PVH Corp. Completes Sale of Heritage Brands to Authentic Brands Group

PVH Corp. Completes Sale of Heritage Brands to Authentic Brands Group

Transaction includes IZOD, VAN HEUSEN, ARROW and Geoffrey Beene

NEW YORK–(BUSINESS WIRE)–
PVH Corp. [NYSE: PVH] , parent company of Calvin Klein and TOMMY HILFIGER, announced today it has completed its previously announced sale of certain intellectual property and other assets of its Heritage Brands business to Authentic Brands Group (ABG). The cash purchase price for the transaction, which includes the IZOD, Van Heusen, ARROW and Geoffrey Beene trademarks and certain related inventories and other assets, was $223 million, subject to adjustment.

Stefan Larsson, Chief Executive Officer, PVH Corp., commented, “PVH is entering a new growth chapter, executing against our accelerated recovery priorities and with clear focus on unlocking the full potential of our iconic, global growth brands, Calvin Klein and TOMMY HILFIGER. We also believe that ABG is well positioned to further develop and support our former Heritage Brands for future success.”

Mr. Larsson continued: “On behalf of PVH, I want to thank everyone who has been a part of the Heritage Brands team over the years, helping us become the strong, global company we are today.”

PVH will continue to own and operate the intimates and underwear businesses, led by Warner’s, as well as continue to operate its dress shirt and neckwear business, including under the brands being sold pursuant to a license from ABG.

PJ Solomon is serving as exclusive financial advisor to PVH on the transaction. Wachtell, Lipton, Rosen & Katz is acting as legal advisor.

About PVH Corp.

PVH is one of the world’s largest and most admired fashion companies, connecting with consumers in over 40 countries. Our global iconic brands include Calvin KleinandTOMMY HILFIGER. Our 140-year history is built on the strength of our brands, our team and our commitment to drive fashion forward for good. That’s the Power of Us. That’s the Power of PVH.

Follow us on Facebook, Instagram, Twitter and LinkedIn.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release, including, without limitation, statements relating to PVH Corp.’s (the “Company”) future plans objectives, expectations and intentions are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not be anticipated, including, without limitation, (i) the Company’s plans, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) potential adverse reactions or changes to business relationships resulting from the completion of the transaction; (iii) unexpected costs, charges or expenses resulting from the transaction; (iv) litigation relating to the transaction; (v) the Company may be considered to be highly leveraged and uses a significant portion of its cash flows to service its indebtedness, as a result of which the Company might not have sufficient funds to operate its businesses in the manner it intends or has operated in the past; and (vi) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

PVH Corp.

Cindy Leggett-Flynn

EVP, Global Communication

908-255-7159 (m)

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Retail Department Stores Other Retail Fashion

MEDIA:

Logo
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CareTrust REIT Acquires Two Austin Skilled Nursing Facilities

SAN CLEMENTE, Calif., Aug. 02, 2021 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (Nasdaq: CTRE) today announced the acquisition of two skilled nursing facilities in the Austin, Texas metropolitan area. The 119-bed Sedona Trace Health & Wellness Center in Austin and the 122-bed Cedar Pointe Health & Wellness Center in Cedar Park will be operated by affiliates of The Ensign Group, Inc. (Nasdaq: ENSG), which took over operations effective August 1, 2021.

“We are elated to grow our relationship with Ensign not only because we enjoy over 3.0x EBITDAR lease coverage with them, but because we have seen firsthand their capability to create an unparalleled culture of patient care and quality outcomes and we are excited to see these facilities blossom under their stewardship,” explained CareTrust’s President and Chief Operating Officer, Dave Sedgwick.

Barry Port, Ensign’s Chief Executive Officer, added, “We are again thrilled with our growing relationship with CareTrust and are excited to announce that, in connection with this transaction, CareTrust extended the applicable lease term by ten years. We continue to look forward to many more years of working together with CareTrust on these and future opportunities.”

The two assets, which were both constructed in 2017, were purchased from the original developer in an off-market transaction for approximately $32.5 million inclusive of transaction costs. At closing, the two properties were added to one of the eight existing staggered-term master lease pools between CareTrust and Ensign. Ensign made an upfront rent reduction payment of $5.0 million at closing, and annual cash rent under the master lease was increased by approximately $2.2 million, resulting in a first-year cash-on-cash yield to CareTrust of approximately 8.0%. The initial term of the amended master lease was simultaneously extended by ten years, for a remaining initial term of approximately 17 years, with three five-year renewal options and CPI-based annual rent escalators. The acquisition was funded using CareTrust’s $600 million unsecured revolving credit facility.


About CareTrust™

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.


About Ensign™

The Ensign Group, Inc.’s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 242 healthcare facilities, in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.


Contact Information

CareTrust REIT, Inc.
(949) 542-3130
[email protected]



AB Value Calls for Immediate Board and Governance Changes at Rocky Mountain Chocolate Factory

AB Value Calls for Immediate Board and Governance Changes at Rocky Mountain Chocolate Factory

Scrutinizes Changes Described in Company’s July 21st Press Release Apparently Made Without Formal Board Meeting or Approval

Raises Serious Concerns About Lack of Full Disclosure About Former Director Capdevielle’s Resignation

Reveals CEO Bryan Merryman Served as Best Man of Director and Compensation Committee Chair, Brett Seabert; Questions Director Seabert’s Independence

WESTFIELD, N.J.–(BUSINESS WIRE)–
AB Value Management LLC, together with its affiliates (“AB Value”), one of the largest shareholders of Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) (the “Company”), owning approximately 7.51% of the outstanding shares, today commented on a number of recent announcements by the Company that, in AB Value’s view, raise serious additional concerns about the Company’s Board of Directors (the “Board”) poor governance and management, which continue to harm shareholders.

Andrew Berger, Managing Member of AB Value, commented: “The Company has ignored virtually all of my input on governance during my first year and a half serving on the Board. After AB Value and other shareholders separately demanded significant changes in June, a majority of the Board appeared to have embraced these demands. Unfortunately, instead of negotiating in good faith to avoid a costly and distracting proxy fight, the Board wasted 35 days of shareholders’ time and capital.1 During this time, a majority of the Board has, in AB Value’s view, demonstrated poor judgment and governance practices.”

The following summarizes recent events that, in AB Value’s opinion, should cause shareholders of the Company to demand expedited changes to the Board:

The Company’s Press Release on July 21st about Board and Management Changes (the “July Announcement”) in AB Value’s View Fails to Disclose Material Facts and was Not Authorized by the Full Board

  • Mr. Berger, who continues to serve as a director on the Board, received no notice of a Board meeting or any request for Board action with respect to the management and Board compositional changes contemplated by the July Announcement. In addition, Mr. Berger never approved of, or saw in advance, the press release for the July Announcement even though it purports to speak on behalf of a unanimous Board. In AB Value’s view, the subject matter of the July Announcement was of such significance that, under both Delaware law and common business norms, it should have been preceded by a formal Board meeting and formal Board action.
  • The July Announcement omits that, more than one month earlier, AB Value suggested to the Board that the Chairperson and CEO roles be separated, that a management transition should commence immediately and that legacy directors needed to step down. Leading up to the July Announcement, AB Value had been misled by the Company into believing a reasonable settlement could be reached using AB Value’s suggestions as a foundation. Instead, the Company disavowed terms suggested by members of management and issued the July Announcement on the same day AB Value was led to believe the Board would be giving final comments to an already heavily negotiated settlement agreement.
  • Indeed, the July Announcement makes no reference to the fact that the announced changes were in direct reaction to input from AB Value. A majority of the Board, therefore, appears to wish to take credit for matters which, to our knowledge, they never gave serious consideration absent Mr. Berger’s advocacy as a director and recent public pressure from large shareholders.

The Company’s Recent Announcement About Former Director Capdevielle’s Resignation (the “Capdevielle Announcement”) is Misleading and Incomplete

  • On July 24, 2021, AB Value disclosed to the Board what AB Value viewed to be highly inappropriate public statements on social media by former director, Scott Capdevielle about certain religious denominations. AB Value thus demanded Mr. Capdevielle’s resignation from the Board. The Company failed to include this background information – which AB Value believes is material under any standard – in the Capdevielle Announcement.
  • AB Value welcomed Mr. Capdevielle’s resignation from the Board on July 26, 2021. However, shareholders should question the judgment of the Board members that installed him as chair of the Nominating Committee and that oversaw a management team that permitted him to become a franchisee of the Company’s frozen yogurt brands a number of years ago.
  • Mr. Capdevielle’s public statements lacked alignment with the Company’s Code of Conduct and core values (as stated by the Company in the Capdevielle Announcement). Shareholders should therefore also be on high alert about the majority of the directors that recently proposed that he serve as co-Chairperson of the Board as part of a settlement agreement with AB Value.

Shareholders Should Question the Validity of Director Seabert’s Independence

  • In the eighteen months of Mr. Berger’s tenure on the Board, neither the Company, nor Director Brett Seabert, nor Director/CEO Bryan Merryman ever revealed that Mr. Merryman also served as the Best Man at Mr. Seabert’s wedding. It was only from the attached newspaper clipping that AB Value learned of this close—and, until very recently, undisclosed—intimate connection between Mr. Seabert, who has served as the chair of the Compensation Committee since 2019, and the Company’s CEO. The wedding announcement from the Reno Gazette-Journal may be found here: https://www.newspapers.com/clip/52304131/reno-gazette-journal/
  • The Company’s lack of transparency more generally calls into question the independence of the Board, which has already been sharply criticized by proxy advisory firms in part because director Franklin Crail, a non-independent director and former executive to whom Mr. Merryman reported, also serves on the Compensation Committee contrary to what the NASDAQ Listing Rules would prescribe absent exceptional and limited circumstances.
  • Given the number of issues surrounding the Board’s independence, shareholders should, in AB Value’s opinion, be suspicious of how much actual independent, objective judgment was exercised when Mr. Merryman’s employment agreement, including lucrative change of control provisions, was entered into and approved in 2019 by the Board’s Compensation Committee. At the time (and as recently as of last week), the Compensation Committee was comprised of (i) Mr. Merryman’s former boss, (ii) Mr. Seabert, at whose wedding Mr. Merryman served as Best Man, and (iii) Mr. Capdevielle, who appears to have received a large consulting payment around the same time as the approval of Mr. Merryman’s employment agreement.2 It should hardly come as surprise, therefore, that a majority of shareholders that voted at the last annual meeting withheld or abstained on an advisory vote on the compensation of the Company’s named executive officers, including that of Mr. Merryman.

AB Value believes that shareholders should be shocked to learn of the foregoing instances of poor governance and stewardship by a majority of the Board. These actions have derailed AB Value’s efforts to negotiate a constructive solution with the Company. AB Value believes the terms it had been insisting on as part of a settlement would have helped to resolve many of these longstanding issues.

Shareholders should be concerned that the Company will never undergo the level of change that, in AB Value’s opinion, is truly necessary until the Board is reconstituted with a majority of shareholder-approved independent directors. In fact, shareholders appear have been voicing their concerns as well – directors Merryman, Crail and Seabert received approximately 36% – 48% votes against their re-election at the Company’s last annual meeting of shareholders. Along with previous years of poor vote results, they appear to lack sufficient objective mandate from shareholders to have any input into the critical changes required to re-position the Company.

AB Value is eager to continue to provide the catalyst for much needed change at the Company starting in the boardroom and looks forward to engaging with shareholders on these very important topics leading up to the Annual Meeting.

Important Additional Information

AB Value Partners, LP, AB Value Management LLC, Andrew T. Berger, Rhonda J. Parish, Mark Riegel, Sandra Elizabeth Taylor, and Mary Kennedy Thompson (collectively, the “Participants”) intend to file a preliminary proxy statement and an accompany form of proxy card with the SEC to solicit proxies from shareholders of the Company for use at the Annual Meeting. THE PARTICIPANTS STRONGLY ADVISE ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Such proxy materials will be available at no charge on the SEC’s website at http://www.sec.gov. In addition, the Participants in this proxy solicitation will provide copies of the proxy statement without charge, upon request. Requests for copies should be directed to the Participants’ proxy solicitor.

Certain Information Regarding the Participants

In accordance with Rule 14a-12(a)(1)(i) under the Securities Exchange Act of 1934, as amended, the Participants in the proxy solicitation are: AB Value Partners, LP, AB Value Management LLC, Andrew T. Berger, Rhonda J. Parish, Mark Riegel, Sandra Elizabeth Taylor, and Mary Kennedy Thompson. As of the date hereof, AB Value Partners, LP directly owns 224,855 shares of common stock, $0.01 par value per share of the Company (“Common Stock”). As of the date hereof, AB Value Management LLC directly owns 235,334 shares of Common Stock. As of the date hereof, Ms. Thompson directly owns 2,000 shares of Common Stock. As of the date hereof, none of Mr. Berger, Ms. Parish, Mr. Riegel, or Ms. Taylor directly own any shares of Common Stock. However, by virtue of the relationship among the Participants and the formation by them of a Section 13(d) group, all the Participants, individually, are deemed to beneficially own the 460,189 shares of Common Stock owned in the aggregate by AB Value Partners, LP and AB Value Management LLC.


1 Calculated based on June 28, 2021, the date on which AB Value submitted its notice of intent to nominate directors at the Company’s 2021 Annual Meeting of Shareholders (the “Annual Meeting”).

2 The Compensation Committee awarded Mr. Capdevielle compensation totaling $86,390 for his service during fiscal year 2020, and approved an equity grant to Mr. Capdevielle with a grant date fair value of $91,900 for a special project related to brand vision and opportunities. See the Company’s definitive proxy statement, filed with the Securities and Exchange Commission (the “SEC”) on August 13, 2020.

John Glenn Grau

InvestorCom LLC

(203) 295-7841

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Retail Professional Services Food/Beverage Finance

MEDIA:

Otter Tail Corporation Announces Second Quarter Earnings and Increases 2021 Earnings Per Share Guidance

Otter Tail Corporation Announces Second Quarter Earnings and Increases 2021 Earnings Per Share Guidance

Board of Directors Declares Quarterly Dividend of $0.39 Per Share

FERGUS FALLS, Minn.–(BUSINESS WIRE)–
Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2021.

SUMMARY

Compared to the quarter ended June 30, 2020:

  • Consolidated operating revenues increased 48.2% to $285.6 million.
  • Consolidated net income increased 147.7% to $42.1 million primarily driven by strong Plastics segment performance resulting from unique market conditions.
  • Diluted earnings per share increased 140.5% to $1.01 per share.

The corporation increases its 2021 diluted earnings per share guidance range to $3.50 to $3.65 reflecting a range of 50% to 56% growth off of 2020 reported $2.34 diluted earnings per share.

CEO OVERVIEW

“Otter Tail Corporation, through the efforts of our employees and unique market conditions, achieved outstanding financial results during the second quarter of 2021,” said President and CEO Chuck MacFarlane. “Each operating company improved net income during the second quarter compared with the same period a year ago. The Electric segment had a record second quarter in net earnings. The Plastics segment continues its outstanding year driven by PVC resin supply constraints, which initially occurred in the first quarter and continued through the second quarter, have resulted in continued increasing PVC pipe prices and margins at levels not previously experienced. These increased results are primarily due to the unusual and infrequent impact resulting from the extreme cold weather in February that caused resin suppliers to temporarily close various petrochemical plants in the Gulf Coast. We expect these conditions will moderate during 2022 as supply constraints are expected to continue for the remainder of 2021.

