Market Newsdesk

May 10, 2021 4:21 pm

Plug Power Provides Business Update

Record First Quarter 2021 with Gross Billings of Over $70 Million, Up More Than 60% Year-Over-Year; Reiterates Long-term Annual Gross Billings Targets

Continues to Work Expeditiously to Complete Previously Announced Financial Restatement and Expects to File 2020 Annual Report on Form 10-K Inclusive of the Restated Period Within the Next Five Days

Files Form 12b-25 to Extend Filing Date for First Quarter 2021 Form 10-Q

LATHAM, N.Y., May 10, 2021 (GLOBE NEWSWIRE) — Plug Power Inc. (NASDAQ: PLUG), a leading provider of turnkey hydrogen solutions building the global green hydrogen economy, today provided a business update as it works to complete its previously announced financial restatement and file its Form 10-K for the year ended December 31, 2020.

Plug Power continues to execute on its business objectives and remains well-positioned to leverage its industry leadership to capture a meaningful share of the $10T+ hydrogen economy. For the first quarter of 2021, the Company expects to report over $70 million in gross billings, a more than 60% increase from the first quarter of 2020, and expects to report over $67 million of net revenue, also a more than 60% increase from the first quarter of 2020. In addition, the Company maintains a strong balance sheet with over $5 billion of cash to fund future growth initiatives. The Company expects its second quarter gross billings to exceed $105 million, an approximate 50% increase from the second quarter of 2020, and expects to report over $102 million of net revenue, also an approximate 50% increase from the second quarter of 2020. The Company is reiterating its previously disclosed annual gross billings targets of $475 million in 2021, $750 million in 2022 and $1.7 billion in 2024.

Andy Marsh, Plug Power’s President and Chief Executive Officer, said, “The fundamentals of our business remain robust with record first quarter gross billings. As evidenced by the continued advancement of our strategic pipeline, we remain firmly committed to executing on our mission to build out the hydrogen economy in North America and beyond. We continue to deliver state-of-the-art fuel cell and green hydrogen solutions to our customers, and remain confident in the growth trajectory of the business. We are working to complete our previously announced financial restatement as expeditiously as possible.”

The Company’s business momentum is further reinforced by recent strategic partnerships, including:

An agreement with BAE Systems, a premier supplier and integrator of low and zero emission electric propulsion systems and application integration, to collaborate on supplying zero emission powertrains to heavy-duty transit bus original equipment manufacturers in North America. Plug Power will integrate its ProGen fuel cell engines into BAE Systems’ smart electric drive systems, providing hydrogen and refueling infrastructure to end-customers’ use points.
Finalizing Power Purchase Agreements with multiple strategic partners including Brookfield Renewables, APEX, NYPA and others, reflecting continued execution on building the first green hydrogen generation network in the U.S.
An agreement to develop two 15 ton per day liquefaction plants with Chart Industries, which will utilize Chart’s helium refrigeration technology, cold box design and rotating equipment. This positions the Company to have two hydrogen facilities operating by the end of 2022 as previously announced, and a technology platform to leverage for future hydrogen generation sites. These green hydrogen plants will be located in the Mid-Atlantic and Southeast U.S.
Formalizing the formation of the Company’s joint venture with Renault expected by the end of the second quarter for on-road light commercial vehicles in Europe.
Additionally, the Company expects to finalize joint ventures with SK for the Asian market and Acciona for hydrogen production in the Iberian Peninsula by the end of the third quarter.

Financial Restatement and Filing of Form 12b-25

As previously announced on March 16, 2021, the Company has determined to restate its previously issued financial statements for fiscal years 2018 and 2019 and its quarterly filings for 2019 and 2020, which will be disclosed in the Company’s Form 10-K for the year ended December 31, 2020, primarily relating to errors in accounting for various non-cash items, including:

The reported book value of right of use assets and related finance obligations;
Loss accruals for certain service contracts;
The impairment of certain long-lived assets; and,
The classification of certain costs, resulting in a decrease in research and development expense and a corresponding increase in cost of revenue.

As previously disclosed, the restatement is not expected to impact the Company’s cash position, business operations or economics of commercial arrangements, and the restatement does not change the fundamentals of the Company’s business or growth trends.

Plug Power is working expeditiously with its independent auditor, KPMG LLP, to complete the restatement and file its Form 10-K. Plug Power and KPMG currently expect that the Company will file its Form 10-K within the next five days.

Given the time and focus dedicated to the restatement process and the completion and filing of the Company’s 2020 Form 10-K, the Company requires additional time to complete its customary quarterly review and reporting process and the filing of its Form 10-Q for the first quarter ended March 31, 2021. As a result, the Company has filed a Form 12b-25 with the U.S. Securities and Exchange Commission to extend the Form 10-Q filing due date from May 10, 2021 to May 17, 2021. The Company is committed to filing its Form 10-Q as expeditiously as possible following the completion of its restatement and filing of its Form 10-K.

About Plug Power

Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. The Company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while meeting sustainability goals. Plug Power created the first commercially viable market for hydrogen fuel cell technology. As a result, the Company has deployed over 40,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs. Plug Power’s vertically-integrated GenKey solution ties together all critical elements to power, fuel, and provide service to customers such as Amazon, BMW, The Southern Company, Carrefour, and Walmart. The Company is now leveraging its know-how, modular product architecture and foundational customers to rapidly expand into other key markets including zero-emission on-road vehicles, robotics, and data centers. Learn more at www.plugpower.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements regarding the Company’s expectations regarding gross billings and revenue for the first and second quarters of 2021, and gross billings for the years 2021, 2022 and 2024, the Company’s strategic partnerships with BAE Systems, Brookfield Renewables, Apex, NYPA, Chart Industries, Renault, SK and Acciona, including expectations regarding the timing, completion and success of such partnerships, the nature and extent of the accounting changes and errors and the expected impact of the accounting changes and the restatement on the Company’s prior and future financial statements, financial position and results of operations, and the Company’s expected ability and timing of its filing of its 2020 Form 10-K and Q1 2021 Form 10-Q with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, the risk that additional information may arise prior to the filing of the restated financial statements; the final determination of the Audit Committee regarding matters relating to its internal review; the timing and ultimate conclusions of KPMG regarding the audit of the Company’s financial statements, the risk that the completion and filing of the Company’s Annual Report on Form 10-K and/or its Quarterly Report on Form 10-Q will take longer than expected, the risk of potential litigation or regulatory action arising from the Company’s failure to timely file its Annual Report on Form 10-K and/or its Quarterly Report on Form 10-Q; and the risks related to the restatement, including the potential impact on the Company’s reputation and its commercial relationships. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in the Company’s filings and reports with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2019, as amended and supplemented by the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, as well as other filings and reports that are filed by the Company from time to time with the SEC. Each forward-looking statement in this press release speaks only as of the date of the particular statement. The Company disclaims any obligation to update forward-looking statements except as may be required by law.

Gross billings is based on the invoice value of equipment deployed and services rendered. Invoice value of equipment is measured on a relative basis using cash value within contracts with customers and it is attributed to the period in which the equipment is deployed. To that amount, the Company adds the invoice value for services rendered in the period. These services include fuel provided, extended warranty contracts serviced, power provided under Power Purchase agreements, etc. The Company’s objective in presenting gross billings is to present to investors an operating metric that conveys commercial growth over time. Management also uses this operating metric as a measurement of commercial growth, as well as establishing performance targets, annual budgets and makes operating decisions based in part on gross billings. The significant estimates and assumptions underlying the metric include the allocation of revenue, excluding the provision for warrants, based on relative standalone selling prices used in our GAAP revenue numbers.

Media Contact

Andrea Rose / Clayton Erwin
Joele Frank, Wilkinson Brimmer Katcher
212-895-8666 / 212-895-8696
[email protected] / [email protected]

SOURCE: PLUG

May 10, 2021 4:21 pm

Brooks Automation Reports Results of Second Quarter of Fiscal 2021, Ended March 31, 2021, and Announces Quarterly Cash Dividend

Record Revenue and Continued Margin Expansion in Both Life Sciences and Semiconductor Solutions

PR Newswire

CHELMSFORD, Mass., May 10, 2021 /PRNewswire/ — Brooks Automation, Inc. (Nasdaq: BRKS) today reported financial results for the second fiscal quarter of 2021, ended March 31, 2021.



Financial Results Summary
	Quarter Ended
Dollars in millions, except per share data	March 31,		December 31,		March 31,		Change vs.
	2021		2020		2020		Prior Qtr		Prior Year
Revenue	$	287	$	250	$	220	15	%	30	%
Semiconductor Solutions	$	157	$	131	$	125	20	%	26	%
Life Sciences	$	130	$	118	$	95	10	%	36	%

Diluted EPS Continuing Operations	$	0.32	$	0.36	$	0.12	(12)	%	158	%
Diluted EPS Total	$	0.32	$	0.35	$	0.12	(9)	%	158	%

Non-GAAP Diluted EPS Continuing Operations	$	0.61	$	0.47	$	0.25	30	%	145	%

Adjusted EBITDA	$	71	$	58	$	35	23	%	105	%

Today the Company also announced plans to separate into two independent, publicly traded companies by establishing a standalone life sciences company, comprised of the Life Sciences business and a standalone automation company, comprised of the Semiconductor Solutions business. The separation is expected to be completed by end of the calendar year 2021 and does not affect the presentation of the financial statements included within this release. Please see the Company’s separate press release for further information.

Management Comments
“Record level revenue in the second quarter is yet another proof point of the strength and continued momentum of our Life Sciences and Semiconductor Solutions businesses,” commented Steve Schwartz, President and CEO. “While today’s separation announcement reflects years of strategic investment and innovation, we believe that the Life Sciences and Semiconductor Solutions businesses are now of size and scale to operate and benefit from their own standalone structures. Looking ahead, we see strong demand in both businesses supporting continued acceleration as we enter the second half of our fiscal year.”

Summary of GAAP Results

Second Quarter, Fiscal 2021

Revenue for the second quarter was $287 million, up 30% year over year, supported by growth in both Life Sciences and Semiconductor Solutions. Diluted EPS from continuing operations was $0.32 per share compared to $0.12 per share in the second quarter of 2020.
Life Sciences revenue of $130 million grew 36% year over year. Year-over-year organic growth was also 36%. Life Sciences Products grew 69% year over year, and Life Sciences Services grew 20%. Excluding the effect of the recent exit of the RUCDR alliance, Life Science Services grew 28%.
Semiconductor Solutions revenue was $157 million, an increase of 26% year over year.
Operating income was $31 million, compared to $15 million in the second quarter of 2020. Operating margin was 10.6%, up 400 basis points year over year and was driven by gross margin of 44.4%, up 340 basis points year over year. The gross profit result in the second quarter of 2021 includes a charge of approximately $5 million related to liabilities for import tariffs. Operating expenses in the quarter include approximately $12 million in unallocated corporate expenses related to strategic M&A initiatives, including the preparation to separate the two businesses.

In the following analysis of the non-GAAP results, Brooks adjusted the GAAP results to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers and/or representative of the normal operations of the business. In this context, the Company has removed the effect of the charge in the second quarter of 2021 related to liabilities for import tariffs related to imports in prior fiscal years. The cost of import tariffs which pertain to the current fiscal year imports remain in the results discussed below. A description of all adjustments and reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follow the consolidated balance sheets, statements of operations and statements of cash flows included in this release.

Summary of Non-GAAP Results for Continuing Operations

Second Quarter, Fiscal 2021

Diluted EPS for the second quarter was $0.61, up 145% year over year.
Operating income was $58 million, an increase of 124% year over year, and operating margin was 20.2%, up 850 basis points year over year. Gross margin of 47.1% was up 490 basis points year over year. Year-over-year gross margin expansion in both Life Sciences and Semiconductor Solutions drove this improvement.
Life Sciences operating margin was 19.0%, up from 8.5% in the prior year. The year-over-year improvement was driven by gross margin of 50.5%, up 460 basis points year over year. An additional 590 basis points improvement came from operating leverage, as revenue grew 36% year over year while operating expense only grew 15% year over year. The 460 basis point year-over-year improvement in Life Sciences gross margin was driven by performance improvement of 280 basis points and 180 basis points of favorable mix as a result of exiting the RUCDR alliance agreement.
Semiconductor Solutions operating margin was 21.2%, an increase of 780 basis points from the prior year. Gross margin was 44.4%, up 490 basis points year over year, driven by growth and favorable mix in vacuum robots and systems.
Adjusted EBITDA was $71 million, up 105% from the second quarter of 2020 and 23% sequentially.

Cash and Liquidity

Cash flow from operations was $34 million for the quarter, an increase of $9 million year over year, when excluding from the second quarter of fiscal year 2020 period, the $92 million of taxes paid by the Company related to its sale of the semiconductor cryogenics business in fiscal year 2019.
The Company ended the second fiscal quarter of 2021 with a total balance of cash, cash equivalents, restricted cash, and marketable securities of $334 million. With total debt of $50 million, net cash was $284 million. Subsequent to the quarter end, on April 29, 2021, the Company acquired Precise Automation, Inc. for $70 million in cash, subject to working capital and other adjustments.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on June 25, 2021 to stockholders of record on June 4, 2021. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors.

Guidance for Third Quarter Fiscal 2021
The Company announced revenue and earnings guidance for the third quarter of fiscal 2021. Revenue is expected to be in the range of $300 million to $320 million and non-GAAP diluted earnings per share is expected to be in the range of $0.65 to $0.75. GAAP diluted earnings per share for the third fiscal quarter is expected to be in the range of $0.46 to $0.56.

