Market Newsdesk

May 12, 2021 4:08 pm

CPSI Announces the Acquisition of Medical Encoder Solutions Provider, TruCode LLC

CPSI Announces the Acquisition of Medical Encoder Solutions Provider, TruCode LLC

Acquisition Supports Core Growth Strategy, Expands Complementary Capabilities Across Revenue Cycle Management Solution Offering

TruCode LLC Transaction Highlights:

2020 revenues and adjusted EBITDA of $12.5 million and $5.9 million, respectively
2021 expected revenues and adjusted EBITDA of $13.3M and $6.3 million, respectively
99% of revenues are recurring
96.4% customer retention (3-year average)
5-year revenue CAGR of 8%
EBITDA margins of 45%+

MOBILE, Ala.–(BUSINESS WIRE)–
CPSI (NASDAQ: CPSI), a community healthcare solutions company, today announced that it has acquired TruCode LLC (“TruCode”). TruCode is a leading provider of software solutions that enable health providers, consultants, and payors to code more accurately and efficiently and help improve revenue cycle performance. The acquisition was consummated pursuant to a definitive purchase agreement signed on May 12, 2021 and was funded by a combination of cash on hand and additional borrowing capacity under CPSI’s revolving credit facility.

Based in Alpharetta, Georgia, TruCode provides configurable, knowledge-based software that gives coders, CDI specialists and auditors the flexibility to code according to their knowledge, preferences and experience. The cloud-based medical coding solution will be bundled with the TruBridge solutions and services to enhance revenue cycle performance for healthcare organizations of all sizes.

Boyd Douglas, president and chief executive officer of CPSI, stated, “Today’s acquisition of TruCode is a perfect example of the disciplined approach to M&A we have signaled as part of our multi-pronged capital allocation strategy. TruCode’s solutions are a great product fit and complement our existing suite of TruBridge services and solutions, which help eliminate the friction of inefficiency from the hospital revenue cycle. In addition to the cross-sales opportunities within our acute and post-acute customer base, we will also target the white space within the TruBridge and TruCode base to drive additional value for these customers. Greater than 30% of TruCode’s revenue is driven by its channel partner program which targets larger hospital and health system customers, representing scalability and real competitive value in that market.”

“From a financial standpoint, TruCode’s 99% recurring revenue model, customer retention rates in excess of 95%, and Adjusted EBITDA margins in excess of 45% support our strategy of growing a more diverse recurring revenue base and driving margin expansion,” stated Matt Chambless, chief financial officer of CPSI. “The impressive margins that TruCode brings to the CPSI family of companies is expected to expand our consolidated EBITDA margins by roughly 130 bps, with the potential for another $1.0 million of adjusted EBITDA from capitalization of software development costs.”

Mike Mulligan, co-founder and managing partner of TruCode, said, “CPSI has been a strategic partner of TruCode for the last five years, and together we have achieved great success to the benefit of our mutual customers. Now, with this evolution of our partnership, we’re excited about the new value our combined organizations will deliver to our customers, the marketplace and our teams.”

Douglas concluded, “We are pleased to welcome TruCode to the CPSI family of companies. This acquisition strengthens our joint commitment to improving the financial health of our combined community hospital, clinic and post-acute customers and other healthcare organizations globally.”

CPSI’s legal advisor in this transaction was Maynard, Cooper & Gale, P.C. and Mazars USA served as due diligence provider for CPSI. Brentwood Capital Advisors LLC served as exclusive financial advisor to TruCode.

CPSI will hold a conference call and live webcast to discuss the details of this acquisition on Thursday, May 13, 2021, at 9:00 a.m. Central Time, 10:00 a.m. Eastern Time. The number to call for the interactive teleconference is 1-877-407-0890. To listen to the live webcast or access the 30-day online replay, visit the Company’s website, www.cpsi.com.

About CPSI

CPSI is a leading provider of healthcare solutions and services for community hospitals, their clinics and post-acute care facilities. Founded in 1979, CPSI is the parent of four companies – Evident, LLC, American HealthTech, Inc., TruBridge, LLC and iNetXperts, Corp. d/b/a Get Real Health. Our combined companies are focused on helping improve the health of the communities we serve, connecting communities for a better patient care experience, and improving the financial operations of our customers. Evident provides comprehensive EHR solutions for community hospitals and their affiliated clinics. American HealthTech is one of the nation’s largest providers of EHR solutions and services for post-acute care facilities. TruBridge focuses on providing business, consulting and managed IT services, along with its complete RCM solution, for all care settings. Get Real Health focuses on solutions aimed at improving patient engagement for individuals and healthcare providers. For more information, visit www.cpsi.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potential,” “may,” “continue,” “should,” “will” and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release concerning the business outlook, anticipated profitability, revenues, expenses, leverage or other items of future financial performance, and potential product or services growth, of TruCode or CPSI, together with other statements regarding TruCode and CPSI that are not historical facts, are forward-looking statements. We caution investors that any such forward-looking statements are only predictions reflecting the best judgment of CPSI based upon currently available information and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause CPSI’s actual results, performance or plans with respect to TruCode to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. Such factors may include: risks associated with business acquisition transactions, such as the risk that TruCode will not be integrated successfully, that such integration may be more difficult, time-consuming or costly than expected or that the expected benefits of the acquisition will not occur; unexpected costs, liabilities, charges or expenses resulting from the acquisition of TruCode; risks related to future opportunities and plans for CPSI and TruCode following the acquisition, including uncertainty of the expected financial performance and results of CPSI following the closing of the acquisition; any disruptions from the acquisition, making it more difficult to conduct business as usual or maintain relationships with customers, employees or suppliers; the inability to retain key personnel; and the possibility that if CPSI does not achieve the perceived benefits of the acquisition as rapidly or to the extent anticipated by financial analysts or investors, the market price of CPSI’s common stock could decline; and other risk factors described from time to time in our public releases and reports filed with theSecurities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005932/en/

Tracey Schroeder

Chief Marketing Officer

[email protected]

(251) 639-8100

KEYWORDS: United States North America Alabama

INDUSTRY KEYWORDS: Data Management Health Technology Hospitals Practice Management Software

MEDIA:

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Posted on May 12, 2021 4:08 pm
Exicure, Inc. Reports First Quarter 2021 Financial Results and Corporate Progress

Exicure, Inc. Reports First Quarter 2021 Financial Results and Corporate Progress

— Company Advances Clinical and Pre-Clinical Pipeline Designed to Bring Therapies to Patients With Unmet Medical Needs—

CHICAGO & CAMBRIDGE, Mass.–(BUSINESS WIRE)–
Exicure, Inc.^® (NASDAQ: XCUR), a pioneer in gene regulatory and immunotherapeutic drugs utilizing spherical nucleic acid (SNA™) technology, today reported financial results for the quarter ended March 31, 2021 and provided an update on corporate progress.

“Exicure is off to a strong start in 2021, as we continue to advance our clinical and pre-clinical programs and add depth to our Board of Directors and management team,” commented Dr. David Giljohann, Exicure’s Chief Executive Officer. “In the first quarter, cavrotolimod (AST-008) was granted two Fast Track designations and an Orphan Drug designation from the U.S. Food and Drug Administration. We also strengthened our Board of Directors with the appointments of Mr. James Sulat, Dr. Elizabeth Garofalo, and Mr. Andrew Sassine, and added expertise to our management team with the additions of Ms. Rebecca Peterson, VP, Investor Relations & Corporate Communications and Ms. Sarah Longoria, VP, Human Resources. We believe we are well positioned to execute on upcoming clinical milestones and operational goals for the remainder of 2021.”

Pipeline Highlights

Immuno-Oncology – Cavrotolimod (AST-008)

The U.S. Food and Drug Administration (FDA) granted two Fast Track designations for cavrotolimod in January 2021:

Cavrotolimod in combination with anti-programmed death (PD)-1 or anti-PD ligand 1 (PD-L1) therapy for the treatment of patients with locally advanced or metastatic Merkel cell carcinoma (MCC), refractory to prior anti-PD-(L)1 blockade.

Cavrotolimod in combination with anti-PD-1 therapy for the treatment of patients with locally advanced or metastatic cutaneous squamous cell carcinoma (CSCC), refractory to prior anti-PD-1 blockade.

The FDA granted Orphan Drug designation for cavrotolimod for the treatment of patients with MCC in March 2021.

The Phase 1b/2 clinical trial of intra-tumoral cavrotolimod in combination with approved checkpoint inhibitors pembrolizumab or cemiplimab, for the treatment of patients with advanced or metastatic MCC or CSCC, is open and actively enrolling patients:

In the first quarter of 2021, the Company continued enrolling patients in the Phase 2 dose expansion stage of the Phase 1b/2 clinical trial.

As of April 22, 2021, 20 clinical trial sites are open for enrollment and seven additional sites are pending activation. The Company plans to open up to 30 sites for the Phase 2 stage of the clinical trial.

The Company expects to provide interim results from the Phase 2 portion of the clinical trial in mid-2021, and we expect to report overall response rate (ORR) results in the first half of 2022.

Neurology – XCUR-FXN

The Company hosted a virtual R&D Day in January 2021 to discuss progress within its neurology pipeline, which included an overview of the Company’s XCUR-FXN path to clinical validation for the treatment of Friedreich’s Ataxia (FA).

During the first quarter of 2021, the Company continued to advance preclinical and IND-enabling studies of XCUR-FXN in FA and disclosed encouraging preclinical mouse data, demonstrating significant upregulation of XCUR-FXN components in the brain and spinal cord. The Company believes these data support the potential for XCUR-FXN as a disease-modifying treatment for the disease.

The Company is on track with prior guidance to submit an IND for XCUR-FXN in FA by year-end 2021 and expects to initiate a first-in-patient Phase 1b clinical trial of XCUR-FXN in FA in the first half of 2022.

First Quarter Financial Results and Financial Guidance

Cash Position: Cash, cash equivalents and short-term investments were $67.4 million as of March 31, 2021 compared to $82.1 million as of December 31, 2020.

Research and Development (R&D) Expenses: R&D expenses were $10.3 million for the quarter ended March 31, 2021, compared to $6.1 million for the quarter ended March 31, 2020. The Company has increased full-time headcount in R&D from 36 at March 31, 2020 to 54 at March 31, 2021. The increase in R&D expense reflects this increased headcount and the related increase in R&D activities, in addition to increased clinical trial activities.

