Market Newsdesk

$140 million in revenues and positive operating income in a challenging market

Continuous dividend payments and reduction of debt

Accretive charters of all three LNG’s

Tight cost controls led to decrease in operating expenses

TEN would like to offer its sincere gratitude to the Command and Officers of the US Coast Guard, for their successful efforts to rescue one of our seafarers from serious illness under difficult circumstances. Events like this make us all proud to belong to the international shipping community, of which the US Coast Guard leads by example.

ATHENS, Greece, June 29, 2021 (GLOBE NEWSWIRE) — TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results (unaudited) for the quarter ended March 31, 2021.

Q1 2021 SUMMARY RESULTS


In the first quarter of 2021, under the challenging backdrop of the pandemic that affected tanker rates, TEN generated gross revenues of about $140 million and operating income of $2.2 million.

Management took advantage of this low-rate period to bring forward a number of scheduled dry-dockings in order to have a bigger pool of vessels available to achieve higher rates once markets rebound. As a result, TEN incurred modest net losses of $4.8 million in this challenging market.

During this time, revenue generated from time-charter contracts was again sufficient to cover the Company’s cash expenses (opex, overheads, charter-in and loan interest), a cornerstone of TEN’s chartering strategy.

Fleet utilization at a healthy 92% despite the heavy dry-docking schedule in the first quarter of 2021.

The daily average TCE per vessel was $18,121 during the 2021 first quarter, comfortably above our fleet daily average breakeven and comparing favorably to market rates. Adjusted EBITDA for the first quarter of 2021 amounted to $37.3 million.

Thanks to tight controls, average vessel daily operating expenses fell by 6% to $7,426 from $7,886, despite dry-docking expenses and costs related to travel difficulties incurred by crew due to Covid related restrictions, and the weakening US dollar.

Interest and finance costs were reduced as a result of debt reduction and lower margins on new loans or existing loans that were refinanced at more attractive rates and a $5 million positive move in bunker hedge valuations.

General and administrative expenses together with management fees were almost unchanged from the 2020 first quarter.

Depreciation and amortization combined remained at approximately $35.0 million.

By the end of the first quarter of 2021, TEN’s net debt to capital was at 50%.

RECENT EVENTS AND OTHER


In the first half of 2021, TEN successfully chartered all three of its LNG carriers to significant gas concerns with a duration ranging from twelve months to five years. The new charters will result to an additional $50 million in minimum annual revenues.

In May and June 2021, the Company sold three of its vessels, a 2003-built panamax product tanker and two 2005-built suezmaxes, and generated free cash, in excess of $20.5 million, after the repayment of related debt amounting to $32.3 million.

The Company’s fleet renewal program continues to be on target, regardless of the obstacles imposed by Covid-19 with our LNG “TENERGY” and DP2 shuttle tanker “PORTO”, to be delivered by South Korean yards.

DIVIDEND – COMMON SHARES


The Company will pay a dividend of $0.10 per common share on July 20, 2021, to shareholders of record as of July 14, 2021. Inclusive of this payment, TEN has paid common shareholders approximately half a billion dollars in dividends, equating to about $26 million per annum since its listing on the NYSE in 2002.

The Company’s ATM program for preferred and common shares has netted $18.5 million.

CORPORATE STRATEGY

The Company remains committed and at the forefront of structural, technical and environmental changes that our industry is facing, similar to actions taken following the OPA90 legislation, management is closely monitoring the changes of vessel hull and combustion through our Environment and Operations Committee and in close co-operation with our top clients. As TEN has proved over the recent past, fleet renewal remains high on its agenda.

In the meantime, the company is well positioned for the expected upturn in tanker market rates. The preservation of healthy cash reserves and debt reduction will be the principal drivers in safeguarding the Company’s balance sheet going forward.

“TEN is preparing itself for the rebound, expected to be similar to the one in the container and dry cargo markets. In the meantime, management is planning accretive long-term moves that will propel the Company into a new phase of development” Mr. George Saroglou, COO of TEN commented.      

CONFERENCE CALL

Today, Tuesday, June 29, 2021 at 10:00 a.m Eastern Time, TEN will host a conference call to review the results as well as management’s outlook for the business. The call, which will be hosted by TEN’s senior management, may contain information beyond that which is included in the earnings press release.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 877 55 39962 (US Toll Free Dial In), 0808 2380 669 (UK Toll Free Dial In) or +44 (0)2071 928592 (Standard International Dial In). Please quote “Tsakos” to the operator.

