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August 11, 2021 4:04 pm

Alpha and Omega Semiconductor Reports Financial Results for Fiscal Fourth Quarter and Fiscal Year Ended June 30, 2021

Alpha and Omega Semiconductor Reports Financial Results for Fiscal Fourth Quarter and Fiscal Year Ended June 30, 2021

SUNNYVALE, Calif.–(BUSINESS WIRE)–
Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL) today reported financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2021.

The results for the fiscal fourth quarter ended June 30, 2021 were as follows:

GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
	Three Months Ended
	June 30, 2021			March 31, 2021			June 30, 2020
Revenue	$	177.3		$	169.2		$	122.4
Gross Margin	34.2		%	31.1		%	23.6		%
Operating Income (Loss)	$	22.4		$	17.8		$	(1.3	)
Net Income (Loss) Attributable to AOS	$	19.5		$	16.1		$	(0.1	)
Net Income (Loss) Per Share Attributable to AOS – Diluted	$	0.71		$	0.58		$	(0.00	)

Non-GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
	Three Months Ended
	June 30, 2021			March 31, 2021			June 30, 2020
Revenue	$	177.3		$	169.2		$	122.4
Non-GAAP Gross Margin	34.9		%	31.9		%	27.5		%
Non-GAAP Operating Income	$	29.1		$	23.0		$	8.4
Non-GAAP Net Income Attributable to AOS	$	26.3		$	21.4		$	7.4
Non-GAAP Net Income Per Share Attributable to AOS – Diluted	$	0.95		$	0.77		$	0.29

The non-GAAP financial measures in the schedule above exclude the effect of share-based compensation expenses, legal costs related to government investigation and income tax effect of non-GAAP adjustments in each of the periods presented, production ramp up costs for the quarter ended June 30, 2020, as well as amortization of purchased intangible for the quarters ended June 30, 2021 and March 31, 2021. A detailed reconciliation of GAAP and non-GAAP financial measures is included at the end of this press release.

The results for the fiscal year ended June 30, 2021 were as follows:

GAAP Financial Comparison
Annually
(in millions, except percentage and per share data)
(unaudited)
	Year Ended June 30,
	2021			2020
Revenue	$	656.9		$	464.9
Gross Margin	31.1		%	22.1		%
Operating Income (Loss)	$	64.1		$	(13.9	)
Net Income (Loss) Attributable to AOS	$	58.1		$	(6.6	)
Net Income (Loss) Per Share attributable to AOS – Diluted	$	2.13		$	(0.27	)

Non-GAAP Financial Comparison
Annually
(in millions, except percentage and per share data)
(unaudited)
	Year Ended June 30,
	2021			2020
Revenue	$	656.9		$	464.9
Non-GAAP Gross Margin	31.9		%	27.9		%
Non-GAAP Operating Income	$	86.0		$	27.3
Non-GAAP Net Income Attributable to AOS	$	79.9		$	22.5
Non-GAAP Net Income Per Share Attributable to AOS – Diluted	$	2.93		$	0.88

The non-GAAP financial measures in the schedule above exclude the effect of share-based compensation expenses, legal costs related to government investigation, production ramp up costs related to joint venture, and income tax effect of non-GAAP adjustments for fiscal years ended June 30, 2021 and 2020, as well as amortization of purchased intangible for fiscal year ended June 30, 2021 and pre-production expenses and impairment of privately-held investment for fiscal year ended June 30, 2020. A detailed reconciliation of GAAP and non-GAAP financial measures is included at the end of this press release.

Financial Results for Fiscal Q4 Ended June 30, 2021

Revenue was $177.3 million, an increase of 4.8% quarter-over-quarter and an increase of 44.9% from the same quarter last year.
GAAP gross margin was 34.2%, up from 31.1% in the prior quarter and 23.6% year-over-year.
Non-GAAP gross margin was 34.9%, up from 31.9% in the prior quarter and up from 27.5% from the same quarter last year.
GAAP operating expenses were $38.2 million, up from $34.9 million in the prior quarter and up from $30.3 million from the same quarter last year.
Non-GAAP operating expenses were $32.8 million, an increase of $1.9 million from last quarter and an increase of $7.5 million from the same quarter last year.
GAAP operating income was $22.4 million, as compared to $17.8 million in the prior quarter and a loss of $1.3 million from the same quarter last year.
Non-GAAP operating income was $29.1 million as compared to $23.0 million for the prior quarter and $8.4 million for the same quarter last year.
GAAP net income per share attributable to AOS was $0.71, compared to $0.58 for the prior quarter and $0.00 earnings per share for the same quarter last year.
Non-GAAP earnings per share attributable to AOS was $0.95, compared to $0.77 for the prior quarter and $0.29 for the same quarter last year.
Consolidated cash flow provided by operating activities was $44.2 million, compared to $38.6 million in prior quarter. Operating cash flow provided by AOS alone (excluding the JV Company) was $32.6 million, compared to $33.3 million in the prior quarter.
The Company closed the quarter with $202.4 million of cash and cash equivalents, including $37.5 million cash balance at the JV Company.

AOS Chairman and Chief Executive Officer Dr. Mike Chang commented, “Our fourth fiscal quarter continued the momentum we saw throughout the year. We delivered strong year-over-year performance in each of our market segments with record revenue and significantly improved profitability. We also benefited from solid end market demand, enabling us to optimize our product mix. Our fourth quarter results demonstrated the strength of our market diversification strategy, expanding product portfolio, deepening customer relationships and growing production scale. Our strong fourth quarter performance capped an outstanding fiscal year 2021, where we delivered 41% revenue growth year-over-year, expanded both gross margins and operating margins, and increased net income substantially. Importantly, we had previously set a target of $600 million in annual revenue for calendar year 2021, and I am pleased to report that we achieved $657 million in fiscal year 2021 and successfully surpassed that target ahead of plan.”

Dr. Chang continued, “As we enter fiscal year 2022, there are plenty of opportunities and much work to be done to continue to grow and scale our business. I am confident that we have the right leadership and the right products in place to capitalize on these opportunities. Our mission to be a trusted technology partner and a global supplier of a broad portfolio of power semiconductors remains on track. Looking ahead, our goal is to grow our annual revenue to $1 billion in the next few years.”

Business Outlook for Fiscal Q1 Ending September 30, 2021

The following statements are based on management’s current expectations. These statements are forward-looking, and actual results may differ materially. AOS undertakes no obligation to update these statements.

Revenue is expected to be $180 million plus or minus $3 million.
Gross margin is expected to be 33.7% plus or minus 1%. Non-GAAP gross margin is expected to be 34.5% plus or minus 1%. Note that non-GAAP gross margin excludes $0.6 million of estimated share-based compensation charges and $0.8 million of amortization of purchased intangible.
GAAP operating expenses are expected to be in the range of $37.7 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $33.5 million plus or minus $1 million. Non-GAAP operating expenses exclude $0.5 million of estimated legal expenses related to the government investigation and $3.9 million of estimated share-based compensation charges.
Tax expense is expected to be $1.0 million to $1.4 million.
Loss attributable to noncontrolling interest is expected to be around $0.5 million.

Conference Call and Webcast

AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2021 today, August 11, 2021 at 2:00 p.m. PT / 5:00 p.m. ET. To listen to the live conference call, please dial 877-683-1095 (or 647-689-5445 if dialing from outside the United States and Canada). The conference ID number is 8255364. A live webcast of the call will also be available in the “Events & Presentations” section of the company’s investor relations website, http://investor.aosmd.com/. The webcast replay will be available for seven days after the live call on the same website. In addition, a copy of the script of management’s prepared remarks and a live webcast of the call will also be available in the “Events & Presentations” section of the company’s investor relations website, http://investor.aosmd.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to growth opportunities and new markets, targeted annual revenue in future years, opportunities for growth and sales and our ability to capitalize on these opportunities, projected amount of revenue, gross margin, operating income (loss), income tax expenses, net income (loss), noncontrolling interest, and share-based compensation expenses, non-GAAP gross margin, non-GAAP operating expenses, tax expenses, and non-GAAP loss attributable to noncontrolling interest, our objectives to achieve long-term success, and other information under the section entitled “Business Outlook for Fiscal Q1 Ending September 30, 2021”. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business; our ability to successfully operate our joint venture in China; our ability to develop and succeed in the digital power business; difficulties and challenges in executing our diversification strategy into different market segments; new tariffs on goods from China; ordering pattern from distributors and seasonality; changes in regulatory environment and government investigation; our ability to introduce or develop new and enhanced products that achieve market acceptance; decline of PC markets; the actual product performance in volume production; the quality and reliability of our product, our ability to achieve design wins; the general business and economic conditions; the state of semiconductor industry and seasonality of our markets; our ability to maintain factory utilization at a desirable level; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 to be filed by AOS with the SEC and other periodic reports we filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law.

Use of Non-GAAP Financial Measures

To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including non-GAAP gross profit, gross margin, operating expenses, operating income, earnings per share attributable to AOS, diluted earnings per share (“EPS”) and EBITDAS. These supplemental measures exclude, among other items, share-based compensation expenses, legal and profession fees related to government investigation, amortization of purchased intangible, and impairment of privately-held investment, as well as production ramp up costs related to the JV Company. We also disclose certain non-GAAP financial measures in our guidance for the next quarter, including non-GAAP gross margin, operating expenses and loss attributable to noncontrolling interest. We believe that these historical and forecast non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP net income (loss) or non-GAAP operating expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. In addition, we included amount of income tax effect of non-GAAP adjustments in the non-GAAP net income of reconciliation table for all periods presented as the management believes that such non-GAAP presentation provides useful information to investors, even though the amounts are not significant. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures both in the text in this press release and in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer and global supplier of a broad range of power semiconductors, including a wide portfolio of Power MOSFET, IGBT, IPM, TVS, HVIC, GaN/SiC, Power IC and Digital Power products. AOS has developed extensive intellectual property and technical knowledge that encompasses the latest advancements in the power semiconductor industry, which enables us to introduce innovative products to address the increasingly complex power requirements of advanced electronics. AOS differentiates itself by integrating its Discrete and IC semiconductor process technology, product design, and advanced packaging know-how to develop high performance power management solutions. AOS’ portfolio of products targets high-volume applications, including personal and portable computers, graphic cards, flat panel TVs, home appliances, smart phones, battery packs, quick chargers, home appliances, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. For more information, please visit www.aosmd.com.

The following unaudited consolidated financial statements are prepared in accordance with U.S. GAAP.

Alpha and Omega Semiconductor Limited
Condensed Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)

	Three Months Ended										Fiscal Year Ended
	June 30, 2021			March 31, 2021			June 30, 2020				June 30, 2021			June 30, 2020

Revenue	$	177,309		$	169,212		$	122,395			$	656,902		$	464,909
Cost of goods sold	116,729			116,521			93,461				452,359			362,178
Gross profit	60,580			52,691			28,934				204,543			102,731
Gross margin	34.2		%	31.1		%	23.6		%		31.1		%	22.1		%

Operating expenses:
Research and development	17,282			15,557			13,168				62,953			51,252
Selling, general and administrative	20,935			19,338			17,093				77,514			64,816
Impairment of privately-held investment	—			—			—				—			600
Total operating expenses	38,217			34,895			30,261				140,467			116,668
Operating income (loss)	22,363			17,796			(1,327		)		64,076			(13,937		)

Interest expense and other income (loss), net	(1,107		)	(1,815		)	(228		)		(3,852		)	(3,972		)
Income (loss) before income taxes	21,256			15,981			(1,555		)		60,224			(17,909		)

Income tax expense	1,241			1,014			385				3,935			348
Net income (loss) including noncontrolling interest	20,015			14,967			(1,940		)		56,289			(18,257		)
Net income (loss) attributable to noncontrolling interest	476			(1,133		)	(1,835		)		(1,827		)	(11,661		)
Net income (loss) attributable to Alpha and Omega Semiconductor Limited	$	19,539		$	16,100		$	(105	)		$	58,116		$	(6,596	)

Net income (loss) per common share attributable to Alpha and Omega Semiconductor Limited
Basic	$	0.74		$	0.62		$ (0.00			)	$	2.25		$	(0.27	)
Diluted	$	0.71		$	0.58		$ (0.00			)	$	2.13		$	(0.27	)

Weighted average number of common share attributable to Alpha and Omega Semiconductor Limited used to compute net income (loss) per share:
Basic	26,251			25,882			25,227				25,786			24,840
Diluted	27,705			27,716			25,227				27,272			24,840

Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)
	June 30, 2021			June 30, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	202,412		$	158,536
Restricted cash	233			2,190
Accounts receivable, net	35,789			13,272
Inventories	154,293			135,528
Other current assets	14,595			8,807
Total current assets	407,322			318,333
Property, plant and equipment, net	436,977			412,340
Operating lease right-of-use assets, net	34,660			32,948
Intangible assets, net	13,410			16,770
Deferred income tax assets	5,167			4,766
Restricted cash – long-term	2,168			1,978
Other long-term assets	18,869			5,804
Total assets	$	918,573		$	792,939
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	80,699		$	86,181
Accrued liabilities	69,494			54,986
Income taxes payable	2,604			1,360
Short-term debt	58,030			30,114
Finance lease liabilities	16,724			15,258
Operating lease liabilities	5,679			4,159
Total current liabilities	233,230			192,058
Long-term debt	77,990			99,775
Income taxes payable – long-term	1,319			903
Deferred income tax liabilities	2,448			496
Finance lease liabilities – long-term	12,698			26,842
Operating lease liabilities – long-term	30,440			30,254
Other long-term liabilities	44,123			10,723
Total liabilities	402,248			361,051
Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2021 and 2020	—			—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 32,975 shares and 26,350 shares, respectively at June 30, 2021 and 31,944 shares and 25,305 shares, respectively at June 30, 2020	66			64
Treasury shares at cost; 6,625 shares at June 30, 2021 and 6,639 shares at June 30, 2020	(66,064		)	(66,184		)
Additional paid-in capital	259,993			246,103
Accumulated other comprehensive income (loss)	2,315			(5,127		)
Retained earnings	176,895			118,833
Total Alpha and Omega Semiconductor Limited shareholders’ equity	373,205			293,689
Noncontrolling interest	143,120			138,199
Total equity	516,325			431,888
Total liabilities and equity	$	918,573		$	792,939

Supplemental disclosures of financial information:
(in thousands)

	As of June 30, 2021							As of June 30, 2020
	AOS		CQJV			Consolidated		AOS		CQJV			Consolidated
Cash and cash equivalents	$	164,933	$	37,479		$	202,412	$	110,346	$	48,190		$	158,536
Bank borrowings liabilities	$	24,307	$	141,135	*	$	165,442	$	32,594	$	139,395	*	$	171,989
Inventory	$	100,246	$	54,047		$	154,293	$	97,593	$	37,935		$	135,528
Property, plant and equipment, net	$	174,507	$	262,470		$	436,977	$	162,833	$	249,507		$	412,340

* AOS is not a guarantor of CQJV’s (Chongqing Joint Venture) debts.

