2,489


Noncontrolling interests with redemption features


10

10


Equity

UScellular shareholders’ equity

Series A Common and Common Shares, par value $1.00 per share


88

88

Additional paid-in capital


1,663

1,651

Treasury shares


(42)

(67)

Retained earnings


2,794

2,739

Total UScellular shareholders’ equity


4,503

4,411

Noncontrolling interests


16

15

Total equity


4,519

4,426


Total liabilities and equity


$


9,920

$

9,681

 

 

Cision View original content:https://www.prnewswire.com/news-releases/uscellular-reports-second-quarter-2021-results-301349885.html

SOURCE United States Cellular Corporation

Posted on

TDS reports second quarter 2021 results

UScellular and TDS Telecom executing on strategic priorities; guidance reaffirmed

PR Newswire

CHICAGO, Aug. 5, 2021 /PRNewswire/ — 

As previously announced, TDS will hold a teleconference August 6, 2021, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.   

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,311 million for the second quarter of 2021, versus $1,263 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share were $20 million and $0.17, respectively, for the second quarter of 2021 compared to $65 million and $0.56, respectively, in the same period one year ago.

“The TDS family of companies produced solid revenue growth for the second quarter of 2021 and made good progress on achieving our long-term strategic goals,” said LeRoy T. Carlson, Jr., TDS President and CEO. “Also, our commitment to maintaining financial flexibility has allowed us to take actions to lower the average cost of financing for our growth initiatives. 

“At UScellular, higher postpaid ARPU helped drive service revenue growth as customers chose higher-value plans. Our efforts to build market share in our prepaid business are starting to generate positive results, and our business and government initiatives are laying the foundation for future growth. UScellular’s 5G and network modernization programs are on track. We continue to be very optimistic on the performance capabilities of mmWave spectrum. Additionally, the 5G fixed wireless access tests of market demand have seen early, encouraging results and will provide valuable learnings as we look to bring this high-speed service to market.

“At TDS Telecom, increased broadband connections and customers choosing higher speeds contributed to higher operating revenues for the quarter. 1Gig speeds are available to more than half of all service addresses, and the TDS Telecom fiber footprint is expanding  inside as well as outside of our traditional markets. Performance of our launched fiber expansion markets continues to meet expectations. To take advantage of the fiber opportunities, we are accelerating and upsizing our fiber expansion in the years ahead.”

2021 Estimated Results

TDS’ current estimates of full-year 2021 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of August 5, 2021 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.


2021 Estimated Results


UScellular

Previous


Current

(Dollars in millions)

Service revenues

$3,050-$3,150


Unchanged

Adjusted OIBDA1

$850-$950


Unchanged

Adjusted EBITDA1

$1,025-$1,125


Unchanged

Capital expenditures

$775-$875


Unchanged


TDS Telecom

Previous


Current

(Dollars in millions)

Total operating revenues

$975-$1,025


Unchanged

Adjusted OIBDA1

$290-$320


Unchanged

Adjusted EBITDA1

$290-$320


Unchanged

Capital expenditures

$425-$475


Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2021 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.


2021 Estimated Results


UScellular


TDS Telecom

(Dollars in millions)


Net income (GAAP)

N/A

N/A

Add back:

Income tax expense

N/A

N/A


Income before income taxes (GAAP)

$125-$225

$80-$110

Add back:

Interest expense

180

—

Depreciation, amortization and accretion expense

700

210

EBITDA (Non-GAAP)1

$1,005-$1,105

$290-$320

Add back or deduct:

(Gain) loss on asset disposals, net

20

—

Adjusted EBITDA (Non-GAAP)1

$1,025-$1,125

$290-$320

Deduct:

Equity in earnings of unconsolidated entities

170

—

Interest and dividend income

5

—

Adjusted OIBDA (Non-GAAP)1

$850-$950

$290-$320

 


Actual Results


Six Months Ended


June 30, 2021


Year Ended


December 31, 2020


UScellular


TDS


Telecom


UScellular


TDS


Telecom 

(Dollars in millions)


Net income (GAAP)


$


97


$


46

$

233

$

100

Add back:

Income tax expense


17


15

17

18


Income before income taxes (GAAP)


$


114


$


62

$

250

$

117

Add back:

Interest expense


97


(2)

112

(4)

Depreciation, amortization and accretion expense


350


98

683

203

EBITDA (Non-GAAP)1


$


561


$


157

$

1,045

$

316

Add back or deduct:

(Gain) loss on asset disposals, net


7


1

25

1

(Gain) loss on sale of business and other exit costs, net


(1)


—

—

—

(Gain) loss on license sales and exchanges, net


—


—

(5)

—

(Gain) loss on investments


—


—

(2)

—

Adjusted EBITDA (Non-GAAP)1


$


567


$


158

$

1,063

$

317

Deduct:

Equity in earnings of unconsolidated entities


88


—

179

—

Interest and dividend income


3


—

8

5

Other, net


—


—

—

(1)

Adjusted OIBDA (Non-GAAP)1


$


476


$


159

$

876

$

314

Numbers may not foot due to rounding.


1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are non-recurring, infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, and gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for June 30, 2021, can be found on TDS’ website at investors.tdsinc.com.

Conference Call Information

TDS will hold a conference call on August 6, 2021 at 9:00 a.m. Central Time.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed approximately 8,900 associates as of June 30, 2021.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.


Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

 All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS’ smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; cyber-attacks or other breaches of network or information technology security; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.    

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com
UScellular: www.uscellular.com 
TDS Telecom: www.tdstelecom.com 
OneNeck IT Solutions: www.oneneck.com


United States Cellular Corporation


Summary Operating Data (Unaudited)


As of or for the Quarter Ended


6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020


Retail Connections


Postpaid

Total at end of period


4,399,000

4,406,000

4,412,000

4,401,000

4,372,000

Gross additions


141,000

143,000

171,000

168,000

129,000

Feature phones


3,000

3,000

2,000

4,000

3,000

Smartphones


98,000

101,000

117,000

98,000

82,000

Connected devices


40,000

39,000

52,000

66,000

44,000

Net additions (losses)


(6,000)

(6,000)

11,000

28,000

12,000

Feature phones


(7,000)

(9,000)

(9,000)

(8,000)

(8,000)

Smartphones


6,000

6,000

12,000

8,000

11,000

Connected devices


(5,000)

(3,000)

8,000

28,000

9,000

ARPU1


$


47.74

$

47.65

$

47.51

$

47.10

$

46.24

ARPA2


$


125.25

$

125.25

$

124.87

$

123.27

$

120.70

Churn rate3


1.11


%

1.12

%

1.21

%

1.06

%

0.89

%

Handsets


0.88


%

0.92

%

1.01

%

0.88

%

0.71

%

Connected devices


2.69


%

2.53

%

2.64

%

2.35

%

2.24

%


Prepaid

Total at end of period


507,000

496,000

499,000

506,000

496,000

Gross additions


65,000

62,000

56,000

65,000

62,000

Net additions (losses)


10,000

(3,000)

(8,000)

11,000

2,000

ARPU1


$


35.64

$

35.25

$

35.15

$

35.45

$

34.89

Churn rate3


3.66


%

4.37

%

4.24

%

3.59

%

4.05

%


Total connections at end of period4


4,967,000

4,961,000

4,968,000

4,962,000

4,919,000


Market penetration at end of period

Consolidated operating population


31,493,000

31,493,000

31,314,000

31,314,000

31,292,000

Consolidated operating penetration5


16


%

16

%

16

%

16

%

16

%


Capital expenditures (millions)


$


148

$

125

$

320

$

216

$

168


Total cell sites in service


6,819

6,802

6,797

6,758

6,673


Owned towers


4,278

4,270

4,271

4,246

4,208


1

Average Revenue Per User (ARPU) – metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:

•

Postpaid ARPU consists of total postpaid service revenues and postpaid connections.

•

Prepaid ARPU consists of total prepaid service revenues and prepaid connections.


2

Average Revenue Per Account (ARPA) – metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.


3

Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.


4

Includes reseller and other connections.


5

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.

 


TDS Telecom


Summary Operating Data (Unaudited)


As of or for the Quarter Ended


6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020


Residential connections

Broadband1

Wireline, Incumbent


249,200

243,700

242,500

243,400

240,400

Wireline, Expansion


28,300

24,100

20,400

17,300

14,700

Cable


201,200

199,500

196,400

193,300

191,000

Total Broadband


478,700

467,300

459,300

454,000

446,000

Video2

Wireline


64,800

63,000

63,000

62,300

61,400

Cable


78,400

79,600

81,400

82,300

83,200

Total Video


143,200

142,700

144,400

144,500

144,600

Voice3

Wireline


254,200

255,000

256,900

260,000

261,800

Cable


54,000

53,700

53,900

54,400

55,300

Total Voice


308,100

308,700

310,800

314,400

317,100

Total Residential connections


930,100

918,700

914,400

913,000

907,800


Commercial connections

Broadband1


34,900

34,400

34,000

33,700

33,400

Video2


19,100

19,400

19,700

19,700

20,300

Voice3


114,300

116,500

119,700

122,700

126,100

ManagedIP4


106,200

108,500

113,300

116,700

117,300

Total Commercial connections


274,400

278,800

286,700

292,900

297,200


Total connections


1,204,500

1,197,400

1,201,100

1,205,900

1,205,000


Residential revenue per connection5


$


57.66

$

56.97

$

55.66

$

55.66

$

53.82


Capital expenditures (millions)


$


99

$

70

$

147

$

92

$

75

Numbers may not foot due to rounding.


1

The individual customers provided high-speed internet access through various transmission technologies, including fiber, DSL, dedicated internet circuit technologies or cable modem service.


2

The individual customers provided video services.


3

The individual circuits connecting a customer to TDS’ central office facilities that provide voice services or the billable number of lines into a building for voice services.


4

The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.


5

Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

 


Telephone and Data Systems, Inc.


