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PowerSchool Announces Second Quarter 2021 Financial Results

FOLSOM, Calif.–(BUSINESS WIRE)–
PowerSchool Holdings, Inc. (NYSE: PWSC) (“PowerSchool” or the “Company”), the leading provider of cloud-based software for K-12 education, today announced financial results for its second quarter ended June 30, 2021.

“The demand for our unified solutions that help accelerate learning outcomes and improve school operations is demonstrated by continued business momentum driving strong and balanced results in the second quarter,” said Hardeep Gulati, PowerSchool CEO. “We believe our unified solutions are filling that need for our customers and are helping to drive real impact within their communities. The funding environment for K-12 education remains robust and has resulted in continued investments in technology from our school and district customers, and the momentum we are seeing gives us confidence in our ability to deliver on our 2021 and 2022 plans.”

Second Quarter 2021 Financial Results

• Total revenue was $145.4 million for the three months ended June 30, 2021, up 41.0% year-over-year.
• Subscriptions and Support revenues were $121.8 million, up 37.5% year-over-year.
• Gross Profit was $85.6 million, or 58.9% of total revenue, compared to 57.1 million, or 55.4% of total revenue, in the prior year period. Adjusted Gross Profit was $99.6 million, or 68.5% of total revenue, compared to $67.3 million, or 65.2% of total revenue, in the prior year period.
• Net loss was $2.5 million compared to $12.4 million in the prior year period, an improvement of 79.5% year-over-year. Adjusted EBITDA was $50.2 million compared to $31.6 million in the prior year period, up 58.8% year-over-year. Adjusted EBITDA margin was 34.5%, up 12.6% year-over-year.
• Net cash provided by operations was $0.5 million, compared to net cash used in operations of $5.9 million in the prior year period. Free cash flow was negative $11.9 million compared to negative $14.6 million in the prior year period. Unlevered free cash flow was $5.6 million compared to $8.9 million in the prior year period.
• Annual Recurring Revenue (ARR) was $526.6 million (including the impact from our most recent acquisition), up 30.7% year-over-year.
• Net Revenue Retention Rate was 108.0%, compared to 107.0% in the prior year period.

* Definitions of the key business metrics and the non-GAAP financial measures used in this press release and reconciliations of such measures to the most closely comparable GAAP measures are included below under the headings “Definitions of Certain Key Business Metrics” and “Use and Reconciliation of Non-GAAP Financial Measures.”

Recent Business Highlights

• PowerSchool became a publicly listed company on the New York Stock Exchange after completing its initial public offering (“IPO”) on July 30, 2021, raising $673.2 million, net of underwriting discounts and commissions, used primarily to pay down debt. Subsequent to the IPO, on August 10, 2021, the underwriters exercised their option to purchase additional shares, raising an additional $92.9 million, net of underwriting discounts and commissions.
• PowerSchool pledged $1 million of the IPO proceeds to the PowerSchool Education Fund which aims to provide over 2,500 education students from diverse backgrounds with financial support to cover their teacher certification.
• PowerSchool had continued success with over 400 cross-sell transactions in the second quarter of 2021, including Miami-Dade County Public Schools, the fourth largest school district by student enrollment in the U.S., selecting to deploy Unified Classroom™ Schoology Learning and the South Carolina State Department of Education expanding their PowerSchool SIS deployment with eCollect Forms.
• PowerSchool launched Unified Classroom™ 2021, bringing together market-leading K-12 classroom technology to simplify teaching and learning.
• PowerSchool received recognition as Best Learning Management System and Best Data Management Solution for its Unified Classroom™ Schoology Learning and Unified Insights™ Powered by Hoonuit as part of the Software & Information Industry’s (SIIA) 2021 CODiE Awards.
• Hardeep Gulati was recognized as EdTech CEO of the year by the EdTech Breakthrough Awards.
• PowerSchool added Ronald McCray to its board of directors and audit committee, bringing his history of leadership in large organizations and public company board experience to PowerSchool’s board of directors.

Commenting on the Company’s financial results, Eric Shander, PowerSchool CFO added, “Our results this quarter reflected the momentum in the environment, and our ability to drive continued Annualized Recurring Revenue growth through new customer acquisition, cross-selling opportunities, and our recent strategic acquisition of Hobsons. We remain focused on delivering for our customers by providing market leading cloud-based solutions powering the K-12 education ecosystem.”