	Three Months Ended June 30, 2021							Three Months Ended March 31, 2021							Three Months Ended June 30, 2020
	AOS		CQJV			Consolidated		AOS		CQJV			Consolidated		AOS		CQJV			Consolidated
Net cash provided by operating activities	$	32,646	$	11,574		$	44,220	$	33,313	$	5,278		$	38,591	$	20,167	$	20,125		$	40,292
Purchase of property and equipment, net of government grant	$	25,072	$	7,087		$	32,159	$	10,071	$	5,702		$	15,773	$	8,972	$	4,222		$	13,194
EBITDAS	$	33,602	$	7,780	^**	$	40,906	$	30,610	$	4,503	^**	$	36,246	$	11,979	$	1,078	**	$	14,892

	Year Ended June 30, 2021							Year Ended June 30, 2020
	AOS		CQJV			Consolidated		AOS		CQJV				Consolidated
Net cash provided by operating activities	$	114,338	$	14,406		$	128,744	$	57,957	$	4,358			$	62,315
Purchase of property and equipment, net of government grant	$	49,985	$	22,715		$	72,700	$	42,389	$	20,009			$	62,398
EBITDAS	$	111,698	$	22,843	^**	$	136,368	$	44,817	$	(4,439	)	**	$	52,039

** CQJV EBITDAS includes amounts attributable to noncontrolling interest.


Alpha and Omega Semiconductor Limited
Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures
(in thousands, except percentages and per share data)
(unaudited)

	Three Months Ended									Fiscal Year Ended
	June 30, 2021			March 31, 2021			June 30, 2020			June 30, 2021			June 30, 2020

GAAP gross profit	$	60,580		$	52,691		$	28,934		$	204,543		$	102,731
Share-based compensation	561			427			333			1,756			1,530
Amortization of purchased intangible	812			812			—			3,247			—
Production ramp up costs related to joint venture	—			—			4,432			275			25,461
Non-GAAP gross profit	$	61,953		$	53,930		$	33,699		$	209,821		$	129,722
Non-GAAP gross margin as a % of revenue	34.9		%	31.9		%	27.5		%	31.9		%	27.9		%

GAAP operating expense	$	38,217		$	34,895		$	30,261		$	140,467		$	116,668
Share-based compensation	4,838			3,398			2,389			13,568			8,924
Legal costs related to government investigation	553			563			2,551			3,066			4,684
Impairment of privately-held investment	—			—			—			—			600
Non-GAAP operating expense	$	32,826		$	30,934		$	25,321		$	123,833		$	102,460

GAAP operating income (loss)	$	22,363		$	17,796		$	(1,327	)	$	64,076		$	(13,937	)
Share-based compensation	5,399			3,825			2,722			15,324			10,454
Amortization of purchased intangible	812			812			—			3,247			—
Production ramp up costs related to joint venture	—			—			4,432			275			25,461
Legal costs related to government investigation	553			563			2,551			3,066			4,684
Impairment of privately-held investment	—			—			—			—			600
Non-GAAP operating income	$	29,127		$	22,996		$	8,378		$	85,988		$	27,262
Non-GAAP operating margin as a % of revenue	16.4		%	13.6		%	6.8		%	13.1		%	5.9		%

GAAP net income (loss) attributable to AOS	$	19,539		$	16,100		$	(105	)	$	58,116		$	(6,596	)
Share-based compensation	5,399			3,825			2,722			15,324			10,454
Amortization of purchased intangible	812			812			—			3,247			—
Pre-production expenses related to joint venture	—			—			—			—			24
Production ramp up costs related to joint venture	—			—			2,224			135			13,356
Legal costs related to government investigation	553			563			2,551			3,066			4,684
Impairment of privately-held investment	—			—			—			—			600
Income tax effect of non-GAAP adjustments	(2		)	64			(4		)	53			(11		)
Non-GAAP net income attributable to AOS	$	26,301		$	21,364		$	7,388		$	79,941		$	22,511
Non-GAAP net margin attributable to AOS as a % of revenue	14.8		%	12.6		%	6.0		%	12.2		%	4.8		%

GAAP net income (loss) attributable to AOS	$	19,539		$	16,100		$	(105	)	$	58,116		$	(6,596	)
Share-based compensation	5,399			3,825			2,722			15,324			10,454
Amortization and depreciation	13,251			13,745			11,552			52,685			45,090
Interest expense (income), net	1,476			1,562			338			6,308			2,743
Income tax expense (income)	1,241			1,014			385			3,935			348
EBITDAS	$	40,906		$	36,246		$	14,892		$	136,368		$	52,039

GAAP diluted net income (loss) per share attributable to AOS	$	0.71		$	0.58		$	(0.00	)	$	2.13		$	(0.27	)
Share-based compensation	0.19			0.14			0.10			0.56			0.41
Pre-production expenses related to joint venture	—			—			—			—			0.00
Production ramp up costs related to joint venture	—			—			0.09			0.01			0.54
Legal costs related to government investigation	0.02			0.02			0.10			0.11			0.18
Amortization of purchased intangible	0.03			0.03			—			0.12			—
Impairment of privately-held investment	—			—			—			—			0.02
Income tax effect of non-GAAP adjustments	0.00			0.00			0.00			0.00			0.00
Non-GAAP diluted net income per share attributable to AOS	$	0.95		$	0.77		$	0.29		$	2.93		$	0.88



Shares used to compute GAAP diluted net income (loss) per share	27,705			27,716			25,227			27,272			24,840
Shares used to compute Non-GAAP diluted net income per share	27,705			27,716			25,895			27,272			25,627

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005718/en/

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August 11, 2021 4:04 pm

Teknova Reports Second Quarter 2021 Financial Results

—$8.3 million in total revenue, up 38% year-over-year—

—Strong cash position of $108.0 million supports investment in long-term growth strategy—

HOLLISTER, Calif., Aug. 11, 2021 (GLOBE NEWSWIRE) — Alpha Teknova, Inc. (“Teknova”) (Nasdaq: TKNO), a leading provider of critical reagents for the development and production of biopharmaceutical products including drug therapies, novel vaccines, and molecular diagnostics, today announced financial results for the second quarter ended June 30, 2021.

“We are pleased with our performance during the second quarter of 2021, as we continued to see strong demand across our Lab Essentials and Clinical Solutions product categories,” said Stephen Gunstream, President and CEO of Teknova. “Together with the successful completion of our initial public offering, our growing revenue supports our long-term strategy by fueling investments to increase production capacity and to extend our commercial and R&D capabilities in the near term.”

Corporate and Financial Updates

Second quarter 2021 revenue of $8.3 million, up 38% as compared to $6.0 million in the second quarter of 2020 and up 41% as compared to $5.9 million in the second quarter of 2020, when Sample Transport medium revenue is excluded
Completed initial public offering, raising approximately $99.1 million in proceeds, after deducting underwriting discounts and commissions, and other offering expenses
Strengthened Board with the independent Director appointments of life science veterans Robert McNamara, Brett Robertson, and Alexander Vos
Began construction on new state-of-the art GMP manufacturing facility in Hollister, CA
Established our Scientific Affairs team to engage with scientists active in cell and gene therapy research and development

Revenue for the Second Quarter and Year-to-Date

$000s	Three months ended June 30				Six months ended June 30
Unaudited	2021	2020	*YoY Chg*		2021	2020	*YoY Chg*

Lab Essentials	6,456	4,430	46	%	13,246	9,679	37	%
Clinical Solutions	1,593	1,208	32	%	2,664	1,787	49	%
Sample Transport	37	174	(78	%)	961	174	453	%
Other	227	232	(2	%)	520	516	1	%
Total Revenue	8,313	6,044	38	%	17,391	12,156	43	%

Second Quarter 2021 Financial Highlights

Total revenues for the second quarter 2021 were $8.3 million, a 38% increase from $6.0 million in the second quarter 2020. Excluding Sample Transport medium, revenues for the second quarter 2021 were $8.3 million, a 41% increase from $5.9 million in the second quarter 2020.

Gross profit for the second quarter 2021 was $3.4 million, compared to $3.5 million in the second quarter 2020. Gross margin for the second quarter 2021 was 40.4% of revenue, compared to 57.4% of revenue in the second quarter of 2020. Cost of sales in the second quarter 2021 included a $0.7 million one-time reserve related to excess Sample Transport medium inventory.

Operating expenses for the second quarter 2021 were $5.9 million compared to $2.8 million in the second quarter 2020. The increase was driven by increased headcount in research and development, sales and marketing, and general and administrative functions to support our new product development efforts, develop our commercial presence and increase customer support, and build the infrastructure necessary to support our growth strategy.

Net loss attributable to common stockholders for the second quarter 2021 was $2.3 million, or $0.52 per share, compared to net income attributable to common stockholders of $0.1 million, or $0.02 per share, for the second quarter 2020.

Adjusted EBITDA for the second quarter 2021 was negative $1.5 million, compared to $1.2 million for the second quarter 2020.

As of June 30, 2021, the Company had $108.0 million in cash and cash equivalents.

Conference Call and Webcast

Teknova will host a webcast and conference call today, Wednesday, August 11, beginning at 4:30 p.m. ET. Participants may access the live webcast on the Investor Relations section of the Teknova website and at this link: https://edge.media-server.com/mmc/p/avgvftny. The conference call can be accessed by dialing 877-312-1451 for domestic callers and 470-495-9521 for international callers. The conference ID number is 2756899. A replay will be available for 30 days on the Investor Relations section of the Teknova website.

About Teknova

Teknova is expediting clinical breakthroughs in the life sciences by providing custom products and reagents for bioprocessing, bioproduction, and molecular diagnostics. With a focus on agility and customization, Teknova delivers research-grade and GMP products including cell culture media and supplements, protein and nucleic acid purification buffers, and molecular biology reagents for a multitude of established and emerging applications, including cell and gene therapy, mRNA therapeutics, genomics, and synthetic biology. Teknova’s proprietary processes enable the manufacture and delivery of high quality, custom, made-to-order products on short turnaround times and at scale across all stages of development, including commercialization.

Non-GAAP Financial Measures

This press release contains financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Teknova uses the following non-GAAP financial measures in assessing the performance of our business and the effectiveness of our business strategies: (a) Adjusted EBITDA and (b) Adjusted Free Cash Flow.

Teknova defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for income taxes, depreciation expense, amortization of intangible assets and stock-based compensation expenses. Adjusted EBITDA reflects further adjustments to eliminate the impact of certain items, including certain non-cash and other items that we do not consider representative of our ongoing operating performance.

Teknova defines Adjusted Free Cash Flow as Adjusted EBITDA less capital expenditures.

Teknova presents Adjusted EBITDA and Adjusted Free Cash Flow in this press release because Teknova believes analysts, investors, and other interested parties frequently use these measures to evaluate companies in our industry and that they facilitate comparisons on a consistent basis across reporting periods. Further, Teknova believes they are helpful in highlighting trends in our operating results because they exclude items that are not indicative of our core operating performance.

Adjusted EBITDA and Adjusted Free Cash Flow have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Teknova may in the future incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. In particular, Teknova expects to incur meaningful share-based compensation expense in the future. Other limitations include the following, which Adjusted EBITDA and Adjusted Free Cash Flow do not reflect:

all expenditures or future requirements for capital expenditures or contractual commitments;
changes in our working capital needs;
provision for income taxes, which may be a necessary element of our costs and ability to operate;
the costs of replacing the assets being depreciated, which will often have to be replaced in the future;
the non-cash component of employee compensation expense; and
the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations.

In addition, Adjusted EBITDA and Adjusted Free Cash Flow may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to our long-term growth strategy, demand for our products, expansion of our production capacity and commercial and R&D capabilities. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our cash flows and revenue growth rate; our supply chain, sourcing, manufacturing and warehousing; inventory management; risks related to global economic and marketplace uncertainties related to the impact of the COVID-19 pandemic; reliance on a limited number of customers for a high percentage of our revenue; acquisitions of other companies and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), including in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 25, 2021, all of which you may obtain for free on the SEC’s website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

ALPHA TEKNOVA, INC.

Condensed Balance Sheets

(unaudited)

(in thousands, except share and per share data)

	As of June 30, 2021			As of December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	108,022		$	3,315
Short-term investments		—			1,811
Accounts receivable, net		4,058			4,623
Inventories		3,880			3,582
Income taxes receivable		1,638			1,417
Prepaid expenses and other current assets		719			1,666
Total current assets		118,317			16,414
Property, plant and equipment, net		18,326			10,008
Goodwill		16,613			16,613
Intangible assets, net		19,278			19,852
Other non-current assets		31			24
Total assets	$	172,565		$	62,911
LIABILITIES, CONVERTIBLE AND REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,640		$	1,635
Accrued liabilities		3,301			2,327
Total current liabilities		5,941			3,962
Deferred tax liabilities		5,242			5,990
Other accrued liabilities		312			350
Long term debt		11,782			—
Deferred rent		253			204
Total liabilities		23,530			10,506

Convertible and redeemable preferred stock		—			35,638
Stockholders’ equity:
Common stock		—			—
Additional paid-in capital		149,675			14,495
(Accumulated deficit) retained earnings		(640	)		2,265
Accumulated other comprehensive income		—			7
Total stockholders’ equity		149,035			16,767
Total liabilities, convertible and redeemable preferred stock and stockholders’ equity	$	172,565		$	62,911

ALPHA TEKNOVA, INC.

Condensed Statements of Operations and Comprehensive Income (Loss)

(unaudited)

(in thousands, except share and per share data)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
Revenue	$	8,313		$	6,044		$	17,391		$	12,156
Cost of sales		4,959			2,575			9,012			5,058
Gross profit		3,354			3,469			8,379			7,098
Operating expenses:
Research and development		851			341			1,548			667
Sales and marketing		904			481			1,609			831
General and administrative		3,838			1,656			8,002			3,310
Amortization of intangible assets		287			287			574			574
Total operating expenses		5,880			2,765			11,733			5,382
(Loss) income from operations		(2,526	)		704			(3,354	)		1,716
Other income (expenses), net
Interest income (expense), net		(304	)		23			(296	)		55
Other expense, net		(3	)		(4	)		(2	)		(25	)
Total other income (expenses), net		(307	)		19			(298	)		30
(Loss) income before income taxes		(2,833	)		723			(3,652	)		1,746
(Benefit from) provision for income taxes		(583	)		211			(747	)		286
Net (loss) income		(2,250	)		512			(2,905	)		1,460
Less: undistributed income attributable to preferred stockholders		—			(425	)		—			(1,211	)
Net (loss) income attributable to common stockholders	$	(2,250	)	$	87		$	(2,905	)	$	249
Net (loss) income per share attributable to common stockholders
Basic	$	(0.52	)	$	0.02		$	(0.73	)	$	0.07
Diluted	$	(0.52	)	$	0.02		$	(0.73	)	$	0.07
Weighted average shares used in computing net (loss) income per share attributable to common stockholders
Basic	4,328,222			3,599,232			3,965,741			3,599,232
Diluted	4,328,222			3,636,724			3,965,741			3,636,724

ALPHA TEKNOVA, INC.

