Market Newsdesk

September 9, 2021 4:09 pm

MamaMancini’s Reports Second Quarter 2022 Financial Results

Shipments into New Tier-1 Placements Drives
Strong
17
%
Year-over-Year
Sales Growth

Elevated Commodity/Shipping Costs
Compress Margins
Through Year-End; One-Time Uplisting Expenses Reflected in Second Quarter Expenses

EAST RUTHERFORD, NJ, Sept. 09, 2021 (GLOBE NEWSWIRE) —
MamaMancini’s Holdings, Inc. (NASDAQ: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, has reported its financial results for the fiscal second quarter ended July 31, 2021.

Financial
Summary
:

	Three Months Ended July 31,				Year-over-Year
	2021		2020		% Change
Revenues	$	12.1 million	$	10.3 million		17.7	%
Gross Profit	$	3.4 million	$	3.1 million		9.5	%
Operating Expenses	$	2.8 million	$	2.3 million		22.6	%
Pre-Tax Net Income	$	0.6 million	$	0.7 million		(22.0	%)
Net Income	$	0.4 million	$	0.7 million		41.6	%
Earnings per Share	$	0.01	$	0.02		(50	%)
Cash	$	4.3 million	$	1.7 million		150	%

Second
Quarter 2022 & Subsequent Operational
Highlights
:

Completed uplisting to the Nasdaq Capital Market on July 15, 2021, under the symbol “MMMB” to help elevate the Company’s public profile, expand its potential shareholder base, improve liquidity and enhance shareholder value.
Advanced the Company’s active acquisition program targeting complementary food product firms with sales in the $12 to $20 million per year range, generating positive EBITDA with a product that is symbiotic to MamaMancini’s existing retail, club store and food service distribution network.
Secured new product placements for second and third quarter at tier-1 retailers including pasta bowls at Publix and Albertsons Safeway; stuffed peppers at BJ’s; MamaMancini’s branded retail sleeves including plant-based products as part of Amazon Fresh; and several additional big box retailer placements pending final authorization.
Developed MamaMancini’s Branded Meatball in a Cup for Convenience Stores, with initial trial placements in the second half of 2021.
Secured credit line from M&T Bank for potential acquisitions, with a total available credit line of up to $12.5 million, in addition to a $4.3 million cash balance.
Received the coveted Food Product of the Month at QVC for the month of September.
Registered to attend upcoming investor conferences nationwide including the Taglich Brothers Investment Conference on September 13^th and the LD Micro Main Event on October 12^th.

Management Commentary

“The second quarter of fiscal 2022 was highlighted by our rapid pace of growth, realizing a robust 17% revenue increase as compared to the same year-ago quarter,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “These sales figures were driven by our previously announced product placements, many of which began to ship in the second quarter. Profits were temporarily offset by elevated commodity and shipping costs as well as one-time extraordinary expenses related to our Nasdaq listing fee and additional shareholder meeting requirements. Our go-forward sales forecasts continue to increase given our planned price increases and I would expect to see margin improvement by year-end.

“On July 15, 2021 we completed our uplisting to the Nasdaq Capital Market – a milestone for all MamaMancini’s stakeholders that has been several years in the making. We expect that this will help elevate our public profile, expand our potential shareholder base and improve liquidity. I could not be prouder of our incredibly hard-working team, many of whom were featured when we rang the Nasdaq closing bell just a few short weeks ago.

“With our active acquisition efforts well underway, I firmly believe we are still in the early innings of MamaMancini’s growth and increasing prominence as a public company. We will continue to scale operations and have only begun our capital markets journey. We are poised for success on all fronts and look forward to seeing what the future holds for our brand,” concluded Wolf.

Second
Quarter
Fiscal
202
2
Financial
Results

Revenue for the second quarter of fiscal 2022 totaled $12.1 million, as compared to $10.3 million in the same year-ago quarter. The increase in revenue for the second quarter was a result of initial shipments as part of the Company’s previously announced new placement wins with tier-1 retailers nationwide.

Gross profit totaled $3.4 million, or 27.9% of total revenues, in the second quarter of fiscal 2022, as compared to $3.1 million, or 30.0% of total revenues, in the same year-ago quarter. The lower gross profit margin in the second quarter was due to higher inbound shipping and commodity costs which were passed on to existing customers on a time lag basis for the first two months of the quarter, and fixed pricing for a short introductory period on new placements. The Company expects profit margins will improve by year-end as commodity prices normalize and higher production volumes will result in higher plant operating efficiencies, as well as the expiration of introductory pricing with several customers.

Operating expenses totaled $2.8 million in the second quarter of fiscal 2022, as compared to $2.3 million in the same year-ago quarter. As a percentage of sales, operating expenses totaled 23.1% in the second quarter of fiscal 2022, as compared to 22.2% in the same year-ago quarter. Operating expenses in the second quarter were affected by significant one-time expenses such as the Company’s Nasdaq uplisting and additional shareholder meeting requirements, increased shipping costs and higher director fees.

Pre-Tax Income for the second quarter of fiscal 2022 totaled $0.6 million, as compared to $0.7 million in the same year-ago quarter.

Net income for the second quarter of fiscal 2022 totaled $0.4 million, or $0.01 per diluted share, as compared to a net income of $0.7 million, or $0.02 per diluted share, in the same year-ago quarter. The decrease in net income was significantly attributable to an income tax provision of $145,439 recorded during the three months ended July 31, 2021, compared to $0 during the three months ended July 31, 2020.

Cash and cash equivalents as of July 31, 2021 were $4.3 million, as compared to $1.7 million in the same year-ago quarter and $3.2 million as of January 31, 2021. The increased cash balance benefitted from $0.2 million in cash flow from operations in the second quarter of fiscal 2022 and a total of $1.6 million fiscal year-to-date.

Conference Call

Management will host an investor conference call at 4:30 p.m. Eastern time on Thursday, September 9, 2021 to discuss the Company’s second quarter 2022 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q
2
2022 Earnings Conference Call

Date: Thursday, September 9, 2021
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-844-889-4326
International Dial-in: 1-412-317-9264
Conference ID: 10159841
Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=rxhejL49

Please dial in at least five minutes before the start of the call to ensure timely participation.

A playback of the call will be available through September 16, 2021. To listen, call 1-877-344-7529 within the United States or 1-412-317-0088 when calling internationally. Please use the replay pin number 10159841.

About MamaMancini’s Holdings, Inc.

MamaMancini’s Holdings, Inc. (NASDAQ: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Sam’s Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company also regularly maintains a direct-to-consumer presence through presentations on QVC. For more information, please visit www.mamamancinis.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,” “future,” “plan” or “planned,” “will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or “projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company’s 10-K for the fiscal year ended January 31, 2021 and other filings made by the Company with the Securities and Exchange Commission.

Investor Relations Contact:

Lucas A. Zimmerman
Senior Vice President
MZ Group – MZ North America
(949) 259-4987
[email protected]
www.mzgroup.us

MamaMancini’s Holdings, Inc.

Condensed Consolidated Balance Sheets

	July 31, 2021			January 31, 2021
		(unaudited)
Assets

Current Assets:
Cash	$	4,252,881		$	3,190,560
Accounts receivable, net		4,702,713			3,973,793
Other receivable		107,896			–
Inventories		1,407,614			1,195,211
Prepaid expenses		447,894			519,887
Total current assets		10,918,998			8,879,451

Property and equipment, net		3,063,165			2,963,602

Intangibles		87,639			87,639

Operating lease right of use assets, net		1,585,538			1,352,483

Deferred tax asset, net		353,794			744,973

Deposits		23,156			20,177
Total Assets	$	16,032,290		$	14,048,325

Liabilities and Stockholders’ Equity

Liabilities:
Current Liabilities:
Accounts payable and accrued expenses	$	4,456,933		$	3,707,111
Operating lease liability		181,573			147,684
Finance leases payable		214,946			190,554
Total current liabilities		4,853,452			4,045,349

Operating lease liability – net		1,429,500			1,218,487
Finance leases payable – net		356,277			474,743
Total long-term liabilities		1,785,777			1,693,230

Total Liabilities		6,639,229			5,738,579

Commitments and contingencies (See Note 10)

Stockholders’ Equity:
Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued as of July 31, 2021 and January 31, 2021, 0 and 0 shares outstanding as of July 31, 2021 and January 31, 2021		–			–
Preferred stock, $0.00001 par value; 19,880,000 shares authorized; no shares issued and outstanding		–			–
Common stock, $0.00001 par value; 250,000,000 shares authorized; 35,725,041 and 35,603,731 shares issued and outstanding as of July 31, 2021 and January 31, 2021		359			357
Additional paid in capital		20,555,657			20,535,793
Accumulated deficit		(11,013,455	)		(12,076,904	)
Less: Treasury stock, 230,000 shares at cost, respectively		(149,500	)		(149,500	)
Total Stockholders’ Equity		9,393,061			8,309,746
Total Liabilities and Stockholders’ Equity	$	16,032,290		$	14,048,325

MamaMancini’s Holdings, Inc.

Condensed Consolidated Statements of Income

(unaudited)

	For the Three Months Ended July 31,						For the Six Months Ended July 31,
	2021			2020			2021			2020

Sales-net of slotting fees and discounts	$	12,064,584		$	10,247,564		$	22,377,984		$	21,082,505

Costs of sales		8,695,300			7,170,403			15,664,347			14,543,722

Gross profit		3,369,284			3,077,161			6,713,637			6,538,783

Operating expenses:
Research and development		30,541			25,857			53,977			55,338
General and administrative		2,753,830			2,244,539			5,222,548			4,700,726
Total operating expenses		2,784,371			2,270,396			5,276,525			4,756,064

Income from operations		584,913			806,765			1,437,112			1,782,719

Other income (expenses)
Interest		(7,549	)		(61,648	)		(17,979	)		(126,050	)
Amortization of debt discount		–			(5,350	)		–			(10,700	)
Other income		–			–			37,704			–
Total other income (expenses)		(7,549	)		(66,998	)		19,725			(136,750	)

Net income before income tax provision		577,364			739,767			1,456,837			1,645,969

Income tax provision		145,439			–			393,388			–

Net income	$	431,925		$	739,767		$	1,063,449		$	1,645,969

Net income per common share
– basic	$	0.01		$	0.02		$	0.03		$	0.05
– diluted	$	0.01		$	0.02		$	0.03		$	0.05

Weighted average common shares outstanding
– basic		35,697,568			32,262,375			35,660,440			32,128,298
– diluted		36,223,674			33,543,565			36,181,353			33,409,488

MamaMancini’s Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	For the Six Months Ended
	July 31, 2021			July 31, 2020

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,063,449		$	1,645,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		381,732			319,078
Amortization of debt discount		–			10,700
Share-based compensation		786			49,975
Amortization of right of use assets		91,660			68,107
Change in deferred tax asset		391,179			–
Changes in operating assets and liabilities:
Accounts receivable		(728,920	)		934,360
Other receivable		(107,896	)
Inventories		(212,403	)		(512,344	)
Prepaid expenses		71,993			(4,366	)
Security deposits		(2,979	)		–
Accounts payable and accrued expenses		749,822			(982,317	)
Operating lease liability		(79,813	)		(63,264	)
Net Cash Provided by Operating Activities		1,618,610			1,465,898

CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for fixed assets		(481,295	)		(189,287	)
Net Cash Used in Investing Activities		(481,295	)		(189,287	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of term loan		–			(250,002	)
Repayments of related party notes payable		–			(641,844	)
Proceeds from promissory note		–			330,505
Repayment of promissory note		–			(330,505	)
Borrowings of line of credit, net		–			(500,000	)
Repayment of finance lease obligations		(94,074	)		(64,165	)
Proceeds from exercise of options		19,080			7,200
Proceeds from exercise of warrants		–			1,477,103
Net Cash Provided by (Used) in Financing Activities		(74,994	)		28,292

Net Increase in Cash		1,062,321			1,304,903

Cash – Beginning of Period		3,190,560			393,683

Cash – End of Period	$	4,252,881		$	1,698,586

SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
Income taxes	$	–		$	–
Interest	$	17,979		$	128,913

SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Finance lease asset additions	$	–		$	401,387
Operating lease asset additions	$	347,585		$	–

September 9, 2021 4:09 pm

Dave & Buster’s Reports Record Second Quarter 2021 Financial Results

DALLAS, Sept. 09, 2021 (GLOBE NEWSWIRE) — Dave & Buster’s Entertainment, Inc., (NASDAQ:PLAY), (“Dave & Buster’s” or “the Company”), an owner and operator of entertainment and dining venues, today announced record quarterly revenues, net income, and EBITDA for its second quarter of fiscal year 2021, which ended on August 1, 2021.

The Company began the second quarter with 138 open stores, or approximately 98 percent of its total store base. As of August 1, all of the Company’s 142 stores were open, including 1 new store opened during the quarter.