Conference Call and Webcast
Brooks management will webcast its second quarter earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company’s financial performance, business conditions and industry outlook. Management’s responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks’ website at www.brooks.investorroom.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-913-8744 (US & Canada only) or +1-212-271-4615 for international callers to listen to the live webcast.

Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analysis provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.

“Safe Harbor Statement” under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks’ financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, and our ability to deliver financial success in the future. Factors that could cause results to differ from our expectations include the following: the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally, the volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions, and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release.

About Brooks Automation
Brooks (Nasdaq: BRKS) is a leading provider of life science sample-based solutions and semiconductor manufacturing solutions worldwide. The Company’s Life Sciences business provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry’s top pharmaceutical, biotech, academic and healthcare institutions globally. Brooks Life Sciences’ GENEWIZ division is a leading provider of gene sequencing and gene synthesis services. With over 40 years as a partner to the semiconductor manufacturing industry, Brooks is a provider of industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world’s leading semiconductor chip makers and equipment manufacturers. Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe and Asia. For more information, visit www.brooks.com.

BROOKS INVESTOR CONTACTS:

Sara Silverman

Director of Investor Relations
Brooks Automation
978.262.2635
[email protected]

Sherry Dinsmore

Brooks Automation
978.262.4301
[email protected]

BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Revenue
Products	$	190,369	$	139,144	$	349,985	$	271,006
Services		96,217		81,083		186,104		159,721
Total revenue		286,586		220,227		536,089		430,727
Cost of revenue
Products		105,581		83,970		197,084		163,941
Services		53,731		45,976		98,603		91,519
Total cost of revenue		159,312		129,946		295,687		255,460
Gross profit		127,274		90,281		240,402		175,267
Operating expenses
Research and development		16,943		15,322		33,026		29,723
Selling, general and administrative		79,734		59,809		145,763		119,152
Restructuring charges		92		578		179		1,154
Total operating expenses		96,769		75,709		178,968		150,029
Operating income		30,505		14,572		61,434		25,238
Interest income		18		137		94		836
Interest expense		(452)		(718)		(1,008)		(1,455)
Other income (expenses), net		149		(1,399)		1,478		(1,816)
Income before income taxes		30,220		12,592		61,998		22,803
Income tax provision		6,288		3,400		11,058		437
Income from continuing operations		23,932		9,192		50,940		22,366
Loss from discontinued operations, net of tax		(184)		(65)		(1,164)		(182)
Net income	$	23,748	$	9,127	$	49,776	$	22,184
Basic net income per share:
Income from continuing operations	$	0.32	$	0.12	$	0.69	$	0.30
Loss from discontinued operations, net of tax		(0.00)		(0.00)		(0.02)		(0.00)
Basic net income per share	$	0.32	$	0.12	$	0.67	$	0.30
Diluted net income per share:
Income from continuing operations	$	0.32	$	0.12	$	0.68	$	0.30
Loss from discontinued operations, net of tax		(0.00)		(0.00)		(0.02)		(0.00)
Diluted net income per share	$	0.32	$	0.12	$	0.67	$	0.30

Weighted average shares outstanding used in computing net income per share:
Basic		74,265		73,708		74,142		73,331
Diluted		74,414		73,789		74,367		73,752

BROOKS AUTOMATION, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data)

	March 31,		September 30,
	2021		2020

Assets
Current assets
Cash and cash equivalents	$	320,105	$	295,649
Marketable securities		101		67
Accounts receivable, net		225,389		188,291
Inventories		127,987		114,834
Prepaid expenses and other current assets		50,908		50,612
Total current assets		724,490		649,453
Property, plant and equipment, net		132,420		117,665
Long-term marketable securities		3,485		3,101
Long-term deferred tax assets		9,864		4,979
Goodwill		513,093		501,536
Intangible assets, net		209,899		218,325
Other assets		70,845		64,066
Total assets	$	1,664,096	$	1,559,125
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of long-term debt	$	414	$	827
Accounts payable		77,741		61,758
Deferred revenue		36,793		31,357
Accrued warranty and retrofit costs		8,044		8,201
Accrued compensation and benefits		38,504		43,267
Accrued restructuring costs		58		181
Accrued income taxes payable		23,889		10,094
Accrued expenses and other current liabilities		80,203		55,433
Total current liabilities		265,646		211,118
Long-term debt		49,653		49,588
Long-term tax reserves		19,707		19,168
Long-term deferred tax liabilities		15,442		17,798
Long-term pension liabilities		6,353		6,406
Long-term operating lease liabilities		32,749		31,855
Other long-term liabilities		8,520		9,578
Total liabilities		398,070		345,511
Stockholders’ Equity
Preferred stock, $0.01 par value – 1,000,000 shares authorized, no shares issued or outstanding		—		—
Common stock, $0.01 par value – 125,000,000 shares authorized, 87,755,666 shares issued and 74,293,797 shares outstanding at March 31, 2021, 87,293,710 shares issued and 73,831,841 shares outstanding at September 30, 2021		878		873
Additional paid-in capital		1,959,619		1,942,850
Accumulated other comprehensive income		22,637		21,919
Treasury stock at cost – 13,461,869 shares		(200,956)		(200,956)
Accumulated deficit		(516,152)		(551,072)
Total stockholders’ equity		1,266,026		1,213,614
Total liabilities and stockholders’ equity	$	1,664,096	$	1,559,125

BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)

	Six Months Ended
	March 31,
	2021		2020
Cash flows from operating activities
Net income	$	49,776	$	22,184
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		31,543		33,079
Stock-based compensation		14,191		8,624
Amortization of premium on marketable securities and deferred financing costs		113		94
Deferred income taxes		(10,161)		(9,477)
Other gains on disposals of assets		51		125
Adjustment to the gain on divestiture, net of tax		948		319
Taxes paid stemming from divestiture		—		(91,500)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(35,033)		(12,670)
Inventories		(11,301)		(9,094)
Prepaid expenses and current assets		3,157		5,374
Accounts payable		14,136		5,807
Deferred revenue		4,659		(1,478)
Accrued warranty and retrofit costs		(261)		735
Accrued compensation and tax withholdings		(5,371)		(522)
Accrued restructuring costs		(124)		(112)
Accrued expenses and current liabilities		21,619		8,455
Net cash provided by (used in) operating activities		77,942		(40,057)
Cash flows from investing activities
Purchases of property, plant and equipment		(25,531)		(21,170)
Purchases of marketable securities		(75)		(10,843)
Sales of marketable securities		25		2,492
Maturities of marketable securities		—		42,226
Adjustment to proceeds from divestiture		(1,802)		—
Acquisitions, net of cash acquired		(15,061)		(15,743)
Issuance of a note receivable		—		(1,000)
Net cash used in investing activities		(42,444)		(4,038)
Cash flows from financing activities
Proceeds from term loans, net of discount		—		—
Proceeds from issuance of common stock		2,583		2,330
Payments of financing costs		—		—
Principal payments on debt		(414)		(414)
Payments of finance leases		(638)		(639)
Common stock dividends paid		(14,856)		(14,747)
Net cash used in financing activities		(13,325)		(13,470)
Effects of exchange rate changes on cash and cash equivalents		6,051		(1,803)
Net increase (decrease) in cash, cash equivalents and restricted cash		28,224		(59,368)
Cash, cash equivalents and restricted cash, beginning of period		302,526		305,171
Cash and cash equivalents and restricted cash, end of period	$	330,750	$	245,803

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	320,105	$	242,274
Short-term restricted cash included in prepaid expenses and other current assets		3,570		3,529
Long-term restricted cash included in other assets		7,075		—
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	330,750	$	245,803

Notes on Non-GAAP Financial Measures:
These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. For the three and six months ended March 31, 2021, management has excluded a charge related to liabilities for import tariffs related to imports in prior fiscal years. The cost of import tariffs which pertain to the current fiscal year imports were not removed from non-GAAP results. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.

	Quarter Ended
	March 31, 2021					December 31, 2020					March 31, 2020
Dollars in thousands, except per share data	$			per diluted share		$			per diluted share		$			per diluted share
Net income from continuing operations	$	23,932		$	0.32	$	27,007		$	0.36	$	9,192		$	0.12
Adjustments:
Amortization of intangible assets		9,920			0.13		9,745			0.13		10,355			0.14
Restructuring charges		92			0.00		87			0.00		578			0.01
Tariff adjustment		5,497			—		—			—		—			—
Merger and acquisition costs		11,843			0.16		2,991			0.04		279			0.00
Tax adjustments ⁽¹⁾		639			0.01		(1,999)			(0.03)		1,046			0.01
Tax effect of adjustments		(6,283)			(0.08)		(2,880)			(0.04)		(2,997)			(0.04)
Non-GAAP adjusted net income from continuing operations	$	45,640		$	0.61	$	34,951		$	0.47	$	18,453		$	0.25
Stock based compensation, pre-tax		6,710			0.09		6,710			0.09		4,214			0.06
Tax rate		15	%		—		15	%		—		15	%		—
Stock-based compensation, net of tax		5,704			0.08		5,704			0.08		3,582			0.05
Non-GAAP adjusted net income excluding stock-based compensation – continuing operations	$	51,344		$	0.69	$	40,655		$	0.55	$	22,035		$	0.30

Shares used in computing non-GAAP diluted net income per share		—			74,414		—			74,283		—			73,789


	Six Months Ended
	March 31, 2021					March 31, 2020
Dollars in thousands, except per share data	$			per diluted share		$			per diluted share
Net income from continuing operations	$	50,940		$	0.68	$	22,366		$	0.30
Adjustments:
Amortization of intangible assets		19,665			0.26		20,940			0.28
Restructuring charges		179			0.00		1,154			0.02
Tariff adjustment		5,497			0.07		—			—
Merger and acquisition costs		14,834			0.20		473			0.01
Tax adjustments ⁽¹⁾		(1,359)			(0.02)		(4,167)			(0.06)
Tax effect of adjustments		(9,165)			(0.12)		(5,676)			(0.08)
Non-GAAP adjusted net income from continuing operations	$	80,591		$	1.08	$	35,090		$	0.48
Stock-based compensation, pre-tax		14,191			0.19		8,624			0.12
Tax rate		15	%		—		15	%		—
Stock-based compensation, net of tax		12,062		$	0.16		7,330			0.10
Non-GAAP adjusted net income excluding stock-based compensation – continuing operations	$	92,653		$	1.25	$	42,420		$	0.58

Shares used in computing non-GAAP diluted net income per share		—			74,367		—			73,752

(1)

Tax adjustments primarily related to stock compensation windfall benefit. The Company elected to apply the tax benefit related to the stock compensation windfall realized in the quarters ended March 31, 2021 and 2020 to the non-GAAP full year tax rate. The Company elected to exclude a deferred tax benefit realized in the three month period ended March 31, 2020 related to the extension of the 15 percent tax rate incentive in China.


	Quarter Ended						Six Months Ended
	March 31,		December 31,		March 31,		March 31,		March 31,
Dollars in thousands	2021		2020		2020		2021		2020
GAAP net income	$	23,748	$	26,028	$	9,127	$	49,776	$	22,184
Adjustments:
Less: Loss from discontinued operations		184		979		65		1,164		182
Less: Interest income		(18)		(76)		(137)		(94)		(836)
Add: Interest expense		452		556		718		1,008		1,455
Add: Income tax benefit		6,288		4,770		3,400		11,058		437
Add: Depreciation		5,877		6,001		6,247		11,878		12,139
Add: Amortization of completed technology		2,319		2,389		2,740		4,708		5,415
Add: Amortization of customer relationships and acquired intangible assets		7,601		7,356		7,615		14,957		15,525
Earnings before interest, taxes, depreciation and amortization	$	46,451	$	48,003	$	29,775	$	94,455	$	56,501


	Quarter Ended						Six Months Ended
	March 31,		December 31,		March 31,		March 31,		March 31,
Dollars in thousands	2021		2020		2020		2021		2020
Earnings before interest, taxes, depreciation and amortization	$	46,451	$	48,003	$	29,775	$	94,455	$	56,501
Adjustments:
Add: Stock-based compensation		7,481		6,710		4,214		14,191		8,624
Add: Restructuring charges		92		87		578		179		1,154
Add: Merger and acquisition costs		11,843		2,991		279		14,834		473
Add: Tariff adjustment		5,497		—		—		5,497		—
Adjusted earnings before interest, taxes, depreciation and amortization	$	71,364	$	57,791	$	34,846	$	129,156	$	66,752


	Quarter Ended
Dollars in thousands	March 31, 2021				December 31, 2020				March 31, 2020
GAAP gross profit/margin percentage	$	127,274	44.4	%	$	113,128	45.3	%	$	90,281	41.0	%
Adjustments:
Amortization of completed technology		2,319	0.8			2,389	1.0			2,740	1.2
Tariff adjustment		5,497	1.9
Non-GAAP adjusted gross profit/gross margin percentage	$	135,090	47.1	%	$	115,517	46.3	%	$	93,021	42.2	%


	Six Months Ended
Dollars in thousands	March 31, 2021				March 31, 2020
GAAP gross profit/margin percentage	$	240,402	44.8	%	$	175,267	40.7	%
Adjustments:
Amortization of completed technology		4,708	0.9			5,415	1.3
Tariff adjustment		5,497	1.0
Non-GAAP adjusted gross profit/gross margin percentage	$	250,607	46.7	%	$	180,682	41.9	%


	Brooks Semiconductor Solutions Group
	Quarter Ended
Dollars in thousands	March 31, 2021				December 31, 2020				March 31, 2020
GAAP gross profit/margin percentage	$	69,413	44.2	%	$	55,789	42.5	%	$	48,637	38.9	%
Adjustments:
Amortization of completed technology		298	0.2			384	0.3			722	0.6
Non-GAAP adjusted gross profit/margin percentage	$	69,711	44.4	%	$	56,173	42.8	%	$	49,359	39.5	%