To listen to the archived audio file, visit our website www.tenn.gr and click on Corporate Presentations under our Investors Relations page. The audio replay of the conference call will remain available until Tuesday, July 6, 2021.

Simultaneous Slides and Audio Webcast:

There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN’s website (www.tenn.gr). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company’s corporate website reception page at www.tenn.gr. Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TEN

TEN, founded in 1993 and celebrating this year 28 years as a public company, is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 68 double-hull vessels, including one LNG carrier and one suezmax DP2 shuttle tanker under construction, constituting a mix of crude tankers, product tankers and LNG carriers, totaling 7.5 million dwt.

TEN’s GROWTH PROGRAM

#	Name	Type	Delivery	Status	Employment
1	TENERGY	LNG	2021	Under Construction	Yes
2	PORTO	DP2 Shuttle	2022	Under Construction	Yes

ABOUT FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information, please contact:

Company

Tsakos Energy Navigation Ltd.
George Saroglou
COO
+30210 94 07 710
[email protected]

Investor Relations / Media

Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
[email protected]

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
Selected Consolidated Financial and Other Data
(In Thousands of U.S. Dollars, except share, per share and fleet data)
		Three months ended
		March 31 (unaudited)
STATEMENT OF OPERATIONS DATA		2021						2020
Voyage revenues	$	139,013					$	178,899
Voyage expenses		47,298						32,711
Charter hire expense		6,118						5,140
Vessel operating expenses		41,483						45,488
Depreciation and amortization		35,052						34,828
General and administrative expenses		6,844						7,603
Gain on sale of vessels		–						(1,638	)
Total expenses		136,795						124,132
Operating income		2,218						54,767
Interest and finance costs, net		(7,043	)					(33,593	)
Interest income		127						391
Other, net		(113	)					408
Total other expenses, net		(7,029	)					(32,794	)
Net income (loss)		(4,811	)					21,973
Less: Net income attributable to the noncontrolling interest		(11	)					(752	)
Net income (loss) attributable to Tsakos Energy Navigation Limited	$	(4,822	)				$	21,221
Effect of preferred dividends		(8,095	)					(10,207	)
Deemed dividend on Series G convertible preferred shares		(1,714	)					–
Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited, basic	$	(14,631	)				$	11,014
Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited, diluted	$	(14,631	)				$	12,017
Earnings (Loss) per share, basic	$	(0.80	)				$	0.58
Earnings (Loss) per share, diluted	$	(0.80	)				$	0.58
Weighted average number of common shares, basic		18,203,282						19,122,761
Weighted average number of common shares, diluted		18,203,282						20,867,193
BALANCE SHEET DATA		March 31						December 31
		2021						2020
Cash		126,898						171,771
Other assets		279,441						276,362
Vessels, net		2,584,485						2,615,112
Advances for vessels under construction		68,101						49,030
Total assets	$	3,058,925					$	3,112,275
Debt, net of deferred finance costs		1,472,259						1,500,357
Other liabilities		210,191						230,100
Stockholders’ equity		1,376,475						1,381,818
Total liabilities and stockholders’ equity	$	3,058,925					$	3,112,275
		Three months ended
OTHER FINANCIAL DATA		March 31
		2021						2020
Net cash from operating activities	$	12,425					$	57,453
Net cash (used in) from investing activities	$	(19,988	)				$	22,546
Net cash used in financing activities	$	(37,309	)				$	(56,918	)
TCE per ship per day	$	18,121					$	26,629
Operating expenses per ship per day	$	7,426					$	7,886
Vessel overhead costs per ship per day	$	1,152					$	1,279
		8,578						9,165
FLEET DATA
Average number of vessels during period		66.0						65.3
Number of vessels at end of period		66.0						65.0
Average age of fleet at end of period	Years	9.5						9.0
Dwt at end of period (in thousands)		7,277						6,998
Time charter employment – fixed rate	Days	1,967						2,511
Time charter employment – variable rate	Days	1,080						1,735
Period employment pool/(coa) at market rates	Days	106						89
Spot voyage employment at market rates	Days	2,287						1,421
Total operating days		5,440						5,756
Total available days		5,940						5,943
Utilization		91.6%						96.9%
Non-GAAP Measures
Reconciliation of Net income (loss) to Adjusted EBITDA
		Three months ended
		March 31
		2021						2020
Net income (loss) attributable to Tsakos Energy Navigation Limited		(4,822	)					21,221
Depreciation and amortization		35,052						34,828
Interest Expense		7,043						33,593
Gain on sale of vessels		–						(1,638	)
Adjusted EBITDA	$	37,273					$	88,004
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. We are using the following Non-GAAP measures:
(i) TCE which represents voyage revenue less voyage expenses is divided by the number of operating days less 180 days lost for the first quarter of 2021 as a result of calculating revenue on a loading to discharge basis, compared to 200 days lost for the first quarter of 2020.
(ii) Vessel overhead costs are General & Administrative expenses, which also include Management fees, Stock compensation expense and Management incentive award.
(iii) Operating expenses per ship per day which exclude Management fees, General & Administrative expenses, Stock compensation expense and Management incentive award.
(iv) EBITDA. See above for reconciliation to net income (loss).
Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.
The Company does not incur corporation tax.