General and Administrative Expenses: General and administrative expenses were $2.9 million for the quarter ended March 31, 2021, compared to $2.6 million for the quarter ended March 31, 2020. This increase is primarily due to costs related to new hires needed to grow the Company as it evolves.

Net Loss: Exicure had a net loss of $12.5 million for the quarter ended March 31, 2021 compared to net income of $1.2 million for the quarter ended March 31, 2020. The increase in net loss was primarily driven by lower revenue associated with Exicure’s collaboration with AbbVie as well as higher R&D costs to advance our pipeline.

Cash Runway Guidance: The Company believes that, based on its current operating plans and estimates of future expenses, as of the date of this press release, its existing cash, cash equivalents and short-term investments will be sufficient to fund its operations for at least the next 12 months.

About Friedreich’s Ataxia (FA)

FA is a rare, degenerative, life-shortening neuro-muscular disorder that affects children and adults, and involves the loss of strength and coordination usually leading to wheelchair use, diminished vision, hearing and speech, scoliosis, increased risk of diabetes, and a life-threatening heart condition. There are currently no FDA-approved treatments. The Company estimates that approximately 13,000 patients across the United States, Europe, Canada and Australia are affected by FA.

About Exicure, Inc.

Exicure, Inc. is a clinical-stage biotechnology company developing therapeutics for neurology, immuno-oncology, inflammatory diseases and other genetic disorders based on its proprietary Spherical Nucleic Acid, or SNA technology. Exicure believes that its proprietary SNA architecture has distinct chemical and biological properties that may provide advantages over other nucleic acid therapeutics and may have therapeutic potential to target diseases not typically addressed with other nucleic acid therapeutics. Exicure is in preclinical development of XCUR-FXN a lipid-nanoparticle SNA–based therapeutic candidate, for the intrathecal treatment of Friedreich’s ataxia (FA). Exicure’s therapeutic candidate cavrotolimod (AST-008) is in a Phase 1b/2 clinical trial in patients with advanced solid tumors. Exicure is based in Chicago, IL and in Cambridge, MA.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact should be deemed forward looking including, but not limited to, statements regarding the design, timing and results of the Company’s Phase 1b/2 clinical trial of cavrotolimod (AST-008) including patient enrollment expectations and opening of additional clinical trial sites; the initiation, timing and results of its other preclinical studies and clinical trials, including XCUR-FXN; the potential of the Company’s SNA technology to provide therapeutic benefit to target diseases, including its ability to address the genetic challenges posed by Friedreich’s ataxia and other neurological conditions; the potential of the Company’s collaborations and R&D efforts; the Company’s ability to advance its clinical and preclinical pipeline to benefit patients with unmet medical need; the Company’s expectations with respect to its continued growth; and the Company’s anticipated cash runway. The forward-looking statements in this press release speak only as of the date of this press release, and the Company undertakes no obligation to update these forward-looking statements. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the risks that the ongoing COVID-19 pandemic or its impact or effects may disrupt the Company’s business and/or the global healthcare system (including its supply chain) more severely than it has to date or more severely than anticipated, which may have the effect of further impacting or delaying the Company’s ongoing Phase 1b/2 clinical trial of cavrotolimod (AST-008); unexpected costs, charges or expenses that reduce the Company’s capital resources; the Company’s preclinical or clinical programs do not advance or result in approved products on a timely or cost effective basis or at all; the cost, timing and results of clinical trials; that many drug candidates do not become approved drugs on a timely or cost effective basis or at all; the ability to enroll patients in clinical trials; possible safety and efficacy concerns; regulatory developments; risks that preliminary results from clinical trials are not necessarily predictive of future clinical trial results; and the ability of the Company to protect its intellectual property rights. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, see the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as updated by the Company’s subsequent filings with the Securities and Exchange Commission.

EXICURE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

March 31,

2021

December 31,

2020

ASSETS

Current assets:

Cash and cash equivalents……………………………………………………………………………….

$

34,296

$

33,262

Short-term investments……………………………………………………………………………………

33,140

48,818

Accounts receivable………………………………………………………………………………………..

—

11

Prepaid expenses and other assets……………………………………………………………………

6,551

4,231

Total current assets……………………………………………………………………………………………

73,987

86,322

Property and equipment, net………………………………………………………………………………

4,092

4,123

Right-of-use asset……………………………………………………………………………………………..

8,443

8,606

Other noncurrent assets……………………………………………………………………………………..

1,426

1,393

Total assets…………………………………………………………………………….

$

87,948

$

100,444

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable……………………………………………………………………………………………

$

2,976

$

1,866

Accrued expenses and other current liabilities………………………………………………….

2,441

3,525

Deferred revenue, current………………………………………………………………………………..

7,346

8,343

Total current liabilities………………………………………………………………………………………

12,763

13,734

Long-term debt, net…………………………………………………………………………………………..

16,659

16,589

Lease liability, noncurrent

7,829

7,959

Other noncurrent liabilities………………………………………………………………………………..

656

656

Total liabilities………………………………………………………………………………………………….

$

37,907

$

38,938

Stockholders’ equity:

Preferred stock, $0.0001 par value per share; 10,000,000 shares authorized, no shares issued and outstanding, March 31, 2021 and December 31, 2020…

—

—

Common stock, $0.0001 par value per share; 200,000,000 shares authorized, 87,993,598 issued and outstanding, March 31, 2021; 87,651,352 issued and outstanding, December 31, 2020…………………………………………………….

9

9

Additional paid-in capital………………………………………………………………………………….

168,442

167,379

Accumulated other comprehensive income (loss)………………………………………………..

32

83

Accumulated deficit………………………………………………………………………………………….

(118,442

)

(105,965

)

Total stockholders’ equity………………………………………………………………………………….

50,041

61,506

Total liabilities and stockholders’ equity

$

87,948

$

100,444

EXICURE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

Three Months Ended

March 31,

2021

2020

Revenue:

Collaboration revenue……………………………………………………………………………………………………….

$

997

$

9,183

Total revenue……………………………………………………………………………………………………….

997

9,183

Operating expenses:

Research and development expense……………………………………………………………………………………………………….

10,262

6,075

General and administrative expense……………………………………………………………………………………………………….

2,892

2,574

Total operating expenses……………………………………………………………………………………………………….

13,154

8,649

Operating (loss) income……………………………………………………………………………………………………….

(12,157

)

534

Other (expense) income, net:

Dividend income……………………………………………………………………………………………………….

1

39

Interest income……………………………………………………………………………………………………….

88

360

Interest expense……………………………………………………………………………………………………….

(409

)

(128

)

Other income, net……………………………………………………………………………………………………….

—

345

Total other (expense) income, net……………………………………………………………………………………………………….

(320

)

616

Net (loss) income before provision for income taxes……………………………………………………………………………………………………….

(12,477

)

1,150

Provision for income taxes……………………………………………………………………………………………………….

—

—

Net (loss) income……………………………………………………………………………………………………….

$

(12,477

)

$

1,150

Basic (loss) earnings per common share……………………………………………………………………………………………………….

$

(0.14

)

$

0.01

Diluted (loss) earnings per common share……………………………………………………………………………………………………….

$

(0.14

)

$

0.01

Weighted-average basic common shares outstanding……………………………………………………………………………………………………….

87,852,378

87,079,160

Weighted-average diluted common shares outstanding……………………………………………………………………………………………………….

87,852,378

88,244,632

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005906/en/

Exicure Contact:

Rebecca Peterson

VP, Head of Investor Relations & Corporate Communications

617-678-5711

[email protected]

Media Contact:

Karen Sharma

MacDougall

781-235-3060

[email protected]

KEYWORDS: United States North America Illinois Massachusetts

INDUSTRY KEYWORDS: Research Genetics Clinical Trials Biotechnology Other Health Health Pharmaceutical General Health Science

MEDIA:

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Posted on May 12, 2021 4:08 pm
SES Selects Amdocs to Provide End-to-End Testing Automation Framework

Combining agile and DevOps processes with testing automation and smart analytics, the Amdocs Quality Engineering end-to-end framework will drive faster time to market for SES

ST. LOUIS, May 12, 2021 (GLOBE NEWSWIRE) — Amdocs (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today announced SES, a world-leading content connectivity solutions provider, has selected Amdocs Quality Engineering’s end-to-end testing framework in order to automate SES’s end-to-end flow validation process.

Under the deal, Amdocs will assist SES with multi-purpose activities such as design, architecture, integration, quality engineering and scrum on demand for its end-to-end service orchestration solution based on the cloud-native Amdocs Service & Network Automation platform. The Amdocs Quality Engineering framework and related services will provide SES with the ability to automate their end-to-end flow validation and build a test automation solution using Amdocs’ patented automation framework for continuous integration/continuous deployment (CI/CD) implementations.

“SES is committed to providing our customers with a fast time to market and high product quality for our different connectivity services,” said Ruy Pinto, CTO at SES. “Automating our end-to-end testing is an important step in ensuring we can faster and better serve all our different customers.”

“We have enjoyed a successful collaboration with SES in the network orchestration domain, and we are delighted to expand our engagement to the automated testing realm, where Amdocs is a recognized industry leader,” said Ronen Levkovich, president, Amdocs Global Services. “In today’s market, operators must be able to ensure high quality and top performance across all their applications so as to provide their end users with a steady stream of new and compelling services.”

Supporting Resources

Learn more about Amdocs Quality Engineering Services

Keep up with Amdocs news by visiting the company’s website

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 27,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Our cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020. For more information, visit Amdocs at www.amdocs.com.

Amdocs’ Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2020 filed on December 14, 2020 and our Form 6-K furnished for the first quarter of fiscal 2021 on February 16, 2021.

Media Contacts:

Nicholas Boulton
Amdocs Public Relations
Tel: +44 (0) 7896931335
E-Mail: [email protected]

Paul Campbell
Babel PR for Amdocs
Tel: +44 (0)20 7434 5552
E-mail: [email protected]

Posted on May 12, 2021 4:08 pm
KLDiscovery Inc. Announces First Quarter 2021 Financial Results

KLDiscovery Inc. Announces First Quarter 2021 Financial Results

Company Continues Transformation of Comprehensive Platform

MCLEAN, Va.–(BUSINESS WIRE)–
KLDiscovery Inc. (“KLDiscovery” or the “Company”), a leading global provider of electronic discovery, information governance and data recovery services, announced today that revenue for the first quarter ended March 31, 2021 was $75.5 million versus $78.3 million in the first quarter of 2020, a decrease of 3.6%. Net loss for the first quarter of 2021 was $14.9 million compared to $12.5 million in the first quarter of 2020, a change of 18.6%.