	Brooks Life Sciences Products												Brooks Life Sciences Services
	Quarter Ended												Quarter Ended
Dollars in thousands	March 31, 2021				December 31, 2020				March 31, 2020				March 31, 2021				December 31, 2020				March 31, 2020
GAAP gross profit/margin percentage	$	24,051	45.9	%	$	20,531	45.1	%	$	13,380	43.2	%	$	33,813	43.8	%	$	36,810	50.7	%	$	28,283	44.0	%
Adjustments:
Amortization of completed technology		280	0.5			273	0.6			292	0.9			1,741	2.3			1,732	2.4			1,725	2.7
Tariff adjustment		—	—											5,497	7.1			—	—			—	—
Non-GAAP adjusted gross profit/margin percentage	$	24,331	46.5	%	$	20,804	45.7	%	$	13,672	44.1	%	$	41,051	53.2	%	$	38,542	53.1	%	$	30,008	46.7	%


	Brooks Life Sciences Total
	Quarter Ended
Dollars in thousands	March 31, 2021				December 31, 2020				March 31, 2020
GAAP gross profit/margin percentage	$	57,864	44.7	%	$	57,341	48.5	%	$	41,663	43.7	%
Adjustments:
Amortization of completed technology		2,021	1.6			2,005	1.7			2,017	2.1
Tariff adjustment		5,497	4.2			—	—			—	—
Non-GAAP adjusted gross profit/margin percentage	$	65,382	50.5	%	$	59,346	50.2	%	$	43,680	45.8	%


	Brooks Semiconductor Solutions Group
	Six Months Ended
Dollars in thousands	March 31, 2021				March 31, 2020
GAAP gross profit/margin percentage	$	125,202	43.4	%	$	94,936	39.0	%
Adjustments:
Amortization of completed technology		682	0.2			1,455	0.6
Non-GAAP adjusted gross profit/margin percentage	$	125,884	43.6	%	$	96,391	39.5	%


	Brooks Life Sciences Products								Brooks Life Sciences Services
	Six Months Ended								Six Months Ended
Dollars in thousands	March 31, 2021				March 31, 2020				March 31, 2021				March 31, 2020
GAAP gross profit/margin percentage	$	44,582	45.6	%	$	25,758	42.4	%	$	70,623	47.1	%	$	54,590	43.2	%
Adjustments:
Amortization of completed technology		553	0.6			585	1.0			3,473	2.3			3,375	2.7
Tariff adjustment		—	—			—	—			5,497	3.7			—	—
Non-GAAP adjusted gross profit/margin percentage	$	45,135	46.1	%	$	26,343	43.4	%	$	79,593	53.1	%	$	57,965	45.9	%


	Brooks Life Sciences Total
	Six Months Ended
Dollars in thousands	March 31, 2021				March 31, 2020
GAAP gross profit/margin percentage	$	115,205	46.5	%	$	80,348	43.0	%
Adjustments:							–
Amortization of completed technology		4,026	1.6			3,960	2.1
		5,497	2.2			—	—
Non-GAAP adjusted gross profit/margin percentage	$	124,728	50.4	%	$	84,308	45.1	%


	Brooks Semiconductor Solutions Group						Brooks Life Sciences Products						Brooks Life Sciences Services						Brooks Life Sciences Total
	Quarter Ended						Quarter Ended						Quarter Ended						Quarter Ended
	March 31,		December 31,		March 31,		March 31,		December 31,		March 31,		March 31,		December 31,		March 31,		March 31,		December 31,		March 31,
Dollars in thousands	2021		2020		2020		2021		2020		2020		2021		2020		2020		2021		2020		2020
GAAP operating profit	$	33,004	$	21,154	$	15,984	$	10,935	$	7,669	$	1,852	$	6,168	$	12,579	$	4,248	$	17,103	$	20,248	$	6,100
Adjustments:
Amortization of completed technology		298		384		722		280		273		292		1,741		1,732		1,725		2,021		2,005		2,017
Tariff adjustment		—		—		—		—		—		—		5,497		—		—		5,497		—		—
Non-GAAP adjusted operating profit	$	33,302	$	21,538	$	16,706	$	11,215	$	7,942	$	2,144	$	13,406	$	14,311	$	5,973	$	24,621	$	22,253	$	8,117


	Total Segments						Corporate						Total
	Quarter Ended						Quarter Ended						Quarter Ended
	March 31,		December 31,		March 31,		March 31,		December 31,		March 31,		March 31,		December 31,		March 31,
Dollars in thousands	2021		2020		2020		2021		2020		2020		2021		2020		2020
GAAP operating profit (loss)	$	50,107	$	41,402	$	22,084	$	(19,602)	$	(10,474)	$	(7,512)	$	30,505	$	30,928	$	14,572
Adjustments:
Amortization of completed technology		2,319		2,389		2,739		—		—		—		2,319		2,389		2,739
Tariff adjustment		5,497		—		—		—		—		—		5,497		—		—
Amortization of customer relationships and acquired intangible assets		—		—		—		7,601		7,356		7,615		7,601		7,356		7,615
Restructuring charges		—		—		—		92		87		578		92		87		578
Merger and acquisition costs		—		—		—		11,843		2,991		279		11,843		2,991		279
Non-GAAP adjusted operating profit (loss)	$	57,923	$	43,791	$	24,823	$	(66)	$	(40)	$	960	$	57,857	$	43,751	$	25,783


	Brooks Semiconductor Solutions Group				Brooks Life Sciences Products				Brooks Life Sciences Services				Brooks Life Sciences Total
	Six Months Ended				Six Months Ended				Six Months Ended				Six Months Ended
Dollars in thousands	March 31,		March 31,		March 31,		March 31,		March 31,		March 31,		March 31,		March 31,
	2021		2020		2021		2020		2021		2020		2021		2020
GAAP operating profit	$	54,158	$	30,252	$	18,604	$	1,921	$	18,747	$	8,211	$	37,351	$	10,132
Adjustments:
Amortization of completed technology		682		1,455		553		585		3,473		3,375		4,026		3,960
Tariff adjustment		—		—		—		—		5,497		—		5,497		—
Non-GAAP adjusted operating profit	$	54,840	$	31,707	$	19,157	$	2,506	$	27,717	$	11,586	$	46,874	$	14,092


	Total Segments				Corporate				Total
	Six Months Ended				Six Months Ended				Six Months Ended
Dollars in thousands	March 31,		March 31,		March 31,		March 31,		March 31,		March 31,
	2021		2020		2021		2020		2021		2020
GAAP operating profit (loss)	$	91,509	$	40,384	$	(30,075)	$	(15,146)	$	61,434	$	25,238
Adjustments:
Amortization of completed technology		4,708		5,415		—		—		4,708		5,415
Tariff adjustment		5,497		—		—		—		5,497		—
Amortization of customer relationships and acquired intangible assets		—		—		14,957		15,525		14,957		15,525
Restructuring charges		—		—		179		1,154		179		1,154
Merger and acquisition costs		—		—		14,834		473		14,834		473
Restructuring related charges		—		—		—		—		—		—
Non-GAAP adjusted operating profit (loss)	$	101,714	$	45,799	$	(105)	$	2,006	$	101,609	$	47,805

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SOURCE Brooks Automation

May 10, 2021 4:21 pm

Castle Biosciences Announces First Quarter 2021 Results

Castle Biosciences Announces First Quarter 2021 Results

Q1 2021 revenues of $22.8 million, compared to $17.4 million in Q1 2020

Q1 2021 total dermatology test report volume of 4,805

Initiates 2021 Revenue Guidance of $80-83 million

Q1 2021 gross margin of 87%

Conference call and webcast today at 4:30 p.m. ET

FRIENDSWOOD, Texas–(BUSINESS WIRE)–
Castle Biosciences, Inc. (Nasdaq: CSTL), a dermatologic diagnostics company providing personalized genomic information to improve treatment decisions, today announced its financial results for the first quarter ended March 31, 2021.

“We are pleased with our strong execution in the first quarter, with revenue increasing by 31% over the first quarter of 2020,” said Derek Maetzold, president and chief executive officer of Castle Biosciences. “In-line with our expectations, January and February were impacted, we believe, by COVID-19 and weather interruptions. However, we are encouraged by the positive trends that we are seeing. Specifically, we saw order volume for our DecisionDx®-Melanoma test increase by approximately 30% in March 2021, compared to January 2021, with March orders being the highest March since DecisionDx-Melanoma became commercially available. This positive trend continued in April, with April orders exceeding those of March. Additionally, we saw continued positive trends for our recently launched DecisionDx®-SCC and DecisionDx® DiffDx™-Melanoma tests. While there is continued uncertainty related to the impact of COVID-19 with regard to the timing of the return to historical levels of skin cancer diagnoses, we feel confident in providing 2021 revenue guidance of $80-83 million.

“We continue to make progress on our growth initiatives and remain focused on helping physicians answer clinical questions with high unmet need with the personalized, precise results our genomic tests are designed to provide. We believe our recent announcement of signing a definitive agreement to acquire Myriad’s myPath Melanoma laboratory, and the resulting addition of myPath® Melanoma test to our skin cancer test services, furthers our position as the leader in dermatologic diagnostics. And we believe this enables us to provide the most comprehensive offerings for patients with skin cancer and difficult-to-diagnose melanocytic lesions. Additionally, our pipeline initiative to develop an innovative test that can predict therapy response and guide treatment selection of systemic therapies in patients diagnosed with moderate to severe psoriasis, atopic dermatitis and related conditions has the potential to expand our reach into non-skin cancer, medical dermatology diseases and is expected to provide enhanced value to our clinical customers and their patients. These tests, along with our other pipeline products, have the potential to increase our estimated U.S. total addressable market to slightly more than $5.5 billion.

“Finally, I am pleased to announce that we completed our commercial team expansion ahead of schedule, with all new outside territories filled, doubling our total dermatology customer facing positions to approximately 60-65. Training is ongoing, and by July 1, we expect our expanded commercial team will be able to utilize our existing, dermatologic sales channels to offer clinicians and their patients four innovative, actionable gene expression profile tests designed to improve patient care.”

First Quarter Ended March 31, 2021, Selected Results

Revenues were $22.8 million, a 31% increase compared to $17.4 million during the same period in 2020. Included in revenue for the period were positive revenue adjustments related to tests delivered in prior periods. These positive prior period revenue adjustments for the three months ended March 31, 2021, were $5.3 million, compared to $3.2 million for the same period in 2020. Prior period revenues for the first quarter of 2021 includes favorable adjustments related to settlement of certain groups of receivables from prior years, in addition to other positive prior period revenue adjustments.
Adjusted revenues were $17.5 million, a 22% increase, excluding the effects of revenue adjustments related to tests delivered in prior periods, compared to $14.3 million for the same period in 2020.
Total gene expression profile test reports delivered in the first quarter of 2021 were 5,142, compared to 4,935 in the same period of 2020:
- DecisionDx-Melanoma test reports delivered in the first quarter of 2021 were 4,060, compared to 4,574, in the first quarter of 2020.
- DecisionDx-SCC test reports delivered in the first quarter of 2021 were 527.
- DecisionDx DiffDx-Melanoma test reports delivered in the first quarter of 2021 were 218.
- DecisionDx-UM test reports delivered in the first quarter of 2021 were 337, compared to 361 in the first quarter of 2020. Order volume for DecisionDx-UM increased by approximately 58% in March 2021, compared to January 2021.
Gross margin for the three months ended March 31, 2021, was 87%.
Adjusted gross margin for the three months ended March 31, 2021, was 83%.
Operating cash flow was $(3.6) million, compared to $(0.3) million for the same period in 2020.
Adjusted operating cash flow was $(5.5) million, compared to $(0.3) million for the same period in 2020.

Cash and Cash Equivalents

As of March 31, 2021, the Company’s cash and cash equivalents totaled $407 million.

2020 Revenue Guidance

Castle Biosciences anticipates generating $80-83 million in total revenue in 2021.

First Quarter and Recent Business and Clinical Evidence Highlights

On April 27, the Company announced it signed a definitive agreement to acquire all of the equity of Myriad myPath, LLC (Myriad myPath Laboratory), from Myriad Genetics. Myriad myPath Laboratory is a CLIA-certified laboratory in Salt Lake City, where the myPath Melanoma 23-gene expression profile (GEP) test is currently offered. With the acquisition, which is subject to customary closing conditions and is expected to close in late May 2021, Castle expects to make available the most comprehensive molecular testing offering for difficult-to-diagnose melanocytic lesions. See the Company’s news release from April 27, 2021, for more information.
On May 10, the Company announced the launch of its innovative pipeline initiative to develop a genomic test aimed at predicting systemic therapy response in patients with moderate to severe psoriasis, atopic dermatitis and related conditions. See the Company’s news release from earlier today for more information.
In April, at the 10^th World Congress of Melanoma, the Company presented data on three of its skin cancer tests, including from an independent validation study demonstrating the i31-GEP artificial intelligence algorithm improves precision of sentinel lymph node positivity prediction in cutaneous melanoma. The poster, titled “Integration of the 31-gene expression profile test with clinicopathologic features (i31-GEP) to assess sentinel lymph node positivity risk in patients with cutaneous melanoma,” highlights the i31-GEP validation study data and demonstrates that the algorithm provides a more precise, personalized likelihood of sentinel lymph node positivity. The poster can be accessed here.