Key Second Quarter 2021 Highlights

Revenues totaled a record $377.6 million compared with $50.8 million in the second quarter of 2020 and $344.6 million in the second quarter of 2019
Overall comparable store sales increased 3.6% compared with the same period in 2019
Net income totaled a record $52.8 million, or $1.07 per diluted share, compared with net loss of $58.6 million, or $1.24 per share in the second quarter of 2020 and net income of $32.4 million, or $0.90 per diluted share in the second quarter of 2019
EBITDA totaled a record $114.0 million, or 30.2% of revenues, compared with EBITDA loss of $46.0 million in the second quarter of 2020 and EBITDA of $79.0 million, or 22.9% of revenues in the second quarter of 2019
Adjusted EBITDA totaled a record $119.2 million, or 31.6% of revenues, compared with Adjusted EBITDA loss of $38.5 million in the second quarter of 2020 and Adjusted EBITDA of $86.0 million, or 25.0% of revenues in the second quarter of 2019
Launched new menu, completed rollout of mobile web platform and tablets, and executed new marketing strategy
Ended the quarter with $108 million in cash and approximately $340 million of liquidity available under the Company’s $500 million revolving credit facility, net of a $150 million minimum liquidity covenant and $10 million in letters of credit
Company has elected to redeem $55 million of 7.625% senior secured notes at 103% of principal, saving approximately $4.2 million in annualized interest

Brian Jenkins, Dave & Buster’s Chief Executive Officer, said, “Dave & Buster’s second quarter was clear evidence that the brand is back, posting record revenues and EBITDA with all 142 stores open as of the end of the quarter. The entire team has demonstrated great resilience navigating the pandemic and positioning the Company to achieve new levels of performance. Through continued execution of our strategic initiatives, including our new menu, optimized marketing, and technology investments, we are excited to move forward with a strong foundation to drive sustained profitable growth.”

Second Quarter 2021 Results

Total revenues of $377.6 million increased 642.9% from $50.8 in the second quarter of 2020 and increased 9.6% from $344.6 million in the second quarter of 2019. Comparable store sales increased 3.6% compared with the second quarter of 2019 (the Company has chosen to continue reporting comparable store sales versus 2019 in order to provide a more meaningful comparison). Non-comparable store revenue totaled $67.3 million compared with $10.4 million in the second quarter of 2020.

Operating income totaled $79.2 million, or 21.0% of revenues, compared with operating loss of $81.1 million, or (159.6)% of revenues in the second quarter of 2020 and operating income $46.2 million, or 13.4% of revenues in the second quarter of 2019.

Net income totaled $52.8 million, or $1.07 per diluted share, compared with net loss of $58.6 million, or $1.24 per share in the second quarter of 2020 and net income of $32.4 million, or $0.90 per diluted share in the second quarter of 2019.

EBITDA totaled $114.0 million, or 30.2% of revenues, compared with EBITDA loss of $46.0 million, or (90.4)% of revenues in the second quarter of 2020 and EBITDA of $79.0 million, or 22.9% of revenues in the second quarter of 2019.

Adjusted EBITDA totaled $119.2 million, or 31.6% of revenues, compared with adjusted EBITDA loss of $38.5 million, or (75.7)% of revenues in the second quarter of 2020 and adjusted EBITDA of $86.0 million, or 25.0% of revenues in the second quarter of 2019.

Store operating income before depreciation and amortization totaled $134.2 million, or 35.5% of revenues, compared with store operating loss before depreciation and amortization of $34.3 million, or (67.5)% of revenues in the second quarter of 2020 and $99.7 million, or 28.9% of revenues in the second quarter of 2019.

Balance Sheet, Liquidity and Cash Flow

The Company generated approximately $121 million in operating cash flow during the second quarter, ending the quarter with $108 million in cash and approximately $340 million of availability under its $500 million revolving credit facility, net of a $150 million minimum liquidity covenant and $10 million in letters of credit.

Total long-term debt stood at $550 million consisting of 7.625% senior secured notes maturing in 2025. As part of its ongoing capital allocation strategy, the Company has elected to redeem $55 million, or 10%, of its senior secured notes utilizing a redemption option in the Company’s October 2020 indenture agreement. Per the agreement, up to 10% of the notes may be redeemed at 103% of principal in the first twelve-month period after issuance. The Company expects to complete this redemption by September 20, 2021, resulting in annualized interest savings of approximately $4.2 million. Upon separate election, the Company may redeem an additional 10% at 103% of principal in the second twelve-month period after issuance, which commences October 27, 2021.

Third Quarter Business Update and Outlook

The Company’s business recovery has continued through the first five weeks of the third quarter, including Labor Day Monday, during which comparable store sales increased 1.3% compared with 2019.

Based on current trends, and barring any significant downturn due to the pandemic, the Company currently expects the following:

Third quarter comparable store sales to be approximately in line with the quarter-to-date trends compared to third quarter 2019.
Third quarter EBITDA to be significantly higher than third quarter 2019 EBITDA of $39.8 million, but with some moderation compared with the increase in the second quarter.
A total of four new store openings during fiscal year 2021 and the relocation of one existing location.
FY2021 capital additions (net of tenant allowances) of approximately $95 to $100 million, with approximately 49% dedicated to new stores and other operating initiatives, 14% for games, and 37% for maintenance needs.

Quarterly Report on Form 10-Q Available

The Company’s Quarterly Report on Form 10-Q, which will be available at www.sec.gov and at the Company’s investor relations website, contains a thorough review of its financial results for the 13 and 26 weeks ended August 1, 2021.

Investor Conference Call and Webcast

Management will hold a conference call to report these results today at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). The conference call can be accessed over the phone by dialing (720) 543-0206 or toll-free (800) 458-4121. A replay will be available after the call for one year beginning at 7:00 p.m. Central Time (8:00 p.m. Eastern Time) and can be accessed by dialing (412) 317-6671 or toll-free (844) 512-2921; the passcode is 8867697.

Additionally, a live and archived webcast of the conference call will be available under the Investor Relations section at www.daveandbusters.com.

About Dave & Buster’s Entertainment, Inc.

Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s Entertainment, Inc., is the owner and operator of 143 venues in North America that combine entertainment and dining and offer customers the opportunity to “Eat Drink Play and Watch,” all in one location. Dave & Buster’s offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. Dave & Buster’s currently has stores in 40 states, Puerto Rico, and Canada.

Forward-Looking Statements

The Company cautions that this release contains forward-looking statements, including, without limitation, statements relating to the impact on our business and operations of the global spread of the novel coronavirus outbreak. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by the uncertain and unprecedented impact of the coronavirus on our business and operations and the related impact on our liquidity needs; our ability to continue as a going concern; our ability to obtain waivers, and thereafter continue to satisfy covenant requirements, under our revolving credit facility; our ability to access other funding sources; the duration of government-mandated and voluntary shutdowns and restrictions; the speed with which our stores safely can be reopened and the level of customer demand following reopening; the economic impact of the coronavirus and related disruptions on the communities we serve; our overall level of indebtedness; general business and economic conditions, including as a result of the coronavirus; the impact of competition; the seasonality of the Company’s business; adverse weather conditions; future commodity prices; guest and employee complaints and litigation; fuel and utility costs; labor costs and availability; changes in consumer and corporate spending, including as a result of the coronavirus; changes in demographic trends; changes in governmental regulations; unfavorable publicity, our ability to open new stores, and acts of God. Accordingly, actual results may differ materially from the forward-looking statements, and the Company therefore cautions you against relying on such forward-looking statements. Dave & Buster’s intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more appropriate information becomes available, except as required by law.

*Non-GAAP Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company uses the following non-GAAP financial measures: EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Store operating income before depreciation and amortization, and store operating income before depreciation and amortization margin (collectively the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies.

— Financial Tables Follow –


DAVE & BUSTER’S ENTERTAINMENT, INC.
Condensed Consolidated Balance Sheets
(in thousands)


ASSETS	August 1, 2021		January 31, 2021
	(unaudited)		(audited)
Current assets:
Cash and cash equivalents	$	107,801	$	11,891
Other current assets		88,154		106,980
Total current assets		195,955		118,871
Property and equipment, net		785,227		815,027
Operating lease right of use assets		1,018,558		1,037,569
Intangible and other assets, net		384,765		381,357
Total assets	$	2,384,505	$	2,352,824

LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	308,933	$	271,636
Operating lease liabilities		1,248,038		1,267,791
Other long-term liabilities		59,843		63,777
Long-term debt, net		537,816		596,388
Stockholders’ equity		229,875		153,232
Total liabilities and stockholders’ equity	$	2,384,505	$	2,352,824


DAVE & BUSTER’S ENTERTAINMENT, INC.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)

	13 Weeks Ended				13 Weeks Ended					13 Weeks Ended
	August 1, 2021				August 2, 2020					August 4, 2019

Food and beverage revenues	$	123,006	32.6	%	$	17,002		33.4	%	$	137,921		40.0	%
Amusement and other revenues		254,632	67.4	%		33,831		66.6	%		206,678		60.0	%
Total revenues		377,638	100.0	%		50,833		100.0	%		344,599		100.0	%

Cost of food and beverage (as a percentage of food and beverage revenues)		33,127	26.9	%		4,659		27.4	%		36,934		26.8	%
Cost of amusement and other (as a percentage of amusement and other revenues)		24,584	9.7	%		4,025		11.9	%		22,689		11.0	%
Total cost of products		57,711	15.3	%		8,684		17.1	%		59,623		17.3	%
Operating payroll and benefits		80,623	21.3	%		13,756		27.1	%		80,927		23.5	%
Other store operating expenses		105,116	27.9	%		62,682		123.2	%		104,376		30.3	%
General and administrative expenses		18,470	4.9	%		9,278		18.3	%		15,991		4.6	%
Depreciation and amortization expense		34,875	9.2	%		35,160		69.2	%		32,745		9.5	%
Pre-opening costs		1,676	0.4	%		2,388		4.7	%		4,723		1.4	%
Total operating costs		298,471	79.0	%		131,948		259.6	%		298,385		86.6	%

Operating income (loss)		79,167	21.0	%		(81,115	)	-159.6	%		46,214		13.4	%

Interest expense, net		13,728	3.7	%		8,163		16.0	%		4,605		1.3	%

Income (loss) before provision (benefit) for income taxes		65,439	17.3	%		(89,278	)	-175.6	%		41,609		12.1	%
Provision (benefit) for income taxes		12,669	3.3	%		(30,676	)	-60.3	%		9,253		2.7	%
Net income (loss)	$	52,770	14.0	%	$	(58,602	)	-115.3	%	$	32,356		9.4	%

Net income (loss) per share:
Basic	$	1.10			$	(1.24	)			$	0.91
Diluted	$	1.07			$	(1.24	)			$	0.90
Weighted average shares used in per share calculations:
Basic shares		48,178,611				47,111,763					35,407,965
Diluted shares		49,229,817				47,111,763					36,015,710


Other information:
Company-owned stores at end of period		142				137					130
Store operating weeks in the period		1,817				628					1,674
Total revenue per store operating weeks in the period	$	208			$	81				$	206

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown:

	13 Weeks Ended				13 Weeks Ended					13 Weeks Ended
	August 1, 2021				August 2, 2020					August 4, 2019

Net income (loss)	$	52,770	14.0	%	$	(58,602	)	-115.3	%	$	32,356		9.4	%
Add back: Interest expense, net		13,728				8,163					4,605
Provision (benefit) for income taxes		12,669				(30,676	)				9,253
Depreciation and amortization expense		34,875				35,160					32,745
EBITDA		114,042	30.2	%		(45,955	)	-90.4	%		78,959		22.9	%
Add back: Loss on asset disposal		112				264					406
Impairment of long-lived assets and lease termination costs		–				2,178					–
Share-based compensation		3,187				2,734					1,907
Pre-opening costs		1,676				2,388					4,723
Other costs		135				(88	)				(13	)
Adjusted EBITDA	$	119,152	31.6	%	$	(38,479	)	-75.7	%	$	85,982		25.0	%



The following table sets forth a reconciliation of operating income to store operating income before depreciation and amortization for the periods shown:

	13 Weeks Ended				13 Weeks Ended					13 Weeks Ended
	August 1, 2021				August 2, 2020					August 4, 2019

Operating income (loss)	$	79,167	21.0	%	$	(81,115	)	-159.6	%	$	46,214		13.4	%
Add back: General and administrative expenses		18,470				9,278					15,991
Depreciation and amortization expense		34,875				35,160					32,745
Pre-opening costs		1,676				2,388					4,723
Store operating income (loss) before depreciation and amortization	$	134,188	35.5	%	$	(34,289	)	-67.5	%	$	99,673		28.9	%


DAVE & BUSTER’S ENTERTAINMENT, INC.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)

	26 Weeks Ended					26 Weeks Ended					26 Weeks Ended
	August 1, 2021					August 2, 2020					August 4, 2019

Food and beverage revenues	$	208,764		32.5	%	$	80,922		38.4	%	$	286,142	40.4	%
Amusement and other revenues		434,214		67.5	%		129,717		61.6	%		422,039	59.6	%
Total revenues		642,978		100.0	%		210,639		100.0	%		708,181	100.0	%

Cost of food and beverage (as a percentage of food and beverage revenues)		56,284		27.0	%		22,003		27.2	%		75,688	26.5	%
Cost of amusement and other (as a percentage of amusement and other revenues)		41,198		9.5	%		14,753		11.4	%		45,660	10.8	%
Total cost of products		97,482		15.2	%		36,756		17.4	%		121,348	17.1	%
Operating payroll and benefits		130,902		20.4	%		57,493		27.3	%		163,800	23.1	%
Other store operating expenses		189,561		29.4	%		158,354		75.3	%		210,621	29.8	%
General and administrative expenses		35,561		5.5	%		23,841		11.3	%		32,837	4.6	%
Depreciation and amortization expense		69,974		10.9	%		70,512		33.5	%		63,886	9.0	%
Pre-opening costs		3,335		0.5	%		6,211		2.9	%		11,725	1.7	%
Total operating costs		526,815		81.9	%		353,167		167.7	%		604,217	85.3	%