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(unaudited)

(in thousands)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
Net (loss) income – as reported	$	(2,250	)	$	512		$	(2,905	)	$	1,460
Add back:
Interest expense (income), net		304			(23	)		296			(55	)
(Benefit from) provision for income taxes		(583	)		211			(747	)		286
Depreciation expense		413			189			778			358
Amortization of intangible assets		287			287			574			574
EBITDA	$	(1,829	)	$	1,176		$	(2,004	)	$	2,623
Other and one-time expenses:
Stock-based compensation expense		302			—			485			—
Adjusted EBITDA	$	(1,527	)	$	1,176		$	(1,519	)	$	2,623
Less: capital expenditures		(4,674	)		(584	)		(8,558	)		(953	)
Adjusted Free Cash Flow	$	(6,201	)	$	592		$	(10,077	)	$	1,670

Investor Contacts
Matt Lowell
Chief Financial Officer
[email protected]
+1 831-216-1830

Sara Michelmore
MacDougall
[email protected]
+1 781-235-3060

Media Contact
Matthew Corcoran
MacDougall
[email protected]
+1 617-866-7350

August 11, 2021 4:04 pm

Lordstown Motors Reports Second Quarter 2021 Financial Results

LORDSTOWN, Ohio, Aug. 11, 2021 (GLOBE NEWSWIRE) — Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors”), a leader in electric light duty trucks focused on the commercial fleet market, today released its second quarter 2021 financial results and provided a business outlook.

Key Business Highlights

Reported second quarter 2021 net loss of $108 million, capex of $121 million and cash of $366 million on June 30, 2021.
Beginning limited vehicle production in late September.
Lordstown plant is production ready with retooling of stamping, assembly, body, and paint shops completed.
Battery line is fully commissioned and first electric hub motor line has been site commissioned and is currently being installed.
Strengthened leadership is unlocking the value of Lordstown Motors by introducing five strategic priorities to expand go forward commercial strategy.
Recently secured an equity purchase agreement for access to $400 million in capital; due diligence underway with multiple strategic partners that come with potential capital infusion as well as pursuing external capital sources including debt and equity-linked securities.

Executive Commentary

“In the second quarter, we continued to make great strides towards our objective of delivering a revolutionary electric pickup truck,” stated Lordstown Motors’ Executive Chairwoman Angela Strand. “This included completing retooling of several critical areas of our Lordstown facility and concluding our beta build program. Beta builds have successfully completed numerous independent third-party crash tests and are achieving the standard requirements to meet FVMSS and plan for a five-star crash rating. A particular highlight during the quarter was Lordstown Week. During this week-long period, we proudly opened our doors and showcased our great team and technology, demonstrating the capacity and flexibility of our plant, our capable team and our innovative technologies.”

“We are also evaluating potential strategic partners, with multiple industry participants recognizing the tremendous advantages available to them from utilizing our well situated, 6.2 million square foot manufacturing plant and 650 acre campus. The size and scope of our facility is such that we could easily accommodate additional manufacturing partners while still affording us the ability to build a successful Endurance program and leverage its skateboard for additional models in the years ahead.”

“We are launching the Endurance with a prudent ramp of production given a challenging industry and supply chain landscape. We are on track to begin limited production at the end of September and through the fourth quarter and complete vehicle validation and regulatory approvals in December and January. This will be followed by deployments with selected early customers in Q1 in advance of commercial deliveries in early Q2, with the ramp steepening the second half of next year.”

2021 Objectives and Financial Outlook

We are updating the financial outlook for 2021 that we previously provided with our first quarter 2021 earnings release. Revised guidance is as follows:

Expected Endurance production in 2021 will be limited to coincide with commercialization roadmap.
Expected capital expenditures of between $375 and $400 million, largely related to prepayments for hard tool purchases.
Expected operating expenses of between $95 and $105 million in selling, general and administrative (SG&A) costs and between $310 and $320 million in research and development (R&D) costs.
Expected end of 3Q21 liquidity of between $225 and $275 million in cash and cash equivalents without including any funds from a capital raise.

Conference call Information

Lordstown Motors will host a conference call at 4:30 p.m. Eastern Time today (Wednesday, August 11, 2021). The call can be accessed via a live webcast that is accessible on the Events page of Lordstown Motors’ Investor Relations website at https://investor.lordstownmotors.com/. An archive of the webcast will be available shortly after the call.

Financial Results

Lordstown Motors Corp. Consolidated Statement of Operations (Amounts in thousands, except per share data — Unaudited)

	Three months ended			Three months ended			Six months ended			Six months ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Net sales	$	—		$	—		$	—		$	—
Operating expenses
Selling and administrative expenses		33,793			5,155			48,187			8,677
Research and development expenses		76,544			4,786			168,356			13,254
Total operating expenses	$	110,337		$	9,941		$	216,543		$	21,931
Loss from operations		(110,337	)		(9,941	)	$	(216,543	)	$	(21,931	)
Other income (expense)
Other income (expense)		1,877			2,346			-17,255			2,472
Interest income (expense)		260			(363	)		387			(364	)
Loss before income taxes	$	(108,200	)	$	(7,958	)	$	(233,411	)	$	(19,823	)
Income tax expense		—			—			—			—
Net loss	$	(108,200	)	$	(7,958	)	$	(233,411	)	$	(19,823	)
Loss per share attributable to common shareholders
Basic & Diluted	$	(0.61	)	$	(0.11	)	$	(1.33	)	$	(0.27	)
Weighted-average number of common shares outstanding
Basic & Diluted		176,585			73,951			175,595			72,931


All activity and balances related to common stock prior to the business combination have been restated based on the Exchange Ratio in the Merger Agreement.

Lordstown Motors Corp. Consolidated Balance Sheets (Amounts in thousands except share data — Unaudited)

				Restated
	June 30, 2021			December 31, 2020
ASSETS:
Current Assets
Cash and cash equivalents	$	365,900		$	629,761
Accounts receivable		2			21
Prepaid expenses and other current assets		19,188			24,663
Total current assets	$	385,090		$	654,445
Property, plant and equipment		286,303			101,663
Intangible assets		11,111			11,111
Other non-current assets		4,750			—
Total Assets	$	687,254		$	767,219
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities
Accounts payable	$	48,785		$	32,536
Accrued and other current liabilities		32,593			1,538
Total current liabilities	$	81,378		$	34,074
Note payable		—			1,015
Warrant liability		6,873			101,392
Total liabilities	$	88,251		$	136,481
Stockholders’ equity
Class A common stock, $0.0001 par value, 300,000,000 shares authorized; 176,606,440 and 168,007,960 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	$	18		$	17
Additional paid in capital		966,837			765,162
Accumulated deficit		(367,852	)		(134,441	)
Total stockholders’ equity	$	599,003		$	630,738
Total liabilities and stockholders’ equity	$	687,254		$	767,219

About Lordstown Motors Corp.
Lordstown Motors Corp. is an Ohio-based original equipment manufacturer of light duty fleet vehicles, founded with the purpose of transforming Ohio’s Mahoning Valley and Lordstown, Ohio, into the epicenter of electric-vehicle manufacturing. The company owns the 6.2 million square foot Lordstown Assembly Plant where it plans to build the Lordstown Endurance, believed to be the world’s first full-size, all-electric pickup truck designed to serve the commercial fleet market. For additional information visit www.lordstownmotors.com.

Forward Looking Statements

This press release includes forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: our significant projected funding needs; the availability, timing and terms of any financing that we may pursue; our limited operating history; risks related to the rollout of our business and the timing of expected business milestones, including our ability to complete the engineering of the Endurance, to establish appropriate supplier relationships, to successfully complete testing and to start production of the Endurance in accordance with our projected timeline and budget; risks associated with the conversion and retooling of our facility and ramp up of production; our inability to obtain binding purchase orders from customers and potential customers’ inability to integrate our electric vehicles into their existing fleets; competition in the electric pickup truck market; our inability to retain key personnel and to hire additional personnel; our inability to develop a sales distribution network; and the ability to protect our intellectual property rights. Any forward-looking statements speak only as of the date on which they are made, and Lordstown Motors Corp. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Contacts:

Investors
Carter W. Driscoll, CFA
[email protected]

Media
Kimberly Spell
[email protected]

August 11, 2021 4:04 pm

Chicken Soup for the Soul Entertainment Signs First International VOD Agreement with Keshet Broadcasting

Company Will Be Exclusive Provider of Non-Israeli Content for VOD to Israel’s Top Broadcaster’s Planned Service

COS COB, Conn., Aug. 11, 2021 (GLOBE NEWSWIRE) — Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE), one of the largest operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced the signing of its first international VOD agreement with Keshet Broadcasting, the largest broadcaster in Israel.

Keshet plans to launch a combined AVOD/SVOD service offering in Israel exhibiting content from Chicken Soup for the Soul Entertainment’s extensive library. Chicken Soup for the Soul Entertainment is the exclusive provider of AVOD content to Keshet outside of Israel.

“Keshet is the perfect partner for our first international VOD venture. We offer a vast library of content that networks cannot easily find elsewhere; we offer strong technical and operational expertise; and we also have proven brands, which we expect to deploy in international markets in the future,” said William J. Rouhana Jr, CEO of Chicken Soup for the Soul Entertainment. “Keshet has significant market share with extensive viewership to market our content, and they also have a highly-skilled sales force in place that will be able to effectively sell ads. They fit the exact profile of the broadcasting partners that we hope to be partnering with around the world.”

“We have watched Chicken Soup for the Soul Entertainment systematically build its AVOD service in the United States, and we reached out to them as we are planning our VOD service. Their extensive film and television library and expertise in the VOD space made them the perfect partner for us,” said Avi Nir, CEO of Keshet Broadcasting. “We look forward to building a major VOD service in Israel with Chicken Soup for the Soul Entertainment’s help.”

The service is scheduled to roll out during 2022. Ladenburg Thalmann & Co. Inc. acted as advisor to Chicken Soup for the Soul Entertainment, Inc.

ABOUT CHICKEN SOUP FOR THE SOUL ENTERTAINMENT, INC.

Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) operates streaming video-on-demand networks (VOD). The company owns Crackle Plus, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix. The company also acquires and distributes video content through its Screen Media subsidiary and produces original long and short-form content through Landmark Studio Group, Chicken Soup for the Soul Unscripted, APlus.com and Halcyon Television. Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup for the Soul, LLC, which publishes the famous book series and produces super-premium pet food under the Chicken Soup for the Soul brand name.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical facts. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Such assumptions involve a number of known and unknown risks and uncertainties, including but not limited to our core strategy, operating income and margin, seasonality, liquidity, including cash flows from operations, available funds, and access to financing sources, free cash flows, revenues, net income, profitability, stock price volatility, future regulatory changes, price changes, the ability of the Company’s content offerings to achieve market acceptance, the Company’s success in retaining or recruiting officers, key employees, or directors, the ability to protect intellectual property, the ability to complete strategic acquisitions, the ability to manage growth and integrate acquired operations, the ability to pay dividends, regulatory or operational risks, and general market conditions impacting demand for the Company’s services. For a more complete description of these and other risks and uncertainties, please refer the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021, and for further information regarding our recent acquisition of the Sonar library and related assets, please see our Current Reports on Form 8-K, as amended, filed with the SEC on May 27, 2021 and July 1, 2021. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

INVESTOR RELATIONS

Taylor Krafchik
Ellipsis
[email protected]
(646) 776-0886

MEDIA CONTACT

Kate Barrette
RooneyPartners LLC
[email protected]
(212) 223-0561

August 11, 2021 4:03 pm

Mister Car Wash® Growing in Florida

Two New Acquired Locations Added in the Orlando Area

PR Newswire

TUCSON, Ariz., Aug. 11, 2021 /PRNewswire/ — Mister Car Wash, Inc. (“Mister” “Company” NYSE: MCW) has expanded its presence in Florida with the acquisition of two new locations in the Orlando area. The two locations, one near downtown off Silver Star Road and one in Millenia on Orange Blossom Trail, were acquired in April of 2021 and have been closed for renovation and upgrades.

The Silver Star location at 4551 Silver Star Rd., Orlando, FL opened earlier this week and the Orange Blossom Trail location at 5275 S Orange Blossom Trl., Orlando, FL is scheduled to open in the Fall.

“These two locations presented a unique opportunity to strategically add locations in Orlando,” said Casey Lindsay, vice president corporate development for Mister Car Wash. “We are always looking to acquire locations that complement our footprint in an existing market. Now that they are being renovated to reflect the Mister brand and our service offering, these locations will serve our Unlimited Wash Club® members and give customers more access to our signature experience,” he continued.

During the renovation process, the Company updated signage and building aesthetics, added dedicated Unlimited Wash Club member lanes, installed new wash equipment, and added proprietary Mister cleaning and chemistry systems.

Join the Mister Car Wash Team
Candidates interested in joining the Mister Car Wash team at any local store can apply online at careers.mistercarwash.com. Mister Car Wash is an equal opportunity employer, and new team members will receive a wide variety of benefits including competitive pay, paid-time-off earned from day one, generous benefits, and free car washes.

About Mister Car Wash® | Inspiring People to Shine®
Headquartered in Tucson, Arizona, Mister Car Wash, Inc. (NYSE: MCW) operates over 340 car washes nationwide and has the largest car wash subscription program in North America. With over 25 years of car wash experience, the Mister team is focused on operational excellence and delivering a memorable customer experience through elevated hospitality. The Mister brand is anchored in quality, friendliness and a commitment to the communities we serve as good stewards of the environment and the resources we use. We believe that when you take care of your people, they will take care of your customers. To learn more visit: https://mistercarwash.com

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to Mister Car Wash’s expansion efforts and branding initiatives. Words including “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” or “should,” or the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.