EBITDA for the first quarter of 2021 was $15.1 million versus $12.5 million in the first quarter of 2020, an increase of 20.9%. Adjusted EBITDA (which excludes management fees and stock-based compensation, change in fair value of warrants, acquisition financing and transaction costs and other items as described below) for the first quarter of 2021 was $15.4 million compared to $15.0 million in the first quarter of 2020, an increase of 2.4%. Reconciliations of EBITDA and Adjusted EBITDA to their comparable GAAP measure are shown in detail below, along with definitions for those terms.

“Our first quarter 2021 results are approaching, and in some cases exceeding, our pre-pandemic levels achieved in the first quarter of 2020. This is truly a testament to the hard work of the global KLD team,” said Christopher Weiler, CEO of KLDiscovery Inc. “Revenue increased for the third consecutive quarter. In the fourth quarter of 2020, we recorded our lowest quarterly net loss in four years of $9.8 million. In the first quarter, 2021 our net loss was $14.9 million which included the negative impact of a $7.2 million charge in connection with the extinguishment of debt. This refinancing activity had the positive effect of lowering our amortization payments from $17 million to $3 million annually. Our $15.1 million EBITDA in the first quarter of 2021 was our best-ever. Both first quarter EBITDA and Adjusted EBITDA improved in the first quarter of 2021 compared to the first quarter of 2020 and increased as a percentage of revenue as well. We ended the first quarter of 2021 with $47.8 million in cash and cash equivalents and nothing drawn on our $40 million revolving credit facility. This is a $26.2 million improvement in cash and cash equivalents over the first quarter of 2020. We improved cash flow from operations by 76.5% compared to the first quarter of 2020 due to continued high cash receipts and cost reductions.”

Mr. Weiler continued, “We have an enormous amount of momentum and steadfast commitment from the entire global team at KLD to transform the company’s already successful product and service offering. I am pleased with the significant progress we are making by incorporating input from our clients and prospects to further improve our full suite of proprietary software/hardware products and services. We are well on our way in executing our strategic plan to make KLD’s technology platform, including the Nebula Ecosystem, accessible wherever, and however, the client desires. We are actively pursuing the expansion of our total addressable market beyond eDiscovery and data recovery needs of our customers by continuing to build upon, and capitalize on, the powerful combination of our unparalleled technology and commitment to customer service.”

Year 2019-2021 Quarterly Results – Unaudited

2020 (unaudited)

2021 (unaudited)

Q1

Q2

Q3

Q4

Q1

Revenue

78.3

64.4

72.3

74.6

75.5

Net loss

(12.5

)

(14.9

)

(12.7

)

(9.8

)

(14.9

)

Net loss per share (basic and diluted)
$

(0.29

)

$

(0.35

)

$

(0.30

)

$

(0.23

)

$

(0.35

)

Weighted average outstanding shares (basic and diluted)

42.5

42.5

42.5

42.5

42.6

EBITDA

12.5

10.4

12.3

14.3

15.1

Adjusted EBITDA

15.0

12.2

16.7

19.4

15.4

(in millions except per share data)

2021 Outlook

As previously announced, KLDiscovery is currently limited in its ability to accurately predict what the financial impact will be from the COVID-19 pandemic. KLDiscovery is not providing full-year 2021 guidance until it gains additional data points about the total operational impact of this global pandemic.

Earnings Conference Call

Management will conduct a conference call at 8:30 AM ET on Thursday, May 13, 2021 to discuss results for the first quarter of 2021. The audio portion of the conference call will be broadcast live over the Internet in the Investors section of KLDiscovery’s website https://investors.kldiscovery.com.

To join the conference call by telephone, please register via the following link: http://www.directeventreg.com/registration/event/1096198

Once registered, you will receive an email with Direct Entry and Registrant ID along with dial-in details. An audio recording of the conference call will be available for replay shortly after the call’s completion and will remain available for two weeks following the call. To access the recorded conference call, please dial (800) 585-8367 (from the U.S. and Canada) or (416) 621-4642 (from all other countries) using access code 1096198 or visit the Investors section of the KLDiscovery website at https://investors.kldiscovery.com.

KLDiscovery Inc.

Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share amounts)

Three Months Ended March 31,

2021

2020

(unaudited)

Revenues
$

75,450

$

78,271

Cost of revenues

37,422

39,520

Gross profit

38,028

38,751

Operating expenses

General and administrative

15,440

15,853

Research and development

2,171

1,667

Sales and marketing

9,457

11,645

Depreciation and amortization

7,641

8,916

Total operating expenses

34,709

38,081

Income from operations

3,319

670

Other expenses

Other expense

14

28

Change in fair value of warrants

(1,969

)

–

Interest expense

12,257

12,962

Loss on debt extinguishment

7,257

–

Loss before income taxes

(14,240

)

(12,320

)

Income tax provision

616

206

Net loss
$

(14,856

)

$

(12,526

)

Other comprehensive loss, net of tax

Foreign currency translation

(2,462

)

(4,428

)

Total other comprehensive loss, net of tax

(2,462

)

(4,428

)

Comprehensive loss
$

(17,318

)

$

(16,954

)

Net loss per share – basic and diluted
$

(0.35

)

$

(0.29

)

Weighted average shares outstanding – basic and diluted

42,532,915

42,529,017

In Q1 2021, the Company determined that the 6,350,000 Private Warrants issued in connection with the consummation of the Business Combination in December 2019 should be accounted for as liabilities in accordance with ASC 815-40. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of private warrants in the Consolidated Statement of Comprehensive Loss.

Reconciliation of Non-GAAP Financial Matters

(In thousands)

(Unaudited)

Three Months Ended March 31,

2021

2020

Net loss
$

(14,856

)

$

(12,526

)

Interest expense

12,257

12,962

Income tax (benefit) expense

616

206

Debt extinguishment costs

7,257

Depreciation and amortization expense

9,816

11,837

EBITDA
$

15,090

$

12,479

Acquisition, financing and transaction costs

782

85

Strategic initiatives:

Sign-on bonus amortization

—

189

Non-recoverable draw

—

303

Total strategic initiatives

—

492

Management fees, stock compensation and other

1,034

880

Change in fair value of warrants

(1,969

)

—

Restructuring costs

4

590

Systems establishment

427

485

Adjusted EBITDA
$

15,368

$

15,011

Note:

Acquisition, financing and transaction costs include earn-out valuation changes, rating agency fees, letter of credit and revolving facility fees, as well as professional service fees and direct expenses related to acquisitions.

Strategic initiatives include the costs resulting from pursuing strategic business opportunities.

Management fees, stock compensation & other includes consulting fees and expenses related to the Company’s stock compensation plan.

Change in fair value of warrants relates to changes in the fair market value of the private warrants issued in conjunction with the business combination.

Restructuring costs include non-ordinary course costs incurred in connection with a change in a contract or a change in the makeup of our personnel often related to an acquisition, such as severance payments, recruiting fees and retention charges.

Systems establishment costs relate to non-ordinary course expenses incurred to develop our IT infrastructure, including expenses related to IT infrastructure build-out, system automation and ERP implementation.

KLDiscovery Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

March 31, 2021

December 31, 2020

(Unaudited)

Current assets

Cash and cash equivalents
$

47,808

$

51,201

Accounts receivable, net of allowance

for doubtful accounts of $9,015 and $8,513, respectively

83,617

83,985

Prepaid expenses

12,090

7,175

Other current assets

690

709

Total current assets

144,205

143,070

Property and equipment

Computer software and hardware

72,689

72,211

Leasehold improvements

26,821

27,271

Furniture, fixtures and other equipment

3,316

3,365

Accumulated depreciation

(79,480

)

(77,697

)

Property and equipment, net

23,346

25,150

Intangible assets, net

104,458

109,733

Goodwill

397,292

399,085

Other assets

3,051

2,708

Total assets
$

672,352

$

679,746

Current liabilities

Current portion of long-term debt, net
$

3,000

$

10,948

Accounts payable and accrued expense

32,109

33,504

Current portion of contingent consideration

714

695

Deferred revenue

2,498

3,955

Total current liabilities

38,321

49,102

Long-term debt, net

494,335

472,600

Deferred tax liabilities

7,677

7,335

Other liabilities

9,889

8,488

Total liabilities

550,222

537,525

Commitments and contingencies

Stockholders’ equity

Common stock

$0.0001 par value, shares authorized – 200,000,000 shares authorized
as of March 31, 2021 and December 31, 2020; shares issued and
outstanding – 42,550,148 and 42,529,017 respectively

4

4

Preferred Stock

$0.0001 par value, 1,000,000 shares authorized,
zero shares issued and outstanding as of March 31, 2021 and
December 31, 2020, respectively

—

—

Additional paid-in capital

382,614

385,387

Treasury stock

—

—

Accumulated deficit

(270,280

)

(255,424

)

Accumulated other comprehensive income

9,792

12,254

Total stockholders’ equity

122,130

142,221

Total liabilities and stockholders’ equity
$

672,352

$

679,746

KLDiscovery Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

For The Three Months Ended March 31,

2021

2020

Operating activities

Net loss
$

(14,856

)

$

(12,526

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

9,816

11,837

Non-cash interest

4,815

4,507

Loss on extinguishment of debt

7,257

–

Stock-based compensation

978

825

Provision for losses on accounts receivable

972

784

Deferred income taxes

342

112

Change in fair value of contingent consideration

19

29

Change in fair value of warrants

(1,969

)

Changes in operating assets and liabilities:

Accounts receivable

(680

)

(7,487

)

Prepaid expenses and other assets

(5,087

)

(8,151

)

Accounts payable and accrued expenses

(2,986

)

(588

)

Deferred revenue

(1,436

)

(1,298

)

Net cash used in operating activities

(2,815

)

(11,956

)

Investing activities

Acquisitions, net of cash

—

(2,334

)