Consolidated Statement of Operations Highlights


(Unaudited)


Three Months Ended


June 30,


Six Months Ended


June 30,


2021

2020

2021

vs. 2020


2021

2020

2021

vs. 2020

(Dollars and shares in millions, except per share amounts)


Operating revenues

UScellular


$


1,014

$

973

4

%


$


2,037

$

1,937

5

%

TDS Telecom


252

241

5

%


501

481

4

%

All Other1


45

49

(8)

%


91

106

(15)

%


1,311

1,263

4

%


2,629

2,524

4

%


Operating expenses

UScellular

Expenses excluding depreciation, amortization and accretion


796

738

8

%


1,561

1,471

6

%

Depreciation, amortization and accretion


180

178

1

%


350

354

(2)

%

(Gain) loss on asset disposals, net


2

4

(50)

%


7

8

(9)

%

(Gain) loss on sale of business and other exit costs, net


—

—

N/M


(1)

—

N/M


978

920

6

%


1,917

1,833

5

%

TDS Telecom

Expenses excluding depreciation, amortization and accretion


174

158

10

%


342

319

7

%

Depreciation, amortization and accretion


49

51

(5)

%


98

103

(5)

%

(Gain) loss on asset disposals, net


1

—

N/M


1

—

N/M


224

210

7

%


441

422

5

%

All Other1

Expenses excluding depreciation and amortization


46

49

(6)

%


94

105

(13)

%

Depreciation and amortization


5

7

(17)

%


9

13

(17)

%


51

55

(7)

%


103

118

(14)

%

Total operating expenses


1,253

1,185

6

%


2,461

2,373

4

%


Operating income (loss)

UScellular


36

53

(32)

%


120

104

16

%

TDS Telecom


28

31

(10)

%


60

59

1

%

All Other1


(6)

(6)

–


(12)

(12)

2

%


58

78

(26)

%


168

151

12

%


Investment and other income (expense)

Equity in earnings of unconsolidated entities


48

44

7

%


90

90

–

Interest and dividend income


3

2

40

%


6

8

(22)

%

Interest expense


(86)

(38)

N/M


(138)

(75)

(85)

%

Other, net


—

—

(11)

%


(1)

(1)

10

%

Total investment and other income (expense)


(35)

8

N/M


(43)

22

N/M


Income before income taxes


23

86

(73)

%


125

173

(28)

%

Income tax expense (benefit)


(11)

8

N/M


20

12

62

%


Net income


34

78

(56)

%


105

161

(35)

%

Less: Net income attributable to noncontrolling interests, net of tax


7

13

(44)

%


19

26

(26)

%


Net income attributable to TDS shareholders


27

65

(59)

%


86

135

(36)

%

TDS Preferred Share dividends


7

—

N/M


9

—

N/M


Net income attributable to TDS common shareholders


$


20

$

65

(69)

%


$


77

$

135

(43)

%


Basic weighted average shares outstanding


115

114

–


115

115

–


Basic earnings per share attributable to TDS common shareholders


$


0.18

$

0.57

(69)

%


$


0.67

$

1.18

(43)

%


Diluted weighted average shares outstanding


116

115

1

%


116

115

–


Diluted earnings per share attributable to TDS common shareholders


$


0.17

$

0.56

(70)

%


$


0.65

$

1.15

(43)

%

N/M – Percentage change not meaningful.

Numbers may not foot due to rounding.


1

Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.

 

 


Telephone and Data Systems, Inc.


Consolidated Balance Sheet Highlights


(Unaudited)


ASSETS


June 30, 2021

December 31, 2020

(Dollars in millions)


Current assets

Cash and cash equivalents


$


385

$

1,429

Short-term investments


—

3

Accounts receivable, net


1,072

1,112

Inventory, net


189

154

Prepaid expenses


108

105

Income taxes receivable


187

187

Other current assets


50

36

Total current assets


1,991

3,026


Assets held for sale


3

2


Licenses


3,926

2,638


Goodwill


547

547


Other intangible assets, net


207

213


Investments in unconsolidated entities


487

477


Property, plant and equipment, net


3,972

3,972


Operating lease right-of-use assets


1,021

998


Other assets and deferred charges


626

652


Total assets


$


12,780

$

12,525

 


Telephone and Data Systems, Inc.


Consolidated Balance Sheet Highlights


(Unaudited)


LIABILITIES AND EQUITY


June 30, 2021

December 31, 2020

(Dollars in millions, except per share amounts)


Current liabilities

Current portion of long-term debt


$


6

$

5

Accounts payable


374

508

Customer deposits and deferred revenues


199

193

Accrued interest


13

16

Accrued taxes


66

69

Accrued compensation


92

132

Short-term operating lease liabilities


138

129

Other current liabilities


98

101

Total current liabilities


986

1,153


Liabilities held for sale


—

1


Deferred liabilities and credits

Deferred income tax liability, net


903

863

Long-term operating lease liabilities


951

940

Other deferred liabilities and credits


538

541


Long-term debt, net


3,335

3,424


Noncontrolling interests with redemption features


10

10


Equity

TDS shareholders’ equity

Series A Common and Common Shares, par value $0.01 per share


1

1

Capital in excess of par value


2,462

2,482

Preferred Shares, par value $0.01 per share


406

—

Treasury shares, at cost


(458)

(477)

Accumulated other comprehensive loss


(2)

(4)

Retained earnings


2,812

2,802

Total TDS shareholders’ equity


5,221

4,804

Noncontrolling interests


836

789

Total equity


6,057

5,593


Total liabilities and equity


$


12,780

$

12,525

 


Balance Sheet Highlights


(Unaudited)


June 30, 2021


TDS


TDS
Corporate


Intercompany


TDS


UScellular


Telecom


& Other


Eliminations


Consolidated

(Dollars in millions)

Cash and cash equivalents

$

267

$

167

$

119

$

(168)

$

385

Licenses, goodwill and other intangible assets

$

3,917

$

756

$

7

$

—

$

4,680

Investment in unconsolidated entities

445

4

46

(8)