These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: developments involving the Company’s competitors and its industry; the Company’s ability to attract new customers, retain existing customers and maintain or grow its number of subscription members; potential future impacts of the COVID-19 pandemic; the Company’s ability to open and operate new locations in a timely and cost-effective manner; the Company’s ability to identify suitable acquisition targets and consummate such acquisitions on attractive terms; the Company’s ability to maintain and enhance its brand reputation; the Company’s reliance on and relationships with third-party suppliers; risk related to the Company’s indebtedness and capital requirements; risk related to governmental laws and regulations applicable to the Company and its business; the Company’s ability to maintain security and prevent unauthorized access to electronic and other confidential information; and the other important factors discussed under the caption “Risk Factors” in the Company’s final prospectus filed with the Securities and Exchange Commission (the “SEC”) on June 28, 2021 pursuant to Rule 424(b)(4), and as such factors may be updated from time to time in its other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and Investors Relations section of the Company’s website at www.mistercarwash.com.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

For more information contact:
Media
Megan Everett
[email protected]

Investor Relations
Farah Soi/Caitlin Churchill
[email protected]

View original content:https://www.prnewswire.com/news-releases/mister-car-wash-growing-in-florida-301353577.html

SOURCE Mister Car Wash

August 11, 2021 4:03 pm

BBVA Argentina announces Second Quarter 2021 Financial Results Schedule

PR Newswire

BUENOS AIRES, Argentina
, Aug. 11, 2021 /PRNewswire/ — Banco BBVA Argentina S.A. (NYSE & BYMA & MAE: BBAR; LATIBEX:XBBAR) today announced that it will report its Second Quarter 2021 results on Tuesday, August 24, after market close.

Earnings Release
Tuesday, August 24, 2021
Time: After market close

Conference Call
Wednesday, August 25, 2021
Time: 12:00 p.m.Buenos Aires time – (11:00 a.m. EST)

Quiet Period
From Wednesday, August 11 through Wednesday, August 25, 2021

Executives
Mr. Ernesto Gallardo, Chief Financial Officer
Ms. Inés Lanusse, Investor Relations Officer
Ms. Belén Fourcade, Investor Relations

To participate, please dial in:
1-844-450-3851 (US Toll-Free)
1-412-317-6373 (International)
54-11-3984-5677 (Argentina)
Web Phone: click here
Conference ID: BBVA
Webcast & Replay: click here

BBVA Argentina Investor Relations
[email protected]
ir.bbva.com.ar

About BBVA Argentina

Banco BBVA Argentina (NYSE, BYMA, MAE: BBAR; LATIBEX: XBBAR) is a subsidiary of the BBVA Group, the principal shareholder since 1996. In Argentina, it is one of the leading private financial institutions since 1886. Nationwide, Banco BBVA Argentina offers retail and corporate banking to a broad customer base, including: individuals, SME’s, and large-sized companies.

Banco BBVA Argentina’s purpose is to bring the age of opportunities to everyone, based on our customers’ real needs, providing the best solutions, and helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: “Customer comes first, we think big and we are one team“. At the same time, its responsible banking model aspires to achieve a more inclusive and sustainable society.

View original content:https://www.prnewswire.com/news-releases/bbva-argentina-announces-second-quarter-2021-financial-results-schedule-301353410.html

SOURCE Banco BBVA Argentina S.A.

August 11, 2021 4:03 pm

MannKind Corporation Reports 2021 Second Quarter Financial Results

Conference Call to Begin Today at 5:00 PM ET

2Q 2021 Total Revenues of $23.3 million; +54% vs. 2Q 2020
2Q 2021 Afrezza Net Revenue of $10.0 million; +43% vs. 2Q 2020
$201.4 million of Cash, Cash Equivalents and Investments at June 30, 2021

WESTLAKE VILLAGE, Calif., Aug. 11, 2021 (GLOBE NEWSWIRE) — MannKind Corporation (Nasdaq:MNKD) today reported financial results for the quarter and six months ended June 30, 2021.

“I am really proud of how our team has executed so far in 2021 supporting the growth of Afrezza and preparing for the potential commercial launch of Tyvaso DPI,” said Michael Castagna, Chief Executive Officer of MannKind Corporation. “With the issuance of the convertible debt in the first quarter and the pay-down and restructuring of our legacy debt in the second quarter, we have a stronger balance sheet with lower interest expense which sets the company up for commercial growth and pipeline advancement.”

Second Quarter 2021 Results

Total revenues were $23.3 million for the second quarter of 2021, an increase of $8.2 million, or 54%, reflecting Afrezza net revenue of $10.0 million and collaboration and services revenue of $13.3 million. Afrezza net revenue increased $3.0 million, or 43%, compared to $7.0 million in the second quarter of 2020 as a result of higher prescription demand, the negative effects of the COVID-19 pandemic in the prior year period, a more favorable mix of Afrezza cartridges, and price (including a lower gross-to-net deduction percentage of gross sales). Collaboration and services revenue for the second quarter of 2021 increased $5.2 million, or 64%, compared to the second quarter of 2020, primarily due to the Company’s collaboration with United Therapeutics.

Afrezza gross profit for the second quarter of 2021 was $5.6 million compared to $3.3 million in the same period of 2020, a 68% increase that was driven primarily by higher Afrezza revenue and increased manufacturing activities which resulted in a higher amount of costs capitalized to inventory, partially offset by a $2.0 million fee for an amendment of the Company’s insulin supply agreement. Gross margin in the second quarter of 2021 was 56% compared to 47% for the same period in 2020. On a non-GAAP basis, which excludes the $2.0 million insulin supply amendment fee, gross margin was 76% for the second quarter of 2021 compared to 47% for the same period in 2020.

Research and development (“R&D”) expenses for the second quarter of 2021 were $2.3 million compared to $1.5 million for the second quarter of 2020. This increase of $0.9 million, or 59%, was attributable to increased development activity related to our product pipeline.

Selling, general and administrative (“SG&A”) expenses for the second quarter of 2021 were $20.1 million compared to $13.7 million for the second quarter of 2020, an increase of $6.4 million, or 47%, as we expanded our investment behind Afrezza and lowered expenses in the prior year period when we voluntarily reduced compensation and field force activities in response to the onset of the COVID-19 pandemic. As we continued to re-engage our selling activities behind Afrezza, we increased promotional and marketing expenses by $1.8 million and patient support services by $0.6 million. Personnel expenses increased $4.4 million due to the favorable impact of lower spending during the COVID-19 pandemic as well as increased headcount and stock compensation. The increased spending in SG&A in the second quarter of 2021 was partially offset by a reduction for the promotional cost for Thyquidity that was recognized as cost of revenue — collaboration and services in 2021.

For the second quarter of 2021, the loss on foreign currency translation for insulin purchase commitments denominated in Euros was $0.9 million compared to $1.9 million for the second quarter of 2020. The fluctuation was due to the change in the U.S. dollar to Euro foreign exchange rate.

Interest expense on debt for the second quarter of 2021 was $3.2 million compared to $2.4 million for the second quarter of 2020. This increase of $0.8 million was the result of interest on the $230.0 million 2.5% senior convertible notes, partially offset by a decrease in interest due to the repayment of $35.1 million of outstanding principal under the Mann Group non-convertible promissory note and the repayment of $10.0 million outstanding principal under the MidCap credit facility in the second quarter of 2021. In addition, the Company reduced the interest rates under the MidCap credit facility and the Mann Group convertible note through amendments to the respective agreements in the second quarter of 2021.

Loss on extinguishment of debt, a non-cash expense item, for the three months ended June 30, 2021 was $22.1 million as a result of the amendment to the Mann Group convertible note. The accounting for the $22.1 million loss on extinguishment did not result in a change in the financial position of the Company.

The net loss for the second quarter of 2021 was $35.5 million, or $0.14 per share, compared to a $10.3 million net loss in the second quarter of 2020, or $0.05 per share. The increased net loss of $25.3 million was primarily due to a non-cash loss on extinguishment of the Mann Group convertible note of $22.1 million as well as an increase in SG&A expenses and cost of revenue — collaboration and services, partially offset by an increase in Afrezza net revenue and revenues from collaboration and services. Non-GAAP net loss, adjusted to exclude the $22.1 million non-cash loss on extinguishment of the Mann Group convertible note was $13.4 million, or $0.05 per share, for the three months ended June 30, 2021 compared to $10.3 million, or $0.05 per share, for the prior year period.

Six Months June 30, 2021

Total revenues were $40.7 million for the six months ended June 30, 2021, an increase of $9.4 million, or 30%, reflecting Afrezza net revenue of $18.1 million and collaboration and services revenue of $22.6 million. Afrezza net revenue increased 21% compared to $15.0 million for the six months ended June 30, 2020, primarily as a result of higher prescription demand and the negative effects of the COVID-19 pandemic in the prior year period, a more favorable mix of Afrezza cartridges and price (including a lower gross-to-net deduction percentage of gross sales). Collaboration and services revenue for the six months ended June 30, 2021 increased $6.3 million, or 38%, compared to the six months ended June 30, 2020, primarily due to the Company’s collaboration with United Therapeutics.

Afrezza gross profit for the six months ended June 30, 2021 was $9.3 million compared to $7.1 million in the same period of 2020, a 31% increase that was driven primarily by higher Afrezza revenue. Cost of goods sold increased $0.9 million compared to the same period in 2020, primarily due to a $2.0 million fee for an amendment of the Company’s insulin supply agreement, partially offset by $0.8 million of costs associated with lower manufacturing cost per unit and the termination of the free goods program in December 2020, in addition to $0.5 million of inventory write-offs in 2020. Gross margin for the six months ended June 30, 2021 was 52% compared to 48% for the same period in 2020. On a non-GAAP basis, which excludes the $2.0 million insulin supply amendment fee, gross margin was 63% for the six months ended June 30, 2021 compared to 48% for the same period in 2020.

R&D expenses for the six months ended June 30, 2021 were $4.8 million compared to $3.2 million for the six months ended June 30, 2020. This increase of $1.6 million, or 48%, was attributable to increased development activity related to our product pipeline.

SG&A expenses for the six months ended June 30, 2021 were $37.5 million compared to $28.0 million for the six months ended June 30, 2020, an increase of $9.4 million, or 34%, as we expanded our investment behind Afrezza and lowered expenses in the prior year period when we voluntarily reduced compensation and field force activities in response to the onset of the COVID-19 pandemic. As we continued to re-engage our selling activities behind Afrezza, we increased promotional and marketing expenses by $2.4 million and patient support services by $0.9 million in the first half of 2021. Personnel expenses increased $6.4 million due to the favorable impact of lower spending during the COVID-19 pandemic as well as increased headcount and stock compensation. The increased spending in SG&A in the first half of 2021 was partially offset by a reduction for the promotional cost for Thyquidity that was recognized as cost of revenue — collaboration and services in 2021.

For the six months ended June 30, 2021, the gain on foreign currency translation for insulin purchase commitments denominated in Euros was $2.9 million compared to a $0.1 million loss for the six months ended June 30, 2020. The fluctuation was due to the change in the U.S. dollar to Euro foreign exchange rate.

Interest expense on debt for the six months ended June 30, 2021 was $9.6 million compared to $4.7 million for the six months ended June 30, 2020. This increase of $4.9 million was the result of a $3.7 million milestone obligation achieved in the first quarter of 2021, interest on the $230.0 million 2.5% senior convertible notes issued in the first quarter of 2021, partially offset by a decrease in interest due to the repayment of $35.1 million of outstanding principal under the Mann Group non-convertible promissory note and the repayment of $10.0 million outstanding principal under the MidCap credit facility in the second quarter of 2021. In addition, the Company reduced the interest rates on the outstanding principal balances under the MidCap credit facility and the Mann Group convertible note through amendments to the respective agreements in the second quarter of 2021.

Non-cash loss on extinguishment of debt for the six months ended June 30, 2021 was $22.1 million as a result of the amendment to the Mann Group convertible note. The accounting for the $22.1 million loss on extinguishment did not result in a change in the financial position of the Company.

The net loss for the six months ended June 30, 2021 was $48.4 million, or $0.20 per share, compared to a $19.6 million net loss in the six months ended June 30, 2020, or $0.09 per share. The increased net loss of $28.9 million was primarily due to the non-cash loss on extinguishment of the Mann Group convertible note of $22.1 million as well as an increase in SG&A expenses, cost of revenue – collaboration and services, and loss on purchase commitments, partially offset by an increase in Afrezza net revenues and revenues from collaboration and services. Non-GAAP net loss, adjusted to exclude the $22.1 million non-cash loss on extinguishment of the Mann Group convertible note was $26.3 million, or $0.11 per share, for the six months ended June 30, 2021 compared to $19.6 million, or $0.09 per share, for the same period in the prior year.

Cash, cash equivalents, and investments at June 30, 2021 were $201.4 million compared to $67.0 million at December 31, 2020. The increase in cash, cash equivalents and investments was primarily due to the issuance of $230.0 million of 2.5 % senior convertible notes in the first quarter of 2021.

Non-GAAP Measures

Certain financial information contained in this press release is presented on both a reported basis (GAAP) and a Non-GAAP basis. Reported results were prepared in accordance with GAAP whereas Non-GAAP measures exclude items described in the reconciliation tables below. Non-GAAP financial information is intended to portray the results of our baseline performance, supplement or enhance management, analysts and investors overall understanding of our underlying financial performance and facilitate comparisons among current and past periods. The Non-GAAP financial measures are in addition to, not a substitute for, or superior to measures of financial performance compared in accordance with GAAP.

The following tables reconcile our gross margin financial measure to a non-GAAP presentation as adjusted for the nonrecurring amendment fee related to an amendment to our Insulin Supply Agreement.

	Three Months Ended June 30,
(In thousands)	2021			2020			$ Change			% Change
Net revenue — Afrezza	$	9,976		$	6,985		$	2,991			43	%
Less cost of goods sold		(4,411	)		(3,677	)	$	(734	)		20	%
GAAP gross profit — Afrezza		5,565			3,308		$	2,257			68	%
Exclude Amphastar amendment fee		2,000			—		$	2,000		*
Non-GAAP gross profit — Afrezza	$	7,565		$	3,308		$	4,257			129	%
Non-GAAP gross margin		76	%		47	%

	Six Months Ended June 30,
	2021			2020			$ Change		% Change
Net revenue — Afrezza	$	18,075		$	14,985		$	3,090		21	%
Less cost of goods sold		(8,726	)		(7,841	)	$	885		11	%
GAAP gross profit — Afrezza		9,349			7,144		$	2,205		31	%
Exclude Amphastar amendment fee		2,000			—		$	2,000	*
Non-GAAP gross profit — Afrezza	$	11,349		$	7,144		$	4,205		59	%
Non-GAAP gross margin		63	%		48	%

____________________
* Not meaningful

The following tables reconcile our financial measure for net loss and EPS as reported in our condensed consolidated statement of operations to a non-GAAP presentation as adjusted for the $22.1 million non-cash loss on extinguishment of the Mann Group convertible note, which did not result in a change in our financial position.