Operating income (loss)		116,163		18.1	%		(142,528	)	-67.7	%		103,964	14.7	%

Interest expense, net		28,548		4.5	%		14,278		6.7	%		8,661	1.2	%

Income (loss) before provision (benefit) for income taxes		87,615		13.6	%		(156,806	)	-74.4	%		95,303	13.5	%
Provision (benefit) for income taxes		15,210		2.3	%		(54,660	)	-25.9	%		20,504	2.9	%
Net income (loss)	$	72,405		11.3	%	$	(102,146	)	-48.5	%	$	74,799	10.6	%

Net income (loss) per share:
Basic	$	1.51				$	(2.59	)			$	2.07
Diluted	$	1.47				$	(2.59	)			$	2.03
Weighted average shares used in per share calculations:
Basic shares		47,937,158					39,470,874					36,117,815
Diluted shares		49,272,693					39,470,874					36,803,001


Other information:
Company-owned stores at end of period		142					137					130
Store operating weeks in the period		3,450					1,461					3,290
Total revenue per store operating weeks in the period	$	186				$	144				$	215

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown:

	26 Weeks Ended					26 Weeks Ended					26 Weeks Ended
	August 1, 2021					August 2, 2020					August 4, 2019

Net income (loss)	$	72,405		11.3	%	$	(102,146	)	-48.5	%	$	74,799	10.6	%
Add back: Interest expense, net		28,548					14,278					8,661
Provision (benefit) for income taxes		15,210					(54,660	)				20,504
Depreciation and amortization expense		69,974					70,512					63,886
EBITDA		186,137		28.9	%		(72,016	)	-34.2	%		167,850	23.7	%
Add back: Loss on asset disposal		257					417					826
Impairment of long-lived assets and lease termination costs		–					13,727					–
Share-based compensation		6,158					2,345					3,732
Pre-opening costs		3,335					6,211					11,725
Other costs		(30	)				59					33
Adjusted EBITDA	$	195,857		30.5	%	$	(49,257	)	-23.4	%	$	184,166	26.0	%



The following table sets forth a reconciliation of operating income to store operating income before depreciation and amortization for the periods shown:

	26 Weeks Ended					26 Weeks Ended					26 Weeks Ended
	August 1, 2021					August 2, 2020					August 4, 2019

Operating income (loss)	$	116,163		18.1	%	$	(142,528	)	-67.7	%	$	103,964	14.7	%
Add back: General and administrative expenses		35,561					23,841					32,837
Depreciation and amortization expense		69,974					70,512					63,886
Pre-opening costs		3,335					6,211					11,725
Store operating income (loss) before depreciation and amortization	$	225,033		35.0	%	$	(41,964	)	-19.9	%	$	212,412	30.0	%

For Investor Relations Inquiries:

Scott Bowman, CFO
Dave & Buster’s Entertainment, Inc.
972.813.1151
[email protected]

September 9, 2021 4:09 pm

TScan Therapeutics Appoints Zoran Zdraveski, J.D., Ph.D. as Chief Legal Officer

WALTHAM, Mass., Sept. 09, 2021 (GLOBE NEWSWIRE) — TScan Therapeutics, Inc. (Nasdaq: TCRX), a biopharmaceutical company focused on the development of T-cell receptor (TCR) engineered T cell therapies (TCR-T) for the treatment of patients with cancer, today announced that Zoran Zdraveski, J.D., Ph.D. has been appointed as Chief Legal Officer.

“We are pleased to welcome Zoran as the Chief Legal Officer of TScan. His in-depth experience in corporate law, capital raising, business development and operations will be critical to our development as we advance our liquid and solid tumor candidates to the clinic,” said David Southwell, President and Chief Executive Officer of TScan Therapeutics. “Zoran’s extensive scientific training and prior experience building intellectual property portfolios for biotech companies is of crucial importance as TScan identifies and develops TCR therapies for novel targets and creates IP around these targets.”

“I am excited to join TScan in support of the Company’s mission to create life-changing T cell therapies for patients by unleashing the untapped potential of the human immune system,” said Dr. Zdraveski. “I look forward to working alongside TScan’s world-class management team to deliver on the full potential of such a tremendous platform technology.”

Dr. Zdraveski has more than 20 years of legal, IP and business operations experience in the biopharmaceutical industry. Most recently, he served as the Chief Legal and Technology Operations Officer at Magenta Therapeutics Inc. from April 2017 to April 2021, where he established the legal team and managed all aspects of legal, intellectual property and compliance both before and after the company’s 2017 initial public offering. Prior to Magenta, he was the Vice President and Associate General Counsel at Epizyme Inc. from July 2012 to April 2017. Prior to joining Epizyme, he held patent counsel positions at Ironwood from April 2011 to July 2012 and Genzyme Therapeutics from September 2009 to April 2011. Dr. Zdraveski holds an M.S. in Chemistry and a B.F.A. and B.A. in Art and Chemistry from Southern Methodist University, a J.D. from Suffolk University Law School, and a Ph.D. in Biochemistry from the Massachusetts Institute of Technology.

About TScan Therapeutics, Inc.

TScan is a biopharmaceutical company focused on the development of T-cell receptor (TCR) engineered T cell therapies (TCR-T) for the treatment of patients with cancer. The company’s lead liquid tumor TCR-T therapy candidates, TSC-100 and TSC-101, are in development for the treatment of patients with hematologic malignancies to eliminate residual leukemia and prevent relapse after hematopoietic stem cell transplantation. The company is also developing multiplexed TCR-T therapy candidates for the treatment of various solid tumors.

Forward-Looking Statements

This press release may contain forward-looking statements and information within the meaning of The Private Securities Litigation Reform Act of 1995 and other federal securities laws. The use of words such as “may,” “will,” “could,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “seeks,” “endeavor,” “potential,” “continue” or the negative of such words or other similar expressions can be used to identify forward-looking statements. The express or implied forward-looking statements included in this press release are only predictions and are subject to a number of risks, uncertainties and assumptions, including, without limitation risks set forth under the caption “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of TScan’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, which is on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at https://www.sec.gov/. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although TScan believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither TScan nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements included in this press release. Any forward-looking statement included in this press release speaks only as of the date on which it was made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

Media Contact:

David Rosen
Argot Partners
212-600-1902
[email protected]

Investor Contact:

Sherri Spear
Argot Partners
212-600-1902
[email protected]

September 9, 2021 4:09 pm

AAR to announce first quarter fiscal year 2022 results on September 23, 2021

Wood Dale, Illinois, Sept. 09, 2021 (GLOBE NEWSWIRE) — AAR CORP. (NYSE: AIR) today announced that it will release financial results for its first quarter of fiscal year 2022, ended August 31, 2021, after the New York Stock Exchange trading session on Thursday, September 23, 2021.

On Thursday, September 23, 2021 at 3:45 p.m. CT, AAR will hold a conference call to discuss the results. The conference call can be accessed by calling 866-802-4322 from inside the United States or +1-703-639-1319 from outside the United States.

A replay of the conference call will also be available by calling 855-859-2056 from inside the United States or +1-404-537-3406 from outside the United States (access code 8294140). The replay will be available from 7:15 p.m. CT on September 23, 2021, until 10:59 p.m. CT on September 29, 2021.

# # #

About AAR

AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include Parts Supply; OEM Solutions; Integrated Solutions; and Maintenance, Repair and Overhaul (MRO) Services. AAR’s Expeditionary Services include Mobility Systems operations. Additional information can be found at www.aarcorp.com.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 which reflect management’s expectations about future conditions. Forward-looking statements may also be identified because they contain words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘likely,’’ ‘‘may,’’ ‘‘might,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘seek,’’ ‘‘should,’’ ‘‘target,’’ ‘‘will,’’ ‘‘would,’’ or similar expressions and the negatives of those terms. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For a discussion of these and other risks and uncertainties, refer to “Risk Factors” in our most recent Annual Report on Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Dylan Wolin
AAR CORP.
630-227-2000
[email protected]

September 9, 2021 4:09 pm

Apellis Announces Top-Line Results from Phase 3 DERBY and OAKS Studies in Geographic Atrophy (GA) and Plans to Submit NDA to FDA in the First Half of 2022

OAKS met the primary endpoint for both monthly and every-other-month treatment with pegcetacoplan, demonstrating a significant reduction in GA lesion growth of 22% (p=0.0003) and 16% (p=0.0052), respectively, compared to pooled sham at 12 months
DERBY did not meet the primary endpoint of GA lesion growth, showing a reduction of 12% (p=0.0528) and 11% (p=0.0750) with monthly and every-other-month treatment, respectively, compared to pooled sham at 12 months
In a prespecified analysis of the combined studies, pegcetacoplan decreased GA lesion growth in patients with extrafoveal lesions at baseline by 26% (p<0.0001) and 23% (p=0.0002) with monthly and every-other-month treatment, respectively
Favorable safety profile in both studies; new-onset exudations occurred in 6.0%, 4.1%, and 2.4% of patients in the combined pegcetacoplan monthly, every-other-month, and sham groups, respectively
Pegcetacoplan has the potential to become the first treatment for patients with GA
Conference call scheduled today at 4:30 p.m. ET

WALTHAM, Mass., Sept. 09, 2021 (GLOBE NEWSWIRE) — Apellis Pharmaceuticals, Inc. (Nasdaq: APLS), a global biopharmaceutical company and leader in complement, today reported top-line results from the Phase 3 DERBY and OAKS studies evaluating intravitreal pegcetacoplan, an investigational targeted C3 therapy, in 1,258 adults with geographic atrophy (GA) secondary to age-related macular degeneration (AMD). GA is a leading cause of blindness that impacts more than five million people globally including one million people in the United States.^1,2 Based on results from the studies, the company plans to submit a New Drug Application (NDA) for pegcetacoplan for GA to the U.S. Food and Drug Administration (FDA) in the first half of 2022.

“These results underscore the potential for pegcetacoplan to become the first treatment for geographic atrophy, a progressive and irreversible disease that robs patients of their vision and for which no treatment exists,” said Jeffrey S. Heier, M.D., principal investigator of the DERBY study and director, retina service and director, retinal research, Ophthalmic Consultants of Boston. “Pegcetacoplan demonstrated a clinically meaningful slowing of disease progression with an even stronger effect in GA patients with extrafoveal lesions.”

Monthly and every-other-month treatment with pegcetacoplan met the primary endpoint in OAKS, significantly reducing GA lesion growth by 22% (p=0.0003) and 16% (p=0.0052), respectively, compared to pooled sham at 12 months. DERBY did not meet the primary endpoint, showing a reduction in GA lesion growth of 12% (p=0.0528) and 11% (p=0.0750) with monthly and every-other-month treatment, respectively, compared to pooled sham at 12 months. In a prespecified analysis of the combined DERBY and OAKS studies, monthly and every-other-month treatment with pegcetacoplan reduced GA lesion growth by 17% (p<0.0001) and 14% (p=0.0012), respectively, compared to pooled sham at 12 months.

In a prespecified analysis of the primary endpoint, pegcetacoplan demonstrated a greater effect in patients with extrafoveal lesions at baseline. Patients with GA typically present first with extrafoveal lesions, which then progress toward the fovea where central vision is impacted. In the combined studies, monthly and every-other-month treatment with pegcetacoplan decreased GA lesion growth by 26% (p<0.0001) and 23% (p=0.0002), respectively, in patients with extrafoveal lesions compared to pooled sham at 12 months.

“Our mission is to develop transformative therapies for people with complement-driven diseases and now, after decades of challenges in this complex disease, pegcetacoplan is the first investigational therapy to significantly slow the progression of GA in a large Phase 3 study,” said Federico Grossi, M.D., Ph.D., chief medical officer, Apellis. “Across our ophthalmology development program, pegcetacoplan has demonstrated an efficacy and safety profile with both monthly and every-other-month dosing that we believe supports treatment for GA patients. We look forward to working with regulatory authorities to bring this medicine to patients in need as quickly as possible.”

Pegcetacoplan was well tolerated in both Phase 3 studies. The pooled rate of new-onset exudations was 6.0% of patients in the monthly pegcetacoplan groups, 4.1% in the every-other-month pegcetacoplan groups, and 2.4% in the sham groups. Two cases of confirmed infectious endophthalmitis and one case of suspected infectious endophthalmitis were observed in the study eye out of a total of 6,331 injections (0.047%). Thirteen events of intraocular inflammation were observed in the studies (0.21% per injection). No events of retinal vasculitis or retinal vein occlusion were observed. There were no clinically relevant changes in vision for patients who developed infectious endophthalmitis or intraocular inflammation.

“On the heels of our recent FDA approval in PNH, these pivotal results further reinforce the platform potential of targeting C3 across multiple diseases with few or no treatments,” said Cedric Francois, M.D., Ph.D., co-founder and chief executive officer, Apellis. “Apellis is singularly positioned to make a meaningful difference for patients living with a broad range of retinal, rare, and neurological diseases by targeting C3 to comprehensively control complement.”

The company continues to analyze results from the studies, and detailed data will be presented at upcoming scientific meetings.

Conference Call and Webcast

Apellis will host a conference call and webcast to discuss the results of the Phase 3 DERBY and OAKS studies today, September 9 at 4:30 p.m. ET. To access the live call by phone, please pre-register for the call here. The conference ID is 6595274. A live audio webcast of the event and accompanying slides may also be accessed through the “Events and Presentations” page of the “Investors and Media” section of the company’s website. A replay of the webcast will be available for 30 days following the event.