Financial Outlook

The Company currently expects the following results:

Quarter ending September 30, 2021 (in millions)
Total revenue		$140		to		$143
Adjusted EBITDA *		$36		to		$39
Year ending December 31, 2021 (in millions)
Total revenue		$542		to		$545
Adjusted EBITDA *		$150		to		$153

* Adjusted EBITDA, a non-GAAP financial measure was not reconciled to net loss, the most closely comparable GAAP financial measure because net loss is not accessible on a forward-looking basis. The Company is unable to reconcile Adjusted EBITDA to net loss without unreasonable efforts because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact net loss for these periods but would not impact Adjusted EBITDA. Such items include stock-based compensation charges, depreciation and amortization of capitalized software costs and acquired intangible assets, severance, and other items. The unavailable information could have a significant impact on net loss. The foregoing financial outlook reflects the Company’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. The Company does not intend to update its financial outlook until its next quarterly results announcement.

Important disclosures in this earnings release about and reconciliations of historical non-GAAP financial measures to the most closely comparable GAAP measures are provided below under “Use and Reconciliation of Non-GAAP Financial Measures.”

Conference Call and Webcast Information

PowerSchool will host a conference call to discuss the second quarter 2021 financial results on September 9, 2021 at 5:00 p.m. Eastern Time (“ET”). Those wishing to access the call should register through the following link prior to the scheduled conference call time: https://www.incommglobalevents.com/registration/q4inc/8489/powerschool-second-quarter-2021-earnings-conference-call/. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. Registration is open through the time of the live call, however to ensure you are connected for the full call, we suggest registering one day in advance or at a minimum, ten (10) minutes before the start of the call.

A live audio webcast of the conference call will also be available through PowerSchool’s Investor Relations website at https://investors.powerschool.com/home/. A replay of the conference call will be available within two hours of the conclusion of the live call through PowerSchool’s Investor Relations website. The replay will be available until September 16, 2021.

About PowerSchool

PowerSchool (NYSE: PWSC) is the leading provider of cloud-based software for K-12 education. Its mission is to power the education ecosystem with unified technology that helps educators and students realize their full potential, in their way. PowerSchool connects students, teachers, administrators, and parents, with the shared goal of improving student outcomes. From the office to the classroom to the home, it helps schools and districts efficiently manage state reporting and related compliance, special education, finance, human resources, talent, registration, attendance, funding, learning, instruction, grading, assessments and analytics in one unified platform. PowerSchool supports over 45 million students globally and more than 12,000 customers, including 93 of the top 100 districts by student enrollment in the United States, and sells solutions in over 90 countries.

Forward Looking Statements

Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including our financial outlook and descriptions of our business plan and strategies. Forward-looking statements are based on PowerSchool management’s beliefs, as well as assumptions made by, and information currently available to, them. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: potential effects on our business of the COVID-19 pandemic; our history of cumulative losses; competition; our ability to attract new customers on a cost-effective basis and the extent to which existing customers renew and upgrade their subscriptions; our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth; our ability to retain, hire and integrate skilled personnel including our senior management team; our ability to identify acquisition targets and to successfully integrate and operate acquired businesses; our ability to maintain and expand our strategic relationships with third parties, including with state and local government entities; the seasonality of our sales and customer growth; our reliance on third-party software and intellectual property licenses; our ability to obtain, maintain, protect and enforce intellectual property protection for our current and future solutions; the impact of potential information technology or data security breaches or other cyber-attacks or other disruptions; and the other factors described under the heading “Risk Factors” in the Company’s prospectus dated July 27, 2021 filed with the Securities Exchange Commission (“SEC”) in connection with our IPO. Copies of such filing may be obtained from the Company or the SEC.

We caution you that the factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

Definitions of Certain Key Business Metrics

Annualized Recurring Revenue (“ARR”)

ARR represents the annualized value of all recurring contracts as of the end of the period. ARR mitigates fluctuations due to seasonality, contract term, one-time discounts given to help customers meet their budgetary and cash flow needs and the sales mix for recurring and non-recurring revenue. ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast, and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.

Net Revenue Retention Rate (“NRR”)

We believe that our ability to retain and grow recurring revenues from our existing customers over time strengthens the stability and predictability of our revenue base and is reflective of the value we deliver to them through upselling and cross selling our solution portfolio. We assess our performance in this area using a metric we refer to as Net Revenue Retention Rate (“NRR”). Beginning in the first quarter of 2021, we intend to exclude from our calculation of NRR any changes in ARR attributable to Intersect customers, as this product is sold through our channel partnership with EAB and is pursuant to annual revenue minimums, therefore the business will not be managed based on NRR. We calculate our dollar-based NRR as of the end of a reporting period as follows:

• Denominator. We measure ARR as of the last day of the prior year comparative reporting period.

• Numerator. We measure ARR from renewed and new sale opportunities booked as of the last day of the current reporting period from customers with associated ARR as of the last day of the prior year comparative reporting period.

The quotient obtained from this calculation is our dollar-based net revenue retention rate. Our NRR provides insight into the impact on current year recurring revenues of expanding adoption of our solutions by our existing customers during the current period. Our NRR is subject to adjustments for acquisitions, consolidations, spin-offs and other market activity.