	Three Months Ended June 30,
(In thousands, except per share data)	2021			2020			$ Change		% Change
GAAP to Non-GAAP Net Loss and EPS
Net loss	$	(35,523	)	$	(10,252	)	$	25,271		246	%
Net loss per share – basic and diluted	$	(0.14	)	$	(0.05	)	$	0.09		180	%

Less non-cash loss on extinguishment of debt⁽¹⁾		22,130			—		$	22,130	*
Non-GAAP net loss	$	(13,393	)	$	(10,252	)	$	3,141		31	%
Non-GAAP net loss per share – basic and diluted	$	(0.05	)	$	(0.05	)	$	—		—	%
Shares used to compute non-GAAP basic and diluted net loss per share		249,295			213,880			35,415		17	%

	Six Months Ended June 30,
	2021			2020			$ Change		% Change
GAAP to Non-GAAP Net Loss and EPS
Net loss	$	(48,439	)	$	(19,574	)	$	28,865		147	%
Net loss per share – basic and diluted	$	(0.20	)	$	(0.09	)	$	0.11		122	%

Less non-cash loss on extinguishment of debt⁽¹⁾		22,130			—		$	22,130	*
Non-GAAP net loss	$	(26,309	)	$	(19,574	)	$	6,735		34	%
Non-GAAP net loss per share – basic and diluted	$	(0.11	)	$	(0.09	)	$	0.02		22	%
Shares used to compute non-GAAP basic and diluted net loss per share		247,970			212,943			35,027		(16	%)

____________________
* Not meaningful
(1) There is no provision for income taxes associated with the non-cash loss on extinguishment of debt as a result of our full valuation allowance.

Conference Call

MannKind will host a conference call and presentation webcast to discuss these results today at 5:00 p.m. Eastern Time. Those interested in listening to the conference call live via the Internet may do so by visiting the Company’s website at www.mannkindcorp.com under Events & Presentations. A replay will be available on MannKind’s website for 14 days.

About MannKind Corporation

MannKind Corporation (Nasdaq: MNKD) focuses on the development and commercialization of inhaled therapeutic products for patients with endocrine and orphan lung diseases. MannKind is currently commercializing Afrezza® (insulin human) Inhalation Powder, the Company’s first FDA-approved product and the only inhaled ultra rapid-acting mealtime insulin in the United States, where it is available by prescription from pharmacies nationwide. Afrezza is also available by prescription in Brazil where it is commercialized by the Company’s partner Biomm SA. MannKind was established in 1991 and is headquartered in Westlake Village, Calif., and has a manufacturing and R&D facility in Danbury, Conn. The Company also employs field sales and medical representatives across the U.S. Please visit www.mannkindcorp.com to learn more.

Forward-Looking Statements

Statements in this press release that are not statements of historical fact are forward-looking statements that involve risks and uncertainties. These statements include, without limitation, statements regarding the potential approval and commercial launch of Tyvaso DPI, MannKind’s future commercial growth and pipeline advancement, and MannKind’s ability to directly commercialize pharmaceutical products. Words such as “believes”, “anticipates”, “plans”, “expects”, “intend”, “will”, “goal”, “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon MannKind’s current expectations. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the risk that Tyvaso DPI may not be approved by the FDA on the timeline expected, or at all, risks associated with product commercialization, risks associated with developing product candidates, risks associated with MannKind’s ability to manage its existing cash resources or raise additional cash resources, the impact of the COVID-19 pandemic, stock price volatility and other risks detailed in MannKind’s filings with the Securities and Exchange Commission, including under the “Risk Factors” heading of its Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent periodic reports on Form 10-Q and current reports on Form 8-K, each as filed with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and MannKind undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

Tyvaso DPI is an investigational combination product that is not approved for any use in any country. The Tyvaso DPI tradename is pending final FDA review. Tyvaso DPI is a trademark of United Therapeutics Corporation.

Thyquidity is a trademark of Vertice Pharma.

Company Contact:
818-661-5000
[email protected]

MANNKIND CORPORATION
AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

	June 30, 2021			December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	62,522		$	67,005
Restricted cash		—			158
Short-term investments		99,970			—
Accounts receivable, net		6,305			4,218
Inventory		7,482			4,973
Prepaid expenses and other current assets		3,624			3,122
Total current assets		179,903			79,476
Property and equipment, net		28,139			25,867
Long-term investments		38,950			—
Other assets		5,799			3,265
Total assets	$	252,791		$	108,608

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	7,486		$	5,582
Accrued expenses and other current liabilities		22,406			19,707
PPP loan — current		4,873			4,061
Deferred revenue — current		20,126			33,275
Recognized loss on purchase commitments — current		5,538			11,080
Total current liabilities		60,429			73,705
Senior convertible notes		223,217			—
MidCap credit facility		38,614			49,335
Mann Group promissory notes		18,425			63,027
Accrued interest — Mann Group promissory notes		169			4,150
PPP loan — long term		—			812
2024 convertible notes		—			5,000
Recognized loss on purchase commitments — long term		83,179			84,208
Operating lease liability		564			1,202
Deferred revenue — long term		1,589			1,662
Milestone rights liability		4,839			5,926
Deposits from customer		5,317			—
Total liabilities		436,342			289,027

Stockholders’ deficit:
Undesignated preferred stock, $0.01 par value — 10,000,000 shares authorized; no shares issued or outstanding as of June 30, 2021 and December 31, 2020		—			—
Common stock, $0.01 par value – 400,000,000 shares authorized, 249,617,550 and 242,117,089 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively		2,496			2,421
Additional paid-in capital		2,911,535			2,866,303
Accumulated deficit		(3,097,582	)		(3,049,143	)
Total stockholders’ deficit		(183,551	)		(180,419	)
Total liabilities and stockholders’ deficit	$	252,791		$	108,608

MANNKIND CORPORATION
AND SUBSIDIARIES

CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenues:
Net revenue — commercial product sales	$	9,976		$	6,985		$	18,075		$	14,985
Revenue — collaborations and services		13,304			8,129			22,641			16,364
Total revenues		23,280			15,114			40,716			31,349
Expenses:
Cost of goods sold		4,411			3,677			8,726			7,841
Cost of revenue — collaborations and services		5,515			1,983			8,810			5,345
Research and development		2,329			1,464			4,771			3,219
Selling, general and administrative		20,056			13,670			37,469			28,020
Asset impairment		—			368			—			1,889
Loss (gain) on foreign currency translation		903			1,867			(2,935	)		71
Loss on purchase commitments		339			—			339			—
Total expenses		33,553			23,029			57,180			46,385
Loss from operations		(10,273	)		(7,915	)		(16,464	)		(15,036	)
Other (expense) income:
Interest income		25			14			28			147
Interest expense on notes		(2,812	)		(1,084	)		(8,234	)		(2,155	)
Interest expense on Mann Group promissory notes		(368	)		(1,281	)		(1,398	)		(2,540	)
Loss on extinguishment of debt		(22,130	)		—			(22,130	)		—
Other income (expense)		35			14			(241	)		10
Total other expense		(25,250	)		(2,337	)		(31,975	)		(4,538	)
Loss before provision for income taxes		(35,523	)		(10,252	)		(48,439	)		(19,574	)
Provision for income taxes		—			—			—			—
Net loss	$	(35,523	)	$	(10,252	)	$	(48,439	)	$	(19,574	)
Net loss per share – basic and diluted	$	(0.14	)	$	(0.05	)	$	(0.20	)	$	(0.09	)
Shares used to compute basic and diluted net loss per share		249,295			213,880			247,970			212,943

August 11, 2021 4:03 pm

GeoVax Reports 2021 Second Quarter Financial Results and Provides Corporate Update

Continued Progress on COVID-19 and Immuno-Oncology Programs

ATLANTA, GA, Aug. 11, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — GeoVax Labs, Inc. (Nasdaq: GOVX), a biotechnology company developing immunotherapies and vaccines against infectious diseases and cancers, today announced its financial results for the quarter ended June 30, 2021.

GeoVax’s management will host a live conference call and webcast at 4:30 p.m. Eastern Standard Time on Wednesday, August 11 to discuss financial results and provide a general business update. Details are provided below.

2021 YTD Highlights and Development Program Status Update

COVID-19 Vaccine – GeoVax’s SARS-CoV-2 (COVID-19) vaccine is based on its GV-MVA-VLP^TMtechnology, which enables insertion of multiple antigen fragments, potentially allowing for broad-spectrum virus prevention. Unlike other vaccines that target only the COVID-19 spike protein, the Company’s vaccines are designed to provoke a response to multiple COVID-19 antigens, which means they could be less susceptible to viral mutations. The Company’s vaccines are intended to be used as either a primary vaccine or to boost other COVID-19 vaccines as part of vaccination strategies to provide immunity to a range of coronavirus variants. GeoVax believes a critical and significant opportunity exists for a pan-coronavirus vaccine with the attributes the GV-MVA-VLP technology can offer.

In January 2021, the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), awarded GeoVax a Small Business Innovative Research (SBIR) grant for development of a COVID-19 vaccine. The Phase 1 grant, titled, “Preclinical Development of GV-MVA-VLP Vaccines Against COVID-19,” supports the ongoing design, construction, and preclinical testing of GeoVax’s vaccine candidates in preparation for human clinical trials.

Small animal studies are continuing and results to date support the Company’s approach of using MVA as a vector for the design and production of “next-generation” vaccines encoding multiple proteins. Details of the studies will be presented on August 19 during the European Society of Medicine (ESMED) General Assembly. Based on the encouraging results, the Company recently submitted an application to NIAID for additional support for advanced testing.

Cancer Immunotherapy – GeoVax’s cancer immunotherapy program is based on the concept of combining a tumor-associated antigen vaccine with a potent anti-tumor agent, such as an Immune Checkpoint Inhibitor (“ICI”), with the goal of achieving regression of tumor growth and development. In February 2021, the Company filed a U.S. patent application, covering updates to its MVA viral vector technology to amplify an immune response to a cancer antigen via vaccination, which could strengthen the Company’s intellectual property position in this space. Immuno-oncology is an important focus area for the Company, and GeoVax is engaging with multiple collaborators. The initial animal studies, based upon a GeoVax-MUC1 vaccine/ICI combination, have been encouraging and additional studies are being planned with the goal of expanding the overall cancer immunotherapy program. The Company expects to provide further details on its progress and plans to advance to human clinical testing in the near future.

Lassa Fever – Progress continues using grant funding from the U.S. Department of Defense for the Company’s Lassa Fever (LASV) vaccine program. The project award supports generation of immunogenicity and efficacy data for GeoVax’s vaccine candidate in both rodent and nonhuman primate models, as well as manufacturing process development and cGMP production of vaccine seed stock in preparation for human clinical trials. This work is in collaboration with U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID) and the Geneva Foundation. Technical issues associated with the manufacturing process combined with the limited availability of nonhuman primates have resulted in delays to this program, but the work is advancing and results are now expected to be available in late 2021 or early 2022.

Sudan ebolavirus and Marburg virus – In July 2021, GeoVax announced results of preclinical efficacy studies of its Sudan ebolavirus (SUDV) vaccine candidate (MVA-VLP-SUDV). Immunogenicity and efficacy of MVA-VLP-SUDV were tested in a guinea pig lethal challenge model, in which asingle intramuscular dose of the GeoVax vaccine protected 100% of animals challenged with a lethal dose of SUDV. A comparison between prime and prime-boost vaccinations of guinea pigs showed that both regimens elicited SUDV-specific binding and neutralizing antibody responses, and that the second immunization enhanced these responses. Challenge of vaccinated animals with guinea pig-adapted SUDV demonstrated complete protection against death and disease by the prime and the prime-boost regimens. This is the first report that a replication-deficient MVA vector may confer full protection against SUDV after a single dose. This work was conducted in collaboration with researchers at the University of Texas Medical Branch (UTMB).

Separately, GeoVax is leading a multi-party collaboration for the development of its (SUDV) and Marburg virus (MARV) vaccine candidates. The collaboration, between GeoVax, researchers at UTMB and Battelle Memorial Institute, utilizes the suite of preclinical services from NIAID. Under the collaboration, GeoVax’s SUDV and MARV vaccine candidates are being tested for immunogenicity and efficacy in the benchmark nonhuman primate model. This work builds uponearlier studies in rodents and nonhuman primates for the Company’s Ebola virus (EBOV) vaccine candidate that demonstrated 100% protection against a lethal dose of EBOV following a single immunization. The Company expects to announce additional results during the second half of 2021.

Malaria Vaccine – Exploratory studies in collaboration with the Burnet Institute in Australia and Leidos, Inc. have been encouraging.We continue to evaluate advancing this program into formal product development since a Malaria vaccine is not currently a product development initiative.

HIV Vaccine Programs – NIAID has funded multiple clinical trials of GeoVax’s HIV preventive vaccine (GOVX-B11) through the HIV Vaccine Trials Network (HVTN). The next planned trial (HVTN 132) is designed to further evaluate the safety and immunogenicity of adding “protein boost” components to the GOVX-B11 vaccination regimen. The start of HVTN 132 has been delayed due to COVID-19, and the Company awaits further information from NIAID and HVTN on when the trial may commence. The Company is also part of efforts to develop a combination therapy to induce remission in HIV-positive individuals (a “functional cure”). In August 2020, a consortium led by researchers at the University of California, San Francisco (UCSF) began enrolling patients in a Phase 1 human clinical trial using our vaccine as part of a combination therapy intended to induce remission in HIV-positive individuals. Similar to HVTN 132, this trial has been affected by the pandemic, so we await further information regarding the status of patient enrollment and trial results. Our prior collaboration with American Gene Technologies International, Inc. (AGT) was recently discontinued due to AGT’s remodeling of their clinical trial plans, but the Company remains open to additional collaborations.

Intellectual Property – In February 2021, GeoVax filed international and U.S. patent applications in our key focus areas of SARS-CoV-2 (COVID-19) and cancer immunotherapy, and in July 2021 the Company announced the issuance of a U.S. patent covering our Hepatitis B vaccine. Following these filings, GeoVax’s wholly owned, co-owned, and in-licensed intellectual property portfolio now stands at over 70 granted or pending patent applications spread over 20 patent families.

Management Commentary

David Dodd, GeoVax’s Chairman and CEO, commented, “We remain enthusiastic about our development programs and expect several data announcements in the forthcoming weeks and months, most notably in our program areas of COVID-19, Lassa Fever virus, Sudan/Marburg virus and immuno-oncology. As with many other companies, the continuing COVID-19 pandemic has affected the timelines for some of our programs, most notably our HIV program. In addition, third-party technical disruptions have resulted in delays in completing various contracted animal studies. I look forward to sharing news of our progress as those studies are completed and other events occur. We remain encouraged and focused on completing these studies as soon as possible and announcing the various results.

“With our funding events from 2020 and early 2021, we are well-positioned to advance several of our development programs, with a continued focus on our COVID-19 vaccine and our cancer immunotherapy programs. The additional capital is allowing us to make infrastructure and personnel investments, as well as funding commitments in support of other programs, including manufacturing process development with a view toward cost-effective, large-scale production for clinical and commercial distribution. Our focus and goal is to advance into clinical development both within the areas of infectious diseases and immuno-oncology, providing significant potential growth in value for our shareholders while providing new vaccines and therapies for critical areas of health worldwide,” concluded Mr. Dodd.