About DERBY and OAKS
DERBY (621 patients enrolled) and OAKS (637 patients enrolled) are Phase 3, multicenter, randomized, double-masked, sham-controlled studies comparing the efficacy and safety of intravitreal pegcetacoplan with sham injections in patients with geographic atrophy (GA) secondary to age-related macular degeneration (AMD). The primary objective of the studies is to evaluate the efficacy of pegcetacoplan in patients with GA assessed by change in the total area of GA lesions from baseline as measured by fundus autofluorescence (p-value less than .05) at 12 months. Patients in DERBY and OAKS will continue on masked treatment for 24 months.

About Geographic Atrophy (GA)

GA is an advanced form of age-related macular degeneration (AMD), a leading cause of blindness. GA lesions affect the central portion of the retina, known as the macula, which is responsible for central vision. Excessive complement activation drives irreversible lesion growth in GA,³ and C3 is the only target to precisely control complement overactivation. GA is progressive and irreversible, leading to central visual impairment and permanent loss of vision. Based on published studies, more than five million people have GA globally including approximately one million people in the United States.^1,² There are currently no approved treatments for GA.

About Pegcetacoplan for Geographic Atrophy (GA)

Pegcetacoplan is an investigational, targeted C3 therapy designed to regulate excessive activation of the complement cascade, part of the body’s immune system, which can lead to the onset and progression of many serious diseases. Pegcetacoplan was granted Fast Track designation by the U.S. Food and Drug Administration (FDA) for the treatment of geographic atrophy.

About Apellis
Apellis Pharmaceuticals, Inc. is a global biopharmaceutical company that is committed to leveraging courageous science, creativity, and compassion to deliver life-changing therapies. Leaders in targeted C3 therapies, we aim to develop transformative therapies for a broad range of debilitating diseases that are driven by excessive activation of the complement cascade, including those within hematology, ophthalmology, nephrology, and neurology. For more information, please visit http://apellis.com.

Apellis Forward-Looking Statement
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to Apellis’ interpretation of results from the DERBY and OAKS trials, its planned timing of regulatory submissions and the potential advantages and therapeutic potential of intravitreal pegcetacoplan for GA. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: whether results obtained in preclinical studies and clinical trials will be indicative of results that will be generated in future clinical trials; whether the results of the DERBY and OAKS trials are sufficient to support regulatory submissions; whether a submission for approval of intravitreal pegcetacoplan for GA on the basis of the DERBY and OAKS trials will be accepted by the FDA or foreign regulatory agencies; whether intravitreal pegcetacoplan will receive approval from the FDA or equivalent foreign regulatory agencies for GA when expected or at all; whether, if intravitreal pegcetacoplan receives approval, it will be successfully distributed and marketed; and other factors discussed in the “Risk Factors” section of Apellis’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2021 and the risks described in other filings that Apellis may make with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Apellis specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Contact:
Lissa Pavluk
[email protected]
617.977.6764

Investor Contact:
Meredith Kaya
[email protected]
617.599.8178

¹ Rudnicka AR, Jarrar Z, Wormald R, et al. Age and gender variations in age-related macular degeneration prevalence in populations of European ancestry: a meta analysis. Ophthalmology 2012;119:571–580.

²Wong WL, Su X, Li X, et al. Global prevalence of age-related macular degeneration and disease burden projection for 2020 and 2040: a systematic review and meta-analysis. Lancet Glob Health 2014;2:e106–116.

³Seddon, JM, Rosner, B. Validated prediction models for macular degeneration progression and predictors of visual acuity loss identify high-risk individuals. Am J Ophthalmol 2019;198:223–261.

September 9, 2021 4:09 pm

RxSight Reports Second Quarter 2021 Financial Results

ALISO VIEJO, Calif., Sept. 09, 2021 (GLOBE NEWSWIRE) — RxSight, Inc., an ophthalmic medical device company dedicated to improving the vision of patients following cataract surgery, today reported financial results for the three months ended June 30, 2021.

Recent Highlights

Achieved second quarter 2021 revenue of $4.9 million, representing growth of 81% compared to the prior year period, driven by:
- Sale of 25 Light Delivery Devices (LDD™s), expanding the installed base to 130 LDDs as of June 30, 2021; and
- Sale of 1,825 Light Adjustable Lenses (LAL^®s)
Received U.S. Food & Drug Administration (FDA) approval and launched the updated LAL with ActivShield™ technology in the third quarter of 2021, providing redundant ultraviolet light (UV) protection to simplify patient compliance and scheduling;
Expanded commercial leadership with the addition of Steve Everly as Vice President of U.S. Sales and appointed three new Directors to its Board including Robert (Bob) Palmisano, Robert Warner and Julie Andrews; and
Completed an initial public offering (IPO) in July raising approximately $120 million of net proceeds.

“Our second quarter performance was driven by further adoption of our Light Adjustable Lens system, which provides doctors with a premium intraocular lens (IOL) that can be customized after surgery to achieve optimal outcomes for patients,” said Ron Kurtz, Chief Executive Officer of RxSight^®. Dr. Kurtz continued, “As a result of the post-operative adjustability provided by the RxSight system doctors can be confident they will deliver the visual acuity and quality all patients expect, overcoming one of the major factors that has limited growth of the premium IOL market. We are excited that following the completion of our IPO, we have the resources to grow our business, including advancing our technology with features like ActivShield.”

Financial Results

Total revenue for the second quarter of 2021 was $4.9 million, an increase of 81% compared to $2.7 million for the second quarter of 2020. The growth was primarily driven by increased LDD and LAL unit sales and a more favorable market environment because of the reduced impact from the COVID-19 pandemic.

Gross (loss) for the second quarter of 2021 was $(0.8) million compared to $(0.5) million for the second quarter of 2020. The decline in gross profit was due to a $1.7 million inventory reserve for excess LAL inventory resulting from the recent introduction of an updated LAL with ActivShield technology.

Total operating expenses for the second quarter of 2021 were $13.1 million, a 57% increase from $8.3 million in the second quarter of 2020. The increase was primarily driven by higher headcount in sales and marketing to support the growth of the business and continued investments in research and development.

Net (loss) was $(13.5) million, or $(3.28) and $(3.53) per share on a basic and diluted basis, respectively, in the second quarter of 2021, compared to a net (loss) attributable to common shareholders of $(17.0) million, or $(4.66) per share in the second quarter of 2020.

Adjusted net (loss) was $(13.3) million, or $(3.24) per share on a basic and diluted basis, in the second quarter of 2021, compared to $(11.7) million, or $(3.21) per share on both a basic and diluted basis, in the second quarter of 2020.

Cash, cash equivalents and short-term investments as of June 30, 2021 were $61.7 million and long-term debt was $40.0 million. On July 29, 2021 $120 million in net proceeds were raised through the completion of an initial public offering.

Conference Call

On Thursday, September 9, 2021, at 1:30 p.m. Pacific Time, the company will host a conference call to discuss its second quarter 2021 financial results. The call may be accessed through a live and archived webcast of the event available for one year at https://investors.rxsight.com/.

About RxSight, Inc.

RxSight, Inc. is a commercial-stage medical technology company dedicated to improving the vision of patients following cataract surgery. The RxSight Light Adjustable Lens system, comprised of the RxSight Light Adjustable Lens (LAL), RxSight Light Delivery Device (LDD) and accessories, is the first and only commercially available intraocular lens (IOL) technology that enables doctors to customize and optimize visual acuity for patients after cataract surgery. The LAL now features ActivShield technology, a revolutionary UV protection layer built into the lens. Additional information about RxSight can be found at www.rxsight.com.

Forward-Looking Statements

This press release contains forward-looking statements, including those related physician adoption of the RxSight Light Adjustable Lens system, optimal outcomes for patients, the ability to deliver the visual acuity and quality patients expect and the ability to overcome one of the major factors that has limited growth of the premium market with the RxSight Adjustable Lens system, the ability to continue advancement of the RxSight technology and the ability of the IPO proceeds to fill the resource needs for growth in the Company’s business. Such statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, and among other things, our ability to maintain cash balances and successfully commercialize or partner our product candidates currently under development. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” or “continue” or the negative of such terms and other same terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors. These and other factors may cause our actual results to differ materially from any forward-looking statement. We undertake no obligation to update any of the forward-looking statements after the date of this press release to conform those statements to reflect the occurrence of unanticipated events, except as required by applicable law.

Investor Relations Contact:

Philip Taylor
Gilmartin Group
415.937.5406
[email protected]

Company contact:

Roy Freeman
Sr. Director, Marketing
[email protected]


RXSIGHT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Sales	$	4,897		$	2,706		$	8,381		$	5,594
Cost of sales		5,709			3,180			8,074			5,989
Gross profit (loss)		(812	)		(474	)		307			(395	)
Operating expenses:
Selling, general and administrative		6,502			3,249			12,113			6,948
Research and development		6,563			5,084			13,206			10,861
Total operating expenses		13,065			8,333			25,319			17,809
Loss from operations		(13,877	)		(8,807	)		(25,012	)		(18,204	)
Other income (expense), net:
Change in fair value of warrants		1,214			(4,178	)		1,214			(11,585	)
Expiration of warrant		—			—			5,018			—
Interest expense		(826	)		(4	)		(1,524	)		(9	)
Interest and other income		15			147			32			459

Loss before income taxes		(13,474	)		(12,842	)		(20,272	)		(29,339	)
Income tax expense		3			40			10			45
Net loss		(13,477	)		(12,882	)		(20,282	)		(29,384	)
Accretion to redemption value of redeemable preferred stock and redeemable stock options		—			(4,097	)		—			(8,343	)
Net loss attributable to common stockholders		(13,477	)		(16,979	)		(20,282	)		(37,727	)
Other comprehensive loss
Unrealized gain (loss) on short-term investments		(4	)		(112	)		3			(35	)
Foreign currency translation gain (loss)		1			3			(3	)		2
Total other comprehensive loss		(3	)		(109	)		—			(33	)
Comprehensive loss	$	(13,480	)	$	(12,991	)	$	(20,282	)	$	(29,417	)
Net loss per share:
Attributable to redeemable common stock, basic and diluted	$	—		$	(4.66	)	$	—		$	(10.46	)
Attributable to Series G common stock, basic and diluted	$	(0.32	)	$	(0.58	)	$	(0.48	)	$	(1.24	)
Attributable to common stock, basic	$	(3.28	)	$	—		$	(5.00	)	$	—
Attributable to common stock, diluted	$	(3.53	)	$	—		$	(5.23	)	$	—
Weighted-average shares used in computing net loss per share:
Attributable to redeemable common stock, basic and diluted		—			3,645,699			—			3,608,190
Attributable to Series G common stock, basic and diluted		1			1			1			1
Attributable to common stock, basic		4,106,403			—			4,052,920			—
Attributable to common stock, diluted		4,166,439			—			4,113,249			—


RXSIGHT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)

	June 30,			December 31,
	2021			2020 ⁽¹⁾
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	41,731		$	13,994
Short-term investments		19,998			54,981
Accounts receivable		3,936			2,865
Inventories		8,543			8,288
Prepaid and other current assets		1,338			1,372
Total current assets		75,546			81,500
Property and equipment, net		12,686			13,287
Operating leases right-of-use assets		4,749			5,319
Restricted cash		561			461
Other assets		1,344			110
Total assets	$	94,886		$	100,677
Liabilities, redeemable common stock, stock options, convertible preferred stock and stockholders’ deficit
Current liabilities:
Accounts payable	$	2,342		$	1,134
Accrued expenses and other current liabilities		4,781			4,174
Warrant liability		2,614			5,018
Lease liabilities		1,365			1,274
Total current liabilities		11,102			11,600
Long-term warrant liability		—			3,828
Long-term lease liabilities		4,374			5,079
Term loan, net		39,506			24,399
Total liabilities		54,982			44,906
Commitments and contingencies
Redeemable common stock:
Common stock, $0.001 par value, 24,545,966 shares authorized, 3,813,450 shares issued and outstanding as of December 31, 2020		—			80,780
Notes receivable for common stock issued		—			(803	)
Redeemable stock options		—			53,085
Convertible preferred stock:
Preferred stock, $0.001 par value, 16,572,792 shares authorized, 14,376,272 shares issued and outstanding as of June 30, 2021 and December 31, 2020 (redeemable), respectively		353,300			353,300
Stockholders’ deficit:
Common stock, $0.001 par value, 24,545,966 shares authorized, 4,124,211 shares issued and outstanding as of June 30, 2021		4			—
Additional paid-in capital		137,838			—
Notes receivable for common stock issued		(365	)		—
Series G common stock, $0.001 par value, 1 share authorized and outstanding as of June 30, 2021 and December 31, 2020		—			—
Series W common stock, $0.001 par value, 1 share authorized and no shares outstanding as of June 30, 2021 and December 31, 2020		—			—
Accumulated other comprehensive loss		(3	)		(3	)
Accumulated deficit		(450,870	)		(430,588	)
Total stockholders’ deficit		(313,396	)		(430,591	)
Total liabilities, redeemable common stock, stock options, convertible preferred stock and stockholders’ deficit	$	94,886		$	100,677

⁽¹⁾ The balance sheet at December 31,2020 has been derived from the audited consolidated financial statements included in RxSight, Inc.’s final prospectus for its public offering filed on July 29, 2021.