—Dr.
Munyikwa
Appointed as
Director of Regulatory Affairs—

—Dr. Renegar Appointed as Director, Business Analytics and Operations—

WOBURN, Mass., June 29, 2021 (GLOBE NEWSWIRE) — Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience company, today announced two new hires. Tichafa Munyikwa, Ph.D. has been appointed Director of Regulatory Affairs. In this new role, Dr. Munyikwa will be responsible for developing and executing regulatory strategy for Yield10’s performance and content traits deployed in Camelina. In addition, Nicholas Renegar, Ph.D. has been appointed Director, Business Analytics and Operations. In this new role, Dr. Renegar will be responsible for business analytics and project management as well as supporting Yield10’s business development, supply chain development, and seed operations activities.

“We are delighted to have Tichafa join the Yield10 team as we are scaling up seed production and intensifying our efforts to develop and commercialize performance traits as well as novel traits to produce nutritional oils, meal and PHA bioplastics on our Camelina platform,” said Oliver Peoples, Ph.D., President and Chief Executive Officer of Yield10. “Tichafa’s experience in major agricultural companies as well as with startups provides him with a unique perspective on developing new crops and products for the agricultural sector. We are confident he will make important contributions and provide our team with invaluable strategic insights and guidance on achieving regulatory approval to enable commercialization of our agbiotech crops and products.”

“Nick brings to this role a strong background in food safety and global supply chain analytics, areas we will be focused on as we advance Yield10’s Camelina business plan,” said Dr. Peoples. “We are delighted to welcome Nick to Yield10 and look forward to his contributions as he will serve as an important asset to the team as we expand our seed scale up across Canada, the U.S. and South America and as we intensify our commercial and business development activities.”

Dr. Munyikwa possesses 25 years’ experience working in the agriculture sector in a career spanning crop research and development, global regulatory affairs and management as well as successfully obtaining regulatory approval for several genetically modified crops. From 2018 to 2021, he was Vice President, Global Regulatory Affairs for Trait Biosciences and Pebble Labs. From 2008 to 2018, Dr. Munyikwa held various positions at Syngenta Company in regulatory affairs and trait R&D, most recently as Global Regulatory Affairs Lead for New Technologies and Early Phase Research Projects (2014-2018) and Chair, Plant Breeding Innovations Team, Genome Editing (2013 to 2018). From 1998 to 2007, Dr. Munyikwa was at Monsanto Company (now Bayer) where he joined as a post-doc and became a Senior Research Scientist in the Biotechnology Program in 1999. At Monsanto he was named an inventor on six issued patents and focused on experimental and commercialization strategies for RNAi (gene silencing) technology and mechanisms of plant disease resistance.

In his professional experience, Dr. Munyikwa has been a board member for the International Enzyme Technical Association, North Carolina State University Genetic Engineering & Society Institute, and the Association of African Agricultural Professionals in Diaspora (AAAPD). Dr. Munyikwa earned a Ph.D. at Wageningen University, The Netherlands. He earned an M.S. in Biotechnology – Molecular Biology, Fermentation Technology and a B.S. in Biological Sciences Microbiology, Parasitology, Invertebrate Zoology from the University of Zimbabwe.