“On May 27, 2021 we retired our 140-megawatt (MW) Hoot Lake Plant marking the end of 100 years of coal-fired generation at the site. Our employees did a fantastic job operating this facility reliably and safely up to its retirement. Our replacement generation includes Merricourt, our 150 MW wind facility, and Astoria Station, our 245 MW natural gas-fired combustion turbine generation facility, which was made available to the MISO market on April 30, 2021. This facility, with fast start capability, complements our wind generation with more dispatchable capacity than Hoot Lake Plant, and with projected carbon emissions 85 percent less compared to Hoot Lake Plant’s 2005 emission levels.

“We continue to make progress on Otter Tail Power’s $60.0 million, 49.9 MW Hoot Lake Solar project, which will be constructed on and near Hoot Lake Plant property in Fergus Falls, Minnesota. We recently received approval of our Conditional Use Permit, which is our last major permit requirement. We received a favorable regulatory order from the Minnesota Public Utilities Commission (MPUC) when they approved the project in March with 100 percent allocation of costs and benefits to Minnesota customers and eligibility for recovery through the Minnesota renewable rider. The location of Hoot Lake Solar offers us a unique opportunity to re-use our existing Hoot Lake transmission rights, substation and land.

“Based on our current dispatch levels of Big Stone Plant and Coyote Station our target is to reduce carbon emissions from our owned generation resources approximately 50 percent from 2005 levels by 2025 and 97 percent by 2050. Up to 35 percent of our energy is projected to come from renewable resources by 2023.

“We continue to work through the Minnesota rate case, and on January 1, 2021, Otter Tail Power implemented approved interim rates in Minnesota in connection with its revenue increase request filed with the MPUC in November 2020. Investment in cleaner energy generation and smarter technologies are primarily driving this request along with rising costs for providing electric service. In a filing submitted to the MPUC on April 30, 2021, Otter Tail Power lowered its requested net annual revenue increase from its initial request of $14.5 million to $8.2 million, primarily due to a reduction in operating costs from amounts included in its November 2020 filing. The cost reductions result primarily from lower depreciation expense on our wind generation assets due to the extension of depreciable lives from 25 to 35 years that was approved by the MPUC and a reduction in postretirement benefit costs. We anticipate a decision from the Minnesota Public Utilities Commission in the fourth quarter.

“Otter Tail Power continues to benefit from strong rate base growth investments. These investments represent over 85 percent of our total capital spending over the next five years and include regulated investments in renewable generation, technology and infrastructure, and transmission assets. We expect this to result in a projected compounded annual growth rate of approximately 5 percent in utility rate base from year-end 2020 through 2025 and to deliver value to customers and shareholders. We continue to make system investments to meet our customers’ expectations, reduce operating and maintenance costs, reduce emissions and improve reliability and safety.

“Otter Tail Power is planning to file its Minnesota Integrated Resource Plan in all three of its jurisdictions in September 2021. We expect this filing will result in additional capital expenditures that will be incremental to our current five-year capital expenditure plan.

“Our Manufacturing Segment increased revenues and net income $38.3 million and $5.5 million, respectively, compared to the second quarter of 2020, due to strong end market demand and higher scrap metal sales prices at BTD Manufacturing. Steel prices, which are a pass through to customers, continue to exceed historical levels as mill capacity has been slow to come online after capacity reductions in 2020 related to COVID-19, creating supply chain challenges as the mills struggle to keep up with demand.

“Our Plastics Segment produced a 339% increase in quarterly earnings in the second quarter of 2021. PVC resin availability in the first quarter was constrained due to the impact of the February winter storms. These supply constraints continued into the second quarter and led to increased sales prices for PVC pipe, increased resin costs and increased operating margins resulting in a record second quarter.

“Our long-term focus remains on executing our growth strategies. For the utility, our strategy is to continue to invest in rate base growth opportunities and drive efficiency within our operating and maintenance expenses, which will lower our overall risk, create a more predictable earnings stream, maintain our credit quality and preserve our ability to pay dividends. Over time, we expect the electric utility business will provide approximately 70 to 75 percent of our overall earnings.

“The utility is complemented by well-run, strategic manufacturing and plastic pipe businesses, which provide organic growth opportunities from new products and services, market expansion and increased efficiencies. We expect these companies will provide approximately 25 to 30 percent of our earnings over the long term.

“We are increasing our 2021 earnings per share guidance to a range of $3.50 to $3.65 from our previous range announced in May 2021 of $2.47 to $2.62.”

QUARTERLY DIVIDEND

On August 2, 2021 the corporation’s Board of Directors declared a quarterly common stock dividend of $0.39 per share. This dividend is payable September 10, 2021 to shareholders of record on August 13, 2021.

CASH FLOWS AND LIQUIDITY

Our consolidated cash provided by operating activities for the six months ended June 30, 2021 was $68.6 million compared with $73.9 million for the six months ended June 30, 2020.

Investing activities for the six months ended June 30, 2021 included capital expenditures of $76.9 million compared with $119.8 million for the six months ended June 30, 2020. The decrease in capital expenditures was primarily related to Astoria Station and the Merricourt Wind Energy Center (Merricourt) being under construction in the first and second quarters of 2020 with the capital spend being substantially complete for both projects by year-end 2020.

Financing activities for the six months ended June 30, 2021 included net proceeds from short-term borrowings of $47.0 million and common dividend payments of $32.4 million. The proceeds from short-term borrowings were primarily used to fund construction expenditures. Financing activities for the six months ended June 30, 2020 included proceeds of $35.0 million from the issuance of long-term debt at Otter Tail Power Company, $35.2 million in net short-term borrowings, and $27.2 million from the issuance of common stock. Proceeds from the debt and equity issuances were used to fund construction program expenditures in 2020. We paid $29.9 million in common dividends during the six months ended June 30, 2020.

On June 10, 2021, we completed a senior unsecured note offering pursuant to which we agreed to issue $230.0 million of Otter Tail Power Company senior unsecured notes, with $140.0 million to be issued in November 2021 and $90.0 million to be issued in May 2022. We intend to use the proceeds of the notes to refinance existing long-term indebtedness, including long-term debt instruments with outstanding principal balances of $140.0 million and $30.0 million, which mature in December 2021 and August 2022, respectively, and for general corporate purposes.

The following table presents the status of the corporation’s lines of credit at June 30, 2021 and December 31, 2020:

 

 

 

2021

 

2020

(in thousands)

Line Limit

 

 

Amount

Outstanding

 

 

Letters

of Credit

 

 

Amount

Available

 

 

Amount

Available

 

Otter Tail Corporation Credit Agreement

$

170,000

 

 

$

59,245

 

 

$

 

 

$

110,755

 

 

$

104,834

 

Otter Tail Power Company Credit Agreement

170,000

 

 

68,712

 

 

12,671

 

 

88,617

 

 

140,068

 

Total

$

340,000

 

 

$

127,957

 

 

$

12,671

 

 

$

199,372

 

 

$

244,902

 

Both credit agreements are in place until October 31, 2024.

 

SEGMENT PERFORMANCE

 

Electric Segment

 

 

Three Months Ended June 30,

 

 

 

 

($ in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Retail Revenues

$

88,987

 

 

$

85,553

 

 

$

3,434

 

 

4.0

%

Transmission Services Revenues

11,840

 

 

9,673

 

 

2,167

 

 

22.4

 

Wholesale Revenues

3,260

 

 

765

 

 

2,495

 

 

326.1

 

Other Electric Revenues

2,068

 

 

2,162

 

 

(94

)

 

(4.3

)

Total Electric Revenues

106,155

 

 

98,153

 

 

8,002

 

 

8.2

 

Net Income

$

15,433

 

 

$

13,306

 

 

$

2,127

 

 

16.0

%

 

 

 

 

 

 

 

 

Retail mwh Sales

1,086,631

 

 

1,033,053

 

 

53,578

 

 

5.2

%

Heating Degree Days (HDDs)

533

 

 

635

 

 

(102

)

 

(16.1

)

Cooling Degree Days (CDDs)

237

 

 

170

 

 

67

 

 

39.4

 

 

 

 

 

 

 

 

 

The following table shows heating and cooling degree days as a percent of normal.

 

Three Months Ended June 30,

 

2021

 

 

2020

 

HDDs

101.1

%

 

122.1

%

CDDs

206.1

%

 

156.0

%

 

 

 

 

The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions in 2021 and 2020.

 

2021 vs

Normal

 

2021 vs

2020

 

2020 vs

Normal

Effect on Diluted Earnings Per Share

$

0.03

 

 

$

 

 

$

0.03

 

 

Retail Revenues increased $3.4 million primarily due to the following:

  • A $1.5 million increase in new retail revenues from an interim rate increase in Minnesota, net of estimated refunds, effective January 1, 2021 in connection with our rate case filed in November 2020.
  • A $1.5 million increase in retail revenue from commercial and industrial customers primarily due to increased demand as volumes improve from 2020, which was negatively impacted by COVID-19.
  • A $1.4 million increase in revenues primarily related to the recovery of Merricourt and Astoria Station project costs and operating expenses.
  • Recovery of increased conservation improvement program expenditures as well as increased transmission rider revenues.

These increases in revenue were partially offset by a $2.1 million decrease in fuel recovery revenues largely due to credits provided to customers from increased margins on wholesale sales.

Transmission Services Revenues increased $2.2 million primarily due to higher transmission volume from increased electrical demand as well as increased generator interconnection revenues.

Wholesale Revenues increased $2.5 million as a result of a 147.2% increase in wholesale sales volumes and a 72.4% increase in wholesale prices driven by high market demand for wholesale energy.

Production Fuel costsincreased $3.4 million mainly as a result of a 42.0% increase in kwhs generated from our fuel-burning plants due to higher demand and favorable prices for energy in wholesale markets.

Purchased Power costs to serve retail customers decreased $2.5 million primarily due to a 15.7% decrease in the volume of purchased power as our recent capacity additions provide additional generation resources to serve customer demand.

Operating and MaintenanceExpense increased $3.6 million mainly due to:

  • $1.4 million of Merricourt and Astoria Station operating and maintenance expenses incurred in the second quarter of 2021 as these facilities are now commercially operational.
  • A $0.8 million increase in transmission tariff expenses.
  • Other additional expenses including an increase in conservation improvement program expenditures, which are recovered through retail rates, increased vegetative maintenance expenses and plant maintenance expenses.

These expense increases were partially offset by, among other items, lower bad debt expense due to improving customer collections as the economic impact of COVID-19 has eased.

Depreciation and Amortization expense increased $2.4 million primarily due to Merricourt and Astoria Station being placed in service in the fourth quarter of 2020 and the first quarter of 2021, respectively.

Interest Charges increased $1.0 million primarily due to additional interest expense from a $40.0 million long-term debt issuance in August 2020, a higher level of short-term debt borrowings outstanding in 2021 and a lower level of capitalized interest due to the completion and placement in service of Astoria Station in the first quarter of 2021.

Other Income decreased $1.1 million driven by lower allowance for equity funds used during construction due to the completion of Astoria Station in the first quarter of 2021.

Income Tax Expense decreased $3.0 million due to earning production tax credits on Merricourt generation in 2021. The tax benefits of these credits are passed through to retail customers in each of our jurisdictions.

Manufacturing Segment

 

Three Months Ended June 30,

 

 

 

 

(in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Operating Revenues

$

84,284

 

 

$

45,948

 

 

$

38,336

 

 

83.4

%

Net Income

5,705

 

 

238

 

 

5,467

 

 

n/m

 

Manufacturing segment revenues and net income increased $38.3 million and $5.5 million, respectively, primarily due to increased sales volumes at BTD. Sales volumes in the second quarter of 2020 were negatively impacted by COVID-19 as customers implemented temporary plant shutdowns due to the pandemic. Customer demand and sales volumes in the second quarter of 2021 increased 52.4% compared to 2020 and included increases across all end markets. Also contributing to the improved financial performance was an increase in scrap revenues primarily due to increased scrap metal prices but also higher volumes, and improved gross profit margins resulting from an increase in production volumes. Operating revenues were also impacted by increased material costs, which are passed through to customers.

Partially offsetting the increase in net income from increased sales volumes, scrap revenues and gross profit margins is an increase in operating expenses, with second quarter of 2020 operating expenses impacted from initiatives taken to reduce our cost structure to mitigate the impact of declining sales volumes from the effects of the COVID-19 pandemic. Second quarter of 2021 operating expenses were impacted by increased incentive based compensation, travel and recruitment costs necessary to support higher business volumes.

Segment operating revenues and net income also benefited from increased product pricing and higher levels of horticulture sales at T.O. Plastics, along with increased gross profit margins resulting from higher production volumes.

Plastics Segment

 

Three Months Ended June 30,

 

 

 

 

(in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Operating Revenues

$

95,169

 

 

$

48,679

 

 

$

46,490

 

 

95.5

%

Net Income

22,544

 

 

5,130

 

 

17,414

 

 

339.5

 

Plastics segment revenues and net income increased $46.5 million and $17.4 million, respectively. The price per pound of polyvinyl chloride (PVC) pipe sold increased 73.9% in the second quarter of 2021 compared to the same period last year and exceeded the 52.9% increase in the cost of PVC resin and other input materials. The increase in sale prices was largely the result of continued PVC resin supply constraints as resin production facilities recover from plant shutdowns in the first quarter of 2021. The undersupply of resin has led to limited pipe inventory across the country. Significant global demand for PVC resin has also impacted PVC costs with export prices exceeding domestic prices in the second quarter. Pounds of pipe sold in the second quarter of 2021 increased 12.4% from the same period last year, as sales volumes in the second quarter of 2020 were negatively impacted by COVID-19 as distributors reduced inventory levels due to the uncertainty over the impact of the pandemic.

Corporate Costs

 

Three Months Ended June 30,

 

 

 

 

(in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Losses before Income Taxes

$

2,459

 

 

$

2,093

 

 

$

366

 

 

17.5

%

Income Tax Benefit

(846

)

 

(400

)

 

(446

)

 

111.5

 

Net Loss

$

1,613

 

 

$

1,693

 

 

$

(80

)

 

(4.7

)%

Our corporate net loss in 2021 was consistent with the same period last year as higher levels of performance based compensation and lower market-based gains on our corporate-owned life insurance policies in 2021 were offset by an increased income tax benefit. The increase in the income tax benefit is primarily the result of the impact of non-taxable transactions and changes in estimates of our annual effective tax rate.

2021 BUSINESS OUTLOOK

We are increasing our 2021 diluted earnings per share guidance range to $3.50 to $3.65 in light of second quarter results and forecasts for the remainder of 2021 driven by expected performance in our Plastics Segment. The midpoint of our revised 2021 earnings per share guidance of $3.58 per share reflects a 53% growth rate off 2020 diluted earnings per share of $2.34.