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP”), we believe certain non-GAAP measures, including Adjusted net (loss), and Adjusted net (loss) per share, basic and diluted, provide useful information to investors and are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense and the change in fair value of warrants because these are non-cash in nature and excluding these items provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies.

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. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance. 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, and not to rely on any single financial measure to evaluate our business.

Adjusted Net (Loss) and Adjusted Net (Loss) Per Share

Adjusted net (loss) is a non-GAAP financial measure that we define as net (loss) adjusted for (i) stock-based compensation and (ii) change in fair value of warrants. We believe Adjusted net (loss) provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Adjusted net (loss) for Series G Common Stock is not impacted by the adjustments.

Reconciliations of net (loss) to Adjusted net (loss) and the presentation of Adjusted net (loss) per share, basic and diluted, are as follows:


Reconciliation of U.S. GAAP to Other Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
Non-GAAP Adjusted Net (Loss) and Adjusted Net (Loss) per Share	2021			2020			2021			2020
Common Stock
Numerator:
Net (loss) available to stockholders, basic	$	(13,477	)	$	(16,979	)	$	(20,282	)	$	(37,727	)
Net (loss) available to stockholders, diluted		(14,691	)		(16,979	)		(21,496	)		(37,727	)
Add:
Stock-based compensation		1,406			1,083			2,645			1,706
Change in fair value of warrants		(1,214	)		4,178			(1,214	)		11,585
Adjusted net (loss) available to common stockholders, basic:	$	(13,285	)	$	(11,717	)	$	(18,851	)	$	(24,436	)
Adjusted net (loss) available to common stockholders, diluted:	$	(13,285	)	$	(11,717	)	$	(18,851	)	$	(24,436	)

Denominator:
Weighted-average shares outstanding, basic		4,106,403			3,645,699			4,052,920			3,608,190
Weighted-average shares outstanding, diluted		4,166,439			3,645,699			4,113,249			3,608,190
Adjusted net (loss) per share, basic	$	(3.24	)	$	(3.21	)	$	(4.65	)	$	(6.77	)
Adjusted net (loss) per share, diluted	$	(3.24	)	$	(3.21	)	$	(4.65	)	$	(6.77	)

September 9, 2021 4:09 pm

PetIQ, Inc. to Present at the Jefferies Virtual Pet Care Summit

EAGLE, Idaho, Sept. 09, 2021 (GLOBE NEWSWIRE) — PetIQ, Inc. (“PetIQ” or the “Company”) (Nasdaq: PETQ), a leading pet medication and wellness company, today announced that members of the management team will present at the Jefferies Virtual Pet Care Summit on Thursday, September 16, 2021.

The presentation will begin at 11:40 a.m. Eastern Time and can be accessed live over the Internet hosted at the “Investors” section of the Company’s website at www.PetIQ.com.

About PetIQ

PetIQ is a leading pet medication and wellness company delivering a smarter way for pet parents to help their pets live their best lives through convenient access to affordable veterinary products and services. The company engages with customers through more than 60,000 points of distribution across retail and e-commerce channels with its branded and distributed medications, which is further supported by its own world-class medications manufacturing facility in Omaha, Nebraska. The company’s national service platform, VIP Petcare, operates in over 3,400 retail partner locations in 41 states providing cost effective and convenient veterinary wellness services. PetIQ believes that pets are an important part of the family and deserve the best products and care we can give them.

Contact: [email protected] or 208.513.1513

September 9, 2021 4:09 pm

Traeger Announces Second Quarter Fiscal 2021 Results Provides Outlook for Full Year 2021

Traeger Announces Second Quarter Fiscal 2021 Results

Provides Outlook for Full Year 2021

SALT LAKE CITY–(BUSINESS WIRE)–
Traeger, Inc. (“Traeger”) (NYSE: COOK), creator and category leader of the wood pellet grill, today announced its financial results for the three-month period ended June 30, 2021.

Second Quarter FY 21 Highlights

Total revenue grew 39.1% to $213.0 million as compared to the second quarter last year
Gross margin of 39.1%
Net loss of $4.9 million
Adjusted EBITDA of $26.9 million

“We are extremely pleased and energized by the momentum in our business as we continue to disrupt the grilling industry,” commented Jeremy Andrus, CEO of Traeger. “Our strong revenue growth as well as the ongoing expansion and engagement of our passionate and engaged Traegerhood community demonstrate the power of our brand and our business model.”

We saw strong performance across regions and product categories. North America revenue increased 36.1% in the second quarter compared to the second quarter of 2020. Performance was driven by the productivity of our omnichannel sales strategy, the strength of our retail partnerships, and investment in top-of-funnel demand creation as we continue to drive brand awareness. We are also seeing exceptional growth in Canada as we optimize our sales and marketing strategy post the acquisition of our two Canadian distributors in late 2020. Rest of World second quarter revenue increased 163.0%, reflecting strong growth in both our direct markets and in markets managed by our third party distributors.

We continue to invest in consumer-led innovation that spans physical and digital products, and consumables. As part of our platform expansion, on July 1, 2021 we acquired Apption Labs (MEATER), a leader in smart meat thermometers. The acquisition further expands our connected cooking platform and enhances the cooking experience.

“Looking ahead, we see a significant opportunity to drive market share gains and remain committed to investing in product innovation, brand awareness, geographic expansion, and infrastructure to support long term and sustainable growth. I want to thank our team for the tremendous enthusiasm and hard work as we continue our journey forward,” said Jeremy Andrus, CEO of Traeger.

Operating Results for the Second Quarter

Total revenue increased by 39.1% to $213.0 million, compared to $153.2 million in the second quarter last year, driven by strong performance across the following product categories:

Grills increased 40.1% to $156.1 million as compared to the second quarter last year
Consumables increased 27.8% to $41.2 million as compared to the second quarter last year
Accessories increased 64.8% to $15.7 million as compared to the second quarter last year

Gross profit increased to $83.3 million, compared to $66.7 million in the second quarter last year. Gross profit margin was 39.1% in the second quarter, compared to 43.5% in the same period last year. The decrease in gross margin was due to increased shipping costs and appreciation of the Chinese Renminbi relative to the U.S. Dollar.

Sales and marketing expenses were $47.3 million, compared to $21.0 million in the second quarter last year. This was due to an increase in advertising to expand customer awareness and drive demand, as well as increased investments in talent across marketing, customer experience and sales. The sales and marketing expense growth also reflects an increase in consulting and third-party support services to enhance the customer experience.

General and administrative (“G&A”) expenses were $24.8 million, compared to $9.3 million in the second quarter last year. This was largely due to an increase of $10.3 million in professional services in connection with the refinancing of the Company’s long-term debt, consulting services, and legal expenses. The increase was also due to higher personnel-related expenses to support growth.

Net loss was $(4.9) million in the second quarter, or a loss of $(0.05) per diluted unit, as compared to a net income of $18.9 million in the second quarter of last year, or $0.17 per diluted unit.¹

Adjusted net income was $16.5 million, or $0.15 per unit as compared to adjusted net income of $27.8 million, or $0.26 per unit in the second quarter last year.²

Adjusted EBITDA was $26.9 million in the second quarter as compared to $39.3 million in the same period last year.³

Balance Sheet

Cash and cash equivalents at the end of the second quarter totaled $75.3 million, compared to $11.6 million at December 31, 2020. The cash balance at the end of the second quarter 2021 included $62.1 million provided by the refinancing of the Company’s long-term debt that was used to acquire Apption Labs on July 1, 2021.

Inventory at end of the second quarter was $86.2 million, compared to $68.8 million at December 31, 2020. While strategically navigating challenges in the global supply chain, we have managed our inventory balance to a level that represents the right product mix to meet expected demand and targeted levels of safety stock.

Total principal amount outstanding under our New First Lien Term Loan Facility was $510.0 million at the end of the second quarter. On June 29, 2021, the Company refinanced its existing Credit Facilities and entered into a new First Lien Credit Agreement under which it replaced its existing first and second lien term loans. Under the terms of our new credit agreement, we lowered our cost of capital, increased the capacity on our revolving credit facility from $67.0 million to $125.0 million, and added a $50.0 million delayed draw term loan. In addition, we increased the capacity under our receivables financing agreement to $100.0 million.

Long-Term Financial Outlook

“As we move forward, we will continue to make strategic investments to support the enormous growth opportunity that lies ahead for our brand. Over the long-term, we believe that our disruptive business model has the potential to deliver approximately 20% annual revenue growth and 20% adjusted EBITDA margins as we continue to execute on our strategy,” commented Dominic Blosil, CFO of Traeger.

Guidance For Full Year Fiscal 2021⁴

The current outlook reflects strong consumer demand, gross margin pressures due to global supply chain challenges, and investment in product innovation, marketing, and growth infrastructure.

Total revenue is expected to be between $760 million and $770 million
Adjusted EBITDA is expected to be between $103 million and $108 million

A reconciliation of Adjusted EBITDA guidance to net loss on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to interest expense, provision for income taxes, depreciation and amortization, equity-based compensation, other (income) expense, non-routine start-up costs, non-routine legal expenses, offering related expenses, and non-routine offering expenses, all of which are adjustments to Adjusted EBITDA.

Conference Call Details

A conference call to discuss the Company’s second quarter results is scheduled for September 9, 2021, at 4:30 p.m. ET. To participate, please dial (646) 904-5544 or (844) 200-6205 for international callers, conference ID 099191. The conference call will also be webcast live at https://investors.traeger.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (929) 458-6194 or (866) 813-9403 for international callers, conference ID 611426. A replay of the webcast will also be available approximately two hours after the conclusion of the call on the Company’s website as https://investors.traeger.com.

About Traeger

Traeger, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, a versatile and easy to use outdoor cooking system. Traeger pellet grills use all-natural hardwood fuel to infuse food with flavorful smoke, making food taste delicious and most of all, memorable. Traeger pellet grills utilize wood-fired convection power to provide 6-in-1 versatility; owners can grill, smoke, bake, roast, braise and barbecue meals on one cooking system.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our anticipated full year fiscal 2021 results, including in respect of the impact of the recent Apption Labs acquisition. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our history of operating losses; our ability to manage our future growth effectively; our ability to expand into additional markets; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to cost-effectively attract new customers and retain our existing customers; our failure to maintain product quality and product performance at an acceptable cost; the impact of product liability and warranty claims and product recalls; the highly competitive market in which we operate; the use of social media and community ambassadors; a decline in sales of our grills; our dependence on three major retailers; the impacts of the COVID-19 pandemic on certain aspects of our business; risks associated with our international operations; our reliance on a limited number of third-party manufacturers and problems with, or loss of, our suppliers or an inability to obtain raw materials; and the ability of our stockholders to influence corporate matters. These and other important factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the period ended June 30, 2021 and our other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

Traeger, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except unit amounts)

	June 30, 2021		December 31, 2020
ASSETS
Current Assets
Cash and cash equivalents	$	75,252	$	11,556
Accounts receivable, net	119,898		64,840
Inventories, net	86,151		68,835
Prepaid expenses and other current assets	11,084		13,776
Total current assets	292,385		159,007
Property, plant, and equipment, net	39,288		32,404
Goodwill	256,838		256,838
Intangible assets, net	523,225		539,841
Other long-term assets	7,424		1,491
Total assets	$	1,119,160	$	989,581
LIABILITIES AND MEMBERS’ EQUITY
Current Liabilities
Accounts payable	$	28,955	$	21,673
Accrued expenses	71,883		54,697
Line of credit	8,000		—
Current portion of notes payable	3,825		3,407
Current portion of capital leases	410		296
Total current liabilities	113,073		80,073
Notes payable, net of current portion	493,434		433,605
Capital leases, net of current portion	750		536
Other non-current liabilities	341		327
Total liabilities	607,598		514,541
Commitments and contingencies—See Note 7
Member’s equity
108,724,422 Member’s capital common units authorized, issued, and outstanding at June 30, 2021 and December 31, 2020	—		—
Member’s capital	573,539		571,038
Accumulated deficit	(61,977)		(95,998)
Total member’s equity	511,562		475,040
Total liabilities and member’s equity	$	1,119,160	$	989,581

Traeger, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) (in thousands, except unit and per unit amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue	$	213,022	$	153,190	$	448,595	$	266,973
Cost of revenue	129,715		86,502		264,657		148,530
Gross profit	83,307		66,688		183,938		118,443
Operating expense
Sales and marketing	47,269		20,985		78,120		37,703
General and administrative	24,802		9,306		38,358		18,310
Amortization of intangible assets	8,301		8,132		16,602		16,263
Total operating expense	80,372		38,423		133,080		72,276
Income from operations	2,935		28,265		50,858		46,167
Other income (expense), net:
Interest expense	(7,877)		(9,063)		(15,689)		(18,248)
Loss on extinguishment of debt	(1,957)		—		(1,957)		—
Other income (expense)	1,996		167		1,538		(600)
Total other expense, net	(7,838)		(8,896)		(16,108)		(18,848)
Income (loss) before provision for income taxes	(4,903)		19,369		34,750		27,319
Provision for income taxes	4		516		728		547
Net income (loss)	$	(4,907)	$	18,853	$	34,022	$	26,772
Comprehensive income (loss)	$	(4,907)	$	18,853	$	34,022	$	26,772
Net income (loss) attributable to common unit holders	$	(4,907)	$	18,853	$	34,022	$	26,772
Net income (loss) per unit, basic and diluted	$	(0.05)	$	0.17	$	0.31	$	0.25
Weighted-average number of units outstanding, basic and diluted	108,724,422		108,724,422		108,724,422		108,724,422

Traeger, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)

	Six Months Ended June 30,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	34,022	$	26,772
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	4,497		3,326
Amortization of intangible assets	16,942		16,593
Amortization of deferred financing costs	1,373		1,344
Loss on disposal of property, plant and equipment	51		50
Loss on extinguishment of debt	1,957		—
Equity-based compensation expense	2,501		1,254
Bad debt expense	107		—
Unrealized loss on derivative contracts	4,112		111
Change in operating assets and liabilities:
Accounts receivable	(55,165)		(57,184)
Inventories, net	(17,316)		5,782
Prepaid expenses and other current assets	(1,420)		(1,908)
Other long-term assets	(279)		—
Accounts payable and accrued expenses	24,798		16,398
Deferred rent	13		34
Net cash provided by operating activities	16,194		12,572
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment	(11,248)		(5,427)
Acquisition of subsidiaries	—		(200)
Capitalization of patent costs	(327)		(250)
Proceeds from notes receivable	—		21
Net cash used in investing activities	(11,575)		(5,856)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on line of credit	65,000		57,000
Repayments on line of credit	(57,000)		(50,000)
Proceeds from long-term debt	510,000		—
Payment of deferred financing costs	(8,478)		(339)
Repayments of long-term debt	(446,355)		(1,704)
Principal payments on capital lease obligations	(184)		(154)
Payment of deferred offering costs	(3,906)		—
Net cash provided by financing activities	59,077		4,803
Net increase in cash	63,696		11,519
Cash at beginning of period	11,556		7,077
CASH AT END OF PERIOD	$	75,252	$	18,596

Traeger, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)

(Continued)	Six Months Ended June 30,
	2021		2020
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	13,898	$	12,113
Cash paid for income taxes	$	874	$	76
NON-CASH FINANCING AND INVESTING ACTIVITIES
Equipment purchased under capital leases	$	511	$	257
Property, plant, and, equipment included in accounts payable	$	662	$	1,264

Traeger, Inc.