487

$

4,362

$

760

$

53

$

(8)

$

5,167

Property, plant and equipment, net

$

2,386

$

1,492

$

94

$

—

$

3,972

Long-term debt, net:

Current portion

$

3

$

—

$

3

$

—

$

6

Non-current portion

2,710

4

621

—

3,335

$

2,713

$

4

$

624

$

—

$

3,341

 


TDS Telecom Highlights


(Unaudited)


Three Months Ended


June 30,


Six Months Ended


June 30,


2021

2020

2021

vs. 2020


2021

2020

2021

vs. 2020

(Dollars in millions)


Operating revenues

Residential

Wireline, Incumbent


$


86

$

81

7

%


$


171

$

162

6

%

Wireline, Expansion


8

4

81

%


15

8

80

%

Cable


66

60

10

%


131

119

9

%

Total residential


160

145

10

%


317

289

10

%

Commercial


46

48

(4)

%


93

98

(5)

%

Wholesale


45

47

(3)

%


91

94

(3)

%

Total service revenues


251

240

5

%


500

480

4

%

Equipment revenues


—

—

5

%


1

1

7

%

Total operating revenues


252

241

5

%


501

481

4

%

Cost of services


101

92

10

%


199

188

6

%

Cost of equipment and products


—

—

(12)

%


—

—

(7)

%

Selling, general and administrative expenses


73

66

11

%


143

130

10

%

Depreciation, amortization and accretion


49

51

(5)

%


98

103

(5)

%

(Gain) loss on asset disposals, net


1

—

N/M


1

—

N/M

Total operating expenses


224

210

7

%


441

422

5

%


Operating income


$


28

$

31

(10)

%


$


60

$

59

1

%

N/M – Percentage change not meaningful

Numbers may not foot due to rounding.

 

Cision View original content:https://www.prnewswire.com/news-releases/tds-reports-second-quarter-2021-results-301349884.html

SOURCE Telephone and Data Systems, Inc.

Posted on

Crocs, Inc. Announces Pricing of $350 Million Senior Notes

PR Newswire

BROOMFIELD, Colo., Aug. 5, 2021 /PRNewswire/ — Crocs, Inc. (“Crocs”) (Nasdaq: CROX) today announced the pricing of its previously announced $350 million offering of 4.125% senior notes due 2031 (the “Notes”) in a private offering. The Notes priced at 100.000% of the principal amount thereof. The Notes will be guaranteed, jointly and severally, on an unsecured basis, by certain of Crocs’ wholly-owned restricted subsidiaries. The offering of the Notes is expected to close on or around August 10, 2021, subject to customary closing conditions.

Crocs intends to use the net proceeds from the offering of the Notes for stock repurchases, which may include accelerated share repurchases, and the remainder, if any, for general corporate purposes, which may include working capital, capital expenditures, repayment of debt and acquisitions.

The Notes and related guarantees are being offered for sale to persons reasonably believed to be qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. No assurance can be given that the offering of the Notes will be completed.

The Notes and related guarantees have not been, and will not be, registered under the Securities Act, or the securities laws of any state or other jurisdiction, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.  This press release is being issued pursuant to, and in accordance with, Rule 135c under the Securities Act.

About Crocs, Inc.:

Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual footwear for women, men, and children, combining comfort and style with a value that consumers know and love. The vast majority of shoes within Crocs’ collection contain Croslite™ material, a proprietary, molded footwear technology, delivering extraordinary comfort with each step.  In 2021, Crocs declares that expressing yourself and being comfortable are not mutually exclusive.

Forward Looking Statements:

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the proposed Notes offering. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the risks and uncertainties associated with the satisfaction of customary closing conditions related to the proposed Notes offering; the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; current global financial conditions, including economic impacts resulting from the COVID-19 pandemic; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; and other factors described in the offering memorandum for the proposed offering and our most recent Annual Report on Form 10-K under the heading “Risk Factors” and our subsequent filings with the Securities and Exchange Commission (the “SEC”). Readers are encouraged to review that section and all other disclosures appearing in our filings with the SEC.

All information in this document speaks as of the date of this press release. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.

Category:Investors

Investor Contact:
Cori Lin, Crocs, Inc.
(303) 848-5053
[email protected]

Media Contact:
Melissa Layton, Crocs, Inc.
(303) 848-7885
[email protected]

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/crocs-inc-announces-pricing-of-350-million-senior-notes-301349883.html

SOURCE Crocs, Inc.

Posted on

Westport Fuel Systems Reports Second Quarter 2021 Financial Results

VANCOUVER, British Columbia, Aug. 05, 2021 (GLOBE NEWSWIRE) — Westport Fuel Systems Inc. (“WFS“) (TSX:WPRT / Nasdaq:WPRT) reported financial results for the second quarter ended June 30, 2021, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.