Segment components of our revised 2021 diluted earnings per share guidance range compared with 2020 actual earnings and prior guidance are as follows:

 

2020 EPS

by Segment

 

2021 EPS Guidance

February 15, 2021

 

2021 EPS Guidance

May 3, 2021

 

2021 EPS Guidance

August 2, 2021

 

 

Low

 

High

 

Low

 

High

 

Low

 

High

Electric

$

1.63

 

 

$

1.80

 

 

$

1.83

 

 

$

1.71

 

 

$

1.74

 

 

$

1.71

 

 

$

1.74

 

Manufacturing

0.27

 

 

0.28

 

 

0.32

 

 

0.28

 

 

0.32

 

 

0.43

 

 

0.47

 

Plastics

0.67

 

 

0.52

 

 

0.56

 

 

0.73

 

 

0.77

 

 

1.64

 

 

1.68

 

Corporate

(0.23

)

 

(0.21

)

 

(0.17

)

 

(0.25

)

 

(0.21

)

 

(0.28

)

 

(0.24

)

Total

$

2.34

 

 

$

2.39

 

 

$

2.54

 

 

$

2.47

 

 

$

2.62

 

 

$

3.50

 

 

$

3.65

 

Return on Equity

11.6

%

 

11.1

%

 

11.8

%

 

11.5

%

 

12.2

%

 

16.4

%

 

17.1

%

The following items contribute to our 2021 earnings guidance:

  • We are maintaining our Electric segment guidance from our May 3, 2021 earnings release.
  • We continue to expect Electric segment earnings in 2021 will exceed 2020 earnings driven by the following factors:

    • Our Merricourt and Astoria Station projects being commercially operational and our $410 million total investment in these projects fully reflected in our rate base, with a recovery mechanism in place in all three jurisdictions, partially offset by increased operating and maintenance, depreciation and property tax expenses associated with these investments, and increased interest expense due to debt issuances in 2020.
    • The impact of our filed Minnesota 2021 rate case. The MPUC has approved an interim rate increase of 3.2% or $6.9 million in annual revenues.

These increases are partially offset by:

  • Increased non-labor operating and maintenance expenses related to a planned outage this fall at Big Stone Plant of $3.9 million in 2021 and increased postretirement expense caused by a decrease in the discount rate and long-term rate of return on plan assets.
  • We are increasing our previous 2021 guidance for our Manufacturing segment and continue to expect segment earnings to increase compared with 2020 based on:

    • Strong performance at BTD through the first six months of the year driven by increased sales volumes across all end markets, improved scrap metal prices and improved operating margins resulting from an increase in production volumes. We expect these conditions to continue as end markets improve as our customers look to build inventory to fill the shortages created by the COVID-19 pandemic. Scrap metal revenues are now expected to be higher based on current scrap metal prices.
    • We also expect an increase in earnings from T.O. Plastics as compared to the previous guidance due to strong first half performance as well as strong horticulture markets and improving operating margins driven by product price increases implemented in the first six months as well as improved productivity in our manufacturing processes.
    • Decreased mill capacity due to COVID-19 has created raw material availability challenges as the steel mills struggle to keep up with demand. This has created concerns over our ability to obtain the steel needed to meet customer demands and continues to keep steel prices elevated above historic levels. We continue to work on increasing staffing levels to keep up with strong demand and to mitigate the impact of increasing expedited freight costs while maintaining or improving labor efficiencies.
    • Backlog for the manufacturing companies of approximately $168 million for 2021 compared with $93 million one year ago.
  • We are increasing our previous 2021 guidance for our Plastics segment as operating margins during the first six months have been higher than expected driven by unique market conditions resulting from PVC resin supply constraints that began in the first quarter. These unexpected conditions arose from the extreme cold weather in February which caused resin suppliers to temporarily close various petrochemical plants. These market conditions created by this event continued into the second quarter and are expected to impact the rest of 2021. This resulted in continued increases in PVC pipe prices and operating margins at levels not previously experienced in the industry. Pounds of pipe sold in 2021 are now expected to be slightly higher than 2020 driven by strong construction and municipal markets. Resin suppliers continued to have customers on resin allocations and increase prices for raw materials due to market conditions such as availability constraints related to feedstock supplies for resin and a strong export market that has higher resin prices than the domestic market. We currently expect the supply constraints to continue for the remainder of 2021 with market conditions expected to return to more normal levels during 2022.
  • Corporate costs, net of tax, are now expected to be higher driven by higher employee benefit costs related to the strong financial performance in 2021 and potential contributions to the Otter Tail Corporation Foundation.

CONFERENCE CALL AND WEBCAST

The corporation will host a live webcast on Tuesday, August 3, 2021, at 10:00 a.m. CDT to discuss its financial and operating performance.

The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.

If you are interested in asking a question during the live webcast, call 877-312-8789. For listen-only mode, call 866-634-1342.

FORWARD-LOOKING STATEMENTS

Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “possible,” “potential,” “should,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which include statements regarding 2021 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of the impact and duration of the COVID-19 pandemic, long-term investment risk, seasonal weather patterns and extreme weather events, counterparty credit risk, future business volumes with key customers, reductions in our credit ratings, our ability to access capital markets on favorable terms, assumptions and costs relating to funding our employee benefit plans, our subsidiaries’ ability to make dividend payments, cyber security threats or data breaches, the impact of government legislation and regulation, including foreign trade policy and environmental laws and regulations, the impact of climate change, including compliance with legislative and regulatory changes to address climate change, operational and economic risks associated with our electric generating and manufacturing facilities, risks associated with energy markets, the availability and pricing of resource materials, attracting and maintaining a qualified and stable workforce, and changing macroeconomic and industry conditions. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

Category: Earnings

About the Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.

 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per-share amounts)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

106,155

 

 

$

98,130

 

 

$

229,855

 

 

$

218,000

 

Product Sales

179,453

 

 

94,626

 

 

317,463

 

 

209,503

 

Total Operating Revenues

285,608

 

 

192,756

 

 

547,318

 

 

427,503

 

Operating Expenses

 

 

 

 

 

 

 

Electric Production Fuel

12,164

 

 

8,788

 

 

26,878

 

 

22,523

 

Electric Purchased Power

11,135

 

 

13,682

 

 

30,395

 

 

32,512

 

Electric Operating and Maintenance Expense

36,729

 

 

33,179

 

 

78,150

 

 

73,794

 

Cost of Products Sold (excluding depreciation)

122,578

 

 

73,832

 

 

224,555

 

 

159,711

 

Other Nonelectric Expenses

15,669

 

 

10,762

 

 

29,362

 

 

22,662

 

Depreciation and Amortization

23,169

 

 

20,436

 

 

45,295

 

 

40,835

 

Electric Property Taxes

4,342

 

 

4,168

 

 

8,662

 

 

8,268

 

Total Operating Expenses

225,786

 

 

164,847

 

 

443,297

 

 

360,305

 

Operating Income

59,822

 

 

27,909

 

 

104,021

 

 

67,198

 

Other Income and Expense

 

 

 

 

 

 

 

Interest Charges

9,555

 

 

8,662

 

 

18,953

 

 

16,785

 

Nonservice Cost Components of Postretirement Benefits

624

 

 

868

 

 

1,006

 

 

1,739

 

Other Income (Expense)

734

 

 

2,410

 

 

1,892

 

 

2,021

 

Income Before Income Taxes

50,377

 

 

20,789

 

 

85,954

 

 

50,695

 

Income Tax Expense

8,308

 

 

3,808

 

 

13,556

 

 

9,446

 

Net Income

$

42,069

 

 

$

16,981

 

 

$

72,398

 

 

$

41,249

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

Basic

41,500

 

 

40,513

 

 

41,478

 

 

40,365

 

Diluted

41,818

 

 

40,677

 

 

41,759

 

 

40,561

 

Earnings Per Share:

 

 

 

 

 

 

 

Basic

$

1.01

 

 

$

0.42

 

 

$

1.75

 

 

$

1.02

 

Diluted

$

1.01

 

 

$

0.42

 

 

$

1.73

 

 

$

1.02

 

 
 

OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)

 

(in thousands)

June 30,

2021

 

 

December 31,

2020

 

 

 

 

 

Assets

 

 

 

Current Assets

 

 

 

Cash and Cash Equivalents

$

1,480

 

 

$

1,163

 

Receivables, net of allowance for credit losses

163,424

 

 

113,959

 

Inventories

103,024

 

 

92,165

 

Regulatory Assets

23,250

 

 

21,900

 

Other Current Assets

13,723

 

 

5,645

 

Total Current Assets

304,901

 

 

234,832

 

Noncurrent Assets

 

 

 

Investments

55,809

 

 

51,856

 

Property, Plant and Equipment, net of accumulated depreciation

2,073,009

 

 

2,049,273

 

Regulatory Assets

160,018

 

 

168,395

 

Intangible Assets, net of accumulated amortization

9,594

 

 

10,144

 

Goodwill

37,572

 

 

37,572

 

Other Noncurrent Assets

30,684

 

 

26,282

 

Total Noncurrent Assets

2,366,686

 

 

2,343,522

 

Total Assets

$

2,671,587

 

 

$

2,578,354

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current Liabilities

 

 

 

Short-Term Debt

$

127,957

 

 

$

80,997

 

Current Maturities of Long-Term Debt

139,963

 

 

140,087

 

Accounts Payable

131,214

 

 

130,805

 

Accrued Salaries and Wages

23,775

 

 

26,908

 

Accrued Taxes

14,531

 

 

18,831

 

Regulatory Liabilities

17,301

 

 

16,663

 

Other Current Liabilities

28,743

 

 

22,495

 

Total Current Liabilities

483,484

 

 

436,786

 

Noncurrent Liabilities and Deferred Credits

 

 

 

Pensions Benefit Liability

102,331

 

 

114,055

 

Other Postretirement Benefits Liability

67,538

 

 

67,359

 

Regulatory Liabilities

231,766

 

 

233,973

 

Deferred Income Taxes

167,612

 

 

153,376

 

Deferred Tax Credits

17,033

 

 

17,405

 

Other Noncurrent Liabilities

62,160

 

 

60,002

 

Total Noncurrent Liabilities and Deferred Credits

648,440

 

 

646,170

 

Commitments and Contingencies

 

 

 

Capitalization

 

 

 

Long-Term Debt, net of current maturities

624,540

 

 

624,432

 

Shareholders’ Equity

 

 

 

Common Shares

207,694

 

 

207,349

 

Additional Paid-In Capital

417,870

 

 

414,246

 

Retained Earnings

297,850

 

 

257,878

 

Accumulated Other Comprehensive Loss

(8,291)

 

 

(8,507)

 

Total Shareholders’ Equity

915,123

 

 

870,966

 

Total Capitalization

1,539,663

 

 

1,495,398

 

Total Liabilities and Shareholders’ Equity

$

2,671,587

 

 

$

2,578,354

 

 
 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Six Months Ended June 30,

(in thousands)

2021

 

 

2020

 

 

 

 

 

Operating Activities

 

 

 

Net Income

$

72,398

 

 

$

41,249

 

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

 

 

 

Depreciation and Amortization

45,295

 

 

40,835

 

Deferred Tax Credits

(372

)

 

(657

)

Deferred Income Taxes

11,327

 

 

9,472

 

Change in Deferred Debits and Other Assets

5,749

 

 

5,565

 

Discretionary Contribution to Pension Plan

(10,000

)

 

(11,200

)

Change in Noncurrent Liabilities and Deferred Credits

(3,710

)

 

5,178

 

Allowance for Equity Funds Used During Construction

(172

)

 

(1,858

)

Stock Compensation Expense

5,524

 

 

4,007

 

Other, Net

(3,246

)

 

(147

)

Cash (Used for) Provided by Current Assets and Current Liabilities:

 

 

 

Change in Receivables

(49,465

)

 

(3,929

)

Change in Inventories

(10,859

)

 

8,097

 

Change in Other Current Assets

(8,080

)

 

(1,066

)

Change in Payables and Other Current Liabilities

12,375

 

 

(23,562

)

Change in Interest and Income Taxes Receivable/Payable

1,810

 

 

1,917

 

Net Cash Provided by Operating Activities

68,574

 

 

73,901

 

Investing Activities

 

 

 

Capital Expenditures

(76,891

)

 

(119,830

)

Proceeds from Disposal of Noncurrent Assets

4,562

 

 

3,953

 

Cash Used for Investments and Other Assets

(4,074

)

 

(5,128

)

Net Cash Used in Investing Activities

(76,403

)

 

(121,005

)

Financing Activities

 

 

 

Changes in Checks Written in Excess of Cash

(4,586

)

 

550

 

Net Short-Term Borrowings

46,960

 

 

35,239

 

Proceeds from Issuance of Common Stock

 

 

27,225

 

Common Stock Issuance Expenses

(67

)

 

(374

)

Payments for Shares Withheld for Employee Tax Obligations

(1,507

)

 

(2,069

)

Proceeds from Issuance of Long-Term Debt

 

 

35,000

 

Short-Term and Long-Term Debt Issuance Expenses

(59

)

 

(179

)

Payments for Retirement of Long-Term Debt

(169

)

 

(90

)

Dividends Paid

(32,426

)

 

(29,885

)

Net Cash Provided by Financing Activities

8,146

 

 

65,417

 

Net Change in Cash and Cash Equivalents

317

 

 

18,313

 

Cash and Cash Equivalents at Beginning of Period

1,163

 

 

21,199

 

Cash and Cash Equivalents at End of Period

$

1,480

 

 

$

39,512

 

 

OTTER TAIL CORPORATION

SEGMENT RESULTS (unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

106,155

 

 

$

98,130

 

 

$

229,855

 

 

$

218,000

 

Manufacturing

84,284

 

 

45,947

 

 

160,107

 

 

114,427

 

Plastics

95,169

 

 

48,679

 

 

157,356

 

 

95,076

 

Total Operating Revenues

$

285,608

 

 

$

192,756

 

 

$

547,318

 

 

$

427,503

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

Electric

$

23,632

 

 

$

22,596

 

 

$

50,309

 

 

$

49,516

 

Manufacturing

7,980

 

 

623

 

 

15,524

 

 

7,464

 

Plastics

30,530

 

 

7,090

 

 

43,116

 

 

14,557

 

Corporate

(2,320

)

 

(2,400

)

 

(4,928

)

 

(4,339

)

Total Operating Income

$

59,822

 

 

$

27,909

 

 

$

104,021

 

 

$

67,198

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

 

 

 

Electric

$

15,433

 

 

$

13,306

 

 

$

33,019

 

 

$

29,488

 

Manufacturing

5,705

 

 

238

 

 

11,089

 

 

5,165

 

Plastics

22,544

 

 

5,130

 

 

31,692

 

 

10,579

 

Corporate

(1,613

)

 

(1,693

)

 

(3,402

)

 

(3,983

)

Total Net Income

$

42,069

 

 

$

16,981

 

 

$

72,398

 

 

$

41,249

 

 

Media contact:

Stephanie Hoff, Director of Corporate Communications, (218) 739-8535 or (218) 205-6179

Investor contact:

Tyler Akerman, Manager of Investor Relations, (218) 998-7110 or (800) 664-1259

KEYWORDS: United States North America Minnesota

INDUSTRY KEYWORDS: Packaging Chemicals/Plastics Utilities Oil/Gas Manufacturing Energy Steel

MEDIA:

Ciner Resources LP Announces Second Quarter 2021 Financial Results

Ciner Resources LP Announces Second Quarter 2021 Financial Results

ATLANTA–(BUSINESS WIRE)–
Ciner Resources LP (NYSE: CINR) (“we”, “us, “our”, or the “Partnership”) today reported its financial and operating results for the quarter ended June 30, 2021.