RECONCILIATIONS OF AND OTHER INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES

(unaudited)

In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions.

Each of Adjusted EBITDA and Adjusted Net Income is a key performance measure that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods. In addition, we believe that providing each of Adjusted EBITDA and Adjusted Net Income, together with a reconciliation of net income (loss) to each such measure, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. For example, due to finite-lived intangible assets included on our balance sheet following our corporate reorganization in 2017, we have significant non-cash amortization expense attributable to the nature of our capital structure.

Each of Adjusted EBITDA and Adjusted Net Income is used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA and Adjusted Net Income help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income or income from continuing operations. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Each of Adjusted EBITDA and Adjusted Net Income has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.

Adjusted EBITDA

We calculate Adjusted EBITDA as net income (loss) adjusted to exclude provision for income taxes, other (income) expense, interest expense, depreciation and amortization, equity-based compensation, non-routine legal expenses, non-routine start-up costs, offering related expenses, and non-routine refinancing expenses. Other (income) expense are gains (losses) on disposal of property, plant and equipment, impairments of long-term assets, and unrealized gains (losses) from derivatives. Non-routine legal expenses are primarily external legal expenses for litigation, patent and trademark defense, and legal costs related to an acquisition. Non-routine start-up costs represent investments in a new product category. Offering related expenses are primarily for legal and consulting costs incurred in connection with our IPO process. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin should be viewed as measures of operating performance that are supplements to, and not substitutes for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income (loss). The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Adjusted EBITDA on a consolidated basis.

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(dollars in thousands)
Net income (loss)	$	(4,907)		$	18,853		$	34,022		$	26,772
Adjusted to exclude the following:
Provision for income taxes	4			516			728			547
Other (income) expense	2,538			(351)			5,886			166
Interest expense	7,877			9,063			15,689			18,248
Depreciation and amortization	10,740			10,119			21,439			19,947
Equity-based compensation	1,545			640			2,501			1,254
Non-routine legal expenses	1,512			434			2,754			976
Non-routine start-up costs	2,980			—			2,980			—
Offering related expenses	666			—			1,035			—
Non-routine refinancing expenses	3,895			—			3,895			—
Adjusted EBITDA	$	26,850		$	39,274		$	90,929		$	67,910
Revenue	213,022			153,190			448,595			266,973
Net income (loss) as a percentage of revenue	(2.3)		%	12.3		%	7.6		%	10.0		%
Adjusted EBITDA Margin	12.6		%	25.6		%	20.3		%	25.4		%

Adjusted Net Income

We calculate Adjusted Net Income as net income (loss) adjusted to exclude other (income) expense, equity-based compensation, non-routine legal expenses, amortization of acquisition intangibles, non-routine start-up costs, offering related expenses, and non-routine refinancing expenses. Amortization of acquisition intangibles includes amortization expense associated with intangible assets recorded in connection with the 2017 acquisition of Traeger Pellet Grills Holdings LLC. Adjusted Net Income should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income (loss). The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Adjusted Net Income on a consolidated basis.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Net income (loss)	$	(4,907)	$	18,853	$	34,022	$	26,772
Adjusted to exclude the following:
Other (income) expense	2,538		(351)		5,886		166
Equity-based compensation	1,545		640		2,501		1,254
Non-routine legal expenses	1,512		434		2,754		976
Amortization of acquisition intangibles	8,253		8,253		16,507		16,507
Non-routine start-up costs	2,980		—		2,980		—
Offering related expenses	666		—		1,035		—
Non-routine refinancing expenses	3,895		—		3,895		—
Tax impact of adjusting items	—		—		—		—
Adjusted Net Income	$	16,482	$	27,829	$	69,580	$	45,675

^{____________________________

1} There were no potentially dilutive securities outstanding as of June 30, 2021 and June 30, 2020.

² Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.

³ Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.

⁴ On July 1, 2021, the Company acquired all of the equity interest of Apption Labs. Full year fiscal 2021 guidance includes the expected financial results of Apption Labs for the second half of 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006063/en/

Investors:

Jean Fontana / Bruce Williams

ICR, Inc.

[email protected]

Media:

ICR, Inc.

[email protected]

KEYWORDS: Utah United States North America

INDUSTRY KEYWORDS: Online Retail Retail Other Retail Home Goods Specialty Food/Beverage

MEDIA:

September 9, 2021 4:08 pm

Primerica Releases Fourth Financial Security Monitor

Primerica Releases Fourth Financial Security Monitor

From the Gas Pump to Groceries, Middle-Income Americans Experiencing Higher Prices

DULUTH, Ga.–(BUSINESS WIRE)–
Primerica, Inc. (NYSE: PRI), a leading provider of financial services in the U.S. and Canada, is releasing its latest quarterly Middle-Income Financial Security Monitor – a national survey of middle-income families measuring their financial situation. The survey found that 65% of middle-income families feel positive about their current financial situation; however, an equal share (65%) says their income is falling behind the cost of living, up 9% from April. Primerica’s Financial Security Monitor measures changes in the sentiments of middle-income families about their finances.

“We’re encouraged that most middle-income families are optimistic about their financial situations, although they are feeling the pressure of rising inflation,” said Glenn J. Williams, CEO of Primerica. “We also see that more than half of these families are taking responsibility to improve their financial situation by saving for the future and protecting their families with life insurance, and even more families are considering taking similar actions. These steps are especially important today, as people are reporting increased prices on everything from gas to eating out to going to the movies.”

Key Findings from Primerica’s U.S. Middle-Income Financial Security Monitor

Nearly everyone has noticed increasing costs of goods and services. This includes gas (94%), local home prices (92%), groceries (91%), housing costs (90%), restaurants/bars (84%), health care (80%), entertainment – movies, sporting events, concerts (75%), taxes (73%), and childcare (73%).Additionally, concern about paying for food and groceries has grown from 12% to 17% in the past year.
About half have life insurance, but Covid-19 is increasing interest among middle-income families. About half (53%) of individuals report having life insurance, and 19% have life insurance policies outside of work of $100K or less, 10% have policies between $100-$300K, and 4% have policies worth more than $400K. Among those who do not have a life insurance policy outside of work, 10% of say they are more interested in finding out about purchasing life insurance because of Covid-19.
Topline Trends Data: As concerns over rising inflation are starting to emerge, middle-income consumers remain positive about their personal finances.

	Aug. 2021	Apr. 2021	Dec. 2020	Sep. 2020
More say their income is falling behind the cost of living.	65%	56%	59%	50%
Fewer anticipate being financially better off a year from now.	18%	25%	23%	32%
Fewer are saving enough for a comfortable retirement.	22%	25%	24%	31%
More feel it will be difficult to save for the future.	63%	58%	65%	54%
About the same say their personal finances are in good shape.	65%	67%	57%	64%

The full study is available for review on Primerica’s “Our Impact” webpage here: www.primerica.com/public/our-impact.html

About Primerica’s Middle-Income Financial Security Monitor

The Monitor is a quarterly national survey to monitor the financial health of those with annual household incomes of $30,000-$100,000 in 2020. Change Research conducted online polling from July 27 through August 5, 2021. Using Dynamic Online Sampling, Change Research polled 841 adults. Post-stratification weights were made on gender, age, race, education and Census region to reflect the population of these adults based on the five-year averages in the 2018 American Community Survey published by the U.S. Census. The margin of error is 4.3%.

About Primerica, Inc.

Primerica is a leading provider of financial services to middle-income households in the United States and Canada. Licensed financial representatives educate Primerica clients about how to prepare for a more secure financial future by assessing their needs and providing appropriate products like term life insurance, mutual funds, annuities, and other financial products. Primerica insured over 5.5 million people and had over 2.6 million client investment accounts as of December 31, 2020. Primerica was the #2 issuer of Term Life insurance coverage in North America in 2019 through its insurance company subsidiaries. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006050/en/

Investor Contact:

Nicole Russell

470-564-6663

Email: [email protected]

Media Contact:

Keith Hancock

470-564-6328

Email: [email protected]

KEYWORDS: United States North America Canada Georgia

INDUSTRY KEYWORDS: Professional Services Other Professional Services Insurance Finance Consulting Banking

MEDIA:

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September 9, 2021 4:08 pm

A-Mark Precious Metals Reports Fiscal Fourth Quarter and Record Full Year 2021 Results

Recent Acquisition of JM Bullion has Major Impact on Earnings Growth

Company Declares a Non-recurring Special Dividend of $2.00 per Common Share

EL SEGUNDO, Calif., Sept. 09, 2021 (GLOBE NEWSWIRE) — A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, reported results for the fiscal fourth quarter and full year ended June 30, 2021.

Fiscal Fourth Quarter 2021 Financial Highlights

Revenues for the three months ended June 30, 2021 were a $2.18 billion, a 31% increase over the $1.67 billion reported for the three months ended June 30, 2020 and 6% over the strong $2.05 billion reported for the three months ended March 31, 2021
Gross profit for the three months ended June 30, 2021 was a record $87.1 million, an increase of 211% over the $28.0 million reported for the three months ended June 30, 2020 and 28% over the $68.2 million reported for the three months ended March 31, 2021
Gross profit margins for the three months ended June 30, 2021 rose to 4.00% of revenue, from 1.68% of revenue for the three months ended June 30, 2020, and 3.33% of revenue in the strong three months ended March 31, 2021
Net income attributable to the Company for the three months ended June 30, 2021 totaled $51.0 million or $4.28 per diluted share, a 72% increase in diluted earnings per share, as compared to net income of $17.8 million or $2.49 per diluted share for the three months ended June 30, 2020, and net income of $76.6 million or $8.84 per diluted share for the three months ended March 31, 2021. Net income attributable to the Company for the three months ended March 31, 2021 included a $26.3 million remeasurement gain on its pre-existing equity interest in JM Bullion (“JMB”) in connection with its acquisition, as well as $2.6 million of non-recurring acquisition costs
Adjusted net income before provision for income taxes, a non-GAAP financial measure, for the three months ended June 30, 2021 totaled $72.3 million, as compared to $23.0 million for the three months ended June 30, 2020
In its first full quarter 100% owned by A-Mark, JMB (acquired by the Company on March 19, 2021) made significant additions to A-Mark’s earnings, contributing $37.6 million to the Company’s gross profit and $24.0 million to pre-tax earnings for the fourth quarter
Gold ounces sold in the three months ended June 30, 2021 increased 15% to 772,000 ounces from 669,000 ounces for the three months ended June 30, 2020 and remained consistent with the 771,000 ounces sold for the three months ended March 31, 2021
Silver ounces sold in the three months ended June 30, 2021 increased 20% to 35.7 million ounces from 29.6 million ounces for the three months ended June 30, 2020 and increased 8% from 33.1 million ounces for the three months ended March 31, 2021
As of June 30, 2021, the number of secured loans increased 162% to 1,881 from 717 as of June 30, 2020 and increased 20% from 1,571 as of March 31, 2021

Fiscal Fourth Quarter 2021 Financial R
e
sults

Revenues increased 31% to $2.18 billion from $1.67 billion in the same year-ago quarter. The increase in revenues was primarily due to an increase in the total amount of gold and silver ounces sold and higher selling prices of gold and silver, partially offset by lower forward sales. Financial results for the three months ended June 30, 2021 included $603.8 million of revenue that is attributable to the Company’s recent acquisition of JMB, representing approximately 28% of the total consolidated revenue for the period.