Use and Reconciliation of Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

Adjusted Gross Profit: Adjusted Gross Profit is a supplemental measure of operating performance that is not made under GAAP and that does not represent, and should not be considered as, an alternative to gross profit, as determined in accordance with GAAP. We define Adjusted Gross Profit as gross profit, adjusted for depreciation, unit-based compensation expense, restructuring and acquisition-related expenses and amortization of acquired intangible assets and capitalized product development costs. We use Adjusted Gross Profit to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operating plans. We believe that Adjusted Gross Profit is a useful measure to us and to our investors because it provides consistency and comparability with our past financial performance and between fiscal periods, as the metric generally eliminates the effects of the variability of depreciation, unit-based compensation, restructuring expense, acquisition-related expenses, and amortization of acquired intangibles and capitalized product development costs from period to period, which may fluctuate for reasons unrelated to overall operating performance. We believe that the use of this measure enables us to more effectively evaluate our performance period-over-period and relative to our competitors.

Adjusted EBITDA: Adjusted EBITDA is a supplemental measure of operating performance that is not made under GAAP and that does not represent, and should not be considered as, an alternative to net income (loss), as determined by GAAP. We define Adjusted EBITDA as net (loss) income adjusted for net interest expense, depreciation and amortization, provision for (benefit from) income tax, unit-based compensation expense, management fees, restructuring expense, and acquisition-related expense. We use Adjusted EBITDA to understand and evaluate our core operating performance and trends and to develop short-term and long-term operating plans. We believe that Adjusted EBITDA facilitates comparison of our operating performance on a consistent basis between periods and, when viewed in combination with our results prepared in accordance with GAAP, helps provide a broader picture of factors and trends affecting our results of operations.

Free Cash Flow and Unlevered Free Cash Flow: Free Cash Flow and Unlevered Free Cash Flow are supplemental measures of liquidity that are not made under GAAP and that do not represent, and should not be considered as, an alternative to cash flow from operations, as determined by GAAP. We define Free Cash Flow as net cash provided by operating activities less, cash used for purchases of property and equipment and capitalized product development costs. We define Unlevered Free Cash Flow as Free Cash Flow plus cash paid for interest on outstanding debt. We believe that Free Cash Flow and Unlevered Free Cash Flow are useful indicators of liquidity that provide information to management and investors about the amount of cash generated by our operations inclusive of that used for investments in property and equipment and capitalized product development costs as well as cash paid for interest on outstanding debt.

These non-GAAP financial measures have their limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, these non-GAAP financial measures should not be considered as a replacement for their respective comparable financial measures, as determined by GAAP, or as a measure of our profitability or liquidity. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP measures only for supplemental purposes.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited)
(in thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2021					2020					2021					2020
	(unaudited)										(unaudited)
Revenue:
Subscriptions and support	$	121,763				$	88,533				$	224,854				$	176,254
Service	16,083					11,841					29,036					22,404
License and other	7,557					2,762					9,660					4,553
Total revenue	145,403					103,136					263,550					203,211
Cost of revenue:
Subscriptions and support	33,632					26,681					62,664					51,905
Service	12,795					9,438					23,489					19,040
License and other	531					320					929					615
Depreciation and amortization	12,846					9,588					24,602					18,917
Total cost of revenue	59,804					46,027					111,684					90,477
Gross profit	85,599					57,109					151,866					112,734
Operating expenses:
Research and development	21,929					15,836					40,474					32,927
Selling, general, and administrative	30,653					22,348					55,984					46,130
Acquisition costs	177					—					5,780					2
Depreciation and amortization	16,154					13,871					30,713					27,817
Total operating expenses	68,913					52,055					132,951					106,876
Income from operations	16,686					5,054					18,915					5,858
Interest expense – Net	21,297					17,400					38,559					36,951
Other expense (income) – Net	(376		)			61					(233		)			(1,780		)
Loss before income taxes	(4,235		)			(12,407		)			(19,411		)			(29,313		)
Income tax benefit	(1,690		)			(18		)			(17,349		)			(42		)
Net loss	$	(2,545	)			$	(12,389	)			$	(2,062	)			$	(29,271	)
Other comprehensive income (loss) – Foreign currency translation	(381		)			183					(228		)			(345		)
Total other comprehensive income (loss)	(381		)			183					(228		)			(345		)
Comprehensive loss	$	(2,926	)			$	(12,206	)			$	(2,290	)			$	(29,616	)

CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)	June 30, 2021					December 31, 2020
Assets
Current Assets:
Cash and cash equivalents	$	22,533				$	52,734
Accounts receivable – net of allowance of $4,133 and $7,869, respectively	57,349					47,977
Prepaid expenses and other current assets	32,060					22,799
Total current assets	111,942					123,510
Property and equipment – net	16,783					17,069
Capitalized product development costs – net	70,868					58,894
Goodwill	2,446,869					2,213,367
Intangible assets – net	846,147					763,459
Other assets	37,433					24,401
Total	$	3,530,042				$	3,200,700
Liabilities and Members’ Equity
Current Liabilities:
Accounts payable	$	14,678				$	11,145
Accrued expenses	59,553					53,698
Deferred revenue, current	169,972					229,622
Revolving credit facility	95,000					40,000
Current portion of long-term debt	8,450					8,450
Total current liabilities	347,653					342,915
Noncurrent Liabilities:
Other liabilities	7,650					7,535
Deferred taxes	17,195					6,483
Deferred revenue -net of current	4,198					5,568
Long-term debt, net	1,475,474					1,160,326
Total liabilities	1,852,170					1,522,827
Commitments and contingencies
Members’ Equity:
Members’ investment	1,858,019					1,855,730
Accumulated other comprehensive income	213					441
Accumulated deficit	(180,360		)			(178,298		)
Total members’ equity	1,677,872					1,677,873
Total	$	3,530,042				$	3,200,700

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	Three Months Ended June 30,										Six Months Ended June 30,
(in thousands)	2021					2020					2021					2020
	(unaudited)										(unaudited)
Cash flows from operating activities:
Net loss	$	(2,545	)			$	(12,389	)			$	(2,062	)			$	(29,271	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment	1,663					1,934					3,283					3,874
Amortization of intangible assets	23,534					19,639					44,721					39,280
Amortization of capitalized product development costs	3,804					1,889					7,310					3,584
Loss on disposal/retirement of property and equipment	4					93					4					101
Provision for allowance for doubtful accounts	(272		)			(103		)			(262		)			(38		)
Management incentive unit-based compensation	1,373					1,409					2,737					2,822
Amortization of debt issuance costs and discount	4,226					1,367					6,464					2,735
Changes in operating assets and liabilities — net of effects of acquisitions:
Accounts receivables	(15,698		)			(18,721		)			(735		)			(11,743		)
Prepaid expenses and other current assets	8,778					896					4,266					(1,559		)
Other assets	(8,422		)			(1,976		)			(10,535		)			(2,171		)
Accounts payable	4,848					8,711					1,669					6,184
Accrued expenses	11,135					2,009					1,800					(9,736		)
Other liabilities	(43		)			(60		)			(43		)			(110		)
Deferred taxes	(2,672		)			(16		)			(18,892		)			(138		)
Deferred revenue	(29,190		)			(10,558		)			(90,659		)			(49,717		)
Net cash provided by (used in) operating activities	523					(5,876		)			(50,934		)			(45,903		)
Cash flows from investing activities:
Purchases of property and equipment	(1,831		)			(200		)			(2,172		)			(1,766		)
Proceeds from sale of property and equipment	—					3					13					3
Investment in capitalized product development costs	(10,572		)			(8,535		)			(19,137		)			(16,794		)
Acquisitions—net of cash acquired	—					330					(318,919		)			321
Other	34					—					95					—
Net cash used in investing activities	(12,369		)			(8,402		)			(340,120		)			(18,236		)
Cash flows from financing activities:
Proceeds from Revolving Credit Agreement	10,000					20,000					55,000					61,000
Proceeds from Bridge Loan	—					—					315,200					—
Repayment of First Lien Debt	(1,938		)			(1,938		)			(3,875		)			(3,875		)
Repayment of Incremental Facility	(175		)			(175		)			(350		)			(175		)
Payments for repurchase of management incentive units	—					(989		)			(448		)			(989		)
Payments of deferred offering costs	(1,268		)			—					(2,655		)			—
Payment of debt issuance costs	(1,600		)			—					(2,100		)			—
Repayment of capital leases	(62		)			(17		)			(108		)			(36		)
Net cash provided by financing activities	4,957					16,881					360,664					55,925
Effect of foreign exchange rate changes on cash	$	(178	)			$	886				$	189				$	(1,203	)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(7,067		)			3,489					(30,201		)			(9,417		)
Cash, cash equivalents, and restricted cash—Beginning of period	30,112					26,585					53,246					39,491
Cash, cash equivalents, and restricted cash—End of period	$	23,045				$	30,074				$	23,045				$	30,074