Second Quarter 2021 Financial Highlights:

  • Net sales of $120.7 million increased 58.4% from the prior-year second quarter; year-to-date of $248.5 million increased 30.4% over the prior year. During the second quarter of 2020, the Partnership experienced a significant decline in sales volumes, production and pricing in response to COVID-19. During the second quarter of 2021, the Partnership sees continuing recovery from the COVID-19 pandemic.
  • Soda ash volume produced increased 45.0% from the prior-year second quarter, and soda ash volume sold increased 52.5% from the prior-year second quarter; year-to-date soda ash volume produced increased 15.2% from the prior-year, and soda ash volume sold increased 25.7% from the prior-year. During the second quarter of 2020, the Partnership experienced a significant decline in production volumes and demand in response to COVID-19. During the second quarter of 2021, the Partnership sees continuing recovery from the COVID-19 pandemic resulting in more soda ash production.
  • Net income of $6.8 million increased $12.2 million from the prior-year second quarter; year-to-date net income of $12.4 million increased $3.6 million over the prior year. During the second quarter of 2021, net income increased with a higher percentage than that of sales volumes because sales prices have partially recovered but not yet to the pre-pandemic levels.
  • Adjusted EBITDA of $16.3 million increased 482.1% from the prior-year second quarter; year-to-date adjusted EBITDA of $32.0 million increased 27.0% over the prior year. During the second quarter of 2020, sales and production volumes decreased significantly as a result of COVID-19.
  • Basic earnings per unit of $0.15 for the quarter increased 188.2% over the prior-year second quarter loss per unit of $0.17; year-to-date basic earnings per unit of $0.27 increased 58.8% over the prior-year.
  • Net cash provided by operating activities of $24.8 million increased 71.0% over prior-year second quarter; year-to-date net cash provided by operating activities of $18.4 million decreased 41.0% over the prior year.
  • Distributable cash flow of $1.5 million increased 207.1% compared to the prior-year second quarter; year-to-date distributable cash flow of $6.2 million decreased 18.4% over the prior year.

Oguz Erkan, CEO, commented: Ciner Resources’ second quarter performance marked another milestone in the path to recovery from the substantial disruption to soda ash markets a year ago. Production levels were in line with our expectation of a typical second quarter, during which we conduct a major planned maintenance outage. Sales volumes in the second quarter were up over 50% from Q2 of 2020, which to date has represented the trough of the downturn in soda ash demand during the COVID-19 pandemic.

A year later, we continue to see strengthening demand internationally, although recent increases in COVID-19 cases in many areas may pose a risk to this trend. Sales prices globally are steadily rising due to a tightening market and higher costs. However, historically high ocean freight rates due to high demand and low availability of vessels are impacting exporters’ profitability. As some quarterly contracts in key export markets reprice over the coming months, we are optimistic around continued sales price recovery and favorable margin impact.

In light of these market factors, we saw firm improvement in our results compared to the first quarter of this year. Net income grew 21% to $6.8 million and adjusted EBITDA improved to $16.3 million in the second quarter of 2021, while revenue fell slightly to $120.7 million as a result of timing of bulk export shipments, lower production volumes and changes in sales mix. A $13.5 million improvement in adjusted EBITDA from the prior year quarter has improved our trailing twelve month leverage calculation, reducing our leverage below 2.0x. We continue to evaluate the appropriate timing to reinstate a distribution to our unitholders particularly in light of our improved results when compared to last year. Given the desire to better ensure financial flexibility and sufficient liquidity in the face of continued uncertainty caused by the COVID-19 and related new variants we have decided to continue the cessation for the second quarter of 2021.

As we continue to evolve our export strategy and execute on global supply chain initiatives, we have had success developing our distribution network and building international relationships through the first half of the year. Indicators point to continued demand growth, as global consumption has nearly normalized to pre-COVID levels and soda ash demand continues to track broader economic growth going forward. As always, I want to thank our team for their continued efforts and support of our transition period and applaud our operations team for another safe and successful production quarter.

   

Financial Highlights

Three Months Ended June 30,

 

Six Months Ended June 30,

(Dollars in millions, except per unit amounts)

2021

 

2020

 

 

% Change

 

2021

 

2020

 

% Change

 

Soda ash volume produced (millions of short tons)

0.657

 

 

0.453

 

 

 

45.0

%

 

1.305

 

 

1.133

 

 

15.2

%

Soda ash volume sold (millions of short tons)

0.650

 

 

0.427

 

 

 

52.5

%

 

1.370

 

 

1.090

 

 

25.7

%

Net sales

$

120.7

 

 

$

76.2

 

 

 

58.4

%

 

$

248.5

 

 

$

190.6

 

 

30.4

%

Net income (loss)

6.8

 

 

$

(5.4

)

 

 

225.9

%

 

$

12.4

 

 

$

8.8

 

 

40.9

%

Net income (loss) attributable to Ciner Resources LP

$

2.9

 

 

$

(3.3

)

 

 

187.9

%

 

$

5.3

 

 

$

3.4

 

 

55.9

%

Earnings (loss) per limited partner unit

$

0.15

 

 

$

(0.17

)

 

 

188.2

%

 

$

0.27

 

 

$

0.17

 

 

58.8

%

Adjusted EBITDA(1)

$

16.3

 

 

$

2.8

 

 

 

482.1

%

 

$

32.0

 

 

$

25.2

 

 

27.0

%

Adjusted EBITDA attributable to Ciner Resources LP(1)

$

8.0

 

 

$

1.1

 

 

 

627.3

%

 

$

15.7

 

 

$

12.3

 

 

27.6

%

Net cash provided by operating activities

$

24.8

 

 

14.5

 

 

 

71.0

%

 

$

18.4

 

 

31.2

 

 

(41.0

)%

Distributable cash flow (deficit) attributable to Ciner Resources LP(1)

$

1.5

 

 

$

(1.4

)

 

 

207.1

%

 

$

6.2

 

 

$

7.6

 

 

(18.4

)%

Distribution coverage ratio (1)

N/A

 

N/A

 

 

N/A

 

N/A

 

1.12

 

 

N/A

 

(1)See non-GAAP reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021 compared to Three Months Ended June 30, 2020

The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.

 

Three Months Ended June 30,

 

Percent Increase/(Decrease)

(Dollars in millions, except for average sales price data):

2021

 

2020

 

Net sales:

 

 

 

 

 

Domestic

$

70.5

 

 

$

44.2

 

 

59.5

%

International

50.2

 

 

32.0

 

 

56.9

%

Total net sales

$

120.7

 

 

$

76.2

 

 

58.4

%

Sales volumes (thousands of short tons):

 

 

 

 

 

Domestic

329.5

 

 

195.3

 

 

68.7

%

International

320.7

 

 

231.2

 

 

38.7

%

Total soda ash volume sold

650.2

 

 

426.5

 

 

52.5

%

Average sales price (per short ton):(1)

 

 

 

 

 

Domestic

$

213.96

 

 

$

226.32

 

 

(5.5

)%

International

$

156.53

 

 

$

138.41

 

 

13.1

%

Average

$

185.64

 

 

$

178.66

 

 

3.9

%

Percent of net sales:

 

 

 

 

 

Domestic sales

58.4

%

 

58.0

%

 

0.7

%

International sales

41.6

%

 

42.0

%

 

(1.0

)%

Total percent of net sales

100.0

%

 

100.0

%

 

 

Percent of sales volumes:

 

 

 

 

 

Domestic volume

50.7

%

 

45.8

%

 

10.7

%

International volume

49.3

%

 

54.2

%

 

(9.0

)%

Total percent of volume sold

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

(1) Average sales price per short ton is computed as net sales divided by volumes sold

Consolidated Results

Net sales. Net sales increased by 58.4% to $120.7 million for the three months ended June 30, 2021 from $76.2 million for the three months ended June 30, 2020, primarily driven by an increase in soda ash volumes sold of 52.5% due to continued recovery of domestic and international demand from the significant negative impact from the COVID-19 pandemic. We operated close to full production capacity in the three months ended June 30, 2021. Sales prices in the three months ended June 30, 2021 had not fully recovered to pre-COVID-19 pandemic levels. Increases in net sales and cost of product sold from 2020 to 2021 are also attributable to an increase in non-ANSAC international sales which include ocean freight in both net sales and cost of product sold.

Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense and freight costs, increased by 43.9% to $106.8 million for the three months ended June 30, 2021 from $74.2 million for the three months ended June 30, 2020, which were primarily due to significant increases in overall soda ash sales volumes. The increase in cost of products sold is also due to significant increase in ocean freight rates primarily from a volatile vessel market impacted by recent global supply chain constraints.

Selling, general and administrative expenses. Our selling, general and administrative expenses decreased 6.7% to $5.6 million for the three months ended June 30, 2021, compared to $6.0 million for the three months ended June 30, 2020. The decrease was primarily due to lower professional fees for the three months ended June 30, 2021 than that for the three months ended June 30, 2020.

Operating income. As a result of the foregoing, operating income increased by 307.5% to $8.3 million for the three months ended June 30, 2021 from $4.0 million operating loss for the three months ended June 30, 2020. The increase was due to a partial recovery from the COVID-19 pandemic negative impact. In addition, a significant amount of fixed plant costs were proportionally higher than sales and production volume which lowered margins for the three months ended June 30, 2020.

Net income. As a result of the foregoing, net income increased by 225.9% to $6.8 million net income for the three months ended June 30, 2021, from $5.4 million net loss for the three months ended June 30, 2020. During the three months ended June 30, 2021, production and sales increased significantly due to a partial recovery from COVID-19 pandemic. In addition, a significant amount of fixed plant costs were proportionally higher than sales and production volume which lowered margins for the three months ended June 30, 2020.

Six Months Ended June 30, 2021 compared to Six Months Ended June 30, 2020

The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.

 

Six Months Ended June 30,

 

Percent

Increase/(Decrease)

(Dollars in millions, except for average sales price data):

2021

 

2020

 

Net sales:

 

 

 

 

 

Domestic

$

136.8

 

 

$

99.4

 

 

37.6

%

International

111.7

 

 

91.2

 

 

22.5

%

Total net sales

$

248.5

 

 

$

190.6

 

 

30.4

%

Sales volumes (thousands of short tons):

 

 

 

 

 

Domestic

644.9

 

 

432.7

 

 

49.0

%

International

725.2

 

 

657.5

 

 

10.3

%

Total soda ash volume sold

1,370.1

 

 

1,090.2

 

 

25.7

%

Average sales price (per short ton):(1)

 

 

 

 

 

Domestic

$

212.13

 

 

$

229.72

 

 

(7.7

)%

International

$

154.03

 

 

$

138.71

 

 

11.0

%

Average

$

181.37

 

 

$

174.83

 

 

3.7

%

Percent of net sales:

 

 

 

 

 

Domestic sales

55.1

%

 

52.2

%

 

5.6

%

International sales

44.9

%

 

47.8

%

 

(6.1

)%

Total percent of net sales

100.0

%

 

100.0

%

 

 

Percent of sales volumes:

 

 

 

 

 

Domestic volume

47.1

%

 

39.7

%

 

18.6

%

International volume

52.9

%

 

60.3

%

 

(12.3

)%

Total percent of volume sold

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

(1) Average sales price per short ton is computed as net sales divided by volumes sold

Consolidated Results

Net sales. Net sales increased by 30.4% to $248.5 million for the six months ended June 30, 2021 from $190.6 million for the six months ended June 30, 2020, primarily driven by an increase in soda ash volumes sold of 25.7% due to the continued recovery of domestic and international demand from the significant negative impact from the COVID-19 pandemic. We operated close to full production capacity in the six months ended June 30, 2021. Sales prices in the six months ended June 30, 2021 had not fully recovered to pre-COVID-19 pandemic levels. Increase in net sales and cost of product sold from 2020 to 2021 is also impacted by an increase in non-ANSAC international sales which include ocean freight in both net sales and cost of product sold. See How “We Evaluate Our Business – Net Sales” section for further information.

Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense and freight costs, increased by 32.8% to $222.1 million for the six months ended June 30, 2021 from $167.3 million for the six months ended June 30, 2020, which was primarily due to significant increases in overall soda ash sales volumes. The increase in cost of products sold is also due to significant increase in ocean freight rates primarily from a volatile vessel market impacted by recent global supply chain constraints.

Selling, general and administrative expenses. Our selling, general and administrative expenses decreased 5.1% to $11.2 million for the six months ended June 30, 2021, compared to $11.8 million for the six months ended June 30, 2020. The decrease was primarily due to the lower professional fees.

Operating income. As a result of the foregoing, operating income increased by 32.2% to $15.2 million for the six months ended June 30, 2021 from $11.5 million for the six months ended June 30, 2020. During the six months ended June 30, 2021, production and sales increased significantly due to recovery from the COVID-19 pandemic. In addition, a significant amount of fixed plant costs were proportionally higher than sales and production volume which lowered margins for the six months ended June 30, 2020

Net income. As a result of the foregoing, net income increased by 40.9% to $12.4 million for the six months ended June 30, 2021, from $8.8 million for the six months ended June 30, 2020. During the six months ended June 30, 2021, production and sales increased significantly due to recovery from the COVID-19 pandemic. In addition, a significant amount of fixed plant costs were proportionally higher than sales and production volume which lowered margins for the six months ended June 30, 2020.

CAPEX AND ORE METRICS

The following table summarizes our capital expenditures, on an accrual basis, ore grade and ore to ash ratio:

 

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in millions)

2021

2020

2021

2020

Capital Expenditures

 

 

 

 

Maintenance

$

8.5

 

$

3.6

 

16.0

 

$

10.1

 

Expansion

0.2

 

6.1

 

0.5

 

11.3

 

Total

$

8.7

 

$

9.7

 

$

16.5

 

$

21.4

 

Operating and Other Data:

 

 

 

 

Ore grade(1)

86.4

%

86.7

%

85.7

%

86.7

%

Ore to ash ratio(2)

1.52: 1.0

1.70: 1.0

1.58: 1.0

1.60: 1.0

(1) Ore grade is the percentage of raw trona ore that is recoverable as soda ash free of impurities. A higher ore grade will produce more soda ash than a lower ore grade.

(2) Ore to ash ratio expresses the number of short tons of trona ore needed to produce one short ton of soda ash and includes our deca rehydration recovery process. In general, a lower ore to ash ratio results in lower costs and improved efficiency.

During the three and six months ended June 30, 2021, capital expenditures decreased $1 million and $4.9 million as compared to the three and six months ended June 30, 2020, respectively. The decrease was primarily driven by decreases in expansion capital expenditures because of the completion of our new co-generation facility, which became operational in March 2020.

As of June 30, 2021, we had cash and cash equivalents of $2.5 million. In addition, we have approximately $115.0 million ($225.0 million, less $110.0 million outstanding) of remaining capacity under the Ciner Wyoming Credit Facility. As of June 30, 2021, our leverage and interest coverage ratios, as calculated pursuant to the credit agreement for the Ciner Wyoming Credit Facility, were 1.91: 1.0 and 13.27: 1.0, respectively. Our balance under the Ciner Wyoming Equipment Financing Arrangement at June 30, 2021 was $26.2 million ($26.0 million net of financing costs).

CASH FLOWS

Cash Flows

Operating Activities

Our operating activities during the six months ended June 30, 2021 provided cash of $18.4 million, a decrease of 41.0% from the $31.2 million cash provided during the six months ended June 30, 2020, primarily as a result of the following:

  • an increase of 40.9% in net income of $12.4 million during the six months ended June 30, 2021, compared to $8.8 million for the prior-year period; and
  • $11.3 million of working capital used in operating activities during the six months ended June 30, 2021, compared to $8.5 million of working capital provided by operating activities during the six months ended June 30, 2020. The $19.7 million decrease in working capital relating to operating activities during the year over year was primarily due to higher net sales for six months ended June 30, 2021. It is partly offset by the higher balances of accounts payable and accrued expenses as of June 30, 2021.

Investing activities

We used cash flows of $17.1 million in investing activities during the six months ended June 30, 2021, compared to $20.3 million used during the six months ended June 30, 2020, for capital projects as described in “Capital Expenditures” above.