Study methods and findings:
- The study reviewed the development and validation of the i31-GEP, which deploys a neural network algorithm to integrate the continuous DecisionDx-Melanoma score as well as other histologic and clinical features on a development cohort of 1,398 patients. The i31-GEP algorithm was locked using these 1,398 patients and was then independently validated on an independent, U.S. based cohort of 1,674 patients.
- The development phase identified that the DecisionDx-Melanoma score was the most important variable in predicting SLN positivity under both the variable importance assessment function (DecisionDx-Melanoma score = 100, Breslow thickness = 56, Mitotic rate = 25, ulceration = 83 and Age = 0; with 100 being the highest possible value) and log-likelihood value (DecisionDx-Melanoma score = 91.3, Breslow thickness = 53.5, Mitotic rate = 20.7, ulceration = 19.1 and Age = 10.5; with 100 being the highest possible value).
- The independent validation phase showed that the i31-GEP provides a highly concordant prediction of SLN positivity rate compared to observed rates (linear regression slope of 0.999, with 1.0 representing complete concordance).
- Of patients originally classified with 5-10% SLN positivity risk, i31-GEP reclassified 63% of those patients, whose actual risk of SLN positivity was outside that range in either direction (less than 5% or greater than 10%).
- i31-GEP had a high negative predictive value of 98% in patients with T1-T4 tumors.

Information about the additional data presentations can be found here on the Company’s news release from April 16,^2021.

Data from an independent, prospective study was published in the American Journal of Surgery, demonstrating DecisionDx-Melanoma’s utility for prediction of outcomes in patients with cutaneous melanoma. The publication, titled “Utility of a 31-gene expression profile for predicting outcomes in patients with primary cutaneous melanoma referred for sentinel node biopsy,” describes a study comparing tumor features, sentinel node biopsy (SLNB) results, and patient outcomes from a prospective database of 383 patients with cutaneous melanoma who both underwent SLNB and had their primary tumor assayed with DecisionDx-Melanoma. The study’s results demonstrated that a Class 2 (high-risk) DecisionDx-Melanoma result was significantly associated with higher rates of SLNB positivity compared to Class 1 (low risk). With respect to risk prognoses, patients who received a Class 2B DecisionDx-Melanoma result and were SLNB-positive experienced the highest recurrence rates (38%), compared to only a 2% recurrence rate for patients who were Class 1A and SLNB-negative. DecisionDx-Melanoma Class 2 results were significantly associated with poorer RFS and DMFS rates compared to Class 1 results, both in the entire cohort of 383 cases and in patients staged as “low risk” (IA-IIA) according to American Joint Committee on Cancer (AJCC) staging criteria. See the Company’s news release from April 14, 2021, for more information.
Publication of prospective, multi-center long-term outcomes data in cutaneous melanoma appeared in the peer-reviewed journal, JCO® Precision Oncology, and was titled “Long-term outcomes in a multicenter, prospective cohort evaluating the prognostic 31-gene expression profile for cutaneous melanoma.” The study’s key objective was to demonstrate the prognostic value of DecisionDx-Melanoma with long-term follow-up that extends the assessment time period for a previously studied cohort. The study achieved its primary objective and expanded upon prior results to show the ability of the test to accurately identifying recurrence risk of patients with American Joint Committee on Cancer (AJCC) 8^th Edition staging system early stage I-IIA disease. See the Company’s news release from April 13, 2021, for more information.
Publication of a cross-sectional study of dermatologists that found its respondents are increasingly incorporating DecisionDx®-Melanoma into the management of their patients with melanoma was published in SKIN: The Journal of Cutaneous Medicine and was titled, “Assessment of the 31-Gene Expression Profile Test by Dermatologists: A Cross-Sectional Survey from National Dermatology Conferences.” The cross-sectional study was offered to attendees of two national, virtual dermatology conferences during the end of 2020 and beginning of 2021 to assess the professional understanding, opinions and clinical usage of DecisionDx-Melanoma by dermatologists. Participants were asked questions regarding practice demographics, factors considered prior to ordering DecisionDx-Melanoma, their integration of the test’s results into clinical management and their opinions on the usefulness of the test. Participants who use DecisionDx-Melanoma indicated that they use the results to impact follow-up schedules, referrals, surveillance imaging, sentinel lymph node biopsy procedure recommendations and other treatment decisions. These uses largely follow published appropriate-use criteria for the test. Participants responded that patients gain various benefits from DecisionDx-Melanoma test results, including increased knowledge and understanding (70%), personalized treatment options (58%) and eased uncertainty about the future (59%). Even regarding test results indicating the lowest risk of recurrence (i.e., Class 1A), 66% of participants reported potential benefits for ameliorating patients’ anxiety and 46% reported increasing confidence in their management. See the Company’s news release from March 25, 2021, for more information.
In March 2021, the Company announced clinical availability of an artificial intelligence-based integrated DecisionDx-Melanoma test result. The Company validated the integration of clinicopathologic features with the tumor biology insights provided by the DecisionDx-Melanoma test. The integrated test result (ITR) is designed to provide a more precise risk prediction to further improve the clinical actionability by clinicians and their patients in helping to guide cancer management decisions. For more information, see the Company’s news release from March 8, 2021.
In February 2021, the Company presented data on DecisionDx-Melanoma at the 19th Annual South Beach Symposium:
- The first poster was entitled, “31-Gene expression profiling improves risk stratification in patients with T1 cutaneous melanoma.” Univariate analysis of the study data showed DecisionDx-Melanoma to be a stronger predictor of recurrence-free survival (RFS) than SLN status. Additionally, multivariable analysis showed DecisionDx-Melanoma to be a strong, independent predictor of RFS. With Class 2B RFS status similar to SLN positive status, Class 2B patients warrant follow-up strategies similar to SLN positive patients.
- The second DecisionDx-Melanoma poster was entitled, “The clinical and financial impact of the 31-gene expression profile testing on sentinel lymph node biopsy patients selection in patients with T1b cutaneous melanoma.” The authors analyzed all clinical DecisionDx-Melanoma tests that were reported from Jan. 3, 2019 through Sept. 4, 2020. The data showed that 75% of eligible patients with T1b tumors had a Class 1A result and could potentially forego sentinel lymph node biopsy (SLNB). The authors estimate that foregoing SLNB in these patients could reduce healthcare expenditures by up to $120 million in SLNB-related costs. For more information, see the Company’s news release from Feb. 4, 2021.
In January 2021, the Company presented data on DecisionDx-Melanoma and DecisionDx DiffDx-Melanoma at the 18th Annual Winter Clinical Dermatology Conference:
- The virtual poster for DecisionDx-Melanoma was entitled, “Identifying predictors of sentinel lymph node metastasis in cutaneous melanoma patients using molecular and clinicopathologic high-risk features.” For 3,093 patients with T1-T4 cutaneous melanoma, authors used decision tree analysis to determine which molecular and clinicopathologic features best stratify sentinel lymph node (SLN) positivity risk and demonstrated that DecisionDx-Melanoma was the most important feature in distinguishing between high and low SLN-positivity rates (p<0.001).
- The virtual poster for DecisionDx DiffDx-Melanoma was entitled, “Performance of a 35-gene expression profile test in suspicious pigmented lesions of the head and neck.” The study evaluated DecisionDx DiffDx-Melanoma’s accuracy in classifying pigmented lesions on the head and neck. The data demonstrated that DecisionDx DiffDx-Melanoma has the ability to be an effective tool for refining melanoma diagnoses on the head and neck and therefore improving downstream management decisions, as indicated by its high sensitivity and specificity in the study. For more information, see the Company’s news release from Jan. 20, 2021.
Also in January 2021, the Company presented data at the Maui Derm for Dermatologists 2021 conference:
- The virtual poster for DecisionDx-SCC was entitled, “Clinical utility of the 40-gene expression profile (40-GEP) for improved patient management decisions and disease related outcomes when combined with current clinicopathological risk factors for cutaneous squamous cell carcinoma (cSCC): Case Series.” Two SCC cases were presented that highlight DecisionDx-SCC’s utility in stratifying risk in SCC. The cases had very similar risk of metastasis at diagnosis as both presented with a history of immunosuppression and had identical staging (T2a per Brigham and Women’s Hospital staging; T1 per American Joint Committee on Cancer staging), but had divergent outcomes:
  - Case 1 did not recur, despite incomplete resection. This case had a low-risk (Class 1) DecisionDx-SCC result, consistent with the clinical outcome of no clinical progression.
  - Case 2 developed local recurrence and regional metastasis, and eventually died from SCC, despite clear surgical margins. This case had a highest-risk (Class 2B) DecisionDx-SCC result, consistent with clinical progression. The study authors concluded that incorporating DecisionDx-SCC as a prognostic factor with traditional clinicopathologic risk factors can improve stratification of high-risk SCC patients with at least one risk factor, thereby informing risk-appropriate management strategies.

Conference Call and Webcast Details

Castle Biosciences will hold a conference call on Monday, May 10, 2021, at 4:30 p.m. Eastern time to discuss its first quarter 2021 results and provide a corporate update.

A live webcast of the conference call can be accessed here: https://edge.media-server.com/mmc/p/p5gxkbjh or via the webcast link on the Investor Relations page of the Company’s website (www.castlebiosciences.com). Please access the webcast at least 10 minutes before the conference call start time. An archive of the webcast will be available on the Company’s website until June 1, 2021.

To access the live conference call via phone, please dial 877-282-2581 from the United States and Canada, or +1 470-495-9479 internationally, at least 10 minutes prior to the start of the call, using the conference ID 6526639.

There will be a brief Question & Answer session following management commentary.

Use of Non-GAAP Financial Measures (UNAUDITED)

In this release, we use the metrics of Adjusted Revenue, Adjusted Gross Margin and Adjusted Operating Cash Flow, which are non-GAAP financial measures and are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). Adjusted Revenue and Adjusted Gross Margin reflect adjustments to net revenues to exclude changes in variable consideration related to test reports delivered in previous periods. Adjusted Operating Cash Flow excludes the effects of cash activity associated with COVID-19 government relief payments to healthcare providers.

We use Adjusted Revenue, Adjusted Gross Margin and Adjusted Operating Cash Flow internally because we believe these metrics provide useful supplemental information in assessing our revenue and cash flow performance, respectively. We believe Adjusted Revenue and Adjusted Gross Margin are also useful to investors because they provide additional information on current-period performance by removing the effects of revenue adjustments related to tests delivered in previous periods, which we believe may facilitate revenue and gross margin comparisons to historical periods. We believe Adjusted Operating Cash Flow is also useful to investors as a supplement to GAAP measures in the assessment of our cash flow performance by removing the effects of COVID-19 government relief payments, which we believe are not indicative of our ongoing operations. However, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes. These non-GAAP financial measures are not meant to be substitutes for net revenues or net cash (used in) provided by operating activities reported in accordance with GAAP and should be considered in conjunction with our financial information presented on GAAP basis. Accordingly, investors should not place undue reliance on non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables at the end of this press release.

About Castle Biosciences

Castle Biosciences (Nasdaq: CSTL) is a commercial-stage dermatologic diagnostics company focused on providing physicians and their patients with personalized, clinically actionable genomic information to make more accurate treatment decisions. The Company currently offers tests for patients with cutaneous melanoma (DecisionDx^®-Melanoma, DecisionDx^®-CMSeq), cutaneous squamous cell carcinoma (DecisionDx^®-SCC), suspicious pigmented lesions (DecisionDx^®DiffDx™-Melanoma) and uveal melanoma (DecisionDx^®-UM, DecisionDx^®-PRAME and DecisionDx^®-UMSeq). For more information about Castle’s gene expression profile tests, visit www.CastleTestInfo.com. Castle also has active research and development programs for tests in other dermatologic diseases with high clinical need, including its test in development to predict systemic therapy response in patients with moderate to severe psoriasis, atopic dermatitis and related conditions. Castle Biosciences is based in Friendswood, Texas (Houston), and has laboratory operations in Phoenix, Arizona. For more information, visit www.CastleBiosciences.com.

DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, DecisionDx DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq and are trademarks of Castle Biosciences, Inc.

Forward-Looking Statements

The information in this press release contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning the effects of the COVID-19 pandemic on our business and our efforts to address its impact on our business, statements concerning the estimated size of our total addressable market or our existing and pipeline products, the impact, accuracy and effectiveness of our tests, including DecisionDx-Melanoma, DecisionDx-SCC and DecisionDx DiffDx-Melanoma, on physicians, patients and their treatment plans, our prospects and plans and the objectives of management and statements concerning the expectation that Castle will complete the acquisition of Myriad myPath Laboratory and the expected timing of the consummation of the transaction, Castle’s ability to integrate the myPath Melanoma test into its commercial offerings and deliver the most comprehensive molecular testing offering for difficult-to-diagnose melanocytic lesions. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the effects of the COVID-19 pandemic on our business and our efforts to address its impact on our business, subsequent study results and findings that contradict earlier study results and findings, our tests’, including DecisionDx-Melanoma, DecisionDx-SCC and DecisionDx DiffDx-Melanoma, ability to provide the aforementioned benefits to patients, the conditions to closing the myPath Melanoma acquisition may not be satisfied and the transaction may be delayed or not close at all, and the risks set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements, except as may be required by law.

The COVID-19 situation continues to evolve and brings along with it a high level of uncertainty surrounding potential future impacts. Therefore, trends in test report volumes, order data and new ordering clinician data is not necessarily indicative of the Company’s results of operations that can be expected for future interim periods or for the year ending December 31, 2021.