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
Reconciliation of Gross profit to Adjusted gross profit
			Three Months Ended June 30,										Six Months Ended June 30,
(in thousands)			2021					2020					2021					2020
Gross profit			$	85,599				$	57,109				$	151,866				$	112,734
Depreciation			439					419					832					770
Unit-based compensation(1)			81					81					162					161
Restructuring(2)			893					319					1,480					417
Acquisition-related expense(3)			168					196					251					188
Amortization			12,407					9,169					23,769					18,148
Adjusted Gross Profit			$	99,587				$	67,293				$	178,360				$	132,418
Gross Profit Margin(4)			58.9			%		55.4			%		57.6			%		55.5			%
Adjusted Gross Profit Margin(5)			68.5			%		65.2			%		67.7			%		65.2			%

__________________________

(1)		Refers to expenses flowing through gross profit associated with unit-based compensation.
(2)		Refers to expenses flowing through gross profit related to migration of customers from legacy to core products, and severance expense related to offshoring activities, facility closures and executive departures.
(3)		Refers to expenses flowing through gross profit incurred to execute and integrate acquisitions, including retention awards and severance for acquired employees.
(4)		Represents gross profit as a percentage of revenue.
(5)		Represents Adjusted Gross Profit as a percentage of revenue.

Reconciliation of Net loss to Adjusted EBITDA
	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2021				2020				2021				2020
Net loss	$	(2,545	)		$	(12,389	)		$	(2,062	)		$	(29,271	)
Add:
Amortization	27,337				21,525				52,031				42,861
Depreciation	1,663				1,934				3,283				3,874
Net interest expense(1)	21,297				17,351				38,552				36,859
Income tax benefit	(1,690		)		(18		)		(17,349		)		(42		)
Unit-based compensation	1,373				1,410				2,737				2,822
Management fees(2)	115				257				191				495
Restructuring(3)	1,200				674				2,737				788
Acquisition-related expense(4)	1,476				892				7,738				2,339
Adjusted EBITDA	$	50,226			$	31,636			$	87,858			$	60,725
Adjusted EBITDA Margin(5)	34.5		%		30.7		%		33.3		%		29.9		%

__________________________

(1)		Interest expense, net of interest income.
(2)		Refers to expense associated with collaboration with our principal stockholders and their internal consulting groups.
(3)		Refers to costs incurred related to migration of customers from legacy to core products, remaining lease obligations for abandoned facilities, severance expense related to offshoring activities, facility closures, and executive departures, and event cancellation fees related to COVID-19.
(4)		Refers to direct transaction and debt-related fees reflected in our acquisition costs line item of our income statement and incremental acquisition-related costs that are incurred to perform diligence, execute and integrate acquisitions, including retention awards and severance for acquired employees, and other transaction and integration expenses. These incremental costs are embedded in our research and development, selling, general and administrative and cost of revenue line items.
(5)		Represents Adjusted EBITDA as a percentage of revenue.

Reconciliation of Net Cash Provided by (used in) Operating Activities to Free Cash Flow and Unlevered Free Cash Flow
	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2021				2020				2021				2020
Net cash provided by (used in) operating activities	$	523			$	(5,876	)		$	(50,934	)		$	(45,903	)
Less:
Purchases of property and equipment	1,831				200				2,172				1,766
Capitalized product development costs	10,572				8,535				19,137				16,794
Free Cash Flow	$	(11,880	)		$	(14,611	)		$	(72,243	)		$	(64,463	)
Add:
Cash paid for interest on outstanding debt	17,457				23,485				31,645				42,315
Unlevered Free Cash Flow	$	5,577			$	8,874			$	(40,598	)		$	(22,148	)

Category: PWSC-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006071/en/

Investor Contact:

Alan Taylor

SVP, Corporate Development & Investor Relations

PowerSchool Holdings, Inc.

[email protected]

855-707-5100

Media Contact:

Jenna Mills

Manager, PR & Communications

PowerSchool Holdings, Inc.

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Education Software Technology Primary/Secondary

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Trailing Twelve Months and This Exceptional First Quarter Indicate Continuing Momentum Reports National Beverage Corp.

FORT LAUDERDALE, Fla.–(BUSINESS WIRE)–
National Beverage Corp. (NASDAQ: FIZZ) today announced results for its first quarter ended July 31, 2021.

First Quarter Ended July 31, 2021 vs. First Quarter Ended August 1, 2020:

• Net sales increased to $311.7 million;
• Gross profit was $124.8 million;
  • Gross margin was 40%;
• Operating income was $70.3 million or 22.6% of sales; and
• Earnings per share was $.58, up from $.55 for the prior year.

Balance Sheet Data at July 31, 2021

• Cash was $245.5 million;
• Working capital was $269.7 million with a current ratio of 2.8 to 1.

“Considering the headwinds that we faced, our financial results for the first quarter reflect extraordinary execution by Team National. Although labor, raw material and transportation availability issues impacted our ability to meet customer demand, we were able to increase sales over last year’s pantry-loading spike while maintaining the margins posted for our previous ‘best ever’ quarter,” stated a company spokesperson.