Purchases of property and equipment

(3,088

)

(2,767

)

Net cash used in investing activities

(3,088

)

(5,101

)

Financing activities

Revolving credit facility – draws

—

29,000

Revolving credit facility – repayments

—

—

Payments for capital lease obligations

(285

)

(224

)

Debt acquisition costs

(2,031

)

—

Proceeds long-term debt, net of original issue discount

294,000

—

Retirement of debt

(289,000

)

—

Payments on long-term debt

–

(4,250

)

Issuance of common stock

34

–

Net cash provided by financing activities

2,718

24,526

Effect of foreign exchange rates

(208

)

(265

)

Net increase in cash

(3,393

)

7,204

Cash at beginning of period

51,201

43,407

Cash at end of period
$

47,808

$

50,611

Supplemental disclosure:

Cash paid for interest
$

12,232

$

8,704

Income taxes paid, net of refunds
$

(591

)

$

(266

)

Significant noncash investing and financing activities

Purchases of property and equipment in accounts
payable and accrued expenses on the
consolidated balance sheets
$

682

$

931

About KLDiscovery

KLDiscovery provides technology-enabled services and software to help law firms, corporations, government agencies and consumers solve complex data challenges. The company has 33 locations, nine data centers and 18 data recovery labs across 18 countries and is a global leader in delivering best-in-class eDiscovery, information governance and data recovery solutions to support the litigation, regulatory compliance, internal investigation and data recovery and management needs of our clients. Serving clients for over 30 years, KLDiscovery offers data collection and forensic investigation, early case assessment, electronic discovery and data processing, application software and data hosting for web-based document reviews, and managed document review services. In addition, through its global Ontrack Data Recovery business, KLDiscovery delivers world-class data recovery, email extraction and restoration, data destruction and tape management. KLDiscovery has been recognized as one of the fastest growing companies in North America by both Inc. Magazine (Inc. 5000) and Deloitte (Deloitte’s Technology Fast 500) and CEO Chris Weiler was recognized as a 2014 Ernst & Young Entrepreneur of the Year™. Additionally, KLDiscovery is a Relativity Certified Partner and maintains ISO/IEC 27001 Certified data centers around the world. For more information, please email [email protected] or visit www.kldiscovery.com.

This press release includes “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding KLDiscovery’s future financial and business performance, attractiveness of KLDiscovery’s product offerings and platform and the value proposition of KLDiscovery’s products, are forward-looking statements. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside KLDiscovery’s management’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: KLDiscovery’s potential failure to comply with privacy and information security regulations governing the client datasets it processes and stores; the outbreak of disease or similar public health threat, such as COVID-19; KLDiscovery’s ability to operate in highly competitive markets, and potential adverse effects of this competition; risk of decreased revenues if KLDiscovery does not adapt its pricing models; the ability to deliver products and services following a disaster or business continuity event; potential disruption of KLDiscovery’s products, offerings, website and networks; the ability to attract, motivate and retain qualified employees, including members of KLDiscovery’s senior management team; the ability to maintain a high level of client service and expand operations; potential issues with KLDiscovery’s product offerings that could cause legal exposure, reputational damage and an inability to deliver services; KLDiscovery’s ability to develop new products, improve existing products and adapt its business model to keep pace with industry trends; risk that KLDiscovery’s products and services fail to interoperate with third-party systems; potential unavailability of third-party technology that KLDiscovery uses in its products and services; difficulties resulting from KLDiscovery’s implementation of new consolidated business systems; the ability to comply with various trade restrictions, such as sanctions and export controls, resulting from KLDiscovery’s international operations; potential intellectual property infringement claims; and KLDiscovery’s substantial indebtedness. These risks and other factors discussed in the “Risk Factors” section of KLDiscovery’s Annual Report on Form 10-K filed with the Securities Exchange Commission (“SEC”) and any other reports KLDiscovery files with the SEC could cause actual results to differ materially from those expressed or implied by forward-looking statements made by KLDiscovery or on our behalf.

Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All statements speak only as of the date made, and unless legally required, KLDiscovery undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

In addition to providing financial measurements based on accounting principles generally accepted in the United States of America (“GAAP”), this earnings press release includes additional financial measures that are not prepared in accordance with GAAP (“non-GAAP”), including EBITDA and Adjusted EBITDA. We believe that these measures are relevant and provide useful supplemental information to investors by providing a baseline for evaluation and comparing our operating performance against that of other companies in our industry.

The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies and in the future, we may disclose different non-GAAP financial measures in order to help our investors meaningfully evaluate and compare our results of operations to our previously reported results of operations or to those of other companies in our industry. We believe these non-GAAP financial measures reflect our ongoing operating performance because the isolation of non-cash charges, such as amortization and depreciation, and other items, such as interest, income taxes, management fees and equity compensation, acquisition and transaction costs, restructuring costs, systems establishment and costs associated with strategic initiatives which are incurred outside the ordinary course of our business, provides information about our cost structure and helps us to track our operating progress. We encourage investors and potential investors to carefully review the GAAP financial information and compare them with our EBITDA and adjusted EBITDA.

Adjusted EBITDA

We define EBITDA as net income (loss) plus interest (income) expense, income tax expense (benefit), depreciation and amortization. We view adjusted EBITDA as our operating performance measure and as such, we believe that the most directly comparable GAAP financial measure is net loss. In calculating adjusted EBITDA, we exclude from net loss certain items that we believe are not reflective of our ongoing business and exclusion of these items allows us to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions:

Acquisition, financing and transaction costs generally represented by non-ordinary course earn-out valuation changes, rating agency fees, letter of credit and revolving facility fees, as well as professional service fees and direct expenses related to acquisitions. Because we do not acquire businesses on a predictable cycle, we do not consider the amount of acquisition- and integration-related costs to be a representative component of the day-to-day operating performance of our business.

Strategic initiatives expenses relate to costs resulting from pursuing strategic business opportunities. We do not consider the amounts to be representative of the day-to-day operating performance of our business. Management fees, stock compensation and other primarily represents consulting fees and portion of compensation paid to our employees and executives through stock-based instruments. Determining the fair value of the stock-based instruments involves a high degree of judgment and estimation and the expenses recorded may not align with the actual value realized upon the future exercise or termination of the related stock-based awards. Therefore, we believe it is useful to exclude stock-based compensation to better understand the long-term performance of our core business.

Change in fair value of warrants relates to changes in the fair market value of the private warrants issued in conjunction with the business combination. We do not consider the amount to be representative of a component of the day-to-day operating performance of our business.

Restructuring costs generally represent non-ordinary course costs incurred in connection with a change in a contract or a change in the makeup of our personnel often related to an acquisition. We do not consider the amount of restructuring costs to be a representative component of the day-to-day operating performance of our business.

Systems establishment costs relate to non-ordinary course expenses incurred to develop our IT infrastructure, including system automation and enterprise resource planning system implementation. We do not consider the amount to be representative of a component of the day-to-day operating performance of our business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005869/en/

Investor Contacts:

Dawn Wilson

(703) 520-1498

[email protected]

Richard Simonelli

(410) 200-1967

[email protected]

Media Contact:

Krystina Jones

(888) 811-3789

[email protected]

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS: Data Management Professional Services Legal Technology Software

MEDIA:

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Posted on May 12, 2021 4:08 pm
Cal-Maine Foods, Inc. Acquires Remaining Interest in Red River Valley Egg Farm, LLC

Cal-Maine Foods, Inc. Acquires Remaining Interest in Red River Valley Egg Farm, LLC

JACKSON, Miss.–(BUSINESS WIRE)–
Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that the Company has reached a definitive agreement to purchase the remaining 50 percent membership interest in Red River Valley Egg Farm, LLC from Rose Acre Farms, Inc. The entity will become a wholly owned subsidiary of the Company. The purchase price is $48.5 million for the balance of the joint venture’s membership interests. Red River Valley Egg Farm, LLC owns and operates a specialty shell egg production complex with approximately 1.7 million laying hens, pullet capacity, feed mill, processing plant, related offices and outbuildings and related equipment located on approximately 400 acres near Bogata, Texas. The Company expects to close the transaction by the end of the month, subject to customary closing conditions.

Commenting on the announcement, Dolph Baker, chairman and chief executive officer of Cal-Maine Foods, Inc., stated, “We have enjoyed a good working relationship with Rose Acre Farms since we formed this partnership and are pleased to assume full ownership of Red River Valley Egg Farm. When it commenced operations in 2015, Red River Valley Egg Farm significantly increased the availability of cage-free and other specialty eggs to meet the growing consumer demand for those products, and we look forward to continuing to support our valued customers in this important region. Red River Valley Egg Farm’s experienced management team will remain in place and be integrated into Cal-Maine’s already deep roots in Texas. We believe this transaction will offer us additional opportunities to expand our production capacity and to meet the anticipated growing demand for cage-free and specialty eggs.”

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include, among others, (i) the risk factors set forth in the Company’s SEC filings (including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K), (ii) the risks and hazards inherent in the shell egg business (including disease, pests, weather conditions and potential for recall), (iii) changes in the demand for and market prices of shell eggs and feed costs, (iv) our ability to predict and meet demand for cage-free and other specialty eggs, (v) risks, changes or obligations that could result from our future acquisition of new flocks or businesses and risks or changes that may cause conditions to completing a pending acquisition not to be met,(vi) risks relating to the evolving COVID-19 pandemic, and (vii) adverse results in pending litigation matters. SEC filings may be obtained from the SEC or the Company’s website, www.calmainefoods.com. Readers are cautioned not to place undue reliance on forward-looking statements because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. Further, the forward-looking statements included herein are only made as of the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, we disclaim any intent or obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005792/en/

Dolph Baker, Chairman and CEO

Max P. Bowman, Vice President and CFO

(601) 948-6813

KEYWORDS: United States North America Mississippi

INDUSTRY KEYWORDS: Retail Agriculture Natural Resources Food/Beverage

MEDIA:

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Posted on May 12, 2021 4:08 pm
Evolus Reports First Quarter 2021 Results and Provides Business Update

Q1 2021 Net Revenues of $12.2 million, Despite Half-Quarter ITC Impact

Full Resolution of International Trade Commission (ITC) Case

Restructured Balance Sheet with March 31, 2021 Pro Forma Cash Position of $140 million
¹

On Track for a $100 million Annual Net Revenue Run Rate in Q2 2021

NEWPORT BEACH, Calif., May 12, 2021 (GLOBE NEWSWIRE) — Evolus, Inc. (Nasdaq: EOLS), a performance beauty company with a customer-centric approach focused on delivering breakthrough products, today provided a business update and reported financial results for the first quarter 2021.