CASTLE BIOSCIENCES, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (in thousands, except per share data)

	Three Months Ended March 31,
	2021			2020

NET REVENUES	$	22,813		$	17,418
COST OF SALES	3,028			2,391
Gross margin	19,785			15,027
OPERATING EXPENSES
Research and development	5,908			2,913
Selling, general and administrative	18,161			11,078
Total operating expenses	24,069			13,991
Operating (loss) income	(4,284		)	1,036
Interest income	4			298
Interest expense	—			(764		)
(Loss) income before income taxes	(4,280		)	570
Income tax expense	—			—
Net (loss) income and comprehensive (loss) income	$	(4,280	)	$	570

(Loss) earnings per share:
Basic	$	(0.17	)	$	0.03
Diluted	$	(0.17	)	$	0.03

Weighted-average shares outstanding:
Basic	24,912			17,372
Diluted	24,912			18,734

CASTLE BIOSCIENCES, INC. CONDENSED BALANCE SHEETS (in thousands)

	March 31, 2021			December 31, 2020
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	406,981		$	409,852
Accounts receivable, net	14,292			12,759
Inventory	2,310			2,217
Prepaid expenses and other current assets	3,087			4,766
Total current assets	426,670			429,594
Long-term accounts receivable, net	1,121			1,096
Property and equipment, net	7,780			7,102
Other assets – long-term	1,761			1,536
Total assets	$	437,332		$	439,328

LIABILITIES ANDSTOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	2,172		$	2,098
Accrued compensation	5,208			9,108
Medicare advance payment	8,178			6,615
Other accrued liabilities	2,020			3,055
Total current liabilities	17,578			20,876
Noncurrent portion of Medicare advance payment	172			1,735
Deferred rent and other liabilities	995			1,026
Total liabilities	18,745			23,637
Stockholders’ Equity
Common stock	25			25
Additional paid-in capital	485,338			478,162
Accumulated deficit	(66,776		)	(62,496		)
Total stockholders’ equity	418,587			415,691
Total liabilities and stockholders’ equity	$	437,332		$	439,328

CASTLE BIOSCIENCES, INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)

	Three Months Ended March 31,
	2021			2020
OPERATING ACTIVITIES
Net (loss) income	$	(4,280	)	$	570
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation	233			91
Stock compensation expense	4,913			1,577
Amortization of debt discounts and issuance costs	—			224
Other	33			—
Change in operating assets and liabilities:
Accounts receivable	(1,558		)	161
Prepaid expenses and other current assets	1,679			(129		)
Inventory	(93		)	19
Other assets	(225		)	(77		)
Accounts payable	(40		)	56
Accrued compensation	(3,899		)	(2,645		)
Other accrued liabilities	(330		)	(96		)
Deferred rent and other liabilities	(64		)	(2		)
Net cash used in operating activities	(3,631		)	(251		)
INVESTING ACTIVITIES
Purchases of property and equipment	(750		)	(500		)
Net cash used in investing activities	(750		)	(500		)
FINANCING ACTIVITIES
Payment of common stock offering costs	(336		)	—
Proceeds from exercise of common stock options	991			71
Proceeds from contributions to the employee stock purchase plan	855			488
Net cash provided by financing activities	1,510			559

NET CHANGE IN CASH AND CASH EQUIVALENTS	(2,871		)	(192		)
Beginning of period	409,852			98,845
End of period	$	406,981		$	98,653

CASTLE BIOSCIENCES, INC.

Reconciliation of Non-GAAP Financial Measures (UNAUDITED)

The table below presents the reconciliation of adjusted revenue and adjusted gross margin, which are non-GAAP measures. See “Use of Non-GAAP Financial Measures (UNAUDITED)” above for further information regarding the Company’s use of non-GAAP financial measures.

	Three Months Ended March 31,
	2021				2020
(in thousands)
Adjusted revenue
Net revenues (GAAP)	$	22,813			$	17,418
Revenue associated with test reports delivered prior periods	(5,335		)		(3,160		)
Adjusted revenue (Non-GAAP)	$	17,478			$	14,258

Adjusted gross margin ($)
Gross margin (GAAP)	$	19,785			$	15,027
Revenue associated with test reports delivered prior periods	(5,335		)		(3,160		)
Adjusted gross margin (Non-GAAP)	$	14,450			$	11,867

Adjusted gross margin (%)
Gross margin (GAAP)	86.7			%	86.3			%
Revenue associated with test reports delivered prior periods	(4.0		)	%	(3.1		)	%
Adjusted gross margin (Non-GAAP)¹	82.7			%	83.2			%

________________________
¹	Calculated by dividing adjusted gross margin by adjusted revenue.

The table below presents the reconciliation of adjusted operating cash flow, which is a non-GAAP measure. See “Use of Non-GAAP Financial Measures (UNAUDITED)” above for further information regarding the Company’s use of non-GAAP financial measures.

	Three Months Ended March 31,
	2021			2020
(in thousands)
Adjusted operating cash flow
Net cash used in operating activities (GAAP)	$	(3,631	)	$	(251	)
HHS provider relief funds¹	(1,882		)	—
Adjusted operating cash flow (Non-GAAP)	$	(5,513	)	$	(251	)

________________________
¹	Reflects cash activity in the three months ended March 31, 2021 associated with the HHS provider relief funds.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005791/en/

Investor and Media Contact:

Camilla Zuckero

+1 832-835-5158

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Oncology Health Genetics Other Health General Health Biotechnology

MEDIA:

May 10, 2021 4:21 pm

Roblox Reports First Quarter 2021 Financial Results

Roblox Reports First Quarter 2021 Financial Results

Revenue Up 140% Over Prior Year to $387.0 Million

Bookings Increase 161% Over Prior Year to $652.3 Million

SAN MATEO, Calif.–(BUSINESS WIRE)–
Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its first quarter 2021 financial results today and separately posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.

First Quarter 2021 Financial Highlights

Revenue increased 140% over Q1 2020 to $387.0 million
Net Loss for Q1 2020 was $134.2 million
Net cash provided by operating activities increased nearly 4x over Q1 2020 to $164.5 million (including one-time direct listing expenses of $51.9 million). Exclusive of one-time expenses related to our direct listing, net cash provided by operating activities would have been $216.4 million.
Bookings increased 161% over Q1 2020 to $652.3 million
Free Cash Flow increased 4.1x over Q1 2020 to $142.1 million
Average Daily Active Users (DAUs) were 42.1 million, an increase of 79% year over year driven by:
- 87% growth in DAUs outside of the US/Canada
- 111% growth in DAUs over the age of 13
Hours Engaged were 9.7 billion, an increase of 98% year over year primarily driven by:
- 104% growth in engagement in markets outside of the US/Canada
- 128% growth from users over the age of 13
Average Bookings per DAU (ABPDAU) was $15.48, an increase of 46% year over year

April 2021 Key Metric Estimates

Daily active users were 43.3 million, up 37% from April of last year and up sequentially from 42.3 million in March 2021
Hours engaged were 3.2 billion, up 18% year over year and flat sequentially from March 2021
Bookings were between $242 million and $245 million, up 59% – 61% year over year and up sequentially 7% – 9% from March 2021 when bookings were $225.3 million
Average bookings per DAU were between $5.59 – $5.66, up 16% – 17% year over year and 5% – 6% sequentially from March 2021
Revenue was $143 million – $145 million, up 136% – 140% year over year and 5% – 7% sequentially from March 2021

“A fundamental part of being human is connecting with others, and we’re inspired by the way in which the Roblox community creates and shares experiences to play, work and even learn together,” said David Baszucki, Roblox CEO. “The opportunity of what we’re building at Roblox is massive, and we will continue to make long-term investments as we build a human co-experience platform that enables shared experiences among billions of users.”

“Our first quarter 2021 results enabled us to continue investing aggressively in the key areas that we believe will drive long term growth and value, specifically hiring talented engineering and product professionals and growing the earnings for our developer community,” said Michael Guthrie, Chief Financial Officer of Roblox. “We believe we must continue to innovate and so remain focused on building great technology to make progress on our key growth vectors, primarily international expansion and expanding the age demographic of our users.”

Earnings Q&A Session

Roblox will host a live Q&A session to answer questions regarding their first quarter 2021 results on Tuesday, May 11, 2021 at 5:30 a.m. Pacific Time. The webcast will be open to the public at ir.roblox.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our product development, investment strategy, business strategy and plans. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our registration statement on Form s-1 filed with, and declared effective by, the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the demand for our platforms in general; our ability to increase our number of new users and revenue generated from users; our ability to retain and expand our user base; the impact of the COVID 19 pandemic restrictions on our business; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; our ability to successfully develop and deploy new technologies to address the needs of our users; our ability to maintain and enhance our brand and reputation; our ability to hire and retain talent; news or social media coverage of the Company, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; and any breach or access to user or third-party data. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company’s expectations is included in our registration statement on Form S-1.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.

ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(unaudited)

	Three Months Ended March 31,
	2021			2020
Revenue	$	386,976		$	161,570
Cost and expenses:
Cost of revenue⁽¹⁾		97,937			41,793
Developer exchange fees		118,938			44,499
Infrastructure & trust and safety		94,136			52,620
Research and development		96,644			49,409
General and administrative		94,375			30,558
Sales and marketing		20,002			15,657
Total cost and expenses		522,032			234,536
Loss from operations		(135,056	)		(72,966	)
Interest income		5			1,247
Other expense		(1,050	)		(3,157	)
Loss before provision for income taxes		(136,101	)		(74,876	)
Provision (benefit) for income taxes		2			1
Consolidated net loss		(136,103	)		(74,877	)
Net loss attributable to the noncontrolling interest		(1,886	)		(498	)
Net loss attributable to common stockholders	($	134,217	)	($	74,379	)
Net loss per share attributable to common stockholders, basic and diluted	($	0.46	)	($	0.44	)
Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted		291,074			169,542

(1)

Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.

ROBLOX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
(unaudited)
	As of
	March 31,			December 31,
	2021			2020

Assets
Current assets:
Cash and cash equivalents	$	1,600,530		$	893,943
Accounts receivable—net of allowances		233,781			246,986
Prepaid expenses and other current assets		29,135			26,274
Deferred cost of revenue, current portion		309,388			256,928
Total current assets		2,172,834			1,424,131
Property and equipment—net		209,794			206,415
Operating lease right-of-use assets		205,117			–
Deferred cost of revenue, long term		123,595			113,793
Intangible assets, net		40,202			42,326
Goodwill		59,568			59,568
Other assets		4,969			1,567
Total assets	$	2,816,079		$	1,847,800
Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	8,269		$	12,012
Accrued expenses and other current liabilities		122,285			65,392
Developer exchange liability		84,337			80,912
Deferred revenue—current portion		1,295,464			1,070,230
Total current liabilities		1,510,355			1,228,546
Deferred revenue—net of current portion		528,904			484,699
Operating lease liabilities		184,721			–
Other long term liabilities		505			22,109
Total liabilities		2,224,485			1,735,354
Commitments and contingencies
Convertible Preferred Stock
Convertible preferred stock, Series A, B, C, D, D-1, E, F, and G $0.0001 par value, zero and 349,522 shares authorized as of March 31, 2021, and December 31, 2020, respectively; zero and 337,235 shares issued and outstanding as of March 31, 2021, and December 31, 2020, respectively; aggregate liquidation preference of zero and $335,654 as of March 31, 2021, and December 31, 2020, respectively		–			344,827
Stockholders’ Equity (Deficit)
Preferred stock; $0.0001 par value per share; 100,000 and zero shares authorized as of March 31, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of March 31, 2021 and December 31, 2020		–			–
Common stock, $0.0001 par value; 5,000,000 and 740,000 authorized as of March 31, 2021, and December 31, 2020, respectively, 568,894 and 201,327 shares issued and outstanding as of March 31, 2021, and December 31, 2020, respectively; Class A common stock—4,935,000 and 675,000 shares authorized as of March 31, 2021, and December 31, 2020, respectively; 515,307 and 144,039 shares issued and outstanding as of March 31, 2021, and December 31, 2020, respectively; Class B common stock—65,000 shares authorized as of March 31, 2021, and December 31, 2020, respectively, 53,587 and 57,287 shares issued and outstanding as of March 31, 2021, and December 31, 2020, respectively		57			20
Additional paid-in capital		1,199,833			239,792
Accumulated other comprehensive income		90			90
Accumulated deficit		(626,507	)		(492,290	)
Total Roblox Corporation stockholders’ equity (deficit)		573,473			(252,388	)
Noncontrolling interests		18,121			20,007
Total stockholders’ equity (deficit)		591,594			(232,381	)
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit)	$	2,816,079		$	1,847,800

ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited)

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities:
Consolidated net loss	$	(136,103	)	$	(74,877	)
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by (used in) operations:
Depreciation and amortization		16,620			9,085
Stock-based compensation expense		50,744			42,257
Change in fair value of warrants		–			1,890
Other non-cash charges/(credits)		(52	)		302
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable		13,256			1,183
Accounts payable		(782	)		669
Prepaid expenses and other current assets		(10,967	)		(7,301	)
Operating lease right of use assets		(9,173	)		–
Other assets		(3,401	)		902
Developer exchange liability		3,425			(1,454	)
Accrued expenses and other current liabilities		16,273			3,269
Other long term liability		304			1,713
Operating lease liabilities		17,148			–
Deferred revenue		269,439			88,769
Deferred cost of revenue		(62,262	)		(22,878	)
Net cash provided by operating activities		164,469			43,529
Cash flows from investing activities:
Acquisition of property and equipment		(22,133	)		(8,921	)
Purchases of short-term investments		–			(5,991	)
Maturities of short-term investments		–			21,000
Purchases of intangible assets		(256	)		–
Net cash provided by (used in) investing activities		(22,389	)		6,088
Cash flows from financing activities:
Proceeds from issuance of preferred stock for warrant exercises		–			147
Proceeds from issuance of common stock		30,221			1,282
Net proceeds from issuance of preferred stock		534,286			149,669
Net cash provided by financing activities		564,507			151,098

Effect of exchange rate changes on cash and cash equivalents		–			(1	)

Net increase in cash and cash equivalents		706,587			200,714
Cash and cash equivalents
Beginning of year		893,943			301,493
End of year	$	1,600,530		$	502,207

Supplemental disclosure of cash flow information:
Cash paid for interest		–			–
Cash paid for income taxes		–			–

Supplemental disclosure of noncash investing and financing activities:
Property and equipment additions in accounts payable and accrued expenses	$	9,476		$	20,988
Conversion of convertible preferred stock to common stock upon direct listing	$	879,113		$	–

Use of Non-GAAP Financial measures

This press release and the accompanying tables contain the non-GAAP financial measures bookings and free cash flow.