We believe the following are some of the competitive advantages that National Beverage enjoys:

• Consumer loyalty – Our Power+ brand volume grew 5.6% during a quarter in which selling prices were adjusted to recover increased input and transportation costs. We believe this reflects the preference consumers have for our great-tasting beverages, especially in light of the substantial price discounting employed by certain competitors to promote their sparkling waters.

• Healthy Hydration – The majority of our revenues are generated by sparkling water, juices and other ‘better-for-you’ beverages. The pandemic has made consumers even more health-conscious, and we believe this trend will continue for the foreseeable future.

• Innovation – The launch late last fiscal year of our unique new LaCroix flavors of Beach Plum, Black Razzberry and Guava São Paulo was our most successful to date. These followed a string of successful introductions that evidence our ability to develop and refine beverages that continuously resonate with consumers.

• Distinctiveness – The pandemic and its adaptations are provoking the minds of everyone who use their mental capacity to eschew risk. Our owner-entrepreneur governance model, size and agility, plus our self-manufacturing and hybrid-distribution system allow us to pivot expeditiously. Couple this uniqueness with our passionate consumer seeking to satisfy an acquired taste while pursuing unparalleled feelings.

“As the U.S. deals with uncertainty while Covid cases are increasing, we are more determined than ever in our mission to help make America healthy. Fiscal 2022 brings unique opportunities for National Beverage as we continue our vow to create the best and healthiest beverages ever produced,” the spokesperson concluded.

LaCroix . . . Beyond Taste!

In honor of all those who guard our freedoms throughout the world . . .

“Patriotism” – If Only We Could Bottle It!

National Beverage Corp.
Consolidated Results for the Periods Ended
July 31, 2021 and August 1, 2020
		(in thousands, except per share amounts)
		Three Months Ended
		July 31, 2021			August 1, 2020
Net Sales		$	311,712		$	293,367
Net Income		$	53,816		$	51,164
Earnings Per Common Share
Basic		$	.58		$	.55
Diluted		$	.58		$	.55
Average Common Shares Outstanding
Basic			93,306			93,248
Diluted			93,574			93,508

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties and other factors described in the Company’s Securities and Exchange Commission filings which may cause actual results or achievements to differ from the results or achievements expressed or implied by such statements. The Company disclaims an obligation to update or announce revisions to any forward-looking statements.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006027/en/

Office of the Chairman

Grace Keene

877-NBC-FIZZ

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Food/Beverage Retail

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monday.com to Present at Upcoming Investor Conferences

NEW YORK & TEL AVIV, Israel–(BUSINESS WIRE)–
monday.com (NASDAQ: MNDY), a work operating system (Work OS) where organizations of any size can create the tools and processes they need to manage every aspect of their work, today announced that members of its management team are scheduled to present at upcoming investor conferences.

Details for each event are as follows:

Piper Sandler Global Technology Conference

Tuesday, September 14, 2021 at 9:00 am ET

Jefferies Virtual Software Conference

Tuesday, September 14, 2021 at 9:00 am ET

The presentations will cover recent events in a fireside chat format with research analysts and will be webcast live on the investor relations section of monday.com’s website at https://ir.monday.com. Replays of the presentations will be available on the website following the completion of each event.

About monday.com:

monday.com Work OS is an open platform that democratizes the power of software so organizations can easily build software applications and work management tools to fit their every need. The platform intuitively connects people to processes and systems, empowering teams to excel in every aspect of their work. monday.com has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney. The platform is fully customizable to suit any business vertical and is currently used by over 127,000 customers across over 200 industries in more than 190 countries.

Visit us on our LinkedIn, Twitter, Instagram, YouTube, and Facebook.

For more about monday.com please visit our Press Room.

Source: monday.com Ltd.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006060/en/

Media Relations:

Or Elmaliah

[email protected]

Investor Relations:

Alex Wellins

The Blueshirt Group, for monday.com

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Internet Data Management Other Technology Technology Software

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Posted on September 9, 2021 4:18 pm

United Insurance Holdings Corp. Previews Q3-2021 Estimated Catastrophe Losses

United Insurance Holdings Corp. Previews Q3-2021 Estimated Catastrophe Losses

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–United Insurance Holdings Corp. (NASDAQ: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, today announced estimated current year catastrophe losses incurred the third quarter through August 31, 2021, of approximately $27 million before income taxes (approximately $21 million after tax), net of expected reinsurance recoveries. The Company’s estimated net catastrophe losses includes claims from Tropical Storm Elsa, Hurricane Ida, which includes our core catastrophe program retention of $15 million plus Interboro Insurance Company’s catastrophe retention of $3 million, as well as other new PCS catastrophe events that occurred during this period. As a result of these events contributing to our aggregate reinsurance protection, the Company’s exposure from potential future events this year in our core catastrophe program is expected to be limited to approximately $9 million.