Dr. Renegar recently earned a Ph.D. in Operations Research from the MIT Sloan School of Management, Cambridge, MA, where he was advised by Professor Retsef Levi. While pursuing his Ph.D., Dr. Renegar was a member of MIT’s Operations Research Center, and MIT’s Food Supply Chain Analytics and Sensing (FSAS) Initiative. He has conducted and published research in food safety, including supply chain analytics, big data and optimization, with a focus on international supply chains and China. His Doctoral Thesis is entitled “Predictive Analytics and Machine Learning for the Risk-Based Management of Agricultural Supply Chains”. Dr. Renegar has also worked on auction theory and online algorithms, including a research internship at Google, Inc. focused on mechanism design for search ads. Prior to MIT, from 2010 to 2015, Dr. Renegar worked as a Healthcare Consulting Actuarial Analyst at Milliman, Inc. where he utilized predictive analytics to help healthcare organizations plan for the future. Dr. Renegar earned a B.A. in Mathematics and a B.S. in Operations Research at Cornell University.

About Yield10 Bioscience

Yield10 Bioscience, Inc. is an agricultural bioscience company that is using its differentiated trait gene discovery platform, the “Trait Factory”, to develop improved Camelina varieties to produce proprietary seed products, and to discover high value genetic traits for the agriculture and food industries. Our goals are to efficiently establish a high value seed products business based on developing superior varieties of Camelina to produce feedstock oils, nutritional oils, and PHA bioplastics, and to license our yield traits to major seed companies for commercialization in major row crops, including corn, soybean and canola. Yield10 is headquartered in Woburn, MA and has an Oilseeds Center of Excellence in Saskatoon, Canada.

For more information about the company, please visit www.yield10bio.com, or follow the Company on Twitter, Facebook and LinkedIn.

(YTEN-G)

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical, including, without limitation, that Dr. Munyikwa will make important contributions and provide Yield10 with invaluable strategic insights and guidance on achieving regulatory approval to enable commercialization of the Company’s agbiotech crops and products, and that Dr. Renegar will serve as an important asset to Yield10 as the Company expands its seed scale up across Canada, the U.S. and South America and as the Company intensifies its commercial and business development activities, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including the risks and uncertainties detailed in Yield10 Bioscience’s filings with the Securities and Exchange Commission. Yield10 assumes no obligation to update any forward-looking information contained in this press release or with respect to the matters described herein.

Contacts:

Yield10 Bioscience:
Lynne H. Brum, (617) 682-4693, [email protected]

Investor Relations:
Bret Shapiro, (561) 479-8566, [email protected]
Managing Director, CORE IR

Media Inquiries:
Eric Fischgrund, [email protected]
FischTank PR

 

• First-of-its-kind production part designed to complement high-performance exotic vehicle – delivering unparalleled quality, durability, and luxury
• 3D Systems’ Application Innovation Group, DMP Factory 500, instrumental in delivering novel part

ROCK HILL, S. C., June 29, 2021 (GLOBE NEWSWIRE) — 3D Systems (NYSE:DDD) today announced Rodin Cars, the New Zealand-based manufacturer of the ultimate track car, has selected 3D Systems’ metal additive manufacturing solutions to produce parts for its soon-to-be-released hypercar, the Rodin FZero. Rodin Cars designs and builds completely bespoke single-seat, open-wheel high-performance vehicles that are designed to be faster than contemporary Formula 1 cars. Among the hundreds of metal parts Rodin Cars is additively manufacturing for the Rodin FZero, they are producing a first-of-its-kind 8-speed sequential gearbox with a hydraulically controlled differential. This completely custom component can only be produced using additive manufacturing and was made possible through the collaboration of Rodin Cars’ design prowess and 3D Systems’ deep application expertise and additive manufacturing leadership.

A gearbox created using traditional manufacturing methods would be cast out of Magnesium or machined from billet material. The resulting component would not only be slow to produce, but heavier and would not withstand the rigors presented by the track. Rodin Cars wanted to flip this design into a true innovation – the ultimate component produced from 3D printed Titanium that would be compact, light, strong, and durable.