SECOND QUARTER 2021 HIGHLIGHTS

  • Record revenue of $84.7 million, up 135% compared to the same period in 2020 and a sequential increase of 11% compared to Q1 2021, due to the continued recovery of sales volumes in our independent aftermarket (“IAM”) and light-duty original equipment manufacturer (“OEM”) businesses as well as continued growth in our heavy-duty OEM business.
  • Acquisition of Stako sp. z.o.o (“Stako”) closed May 30, 2021 to further support the energy transition to cleaner fuels, for a total purchase price of $7.1 million, with a gain on the purchase of $5.9 million recorded in the second quarter 2021.
  • Net income of $17.2 million and net income per share of $0.11 mainly due to the gain from the acquisition of Stako, increased gross margin, higher income from Cummins Westport Inc. joint venture (“CWI”), a $2.3 million foreign exchange gain and an $8.9 million tax recovery recognized for a COVID-19 tax relief ruling from the government of Italy during the quarter.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $6.2 million.
  • Marketed public offering completed June 8, 2021, raising gross proceeds of $115.1 million, to be used primarily to expand and automate production capacity of our high-pressure direct injection (“HPDI”) products to meet growing customer demand, and to fund additional development activities.
  • Announced a collaboration with Tupy and AVL List GmbH to develop a highly efficient hydrogen internal combustion engine for heavy goods transportation.

“The second quarter of 2021 was another record revenue quarter for Westport Fuel Systems. We saw a substantial recovery in our independent aftermarket and light-duty OEM businesses relative to the same period last year. This is despite the ongoing challenges of the global semiconductor shortage currently affecting the automotive industry. Fleet operators continue to advance carbon-reduction commitments through the purchase of HPDI 2.0 equipped trucks fueled with renewable gas. In doing so, they continue to realize operating cost savings from a product capable of meeting fleets’ most demanding performance requirements.

The outlook for our business is strong, underpinned by strong regulatory tailwinds and continued growth of LNG infrastructure in Europe, with further growth and recognition of bio–LNG as a clean, affordable fuel. In China, support for expanding the adoption of natural gas transportation solutions continues, evidenced in the government’s five-year plan published earlier this year.

Development work on our hydrogen HPDI solution is advancing. Hydrogen with HPDI is expected to offer game-changing advantages for OEMs and suppliers, allowing them to leverage existing supply chains and engine production capabilities, while reducing the concerns of supplying and recycling precious and rare earth metals. The need for cleaner transportation solutions has never been more pressing, and our gaseous fuel solutions save our customers money while reducing their carbon footprint.”

David M. Johnson, Chief Executive Officer

2Q21 Continuing Operations

CONSOLIDATED RESULTS      
($ in millions, except per share amounts)

   Over /
(Under)
% 		  Over /
(Under)
%
2Q21 2Q20 1H21 1H20
Revenues $ 84.7   $ 36.0   135 % $ 161.1   $ 103.2     56   %
Gross Margin(2) 15.7   12.2   29 % 28.7   16.5     74   %
Gross Margin % 19 % 34 % —   18 % 16   % —    
Operating Expenses 19.4   10.5   86 % 40.6   34.6     17   %
Income from Investments Accounted for by the Equity Method(1) 8.1   4.1   95 % 14.6   9.5     54   %
Net Income (Loss) $ 17.2   $ 3.0   475 % $ 14.1   $ (12.3 )   454   %
Net Income (Loss) per Share $ 0.11   $ 0.02   448 % $ 0.09   $ (0.09 )   (100 ) %
EBITDA(3) $ 13.9   $ 9.2   51 % $ 15.8   $ (1.9 )   (932 ) %
Adjusted EBITDA(3) $ 6.2   $ 6.2   — % $ 8.9   $ 2.6     242   %

(1
)
T
his includes income primarily from our Cummins Westport Inc. (“CWI”)
and
Minda Westport
Technologies Limited
joint ventures.

(2
)
Includes a
$
7
.7
million insurance re
covery in 2Q20
and a net
$2.3 million charge in 1H20 for field service
camp
aign concerning a Pres
s
ure Rel
ief Device.

(
3
)
EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures
.

Revenues in 2Q21 increased 135% to $84.7 million in the three months ended June 30, 2021, resulting from the recovery from the impact of COVID-19 across all of our businesses.

WFS reported a net income of $17.2 million for the quarter ended June 30, 2021, compared to net income of $3.0 million for the same quarter last year. The $14.2 million increase in earnings was driven primarily from higher sales volumes in the current period, $3.7 million increased in earnings from CWI, a $5.9 million purchase gain recorded in the connection with the acquisition of Stako, an $8.9 million tax recovery recognized for a COVID-19 tax relief ruling from the government of Italy. After the completion of the marketed public offering on June 8, 2021, cash and cash equivalents increased by $101.0 million to $160.7 million as of June 30, 2021, compared to $59.7 million as of March 31, 2021.

WFS generated $6.2 million Adjusted EBITDA during 2Q21 compared to $6.2 million. Adjusted EBITDA for the same period in 2020. The Adjusted EBITDA in the second quarter of 2020 included a $7.7 million insurance recovery. Adjusted EBITDA increased by $7.7 million mainly due to higher sales as we continue to recover from the impact of COVID-19 and our business continues to grow as we serve global markets with clean, affordable solutions.