Gross profit increased 211% to $87.1 million (4.00% of revenue) from $28.0 million (1.68% of revenue) in the same year-ago quarter. The increase in gross profit was due to higher gross profits earned by the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The increase in gross margin percentage was mainly attributable to significantly wider premium spreads due to increased demand and higher trading profits primarily due to increased volatility, lower forward sales, as well as higher gross profit earned by the Direct-to-Consumer segment due to JMB. Approximately 43% of the consolidated gross profit for the quarter was attributable to JMB.

Selling, general and administrative expenses increased 144% to $25.0 million from $10.2 million in the same year-ago quarter. The increase was primarily due to $12.8 million of expenses incurred by JMB, of which $7.7 million was attributable to amortization expense, and overall increases in consulting costs of $0.5 million, compensation expense of $0.3 million, and insurance costs of $0.7 million. Approximately 51% of the consolidated selling, general, and administrative expenses for the quarter was attributable to JMB.

Interest income increased 60% to $5.2 million from $3.3 million in the same year-ago quarter. The increase in interest income was primarily due to higher interest income earned from the Company’s Secured Lending segment due to higher average monthly secured loan balances outstanding as compared to the same year-ago quarter, and higher other finance product income.

Interest expense increased 45% to $5.2 million from $3.6 million in the same year-ago quarter. The increase in interest expense was primarily due to higher interest expense associated with a higher usage of the Company’s Trading Credit Facility, product financing arrangements and liabilities on borrowed metals, and increases in loan servicing fees related to higher average secured loan balances as compared to the same year-ago quarter.

Earnings from equity method investments decreased 63% to $1.6 million from $4.5 million in the same year-ago quarter. This decrease was due to the acquisition of the remaining 79.5% interest in the Company’s previous equity method investment in JMB during the fiscal third quarter, which is now consolidated as a wholly owned subsidiary, offset by an increase in earnings and higher ownership interests in the remaining equity method investments compared to the same year-ago quarter.

Net income attributable to the Company totaled $51.0 million or $4.28 per diluted share, compared to net income of $17.8 million or $2.49 per diluted share in the same year-ago quarter. Diluted weighted average shares outstanding for the three months ended June 30, 2021 were 11,915,700, compared to 7,173,000 in the same year-ago quarter.

Fiscal Year 2021 Financial Highlights

Revenues for the fiscal year ended June 30, 2021 were a $7.61 billion, a 39% increase over the $5.46 billion reported for the fiscal year ended June 30, 2020
Gross profit for the fiscal year ended June 30, 2021 was a record $210.2 million, an increase of 214% over the $67.0 million reported for the fiscal year ended June 30, 2020
Gross profit margins for the fiscal year ended June 30, 2021 rose to 2.76% of revenue, from 1.23% of revenue for the fiscal year ended June 30, 2020
Net income attributable to the Company for the fiscal year ended June 30, 2021 totaled $159.6 million or $17.79 per diluted share, as compared to net income of $30.5 million or $4.31 per diluted share for the fiscal year ended June 30, 2020. Net income attributable to the Company for the fiscal year ended June 30, 2021 included a $26.3 million remeasurement gain on its pre-existing equity interest in JMB in connection with its acquisition, as well as $2.6 million of non-recurring acquisition costs
Adjusted net income before provision for income taxes, a non-GAAP financial measure, for the fiscal year ended June 30, 2021 totaled $179.9 million, as compared to $40.8 million for the fiscal year ended June 30, 2020
Gold ounces sold for the fiscal year ended June 30, 2021 increased 26% to 2.7 million ounces from 2.2 million ounces for the fiscal year ended June 30, 2020

Silver ounces sold for the fiscal year ended June 30, 2021 increased 26% to 114.3 million ounces from 90.4 million ounces for the fiscal year ended June 30, 2020

Fiscal Year 2021 Financial Results

Revenues increased 39% to $7.61 billion from $5.46 billion in the prior fiscal year. The increase in revenues was primarily due to an increase in the total amount of gold and silver ounces sold and higher selling prices of gold and silver, partially offset by lower forward sales. Financial results for the fiscal year ended June 30, 2021 included $672.2 million of revenue that is attributable to JMB’s operations during the post-acquisition period from March 20, 2021 through June 30, 2021, representing approximately 9% of the total consolidated revenue for the year.

Gross profit increased 214% to $210.2 million (2.76% of revenue) from $67.0 million (1.23% of revenue) in the same year-ago period. The overall gross profit increase was due to higher gross profits from the Wholesale Sales & Ancillary Services and Direct-to-Consumer segments. The increase in gross profit was primarily due to significantly wider premium spreads due to increased demand, higher trading profits due to increased volatility, lower forward sales, as well as higher gross profit earned by the Direct-to-Consumer segment due to JMB. Approximately 22% of the consolidated gross profit for the year was attributable to JMB.

Selling, general, and administrative expenses increased 60% to $58.8 million from $36.8 million in the prior fiscal year. The increase was primarily due to $14.5 million of expenses incurred by JMB, of which $8.7 million was attributable to amortization expense, $2.6 million of costs associated with the acquisition of JMB, increased compensation expense (including performance-based accruals) of $2.4 million, and higher insurance costs of $1.4 million. Approximately 25% of the consolidated selling, general, and administrative expenses for the year was attributable to JMB.

Interest income decreased 13% to $18.5 million from $21.2 million in the prior fiscal year. The decrease in interest income was primarily due to lower interest income earned by the Company’s Secured Lending segment due to lower average monthly secured loan balances outstanding as compared to the prior fiscal year, partially offset by higher other finance product income. The number of secured loans increased 162% to 1,881 from 717 at the end of the prior fiscal year.

Interest expense increased 5% to $19.9 million from $18.9 million in the prior fiscal year. The increase in interest expense was primarily driven by higher interest expense associated with product financing arrangements, higher interest and fees from liabilities on borrowed metals, partially offset by a reduction in loan servicing fees, and less interest expense related to the Company’s Trading Credit Facility.

Earnings from equity method investments increased 219% to $15.5 million from $4.9 million in the prior fiscal year. The aggregate increase was due to an increase in earnings and ownership interests in the Company’s equity method investments compared to the prior fiscal year, offset by a reduction due to the acquisition of the remaining 79.5% interest in our previous equity method investment in JMB during the fiscal third quarter, which is now consolidated as a wholly owned subsidiary.

Net income attributable to the Company totaled $159.6 million or $17.79 per diluted share, an appreciable improvement from net income of $30.5 million or $4.31 per diluted share in the prior fiscal year. Net income attributable to the Company for the fiscal year ended June 30, 2021 included a $26.3 million remeasurement gain on its pre-existing equity interest in JMB in connection with its acquisition. Excluding the remeasurement gain, net income attributable to the Company for the fiscal year ended June 30, 2021 was $133.3 million. Net income attributable to the Company also included $2.6 million of non-recurring costs associated with the acquisition of JMB. Diluted weighted average shares outstanding for the fiscal year ended June 30, 2021 were 8,972,300, compared to 7,080,500 for the prior fiscal year.

Management Commentary

“The fourth quarter marked a solid finish to a record and transformative year for A-Mark,” said A-Mark CEO Greg Roberts. “The integration and contribution of JMB’s business has exceeded expectations, driving higher gross profit margins and pre-tax income, excluding the remeasurement gain associated with the JMB acquisition, compared to the prior quarter, and supported by healthy macro trends across our business. More specifically, the 28% sequential increase in gross profit and 37% return on equity, excluding the remeasurement gain, for the fiscal year reflects the strategic expansion of our Direct-to-Consumer (DTC) business and our ability to leverage our platform to take advantage of supply constrained environments.”

Michael Wittmeyer, JMB CEO, added: “The integration of JMB into A-Mark has gone as smoothly as I could have hoped. As planned, JMB is now successfully leveraging the enhanced access to the A-Mark supply chain and product portfolio into a significant advantage in the precious metals eCommerce landscape. We remain thrilled with the partnership and are highly enthusiastic about all the opportunities on our roadmap.”

Greg Roberts continued: “JMB continues to exceed our expectations and has established significant operational momentum in our DTC business segment, including synergies between brands under the A-Mark portfolio and strong pricing premiums. Our recently announced increased stake in Pinehurst provides the Company with increased exposure to yet another established, high-quality DTC brand with a unique customer base. We continue to evaluate opportunistic investments within the DTC segment, specifically targeting value-add brands that can provide A-Mark with a broader geographic or customer footprint.

“We entered fiscal 2022 in a strong position as recent strategic acquisitions and investments such as JMB, Pinehurst, Sunshine Mint, and our purchase of the remaining interest in SilverTowne Mint, have dramatically strengthened our vertically integrated capabilities and continues to provide us with price stability and secured access to product, particularly during volatile and supply constrained market conditions. Our expanded A-Mark business continues to benefit from the sustained rally in the precious metals market, and we remain optimistic that our favorable competitive position, industry leading fully integrated precious metals platform, and proven business model will help us capitalize on near-term opportunities and realize continued growth and profitability over the long term.”

Special Dividend

A-Mark’s Board of Directors approved a non-recurring special dividend of $2.00 per common share. The special dividend will be paid on or about September 24, 2021 to stockholders of record as of September 20, 2021.

Conference Call

A-Mark will hold a conference call today (September 9, 2021) to discuss these financial results. The Company’s CEO Greg Roberts, President Thor Gjerdrum, CFO Kathleen Simpson-Taylor, and JMB’s CEO Michael Wittmeyer will host the call at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). A question-and-answer session will follow management’s presentation.

To participate, please dial the appropriate number at least five minutes prior to the start time and ask for the A-Mark Precious Metals conference call.

U.S. dial-in number: 1-877-407-0789
International number: 1-201-689-8562
Conference ID: 13722502

The conference call will be broadcast simultaneously and available for replay via the Investor Relations section of A-Mark’s website at www.amark.com. If you have any difficulty connecting with the conference call or webcast, please contact A-Mark’s investor relations team at 1-949-574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time through September 24, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Conference ID: 13722502

About A-Mark Precious Metals
Founded in 1965, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Secured Lending, and Direct-to-Consumer. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, and e-commerce and other retail customers.

A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum coins since 1986, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has longstanding distributorships with other sovereign mints, including Australia, Austria, Canada, China, Mexico, South Africa and the United Kingdom. The company sells more than 200 different products to e-commerce retailers, coin and bullion dealers, financial institutions, brokerages and collectors. In addition, A-Mark sells precious metal products to industrial users, including metal refiners, manufacturers and electronic fabricators.

Through its A-M Global Logistics subsidiary, A-Mark provides its customers with a range of complementary services, including managed storage options for precious metals as well as receiving, handling, inventorying, processing, packaging, and shipping of precious metals and coins on a secure basis. A-Mark’s mint operations, which are conducted through its wholly owned subsidiary SilverTowne Mint, enable the company to offer customers a wide range of proprietary coin and bar offerings and, during periods of market volatility when the availability of silver bullion from sovereign mints is often product constrained, preferred product access.

The company operates its Secured Lending segment through its wholly owned subsidiaries, Collateral Finance Corporation (CFC) and AM Capital Funding. Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors and collectors. AM Capital Funding was formed in 2018 for the purpose of securitizing eligible secured loans of CFC.

A-Mark’s Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its wholly owned subsidiaries, JM Bullion and Goldline. JM Bullion is a leading e-commerce retailer of precious metals and operates five separately branded, company-owned websites targeting specific niches within the precious metals market: JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org, SilverPrice.org. Goldline markets precious metals directly to the investor community through various channels, including television, radio and telephonic sales efforts. A-Mark also holds minority ownership interests in two additional direct-to-consumer brands.

A-Mark is headquartered in El Segundo, CA and has additional offices and facilities in the neighboring Los Angeles area as well as in Dallas, TX, Las Vegas, NV, Winchester, IN, and Vienna, Austria. For more information, visit www.amark.com.

Important Cautions Regarding Forward-Looking Statements

Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the failure to execute our growth strategy as planned; greater than anticipated costs incurred to execute this strategy; changes in the current international political climate which has favorably contributed to demand and volatility in the precious metals markets; increased competition for our higher margin services, which could depress pricing; the failure of our business model to respond to changes in the market environment as anticipated; general risks of doing business in the commodity markets; the effects of the COVID-19 pandemic and the eventual return to normalized business and economic conditions; and the strategic, business, economic, financial, political and governmental risks described in in the company’s public filings with the Securities and Exchange Commission.

The words “should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” “foresee,” “plan” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Use and Reconciliation of Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP financial measure is useful in evaluating our operating performance. We present “adjusted net income before provision for income taxes” because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from this financial measure may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, this non-GAAP financial measure should be considered in addition to, and not as a substitute for or superior to, the comparable measures prepared in accordance with GAAP, and should be read in conjunction with the financial statements included in our Annual Report on Form 10-K to be filed with the SEC.

In our reconciliation from our reported GAAP “net income before provision for taxes” to our non-GAAP “adjusted net income before provision for taxes,” we eliminate the impact of the following four amounts: (i) remeasurement gains; (ii) acquisition expenses; (iii) amortization expenses related to intangible assets acquired; and (iv) depreciation expense.

We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.