Rodin Cars released their first high-performance track car – the Rodin FZed – in 2019 with a gearbox designed by Ricardo, a UK-based engineering firm. For the new Rodin FZero, Rodin Cars envisioned a brand new gearbox with specific gear ratios and differential produced from Titanium to enhance the exotic reputation of this new high-performance vehicle. The 18-month design process – a collaboration between Rodin Cars for the casings and Ricardo for the internals – resulted in an unmatched gearbox with a hydraulically controlled differential that can only be produced using additive manufacturing due to its ability to directly 3D-print the necessary internal galleries and thin-wall bearing and mount structures. Rodin Cars’ engineers worked alongside members of 3D Systems’ Application Innovation Group (AIG) in Littleton, Colorado, and Leuven, Belgium to bring this unique design to life.

The application engineers that comprise 3D Systems’ AIG possess deep expertise not only in additive manufacturing but in high-value applications across a variety of industries – including motorsports. The teams’ engineering know-how combined with 3D Systems’ industry-leading direct metal printing (DMP) technology helped facilitate the production of the new gearbox that includes 2mm thick walls and a total weight of 68 kilograms. The application engineers in Littleton optimized the gearbox print design details for additive manufacturing at the large scale achievable on the DMP Factory 500 and produced the first part on its DMP Factory 500 in Leuven. This industry-leading solution – featuring a vacuum chamber to ensure the lowest O₂ content – enables the production of seamless large parts as large as 500mm x 500mm x 500mm. This results in the highest surface quality for metal 3D printed parts with outstanding material properties. 3D Systems’ AIG has successfully completed the technology transfer to Rodin Cars for full production. Rodin Cars recently installed a DMP Factory 500 on-site at its newly expanded facility and will produce the gearbox, as well as hundreds of other bespoke parts, for the Rodin FZero.

“3D printing allows us to design and create components otherwise unachievable using traditional methods of manufacturing,” said David Dicker, founder, Rodin Cars. “With the Rodin FZERO gearbox, we had specific criteria we wanted to meet in terms of weight and durability. Because of the size and quality required for such a large component, it was only possible to print it on 3D Systems’ DMP Factory 500 machine. We couldn’t source another AM supplier who was able to offer a similar solution for our needs – the print quality, volume capacity, testing facilities in Leuven, and continued technological support.”

In addition to 3D Systems’ DMP technology, Rodin Cars is also using the company’s selective laser sintering (SLS) technology for production parts and stereolithography (SLA) to produce tooling for carbon fiber forms.

“Additive manufacturing is enabling industry leaders to defy limitations and stand apart,” said Kevin Baughey, segment leader, transportation & motorsports, 3D Systems. “As a high technology, high-performance car constructor, Rodin Cars delivers unparalleled vehicles to their customers. This is a shining example of how additive manufacturing not only enables parts to be produced that couldn’t be created through conventional methods, it is also delivering a lighter, more durable, beautiful vehicle. It’s the blending of the art of design with the science of hyper-performance cars and motorsports.”

Forward-Looking Statements

Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward-looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions, and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as of the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.

About 3D Systems

More than 30 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction – empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials, and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in healthcare and industrial markets such as medical and dental, aerospace & defense, automotive, and durable goods. More information on the company is available at www.3dsystems.com.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5de76fa3-0bb2-4f28-a781-b5237ff35d89 

Investor Contact: [email protected]
Media Contact: [email protected]

Cites Declining Financial and Stock Price Performance, Including as Compared to its Competitors

Believes a Sale is Optimal Outcome for Stockholders in View of Execution Risk of Highly Uncertain Turnaround Plan

Intends to Withhold Authority to Vote its Shares from the Election of CEO Mukerjee and Chairman Gaffney as Directors at 2021 Annual Meeting

CHICAGO, June 29, 2021 (GLOBE NEWSWIRE) — Lakeview Investment Group & Trading Company, LLC, which beneficially owns 1,031,591 shares of common stock of TESSCO Technologies Incorporated (NasdaqGS: TESS) (“Tessco” or the “Company”), making it Tessco’s second largest stockholder, today issued a letter to the Board of Directors of the Company calling upon the Board to retain a reputable investment bank to run a full and fair process to sell the Company. The full text of the letter is included below:

Board of Directors
TESSCO Technologies Incorporated
11126 McCormick Road
Hunt Valley, Maryland 21031

Dear Members of the Board,

Lakeview Investment Group & Trading Company, LLC (“Lakeview”) owns 1,031,591 shares of TESSCO Technologies Incorporated (“Tessco” or the “Company”), representing approximately 11.6% of the outstanding shares, making Lakeview the Company’s second largest stockholder. We are writing today to express our view that Tessco retain a reputable investment bank to run a full and fair process to sell the Company.