Financial Review

GeoVax reported a net loss of $1,314,033 ($0.21 per share) for the three months ended June 30, 2021, compared to a net loss of $455,204 ($0.66 per share) for the same period in 2020. For the six months ended June 30, 2021, the Company’s net loss was $2,876,811 ($0.49 per share) as compared to a net loss of $1,050,898 ($2.27 per share) in 2020.

Grant and collaboration revenues were $79,708 and $190,125 for the three-month and six-month periods of 2021, respectively, as compared to $440,602 and $1,156,579 reported for the comparable periods of 2020. The 2021 period reflects amounts related to our grant from NIH in support of our COVID-19 vaccine program, while the 2020 period reflects amounts related to our grant from the U.S. Department of Defense (DoD) for our Lassa Fever vaccine and our collaboration with Leidos, Inc. for its malaria vaccine program. As of June 30, 2021, there is $275,302 of approved funds remaining and available for use related to the COVID-19 and Lassa Fever grants.

Research and development expenses were $832,835 and $1,435,618 for the three-month and six-month periods of 2021, respectively, as compared to $461,421 and $1,270,357 for the comparable periods of 2020, with the increases primarily related to our COVID-19 vaccine program, manufacturing process development, and a generally higher level of activity, offset in part by the timing and amount of external expenditures related to our government grants. General and administrative expenses were $733,499 and $1,805,209 for the three-month and six-month periods of 2021, respectively, as compared to $427,292 and $929,637 for the comparable periods of 2020, with the increase primarily attributable to higher Delaware franchise taxes; legal, accounting and patent costs; insurance costs; consulting fees; Nasdaq listing fees; investor relations costs; and personnel costs.

Other income (expense) was $172,593 and $173,891 for the three-month and six-month periods of 2021, respectively, as compared to $(7,093) and $(7,483) for the comparable periods of 2020. The 2021 periods include a $172,056 gain on extinguishment of debt, reflecting forgiveness of the Company’s loan pursuant to the Paycheck Protection Program.

GeoVax reported cash balances of $19.5 million at June 30, 2021, as compared to $9.9 million at December 31, 2020. Contributing to the increase in cash balances were net proceeds of $9.4 million from the sale of 1,644,000 shares of common stock, and $3.2 million from the exercise of warrants to purchase 690,034 shares of common stock.

Summarized financial information is included below. Further information concerning the Company’s financial position and results of operations are included in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.

Conference Call

Management will host a conference call at 4:30 p.m. ET on Wednesday, August 11, 2021 to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question and answer session.

Participants are asked to register for the call via the following link: https://dpregister.com/sreg/10159241/ebf4d52ffa

Please note that registered participants will receive their dial-in number upon registration and will dial directly into the call without delay. Those without Internet access or who are unable to pre-register may dial in by calling 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the GeoVax Labs call.

The conference call will be available through a live webcast found here:
https://services.choruscall.com/mediaframe/webcast.html?webcastid=xxw5fkQ6

A webcast replay of the call will be available via the same link as the live webcast approximately one hour after the end of the call through November 11, 2021. A telephonic replay of the call can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 10159241. The telephonic replay will be available until August 25, 2021.

About GeoVax

GeoVax Labs, Inc. is a clinical-stage biotechnology company developing human vaccines against infectious diseases and cancer using a novel patented Modified Vaccinia Ankara-Virus Like Particle (MVA-VLP) based vaccine platform. On this platform, MVA, a large virus capable of carrying several vaccine antigens, expresses proteins that assemble into VLP immunogens in the person receiving the vaccine. The production of VLPs in the person being vaccinated can mimic virus production in a natural infection, stimulating both the humoral and cellular arms of the immune system to recognize, prevent, and control the target infection. The MVA-VLP derived vaccines can elicit durable immune responses in the host similar to a live-attenuated virus, while providing the safety characteristics of a replication-defective vector.

GeoVax’s current development programs are focused on preventive vaccines against COVID-19, Zika Virus, hemorrhagic fever viruses (Ebola, Sudan, Marburg, and Lassa), HIV, and malaria, as well as therapeutic vaccines against multiple cancers. The Company has designed a preventive HIV vaccine candidate to fight against the subtype of HIV prevalent in the commercial markets of the Americas, Western Europe, Japan, and Australia; human clinical trials for this program are managed by the HIV Vaccine Trials Network (HVTN) with the support of the National Institutes of Health (NIH). GeoVax’s HIV vaccine is also part a separate collaborative effort to apply its vaccine approach toward a functional cure for HIV.

Forward-Looking Statements

This release and the related conference call contain forward-looking statements regarding GeoVax’s business plans and financial results. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Actual results may differ materially from those included in these statements due to a variety of factors, including whether: GeoVax and its collaborators are able to complete their work within the expected timeframes, GeoVax is able to obtain the patent protection sought, GeoVax’s COVID-19 vaccines can provoke responses to multiple COVID-19 antigens, and those vaccines can be used effectively as a primary or booster to other COVID-19 vaccines, GeoVax’s viral vector technology adequately amplifies immune responses to cancer antigens, GeoVax can develop and manufacture its vaccines with the desired characteristics in a timely manner, GeoVax’s vaccines will be safe for human use, GeoVax’s vaccines will effectively prevent targeted infections in humans, GeoVax’s vaccines will receive regulatory approvals necessary to be licensed and marketed, GeoVax raises required capital to complete vaccine development, there is development of competitive products that may be more effective or easier to use than GeoVax’s products, GeoVax will be able to enter into favorable manufacturing and distribution agreements, the impact of the COVID-19 pandemic continues, and other factors, over which GeoVax has no control.

Further information on our risk factors is contained in our registration statement on Form S-3 and the periodic reports on Form 10-Q and Form 10-K that we have filed and will file with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact:

GeoVax Labs, Inc.
[email protected]
678-384-7220

FINANCIAL TABLES FOLLOW

GEOVAX LABS, INC.
Condensed Consolidated Statements of Operations Information
(amounts in thousands, except per share data)
		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2021	2020	2021	2020
Grant and collaboration revenue		$ 80	$ 441	$ 190	$ 1,157

Operating expenses:
	Research and development	833	462	1,436	1,270
	General and administrative	733	427	1,805	930
		1,566	889	3,241	2,200
Loss from operations		(1,486)	(448)	(3,051)	(1,043)
Other income (expense), net		172	(7)	174	(8)

Net loss		$ (1,314)	$ (455)	$ (2,877)	$ (1,051)

Loss per common share		$ (0.21)	$ (0.66)	$ (0.49)	$ (2.27)

Condensed Consolidated Balance Sheet Information
(amounts in thousands)
		June 30, 2021	Dec. 31, 2020
Assets:
	Cash and cash equivalents	$ 19,539	$ 9,884
	Other current assets	118	351
	Total current assets	19,657	10,235

	Property and other assets, net	160	159
	Total assets	$ 19,817	$ 10,394

Liabilities and stockholders’ equity
	Total liabilities	$ 359	$ 825
	Stockholders’ equity	19,458	9,569
	Total liabilities and stockholders’ equity	$ 19,817	$ 10,394

	Common Shares Outstanding	6,328	3,834

August 11, 2021 4:03 pm

Rackspace Technology Reports Second Quarter 2021 Results

Record Revenue of $744 million in the Second Quarter, up 13% Year-over-Year
Core Revenue Grew 17% to $698 million
Net loss of $(37) million, or $(0.18) per diluted share
Non-GAAP Earnings Per Share Grew 14% Year-over-Year to $0.24
Quarterly Cash Flow From Operating Activities of $106 million

SAN ANTONIO, Aug. 11, 2021 (GLOBE NEWSWIRE) — Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end multicloud technology solutions company, today announced results for its second quarter ended June 30, 2021.

Kevin Jones, Chief Executive Officer, commented, “Our second quarter financial results were solid, with double-digit revenue growth and strong operating profit margins. In addition, our working capital and cash management transformation programs have driven excellent results with more than $100 million of operating cash flow for the second consecutive quarter.”

Second Quarter 2021 Results

Revenue was $744 million in the second quarter of 2021, an increase of 13% as compared to revenue of $657 million in the second quarter of 2020. Revenue for the second quarter of 2021 was positively impacted by new customer acquisitions and growing customer spend in our Multicloud Services and Apps & Cross Platform segments. On a constant currency basis, revenue increased by 11% in the second quarter of 2021 as compared to the second quarter of 2020.

Revenue from our Core Segments (“Core Revenue”), comprised of Multicloud Services and Apps & Cross Platform, increased 17% in the second quarter of 2021 as compared to the second quarter of 2020. On a constant currency basis, Core Revenue increased 15% in the second quarter of 2021 as compared to the second quarter of 2020.

Bookings were $258 million in the second quarter of 2021, a decrease of 10% as compared to Bookings of $289 million in the second quarter of 2020. Bookings in the second quarter of 2020 included one large deal valued at approximately $38 million. Excluding this deal from the comparative period, Bookings growth was 3% year-over-year.

Net loss was $(37) million in the second quarter of 2021, compared to net loss of $(33) million in the second quarter of 2020.

Net loss per diluted share was $(0.18) in the second quarter of 2021, compared to net loss per diluted share of $(0.20) in the second quarter of 2020.

Non-GAAP Operating Profit was $119 million in the second quarter of 2021, an increase of 4% compared to $115 million in the second quarter of 2020.

Non-GAAP Earnings Per Share was $0.24 in the second quarter of 2021, an increase of 14% as compared to Non-GAAP Earnings Per Share of $0.21 in the second quarter of 2020.

Capital expenditures were $82 million in the second quarter of 2021, compared to $51 million in the second quarter of 2020.

As of June 30, 2021, we had cash and cash equivalents of $215 million with no balance outstanding on our Revolving Credit Facility.

Financial Outlook

Rackspace Technology is providing guidance as follows:

	Q3 2021 Guidance
Revenue	$750 – $760 million
Core Revenue	$705 – $715 million
Non-GAAP Operating Profit	$118 – $122 million
Non-GAAP Earnings Per Share	$0.23 – $0.25
Non-GAAP Other Income (Expense) ¹	($50) – ($52) million
Non-GAAP Tax Expense Rate	26
Non-GAAP Weighted Average Shares	213 – 215 million

¹ Non-GAAP Other Income (Expense) is only expected to include interest expense.

For the fourth quarter of 2021, the company expects:

Sequential revenue growth of approximately 2% from the third quarter of 2021
Non-GAAP Operating Profit and Non-GAAP Earnings Per Share flat compared to the third quarter of 2021

Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with generally accepted accounting principles in the United States (“GAAP”) are provided in subsequent sections of this press release narrative and supplemental schedules. Rackspace Technology has not reconciled Non-GAAP Operating Profit, Non-GAAP Earnings Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure because it does not provide guidance on GAAP net income (loss) or the reconciling items between these Non-GAAP measures and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items, such as share-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort. With respect to Non-GAAP Operating Profit, Non-GAAP Earnings Per Share, Non-GAAP Other Income (Expense) and Non-GAAP Tax Expense Rate guidance, adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from these Non-GAAP measures in prior periods, but the impact of such adjustments could be significant.

Conference Call and Webcast

Rackspace Technology will hold a conference call today, August 11, 2021, at 4:00pm CT / 5:00pm ET to discuss its second quarter 2021 results. Interested parties may access the conference call as follows:

Via Zoom:

https://rackspace.zoom.us/j/95750453932?pwd=Q21HWis1T1k5UEQvemI2NlFEREp5UT09

Password: 112067

Via telephone (listen only mode):

+1 408 638 0968 (US Toll)
+1 646 558 8656 (US Toll)
+1 647 374 4685 (Canada)
+44 (0) 20 3695 0088 (United Kingdom Toll)
Webinar ID: 957 5045 3932

A live webcast of the call and audio replay will also be available on Rackspace Technology’s website at ir.rackspace.com.

About Rackspace Technology

Rackspace Technology is a leading end-to-end multicloud technology services company. We design, build and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products and adopt innovative technologies.

IR Contact

Investor Relations
[email protected]

PR Contact

Natalie Silva
Rackspace Technology Corporate Communications
[email protected]

Forward-looking Statements

Rackspace Technology has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, our ability to successfully respond to the challenges posed by the COVID-19 pandemic, and other matters. Any forward-looking statement made in this presentation speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. Rackspace Technology cautions that these statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document, including among others, risk factors that are described in Rackspace Technology, Inc.’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein.

Non-GAAP Financial Measures

This press release includes several non-GAAP financial measures such as constant currency revenue, Non-GAAP Gross Profit, Non-GAAP Net Income (Loss), Non-GAAP Operating Profit, Adjusted EBITDA and Non-GAAP Earnings Per Share (“EPS”). These non-GAAP financial measures exclude the impact of certain costs, losses and gains that are required to be included in our profit and loss measures under GAAP. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, as described in the accompanying pages, these measures are not a substitute for, or superior to, GAAP financial measures or disclosures. Other companies may calculate similarly-titled non-GAAP measures differently, limiting their usefulness as comparative measures. We have reconciled each of these non-GAAP measures to the applicable most comparable GAAP measure in the accompanying pages.

IR Contact

Joe Crivelli
Rackspace Technology Investor Relations
[email protected]

PR Contact

Natalie Silva
Rackspace Technology Corporate Communications
[email protected]

RACKSPACE TECHNOLOGY, INC.

CONSOLIDATED RESULTS OF OPERATIONS

(Unaudited)

	Three Months Ended June 30,										Year-Over-Year Comparison
	2021					2020					Year-Over-Year Comparison
(In millions, except % and per share data)		Amount		% Revenue			Amount		% Revenue			Amount		% Change
Revenue	$	656.5		100.0	%	$	743.8		100.0	%	$	87.3		13.3	%
Cost of revenue	(414.6		)	(63.2	)%	(508.3		)	(68.3	)%	(93.7		)	22.6	%
Gross profit	241.9			36.8	%	235.5			31.7	%	(6.4		)	(2.6	)%
Selling, general and administrative expenses	(219.2		)	(33.4	)%	(232.6		)	(31.3	)%	(13.4		)	6.1	%
Income from operations	22.7			3.5	%	2.9			0.4	%	(19.8		)	(87.2	)%
Other income (expense):
Interest expense	(68.9		)	(10.5	)%	(50.5		)	(6.8	)%	18.4			(26.7	)%
Gain on investments, net	1.0			0.1	%	0.1			0.0	%	(0.9		)	(90.0	)%
Debt modification and extinguishment costs	—			—	%	(0.5		)	(0.1	)%	(0.5		)	100.0	%
Other income, net	0.3			0.0	%	0.6			0.1	%	0.3			100.0	%
Total other income (expense)	(67.6		)	(10.3	)%	(50.3		)	(6.8	)%	17.3			(25.6	)%
Loss before income taxes	(44.9		)	(6.8	)%	(47.4		)	(6.4	)%	(2.5		)	5.6	%
Benefit for income taxes	12.3			1.9	%	10.8			1.5	%	(1.5		)	(12.2	)%
Net loss	$	(32.6	)	(5.0	)%	$	(36.6	)	(4.9	)%	$	(4.0	)	12.3	%

Net loss per share:
Basic and diluted	$	(0.20	)			$	(0.18	)
Weighted average number of shares outstanding:
Basic and diluted	165.5					207.9

RACKSPACE TECHNOLOGY, INC.