Segment Information

SEGMENT RESULTS Three months ended June 30, 2021
  Revenue   Operating
income (loss) 		    Depreciation
&
amortization 		  Equity
income (loss)
OEM $ 53.1     $ (3.4 )     $ 2.0     $ 0.1    
IAM 31.6     1.1       1.6     —    
Corporate —     (1.4 )     0.1     8.0    
CWI – 50% 45.1     8.9       —     —    
Total segment 129.8     5.2       3.7     8.1    
Less: CWI – 50% (45.1 )   (8.9 )     —     —    
Total Consolidated $ 84.7     $ (3.7 )     $ 3.7     $ 8.1    

SEGMENT RESULTS Three months ended June 30, 2020
  Revenue   Operating
income (loss) 		    Depreciation
&
amortization 		  Equity
income (loss)
OEM $ 19.1     $ 1.1       $ 2.1     $ (0.1 )  
IAM 16.9     (1.2 )     1.2     —    
Corporate —     1.8       0.1     4.2    
CWI – 50% 33.2     5.3       —     —    
Total segment 69.2     7.0       3.4     4.1    
Less: CWI – 50% (33.2 )   (5.3 )     —     —    
Total Consolidated $ 36.0     $ 1.7       $ 3.4     $ 4.1    

Original Equipment Manufacturer Segment

Revenue for the three and six months ended June 30, 2021 was $53.1 million and $95.8 million, respectively, compared with $19.1 million and $53.4 million for the three and six months ended June 30, 2020. Revenue for the OEM business segment increased by $34.0 million and $42.4 million, respectively. The increase during the current quarter was mainly due to the recovery of light-duty OEM sales volumes, an increase in sales volumes of HPDI product and higher engineering service revenue during the current quarter. The impact of COVID-19 was significant in the prior year period, which was impacted by plant shutdowns combined with lower light-duty OEM sales to German and Russian OEMs. We expect to see continued growth in the heavy-duty business and improvements in the light-duty OEM business in the second half of the year.

Independent Aftermarket Segment

Revenue for the three and six months ended June 30, 2021, was $31.6 million and $65.3 million, respectively, compared with $16.9 million and $49.8 million for the three and six months ended June 30, 2020. Revenue for the IAM business segment increased by $14.7 million and $15.5 million, respectively, mainly due to the recovery of sales volumes during the current quarter as compared to the COVID-19 related shutdowns in the second quarter of 2020. Continued improvement in the market demand for our aftermarket products is expected in the second half of the year, but our revenue outlook is tempered by the ongoing global shortage of semiconductors which could impact our IAM business.

CUMMINS WESTPORT INC.

Revenue for the three and six months ended June 30, 2021 for the Cummins Westport Inc. (“CWI”) joint venture, was $90.2 million and $172.5 million, compared to $66.4 million and $143.1 million for the three and six months ended June 30, 2020, respectively. Unit sales for the three and six months ended June 30, 2021, were 2,005 and 3,878 compared to 1,352 and 2,865 for the three and six months ended June 30, 2020. The increase in unit sales in the three months ended June 30, 2021, is a result of a return to normal operating conditions following disruptions due to the COVID-19 pandemic in the second quarter of 2020. The six months ended June 30, 2021 unit sales were higher compared to the six months ended June 30, 2020, reflecting the impact of OEM factory shutdowns in April and May 2020 in response to the COVID-19 pandemic. Parts revenue for CWI increased to $28.0 million for the three months ended June 30, 2021, from $24.9 million for the three months ended June 30, 2020. Parts revenue for the six months ended June 30, 2021 was consistent compared to the prior-year period.

CUMMINS WESTPORT HIGHLIGHTS      
    Over /
(Under)
% 		  Over /
(Under)
%
($ in millions, except unit amounts) 2Q21 2Q20 1H21 1H20
Units 2,005   1,352   48   % 3,878   2,865   35   %
Revenue $ 90.2   $ 66.4   36   % $ 172.5   $ 143.1   21   %
Gross Margin 22.3   18.2   23   % 43.4   39.8   9   %
Gross Margin % 25 % 27 % —     25 % 28 % —    
Operating Expenses 4.5   7.5   (40 ) % 8.4   15.7   (47 ) %
Operating Income $ 17.8   $ 10.7   67   % $ 34.9   $ 24.1   45   %
WFS 50% Interest 7.9   4.2   89   % 14.4   9.5   51   %

FINANCIAL STATEMENTS & MANAGEMENT’S DISCUSSION AND ANALYSIS

To view WFS financials for the second quarter ended June 30th, 2021, please visit https://investors.wfsinc.com/financials/

LIVE CONFERENCE CALL & WEBCAST

WFS has scheduled a conference call for Friday, August 6th, 2021, at 7:00 am Pacific Time (10:00 am Eastern Time) to discuss these results. To access the conference call by telephone, please dial 1-800-319-4610 (Canada & USA toll-free) or 604-638-5340. The live webcast of the conference call can be accessed through the WFS website at https://investors.wfsinc.com/

REPLAY CONFERENCE CALL & WEBCAST

To access the conference call replay, please dial 1-800-319-6413 (Canada & USA toll-free) or 1-604-638-9010 using the passcode 6662. The telephone replay will be available until August 13th, 2021. Shortly after the conference call, the webcast will be archived on the Westport Fuel Systems website and replay will be available in streaming audio and a downloadable MP3 file.

About Westport Fuel Systems

Westport Fuel Systems is driving innovation to power a cleaner tomorrow. The company is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry. Westport Fuel Systems’ technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, the company serves customers in more than 70 countries with leading global transportation brands. For more information, visit www.wfsinc.com.

Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding revenue and cash usage expectations, future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen), the impact of COVID-19 and ongoing semiconductor shortages on our business, the demand for our products, the future success of our business and technology strategies, intentions of partners and potential customers, the performance and competitiveness of Westport Fuel Systems’ products and expansion of product coverage, future market opportunities, speed of adoption of natural gas for transportation and terms and timing of future agreements as well as Westport Fuel Systems management’s response to any of the aforementioned factors. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, access to required semiconductors, solvency, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint ventures, the availability and price of natural gas, global government stimulus packages and new environmental regulations, the acceptance of and shift to natural gas vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, the effects and duration of COVID-19 and the ongoing semiconductor shortage as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.

Contact Information
Christine Marks
Investor Relations
Westport Fuel Systems
T: +1 604-718-2046

GAAP and NON-GAAP FINANCIAL MEASURES

Management reviews the operational progress of its business units and investment programs over successive periods through the analysis of net income, EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income or loss from continuing operations before income taxes adjusted for interest expense (net), depreciation and amortization. Westport Fuel Systems defines Adjusted EBITDA as EBITDA from continuing operations excluding expenses for stock-based compensation, unrealized foreign exchange gain or loss, and non-cash and other adjustments. Management uses Adjusted EBITDA as a long-term indicator of operational performance since it ties closely to the business units’ ability to generate sustained cash flow and such information may not be appropriate for other purposes.  Adjusted EBITDA includes the company’s share of income from joint ventures.

The terms EBITDA and Adjusted EBITDA are not defined under U.S. generally accepted accounting principles (“U.S. GAAP“) and are not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as an analytical tool, and when assessing the company’s operating performance, investors should not consider EBITDA and Adjusted EBITDA in isolation, or as a substitute for net loss or other consolidated statement of operations data prepared in accordance with U.S. GAAP. Among other things, EBITDA and Adjusted EBITDA do not reflect the company’s actual cash expenditures. Other companies may calculate similar measures differently than Westport Fuel Systems, limiting their usefulness as comparative tools. The company compensates for these limitations by relying primarily on its U.S. GAAP results and using EBITDA and Adjusted EBITDA as supplemental information.

GAAP & NON-GAAP FINANCIAL MEASURES      
($ in millions) 2Q20

 3Q20

 4Q20 1Q21 2Q21
Three months ended
Net income (loss) $ 3.0      $ 0.8      $ 4.1      $ (3.1 )   $ 17.2     
           
Income tax expense (recovery) 1.6     (0.6 )   1.2     0.3     (8.1 )  
Interest expense, net 1.2     1.3     4.0     1.2     1.1    
Depreciation and amortization 3.4     3.4     3.8     3.5     3.7    
EBITDA 9.2     4.9     13.1     1.9     13.9    
           
Stock based compensation 0.6     0.9     0.3     0.1     0.5    
Unrealized foreign exchange (gain) loss (3.6 )   (2.3 )   (5.3 )   0.7     (2.3 )  
Asset impairment —     0.5     —     —     —    
Bargain purchase gain —     —     —     —     (5.9 )  
Adjusted EBITDA $ 6.2     $ 4.0     $ 8.1     $ 2.7     $ 6.2    

WESTPORT FUEL SYSTEMS INC. 
Condensed Consolidated Interim Balance Sheets (unaudited)
(Expressed in thousands of United States dollars, except share amounts)
June 30, 2021 and December 31, 2020

  June 30, 2021       December 31, 2020    
Assets      
Current assets:      
Cash and cash equivalents (including restricted cash) $ 160,711       $ 64,262    
Accounts receivable 92,656       90,467    
Inventories 69,687       51,402    
Prepaid expenses 7,974       11,767    
Short-term investment 10,983       —    
Total current assets 342,011       217,898    
Long-term investments 3,288       13,954    
Property, plant and equipment 59,931       57,507    
Operating lease right-of-use assets 31,820       27,962    
Intangible assets 10,331       11,784    
Deferred income tax assets 12,017       2,140    
Goodwill 3,287       3,397    
Other long-term assets 11,584       11,621    
Total assets $ 474,269       $ 346,263    
Liabilities and shareholders’ equity      
Current liabilities:      
Accounts payable and accrued liabilities $ 97,057       $ 84,599    
Current portion of operating lease liabilities 4,731       4,476    
Short-term debt 12,225       23,445    
Current portion of long-term debt 17,303       16,302    
Current portion of long-term royalty payable 5,657       7,451    
Current portion of warranty liability 11,375       10,749    
Total current liabilities 148,348       147,022    
Long-term operating lease liabilities 26,871       23,486    
Long-term debt 39,554       45,651    
Long-term royalty payable 3,944       8,591    
Warranty liability 7,536       8,187    
Deferred income tax liabilities 3,459       3,250    
Other long-term liabilities 6,340       6,017    
Total liabilities 236,052       242,204    
Shareholders’ equity:      
Share capital:      
Unlimited common and preferred shares, no par value      
168,801,162 (2020 – 144,069,972) common shares issued and outstanding 1,238,856       1,115,092    
Other equity instruments 7,773       7,671    
Additional paid in capital 11,516       11,516    
Accumulated deficit (991,590 )     (1,005,679 )  
Accumulated other comprehensive loss (28,338 )     (24,541 )  
Total shareholders’ equity 238,217       104,059    
Total liabilities and shareholders’ equity $ 474,269       $ 346,263    

WESTPORT FUEL SYSTEMS INC.
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (unaudited)
(Expressed in thousands of United States dollars, except share and per share amounts)  
Three and six months ended June 30, 2021 and 2020