Financing Activities

Cash provided by financing activities of $0.7 million during the six months ended June 30, 2021 increased by 108.2% over the prior-year cash used in financing activities, largely due to distributions to noncontrolling interest during the six months ended June 30, 2020.

Green River Expansion Project

We continue to develop plans and execute the early phases for a potential new Green River Expansion Project that we believe will increase production levels up to approximately 3.5 million short tons of soda ash per year or up to approximately 135% of the last five-year average of soda ash produced per year. We have conducted the initial basic design and are currently evaluating and pursuing the related permits and detailed cost and market analysis pursuant to the basic design. This project will require capital expenditures materially higher than have been recently incurred by Ciner Wyoming. When considering the significant investment required by this expansion and the infrastructure improvements designed to increase our overall efficiency, as well as the COVID-19 pandemic’s negative impact on our financial results, we have re-prioritized the timing of the significant expenditure items in order to increase financial and liquidity flexibility until we have more clarity and visibility into the ongoing impact of the COVID-19 pandemic on our business. The timing of the new Green River Expansion Project as well as any other expansion capital expenditures may be impacted by certain performance ratios requirements of the Ciner Obligors’ Facilities Agreement. Based on the Ciner Obligors’ applicable ratios as of December 31, 2020 and June 30, 2021 certain of our expansion capital expenditures are prohibited until the Ciner Obligors’ applicable ratios are at acceptable levels pursuant to the Facilities Agreement.

COVID-19

The global COVID-19 and variants (“COVID-19) pandemic continues to cause certain disruptions to the economy throughout the world, including the United States and markets to which our products have historically been exported. There have been extraordinary actions taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions throughout the world, including travel bans, quarantines, “stay-at-home” orders, and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. Vaccines for COVID-19 became first available on a limited basis in late December 2020. They are becoming more widely available globally and everyone in the U.S. ages 12 and older are now eligible for the vaccine.

Our Response to COVID-19

We continue to closely monitor the impact of COVID-19 pandemic and all governmental actions in response thereto on all aspects of our business, including how it impacts our customers, employees, supply chain, distribution network and cash flows. As COVID-19 vaccines become more broadly available, we have encouraged employees to get vaccinated. As of June 30, 2021, a significant number of employees have been vaccinated. We continue to use guidance from local health organizations, including the Centers for Disease Control and Prevention, to make decisions about our return to the workplace policies. Our focus has been the safety of our teams and this will continue to be our priority as we use data to progressively return back to normal operations. We continue to actively monitor and adhere to applicable local, state, federal, and international governmental guideline actions to better ensure the safety of our employees.

The impact of COVID-19

In the first half of 2020 and primarily in the beginning of the second quarter of 2020, we saw a decline in demand due to the COVID-19 pandemic adversely impacting our sales and production volume, and price per ton; but, in the second half of 2020 and thereafter, we saw the signs of recovery on our operations domestically as well as internationally in the form of increased global demand, notwithstanding certain pricing pressure. We experienced fluctuations in quarter over quarter soda ash volume sold of 4.4% decline, 35.7% decline, 26.7% increase, and 9.5% increase in the first, second, third and fourth quarters of 2020, compared to the immediately preceding quarter respectively. During the first and second quarters of 2021, we saw continued recovery in both domestic and international business. The soda ash volume sold in the first and second quarters for 2021 increased 21.7% and decreased 9.7% compared to immediately preceding quarter respectively. The decline in the soda ash volume sold in the second quarter of 2021 compared to the first quarter of 2021 is primarily due to the first quarter of 2021 included significant international sales volumes associated with the initial impact of selling directly to international customers as part of our December 31, 2020 ANSAC exit. Sales volumes for the three months ended June 30, 2021 are close to the pre-COVID-19 pandemic levels, which we consider to be prior to second quarter 2020.

As the number of individuals who have been vaccinated has increased, downward daily trend of new COVID-19 confirmed cases was observed. The COVID-19 Delta variant among other variants, however, is spreading rapidly in a number of countries including the U.S. At this time, we still cannot predict the duration or the scope of the COVID-19 pandemic and its impact on our operations, and the potential negative financial impact to our results cannot be reasonably estimated but could be material. We are actively managing the business to maintain cash flow, and we believe we have enough liquidity to meet our anticipated liquidity requirements.

For the six months ended June 30, 2021, we have incurred $1.1 million in costs directly related to COVID-19 primarily in the form of costs related to employee safety and retention and additional inventory storage and logistics costs. For the three months ended June 30, 2021 and 2020, we incurred $0.4 million and $0.9 million in costs directly related to COVID-19, respectively.

Termination of Membership in ANSAC

As previously disclosed as part of its strategic initiative to gain better direct access and control of international customers and logistics and the ability to leverage the expertise of Ciner Group, the world’s largest natural soda ash producer, effective as of the end of day on December 31, 2020, Ciner Corp exited ANSAC. In connection with the settlement agreement with ANSAC, there are sales commitments to ANSAC in 2021 and 2022 where Ciner Corp will continue to sell, at substantially lower volumes, product to ANSAC for export sales purposes, with a fixed rate per ton selling, general and administrative expense, and will also purchase a limited amount of export logistics services in 2021. Through this transition, the Partnership has amongst other things: (i) obtained its own international customer sales arrangements for 2021, (ii) obtained third-party export port services, and (iii) chartered and executed its own international product delivery.

Although ANSAC has historically been our largest customer, the impact of Ciner Corp’s exit from ANSAC on our net sales, net income and liquidity was limited. We made this determination primarily based upon the belief that we would continue to be one of the lowest cost producers of soda ash in the global market. With a low-cost position combined with more direct access and better control of our international customers and logistics and the ability to leverage Ciner Group’s expertise in these areas, through a combination of ANSAC sales commitments for 2021 and 2022 as part of the transition from ANSAC and new customers, we have been able to adequately replace these net sales made under the former agreement with ANSAC.

Post-ANSAC International Export Capabilities

In accordance with its agreement to exit ANSAC effective as of December 31, 2020, Ciner Corp began marketing soda ash on our behalf directly into international markets and building its international sales, marketing and supply chain infrastructure. We now have access to utilize the distribution network that has already been established by the global Ciner Group. We believe that by having the option of combining our volumes with Ciner Group’s soda ash exports from Turkey, Ciner Corp’s strategic exit from ANSAC has helped us to leverage global Ciner Group’s, the world’s largest natural soda ash producer, soda ash operations which we expect will improve our ability to optimize our market share both domestically and internationally. Being able to work with the global Ciner Group provides us with the opportunity to better attract and more efficiently serve larger global customers. In addition, the Partnership is working to enhance its international logistics infrastructure that includes, among other things, a domestic port for export capabilities. These export capabilities are being developed by an affiliated company and options being evaluated range from continued outsourcing in the near term to developing its own port capabilities in the longer term.

ABOUT CINER RESOURCES LP

Ciner Resources LP, a master limited partnership, operates the trona ore mining and soda ash production business of Ciner Wyoming, one of the largest and lowest cost producers of natural soda ash in the world, serving a global market from its facility in the Green River Basin of Wyoming. The facility has been in operation for more than 50 years.

NATURE OF OPERATIONS

Ciner Resources LP owns a controlling interest comprised of a 51% membership interest in Ciner Wyoming. An affiliate of Natural Resource Partners L.P. owns a noncontrolling interest consisting of a 49% membership interest in Ciner Wyoming.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Statements other than statements of historical facts included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements include all statements that are not historical facts and in some cases may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “seek,” “anticipate,” “estimate,” “predict,” “forecast,” “project,” “potential,” “continue,” “may,” “will,” “could,” “should,” or the negative of these terms or similar expressions. Such statements are based only on the Partnership’s current beliefs, expectations and assumptions regarding the future of the Partnership’s business, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Partnership’s control. The Partnership’s actual results and financial condition may differ materially from those implied or expressed by these forward-looking statements. Consequently, you are cautioned not to place undue reliance on any forward-looking statement because no forward-looking statement can be guaranteed. Factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include: changes in general economic conditions, changes in the Partnership’s relationships with its customers, including ANSAC, the demand for soda ash and the opportunities for the Partnership to increase its volume sold, the development of glass and glass making product alternatives, changes in soda ash prices, operating hazards, unplanned maintenance outages at the Partnership’s production facility, construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, the effects of government regulation, tax position, and other risks incidental to the mining and processing of trona ore, and shipment of soda ash, the impact of a cybersecurity event, the impact of our agreement to exit ANSAC effective as of December 31, 2020 and our transition to the utilization of Ciner Group’s global distribution network for some of our export operations beginning on January 1, 2021, our ability to reinstate our distributions, and the short- and long-term impacts of the novel COVID-19 pandemic, including the impact of government orders on our employees and operations, as well as the other factors discussed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2020, as updated by the Partnership’s Quarterly Report on Form 10-Q for the period ended March 31, 2021, and subsequent reports filed with the United States Securities and Exchange Commission. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Unless required by law, the Partnership undertakes no duty and does not intend to update the forward-looking statements made herein to reflect new information or events or circumstances occurring after this press release. All forward-looking statements speak only as of the date made.

 

Supplemental Information

CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In millions, except per unit data)

2021

 

2020

 

2021

 

2020

Net sales:

 

 

 

 

 

 

 

Sales—others

120.7

 

 

 

44.2

 

 

 

248.5

 

 

 

104.6

 

 

Sales—affiliates

$

 

 

 

$

32.0

 

 

 

$

 

 

 

$

86.0

 

 

Net sales

$

120.7

 

 

 

$

76.2

 

 

 

$

248.5

 

 

 

$

190.6

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of products sold including freight costs (excludes depreciation, depletion and amortization expense set forth separately below)

 

99.1

 

 

 

67.7

 

 

 

205.7

 

 

 

154.3

 

 

Depreciation, depletion and amortization expense

7.7

 

 

 

6.5

 

 

 

16.4

 

 

 

13.0

 

 

Selling, general and administrative expenses—affiliates

4.2

 

 

 

4.4

 

 

 

7.8

 

 

 

8.5

 

 

Selling, general and administrative expenses—others

1.4

 

 

 

1.6

 

 

 

3.4

 

 

 

3.3

 

 

Total operating costs and expenses

112.4

 

 

 

80.2

 

 

 

233.3

 

 

 

179.1

 

 

Operating income (loss)

8.3

 

 

 

(4.0

)

 

 

15.2

 

 

 

11.5

 

 

Other (expenses) income:

 

 

 

 

 

 

 

Interest income

 

 

 

0.1

 

 

 

 

 

 

0.1

 

 

Interest expense, net

(1.5

)

 

 

(1.5

)

 

 

(2.8

)

 

 

(2.8

)

 

Total other expense, net

(1.5

)

 

 

(1.4

)

 

 

(2.8

)

 

 

(2.7

)

 

Net income (loss)

$

6.8

 

 

 

$

(5.4

)

 

 

$

12.4

 

 

 

$

8.8

 

 

Net income (loss) attributable to noncontrolling interest

3.9

 

 

 

(2.1

)

 

 

7.1

 

 

 

5.4

 

 

Net income (loss) attributable to Ciner Resources LP

$

2.9

 

 

 

$

(3.3

)

 

 

$

5.3

 

 

 

$

3.4

 

 

Other comprehensive income:

 

 

 

 

 

 

 

Income/(loss) on derivative financial instruments

5.1

 

 

 

2.8

 

 

 

$

6.6

 

 

 

$

0.7

 

 

Comprehensive income (loss)

11.9

 

 

 

(2.6

)

 

 

19.0

 

 

 

9.5

 

 

Comprehensive income (loss) attributable to noncontrolling interest

6.4

 

 

 

(0.7

)

 

 

10.3

 

 

 

5.7

 

 

Comprehensive income (loss) attributable to Ciner Resources LP

$

5.5

 

 

 

$

(1.9

)

 

 

$

8.7

 

 

 

$

3.8

 

 

 

 

 

 

 

 

 

 

Net income (loss) per limited partner unit:

 

 

 

 

 

 

 

Net income (loss) per limited partner unit (basic)

$

0.15

 

 

 

$

(0.17

)

 

 

$

0.27

 

 

 

$

0.17

 

 

Net income (loss) per limited partner unit (diluted)

$

0.15

 

 

 

$

(0.17

)

 

 

$

0.27

 

 

 

$

0.17

 

 

 

 

 

 

 

 

 

 

Limited partner units outstanding:

 

 

 

 

 

 

 

Weighted average limited partner units outstanding (basic)

19.8

 

 

19.7

 

 

19.8

 

 

19.7

 

Weighted average limited partner units outstanding (diluted)

19.8

 

 

19.7

 

 

19.8

 

 

19.7

 

 

CINER RESOURCES LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

As of

(In millions)

June 30,

2021

 

December 31,

2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2.5

 

 

$

0.5

 

Accounts receivable—affiliates

49.0

 

 

86.5

 

Accounts receivable, net

96.2

 

 

40.6

 

Inventory

31.4

 

 

33.5

 

Other current assets

9.4

 

 

4.1

 

Total current assets

188.5

 

 

165.2

 

Property, plant and equipment, net

308.3

 

 

307.4

 

Other non-current assets

26.4

 

 

25.4

 

Total assets

$

523.2

 

 

$

498.0

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

3.0

 

 

$

3.0

 

Accounts payable

21.9

 

 

16.4

 

Due to affiliates

2.1

 

 

2.9

 

Accrued expenses

34.0

 

 

33.6

 

Total current liabilities

61.0

 

 

55.9

 

Long-term debt

133.0

 

 

128.1

 

Other non-current liabilities

8.4

 

 

8.7

 

Total liabilities

202.4

 

 

192.7

 

Commitments and contingencies

 

 

 

Equity:

 

 

 

Common unitholders – Public and Ciner Wyoming Holding Co. (19.8 units issued and outstanding at June 30, 2021 and December 31, 2020)

175.5

 

 

170.0

 

General partner unitholders – Ciner Resource Partners LLC (0.4 units issued and outstanding at June 30, 2021 and December 31, 2020)

4.3

 

 

4.2

 

Accumulated other comprehensive loss

3.4

 

 

 

Partners’ capital attributable to Ciner Resources LP

183.2

 

 

174.2

 

Noncontrolling interest

137.6

 

 

131.1

 

Total equity

320.8

 

 

305.3

 

Total liabilities and partners’ equity

$

523.2

 

 

$

498.0

 

 

CINER RESOURCES LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Six Months Ended June 30,

(In millions)

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

Net income

$

12.4

 

 

 

$

8.8

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation, depletion and amortization expense

16.7

 

 

 

13.0

 

 

Equity-based compensation expense

0.4

 

 

 

0.7

 

 

Other non-cash items

0.2

 

 

 

0.2

 

 

Changes in operating assets and liabilities:

 

 

 

(Increase)/decrease in:

 

 

 

Accounts receivable – affiliates

(4.4

)

 

 

26.4

 

 

Accounts receivable, net

(13.7

)

 

 

2.1

 

 

Inventory

2.3

 

 

 

(9.5

)

 

Other current and other non-current assets

(2.0

)

 

 

(0.1

)

 

Increase/(decrease) in:

 

 

 

Accounts payable

6.1

 

 

 

(4.2

)

 

Due to affiliates

(0.7

)

 

 

(0.2

)

 

Accrued expenses and other liabilities

1.1

 

 

 

(6.0

)

 

Net cash provided by operating activities

18.4

 

 

 

31.2

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

(17.1

)

 

 

(20.3

)

 

Net cash used in investing activities

(17.1

)

 

 

(20.3

)

 

Cash flows from financing activities:

 

 

 

Borrowings on Ciner Wyoming Credit Facility

57.5

 

 

 

121.5

 

 

Borrowings on Ciner Resources Credit Facility

1.0

 

 

 

 

 

Borrowings on Ciner Wyoming Equipment Financing Arrangement

 

 

 

30.0

 

 

Repayments on Ciner Wyoming Credit Facility

(50.0

)

 

 

(131.0

)

 

Repayments on Ciner Resources Credit Facility

(2.0

)

 

 

 

 

Repayments on Ciner Wyoming Equipment Financing Arrangement

(1.5

)

 

 

(0.7

)

 

Distributions to common unitholders, general partner, and noncontrolling interest

(3.9

)

 

 

(27.9

)

 

Other

(0.4

)

 

 

(0.4

)

 

Net cash provided by (used in) financing activities

0.7

 

 

 

(8.5

)

 

Net increase in cash and cash equivalents

2.0

 

 

 

2.4

 

 

Cash and cash equivalents at beginning of period

0.5

 

 

 

14.9

 

 

Cash and cash equivalents at end of period

$

2.5

 

 

 

$

17.3

 

 

Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). We also present the non-GAAP financial measures of:

  • Adjusted EBITDA;
  • Distributable cash flow; and
  • Distribution coverage ratio.