We have followed the Company closely for two decades, from the relatively early days of the cellular wireless industry. After a long history of profitability, the past five years have seen the Company’s profit turn increasingly negative, as can be seen in the chart below:¹

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5a502fd5-56bc-4fb3-8709-956ecf971ddf

After our initial discussions with CEO Sandip Mukerjee not long after he was hired in 2019, we were hopeful that a turnaround would occur, but in recent quarters, any confidence we had has dissipated. Mukerjee has now been with the Company for two years, during which time there has been more value destruction (as measured by profitability) than any two-year period in the Company’s nearly 30-year history as a public company. Under his leadership, the Company has consistently overpromised and underdelivered, guiding toward breakeven in recent quarters, but has completely missed the mark and lost approximately $15.6 million from continuing operations before taxes (or roughly $1.80 per share) in the past year alone (not including an astounding $2.6 million spent to oppose founder and largest stockholder Robert Barnhill’s consent solicitation process). Furthermore, at a run rate of approximately $85.5 million of selling, general, and administrative expenses, or approximately 22.9% of sales, the Company is spending stockholder capital at an unsustainable rate. The Company also appears to be losing significant market share, as the revamp of the Company’s sales team, highlighted by the hiring of Senior Vice President of Commercial Sales Eddie Franklin, who was brought on in April 2020 following Mukerjee’s hiring but who left the Company just over a year later, has clearly fallen well short of expectations.

Although the Company continues to try to spin its recent performance in a positive light, its financial and stock performance indicate the opposite, particularly when viewed in comparison to other companies that Tessco identifies as its peers. (It is worth noting that the Company, in its most recent Form 10-K, includes only two publicly traded comparable companies, down from four just a year ago, as Anixter International Inc. and Tech Data Corp. were both recently acquired, evidence that the industry is ripe for further consolidation.) Although the Company has blamed in part the impact of COVID-19 for its recent underperformance, the pandemic does not explain the continued margin deterioration it has experienced over the last few years, whereas both of its public competitors have seen margins recover after a brief COVID-19 related dip. This discrepancy in financial performance is borne out in the chart below, included in the Company’s most recent Form 10-K, comparing Tessco’s stock performance against its self-identified competitors as well as the Russell 2000. In the face of a rising bull market overall, and strong performance by the Company’s self-selected peers, Tessco has destroyed tremendous stockholder value.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5fed8235-4892-463a-a081-ad12eb461ab2

While management claims to have a turnaround plan and preaches patience, no guidance has been forthcoming from the Company and the details of that plan remain vague.   Undertaking a turnaround in the glare of the public markets is fraught with execution risk and will require proper management overnight (which we believe current leadership has failed to demonstrate) and substantial time and expense to reverse the Company’s mounting losses and bloated cost structure, all for a highly uncertain future. Therefore, we strongly believe that a sale of the Company is the optimal outcome for stockholders.

Tessco is at a major inflection point, and if the Company does not expeditiously pursue a bona fide sale process, we fear that considerably more value will be destroyed for stockholders. Tessco trades below its net asset value and has sufficient liquidity available on its line of credit, plus unencumbered real estate that our due diligence suggests is worth at least $30 million and for which the public markets do not give it credit. However, we are highly concerned that as the Company continues to lose money, the debt will continue to build, the net asset value will continue to decline, and the stock price will follow. As a nano-cap public company with extremely low trading volume, minimal analyst coverage, consistently poor performance in recent years, and inflated public company costs, we believe there is no justification for Tessco to remain public.

We believe there are a number of strategic and financial buyers who would have a genuine interest in pursuing a transaction with the Company, and are in fact aware of the Company’s refusal to engage with potentially interested parties on more than one occasion, in an apparent dereliction of the Board’s fiduciary duties to stockholders. As we have done, we urge the Board to assess the risk-adjusted long-term value that might be realized in the future by executing management’s plan and weigh this against the value that is realizable in the near-term through a sale of the Company.