Company Contact:

Steve Reiner, Executive Vice President, Capital Markets & Investor Relations
A-Mark Precious Metals, Inc.
1-310-587-1410
[email protected]

Investor Relations Contact:

Matt Glover or Jeff Grampp, CFA
Gateway Investor Relations
1-949-574-3860
[email protected]

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except for share data)

	June 30, 2021		June 30, 2020
ASSETS
Current assets:
Cash	$	101,405	$	52,325
Receivables, net		89,000		49,142
Derivative assets		44,536		46,325
Secured loans receivable		112,968		63,710
Precious metals held under financing arrangements		154,742		178,577
Inventories:
Inventories		256,991		246,603
Restricted inventories		201,028		74,678
		458,019		321,281
Prepaid expenses and other assets		3,557		2,659
Total current assets		964,227		714,019
Operating lease right of use assets		5,702		4,223
Property, plant, and equipment, net		8,609		5,675
Goodwill		100,943		8,881
Intangibles, net		93,633		4,974
Long-term investments		18,467		16,763
Other long-term assets		—		3,500
Total assets	$	1,191,581	$	758,035
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Lines of credit		185,000	$	135,000
Liabilities on borrowed metals		91,866		168,206
Product financing arrangements		201,028		74,678
Accounts payable and other current liabilities		200,351		140,930
Derivative liabilities		7,539		25,414
Accrued liabilities		18,785		10,397
Income tax payable		5,016		2,135
Total current liabilities		709,585		556,760
Notes payable		93,249		92,517
Deferred tax liabilities		19,514		62
Other liabilities		5,291		3,802
Total liabilities		827,639		653,141
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, authorized 10,000,000 shares; issued and outstanding: none as of June 30, 2021 and June 30, 2020		—		—
Common stock, par value $0.01; 40,000,000 shares authorized; 11,229,657 and 7,031,500 shares issued and outstanding as of June 30, 2021 and June 30, 2020, respectively		113		71
Additional paid-in capital		150,420		27,289
Retained earnings		212,090		73,644
Total A-Mark Precious Metals, Inc. stockholders’ equity		362,623		101,004
Noncontrolling interests		1,319		3,890
Total stockholders’ equity		363,942		104,894
Total liabilities, noncontrolling interests and stockholders’ equity	$	1,191,581	$	758,035

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except for share and per share data)

	Years Ended
	June 30, 2021			June 30, 2020
Revenues	$	7,613,015		$	5,461,094
Cost of sales		7,402,817			5,394,121
Gross profit		210,198			66,973
Selling, general, and administrative expenses		(58,809	)		(36,756	)
Interest income		18,474			21,237
Interest expense		(19,865	)		(18,859	)
Earnings from equity method investments		15,547			4,878
Other income, net		1,079			348
Remeasurement gain on pre-existing equity interest		26,306			—
Unrealized (losses) gains on foreign exchange		(129	)		57
Net income before provision for income taxes		192,801			37,878
Income tax expense		(31,877	)		(6,387	)
Net income		160,924			31,491
Net income attributable to noncontrolling interests		1,287			982
Net income attributable to the Company	$	159,637		$	30,509
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:
Basic	$	19.13		$	4.34
Diluted	$	17.79		$	4.31

Weighted average shares outstanding:
Basic		8,343,300			7,031,500
Diluted		8,972,300			7,080,500

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

Years Ended June 30,	2021			2020
Cash flows from operating activities:
Net income	$	160,924		$	31,491
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		10,788			2,900
Amortization of loan cost		2,162			1,484
Deferred income taxes		(2,034	)		3,225
Interest added to principal of secured loans		(13	)		(19	)
Share-based compensation		1,173			953
Remeasurement gain on pre-existing equity method investment		(26,306	)		—
Earnings from equity method investments		(15,547	)		(4,878	)
Dividend received from equity method investee		343			—
Changes in assets and liabilities:
Receivables		(20,880	)		(22,247	)
Secured loans receivable		1,932			3,086
Secured loans made to affiliates		5,755			5,261
Derivative assets		7,447			(43,897	)
Income tax receivable		—			1,473
Precious metals held under financing arrangements		23,835			30,215
Inventories		(79,031	)		(28,420	)
Prepaid expenses and other assets		(7	)		59
Accounts payable and other current liabilities		(27,446	)		78,750
Derivative liabilities		(20,194	)		15,443
Liabilities on borrowed metals		(76,340	)		(32,938	)
Accrued liabilities		5,687			3,859
Income tax payable		(4,902	)		2,135
Net cash (used in) provided by operating activities		(52,654	)		47,935
Cash flows from investing activities:
Capital expenditures for property, plant, and equipment		(2,113	)		(836	)
Purchase of long-term investments		(7,996	)		—
Purchase of intangible assets		—			(150	)
Secured loans receivable, net		(56,932	)		53,260
Acquisition of remaining noncontrolling equity interest in joint venture		(1,950	)		—
Other secured loans, net		—			(3,500	)
Redemption adjustment of equity method investment		17,457			—
Incremental acquisition of pre-existing equity method investment, net of cash		(78,859	)		—
Net cash (used in) provided by investing activities		(130,393	)		48,774
Cash flows from financing activities:
Product financing arrangements, net		126,350			(19,827	)
Dividends paid		(21,191	)		—
Borrowings and repayments under lines of credit, net		50,000			(32,000	)
Net proceeds from the issuance of common stock		75,344			—
Debt funding issuance costs		(1,861	)		(761	)
Net settlement on issuance of common shares on exercise of options		3,485			(116	)
Net cash provided by (used in) financing activities		232,127			(52,704	)
Net increase in cash, cash equivalents, and restricted cash		49,080			44,005
Cash, cash equivalents, and restricted cash, beginning of period		52,325			8,320
Cash, cash equivalents, and restricted cash, end of period	$	101,405		$	52,325

Overview of Results of Operations for the Years Ended June 30, 2021 and 2020

Consolidated Results of Operations

The operating results of our business for the years ended June 30, 2021 and 2020 are as follows:

*in thousands, except per share data*
	Years Ended
	June 30, 2021						June 30, 2020
	$			% of revenue			$			% of revenue			Increase/ (decrease)			Increase/ (decrease)
Revenues	$	7,613,015			100.000	%	$	5,461,094			100.000	%	$	2,151,921			39.4	%
Gross profit		210,198			2.761	%		66,973			1.226	%	$	143,225			213.9	%
Selling, general, and administrative expenses		(58,809	)		(0.772	)%		(36,756	)		(0.673	)%	$	22,053			60.0	%
Interest income		18,474			0.243	%		21,237			0.389	%	$	(2,763	)		(13.0	%)
Interest expense		(19,865	)		(0.261	)%		(18,859	)		(0.345	)%	$	1,006			5.3	%
Earnings from equity method investments		15,547			0.204	%		4,878			0.089	%	$	10,669			218.7	%
Other income, net		1,079			0.014	%		348			0.006	%	$	731			210.1	%
Remeasurement gain on pre-existing equity interest		26,306			0.346	%		—			0.0	%	$	26,306			0.0	%
Unrealized (losses) gains on foreign exchange		(129	)		(0.002	)%		57			0.001	%	$	186			326.3	%
Net income before provision for income taxes		192,801			2.533	%		37,878			0.694	%	$	154,923			409.0	%
Income tax expense		(31,877	)		(0.419	)%		(6,387	)		(0.117	)%	$	25,490			399.1	%
Net income		160,924			2.114	%		31,491			0.577	%	$	129,433			411.0	%
Net income attributable to noncontrolling interests		1,287			0.017	%		982			0.018	%	$	305			31.1	%
Net income attributable to the Company	$	159,637			2.097	%	$	30,509			0.559	%	$	129,128			423.2	%
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:
Per Share Data:
Basic	$	19.13					$	4.34					$	14.79			340.8	%
Diluted	$	17.79					$	4.31					$	13.48			312.8	%

Overview of Results of Operations for the Three Months Ended June 30, 2021 and 2020

Consolidated Results of Operations

The operating results of our business for the three months ended June 30, 2021 and 2020 are as follows:

*in thousands, except per share data*
	Three Months Ended
	June 30, 2021						June 30, 2020						$			%
	$			% of revenue			$			% of revenue			Increase/ (decrease)			Increase/ (decrease)
Revenues	$	2,178,666			100.000	%	$	1,665,768			100.000	%	$	512,898			30.8	%
Gross profit		87,131			3.999	%		28,027			1.683	%	$	59,104			210.9	%
Selling, general, and administrative expenses		(24,987	)		(1.147	)%		(10,228	)		(0.614	)%	$	14,759			144.3	%
Interest income		5,234			0.240	%		3,269			0.196	%	$	1,965			60.1	%
Interest expense		(5,200	)		(0.239	)%		(3,585	)		(0.215	)%	$	1,615			45.0	%
Earnings from equity method investments		1,648			0.076	%		4,486			0.269	%	$	(2,838	)		(63.3	%)
Other income, net		176			0.008	%		293			0.018	%	$	(117	)		(39.9	%)
Unrealized gains on foreign exchange		2			0.000	%		99			0.006	%	$	(97	)		(98.0	%)
Net income before provision for income taxes		64,004			2.938	%		22,361			1.342	%	$	41,643			186.2	%
Income tax expense		(12,933	)		(0.594	)%		(4,036	)		(0.242	)%	$	8,897			220.4	%
Net income		51,071			2.344	%		18,325			1.100	%	$	32,746			178.7	%
Net income attributable to non-controlling interests		66			0.003	%		499			0.030	%	$	(433	)		(86.8	%)
Net income attributable to the Company	$	51,005			2.341	%	$	17,826			1.070	%	$	33,179			186.1	%
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:
Per Share Data:
Basic	$	4.57					$	2.53					$	2.04			80.6	%
Diluted	$	4.28					$	2.49					$	1.79			71.9	%

Overview of Results of Operations for the Three Months Ended June 30, 2021 and March 31, 2021

Consolidated Results of Operations

The operating results of our business for the three months ended June 30, 2021 and March 31, 2021 are as follows:

*in thousands, except per share data*
	Three Months Ended
	June 30, 2021						March 31, 2021						$			%
	$			% of revenue			$			% of revenue			Increase/ (decrease)			Increase/ (decrease)
Revenues	$	2,178,666			100.000	%	$	2,049,489			100.000	%	$	129,177			6.3	%
Gross profit		87,131			3.999	%		68,171			3.326	%	$	18,960			27.8	%
Selling, general, and administrative expenses		(24,987	)		(1.147	)%		(14,783	)		(0.721	)%	$	10,204			69.0	%
Interest income		5,234			0.240	%		4,724			0.230	%	$	510			10.8	%
Interest expense		(5,200	)		(0.239	)%		(5,335	)		(0.260	)%	$	(135	)		(2.5	%)
Earnings from equity method investments		1,648			0.076	%		7,411			0.362	%	$	(5,763	)		(77.8	%)
Other income, net		176			0.008	%		339			0.017	%	$	(163	)		(48.1	%)
Remeasurement gain on pre-existing equity interest		—			—			26,306			1.3	%	$	(26,306	)		(100.0	%)
Unrealized gains (losses) on foreign exchange		2			0.000	%		(53	)		(0.003	)%	$	55			103.8	%
Net income before provision for income taxes		64,004			2.938	%		86,780			4.234	%	$	(22,776	)		(26.2	%)
Income tax expense		(12,933	)		(0.594	)%		(9,847	)		(0.480	)%	$	3,086			31.3	%
Net income		51,071			2.344	%		76,933			3.754	%	$	(25,862	)		(33.6	%)
Net income attributable to non-controlling interests		66			0.003	%		308			0.015	%	$	(242	)		(78.6	%)
Net income attributable to the Company	$	51,005			2.341	%	$	76,625			3.739	%	$	(25,620	)		(33.4	%)
Basic and diluted net income per share attributable to A-Mark Precious Metals, Inc.:
Per Share Data:
Basic	$	4.57					$	9.54					$	(4.97	)		(52.1	%)
Diluted	$	4.28					$	8.84					$	(4.56	)		(51.6	%)

A-MARK PRECIOUS METALS, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures

Reconciliation of net income to Adjusted Net Income before Provision for income taxes:

*in thousands*
	Years ended
	June 30, 2021								June 30, 2020						$				%
	$			% of revenue				$			% of revenue			Increase/ (decrease)				Increase/ (decrease)
Revenues	$	7,613,015			100.00		%	$		5,461,094		100.00	%	$		2,151,921				39.4		%

Net income before provision for income taxes	$	192,801			2.533		%	$		37,878		0.694	%	$		154,923				409.0		%
Adjustments:
Remeasurement gain on pre-existing equity interest	$	(26,306	)		(0.346	)	%	$		—		—				26,306				—		%
Acquisition costs		2,576			0.034		%			—		—				2,576				—		%
Amortization of acquired intangibles		9,341			0.123		%			1,028		0.019	%	$		8,313				808.7		%
Depreciation expense		1,447			0.019		%			1,872		0.034	%	$		(425	)			(22.7	)	%
Adjusted net income before provision for income taxes (Non-GAAP)	$	179,859			2.363		%	$		40,778		0.747	%	$		139,081				341.1		%

*in thousands*
	Three Months Ended
	June 30, 2021					June 30, 2020					$			%
	$		% of revenue			$		% of revenue			Increase/ (decrease)			Increase/ (decrease)
Revenues	$	2,178,666		100.00	%	$	1,665,768		100.00	%	$	512,898			30.8		%

Net income before provision for income taxes	$	64,004		2.938	%	$	22,361		1.342	%	$	41,643			186.2		%
Adjustments:
Amortization of acquired intangibles	$	7,882		0.362	%	$	260		0.016	%	$	7,622			2,931.5		%
Depreciation expense		412		0.019	%		423		0.025	%	$	(11	)		(2.6	)	%
Adjusted net income before provision for income taxes (Non-GAAP)	$	72,298		3.32	%	$	23,044		1.383	%	$	49,254			213.7		%