We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance. Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Bookings is equal to the amount of virtual currency purchased by users in a given period of time. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Free cash flow represents the net cash provided by operating activities less purchases of property, equipment, and intangible assets. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property, equipment, and intangible assets, can be used for strategic initiatives, including investing in our business, making strategic acquisitions, and strengthening our balance sheet.

Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.

A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.

	Three Months Ended March 31,
	2021		2020
	(dollars in thousands)
Bookings	$	652,277	$	249,576

The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented:

	Three Months Ended March 31,
	2021			2020
	(dollars in thousands)
Reconciliation of revenue to bookings:
Revenue	$	386,976		$	161,570
Add (deduct):
Change in deferred revenue		269,439			88,769
Other		(4,138	)		(763	)
Bookings	$	652,277		$	249,576

	Three Months Ended March 31,
	2021		2020
	(dollars in thousands)
Free cash flow	$	142,080	$	34,608

The following table presents a reconciliation of net cash from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented:

	Three Months Ended March 31,
	2021			2020
	(dollars in thousands)
Reconciliation of net cash from operating activities to free cash flow:
Net cash provided by operating activities	$	164,469		$	43,529
Add (deduct):
Acquisition of property and equipment		(22,133	)		(8,921	)
Purchases of intangible assets		(256	)		–
Free cash flow	$	142,080		$	34,608

About Roblox

Roblox’s mission is to build a human co-experience platform that enables shared experiences among billions of users. Every day, tens of millions of people around the world have fun with friends as they explore millions of immersive digital experiences. All of these experiences are built by the Roblox community, made up of millions of creators. We believe in building a safe, civil, and diverse community—one that inspires and fosters creativity and positive relationships between people around the world. For more information, please visit corp.roblox.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005847/en/

Anna Yen

Roblox Investor Relations

[email protected]

Teresa Brewer

Roblox Corporate Communications

[email protected]

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INDUSTRY KEYWORDS: Software Other Entertainment Internet General Entertainment Mobile Entertainment Technology Electronic Games Entertainment

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May 10, 2021 4:21 pm

Biogen and Capsigen Announce Collaboration to Discover and Develop Novel AAV Capsids for Targeted CNS and Neuromuscular Disorders

Collaboration aims to identify novel AAV capsids with enhanced properties to facilitate the development of new gene therapies for CNS and neuromuscular disorders
Capsigen’s screening technology is designed to produce dose optimized, fit for purpose vectors that may have applicability across Biogen’s gene therapy pipeline
Capsigen to receive a $15 million upfront payment and is eligible to receive potential research, development and commercial milestone payments

CAMBRIDGE, Mass. and VANCOUVER, Wash., May 10, 2021 (GLOBE NEWSWIRE) — Biogen Inc. (Nasdaq: BIIB) and Capsigen Inc. announced today that they have entered into a strategic research collaboration to engineer novel adeno-associated virus (AAV) capsids that have the potential to deliver transformative gene therapies that address the underlying genetic causes of various CNS and neuromuscular disorders.

As a part of the collaboration, Capsigen’s proprietary TRADE™ platform and associated technologies will be utilized with the aim to create and identify novel AAV capsids tailored to meet disease-specific transduction profiles. Capsids are the protein coat that protects and facilitates delivery of the virus’ genetic payload into host cells. The collaboration will leverage Capsigen’s capsid engineering expertise and Biogen’s discovery, development, manufacturing and commercialization capabilities with the goal to accelerate delivery of gene therapies to patients in need.

“Through this collaboration, we aim to solve key technological challenges in the delivery of gene therapies to target tissues. One of our priorities for technology innovation is the discovery of AAV capsids with improved delivery profiles,” said Alfred Sandrock, Jr., M.D., Ph.D., Head of Research and Development at Biogen. “We are investing for the long-term by building platform capabilities and advanced manufacturing technologies with the goal of accelerating our efforts in gene therapy.”

“At Capsigen, we believe the next revolution in gene therapy will be driven by engineered AAV capsids designed to meet disease-specific transduction profiles,” said John Bial, Chief Executive Officer. “Biogen is a leader in neuroscience, and we are excited for the opportunity to work with them to potentially bring new treatments to patients. This collaboration is consistent with our strategy to work with world-class companies to develop the next generation of gene therapies.”

Under the terms of the agreement, Capsigen will apply its vector engineering approaches to develop novel capsids designed to meet highly customized, disease-specific transduction profiles. Biogen will receive an exclusive license under Capsigen’s proprietary technology for an undisclosed number of CNS and neuromuscular disease targets. Capsigen will receive a $15 million upfront payment and is eligible to receive up to $42 million in potential research milestones and up to an additional $1.25 billion in potential development and commercial payments should the collaboration programs achieve certain developmental milestones and sales thresholds. Capsigen is also eligible to receive royalties on future net sales of products that incorporate capsids resulting from the collaboration.

About Biogen

At Biogen, our mission is clear: we are pioneers in neuroscience. Biogen discovers, develops and delivers worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases as well as related therapeutic adjacencies. One of the world’s first global biotechnology companies, Biogen was founded in 1978 by Charles Weissmann, Heinz Schaller, Kenneth Murray and Nobel Prize winners Walter Gilbert and Phillip Sharp. Today Biogen has the leading portfolio of medicines to treat multiple sclerosis, has introduced the first approved treatment for spinal muscular atrophy, commercializes biosimilars of advanced biologics and is focused on advancing research programs in multiple sclerosis and neuroimmunology, Alzheimer’s disease and dementia, neuromuscular disorders, movement disorders, ophthalmology, neuropsychiatry, immunology, acute neurology and neuropathic pain.

We routinely post information that may be important to investors on our website at www.biogen.com. Follow us on social media – Twitter, LinkedIn, Facebook, YouTube.

About Capsigen

At Capsigen, we’re developing the next generation of AAV vectors to fuel the gene therapy needs of the future. Our end-to-end platform employs customized, highly diverse libraries using the most clinically relevant models and routes of administration. Our proprietary TRADE™ technology eliminates background and employs novel selection strategies to identify only those vectors which are fully functional and meet the disease-specific transduction criteria of interest. The final results are fit-for-purpose vectors designed to deliver the highest level of clinical utility in a rapid and high-throughput manner.

Biogen Safe Harbor

This news release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, relating to the potential benefits and results that may be achieved through Biogen’s collaboration with Capsigen; the potential benefits of Capsigen’s TRADE platform; the potential of Biogen’s commercial business and pipeline programs; Biogen’s strategy and plans; the potential treatment of neurological and neurodegenerative diseases; and risks and uncertainties associated with drug development and commercialization. These forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “possible,” “will,” “would” and other words and terms of similar meaning. Drug development and commercialization involve a high degree of risk, and only a small number of research and development programs result in commercialization of a product. Results in early-stage clinical trials may not be indicative of full results or results from later stage or larger scale clinical trials and do not ensure regulatory approval. You should not place undue reliance on these statements or the scientific data presented.

These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including without limitation, uncertainty as to whether the anticipated benefits of the collaboration can be achieved; risks of unexpected costs or delays or other unexpected hurdles; uncertainty of success in the development of potential gene therapies, which may be impacted by, among other things, unexpected concerns that may arise from additional data or analysis, the occurrence of adverse safety events, failure to obtain regulatory approvals in certain jurisdictions, failure to protect and enforce data, intellectual property and other proprietary rights and uncertainties relating to intellectual property claims and challenges; the direct and indirect impacts of the ongoing COVID-19 pandemic on Biogen’s business, results of operations and financial condition; product liability claims; and third party collaboration risks. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from Biogen’s expectations in any forward-looking statement. Investors should consider this cautionary statement as well as the risk factors identified in Biogen’s most recent annual or quarterly report and in other reports Biogen has filed with the U.S. Securities and Exchange Commission. These statements are based on Biogen’s current beliefs and expectations and speak only as of the date of this news release. Biogen does not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

BIOGEN MEDIA CONTACT: David Caouette Biogen Inc. Tel: (781) 464-3260	BIOGEN INVESTOR CONTACT: Mike Hencke Biogen Inc. Tel: (781) 464-2442

CAPSIGEN CONTACT: Charlie Kang Chief Business Officer Tel: (720) 295-8142 [email protected]

May 10, 2021 4:21 pm

Lexington Realty Trust Announces Public Offering of Common Shares

NEW YORK, May 10, 2021 (GLOBE NEWSWIRE) — Lexington Realty Trust (NYSE:LXP) (“Lexington”), a real estate investment trust (REIT) focused on single-tenant industrial real estate investments, today announced that it has commenced an underwritten public offering of 16,000,000 common shares in connection with the forward sale agreements described below. In connection with the offering, Lexington intends to grant the underwriters a 30-day option to purchase up to an additional 2,400,000 common shares to cover over-allotments, if any.

Wells Fargo Securities, J.P. Morgan and KeyBanc Capital Markets are acting as underwriters for the offering. Lexington expects to enter into forward sale agreements with Wells Fargo Bank, National Association and JPMorgan Chase Bank, National Association, or their affiliates (together, the “forward purchasers”) with respect to 16,000,000 of its common shares (or an aggregate of 18,400,000 common shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 16,000,000 common shares (or an aggregate of 18,400,000 common shares if the underwriters exercise their option to purchase additional shares in full) that will be delivered in this offering. Subject to its right to elect cash or net share settlement, which right is subject to certain conditions, Lexington intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by Lexington occurring no later than May 11, 2022, an aggregate of 16,000,000 common shares (or an aggregate of 18,400,000 common shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, which will be the public offering price, less applicable expenses, and will be subject to certain adjustments as provided in the forward sale agreements.

The underwriters may offer the common shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices at the time of sale or at negotiated prices.

Lexington will not initially receive any proceeds from the sale of common shares by the forward purchasers or their affiliates in the offering. Lexington intends to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements for working capital and general corporate purposes, including, without limitation, to fund its ongoing and future development projects. Pending the application of such net proceeds, Lexington may repay future amounts outstanding under its unsecured credit facility, which amounts may be re-borrowed from time to time.

Selling common shares through the forward sale agreements enables Lexington to set the price of such shares upon the pricing of the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by Lexington until the expected funding requirements described above have occurred.

This offering is being conducted pursuant to Lexington’s currently effective shelf registration statement, which was previously filed with the Securities and Exchange Commission. A preliminary prospectus supplement related to the public offering and a final prospectus supplement will be filed with the Securities and Exchange Commission. Copies of the preliminary prospectus supplement and final prospectus supplement, when available, may be obtained from (1) Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, at (800) 326-5897 or email a request to [email protected], (2) J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-866-803-9204, (3) KeyBanc Capital Markets Inc., Attn: Equity Syndicate, 127 Public Square, 4th Floor, Cleveland, Ohio 44114, telephone: 1-800-859-1783, or (4) the Internet site of the Securities and Exchange Commission at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. Lexington seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties and other factors not under Lexington’s control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those factors and risks detailed in Lexington’s periodic filings with the Securities and Exchange Commission. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events.

Contact:
Investor or Media Inquiries for Lexington Realty Trust:
Beth Boulerice, Chief Financial Officer
Lexington Realty Trust
Phone: (212) 692-7200 E-mail: [email protected]

May 10, 2021 4:21 pm

Thermo Fisher Scientific to Present at the BofA Securities 2021 Healthcare Conference on May 12, 2021

PR Newswire

WALTHAM, Mass., May 10, 2021 /PRNewswire/ — Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, announced that Marc N. Casper, chairman, president and chief executive officer, will present virtually at the BofA Securities 2021 Health Care Conference on Wednesday, May 12, 2021 at 8:45 a.m. (EDT).

You can access the webcast of the presentation via the Investors section of our website, www.thermofisher.com.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $30 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, improving patient diagnostics and therapies or increasing productivity in their laboratories, we are here to support them. Our global team of more than 80,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon. For more information, please visit www.thermofisher.com.

Media Contact Information:
Ron O’Brien
Phone: 781-622-1242
E-mail: [email protected]
Website: www.thermofisher.com

Investor Contact Information:
Rafael Tejada
Phone: 781-622-1356
E-mail: [email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/thermo-fisher-scientific-to-present-at-the-bofa-securities-2021-healthcare-conference-on-may-12-2021-301287815.html

SOURCE Thermo Fisher Scientific

May 10, 2021 4:20 pm

INOVIO Reports First Quarter 2021 Financial Results

Investor Call Today at 4:30 PM ET

PR Newswire

PLYMOUTH MEETING, Pa., May 10, 2021 /PRNewswire/ — INOVIO (NASDAQ:INO), a biotechnology company focused on rapidly bringing to market precisely designed DNA medicines to treat and protect people from infectious diseases, cancer, and HPV-associated diseases, today reported financial results for the quarter ended March 31, 2021. INOVIO’s management will host a live conference call and webcast at 4:30 p.m. Eastern Standard Time today to discuss financial results and provide a general business update, covering, among other things: the company’s recently reported Phase 2 segment trial data and plans for a global Phase 3 segment for INO-4800’s INNOVATE Phase 2/3 clinical trial; an overall update on the company’s COVID-19 vaccine developments to address current and future variants of concern (VOC) through its INO-4800 and the pan-COVID INO-4802; and a general update on its DNA medicines platform. The live webcast and replay may be accessed by visiting INOVIO’s website at http://ir.inovio.com/events-and-presentations/default.aspx.