In addition, we have serious concerns with the role that CEO Sandip Mukerjee and Chairman Paul Gaffney, the Company’s longest-tenured continuing director, have played in overseeing the Company’s declining financial and stock price performance and implementing a number of stockholder-adverse corporate governance actions (including increasing the share ownership requirement from 25% to 50% for stockholders to call a special meeting, which was voted down by stockholders as part of Mr. Barnhill’s consent solicitation process, and implementing a mandatory director retirement age that appeared to be designed to force the Company’s largest stockholder off the Board). For these reasons, we intend to express our dissatisfaction with Messrs. Mukerjee and Gaffney by WITHHOLDING AUTHORITY to vote our shares with respect to their election as directors at the Company’s upcoming 2021 annual meeting of stockholders.

We look forward to having a direct and constructive engagement with the Board to ensure that the Company pursues a full and fair sale process with the singular goal of maximizing value for stockholders.

Sincerely,

/s/ Ari B. Levy

Ari B. Levy
Manager

About Lakeview Investment Group

Lakeview Investment Group is a Chicago-based investment manager, founded in 2004, with a focus on small- and mid-cap companies.  Lakeview’s strategy focuses primarily on long-term investments in companies trading at significant discounts to its estimate of intrinsic value.  On select occasions, Lakeview engages directly with company management to help drive shareholder value.

Media and Investor Contact

Lakeview Investment Group & Trading Company, LLC
Ari Levy, [email protected]
Tim Won, [email protected]
(312) 245-2910

_______________
¹ Excluding goodwill impairment and restructuring charges.

LONDON, June 29, 2021 (GLOBE NEWSWIRE) — On June 23, 2021, Ferroglobe PLC (the “Parent”), Ferroglobe Finance Company, PLC (the “UK Issuer”) and Globe Specialty Metals, Inc. (“Globe” and, together with the UK Issuer, the “Issuers”) commenced the following transactions pursuant to the offering and consent solicitation memorandum dated June 23, 2021 (the “Offering and Consent Solicitation Memorandum”):

• an exchange offer (the “Exchange Offer”) of any and all of the 9⅜% Senior Notes due 2022 issued by the Parent and Globe (the “Old Notes”) 2022 for a combination of new 9⅜% senior secured notes due 2025 (the “New Notes”) and equity fee;
• a solicitation of consents to certain proposed amendments to the indenture governing the Old Notes; and
• an offer (the “Super Senior Notes Offer”) to the existing holders of the Old Notes to subscribe to additional senior secured notes due 2025 (the “Super Senior Notes”).

Exchange Offer

In connection with the Exchange Offer, the Issuers hereby notify the Qualifying Noteholders of the following ISIN and common codes with respect to the New Notes to be issued on the Settlement Date:

IAI: XS2360592609 / 236059260 144A: XS2360592195 / 236059219 Reg S: XS2360591890 / 236059189

The Exchange Offer is scheduled to expire at 11:59 p.m., New York City time, on July 21, 2021, unless extended as provided in the Offering and Consent Solicitation Memorandum. For Qualifying Noteholders Participating in the Super Senior Notes Offer, the deadline for submitting Custody Instructions to DTC on the Exchange Offer and the Consent Solicitation is July 7, 2021.

Super Senior Notes Offer

In connection with the Super Senior Notes Offer, the UK Issuer hereby notifies Qualifying Noteholders of the following temporary ISIN and common codes with respect to the additional Super Senior Notes to be issued on the Settlement Date:

IAI: XS2360518208 / 236051820 144A: 236051765 / XS2360517655 Reg S: XS2360513746 / 236051374

The Super Senior Notes Offer Subscription Deadline is July 7, 2021.

Capitalized terms used but not defined in this release shall have the meanings set forth in the Offering and Consent Solicitation Memorandum.

About Ferroglobe

Ferroglobe PLC is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe Issuers’ future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to Issuers and assumptions that management believe to be reasonable but are inherently uncertain. As a result, Issuers’ actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Ferroglobe’s control.

All information in this press release is as of the date of its release. Issuers do not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

INVESTOR CONTACT:

Gaurav Mehta
Executive Vice President – Investor Relations
[email protected] 

MEDIA CONTACT:

Cristina Feliu Roig
Executive Director – Communications & Public Affairs
[email protected]