We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation, depletion and amortization, equity-based compensation expense and certain other expenses that are non-cash charges or that we consider not to be indicative of ongoing operations. Distributable cash flow is defined as Adjusted EBITDA less net cash paid for interest, maintenance capital expenditures and income taxes, each as attributable to Ciner Resources LP. The Partnership may fund expansion-related capital expenditures with borrowings under existing credit facilities such that expansion-related capital expenditures will have no impact on cash on hand or the calculation of cash available for distribution. In certain instances, the timing of the Partnership’s borrowings and/or its cash management practices will result in a mismatch between the period of the borrowing and the period of the capital expenditure. In those instances, the Partnership adjusts designated reserves (as provided in the partnership agreement) to take account of the timing difference. Accordingly, expansion-related capital expenditures have been excluded from the presentation of cash available for distribution. Distributable cash flow will not reflect changes in working capital balances. We define distribution coverage ratio as the ratio of distributable cash flow as of the end of the period to cash distributions payable with respect to such period.

Adjusted EBITDA, distributable cash flow and distribution coverage ratio are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • our operating performance as compared to other publicly traded partnerships in our industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;
  • the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
  • our ability to incur and service debt and fund capital expenditures; and
  • the viability of capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of Adjusted EBITDA, distributable cash flow and distribution coverage ratio provide useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and distributable cash flow are net income and net cash provided by operating activities. Our non-GAAP financial measures of Adjusted EBITDA, distributable cash flow and distribution coverage ratio should not be considered as alternatives to GAAP net income, operating income, net cash provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities. Investors should not consider Adjusted EBITDA, distributable cash flow and distribution coverage ratio in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, distributable cash flow and distribution coverage ratio may be defined differently by other companies, including those in our industry, our definition of Adjusted EBITDA, distributable cash flow and distribution coverage ratio may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

The table below presents a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and distributable cash flow to the GAAP financial measures of net income and net cash provided by operating activities:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(Dollars in millions, except per unit data)

2021

 

2020

 

2021

 

2020

Reconciliation of Adjusted EBITDA to net income:

 

 

 

 

 

 

 

Net income (loss)

$

6.8

 

 

$

(5.4)

 

 

$

12.4

 

 

$

8.8

 

Add backs:

 

 

 

 

 

 

 

Depreciation, depletion and amortization expense

7.7

 

 

6.5

 

 

16.4

 

 

13.0

 

Interest expense, net

1.5

 

 

1.4

 

 

2.8

 

 

2.7

 

Equity-based compensation expense, net of forfeitures

0.3

 

 

0.3

 

 

0.4

 

 

0.7

 

Adjusted EBITDA

$

16.3

 

 

$

2.8

 

 

$

32.0

 

 

$

25.2

 

Less: Adjusted EBITDA attributable to noncontrolling interest

8.3

 

 

1.7

 

 

16.3

 

 

12.9

 

Adjusted EBITDA attributable to Ciner Resources LP

$

8.0

 

 

$

1.1

 

 

$

15.7

 

 

$

12.3

 

 

 

 

 

 

 

 

 

Reconciliation of distributable cash flow to Adjusted EBITDA attributable to Ciner Resources LP:

 

 

 

 

 

 

 

Adjusted EBITDA attributable to Ciner Resources LP

$

8.0

 

 

$

1.1

 

 

$

15.7

 

 

$

12.3

 

Less: Cash interest expense, net attributable to Ciner Resources LP

0.7

 

 

0.6

 

 

1.2

 

 

0.1

 

Less: Maintenance capital expenditures attributable to Ciner Resources LP

5.8

 

 

1.9

 

 

8.3

 

 

4.6

 

Distributable cash flow (deficit) attributable to Ciner Resources LP

$

1.5

 

 

$

(1.4)

 

 

$

6.2

 

 

$

7.6

 

 

 

 

 

 

 

 

 

Cash distribution declared per unit

$

 

 

$

 

 

$

 

 

$

0.340

 

Total distributions to unitholders and general partner

$

 

 

$

 

 

$

 

 

$

6.8

 

Distribution coverage ratio

N/A

 

N/A

 

N/A

 

1.12

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA to net cash from operating activities:

 

 

 

 

 

 

 

Net cash provided by operating activities

$

24.8

 

 

$

14.5

 

 

$

18.4

 

 

$

31.2

 

Add/(less):

 

 

 

 

 

 

 

Amortization of long-term loan financing

(0.1)

 

 

 

 

(0.3)

 

 

 

Net change in working capital

(9.6)

 

 

(12.9)

 

 

11.3

 

 

(8.5)

 

Interest expense, net

1.5

 

 

1.4

 

 

2.8

 

 

2.7

 

Other non-cash items

(0.3)

 

 

(0.2)

 

 

(0.2)

 

 

(0.2)

 

Adjusted EBITDA

$

16.3

 

 

$

2.8

 

 

$

32.0

 

 

$

25.2

 

Less: Adjusted EBITDA attributable to noncontrolling interest

8.3

 

 

1.7

 

 

16.3

 

 

12.9

 

Adjusted EBITDA attributable to Ciner Resources LP

$

8.0

 

 

$

1.1

 

 

$

15.7

 

 

$

12.3

 

Less: Cash interest expense, net attributable to Ciner Resources LP

0.7

 

 

0.6

 

 

1.2

 

 

0.1

 

Less: Maintenance capital expenditures attributable to Ciner Resources LP

5.8

 

 

1.9

 

 

8.3

 

 

4.6

 

Distributable cash flow (deficit) attributable to Ciner Resources LP

$

1.5

 

 

$

(1.4)

 

 

$

6.2

 

 

$

7.6

 

The following table presents a reconciliation of the non-GAAP financial measures of Adjusted EBITDA to GAAP financial measure of net income for the periods presented:

(Dollars in millions, except per unit data)

Cumulative

Four

Quarters

ended Q2-

2021

 

Q2-2021

 

Q1-2021

 

Q4-2020

 

Q3-2020

 

Q2-2020

Reconciliation of Adjusted EBITDA to net income:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

30.5

 

 

6.8

 

 

$

5.6

 

 

$

12.7

 

 

 

$

5.4

 

 

$

(5.4

)

 

Add backs:

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization expense

32.2

 

 

7.7

 

 

8.7

 

 

8.0

 

 

 

7.8

 

 

6.5

 

 

Impairment and loss on disposal of assets, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

5.3

 

 

1.5

 

 

1.3

 

 

1.3

 

 

 

1.2

 

 

1.4

 

 

Equity-based compensation expense (benefit), net of forfeitures

0.4

 

 

0.3

 

 

0.1

 

 

(0.2

)

 

 

0.2

 

 

0.3

 

 

Adjusted EBITDA

68.4

 

 

16.3

 

 

15.7

 

 

21.8

 

 

 

14.6

 

 

2.8

 

 

Less: Adjusted EBITDA attributable to noncontrolling interest

34.9

 

 

8.3

 

 

8.0

 

 

11.2

 

 

 

7.4

 

 

1.7

 

 

Adjusted EBITDA attributable to Ciner Resources LP

$

33.5

 

 

$

8.0

 

 

$

7.7

 

 

$

10.6

 

 

 

$

7.2

 

 

$

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA attributable to Ciner Resources LP

$

33.5

 

 

$

8.0

 

 

$

7.7

 

 

$

10.6

 

 

 

$

7.2

 

 

$

1.1

 

 

Less: Cash interest expense (income), net attributable to Ciner Resources LP

2.5

 

 

0.7

 

 

0.5

 

 

0.7

 

 

 

0.6

 

 

0.6

 

 

Less: Maintenance capital expenditures attributable to Ciner Resources LP

15.4

 

 

5.8

 

 

2.5

 

 

4.3

 

 

 

2.8

 

 

1.9

 

 

Distributable cash flow (deficit) attributable to Ciner Resources LP

$

15.6

 

 

$

1.5

 

 

$

4.7

 

 

$

5.6

 

 

 

$

3.8

 

 

$

(1.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash distribution declared per unit

$

 

 

$

 

 

$

 

 

$

 

 

 

$

 

 

$

 

 

Total distributions to unitholders and general partner

$

 

 

$

 

 

$

 

 

$

 

 

 

$

 

 

$

 

 

Distribution coverage ratio

N/A

 

N/A

 

N/A

 

N/A

 

 

N/A

 

N/A

 

 

Investor Relations

Ahmet Tohma

Chief Financial Officer

(770) 375-2321

[email protected]

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Mining/Minerals Natural Resources

MEDIA:

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Iridium Granted Trio of Regulatory Approvals in Japan

A combination of new aviation, land and maritime service approvals brings state-of-the-art Iridium® SATCOM to Japanese flagged aircraft, ships and vehicles

PR Newswire

MCLEAN, Va., Aug. 2, 2021 /PRNewswire/ — Iridium Communications Inc. (NASDAQ: IRDM) today announced that Japan’s Ministry of Internal Affairs and Communications (MIC) has approved regulatory amendments necessary to allow for Japanese adoption of Iridium Certus® broadband, Iridium Controller–Pilot Data Link Communications (CPDLC) and other aeronautical services for aviation and Iridium’s Global Maritime Distress and Safety System service (GMDSS). Over the past several years, Iridium has been working on regulatory amendments with the MIC to incorporate these services into the Japanese regulatory framework, while many other Iridium services have long been approved. Following all required processes of the regulatory amendments, Japanese flagged aircraft, ships and other customers can begin use of these Iridium services.

The Iridium Certus service for maritime and land mobile industries began in January 2019, however it was previously unavailable in Japan due to ongoing regulatory amendments. The MIC published the amendments in the government Gazette in late 2020, and Iridium partners may now obtain equipment certifications for their Iridium Connected® products.

Iridium Certus is the world’s most advanced L-band broadband solution, offering small-form-factor, cost-effective terminals, and truly global coverage. In the maritime industry, terminals include the Cobham SATCOM SAILOR 4300, Intellian C700 and Thales VesseLINK 700 and 200. Iridium Certus enables business applications like web browsing, email, voice calling and video chat functions as well as IoT and sensor data collection and transmission. It serves all market sectors, including commercial shipping, fishing, workboats, leisure and government. Iridium Certus maritime services are being provided by Arion Japan, KDDI, KVH, Kyoritsu Radio Service, Marlink and Satcom Global

In the land mobile market, the Thales MissionLINK 700 and 200 offer Iridium Certus service for a variety of land applications including those supporting business continuity, public safety, and government organizations. These terminals can support both mobile and fixed-site applications and are ideal for field workforce management for fleets, remote asset control requiring IP connectivity, voice communications, and added redundancy for VSAT systems as a failover.  Iridium Certus land services in Japan are being provided by Arion Japan, Kaigai Corporation and KDDI.

Iridium Certus aviation solutions are planned for availability in late 2021 and will serve business, commercial, government and general aviation aircraft, including rotorcraft. The service will offer a variety of speeds and features low-profile, highly reliable L-band antennas and lightweight terminals that enable high-quality voice, IP data, email and web browsing.  Iridium Certus aviation services in Japan will be provided by Navicom Aviation.

The MIC’s official approval of regulatory amendments for Iridium CPDLC and Iridium GMDSS were both issued in early 2021. CPDLC is a text-based communications service directly between aircraft pilots and air traffic controllers and is used for air traffic management.  The service is now fully approved for use in Japanese airspace and for adoption by Japanese flagged aircraft. Iridium aviation CPDLC service in Japan is being provided by KDDI and Navicom Aviation.

Iridium GMDSS service formally launched in late 2020 and uniquely combines Distress Alert, Safety Voice, and Maritime Safety Information (MSI) in one terminal, the Lars Thrane, LT-3100S. This service offers truly global connectivity including in Sea Area A4, for Japanese Flag vessels. Iridium GMDSS service is being provided in Japan by Arion Japan, Marlink and Satcom Global.

“We are proud that Iridium completed the process for approval of the regulatory amendments by the Ministry of Internal Affairs and Communications after rigorous examination. Delivered through our resilient satellite network, Iridium services can keep customers in Japan safe and connected,” says Bryan Hartin, executive vice president, sales and marketing, Iridium. “Following approval, Iridium’s global offerings of Iridium Certus, CPDLC and GMDSS will benefit the Japanese airlines and maritime industries everywhere on the planet.”

For more information about Iridium visit: www.iridium.com                                

Iridium Communications Inc. 
Iridium® is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2019, the company completed a generational upgrade of its satellite network and launched its new specialty broadband service, Iridium Certus®. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM. For more information about Iridium products, services and partner solutions, visit www.iridium.com

Forward-Looking Statements Disclosure

Statements in this presentation that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company has based these statements on its current expectations and the information currently available to us. Forward-looking statements in this press release include statements regarding the timing of introduction, capabilities and benefits of Iridium Certus, CPDLC and GMDSS services and the related products. Forward-looking statements can be identified by the words “anticipates,” “may,” “can,” “believes,” “expects,” “projects,” “intends,” “likely,” “will,” “to be” and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding the development and functionality of Iridium services and related products, regulatory approvals, and the company’s ability to maintain the health, capacity and content of its satellite constellation, as well as general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 11, 2021, and the Company’s Form 10-Q for the quarter ended June 30, 2021, filed with the SEC on July 20, 2021 as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium’s expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium’s underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium’s forward-looking statements speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements.



Media Contact:


Jordan Hassin
Iridium Communications Inc.
[email protected] 
+1 (703) 287-7421
Twitter: @Iridiumcomm



Investor Contact:


Kenneth Levy
Iridium Communications Inc.
[email protected] 

+1 (703) 287-7570

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SOURCE Iridium Communications Inc.

Atara Biotherapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Atara Biotherapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

SOUTH SAN FRANCISCO, Calif.–(BUSINESS WIRE)–Atara Biotherapeutics, Inc. (Nasdaq:ATRA), a pioneer in T-cell immunotherapy, leveraging its novel allogeneic EBV T-cell platform to develop transformative therapies for patients with cancer and autoimmune diseases, today reported the grant of an aggregate of 110,626 restricted stock units of Atara’s common stock to 28 newly hired employees and stock options to purchase an aggregate of 69,744 shares of Atara’s common stock to 8 such newly hired employees. These awards were approved by the Compensation Committee of Atara’s Board of Directors and granted under the Atara Biotherapeutics, Inc. 2018 Inducement Plan, with a grant date of August 2, 2021, as an inducement material to the new employees entering into employment with Atara, in accordance with Nasdaq Listing Rule 5635(c)(4).