“Our thoughts are with those who have suffered losses from these events, but particularly our policyholders in Louisiana. UPC Insurance is working around the clock to ensure we Keep Our Promise and adjust these claims as quickly and professionally as possible. UPC’s catastrophe reinsurance program was designed to protect our earnings and capital from another potentially active hurricane season, so I’m very pleased that our downside risk from subsequent events this year is limited,” said Brad Martz, President & Chief Financial Officer of UPC Insurance.

About UPC Insurance

Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services personal and commercial residential property and casualty insurance policies using a group of wholly owned insurance subsidiaries and one majority owned insurance subsidiary through a variety of distribution channels. The Company currently writes policies in Connecticut, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Texas. From its headquarters in St. Petersburg, UPC Insurance’s team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims.

Forward-Looking Statements

Statements made in this press release may be “forward-looking statements.” These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, we undertake no obligation to update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006006/en/

United Insurance Holdings Corp.

Jessica Strathman

Deputy CFO

(727) 895-7737 / [email protected]

OR

INVESTOR RELATIONS:

The Equity Group

Adam Prior

Senior Vice-President

(212) 836-9606 / [email protected]

KEYWORDS: Florida Louisiana United States North America

INDUSTRY KEYWORDS: Other Professional Services Professional Services Insurance Finance

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Butterfly Network Announces Key Appointments to the Board and Management

Dr. Erica Schwartz joins Butterfly’s Board of Directors

Troy Quander joins Butterfly as Senior Vice President, Regulatory and Quality

GUILFORD, Conn. & NEW YORK–(BUSINESS WIRE)–
Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”), an innovative digital health company that is working to democratize medical imaging and contribute to the aspiration of global health equity, today announced the expansion of its Board of Directors to nine directors through the appointment of Dr. Erica Schwartz and the addition of Troy Quander to the leadership team as Senior Vice President, Regulatory and Quality. These appointments continue to strengthen the technical foundation of the company to ensure that it can effectively execute its mission of democratizing medical imaging and advancing clinical practice around the globe.

“Dr. Schwartz will add depth and capability to the Board of Directors with her experience managing healthcare organizations, coupled with her background in medicine, biomedical engineering and law,” said Dr. Todd Fruchterman. Her addition to our Board will be particularly valuable, in areas of clinical applications, technology development, and strategy.”

Dr. Schwartz brings a breadth of healthcare management and public health experience to the Butterfly Board of Directors. She served as the Deputy Surgeon General for the U.S. Department of Health and Human Services from March 2019 to April 2021, where she led the country’s public health deployment in response to the COVID-19 pandemic. Prior to her role as the Deputy Surgeon General, Dr. Schwartz spent 24 years in the uniformed service, during which time she was promoted through the ranks to Rear Admiral of the U.S. Coast Guard, where she served as the Chief Medical Officer and Director of Health, Safety, and Work Life from 2015 to 2019. Previously, Dr. Schwartz served as the U.S. Coast Guard’s Chief of Health Services from 2013 to 2015 and Preventive Medicine Chief from 2005 to 2013. Dr. Schwartz has served on the Board of Directors of Aveanna Healthcare Holdings Inc. (Nasdaq: AVAH), a provider of a broad range of pediatric and adult healthcare services, since May 2021.

Dr. Schwartz is trained, and board certified in preventive medicine. She received a Bachelor of Science degree in Biomedical Engineering from Brown University, a Medical Doctorate from Brown University School of Medicine, a Master of Public Health degree with a dual concentration in health services administration and occupational and environmental medicine from the Uniformed Services University of the Health Sciences, and a Juris Doctorate from the University of Maryland School of Law.

Dr. Schwartz will serve on the newly formed Board Technology Committee, along with Dr. Rothberg and Dr. Edelman, providing oversight of the role of technology in executing Butterfly’s strategy and supporting business and operational requirements.

“Butterfly is a leader in medical imaging and well positioned to drive changes in clinical practice with differentiated technology and solutions,” Dr. Schwartz said. “I am honored to join the Butterfly Board of Directors to be a part of its mission to transform care all around the world.”

In addition, Butterfly announces the appointment of Troy Quander as Senior Vice President, Regulatory and Quality for Butterfly effective September 13, 2021. In this newly created executive position, Troy will lead the combined regulatory, quality, and post market surveillance teams supporting the future strategy to meet the demands of the company’s scaling business. Troy will report to Dr. Todd Fruchterman, President and CEO of Butterfly Network, Inc. and will be a member of the Butterfly’s Executive Leadership Team.