  Three months ended June 30,   Six months ended June 30,
  2021   2020   2021   2020
Revenue $ 84,701       $ 35,964       $ 161,144       $ 103,187    
Cost of revenue and expenses:              
Cost of revenue 68,958       23,775       132,384       86,723    
Research and development 7,500       4,090       14,212       9,890    
General and administrative 9,233       6,109       18,523       12,741    
Sales and marketing 3,721       2,378       6,652       5,703    
Foreign exchange (gain) loss (2,333 )     (3,626 )     (1,602 )     3,269    
Depreciation and amortization 1,454       1,511       2,964       3,007    
Gain on sale of assets (146 )     —       (146 )     —    
  88,387       34,237       172,987       121,333    
Income (loss) from operations (3,686 )     1,727       (11,843 )     (18,146 )  
               
Income from investments accounted for by the equity method 8,063       4,121       14,640       9,488    
Interest on long-term debt and accretion on royalty payable (1,308 )     (1,467 )     (3,057 )     (3,019 )  
Bargain purchase gain from acquisition 5,856       —       5,856       —    
Interest and other income, net of bank charges 183       174       730       259    
Income (loss) before income taxes 9,108       4,555       6,326       (11,418 )  
Income tax expense (recovery) (8,121 )     1,565       (7,763 )     881    
Net income (loss) for the period 17,229       2,990       14,089       (12,299 )  
Other comprehensive income (loss):              
Cumulative translation adjustment (1,643 )     (633 )     (3,797 )     (464 )  
Comprehensive income (loss) $ 15,586       $ 2,357       $ 10,292       $ (12,763 )  
               
Income (loss) per share:              
Net income (loss) per share – basic and diluted $ 0.11       $ 0.02       $ 0.09       $ (0.09 )  
Weighted average common shares outstanding:              
Basic 153,149,575       136,564,290       150,154,552       136,496,757    
Diluted 156,791,634       146,323,733       153,796,611       136,496,757    

WESTPORT FUEL SYSTEMS INC.

Condensed Consolidated Interim Statements of Cash Flows (unaudited)
(Expressed in thousands of United States dollars)
Three and six months ended June 30, 2021 and 2020

  Three months ended June 30,   Six months ended June 30,
  2021   2020   2021   2020
Cash flows from (used in) operating activities:              
Net income (loss) for the period $ 17,229       $ 2,990       $ 14,089       $ (12,299 )  
Items not involving cash:              
Depreciation and amortization 3,703       3,402       7,176       6,771    
Stock-based compensation expense 539       617       623       1,241    
Unrealized foreign exchange (gain) loss (2,333 )     (3,626 )     (1,602 )     3,269    
Deferred income tax (9,485 )     1,458       (9,675 )     (683 )  
Income from investments accounted for by the equity method (8,063 )     (4,121 )     (14,640 )     (9,488 )  
Interest on long-term debt and accretion on royalty payable 1,308       1,467       3,057       3,019    
Change in inventory write-downs to net realizable value 124       381       322       64    
Bargain purchase gain from acquisition (5,856 )     —       (5,856 )     —    
Change in bad debt expense (74 )     214       (26 )     252    
Gain on sale of assets (146 )     —       (146 )     —    
Net cash from (used) before working capital changes (3,054 )     2,782       (6,678 )     (7,854 )  
               
Changes in non-cash operating working capital:              
Accounts receivable (11,839 )     4,042       (5,042 )     4,618    
Inventories (5,068 )     (4,329 )     (11,943 )     (8,056 )  
Prepaid and other assets 2,514       (919 )     6,356       (1,559 )  
Accounts payable and accrued liabilities 13,584       (9,623 )     10,241       (16,820 )  
Deferred revenue (3,953 )     (471 )     (3,953 )     1,030    
Warranty liability (907 )     (534 )     (287 )     9,781    
Net cash used in operating activities of continuing operations (8,723 )     (9,052 )     (11,306 )     (18,860 )  
Cash flows from (used in) investing activities:              
Purchase of property, plant and equipment (1,200 )     (1,562 )     (2,862 )     (3,186 )  
Sale of short-term investments, net 284       —       600       —    
Acquisition, net of acquired cash (5,948 )     —       (5,948 )     —    
Dividends received from joint ventures 6,395       3,420       14,273       9,243    
Net cash from investing activities of continuing operations (469 )     1,858       6,063       6,057    
Cash flows from (used in) financing activities:              
Payments under short and long-term facilities (16,194 )     (7,176 )     (39,415 )     (18,893 )  
Drawings on operating lines of credit and long-term facilities 21,393       10,996       25,998       22,066    
Payment of royalty payable (7,451 )     (5,948 )     (7,451 )     (5,948 )  
Proceeds from share issuance, net 107,922       —       120,727       —    
Net cash from (used in) financing activities 105,670       (2,128 )     99,859       (2,775 )  
Effect of foreign exchange on cash and cash equivalents 4,487       (842 )     1,833       (1,506 )  
Increase (decrease) in cash and cash equivalents 100,965       (10,164 )     96,449       (17,084 )  
Cash and cash equivalents, beginning of period (including restricted cash) 59,746       39,092       64,262       46,012    
Cash and cash equivalents, end of period (including restricted cash) $ 160,711       $ 28,928       $ 160,711       $ 28,928