The restricted stock units vest over four years, with 25 percent vesting on the first quarterly vesting date after the first anniversary of the grant date and the remainder vesting in 12 approximately equal quarterly installments over the following three years, subject to the employee being continuously employed by Atara as of such vesting dates. The stock options vest over four years, with 25 percent vesting on the first anniversary of the vesting commencement date for such employee and the remainder vesting in 36 equal monthly installments over the following three years, subject to the employee being continuously employed by Atara as of such vesting dates. The stock options have a ten-year term and an exercise price of $12.92 per share, equal to the per share closing price of Atara’s common stock as reported by Nasdaq on August 2, 2021.

Atara is providing this information in accordance with Nasdaq Listing Rule 5635(c)(4).

About Atara Biotherapeutics, Inc.

Atara Biotherapeutics, Inc. (@Atarabio) is a pioneer in T-cell immunotherapy leveraging its novel allogeneic EBV T-cell platform to develop transformative therapies for patients with serious diseases including solid tumors, hematologic cancers and autoimmune disease. With our lead program in Phase 3 clinical development, Atara is the most advanced allogeneic T-cell immunotherapy company and intends to rapidly deliver off-the-shelf treatments to patients with high unmet medical need. Our platform leverages the unique biology of EBV T cells and has the capability to treat a wide range of EBV-associated diseases, or other serious diseases through incorporation of engineered CARs (chimeric antigen receptors) or TCRs (T-cell receptors). Atara is applying this one platform to create a robust pipeline including: tab-cel® (tabelecleucel) in Phase 3 development for Epstein-Barr virus-driven post-transplant lymphoproliferative disease (EBV+ PTLD); ATA188, a T-cell immunotherapy targeting EBV antigens as a potential treatment for multiple sclerosis; and multiple next-generation chimeric antigen receptor T-cell (CAR-T) immunotherapies for both solid tumors and hematologic malignancies. Improving patients’ lives is our mission and we will never stop working to bring transformative therapies to those in need. Atara is headquartered in South San Francisco and our leading-edge research, development and manufacturing facility is based in Thousand Oaks, California. For additional information about the company, please visit atarabio.com and follow us on Twitter and LinkedIn.

Investors

Eric Hyllengren

805-395-9669

[email protected]

Media

Alex Chapman

805-456-4772

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Oncology

MEDIA:

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TriLink BioTechnologies® Extends Global Support of Covid-19 Vaccine Development into APAC Region with the Chula Vaccine Research Center (Chula VRC), Bangkok

TriLink enables Chula VRC to take its Covid-19 vaccine into a First in Human (FIH) phase 1 clinical trial in Thailand with mRNA manufacturing process development and its proprietary mRNA capping technology, ushering a much-needed vaccine into economically developing countries

SAN DIEGO, Aug. 02, 2021 (GLOBE NEWSWIRE) — TriLink BioTechnologies (“TriLink”), a Maravai LifeSciences company (Nasdaq: MRVI) and a leader in the production of nucleic acids for research, diagnostics and therapeutics applications, has enabled Chula Vaccine Research Center, at the Faculty of Medicine, Chulalongkorn University (Chula VRC), Bangkok, to deliver an mRNA Covid-19 vaccine that has been approved for an immediate FIH phase 1 clinical trial in Thailand. Building on its successful partnerships in the development of effective mRNA Covid-19 vaccines currently in use worldwide, TriLink was instrumental in the Chula VRC mRNA Covid-19 vaccine’s mRNA manufacturing process development and first clinical batch manufacturing of the drug substance. TriLink will also continue to support manufacturing of the vaccine through the use of its CleanCap® mRNA capping technology for mRNA synthesis.

The ChulaCov19 mRNA Covid-19 Vaccine Development Program aims to expand access to an mRNA Covid-19 vaccine in Thailand and other low-to-middle-income countries (LMICs) in Asia. The vaccine is also intended to provide a booster for people who have been vaccinated with other previous vaccines to enhance their protection against both the wild-type virus and new variants.

“TriLink is proud to have collaborated with ChulaVRC on this critical Covid-19 vaccine, and we look forward to continuing to support them through their clinical trials and manufacturing scale up efforts,” said Brian Neel, Chief Operating Officer of TriLink BioTechnologies. “We are committed to do our part to bring expanded access to Covid-19 vaccines to populations in need across the globe and continue to develop partnerships across the world in support of this important work.”

Kiat Ruxrungtham, Director, ChulaVRC Covid-19 Vaccine Development Program, stated: “It is our great pleasure to partner with the TriLink team in fighting this pandemic. This collaboration will not only help us combat Covid-19, it will also support our readiness to make vaccines against any new variants of concern or any pandemic to come in a much timelier manner, for LMICs in particular.”

The TriLink-ChulaVRC partnership was made possible through Dr. Drew Weissman, MD, PhD, an infectious disease expert at University of Pennsylvania Medicine and one of the primary researchers responsible for breakthrough components of other mRNA-based vaccines and therapeutics being manufactured and used globally.

“Our collaboration with Professor Kiat at Chula VRC is making mRNA vaccine technology accessible to underserved countries in this region to fight the pandemic. This strong partnership will also extend beyond Covid-19 to other needed vaccines, for both infectious diseases and other non-communicable diseases in the near future,” commented Dr. Weissman.

In addition to Chula VRC and its relationships in the United States and EMEA, TriLink is currently in discussions to supply CleanCap and CleanCap mRNA to other organizations within China, Japan and other nations across the Asia-Pacific region who are seeking to develop successful mRNA Covid-19 vaccines.

TriLink’s Brian Neel further added that, “As pioneering manufacturers of GMP-grade mRNA, TriLink has been instrumental in the fight against Covid-19. We stand at the ready with the experience, expertise, and scalable resources to empower partners in every geography. As we extend our services, we believe we can help stem the further impact of this pandemic.”

About TriLink BioTechnologies

TriLink BioTechnologies, part of Maravai LifeSciences, is a CDMO helping life science leaders and innovators overcome challenges in the synthesis and scale-up of nucleic acids, NTPs and mRNA capping analogs with scale-up expertise and unique mRNA production capabilities, including its proprietary CleanCap® mRNA capping technology. TriLink continues to expand its cGMP and general manufacturing capacity at its new global headquarters to support mRNA, oligonucleotide & plasmid therapeutic, vaccine and diagnostic customers. www.trilinkbiotech.com

About Maravai LifeSciences

Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics, novel vaccines and support research on human diseases. Maravai’s companies are leaders in providing products and services in the fields of nucleic acid synthesis, bioprocess impurity detection and analysis, and protein labeling and detection to many of the world’s leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies.

For more information about Maravai LifeSciences, visit www.maravai.com.

Forward-looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release which are not strictly historical statements constitute forward-looking statements, including, without limitation, statements regarding Chula VRC’s continued use of CleanCap, the expansion of access to mRNA COVID-19 vaccines and their ability to enhance protection against both the wild-type virus and new variants, our ability to develop new partnerships, the ability of our partners to address new pandemics in a timely manner or develop new vaccines to address both infectious disease and other non-communicable diseases in the near future, and our ability to help stem the further impact of the COVID-19 pandemic, constitute forward-looking statements and are identified by words like “aim,” “believe,” “expect,” “may,” “will,” “should,” “seek,” “anticipate,” or “could” and similar expressions. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation and uncertainties related to the level of demand for our products and services, continued validation of the safety and effectiveness of our technology, new scientific developments and competition from other products. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, as well as other documents on file with the Securities and Exchange Commission. Actual results may differ materially from those contemplated by these forward-looking statements, and therefore you should not rely upon them. These forward-looking statements reflect our current views and we do not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date hereof except as required by law.



Contact Information:

Maravai LifeSciences

Media Contact: Sara Michelmore

MacDougall

+1 781-235-3060

[email protected]



Investor Contact: Deb Hart

Maravai LifeSciences

+ 1 858-988-5917

[email protected]



Chula VRC

Kiat Ruxrungtham,

Professor of Medicine,

Chula VRC, Chulalongkorn University,

Bangkok, Thailand

[email protected]

Distribution Dates and Amounts Announced for Certain BlackRock Closed-End Funds

Distribution Dates and Amounts Announced for Certain BlackRock Closed-End Funds

NEW YORK–(BUSINESS WIRE)–
Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below.

In addition to its regular monthly distribution, BlackRock 2022 Global Income Opportunity Trust (NYSE: BGIO) declared a special distribution in accordance with its Plan of Liquidation announced on June 30th. Both distributions are considered liquidating distributions. BGIO expects to make periodic liquidating distributions to shareholders pursuant to the Plan of Liquidation in advance of its termination and make a final liquidating distribution by December 31, 2021. Upon the effectiveness of BGIO’s Plan of Liquidation, the Automatic Dividend Reinvestment Plan of the Fund has been suspended with respect to any dividends or distributions for which the record date is on or after June 30, 2021. All such dividends or distributions will be paid in cash.

Municipal Funds:

Declaration- 8/2/2021   Ex-Date- 8/13/2021   Record- 8/16/2021   Payable- 9/1/2021

National Funds

Ticker

 

Distribution

 

Change From Prior

Distribution

BlackRock Municipal Income Quality Trust

BYM

 

$0.058000

 

BlackRock Long-Term Municipal Advantage Trust

BTA

 

$0.054500

 

BlackRock Muni Intermediate Duration Fund, Inc.

MUI

 

$0.054000

 

BlackRock MuniAssets Fund, Inc.*

MUA

 

$0.049000

 

BlackRock Municipal Income Trust

BFK

 

$0.058500

 

BlackRock Investment Quality Municipal Trust, Inc.

BKN

 

$0.068000

 

BlackRock Municipal Income Trust II

BLE

 

$0.062000

 

BlackRock Municipal 2030 Target Term Trust

BTT

 

$0.062400

 

BlackRock MuniHoldings Investment Quality Fund

MFL

 

$0.048500

 

BlackRock MuniHoldings Fund

MHD

 

$0.060500

 

BlackRock MuniYield Quality Fund II, Inc.

MQT

 

$0.054000

 

BlackRock MuniYield Quality Fund, Inc.

MQY

 

$0.063000

 

BlackRock MuniHoldings Quality Fund II, Inc.

MUE

 

$0.052500

 

BlackRock MuniVest Fund II, Inc.

MVT

 

$0.058500

 

BlackRock MuniYield Fund, Inc.*

MYD

 

$0.056000

 

BlackRock MuniYield Quality Fund III, Inc.

MYI

 

$0.051500

 

BlackRock MuniVest Fund, Inc.

MVF

 

$0.033500

 

 

State-Specific Funds

Ticker

 

Distribution

 

Change From Prior

Distribution

BlackRock MuniHoldings California Quality Fund, Inc.

MUC

 

$0.055000

 

BlackRock California Municipal Income Trust

BFZ

 

$0.043000

 

BlackRock MuniYield California Fund, Inc.

MYC

 

$0.043000

 

BlackRock MuniYield California Quality Fund, Inc.

MCA

 

$0.056000

 

BlackRock MuniYield Michigan Quality Fund, Inc.

MIY

 

$0.056000

 

BlackRock MuniHoldings New York Quality Fund, Inc.

MHN

 

$0.054500

 

BlackRock MuniYield New York Quality Fund, Inc.

MYN

 

$0.051500

 

BlackRock MuniHoldings New Jersey Quality Fund, Inc.

MUJ

 

$0.063000

 

BlackRock New York Municipal Income Trust

BNY

 

$0.056500

 

BlackRock MuniYield New Jersey Fund, Inc.

MYJ

 

$0.062500

 

BlackRock MuniYield Pennsylvania Quality Fund

MPA

 

$0.055000

 

BlackRock Virginia Municipal Bond Trust

BHV

 

$0.045500

 

Taxable Municipal Fund:

Declaration- 8/2/2021   Ex-Date- 8/13/2021   Record- 8/16/2021   Payable- 8/31/2021

Fund

Ticker

Distribution

Change From Prior

Distribution

BlackRock Taxable Municipal Bond Trust*

BBN

$0.117000

Taxable Funds:

Declaration- 8/2/2021   Ex-Date- 8/13/2021   Record- 8/16/2021   Payable- 8/31/2021

Fund

Ticker

 

Distribution

 

Change From Prior

Distribution

BlackRock Floating Rate Income Trust*

BGT

 

$0.064700

 

BlackRock Core Bond Trust

BHK

 

$0.074600

 

BlackRock Multi-Sector Income Trust*

BIT

 

$0.123700

 

BlackRock Income Trust, Inc.*

BKT

 

$0.034400

 

BlackRock Limited Duration Income Trust*

BLW

 

$0.098100

 

BlackRock Credit Allocation Income Trust

BTZ

 

$0.083900

 

BlackRock Debt Strategies Fund, Inc.*

DSU

 

$0.060500

 

BlackRock Enhanced Government Fund, Inc.*

EGF

 

$0.041000

 

BlackRock Floating Rate Income Strategies Fund, Inc.*

FRA

 

$0.066700

 

BlackRock Corporate High Yield Fund, Inc.*

HYT

 

$0.077900

 

BlackRock 2022 Global Income Opportunity Trust*

BGIO

 

$0.050000

 

Special distribution:

Declaration- 8/2/2021   Ex-Date- 8/13/2021   Record- 8/16/2021   Payable- 8/31/2021

Fund

Ticker

Distribution

BlackRock 2022 Global Income Opportunity Trust*

BGIO

$1.343000

Equity Funds:

Declaration- 8/2/2021   Ex-Date- 8/13/2021   Record- 8/16/2021   Payable- 8/31/2021

Fund

Ticker

Distribution

Change From Prior

Distribution

BlackRock Resources & Commodities Strategy Trust*

BCX

 

$0.040000

 

BlackRock Enhanced Equity Dividend Trust*

BDJ

 

$0.050000

 

BlackRock Energy and Resources Trust*

BGR

 

$0.037500

 

BlackRock Enhanced International Dividend Trust*

BGY

 

$0.033800

 

BlackRock Health Sciences Trust*

BME

 

$0.200000

 

BlackRock Health Sciences Trust II*

BMEZ

 

$0.145000

 

BlackRock Enhanced Global Dividend Trust*

BOE

 

$0.063000

 

BlackRock Utilities, Infrastructure & Power Opportunities Trust*

BUI

 

$0.121000

 

BlackRock Enhanced Capital and Income Fund, Inc.*

CII

 

$0.093000

 

BlackRock Science and Technology Trust*

BST

 

$0.226000

 

BlackRock Science and Technology Trust II*

BSTZ

 

$0.171000

 

BlackRock Innovation and Growth Trust*

BIGZ

 

$0.100000

 

Multi-Asset Fund:

Declaration- 8/2/2021   Ex-Date- 8/13/2021   Record- 8/16/2021   Payable- 8/31/2021

Fund

 

Ticker

 

Distribution

 

Change From Prior

Distribution

BlackRock Capital Allocation Trust*

 

BCAT

 

$0.104100

 

* In order to comply with the requirements of Section 19 of the Investment Company Act of 1940, as amended (the “1940 Act”), each of the Funds noted above posted to the DTC bulletin board and sent to its shareholders of record as of the applicable record date a Section 19 notice with the previous distribution payment. The Section 19 notice was provided for informational purposes only and not for tax reporting purposes. This information can be found in the “Closed-End Funds” section of www.blackrock.com. As applicable, the final determination of the source and tax characteristics of all distributions in 2021 will be made after the end of the year.