Dr. J. Joseph Kim, President and CEO of INOVIO, said, “As the global community continues to contend with the COVID-19 pandemic, and as we prepare for endemic considerations to support the continued fight against variants, INOVIO remains well-positioned to address the global demand for COVID-19 vaccines. We recognize that there is an opportunity to have a meaningful impact in the fight against COVID-19 outside the U.S. and, are planning for a global Phase 3 trial for INO-4800. INOVIO is also encouraged by the positive data from the Phase 2 segment of our Phase 2/3 trial of INO-4800, which is being conducted in the United States. INO-4800 continues to be safe and well-tolerated and has been observed to support the body’s ability to generate both robust neutralizing antibodies and T cell responses – which we believe to be essential in protecting against current and emerging variants of concern. Equally important, INO-4800 has a favorable thermostability profile and does not require cold or ultra-cold chain transport.”

Dr. Kim added, “INOVIO continues to be pleased with the progress across our DNA medicines platform, and our efforts to address not only infectious disease but also cancer and HPV-associated diseases, and we look forward to sharing additional updates on GBM this summer.”

INOVIO Key Updates & First Quarter 2021 Highlights

Key Updates

This morning, INOVIO announced positive preliminary immunogenicity and safety data from the Phase 2 segment of INNOVATE (INOVIO INO-4800 Vaccine Trial for Efficacy), its clinical trial evaluating COVID-19 DNA vaccine candidate, INO-4800. The Phase 2 data showed the vaccine to be safe, well-tolerated and immunogenic in all tested age groups. The Phase 2 results from approximately 400 patients helped determine INOVIO’s selection of a 2.0 mg dose for the global Phase 3 segment of the trial.
INOVIO met primary and secondary efficacy endpoints among all evaluable subjects for REVEAL 1 (Randomized Evaluation of VGX-3100 and Electroporation for the treatment of Cervical HSIL) trial. REVEAL 2, the confirmatory Phase 3 trial for VGX-3100, continues to enroll globally across 48 study sites.
INOVIO and QIAGEN extended their partnership in late February with a new master collaboration agreement to include the co-development of a pre-treatment RNA-based biomarker blood test designed to identify prospective patients who are most likely to benefit from the clinical use of VGX-3100.
In February, INOVIO dosed its first patient in a Phase 1b clinical trial for INO-4500, its DNA vaccine candidate for Lassa fever, in Ghana. INO-4500 is the first vaccine candidate for Lassa fever to enter human trials. As part of a 2018 partnership, INOVIO and CEPI are committed to making INO-4500 available for possible emergency use as a stockpile product after successful completion of the Phase 2 trial.

INOVIO First Quarter 2021 Program Updates

DNA Vaccine Candidates

INO-4800: INNOVATE Phase 2/3 Clinical Trial

The Phase 2 segment of INNOVATE was designed to evaluate the safety, tolerability and immunogenicity of INO-4800 in a two-dose regimen (1.0 mg or 2.0 mg) in a three-to-one-randomization to receive either INO-4800 or placebo for each dose to identify optimal dose(s) for two age groups (18-50 years and 51 years and older) for the subsequent Phase 3 efficacy evaluation. The preliminary Phase 2 results showed that INO-4800 was safe, well-tolerated and immunogenic in all tested age groups. The trial was funded by the Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense, (JPEO-CBRND) in coordination with the Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)) and the Defense Health Agency. Results from the trial can be found in the paper entitled “Safety and immunogenicity of INO-4800 DNA vaccine against SARS-CoV-2: A Preliminary Report of a Randomized, Blinded, Placebo-controlled, Phase 2 Clinical Trial in Adults at High Risk of Viral Exposure,” has been published as a pre-print in MedRxiv (https://doi.org/10.1101/2021.05.07.21256652) prior to peer review.

Findings from the Phase 2 Clinical Trial:

The Phase 2 segment of the trial enrolled approximately 400 participants, 18 years of age or older, at 16 U.S. sites.
Participants received either INO-4800 (1.0 mg or 2.0 mg dose) or placebo at 0 and 4 weeks (randomized 3:3:1:1). Each dose was administered by intradermal injection followed by electroporation using INOVIO’s CELLECTRA^®, its proprietary smart device.
Safety endpoints included systemic and local administration site reactions through 8 weeks post-dose one (or 4 weeks post-dose 2). Immunology endpoints included antigen-specific binding antibody titers, neutralization titers, and antigen-specific interferon-gamma (IFN-γ) cellular immune responses after two doses of the vaccine.
Vaccine administration was generally safe and well-tolerated. The majority of adverse events (AEs) were Grade 1 and Grade 2 in severity and did not appear to increase in frequency with the second dose. The number of participants experiencing each of the most common AEs did not differ between the two dosing groups.
The geometric mean fold rise of binding and neutralizing antibody levels were statistically significantly greater in the 2.0 mg dose group versus the 1.0 mg dose group.
The T cell immune responses measured by the ELISpot assay were also higher in the 2.0 mg dose group compared to the 1.0 mg dose group.
ClinicalTrials.gov identifier: NCT04642638

Phase 2 results informed INOVIO’s selection of a 2.0 mg dose for the Phase 3 segment of the trial. Given the increasing availability of COVID-19 vaccines authorized for emergency use, in April the Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND), in coordination with the Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)) and the Defense Health Agency (DHA), informed INOVIO that it will discontinue funding for the planned Phase 3 segment of the INNOVATE trial, while continuing to fund the completion of the ongoing Phase 2 segment. JPEO informed INOVIO that: “The decision results from the changing environment of COVID-19 with the rapid deployment of vaccines. This decision is not a reflection of the awardee or product, rather a fast-moving environment associated with the former Operation Warp Speed on decisions related to future products.” The decision by JPEO does not impact other work that INOVIO does with the U.S. government and is neither a result of the current FDA partial clinical hold nor a reflection of the data generated to date for INO-4800.

Recognizing the need to plan for both pandemic and endemic scenarios, as well as the global demand for safe and effective vaccines that are also stable at room temperature and do not require cold-chain or ultra-cold chain transport, INOVIO also announced in April 2021 that it plans to proceed with a global Phase 3 clinical trial for INO-4800 and is working with funders and partners to achieve this plan. The company plans to initiate the global Phase 3 trial this summer.

INO-4800 and INO-4802: Planning for Existing and Future Variants of Concern

INOVIO continues to evaluate the impact of existing and potential new variants of concern for SARS-CoV-2, the virus that causes COVID-19, as well as assessing boosting capabilities for INO-4800. The company is assessing the impact that new circulating strains of the SARS-CoV-2 virus have on the immune profile elicited by INO-4800.

In April, INOVIO published results from a study showing that INO-4800 provides broad cross-reactive immune responses in humans against variants of concern. The study showed the T cell responses induced by INO-4800 vaccination were fully maintained against the UK, South African and Brazilian variants when compared to the T cell responses to the original Wuhan strain. The neutralization levels of INO-4800 against South African and UK variants were reduced to the levels similar to the previous reports of mRNA or viral vector vaccines. Furthermore, despite recent reports showing a reduction in neutralizing activity against the Brazilian variant by the mRNA or viral vector vaccines, INO-4800 generated robust neutralizing antibodies at levels against the Brazilian variant that were comparable to those observed against the Wuhan strain. Taken together with the data showing the maintenance of T cell activity, the results reported in this study provide a comprehensive overview of cross-reactive cellular and humoral immune responses against SARS-CoV-2 variants for INO-4800 vaccinated individuals, showing the potential of INO-4800 to combat emerging as well as future SARS-CoV-2 variants. The study, entitled “INO-4800 DNA Vaccine Induces T Cell Activity and Neutralizing Antibodies Against Global SARS-CoV-2 Variants,” has been submitted for peer review and is available via pre-print in bioRxiv.

In parallel to the late-stage development of INO-4800, the company is also developing a novel, pan-COVID, second-generation vaccine candidate, INO-4802, which is designed to protect against current and potentially future circulating variants. This pan-COVID vaccine could potentially offer boosting capabilities in addition to an initial vaccination regimen with INO-4800 and/or other first-generation vaccines. INOVIO looks forward to sharing additional information on INO-4802 soon.

DNA Immunotherapies: HPV-associated Diseases and Immuno-Oncology

HPV-related Diseases

VGX-3100: Cervical, Vulvar, and Anal HSIL

REVEAL 1 / REVEAL 2 (Cervical HSIL)

In the first quarter, INOVIO announced that it met primary and secondary efficacy endpoints among all evaluable subjects for REVEAL 1 (Randomized Evaluation of VGX-3100 and Electroporation for the treatment of Cervical HSIL), a Phase 3 pivotal trial evaluating VGX-3100 for the treatment of cervical HSIL caused by HPV-16 and/or HPV-18 using the company’s proprietary CELLECTRA^®5PSP device. This trial is one of two ongoing pivotal, randomized, double-blind, multi-center, placebo-controlled, Phase 3 trials (REVEAL 1 and REVEAL 2) designed to assess and confirm the safety, tolerability, immunogenicity, and efficacy of VGX-3100.

INOVIO continues to follow subjects in REVEAL 1 for safety and durability of response for 18 months following the last administration and expects to present its findings at a scientific meeting later this year. The company anticipates subject level full unblinding for REVEAL 1 in the second half of 2021, which will facilitate better analysis of individual, patient-level data. Additionally, INOVIO is continuing its partnership with QIAGEN to co-develop an in-vitro diagnostic based on RNA sequencing technology to guide clinical decision-making for the use of VGX-3100 in cervical HSIL. The biomarker blood test could be used to identify prospective VGX-3100 patients who would be most likely to respond to the immunotherapy – an important element of VGX-3100 product and market development. Subject level unblinding for REVEAL 1 will be a key component in enhancing the immune signature of the biomarker, followed by potential confirmatory biomarker data from REVEAL 2.

REVEAL 2 continues to enroll across 48 sites globally. The company continues to assess the impact that the existing pandemic will have on future enrollment in the REVEAL 2 trial. The company believes that it will be in a more suitable position at mid-year to determine if any protocol and/or recruitment adjustments will be necessary.

REVEAL 1 Results

The trial protocol-defined modified intention to treat (mITT) population (N=193) included all subjects with endpoint data. For the primary endpoint of histopathological regression of HSIL combined with virologic clearance of HPV-16 and/or HPV-18 at week 36, the percentage of responders was 23.7% (31/131) in the treatment group, versus 11.3% (7/62) in the placebo group (p=0.022; 12.4% difference in percentage, 95%CI: 0.4,22.5), thus achieving statistical significance. All secondary efficacy endpoints were achieved in the mITT population. These endpoints were: a) regression of cervical HSIL to normal tissue combined with HPV-16 and/or HPV-18 viral clearance, b) regression of cervical HSIL alone, c) regression of cervical HSIL to normal tissue, and d) HPV-16 and/or HPV-18 viral clearance alone. There were no treatment-related serious adverse events and most adverse events were self-resolving and were considered to be mild to moderate, consistent with earlier clinical trials.

Vulvar and Anal HSIL

In January 2021, INOVIO reported positive efficacy results from an open-label Phase 2 trial of VGX-3100 to treat HPV-16 and HPV-18-associated vulvar HSIL. A 25% or more reduction in HPV-16/18-associated vulvar HSIL was observed for 63% of trial participants (12 of 19) treated with VGX-3100 at six months post-treatment. Three out of the 20 participants with histology data (15%) resolved their vulvar HSIL and had no HPV-16/18 virus detectable in the healed area. By comparison, the spontaneous resolution of vulvar HSIL caused by HPV-16/18 is estimated to be 2%. The trial also showed VGX-3100 to be well-tolerated.

The data from the Phase 2 trial of vulvar and anal dysplasia treatments with VGX-3100 were presented at the 2021 ASCCP Virtual Conference. INOVIO continues to evaluate best options for Phase 3 clinical trials for vulvar and anal dysplasia pending further discussions with the FDA.

Immuno-oncology

INO-5401: Newly Diagnosed Glioblastoma Multiforme (GBM)

INOVIO is currently conducting a Phase 1/2 novel combination trial of DNA medicines INO-5401 and INO-9012 in combination with PD-1 inhibitor Libtayo® (cemiplimab) – which is being jointly developed by Regeneron and Sanofi – in the treatment of newly diagnosed GBM, the deadliest and most aggressive form of brain cancer. The novel combination of INO-5401 + INO-9012 continues to demonstrate a well-tolerated safety profile when given not only with radiation and chemotherapy, but also with PD-1 blockade by Libtayo^®.

In late 2020, INOVIO shared encouraging interim OS18 data, which also demonstrated immunogenicity and tolerability in a majority of patients. The company anticipates sharing two-year (24 months) overall survival data, including correlative immunology and tissue data, later this year.

First Quarter 2021 Financial Results

Total revenue was $371,000 for the three months ended March 31, 2021, compared to $1.3 million for the same period in 2020. Total operating expenses were $52.9 million compared to $26.6 million for the same period in 2020.