“The first quarter was defined by three major events starting with the resolution of the ITC case, recapitalization of our balance sheet with pro forma cash of $140 million as of March 31, 2021¹ and the strong bounce back of our U.S. Jeuveau^® business since settlement in mid-February 2021. The combination of these events is building momentum across our business. We believe Jeuveau^® is on track to achieve an annualized net revenue run rate of $100 million in the second quarter of 2021,” said David Moatazedi, President and Chief Executive Officer.

First Quarter 2021 and Recent Corporate Developments

Strong first quarter 2021 commercial performance evidenced by:

Jeuveau^® net revenues of $12.2 million, up 16% from the first quarter of 2020, with the majority of revenues recorded in the second half of the quarter.

Increased Jeuveau^® purchasing account base to over 5,800 accounts with re-order rates achieving an all-time high of 73%² in the first quarter of 2021.

Robust adoption of the company’s customer loyalty program with approximately 160,000 consumers enrolled within the first year of the program³.

Continued leverage of proprietary digital platform with the majority of orders in the first quarter of 2021 originating from the Evolus Practice App.

Reached settlement agreements with Allergan, Medytox and Daewoong to fully resolve all outstanding litigation among the companies regarding the sale of Jeuveau^®, including the ITC case.

Restructured the company balance sheet through the elimination of $127.4 million in debt and future milestone payments.

Recapitalized the business by raising $92.1 million in net proceeds after discounts, commissions and estimated expenses from a public offering of common stock.

Publication of our two, phase II repeat, long-term, open-label studies in the peer reviewed Aesthetic Surgery Journal.

First Quarter 2021 Financial Results

$12.2 million in total net revenues for the first quarter of 2021, an increase of $1.7 million or 16.2% from $10.5 million in the first quarter of 2020. First quarter 2021 net revenue was impacted by reduced sales during the ITC bond period which lasted approximately half of the quarter.

GAAP gross margin and adjusted gross margin were 262.3% and 59.9%, respectively, for the first quarter of 2021.

GAAP operating expenses were $4.2 million for the first quarter 2021, reflecting the contribution of a $25.5 million settlement payment from Daewoong and lower selling, general and administrative expenses.

Non-GAAP operating expenses were $24.8 million for the first quarter 2021, a decrease of $8.6 million or 25.7% from $33.4 million for the first quarter 2020 as the company conserved cash prior to settlement of the ITC case and related litigation.

GAAP income from operations was $8.0 million for the first quarter 2021, including $25.5 million related to the settlement payment from Daewoong.

Cash and cash equivalents as of March 31, 2021 were $22.2 million.

Pro forma cash position at March 31, 2021 was $140 million¹.

The company had approximately 54.1 million shares of common stock outstanding as of May 7, 2021.

Financial Outlook

The Allergan/Medytox Settlement Agreements announced in February 2021 and the settlement agreement with Daewoong announced in March 2021 are expected to temporarily reduce the company’s gross margin profile through September 2022. Following September 2022, the company expects its U.S. gross margin percentage will return to the levels seen in fiscal year 2020.

The company anticipates 2021 full year adjusted gross margin percentage will be between 50% and 55%, calculated as total net revenues less product cost of sales, as a percentage of net revenues. The non-GAAP gross margin percentage outlook excludes the $25.5 million settlement payment received in April 2021 from Daewoong.

The company expects its March 31, 2021 pro forma cash position of $140 million¹ will fund its operations for at least the next 12 months.

Conference Call Information

Management will host a conference call and webcast to discuss Evolus’ financial results today at 4:30 p.m. ET. The dial-in numbers are +1 (866) 916-2317 for domestic callers and +1 (703) 925-2662 for international callers, and the conference ID is 7749489.

A replay of the call will be available following its completion through May 19, 2021. To access the replay, dial +1 (855) 859-2056 for domestic callers and +1 (404) 537-3406 for international callers and use the replay conference ID 7749489.

A live audio webcast of the call will be available on the Investor Relations page of the Evolus, Inc. website, investors.evolus.com. A replay of the webcast will be archived on Evolus’ website for 30 days following the completion of the call.

About Evolus, Inc.

Evolus is a performance beauty company with a customer-centric approach focused on delivering breakthrough products. In 2019, the U.S. Food and Drug Administration approved Jeuveau^® (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure™ technology. Jeuveau^® is powered by Evolus’ unique technology platform and is designed to transform the aesthetic market by eliminating the friction points existing for customers today. Visit us at: www.evolus.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements that relate to the status of regulatory processes, future plans, events, prospects or performance and statements containing the words “plans,” “expects,” “believes,” “strategy,” “opportunity,” “anticipates,” “outlook,” “designed,” or other forms of these words or similar expressions, although not all forward-looking statements contain these identifying words. The company’s forward-looking statements include, but are not limited to, statements made by Mr. Moatazedi regarding the effect of recent events on the company’s trends, expectations about the company’s second quarter net revenues and the company’s financial outlook related to its gross margin profile. Forward-looking statements are based on current estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict.

Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include uncertainties associated with our ability to address all of our losses, costs, expenses, liabilities and damages resulting from the settlement agreement with Daewoong and our ability to comply with the terms and conditions in the Allergan/Medytox Settlement Agreements, including the effect on our pricing, discounts we may offer to our customers and the volume of purchases by our customers, the continued impact of COVID-19 on our business and the economy generally, uncertainties related to customer and consumer adoption of Jeuveau^®, the efficiency and operability of our digital platform, competition and market dynamics, and our ability to maintain regulatory approval of Jeuveau^® and other risks described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission on March 25, 2021, which is available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Evolus undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events. If the company does update or revise one or more of these statements, investors and others should not conclude that the company will make additional updates or corrections.

Use of Non-GAAP Financial Measures

Evolus’ financial results are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release and the reconciliation tables included in the financial schedules below include adjusted gross margin, non-GAAP operating expenses and non-GAAP loss from operations. Adjusted gross margin is defined as total net revenues less product cost of sales, excluding amortization of intangible assets and one-time settlement payment from Daewoong, as a percentage of net revenues. The non-GAAP measures exclude, as applicable, (i) one-time settlement payment from Daewoong, (ii) one-time litigation settlement items related to the ITC case, (iii) the revaluation of contingent royalty obligations, (iv) stock-based compensation expense, and (v) depreciation and amortization. Management believes that adjusted gross margin is an important measure for investors because management uses adjusted gross margin as key performance indicator to evaluate the profitability of sales. Management believes that non-GAAP operating expenses and non-GAAP loss from operations are useful in helping to identify the company’s core operating performance and enables management to consistently analyze the period-to-period financial performance of the core business operations. Management also believes that non-GAAP operating expenses, and non-GAAP loss from operations, will enable investors to assess the company in the same way that management has historically assessed the company’s operating expenses against comparable companies with conventional accounting methodologies. The company’s definitions of adjusted gross margin, non-GAAP operating expenses and non-GAAP loss from operations have limitations as an analytical tool and may differ from other companies reporting similarly named measures. Non-GAAP measures should not be considered measures of financial performance under GAAP, and the items excluded from such non-GAAP measures should not be considered in isolation or as alternatives to financial statement data presented in the financial statements as an indicator of financial performance or liquidity. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results.

For a reconciliation of our historical adjusted gross margin, non-GAAP operating expenses and non-GAAP loss from operations presented herein to GAAP operating expenses and GAAP loss from operations, the most directly comparable GAAP financial measures, please see “Reconciliation of GAAP Gross Margin to Adjusted Gross Margin” and “Reconciliation of GAAP Operating Expenses and GAAP Income (Loss) from Operations to Non-GAAP Operating Expenses and Non-GAAP (Loss) from Operations” in the financial schedules below.

Jeuveau^® is a registered trademark and Nuceiva™ is a trademark of Evolus, Inc.
Hi-Pure™ is a trademark of Daewoong Pharmaceutical Co, Ltd

^{1 Represents March 31, 2021 cash and cash equivalents of $22.2 million, plus $25.5 million of cash received from Daewoong in April 2021 and $92.1 million in net proceeds after discounts, commissions and estimated expenses received from a public offering of Evolus common stock in April 2021.}

^{2 Represents cumulative statistics from the launch of Jeuveau® in May 2019.}

^{3 Represents cumulative statistics from the launch of Evolus Rewards in May 2020 through May 10, 2021.}

Evolus, Inc. Contacts:

Investor Contact:

Lauren Silvernail, Evolus, Inc.
Chief Financial Officer and EVP Corporate Development
Tel: +1-949-284-4726
Email: [email protected]

Media Contact:

Crystal Muilenburg, Evolus, Inc.
Chief Marketing Officer
Tel: +1-949-284-4506
Email: [email protected]

Evolus, Inc.

Statements of Operations and Comprehensive Income (Loss)

(Unaudited, in thousands, except income (loss) per share data)

Three Months Ended

March 31,

2021 2020

Revenue:

Product revenue, net $ 12,241 $ 10,496

Operating expenses:

Product cost of sales (excludes amortization of intangible assets) 4,908 4,219

Settlement payment from Daewoong (25,500 ) —

Selling, general and administrative 20,677 31,300

Research and development 841 507

Revaluation of contingent royalty obligation payable to Evolus Founders 1,268 (9,884 )

Depreciation and amortization 2,033 1,749

Total operating expenses 4,227 27,891

Income (loss) from operations 8,014 (17,395 )

Other income (expense):

Interest income — 374

Interest expense (645 ) (2,458 )

Loss from extinguishment of debts, net (968 ) —

Income (loss) before income taxes: 6,401 (19,479 )

Income tax expense — 256

Net income (loss) $ 6,401 $ (19,735 )

Other comprehensive gain (loss):

Unrealized gain on available-for-sale securities, net of tax — 219

Comprehensive income (loss) $ 6,401 $ (19,516 )

Net income (loss) per share, basic $ 0.17 $ (0.59 )

Net income (loss) per share, diluted $ 0.16 $ (0.59 )

Weighted-average shares outstanding used to compute basic net income (loss) per share 37,101 33,720

Weighted-average shares outstanding used to compute diluted net income (loss) per share 41,105 33,720

Evolus, Inc.