CONSOLIDATED RESULTS OF OPERATIONS

(Unaudited)

	Six Months Ended June 30,										Year-Over-Year Comparison
	2021					2020					Year-Over-Year Comparison
(In millions, except % and per share data)		Amount		% Revenue			Amount		% Revenue			Amount		% Change
Revenue	$	1,309.2		100.0	%	$	1,469.7		100.0	%	$	160.5		12.3	%
Cost of revenue	(818.0		)	(62.5	)%	(998.9		)	(68.0	)%	(180.9		)	22.1	%
Gross profit	491.2			37.5	%	470.8			32.0	%	(20.4		)	(4.2	)%
Selling, general and administrative expenses	(447.0		)	(34.1	)%	(463.6		)	(31.5	)%	(16.6		)	3.7	%
Gain on sale of land	—			—	%	19.9			1.4	%	19.9			100.0	%
Income from operations	44.2			3.4	%	27.1			1.8	%	(17.1		)	(38.7	)%
Other income (expense):
Interest expense	(140.9		)	(10.8	)%	(103.1		)	(7.0	)%	37.8			(26.8	)%
Gain (loss) on investments, net	0.9			0.1	%	(3.6		)	(0.2	)%	(4.5		)	NM
Debt modification and extinguishment costs	—			—	%	(37.5		)	(2.5	)%	(37.5		)	100.0	%
Other expense, net	(0.3		)	(0.0	)%	(1.2		)	(0.1	)%	(0.9		)	NM
Total other income (expense)	(140.3		)	(10.7	)%	(145.4		)	(9.9	)%	(5.1		)	3.6	%
Loss before income taxes	(96.1		)	(7.3	)%	(118.3		)	(8.0	)%	(22.2		)	23.1	%
Benefit for income taxes	15.3			1.2	%	17.7			1.2	%	2.4			15.7	%
Net loss	$	(80.8	)	(6.2	)%	$	(100.6	)	(6.8	)%	$	(19.8	)	24.5	%

Net loss per share:
Basic and diluted	$	(0.49	)			$	(0.49	)
Weighted average number of shares outstanding:
Basic and diluted	165.4					206.2

NM = not meaningful.

RACKSPACE TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions, except per share data)	December 31, 2020			June 30, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	104.7		$	214.8
Accounts receivable, net of allowance for doubtful accounts and accrued customer credits of $28.3 and $16.0, respectively	483.0			501.1
Prepaid expenses	123.8			94.0
Other current assets	47.0			75.3
Total current assets	758.5			885.2

Property, equipment and software, net	884.6			892.0
Goodwill, net	2,761.1			2,765.8
Intangible assets, net	1,646.3			1,553.8
Operating right-of-use assets	171.1			151.3
Other non-current assets	156.2			164.2
Total assets	$	6,377.8		$	6,412.3

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	285.4		$	324.4
Accrued compensation and benefits	110.6			91.5
Deferred revenue	76.7			93.0
Debt	43.4			23.0
Accrued interest	26.5			26.6
Operating lease liabilities	62.2			60.7
Finance lease liabilities	40.7			57.3
Financing obligations	48.8			59.8
Other current liabilities	47.9			53.0
Total current liabilities	742.2			789.3

Non-current liabilities:
Debt	3,319.3			3,318.7
Operating lease liabilities	118.2			103.8
Finance lease liabilities	358.1			361.8
Financing obligations	74.1			80.2
Deferred income taxes	236.7			219.1
Other non-current liabilities	145.5			156.9
Total liabilities	4,994.1			5,029.8

Commitments and Contingencies

Stockholders’ equity:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	—			—
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 201.8 and 209.0 shares issued and outstanding, respectively	2.0			2.1
Additional paid-in capital	2,363.6			2,445.3
Accumulated other comprehensive loss	(18.6		)	(1.0		)
Accumulated deficit	(963.3		)	(1,063.9		)
Total stockholders’ equity	1,383.7			1,382.5
Total liabilities and stockholders’ equity	$	6,377.8		$	6,412.3

RACKSPACE TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
(In millions)	2020			2021
Cash Flows From Operating Activities
Net loss	$	(80.8	)	$	(100.6	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	237.6			216.3
Amortization of operating right-of-use assets	36.3			36.0
Deferred income taxes	(19.2		)	(23.1		)
Share-based compensation expense	16.6			37.6
Gain on sale of land	—			(19.9		)
Debt modification and extinguishment costs	—			37.5
Unrealized (gain) loss on derivative contracts	(2.7		)	10.8
(Gain) loss on investments, net	(0.9		)	3.6
Provision for bad debts and accrued customer credits	10.1			(8.0		)
Amortization of debt issuance costs and debt discount	9.4			4.8
Other operating activities	(1.8		)	(0.6		)
Changes in operating assets and liabilities:
Accounts receivable	(47.1		)	(8.9		)
Prepaid expenses and other current assets	2.9			11.5
Accounts payable, accrued expenses, and other current liabilities	(31.8		)	19.1
Deferred revenue	(9.0		)	16.5
Operating lease liabilities	(33.7		)	(31.9		)
Other non-current assets and liabilities	12.9			8.2
Net cash provided by operating activities	98.8			208.9
Cash Flows From Investing Activities
Purchases of property, equipment and software	(66.4		)	(66.0		)
Proceeds from sale of land	—			31.3
Other investing activities	3.6			3.0
Net cash used in investing activities	(62.8		)	(31.7		)
Cash Flows From Financing Activities
Proceeds from issuance of common stock, net	0.5			—
Proceeds from employee stock plans	—			43.9
Shares of common stock withheld for employee taxes	(0.6		)	—
Proceeds from borrowings under long-term debt arrangements	310.0			2,838.5
Payments on long-term debt	(259.5		)	(2,866.4		)
Payments for debt issuance costs	(1.0		)	(34.5		)
Payments on financing component of interest rate swap	—			(4.3		)
Principal payments of finance lease liabilities	(7.1		)	(21.4		)
Proceeds from financing obligations	20.9			—
Principal payments of financing obligations	(19.9		)	(22.6		)
Net cash provided by (used in) financing activities	43.3			(66.8		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1.7		)	(0.4		)
Increase in cash, cash equivalents, and restricted cash	77.6			110.0
Cash, cash equivalents, and restricted cash at beginning of period	87.1			108.1
Cash, cash equivalents, and restricted cash at end of period	$	164.7		$	218.1

Supplemental Cash Flow Information
Cash payments for interest, net of amount capitalized	$	131.4		$	90.6
Cash payments for income taxes, net of refunds	$	8.1		$	6.5

Non-cash Investing and Financing Activities
Acquisition of property, equipment and software by finance leases	$	42.5		$	38.4
Acquisition of property, equipment and software by financing obligations	19.9			40.1
Decrease in property, equipment and software accrued in liabilities	(2.6		)	(3.7		)
Non-cash purchases of property, equipment and software	$	59.8		$	74.8

Non-cash increase in buildings within property, equipment and software, net due to lease modification	$	220.3		$	—
Other non-cash investing and financing activities	$	2.3		$	0.3

REVENUE BY SEGMENT

	Three Months Ended June 30,				% Change
(In millions, except %)	2020		2021		Actual		Constant Currency ⁽¹⁾
Multicloud Services	$	519.0	$	605.1	16.6	%	14.6	%
Apps & Cross Platform	79.9		92.7		16.1	%	15.0	%
Core Revenue	598.9		697.8		16.5	%	14.6	%
OpenStack Public Cloud	57.6		46.0		(20.1	)%	(21.9	)%
Total	$	656.5	$	743.8	13.3	%	11.4	%

(1) Refer to “Non-GAAP Financial Measures” in this section for further explanation and reconciliation.

	Six Months Ended June 30,				% Change
(In millions, except %)	2020		2021		Actual		Constant Currency ⁽¹⁾
Multicloud Services	$	1,026.9	$	1,184.7	15.4	%	13.7	%
Apps & Cross Platform	161.4		190.0		17.8	%	16.9	%
Core Revenue	1,188.3		1,374.7		15.7	%	14.1	%
OpenStack Public Cloud	120.9		95.0		(21.4	)%	(22.8	)%
Total	$	1,309.2	$	1,469.7	12.3	%	10.7	%

(1) Refer to “Non-GAAP Financial Measures” in this section for further explanation and reconciliation.

NON-GAAP GROSS PROFIT BY SEGMENT

	Three Months Ended June 30,										Year-Over-Year Comparison
(In millions, except %)	2021					2021
Non-GAAP gross profit by segment:	Amount			% of Segment Revenue		Amount			% of Segment Revenue		Amount			% Change
Multicloud Services	$	200.7		38.7	%	$	202.0		33.4	%	$	1.3		0.6	%
Apps & Cross Platform	27.0			33.8	%	32.0			34.5	%	5.0			18.5	%
OpenStack Public Cloud	23.7			41.1	%	16.1			35.0	%	(7.6		)	(32.1	)%
Non-GAAP Gross Profit ⁽¹⁾	251.4					250.1					(1.3		)	(0.5	)%
Less:
Share-based compensation expense	(2.3		)			(4.3		)
Other compensation expense ⁽²⁾	(1.5		)			(0.4		)
Purchase accounting impact on expense ⁽³⁾	(1.6		)			(1.2		)
Restructuring and transformation expenses ⁽⁴⁾	(4.1		)			(8.7		)
Total consolidated gross profit	$	241.9				$	235.5

(1	)	Refer to “Non-GAAP Financial Measures” in this section for further explanation.
(2	)	Adjustments for retention bonuses, mainly in connection with restructuring and transformation projects, and the related payroll tax, and payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(3	)	Adjustment for the impact of purchase accounting from the November 2016 merger on expenses.
(4	)	Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses.

	Three Months Ended June 30,										Year-Over-Year Comparison
(In millions, except %)	2021					2020					Year-Over-Year Comparison
Non-GAAP gross profit by segment:		Amount		% of Segment Revenue			Amount		% of Segment Revenue			Amount		% Change
Multicloud Services	$	397.5		38.7	%	$	398.4		33.6	%	$	0.9		0.2	%
Apps & Cross Platform	57.1			35.4	%	66.9			35.2	%	9.8			17.2	%
OpenStack Public Cloud	53.0			43.8	%	34.7			36.5	%	(18.3		)	(34.5	)%
Non-GAAP Gross Profit ⁽¹⁾	507.6					500.0					(7.6		)	(1.5	)%
Less:
Share-based compensation expense	(4.1		)			(9.2		)
Other compensation expense ⁽²⁾	(3.4		)			(1.7		)
Purchase accounting impact on expense ⁽³⁾	(3.5		)			(2.4		)
Restructuring and transformation expenses ⁽⁴⁾	(5.4		)			(15.9		)
Total consolidated gross profit	$	491.2				$	470.8

(1	)	Refer to “Non-GAAP Financial Measures” in this section for further explanation.
(2	)	Adjustments for retention bonuses, mainly in connection with restructuring and transformation projects, and the related payroll tax, and payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(3	)	Adjustment for the impact of purchase accounting from the November 2016 merger on expenses.
(4	)	Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses.

KEY OPERATING METRICS

	Three Months Ended June 30,
(In millions, except %)	2020		2021
Bookings	$	288.5	$	258.2
Annualized Recurring Revenue (ARR)	$	2,492.9	$	2,817.1

NON-GAAP FINANCIAL MEASURES

Constant Currency Revenue

We use constant currency revenue as an additional metric for understanding and assessing our growth excluding the effect of foreign currency rate fluctuations on our international business operations. Constant currency information compares results between periods as if exchange rates had remained constant period over period and is calculated by translating the non-U.S. dollar income statement balances for the most current period to U.S. dollars using the average exchange rate from the comparative period rather than the actual exchange rates in effect during the respective period. We also believe this is an important metric to help investors evaluate our performance in comparison to prior periods.

	Three Months Ended June 30, 2020		Three Months Ended June 30, 2021							% Change
(In millions, except %)	Revenue		Revenue		Foreign Currency Translation ^(a)			Revenue in Constant Currency		Actual		Constant Currency
Multicloud Services	$	519.0	$	605.1	$	(10.5	)	$	594.6	16.6	%	14.6	%
Apps & Cross Platform	79.9		92.7		(0.9		)	91.8		16.1	%	15.0	%
OpenStack Public Cloud	57.6		46.0		(1.0		)	45.0		(20.1	)%	(21.9	)%
Total	$	656.5	$	743.8	$	(12.4	)	$	731.4	13.3	%	11.4	%

(a)	The effect of foreign currency is calculated by translating current period results using the average exchange rate from the prior comparative period.

	Six Months Ended June 30, 2020		Six Months Ended June 30, 2021							% Change
(In millions, except %)	Revenue		Revenue		Foreign Currency Translation ^(a)			Revenue in Constant Currency		Actual		Constant Currency
Multicloud Services	$	1,026.9	$	1,184.7	$	(17.2	)	$	1,167.5	15.4	%	13.7	%
Apps & Cross Platform	161.4		190.0		(1.4		)	188.6		17.8	%	16.9	%
OpenStack Public Cloud	120.9		95.0		(1.6		)	93.4		(21.4	)%	(22.8	)%
Total	$	1,309.2	$	1,469.7	$	(20.2	)	$	1,449.5	12.3	%	10.7	%

(a)	The effect of foreign currency is calculated by translating current period results using the average exchange rate from the prior comparative period.

Non-GAAP Gross Profit

Our principal measure of segment profitability is segment non-GAAP gross profit. We also present Non-GAAP Gross Profit, which is the aggregate of segment non-GAAP gross profit, because we believe the measure is useful in analyzing trends in our underlying, recurring gross margins. We define Non-GAAP Gross Profit as our consolidated gross profit, adjusted to exclude the impact of share-based compensation expense and other non-recurring or unusual compensation items, purchase accounting-related effects, and certain business transformation-related costs. For a reconciliation of our Non-GAAP Gross Profit to our total consolidated gross profit, see “Non-GAAP Gross Profit by Segment” above.

Non-GAAP Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA

We present Non-GAAP Net Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA because they are a basis upon which management assesses our performance and we believe they are useful to evaluating our financial performance. We believe that excluding items from net income that may not be indicative of, or are unrelated to, our core operating results, and that may vary in frequency or magnitude, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.