INOVIO’s net loss for the quarter ended March 31, 2021 was $54.4 million, or $0.27 per basic and diluted share, compared to net loss of $32.5 million, or $0.26 per basic and diluted share, for the quarter ended March 31, 2020.

Operating Expenses

Research and development (R&D) expenses for the three months ended March 31, 2021, were $39.0 million compared to $19.1 million for the same period in 2020. The increase in R&D expenses was primarily related to higher drug manufacturing expenses and outside services related to INO-4800 and other clinical trials, higher employee and contractor compensation, including non-cash stock-based compensation, an increase in engineering services related to our CELLECTRA^® 3PSP device and higher device inventory expense. These increases were offset by an increase in contra-research and development expense recorded from grant agreements of $8.8 million, among other variances.

General and administrative (G&A) expenses were $13.9 million for the three months ended March 31, 2021, versus $7.4 million for the same period in 2020. The increase in G&A expenses was primarily related to an increase in employee and consultant compensation, including non-cash stock-based compensation and legal expenses, among other variances.

Capital Resources

On January 25, 2021, the company closed an underwritten public offering of 20,355,000 shares of common stock at a price of $8.50 per share. The net proceeds to the company, after deducting the underwriters’ discounts and commissions and other offering expenses, were $162.1 million.

As of March 31, 2021, cash and cash equivalents and short-term investments were $518.6 million compared to $411.6 million as of December 31, 2020. As of March 31, 2021, the company had 209.3 million common shares outstanding and 226.5 million common shares outstanding on a fully diluted basis, after giving effect to the exercise, vesting and conversion, as applicable, of its outstanding options, restricted stock units, convertible preferred stock, and convertible debt.

INOVIO’s balance sheet and statement of operations are provided below. Additional information is included in INOVIO’s quarterly report on Form 10-Q for the quarter ended March 31, 2021, which can be accessed at: http://ir.inovio.com/financials/default.aspx.

Conference Call / Webcast Information

INOVIO’s management will host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss INOVIO’s financial results and provide a general business update.

The live webcast and a replay may be accessed by visiting INOVIO’s website at http://ir.inovio.com/events-and-presentations/default.aspx.

About INOVIO’s DNA Medicines Platform

INOVIO has 15 DNA medicine clinical programs currently in development focused on HPV-associated diseases, cancer, and infectious diseases, including coronaviruses associated with COVID-19 and MERS, for which programs are being developed with funding support from the U.S. Department of Defense and the Coalition for Epidemic Preparedness Innovations (CEPI). DNA medicines are composed of optimized DNA plasmids, which are small circles of double-stranded DNA that are synthesized or reorganized by a computer sequencing technology and designed to produce a specific immune response in the body.

INOVIO’s DNA medicines deliver optimized plasmids directly into cells intramuscularly or intradermally using INOVIO’s proprietary hand-held smart device called CELLECTRA^®. The CELLECTRA^® device uses a brief electrical pulse to reversibly open small pores in the cell to allow the plasmids to enter, overcoming a key limitation of other DNA and other nucleic acid approaches, such as mRNA. Once inside the cell, the DNA plasmids enable the cell to produce the targeted antigen. The antigen is processed naturally in the cell and triggers the desired T cell and antibody-mediated immune responses. Administration with the CELLECTRA^® device is designed to ensure that the DNA medicine is efficiently delivered directly into the body’s cells, where it can go to work to drive an immune response. INOVIO’s DNA medicines do not interfere with or change in any way an individual’s own DNA. The advantages of INOVIO’s DNA medicine platform are how fast DNA medicines can be designed and manufactured; the stability of the products, which do not require freezing in storage and transport; and the robust immune response, safety profile, and tolerability that have been observed in clinical trials.

With more than 3,000 patients receiving INOVIO investigational DNA medicines in more than 7,000 applications across a range of clinical trials, INOVIO has a strong track record of rapidly generating DNA medicine candidates with potential to meet urgent global health needs.

About INOVIO

INOVIO is a biotechnology company focused on rapidly bringing to market precisely designed DNA medicines to treat and protect people from infectious diseases, cancer, and diseases associated with HPV. INOVIO is the first and only company to have clinically demonstrated that a DNA medicine can be delivered directly into cells in the body via a proprietary smart device to produce a robust and tolerable immune response. Specifically, INOVIO’s lead candidate VGX-3100 met primary and secondary endpoints for all evaluable subjects in REVEAL 1, in the first of two Phase 3 trials for precancerous cervical dysplasia, demonstrating ability to destroy and clear both high-grade cervical lesions and the underlying high-risk HPV 16 and 18. INOVIO is also evaluating INO-4800, a DNA vaccine candidate against COVID-19, in a Phase 2 clinical trial in the U.S., as well as Phase 2 trials in China and South Korea. Partners and collaborators include Advaccine, ApolloBio Corporation, AstraZeneca, The Bill & Melinda Gates Foundation, Coalition for Epidemic Preparedness Innovations (CEPI), Defense Advanced Research Projects Agency (DARPA)/Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND)/Department of Defense (DOD), HIV Vaccines Trial Network, International Vaccine Institute (IVI), Kaneka Eurogentec, Medical CBRN Defense Consortium (MCDC), National Cancer Institute, National Institutes of Health, National Institute of Allergy and Infectious Diseases, Ology Bioservices, the Parker Institute for Cancer Immunotherapy, Plumbline Life Sciences, Regeneron, Richter-Helm BioLogics, Thermo Fisher Scientific, University of Pennsylvania, Walter Reed Army Institute of Research, and The Wistar Institute. INOVIO also is a proud recipient of 2020 Women on Boards “W” designation recognizing companies with more than 20% women on their board of directors. For more information, visit www.inovio.com.

CONTACTS:

Media: Jeff Richardson, 267-440-4211, [email protected]
Investors: Ben Matone, 484-362-0076, [email protected]

This press release contains certain forward-looking statements relating to our business, including our plans to develop DNA medicines, our expectations regarding our research and development programs, including the planned initiation and conduct of preclinical studies and clinical trials and the availability and timing of data from those studies and trials, and our ability to successfully manufacture and produce large quantities of our product candidates if they receive regulatory approval. Actual events or results may differ from the expectations set forth herein as a result of a number of factors, including uncertainties inherent in pre-clinical studies, clinical trials, product development programs and commercialization activities and outcomes, our ability to secure sufficient manufacturing capacity to mass produce our product candidates, the availability of funding to support continuing research and studies in an effort to prove safety and efficacy of electroporation technology as a delivery mechanism or develop viable DNA medicines, our ability to support our pipeline of DNA medicine products, the ability of our collaborators to attain development and commercial milestones for products we license and product sales that will enable us to receive future payments and royalties, the adequacy of our capital resources, the availability or potential availability of alternative therapies or treatments for the conditions targeted by us or our collaborators, including alternatives that may be more efficacious or cost effective than any therapy or treatment that we and our collaborators hope to develop, issues involving product liability, issues involving patents and whether they or licenses to them will provide us with meaningful protection from others using the covered technologies, whether such proprietary rights are enforceable or defensible or infringe or allegedly infringe on rights of others or can withstand claims of invalidity and whether we can finance or devote other significant resources that may be necessary to prosecute, protect or defend them, the level of corporate expenditures, assessments of our technology by potential corporate or other partners or collaborators, capital market conditions, the impact of government healthcare proposals and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and other filings we make from time to time with the Securities and Exchange Commission. There can be no assurance that any product candidate in our pipeline will be successfully developed, manufactured or commercialized, that final results of clinical trials will be supportive of regulatory approvals required to market products, or that any of the forward-looking information provided herein will be proven accurate. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise these statements, except as may be required by law.

INOVIO Pharmaceuticals, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2021		December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	83,634,176	$	250,728,118
Short-term investments	434,969,528		160,914,935
Accounts receivable	9,911,922		18,559,967
Accounts receivable from affiliated entities	346,974		503,782
Prepaid expenses and other current assets	59,572,236		40,357,456
Prepaid expenses and other current assets from affiliated entities	—		106,432
Total current assets	588,434,836		471,170,690
Fixed assets, net	10,930,312		11,348,144
Investment in affiliated entities	3,629,891		4,460,366
Investment in Geneos	—		434,387
Intangible assets, net	3,010,000		3,146,770
Goodwill	10,513,371		10,513,371
Operating lease right-of-use assets	12,463,006		12,741,296
Other assets	25,881,934		25,957,448
Total assets	$	654,863,350	$	539,772,472
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	25,974,530	$	21,203,808
Accounts payable and accrued expenses due to affiliated entities	768,261		642,969
Accrued clinical trial expenses	7,370,869		9,950,345
Deferred revenue	15,378		46,628
Deferred revenue from affiliated entities	39,000		—
Operating lease liability	2,395,928		2,329,394
Grant funding liability	4,975,484		7,474,310
Grant funding liability from affiliated entities	—		58,500
Total current liabilities	41,539,450		41,705,954
Deferred revenue, net of current portion	75,501		79,214
Convertible senior notes	14,069,722		14,139,988
Convertible bonds	—		4,515,834
Operating lease liability, net of current portion	17,438,841		18,063,515
Deferred tax liabilities	32,046		32,046
Grant funding liability from affiliated entity, net of current portion	37,500		37,500
Other liabilities	64,141		57,663
Total liabilities	73,257,201		78,631,714
Stockholders’ equity:
Preferred stock	—		—
Common stock	209,333		186,851
Additional paid-in capital	1,542,261,467		1,367,406,869
Accumulated deficit	(960,598,943)		(906,196,812)
Accumulated other comprehensive loss	(265,708)		(256,150)
Total Inovio Pharmaceuticals, Inc. stockholders’ equity	581,606,149		461,140,758
Total liabilities and stockholders’ equity	$	654,863,350	$	539,772,472

INOVIO Pharmaceuticals, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended March 31,
	2021		2020
Revenues:
Revenue under collaborative research and development arrangements	$	39,615	$	71,500
Revenue under collaborative research and development arrangements with affiliated entities	49,949		1,172,126
Other revenue	281,556		83,648
Total revenues	371,120		1,327,274
Operating expenses:
Research and development	39,044,418		19,111,188
General and administrative	13,881,194		7,448,354
Total operating expenses	52,925,612		26,559,542
Loss from operations	(52,554,492)		(25,232,268)
Other income (expense):
Interest income	769,237		416,569
Interest expense	(513,034)		(2,803,755)
Change in fair value of derivative liability	—		(13,221,977)
Gain (loss) on investment in affiliated entities	(830,475)		13,181,619
Net unrealized loss on available-for-sale equity securities	(847,958)		(5,050,092)
Other income (expense), net	8,978		(425,500)
Net loss before share in net loss of Geneos	(53,967,744)		(33,135,404)
Share in net loss of Geneos	(434,387)		—
Net loss	(54,402,131)		(33,135,404)
Net loss attributable to non-controlling interest	—		594,350
Net loss attributable to Inovio Pharmaceuticals, Inc.	$	(54,402,131)	$	(32,541,054)
Net loss per share attributable to Inovio Pharmaceuticals, Inc. stockholders
Basic and diluted	$	(0.27)	$	(0.26)
Weighted average number of common shares outstanding
Basic and diluted	202,414,445		124,623,263

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SOURCE INOVIO Pharmaceuticals, Inc.

May 10, 2021 4:20 pm

Cohen & Steers Announces Preliminary Assets Under Management and Net Flows For April 2021

PR Newswire

NEW YORK, May 10, 2021 /PRNewswire/ — Cohen & Steers, Inc. (NYSE: CNS) today reported preliminary assets under management of $92.8 billion as of April 30, 2021, an increase of $5.8 billion from assets under management at March 31, 2021. The increase was due to net inflows of $821 million and market appreciation of $5.2 billion, partially offset by distributions of $200 million.

Assets Under Management
(unaudited)

($ in millions)	AUM	Net	Market		AUM
By investment vehicle:	3/31/2021	Flows	Appreciation	Distributions	4/30/2021
Institutional Accounts:
Japan Subadvisory	$9,924	($129)	$856	($97)	$10,554
Subadvisory excluding Japan	6,335	37	423	–	6,795
Advisory	20,279	406	1,272	–	21,957
Total Institutional Accounts	36,538	314	2,551	(97)	39,306
Open-end Funds	38,623	406	2,139	(54)	41,114
Closed-end Funds	11,879	101	490	(49)	12,421
Total AUM	$87,040	$821	$5,180	($200)	$92,841

About Cohen & Steers
Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong and Tokyo.

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SOURCE Cohen & Steers, Inc.

May 10, 2021 4:20 pm

PRA Group Announces New Office and Call Center in Australia

PR Newswire

NORFOLK, Va., May 10, 2021 /PRNewswire/ — PRA Group (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, today announced the opening of a new office and call center in Brisbane, Australia. The new site will have the ability to employ approximately 45 employees and the Company believes it will reach full capacity in the coming years.

“We are excited to expand our footprint by opening a new office and call center in Brisbane. The Australian market is going through a period of change, much of which, we believe, is being driven by the regulatory market. Stronger regulatory environments present an opportunity for PRA given our founding philosophy of doing things the right way, for the right reason and for the long term. We focus on treating our customers with professionalism, respect, and flexibility. We believe this positions us well in Australia’s evolving market,” said Kevin Stevenson, president and chief executive office of PRA Group, Inc.

About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

Investor Contact:

Darby Schoenfeld, CPA
Vice President, Investor Relations
(757) 431-7913
[email protected]

News Media Contact:

Elizabeth Kersey

Senior Vice President, Communications and Public Policy
(757) 431-3398
[email protected]

View original content:http://www.prnewswire.com/news-releases/pra-group-announces-new-office-and-call-center-in-australia-301287833.html

SOURCE PRA Group