“Regulatory and quality are critical capabilities pivotal to Butterfly’s success in advancing care delivery through the use of ultrasound information,” said Dr. Todd Fruchterman. “We are very excited to bring on a seasoned leader like Troy with the breadth and depth of experience that will help us bring additional innovative solutions to market in a timely fashion.”

Troy is a regulatory professional with over 25 years of Food and Drug Administration (FDA) and industry experience with a focus on regulatory affairs, regulatory compliance, and quality. He joins Butterfly from Olympus, where he was the Vice President of Regulatory Affairs, and responsible for global regulatory strategy development and execution for the medical device business segment. Prior to Olympus, Troy held key leadership roles for regulatory affairs and quality for Roche Diagnostics. In addition, he held previous leadership roles of increasing responsibility at Becton Dickinson, OraSure Technologies, Johnson & Johnson, and bioMerieux. Troy spent part of his career with the FDA’s Center for Biologics Evaluation and Research, as a product reviewer and product specialist for Team Biologics, where he performed submission reviews of in vitro diagnostics and conducted facility inspections. He holds a bachelor’s degree in Biology from Lincoln University.

“I am thrilled to join the Butterfly team. It is an inspiring company with an innovative, high-growth vision. I look forward to working with Todd and the Butterfly team to shape our future in a manner that is compliant and adheres to the evolving regulations of the medical device industry,” said Mr. Quander.

At this exciting time in the company’s journey, Butterfly welcomes Dr. Schwartz and Mr. Quander to a passionate team committed to its mission, vision, and technology.

About Butterfly Network, Inc.

Founded by Dr. Jonathan Rothberg in 2011 and recently listed on the NYSE through a merger with Longview Acquisition Corp, Butterfly created the world’s first handheld, single probe whole-body ultrasound system, Butterfly iQ. Butterfly’s mission is to enable universal access to superior medical imaging, making high-quality ultrasound affordable, easy-to-use, globally accessible, and intelligently connected, including for the 4.7 billion people around the world lacking access to ultrasound. Through its proprietary Ultrasound-on-Chip™ technology, Butterfly is paving the way for earlier detection and remote management of health conditions around the world. The Butterfly iQ can be purchased online today by healthcare practitioners in the United States, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance and development of products and services. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on the Company’s business; the ability to recognize the anticipated benefits of the business combination; the Company’s ability to grow and manage growth profitably; the success, cost and timing of the Company’s product and service development activities; the potential attributes and benefits of the Company’s products and services; the Company’s ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company’s ability to identify, in-license or acquire additional technology; the Company’s ability to maintain its existing license, manufacture, supply and distribution agreements; the Company’s ability to compete with other companies currently marketing or engaged in the development of products and services that the Company is currently marketing or developing; changes in applicable laws or regulations; the size and growth potential of the markets for the Company’s products and services, and its ability to serve those markets, either alone or in partnership with others; the pricing of the Company’s products and services and reimbursement for medical procedures conducted using its products and services; the Company’s estimates regarding expenses, revenue, capital requirements and needs for additional financing; the Company’s financial performance; the Company’s ability to raise financing in the future; and other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions you not to place undue reliance upon any forward-looking statements, which speak only as of the date of this press release. The Company does not undertake or accept any obligation or undertake to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909005990/en/

Investors

Agnes Lee

650-677-9138

[email protected]

Media

[email protected]

KEYWORDS: New York Connecticut United States North America

INDUSTRY KEYWORDS: Hospitals Health Medical Devices

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Annaly Capital Management, Inc. Announces 3^rd Quarter 2021 Common Stock Dividend of $0.22 per Share

NEW YORK–(BUSINESS WIRE)–
The Board of Directors of Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”) declared the third quarter 2021 common stock cash dividend of $0.22 per common share. This dividend is payable October 29, 2021 to common shareholders of record on September 30, 2021. The ex-dividend date is September 29, 2021.

About Annaly

Annaly is a leading diversified capital manager with investment strategies across mortgage finance and corporate middle market lending. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at www.annaly.com.

Forward-Looking Statements

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, risks and uncertainties related to the COVID-19 pandemic, including as related to adverse economic conditions on real estate-related assets and financing conditions; changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of our assets; changes in business conditions and the general economy; operational risks or risk management failures by us or critical third parties, including cybersecurity incidents; our ability to grow our residential credit business; our ability to grow our middle market lending business; credit risks related to our investments in credit risk transfer securities, residential mortgage-backed securities and related residential mortgage credit assets and corporate debt; risks related to investments in mortgage servicing rights; our ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting our business; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act; and the timing and ultimate completion of the sale of our commercial real estate business. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909005943/en/

Annaly Capital Management, Inc.

Investor Relations

1-888-8Annaly

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: REIT Finance Banking Professional Services Construction & Property

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