We define Non-GAAP Net Income (Loss) as net income (loss) adjusted to exclude the impact of non-cash charges for share-based compensation, special bonuses and other compensation expense, transaction-related costs and adjustments, restructuring and transformation charges, management fees, the amortization of acquired intangible assets and certain other non-operating, non-recurring or non-core gains and losses, as well as the tax effects of these non-GAAP adjustments.

We define Non-GAAP Operating Profit as net income (loss), plus interest expense and income taxes, further adjusted to exclude the impact of non-cash charges for share-based compensation, special bonuses and other compensation expense, transaction-related costs and adjustments, restructuring and transformation charges, management fees, the amortization of acquired intangible assets and certain other non-operating, non-recurring or non-core gains and losses.

We define Adjusted EBITDA as Non-GAAP Operating Profit plus depreciation and amortization.

Non-GAAP Operating Profit and Adjusted EBITDA are management’s principal metrics for measuring our underlying financial performance. Adjusted EBITDA, along with other quantitative and qualitative information, is also the principal financial measure used by management and our board of directors in determining performance-based compensation for our management and key employees.

These non-GAAP measures are not intended to imply that we would have generated higher income or avoided net losses if the November 2016 merger and the subsequent transactions and initiatives had not occurred. In the future we may incur expenses or charges such as those added back to calculate Non-GAAP Net Income (Loss), Non-GAAP Operating Profit or Adjusted EBITDA. Our presentation of Non-GAAP Net Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these items. Other companies, including our peer companies, may calculate similarly-titled measures in a different manner from us, and therefore, our non-GAAP measures may not be comparable to similarly-titled measures of other companies. Investors are cautioned against using these measures to the exclusion of our results in accordance with GAAP.

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2020			2021			2020			2021
Net loss	$	(32.6	)	$	(36.6	)	$	(80.8	)	$	(100.6	)
Share-based compensation expense	9.1			20.4			16.6			37.6
Special bonuses and other compensation expense ^(a)	5.8			3.0			14.1			7.0
Transaction-related adjustments, net ^(b)	8.1			6.9			16.5			15.3
Restructuring and transformation expenses ^(c)	22.1			39.1			37.1			77.7
Management fees ^(d)	3.5			—			7.1			—
Gain on sale of land	—			—			—			(19.9		)
Net (gain) loss on divestiture and investments ^(e)	(1.0		)	(0.1		)	(0.9		)	3.6
Debt modification and extinguishment costs ^(f)	—			0.5			—			37.5
Other (income) expense, net ^(g)	(0.3		)	(0.6		)	0.3			1.2
Amortization of intangible assets ^(h)	44.0			47.1			88.2			93.5
Tax effect of non-GAAP adjustments ⁽ⁱ⁾	(24.4		)	(28.8		)	(36.9		)	(52.9		)
Non-GAAP Net Income	34.3			50.9			61.3			100.0
Interest expense	68.9			50.5			140.9			103.1
Benefit for income taxes	(12.3		)	(10.8		)	(15.3		)	(17.7		)
Tax effect of non-GAAP adjustments ⁽ⁱ⁾	24.4			28.8			36.9			52.9
Non-GAAP Operating Profit	115.3			119.4			223.8			238.3
Depreciation ^(j)	72.3			59.9			149.4			121.2
Adjusted EBITDA	$	187.6		$	179.3		$	373.2		$	359.5

(a)	Includes expense related to retention bonuses, mainly relating to restructuring and integration projects, and the related payroll tax, senior executive signing bonuses and relocation costs, and payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(b)	Includes legal, professional, accounting and other advisory fees related to the acquisition of Onica in the fourth quarter of 2019 and the IPO in the third quarter of 2020, integration costs of acquired businesses, purchase accounting adjustments (including deferred revenue fair value discount), payroll costs for employees that dedicate significant time to supporting these projects and exploratory acquisition and divestiture costs and expenses related to financing activities.
(c)	Includes consulting and advisory fees related to business transformation and optimization activities, payroll costs for employees that dedicate significant time to these projects, as well as associated severance, facility closure costs and lease termination expenses.
(d)	Represents historical management fees pursuant to management consulting agreements. The management consulting agreements were terminated effective August 4, 2020, and therefore no management fees have accrued or will be payable for periods after August 4, 2020.
(e)	Includes gains and losses on investment and from dispositions.
(f)	Includes expenses related to the February 2021 Refinancing Transaction and termination of the Receivables Financing Facility.
(g)	Reflects mainly changes in the fair value of foreign currency derivatives.
(h)	All of our intangible assets are attributable to acquisitions, including the November 2016 merger.
(i)	We utilize an estimated structural long-term non-GAAP tax rate in order to provide consistency across reporting periods, removing the effect of non-recurring tax adjustments, which include but are not limited to tax rate changes, U.S. tax reform, share-based compensation, audit conclusions and changes to valuation allowances. When computing this long-term rate for the 2020 and 2021 interim periods, we based it on an average of the 2019 and estimated 2020 tax rates and 2020 and estimated 2021 tax rates, respectively, recomputed to remove the tax effect of non-GAAP pre-tax adjustments and non-recurring tax adjustments, resulting in a structural non-GAAP tax rate of 26% for all periods. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix including due to acquisition activity, or other changes to our strategy or business operations. We will re-evaluate our long-term non-GAAP tax rate as appropriate. We believe that making these adjustments facilitates a better evaluation of our current operating performance and comparisons to prior periods.
(j)	Excludes accelerated depreciation expense related to facility closures.

Non-GAAP Earnings Per Share (EPS)

We define Non-GAAP EPS as Non-GAAP Net Income divided by our GAAP weighted average number of shares outstanding for the period on a diluted basis and further adjusted for the weighted average number of shares associated with securities which are anti-dilutive to GAAP earnings per share but dilutive to Non-GAAP EPS. Management uses Non-GAAP EPS to evaluate the performance of our business on a comparable basis from period to period, including by adjusting for the impact of the issuance of shares that would be dilutive to Non-GAAP EPS.

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share amounts)	2020			2021			2020			2021
Net loss attributable to common stockholders	$	(32.6	)	$	(36.6	)	$	(80.8	)	$	(100.6	)
Non-GAAP Net Income	$	34.3		$	50.9		$	61.3		$	100.0

Weighted average number of shares – Diluted	165.5			207.9			165.4			206.2
Effect of dilutive securities ^(a)	1.9			5.4			1.4			6.0
Non-GAAP weighted average number of shares – Diluted	167.4			213.3			166.8			212.2

Net loss per share – Diluted	$	(0.20	)	$	(0.18	)	$	(0.49	)	$	(0.49	)
Per share impacts of adjustments to net loss ^(b)	0.41			0.42			0.86			0.97
Per share impacts of shares dilutive after adjustments to net loss ^(a)	(0.00		)	(0.00		)	(0.00		)	(0.01		)
Non-GAAP EPS	$	0.21		$	0.24		$	0.37		$	0.47

(a)

Reflects impact of awards that would have been anti-dilutive to Net loss per share, and therefore not included in the calculation, but would be dilutive to Non-GAAP EPS and are therefore included in the share count for purposes of this non-GAAP measure. Potential common share equivalents consist of shares issuable upon the exercise of stock options, vesting of restricted stock or purchase under the Employee Stock Purchase Plan (the “ESPP”), as well as contingent shares associated with our acquisition of Datapipe Parent, Inc. Certain of our potential common share equivalents are contingent on Apollo achieving pre-established performance targets based on a multiple of their invested capital (“MOIC”), which are included in the denominator for the entire period if such shares would be issuable as of the end of the reporting period assuming the end of the reporting period was the end of the contingency period.

(b)

Reflects the aggregate adjustments made to reconcile Non-GAAP Net Income to our net loss, as noted in the above table, divided by the GAAP diluted number of shares outstanding for the relevant period.

August 11, 2021 4:03 pm

Equillium Announces Update to EQUALISE Study of Itolizumab in Patients with Systemic Lupus Erythematosus and Lupus Nephritis

Equillium Announces Update to EQUALISE Study of Itolizumab in Patients with Systemic Lupus Erythematosus and Lupus Nephritis

Analysis of our Type A systemic lupus erythematosus patients without lupus nephritis that had elevated baseline urine protein/creatinine and albumin/creatinine ratios demonstrated a mean decrease of 42% and 53% respectively by Day 57 following two doses of Itolizumab

The Type B lupus nephritis cohort has been expanded to include newly diagnosed patients, in addition to refractory patients, and will evaluate a single subcutaneous dose level based on Type A PK/PD results

LA JOLLA, Calif.–(BUSINESS WIRE)–
Equillium, Inc. (Nasdaq: EQ), a clinical-stage biotechnology company developing itolizumab to treat severe autoimmune and inflammatory disorders with high unmet medical need, today announced additional data from the EQUALISE Type A portion of the study in systemic lupus erythematosus (SLE) patients. The exploratory data set shows that patients without a diagnosis of lupus nephritis (LN) but with elevated urine protein/creatine ratio (UPCR) >200 mg/g (N=6, baseline geometric mean 378 mg/g)¹ experienced a mean decrease from baseline in UPCR of 33% and 42% at Days 29 and 57 respectively, following subcutaneous doses of itolizumab on Days 1 and 15. Notably, one subject who had baseline UPCR of 1,505 mg/g declined to 974 mg/g at Day 29 and 857 mg/g by Day 57. Additionally, patients with elevated albumin/creatinine ratio (ACR) >30 mg/g (N=4, baseline geometric mean 97 mg/g)¹ experienced a mean decrease from baseline in ACR of 22% and 53% at Days 29 and 57 respectively.

“We are intrigued by this observation from our Type A portion of the study in SLE patients who did not have a diagnosis of lupus nephritis and entered the study with elevated proteinuria, and experienced reductions in UPCR and ACR following two doses of itolizumab,” said Dolca Thomas, executive vice president of research and development and chief medical officer of Equillium. “There is ongoing research in the field of rheumatology and nephrology that suggests patients who have elevated proteinuria with UPCR greater than 200 mg/g or ACR greater that 30 mg/g, which is below the typical diagnostic threshold for LN and other kidney diseases, may have subclinical disease – sometimes referred to as silent LN – where early intervention with a safe and active therapy may prevent more severe outcomes. We are continuing to analyze this exploratory data and look forward to initial results from active LN patients in the Type B portion of the EQUALISE study that is now enrolling.”

Equillium is implementing an amendment to the Type B portion of the EQUALISE study in LN patients to include newly diagnosed patients in addition to refractory patients. The study will evaluate up to 20 patients dosed at 1.6 mg/kg subcutaneously bi-weekly for up to 24 weeks. The selection of the 1.6 mg/kg dose was based on the totality of the safety, tolerability, and PK/PD data in the Type A portion of the study that demonstrated a plateau in the reduction of CD6 cell surface expression above the 0.8 mg/kg dose; as previously reported itolizumab was safe and well tolerated through the 2.4 mg/kg dose level. Equillium expects to announce interim data from the Type B portion of the study by the end of the year. Equillium has received fast track designation from the FDA for itolizumab for the treatment of patients with lupus nephritis.

¹Missing data: UPCR on one patient at Day 57, ACR on two patients at Day 29

About Systemic Lupus Erythematosus (SLE) / Lupus Nephritis (LN)

Systemic lupus erythematosus is an autoimmune disease in which the immune system attacks its own tissues, causing widespread inflammation and tissue damage in the affected organs. It can affect the joints, skin, brain, lungs, kidneys, and blood vessels. Lupus nephritis is a serious complication of SLE, occurring in approximately 30% – 60% of individuals with SLE. In LN, the body’s own immune system attacks the kidneys, causing inflammation and significantly reducing kidney function over time.

About the EQUALISE Study

The EQUALISE study is a Phase 1b open-label proof-of-concept multiple ascending-dose clinical study of itolizumab in patients with systemic lupus erythematosus and lupus nephritis. The study is evaluating the safety and tolerability of subcutaneous delivery of itolizumab in patients with systemic lupus erythematosus and lupus nephritis. The treatment period for patients with systemic lupus erythematosus is two weeks in duration, while treatment for patients with active proliferative lupus nephritis is 24 weeks in duration.

About Itolizumab

Itolizumab is a clinical-stage, first-in-class anti-CD6 monoclonal antibody that selectively targets the CD6-ALCAM pathway. This pathway plays a central role in modulating the activity and trafficking of T cells that drive a number of immuno-inflammatory diseases. Equillium acquired rights to itolizumab through an exclusive partnership with Biocon Limited.

About Equillium

Equillium is a clinical-stage biotechnology company leveraging deep understanding of immunobiology to develop novel products to treat severe autoimmune and inflammatory disorders with high unmet medical need. Equillium is developing itolizumab for multiple severe immuno-inflammatory diseases, including acute graft-versus-host-disease (aGVHD), lupus/lupus nephritis and uncontrolled asthma.

For more information, visit www.equilliumbio.com.

Forward Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “could”, “continue”, “expect”, “estimate”, “may”, “plan”, “outlook”, “future” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to statements regarding the potential benefit of treating patients with aGVHD, uncontrolled asthma, or lupus/lupus nephritis with itolizumab, Equillium’s plans and expected timing for developing itolizumab including the expected timing of initiating, completing and announcing further results from the EQUATE, EQUIP, and EQUALISE studies, the potential for any of Equillium’s ongoing or planned clinical studies to show safety or efficacy, statements regarding the impact of new leadership team members, Equillium’s anticipated timing of regulatory review and feedback, Equillium’s cash runway, and Equillium’s plans and expected timing for developing itolizumab and potential benefits of itolizumab. Risks that contribute to the uncertain nature of the forward-looking statements include: uncertainties related to the abilities of the leadership team to perform as expected; Equillium’s ability to execute its plans and strategies; risks related to performing clinical studies; the risk that interim results of a clinical study do not necessarily predict final results and that one or more of the clinical outcomes may materially change as patient enrollment continues, following more comprehensive reviews of the data, and as more patient data become available; potential delays in the commencement, enrollment and completion of clinical studies and the reporting of data therefrom; the risk that studies will not be completed as planned; Equillium’s plans and product development, including the initiation and completion of clinical studies and the reporting of data therefrom; whether the results from clinical studies will validate and support the safety and efficacy of itolizumab; changes in the competitive landscape; uncertainties related to Equillium’s capital requirements; and having to use cash in ways or on timing other than expected and the impact of market volatility on cash reserves. These and other risks and uncertainties are described more fully under the caption “Risk Factors” and elsewhere in Equillium’s filings and reports with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Equillium undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005792/en/

Investor Contact

Michael Moore

Vice President, Investor Relations & Corporate Communications

619-302-4431

[email protected]

Media Contacts

Aljanae Reynolds

Wheelhouse Life Science Advisors

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Clinical Trials

MEDIA:

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