Summary of Balance Sheet Data

(Unaudited, in thousands)

March 31, 2021 December 31, 2020

Balance Sheet Data:

Cash and cash equivalents $ 22,171 $ 102,562

Short-term investments — 5,000

Total cash, cash equivalents and short-term investments $ 22,171 $ 107,562

Working capital $ (9,931 ) $ (52,636 )

Total assets $ 157,198 $ 209,068

Total current liabilities $ 87,648 $ 180,248

Total liabilities $ 133,909 $ 282,026

Accumulated deficit $ (369,671 ) $ (376,072 )

Total stockholders’ equity (deficit) $ 23,289 $ (72,958 )

Evolus, Inc.

Reconciliation of GAAP Gross Margin to Adjusted Gross Margin

(in thousands)

Three Months Ended

March 31,

2021 2020

Revenue, net $ 12,241 $ 10,496

Cost of sales:

Product cost of sales (excludes amortization of intangible assets) 4,908 4,219

Settlement payment from Daewoong (25,500 ) —

Amortization of distribution right intangible asset 723 739

Total cost of sales $ (19,869 ) $ 4,958

GAAP gross margin 262.3 % 52.8 %

Adjusted gross margin 59.9 % 59.8 %

Evolus, Inc.

Reconciliation of GAAP Operating Expenses and GAAP Income (Loss) from Operations to

Non-GAAP Operating Expenses and Non-GAAP (Loss) from Operations

(in thousands)

Three Months Ended

March 31,

2021 2020

GAAP operating expense $ 4,227 $ 27,891

GAAP income (loss) from operations $ 8,014 $ (17,395 )

Adjustments:

Settlement payment from Daewoong (25,500 ) —

Revaluation of contingent royalty obligation payable to Evolus Founders 1,268 (9,884 )

Stock-based compensation:

Included in selling, general and administrative 1,576 2,540

Included in research and development 14 88

Depreciation and amortization 2,033 1,749

Non-GAAP operating expense $ 24,836 $ 33,398

Non-GAAP (loss) from operations $ (12,595 ) $ (22,902 )

Posted on May 12, 2021 4:08 pm
Amdocs Media’s Vubiquity Secures Multi-Year Content Licensing and Processing Agreement with Telefonica HispAm

ST. LOUIS, May 12, 2021 (GLOBE NEWSWIRE) — Vubiquity, part of the Amdocs (NASDAQ: DOX) Media Division and one of the leading global providers of premium content services and media technology solutions, today announced a multi-year agreement with Telefonica HispAm, the Telefόnica Group’s Latin American business. As part of this agreement, Vubiquity will provide content, licensing, and processing for the Movistar Play service in several markets, including Argentina, Chile, Colombia and Peru.

Vubiquity holds relationships with hundreds of content creators and distributors around the globe, bringing the latest release content from major studios, leading independents, library classics and a host of genre-based categories to provide viewers with compelling content choices from Telefonica HispAm’s Movistar Play service. As part of the service, Vubiquity will offer a full suite of content acquisition, curation, and management services to support Telefonica HispAm’s consumer platform.

Pablo de Cara, Director of Video, Partnerships and Brand for Telefónica HispAm, said: “We are delighted to expand and complement the successful engagement we already have with Amdocs Media’s Vubiquity in Brazil to provide the latest Hollywood and independent studio content to our HispAm customers. As the media market evolves, we are confident with our selection of Amdocs Media’s Vubiquity, who will continue to be a major part of the value we provide to our Movistar Play viewers.”

Darcy Antonellis, Head of Amdocs Media, said: “As part of our long-standing, successful relationship, we are very pleased to support Telefonica HispAm and their strategy to provide a tailor-made, best-in-class experience to Movistar Play viewers across Latin America.”

Supporting Resources

Learn more about the Amdocs Media and Digital Services portfolio

Keep up with Amdocs news by visiting the company’s website

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 27,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Our cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020. For more information, visit Amdocs at www.amdocs.com.

Amdocs’ Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2020 filed on December 14, 2020 and our Form 6-K furnished for the first quarter of fiscal 2021 on February 16, 2021.

Media Contact:

Michael Zema

Amdocs Public Relations

E-mail: [email protected]

Emily Holt

PAN Communications for Amdocs

Email: [email protected]

Posted on May 12, 2021 4:08 pm
Brightcove to Present at the Needham Virtual Technology & Media Conference

Brightcove to Present at the Needham Virtual Technology & Media Conference

BOSTON–(BUSINESS WIRE)–Brightcove Inc. (NASDAQ: BCOV), the global leader in video for business, today announced that its Chief Executive Officer, Jeff Ray, Chief Financial Officer, Rob Noreck, and Executive Vice President of Corporate Development, Michael Loria, will present at the Needham Virtual Technology & Media Conference.

The Brightcove presentation is scheduled for Wednesday, May 19, 2021 at 8:00 a.m. Eastern Time. A live webcast of the presentation will be available on the Events page of the Brightcove investor relations website at http://investor.brightcove.com/index.php/events-presentations. A replay of the webcast will also be available for a limited time.

About Brightcove

When video is done right, it can have a powerful and lasting effect. Hearts open. Minds change. Creativity thrives. Since 2004, Brightcove has been helping customers discover and experience the incredible power of video through its award-winning technology, empowering organizations in more than 70 countries across the globe to touch audiences in bold and innovative ways.

Brightcove achieves this by developing technologies once thought impossible, providing customer support without parallel or excuses, and leveraging the expertise and resources of a global infrastructure. Video is the world’s most compelling, exciting medium. Visit www.brightcove.com for more information. Video That Means Business.™

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005715/en/

Investor Contact:

ICR for Brightcove

Brian Denyeau, 646-277-1251

[email protected]

Media Contact:

Brightcove

Meredith Duhaime

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Audio/Video VoIP Mobile/Wireless Technology Telecommunications

MEDIA:

Posted on May 12, 2021 4:08 pm
TTM Technologies, Inc. Announces Retirement of Board Member and Appointment of a New Chairman

SANTA ANA, Calif., May 12, 2021 (GLOBE NEWSWIRE) — TTM Technologies, Inc. (NASDAQ: TTMI), a leading global printed circuit board (“PCB”) and radio frequency (“RF”) components and assemblies manufacturer, announced today that Robert E. Klatell has retired from his position as Chairman of the Board and Board member of TTM in accordance with TTM’s Corporate Governance Policy that proscribes a mandatory retirement for Directors at the age of 75. Mr. Klatell has served as a Director of our Company since September 2004 and our Chairman of the Board since May 2005.

TTM also announced that effective May 12, 2021, Rex D. Geveden has been appointed by the unanimous vote of the remaining Directors to serve as Chairman on the Company’s Board of Directors. Mr. Geveden has served as a Director on TTM’s board since 2018 and currently is the president and chief executive officer of BWX Technologies, Inc. (NYSE: BWXT), a $2.1 billion nuclear industrial conglomerate headquartered in Lynchburg, VA. Previously, Mr. Geveden was executive vice president at Teledyne Technologies Incorporated, a provider of electronic subsystems and instrumentation for aerospace, defense and other uses. Mr. Geveden is a former Associate Administrator of the National Aeronautics and Space Administration (“NASA”), where he was responsible for all technical operations within the agency’s $16 billion portfolio and served in various other positions with NASA in a career spanning 17 years. Mr. Geveden holds both a bachelor’s and master’s degrees in physics from Murray State University.

“We are very appreciative of the exceptional service of Rob Klatell over the years. We have benefitted immeasurably from his leadership as the Board’s Chairman and his many other contributions to the success of TTM, particularly as we strengthened our company through strategic acquisitions and divestitures aimed at further differentiating our leading position in the PCB industry,” said Tom Edman, President and CEO of TTM. “We are also pleased to have Rex take the helm as our next Chairman. His extensive background in industrial technology, coupled with his experience in the aerospace and defense sector, will bolster the Board’s capabilities as we look forward to the future for TTM.”

After Mr. Klatell’s retirement and Mr. Geveden’s appointment, TTM’s Board will consist of eight directors, seven of whom are independent under NASDAQ rules.

About TTM

TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs and backplane assemblies as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. TTM stands for time-to-market, representing how TTM’s time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market. Additional information can be found at www.ttm.com.

Contact:

Sameer Desai
Senior Director, Corporate Development & Investor Relations
TTM Technologies, Inc.
+1 714 327 3050
[email protected]

Posted on May 12, 2021 4:08 pm
Jack in the Box Inc. Reports Second Quarter FY 2021 Earnings; Provides Fiscal 2021 Guidance; Announces 10 Percent Increase in Quarterly Cash Dividend

Jack in the Box Inc. Reports Second Quarter FY 2021 Earnings; Provides Fiscal 2021 Guidance; Announces 10 Percent Increase in Quarterly Cash Dividend

SAN DIEGO–(BUSINESS WIRE)–
Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the second quarter ended April 11, 2021 and provided fiscal year 2021 financial guidance.

Jack in the Box^® total revenues increased 19 percent to $257.2 million, compared to $216.2 million in the comparable period ended April 12, 2020, driven by 20.6 percent growth in system same-store sales. Company same-store sales increased 14.5 percent in the second quarter, reflecting average check growth of 19.9 percent and a 5.4 percent decrease in transactions. Franchise same-store sales increased 21.3 percent.

Increase/(Decrease) in same-store sales:

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Company

14.5%

(4.1)%

10.4%

(0.1)%

Franchise

21.3%

(4.2)%

16.5%

(0.9)%

System

20.6%

(4.2)%

15.9%

(0.8)%

Net earnings more than tripled to $35.9 million, or $1.58 per diluted share, for the second quarter of fiscal 2021, compared with $11.5 million, or $0.50 per diluted share, for the second quarter of fiscal 2020, which was negatively impacted due to the initial onset of COVID-19.