BlackRock Resources & Commodities Strategy Trust (NYSE: BCX), BlackRock Enhanced Equity Dividend Trust (NYSE: BDJ), BlackRock Energy and Resources Trust (NYSE: BGR), BlackRock Enhanced International Dividend Trust (NYSE: BGY), BlackRock Health Sciences Trust (NYSE: BME), BlackRock Health Sciences Trust II (NYSE: BMEZ), BlackRock Enhanced Global Dividend Trust (NYSE: BOE), BlackRock Utilities, Infrastructure & Power Opportunities Trust (NYSE: BUI), BlackRock Enhanced Capital and Income Fund, Inc. (NYSE: CII), BlackRock Science and Technology Trust (NYSE: BST), BlackRock Science and Technology Trust II (NYSE: BSTZ), BlackRock Innovation and Growth Trust (NYSE: BIGZ), BlackRock Enhanced Government Fund, Inc. (NYSE: EGF) , BlackRock Debt Strategies Fund, Inc. (NYSE: DSU), BlackRock Floating Rate Income Strategies Fund, Inc. (NYSE:FRA), BlackRock Floating Rate Income Trust (NYSE:BGT), BlackRock Corporate High Yield Fund, Inc. (NYSE: HYT), BlackRock Credit Allocation Income Trust (NYSE: BTZ), BlackRock Limited Duration Income Trust (NYSE: BLW), BlackRock Core Bond Trust (NYSE:BHK), BlackRock Multi-Sector Income Trust (NYSE:BIT), and BlackRock Capital Allocation Trust (NYSE:BCAT) (collectively, the “Plan Funds”) have adopted a managed distribution plan (a “Plan”) to support a level distribution of income, capital gains and/or return of capital. The fixed amounts distributed per share are subject to change at the discretion of each Plan Fund’s Board of Directors/Trustees. Under its Plan, each Plan Fund will distribute all available investment income to its shareholders, consistent with its investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a monthly basis, each Plan Fund will distribute long-term capital gains and/or return capital to its shareholders in order to maintain a level distribution.

The Funds’ estimated sources of the distributions paid this month and for their current fiscal year are as follows:

Estimated Allocations as of July 30, 2021

 

 

 

Fund

Distribution

Net Income

Net Realized Short-

Term Gains

Net Realized Long-

Term Gains

Return of Capital

BCX1

$0.040000

$0.015657 (39%)

$0 (0%)

$0 (0%)

$0.024343 (61%)

BDJ

$0.050000

$0 (0%)

$0 (0%)

$0.050000 (100%)

$0 (0%)

BGR1

$0.037500

$0 (0%)

$0 (0%)

$0 (0%)

$0.037500 (100%)

BGY1

$0.033800

$0 (0%)

$0 (0%)

$0.033800 (100%)

$0 (0%)

BME

$0.200000

$0.009083 (5%)

$0 (0%)

$0.190917 (95%)

$0 (0%)

BMEZ

$0.145000

$0 (0%)

$0.145000 (100%)

$0 (0%)

$0 (0%)

BOE

$0.063000

$0.007326 (12%)

$0.041332 (66%)

$0.014342 (22%)

$0 (0%)

BUI1

$0.121000

$0 (0%)

$0 (0%)

$0.039965 (33%)

$0.081035 (67%)

CII

$0.093000

$0.008796 (9%)

$0 (0%)

$0.084204 (91%)

$0 (0%)

BST

$0.226000

$0 (0%)

$0 (0%)

$0.226000 (100%)

$0 (0%)

BSTZ

$0.171000

$0 (0%)

$0 (0%)

$0.171000 (100%)

$0 (0%)

BIGZ1

$0.100000

$0 (0%)

$0 (0%)

$0 (0%)

$0.100000 (100%)

EGF1

$0.041000

$0.026174 (64%)

$0 (0%)

$0 (0%)

$0.014826 (36%)

DSU1

$0.060500

$0.050590 (84%)

$0 (0%)

$0 (0%)

$0.009910 (16%)

FRA1

$0.066700

$0.054921 (82%)

$0 (0%)

$0 (0%)

$0.011779 (18%)

BGT1

$0.064700

$0.053621 (83%)

$0 (0%)

$0 (0%)

$0.011079 (17%)

HYT1

$0.077900

$0.063740 (82%)

$0 (0%)

$0 (0%)

$0.014160 (18%)

BTZ1

$0.083900

$0.068684 (82%)

$0 (0%)

$0 (0%)

$0.015216 (18%)

BLW1

$0.098100

$0.084942 (87%)

$0 (0%)

$0 (0%)

$0.013158 (13%)

BHK

$0.074600

$0.074600 (100%)

$0 (0%)

$0 (0%)

$0 (0%)

BIT1

$0.123700

$0.095107 (77%)

$0 (0%)

$0 (0%)

$0.028593 (23%)

BCAT1

$0.104100

$0.051617 (50%)

$0.043283 (42%)

$0.000002 (0%)

$0.009198 (8%)

Estimated Allocations for the Fiscal Year through July 30, 2021

Fund

Distribution

Net Income

Net Realized Short-

Term Gains

Net Realized Long-

Term Gains

Return of Capital

BCX1

$0.280000

$0.132616 (47%)

$0 (0%)

$0 (0%)

$0.147384 (53%)

BDJ

$0.350000

$0.227004 (65%)

$0 (0%)

$0.122996 (35%)

$0 (0%)

BGR1

$0.262500

$0.122304 (47%)

$0 (0%)

$0 (0%)

$0.140196 (53%)

BGY1

$0.236600

$0.097316 (41%)

$0 (0%)

$0.135440 (57%)

$0.003844 (2%)

BME

$1.400000

$0.014153 (1%)

$0.015410 (1%)

$1.370437 (98%)

$0 (0%)

BMEZ

$0.925000

$0 (0%)

$0.925000 (100%)

$0 (0%)

$0 (0%)

BOE

$0.441000

$0.125325 (28%)

$0.059123 (13%)

$0.256552 (59%)

$0 (0%)

BUI1

$0.847000

$0.132357 (16%)

$0 (0%)

$0.190491 (22%)

$0.524152 (62%)

CII

$0.618000

$0.038685 (6%)

$0 (0%)

$0.579315 (94%)

$0 (0%)

BST

$1.504000

$0 (0%)

$0 (0%)

$1.504000 (100%)

$0 (0%)

BSTZ

$1.085000

$0 (0%)

$0.249743 (23%)

$0.835257 (77%)

$0 (0%)

BIGZ1

$0.200000

$0 (0%)

$0 (0%)

$0 (0%)

$0.200000 (100%)

EGF1

$0.246000

$0.174339 (71%)

$0 (0%)

$0 (0%)

$0.071661 (29%)

DSU1

$0.363000

$0.332887 (92%)

$0 (0%)

$0 (0%)

$0.030113 (8%)

FRA1

$0.400200

$0.360067 (90%)

$0 (0%)

$0 (0%)

$0.040133 (10%)

BGT1

$0.388200

$0.347709 (90%)

$0 (0%)

$0 (0%)

$0.040491 (10%)

HYT1

$0.467400

$0.405872 (87%)

$0 (0%)

$0 (0%)

$0.061528 (13%)

BTZ1

$0.503400

$0.470275 (93%)

$0 (0%)

$0 (0%)

$0.033125 (7%)

BLW1

$0.588600

$0.545842 (93%)

$0 (0%)

$0 (0%)

$0.042758 (7%)

BHK

$0.447600

$0.447600 (100%)

$0 (0%)

$0 (0%)

$0 (0%)

BIT1

$1.113300

$0.776578 (70%)

$0 (0%)

$0 (0%)

$0.336722 (30%)

BCAT1

$0.728700

$0.234788 (32%)

$0.155973 (21%)

$0.000002 (0%)

$0.337937 (47%)

1The Fund estimates that it has distributed more than its income and net-realized capital gains in the current fiscal year; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income’. When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share.

The amounts and sources of distributions reported are only estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Fund Performance and Distribution Rate Information:

 

 

Trust

Average annual total

return (in relation to

NAV) for the 5-year

period ending on

6/30/2021

Annualized current

distribution rate

expressed as a

percentage of NAV as of

6/30/2021

Cumulative total return

(in relation to NAV)

for the fiscal year through

6/30/2021

Cumulative fiscal year

distributions as a

percentage of NAV as of

6/30/2021

BCX

8.92%

4.85%

20.22%

2.42%

BDJ

11.22%

5.75%

15.22%

2.87%

BGR

(1.05)%

4.42%

27.87%

2.21%

BGY

9.25%

5.93%

8.87%

2.96%

BME

14.57%

5.03%

7.29%

2.51%

BMEZ*

62.50%

5.72%

1.79%

2.56%

BOE

9.71%

5.69%

11.67%

2.85%

BUI

10.83%

5.84%

7.60%

2.92%

CII

15.80%

5.21%

15.17%

2.45%

BST

32.87%

4.85%

10.02%

2.28%

BSTZ*

137.55%

4.78%

13.65%

2.13%

BIGZ*

(0.65)%

6.07%

(0.65)%

0.51%

EGF

1.66%

3.79%

(1.14)%

1.58%

DSU

7.38%

6.19%

4.26%

2.58%

FRA

5.87%

5.71%

4.06%

2.38%

BGT

5.70%

5.71%

4.11%

2.38%

HYT

10.48%

7.61%

6.14%

3.17%

BTZ

8.64%

6.43%

2.56%

2.68%

BLW

8.43%

6.87%

4.17%

2.86%

BHK

7.62%

5.54%

0.57%

2.31%

BIT

9.97%

8.01%

10.88%

5.34%

BCAT*

12.85%

5.73%

6.69%

2.86%

* Portfolio launched within the past 5 years; the performance and distribution rate information presented for this Fund reflects data from inception to 6/30/2021.

Shareholders should not draw any conclusions about a Fund’s investment performance from the amount of the Fund’s current distributions or from the terms of the Fund’s Plan.

BKT has adopted a Plan whereby beginning August 2018 the Fund will make fixed monthly distributions to common stockholders and will distribute all available net income to its stockholders, consistent with its investment objective and as required by the Code. The fixed amount distributed per share is subject to change at the discretion of BKT’s Board. If sufficient net income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain a level distribution. The Fund is currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund expects that distributions under the Plan will exceed current income and capital gains and therefore will likely include a return of capital. BKT may make additional distributions from time to time, including additional capital gain distributions at the end of the taxable year, if required to meet requirements imposed by the Code and/or the 1940 Act.

BKT’s estimated sources of the distributions paid as of July 30, 2021 and for its current fiscal year are as follows:

Estimated Allocations as of July 30, 2021

 

 

Fund

Distribution

Net Income

Net Realized

Short-Term Gains

Net Realized

Long-Term Gains

Return of Capital

 

BKT

$0.034400

$0.023796 (69%)

$0 (0%)

$0 (0%)

$0.010604 (31%)

 

Estimated Allocations for the Fiscal Year through July 30, 2021

 

 

Fund

Distribution

Net Income

Net Realized

Short-Term Gains

Net Realized

Long-Term Gains

Return of Capital

 

BKT

$0.206400

$0.170516 (83%)

$0 (0%)

$0 (0%)

$0.035884 (17%)

 

The amounts and sources of distributions reported are only estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon BKT’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. BKT will send its stockholders a Form 1099-DIV for the calendar year that will illustrate how to report these distributions for federal income tax purposes.

Fund Performance and Distribution Rate Information:

 

Fund

Average annual total

return (in relation to

NAV) for the 5-year

period ending on

6/30/2021

Annualized current

distribution rate

expressed as a percentage

of NAV as of 6/30/2021

Cumulative total return

(in relation to NAV) for

the fiscal year through

6/30/2021

Cumulative fiscal year

distributions as a

percentage of NAV as

6/30/2021

BKT

3.05%

6.89%

(0.31)%

2.87%

No conclusions should be drawn about BKT’s investment performance from the amount of the Fund’s distributions or from the terms of the Fund’s Plan.

The amount distributed per share under a Plan is subject to change at the discretion of the applicable Fund’s Board. Each Plan will be subject to ongoing review by the Board to determine whether the Plan should be continued, modified or terminated. The Board may amend the terms of a Plan or suspend or terminate a Plan at any time without prior notice to the Fund’s shareholders if it deems such actions to be in the best interest of the Fund or its shareholders. The amendment or termination of a Plan could have an adverse effect on the market price of the Fund’s shares.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this release.

Forward-Looking Statements

This press release, and other statements that BlackRock or a Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to a Fund’s or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

With respect to the Funds, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Funds or in a Fund’s net asset value; (2) the relative and absolute investment performance of a Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to a Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

Annual and Semi-Annual Reports and other regulatory filings of the Funds with the Securities and Exchange Commission (“SEC”) are accessible on the SEC’s website at www.sec.govand on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on BlackRock’s website is not a part of this press release.

BlackRock

1-800-882-0052

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

Smart Sand, Inc. Announces New Long-Term Proppant Supply Contract

THE WOODLANDS, Texas, Aug. 02, 2021 (GLOBE NEWSWIRE) — Smart Sand, Inc. (NASDAQ: SND) (the “Company”) announced today that it has entered into a new multi-year Master Product Purchase Agreement with EQT Production Company, a subsidiary of EQT Corporation (“EQT”).

Under the new agreement, the Company will continue to supply EQT with frac sand in the Appalachian Basin, including at a new transloading terminal in southwestern Pennsylvania that the Company intends to have in service by the end of the year. The agreement has a three-year term, subject to earlier termination if the new transloading terminal is not in service by the end of 2021.

Charles Young, Smart Sand’s Chief Executive Officer, stated, “We are extremely excited to be continuing our long-term relationship with EQT, one of our oldest and most reliable business partners. This new contract demonstrates our continued commitment to provide long-term, sustainable sand supply and logistics solutions to our customers. The Appalachian Basin is a key market for Smart Sand. We continue to work to build out our logistics capabilities, including this new terminal, to offer even greater efficiency to our customers while also providing ESG benefits by reducing trucking mileage and associated carbon emissions related to sand delivery.”

Forward-looking Statements

All statements in this news release other than statements of historical facts are forward-looking statements that contain our Company’s current expectations about our future results.  We have attempted to identify any forward-looking statements by using words such as “expect,” “will,” “estimate,” “believe” and other similar expressions.  Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements.

Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, continued effects of the global pandemic, changes in economic or political conditions, and such other factors discussed or referenced in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on March 3, 2021, and in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed by the Company with the SEC on May 4, 2021.

You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

About Smart Sand

We are a fully integrated frac sand supply and services company, offering complete mine to wellsite proppant logistics, storage and management solutions to our customers. We produce low-cost, high quality Northern White frac sand and offer proppant logistics, storage and management solutions to our customers through our in-basin transloading terminal and our SmartSystems™ wellsite proppant storage capabilities. We provide our products and services primarily to oil and natural gas exploration and production companies and oilfield service companies. We own and operate premium frac sand mines and related processing facilities in Wisconsin and Illinois, which have access to three Class I rail lines, allowing us to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com.

Investor Contacts

Josh Jayne
Director of Finance, Assistant Treasurer
(281) 231-2660
[email protected]

Lee Beckelman
Chief Financial Officer
(281) 231-2660
[email protected]