Darin Harris, chief executive officer, said, “Consumers continue to embrace Jack in the Box’s iconic all-day menu and continuous menu innovations, driving growth across every day-part. A shift toward our core premium entrees, combined with an increase in items per order reflecting larger parties, fueled a nearly-20 percent increase in average check. Our performance was strong across all regions throughout the quarter, including in Texas where pandemic dine-in restrictions were lifted much earlier than in our other large markets. Stimulus payments also contributed to our strong performance during the last four weeks of the quarter.”

Harris continued, “We are off to a good start through the first four weeks of the third quarter, giving us confidence that our key strategies continue to resonate with guests and position us to maintain momentum while we work closely with our franchisees to grow.”

Operating Earnings Per Share⁽¹⁾, a non-GAAP measure, were $1.48 in the second quarter of fiscal 2021 compared with $0.50 in the prior year quarter. A reconciliation of non-GAAP Operating Earnings Per Share to GAAP results is provided below, with additional information included in the attachment to this release.

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Diluted earnings per share – GAAP

$

1.58

$

0.50

$

3.78

$

0.82

Gains on the sale of company-operated restaurants

(0.05

)

—

(0.09

)

(0.05

)

Excess tax benefits from share-based compensation arrangements

(0.05

)

(0.01

)

(0.05

)

—

Pension settlement charges

—

0.01

—

1.14

Gain on sale of corporate office building

—

—

—

(0.32

)

Restructuring charges

—

—

—

0.03

Operating Earnings Per Share – non-GAAP (1)

$

1.48

$

0.50

$

3.64

$

1.62

Adjusted EBITDA⁽²⁾, a non-GAAP measure, was $75.8 million in the second quarter of fiscal 2021 compared with $46.3 million for the prior year quarter.

Restaurant-Level Margin⁽³⁾, a non-GAAP measure, increased to 25.9 percent of company restaurant sales in the second quarter of fiscal 2021 from 20.6 percent a year ago. The increase is primarily due to sales leverage as well as a decrease in food and packaging costs as a percentage of company restaurant sales. This decrease is primarily driven by favorable changes in product mix and menu price increases, partially offset by higher costs for ingredients. Commodity costs increased in the quarter by approximately 1.7 percent, primarily due to increases in pork and oil, partially offset by a decrease in beef. The decrease in food and packaging costs was partially offset by higher labor costs, resulting from wage inflation of 6.3%, as well as higher incentive compensation costs and higher costs for delivery fees.

Franchise-Level Margin⁽³⁾, a non-GAAP measure, increased by $17.2 million in the second quarter, primarily driven by higher royalties and rental revenues as a result of higher franchise same-store sales. Franchise-Level Margin⁽³⁾, as a percentage of total franchise revenues, was 42.0 percent in the second quarter of fiscal 2021 compared with 38.6 percent in the prior year.

In the second quarter of fiscal 2021, SG&A expenses decreased by $5.3 million and were 7.3 percent of revenues compared with 11.2 percent in the prior year quarter. Advertising costs, which are included in SG&A, increased $0.8 million in the second quarter due to higher company restaurant sales and a reduction in the contribution rate in the prior year quarter.

As a percentage of system-wide sales, G&A was 1.6 percent in the second quarter of fiscal 2021 compared with 2.7 percent in the prior year quarter. The $6.1 million decrease in G&A, which excludes advertising, was primarily driven by:

Mark-to-market changes in the cash surrender value of company-owned life insurance (“COLI”) policies, net of a deferred compensation obligation supported by these policies, resulting in a $5.9 million year-over-year decrease in G&A;

a decrease of $2.1 million in insurance costs; and

a decrease of $1.9 million in costs related to litigation matters versus prior year.

These decreases were partially offset by a $2.3 million increase in incentive compensation.

The effective tax rate for the second quarter of fiscal 2021 was 27.3 percent compared with 32.3 percent in the prior year quarter. The lower rate in the quarter was primarily due to a decrease in the impact of certain non-deductible expenses and an increase in non-taxable gains related to COLI policies.

Capital Allocation

The company repurchased 0.6 million shares of its common stock in the second quarter of fiscal 2021 for an aggregate cost of $65.0 million. As of April 11, 2021, $135.0 million remained available under share repurchase programs authorized by the Board of Directors, consisting of $35.0 million that expires in November 2021 and $100.0 million that expires in November 2022. During the second quarter of 2021, the Company fully paid down its outstanding borrowings on its Variable Funding Notes. As of April 11, 2021, borrowing availability under the Variable Funding Notes was $110.5 million.

The company also announced today that on May 7, 2021, its Board of Directors declared a cash dividend of $0.44 per share on the company’s common stock, representing a 10 percent increase from the prior dividend rate. The dividend is payable on June 11, 2021, to shareholders of record at the close of business on May 26, 2021.

Fiscal Year 2021 Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the fiscal year ending October 3, 2021, which includes 53 weeks:

High single-digit system same-store sales growth

G&A as a percentage of system-wide sales of approximately 1.7%, excluding net COLI gains or losses

Commodity cost inflation of approximately 3%

Labor cost inflation of 5% to 6%

Adjusted EBITDA of between approximately $320 million and $330 million, including approximately $6 million to $7 million benefit from the 53rd week.

Conference Call

The company will host a conference call for financial analysts and investors on Wednesday, May 12, 2021, beginning at 2:00 p.m. PT (5:00 p.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box Inc. corporate website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 5:00 p.m. PT on May 12, 2021.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box^®restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. For more information on Jack in the Box, including franchising opportunities, visit www.jackinthebox.com.

__________________

(1) Operating Earnings Per Share represents diluted earnings per share on a GAAP basis excluding gains or losses on the sale of company-operated restaurants, restructuring charges, gain on sale of corporate office building, pension settlement charges, and the excess tax benefit from share-based compensation arrangements. See “Reconciliation of Non-GAAP Measurements to GAAP Results.” Operating earnings per share may not add due to rounding.

(2) Adjusted EBITDA represents net earnings on a GAAP basis excluding income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, impairment and other charges, net, depreciation and amortization, the amortization of franchise tenant improvement allowances and other, and pension settlement charges. See “Reconciliation of Non-GAAP Measurements to GAAP Results.”

(3) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings from operations, the most comparable GAAP measure, in the attachment to this release. See “Reconciliation of Non-GAAP Measurements to GAAP Results.”

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the potential impacts to our business and operations resulting from the coronavirus COVID-19 pandemic, the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to reduce G&A and operate efficiently; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the company’s brand; increased regulatory and legal complexities, including federal, state and local policies regarding mitigation strategies for controlling the coronavirus COVID-19 pandemic, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

(Unaudited)

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Revenues:

Company restaurant sales

$

85,962

$

74,380

$

200,240

$

179,744

Franchise rental revenues

77,901

69,885

181,650

165,969

Franchise royalties and other

47,231

37,764

106,879

90,230

Franchise contributions for advertising and other services

46,123

34,128

106,989

87,887

257,217

216,157

595,758

523,830

Operating costs and expenses, net:

Food and packaging

23,938

22,237

56,315

53,585

Payroll and employee benefits

26,440

24,261

61,371

56,151

Occupancy and other

13,349

12,570

31,184

28,528

Franchise occupancy expenses

48,904

48,341

114,073

112,858

Franchise support and other costs

3,341

2,971

6,614

7,647

Franchise advertising and other services expenses

47,104

35,734

109,799

90,958

Selling, general and administrative expenses

18,861

24,203

39,360

52,451

Depreciation and amortization

10,696

12,282

25,267

29,010

Impairment and other charges (gains), net

1,228

716

776

(8,575

)

Gains on the sale of company-operated restaurants

(1,532

)

—

(2,815

)

(1,575

)

192,329

183,315

441,944

421,038

Earnings from operations

64,888

32,842

153,814

102,792

Other pension and post-retirement expenses, net

203

512

474

39,490

Interest expense, net

15,227

15,409

35,962

35,351

Earnings before income taxes

49,458

16,921

117,378

27,951

Income taxes

13,524

5,458

30,585

8,591

Net earnings

$

35,934

$

11,463

$

86,793

$

19,360

Earnings per share:

Basic

$

1.58

$

0.50

$

3.80

$

0.83

Diluted

$

1.58

$

0.50

$

3.78

$

0.82

Weighted-average shares outstanding:

Basic

22,723

22,803

22,863

23,339

Diluted

22,784

22,895

22,945

23,490

Dividends declared per common share

$

0.40

$

0.40

$

0.80

$

0.80

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

April 11,

2021

September 27,

2020

ASSETS

Current assets:

Cash

$

90,637

$

199,662

Restricted cash

18,137

37,258

Accounts and other receivables, net

86,721

78,417

Inventories

2,158

1,808

Prepaid expenses

6,784

10,114

Current assets held for sale

3,883

4,598

Other current assets

3,703

3,724

Total current assets

212,023

335,581

Property and equipment:

Property and equipment, at cost

1,144,503

1,132,430

Less accumulated depreciation and amortization

(812,489

)

(796,448

)

Property and equipment, net

332,014

335,982

Other assets:

Operating lease right-of-use assets

914,010

904,548

Intangible assets, net

262

277

Goodwill

47,161

47,161

Deferred tax assets

71,167

72,322

Other assets, net

214,138

210,623

Total other assets

1,246,738

1,234,931

$

1,790,775

$

1,906,494

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Current maturities of long-term debt

$

850

$

818

Current operating lease liabilities

153,297

179,000

Accounts payable

24,695

31,105

Accrued liabilities

123,550

129,431

Total current liabilities

302,392

340,354

Long-term liabilities:

Long-term debt, net of current maturities

1,271,412

1,376,913

Long-term operating lease liabilities, net of current portion

792,183

776,094

Other long-term liabilities

205,345

206,494

Total long-term liabilities

2,268,940

2,359,501

Stockholders’ deficit:

Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued

—

—

Common stock $0.01 par value, 175,000,000 shares authorized, 82,510,007 and 82,369,714 issued, respectively

825

824

Capital in excess of par value

496,798

489,515

Retained earnings

1,704,766

1,636,211

Accumulated other comprehensive loss

(108,640

)

(110,605

)

Treasury stock, at cost, 60,287,482 and 59,646,773 shares, respectively

(2,874,306

)

(2,809,306

)

Total stockholders’ deficit

(780,557

)

(793,361

)

$

1,790,775

$

1,906,494

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

28 Weeks Ended

April 11,

2021

April 12,

2020

Cash flows from operating activities:

Net earnings

$

86,793

$

19,360

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

Depreciation and amortization

25,267

29,010

Amortization of franchise tenant improvement allowances and other

1,534

1,765

Deferred finance cost amortization

3,013

3,046

Excess tax benefit from share-based compensation arrangements

(1,112

)

(77

)

Deferred income taxes

(882

)

6,783

Share-based compensation expense

2,836

5,865

Pension and post-retirement expense

474

39,490

(Gains) losses on cash surrender value of company-owned life insurance

(9,352

)

3,150

Gains on the sale of company-operated restaurants

(2,815

)

(1,575

)

Gains on the disposition of property and equipment, net

(1,931

)

(10,170

)

Non-cash operating lease costs

(11,870

)

(13,118

)

Impairment charges and other

1,340

133

Changes in assets and liabilities, excluding acquisitions:

Accounts and other receivables

(4,490

)

(22,858

)

Inventories

(288

)

28

Prepaid expenses and other current assets

3,461

(10,350

)

Accounts payable

(14,614

)

20,660

Accrued liabilities

6,499

1,400

Pension and post-retirement contributions

(3,577

)

(3,582

)

Franchise tenant improvement allowance disbursements

(567

)

(5,811

)

Other

(1,175

)

(4,222

)

Cash flows provided by operating activities

78,544

58,927

Cash flows from investing activities:

Purchases of property and equipment

(22,928

)

(12,777

)

Proceeds from the sale of property and equipment

3,629

22,394

Proceeds from the sale and leaseback of assets

—

17,373

Proceeds from the sale of company-operated restaurants

965

1,575

Other

2,616

1,036

Cash flows (used in) provided by investing activities

(15,718

)

29,601

Cash flows from financing activities:

Borrowings on revolving credit facilities

—

111,376

Repayments of borrowings on revolving credit facilities

(107,875

)

(3,500

)

Principal repayments on debt

(415

)

(3,640

)

Debt issuance costs

—

(216

)

Dividends paid on common stock

(18,130

)

(18,466

)

Proceeds from issuance of common stock

4,340

3,559

Repurchases of common stock

(65,000

)

(155,576

)

Payroll tax payments for equity award issuances

(3,892

)

(4,442

)

Cash flows used in financing activities

(190,972

)

(70,905

)

Net (decrease) increase in cash and restricted cash

(128,146

)

17,623

Cash and restricted cash at beginning of period

236,920

151,561

Cash and restricted cash at end of period

$

108,774

$

169,184

JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

The following table presents certain income and expense items included in our condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA

(Unaudited)

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Revenues:

Company restaurant sales

33.4

%

34.4

%

33.6

%

34.3

%

Franchise rental revenues

30.3

%

32.3

%

30.5

%

31.7

%

Franchise royalties and other

18.4

%

17.5

%

17.9

%

17.2

%

Franchise contributions for advertising and other services

17.9

%

15.8

%

18.0

%

16.8

%

100.0

%

100.0

%

100.0

%

100.0

%

Operating costs and expenses, net:

Food and packaging (1)

27.8

%

29.9

%

28.1

%

29.8

%

Payroll and employee benefits (1)

30.8

%

32.6

%

30.6

%

31.2

%

Occupancy and other (1)

15.5

%

16.9

%

15.6

%

15.9

%

Franchise occupancy expenses (2)

62.8

%

69.2

%

62.8

%

68.0

%

Franchise support and other costs (3)

7.1

%

7.9

%

6.2

%

8.5

%

Franchise advertising and other services expenses (4)

102.1

%

104.7

%

102.6

%

103.5

%

Selling, general and administrative expenses

7.3

%

11.2

%

6.6

%

10.0

%

Depreciation and amortization

4.2

%

5.7

%

4.2

%

5.5

%

Impairment and other charges (gains), net

0.5

%

0.3

%

0.1

%

(1.6

)%

Gains on the sale of company-operated restaurants

(0.6

)%

—

%

(0.5

)%

(0.3

)%

Earnings from operations

25.2

%

15.2

%

25.8

%

19.6

%

Income tax rate (5)

27.3

%

32.3

%

26.1

%

30.7

%

____________________________

(1)

As a percentage of company restaurant sales.

(2)

As a percentage of franchise rental revenues.

(3)

As a percentage of franchise royalties and other.

(4)

As a percentage of franchise contributions for advertising and other services.

(5)

As a percentage of earnings before income taxes.

Jack in the Box system sales (in thousands):

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Company-owned restaurant sales

$

85,962

$

74,380

$

200,240

$

179,744

Franchised restaurant sales (1)

847,363

695,926

1,963,189

1,675,271

System sales (1)

$

933,325

$

770,306

$

2,163,429

$

1,855,015

____________________________

(1)

Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. System sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and system restaurant sales information is useful to investors as they have a direct effect on the company’s profitability.

The following table summarizes the year-to-date changes in the number and mix of Jack in the Box company and franchise restaurants:

SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION

(Unaudited)

2021

2020

Company

Franchise

Total

Company

Franchise

Total

Beginning of year

144

2,097

2,241

137

2,106

2,243

New

—

6

6

—

16

16

Acquired from franchisees

4

(4

)

—

8

(8

)

—

Closed

—

(19

)

(19

)

(1

)

(12

)

(13

)

End of period

148

2,080

2,228

144

2,102

2,246

% of system

7

%

93

%

100

%

6

%

94

%

100

%

JACK IN THE BOX INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS

(Unaudited)

To supplement the consolidated financial statements, which are presented in accordance with GAAP, the company uses the following non-GAAP measures: Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin. Management believes that these measurements, when viewed with the company’s results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the company’s core business without regard to potential distortions.

Operating Earnings Per Share

Operating Earnings Per Share represents diluted earnings per share on a GAAP basis excluding gains or losses on the sale of company-operated restaurants, restructuring charges, the gain on sale of corporate office building, pension settlement charges, and the excess tax benefit from share-based compensation arrangements. Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Operating Earnings Per Share provides investors with a meaningful supplement of the company’s operating performance and period-over-period changes without regard to potential distortions.

Below is a reconciliation of non-GAAP Operating Earnings Per Share to the most directly comparable GAAP measure, diluted earnings per share. Figures may not add due to rounding.

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Diluted earnings per share – GAAP

$

1.58

$

0.50

$

3.78

$

0.82

Gains on the sale of company-operated restaurants

(0.05)

—

(0.09)

(0.05)

Excess tax benefits from share-based compensation arrangements

(0.05)

(0.01)

(0.05)

—

Pension settlement charges

—

0.01

—

1.14

Gain on sale of corporate office building

—

—

—

(0.32)

Restructuring charges

—

—

—

0.03

Operating Earnings Per Share – non-GAAP (1)

$

1.48

$

0.50

$

3.64

$

1.62

____________________

(1)

Operating Earnings Per Share may not add due to rounding.

Adjusted EBITDA

Adjusted EBITDA represents net earnings on a GAAP basis excluding income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, impairment and other charges (gains), net, depreciation and amortization, the amortization of franchise tenant improvement allowances and other, and pension settlement charges. Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Adjusted EBITDA is useful to investors to gain an understanding of the factors and trends affecting the company’s ongoing cash earnings, from which capital investments are made and debt is serviced.

Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings (in thousands).

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Net earnings – GAAP

$

35,934

$

11,463

$

86,793

$

19,360

Income tax expense

13,524

5,458

30,585

8,591

Interest expense, net

15,227

15,409

35,962

35,351

Pension settlement charges

—

321

—

38,927

Gains on the sale of company-operated restaurants

(1,532

)

—

(2,815

)

(1,575

)

Impairment and other charges (gains), net

1,228

716

776

(8,575

)

Depreciation and amortization

10,696

12,282

25,267

29,010

Amortization of franchise tenant improvement allowances and other

673

614

1,534

1,765

Adjusted EBITDA – Non-GAAP

$

75,750

$

46,263

$

178,102

$

122,854

Restaurant-Level Margin

Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, impairment and other charges (gains), net, gains or losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs. As such, Restaurant-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company’s core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-owned restaurants.

Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings from operations (in thousands):

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Earnings from operations – GAAP

$

64,888

$

32,842

$

153,814

$

102,792

Franchise rental revenues

(77,901

)

(69,885

)

(181,650

)

(165,969

)

Franchise royalties and other

(47,231

)

(37,764

)

(106,879

)

(90,230

)

Franchise contributions for advertising and other services

(46,123

)

(34,128

)

(106,989

)

(87,887

)

Franchise occupancy expenses

48,904

48,341

114,073

112,858

Franchise support and other costs

3,341

2,971

6,614

7,647

Franchise advertising and other services expenses

47,104

35,734

109,799

90,958

Selling, general and administrative expenses

18,861

24,203

39,360

52,451

Impairment and other charges (gains), net

1,228

716

776

(8,575

)

Gains on the sale of company-operated restaurants

(1,532

)

—

(2,815

)

(1,575

)

Depreciation and amortization

10,696

12,282

25,267

29,010

Restaurant-Level Margin- Non-GAAP

$

22,235

$

15,312

$

51,370

$

41,480

Company restaurant sales

$

85,962

$

74,380

$

200,240

$

179,744

Restaurant-Level Margin % – Non-GAAP

25.9

%

20.6

%

25.7

%

23.1

%

Franchise-Level Margin

Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, impairment and other charges (gains), net, and other costs that are considered normal operating costs. As such, Franchise-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company’s core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations.

Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from operations (in thousands):

12 Weeks Ended

28 Weeks Ended

April 11,

2021

April 12,

2020

April 11,

2021

April 12,

2020

Earnings from operations – GAAP

$

64,888

$

32,842

$

153,814

$

102,792

Company restaurant sales

(85,962

)

(74,380

)

(200,240

)

(179,744

)

Food and packaging

23,938

22,237

56,315

53,585

Payroll and employee benefits

26,440

24,261

61,371

56,151

Occupancy and other

13,349

12,570

31,184

28,528

Selling, general and administrative expenses

18,861

24,203

39,360

52,451

Impairment and other charges (gains), net

1,228

716

776

(8,575

)

Gains on the sale of company-operated restaurants

(1,532

)

—

(2,815

)

(1,575

)

Depreciation and amortization

10,696

12,282

25,267

29,010

Franchise-Level Margin – Non-GAAP

$

71,906

$

54,731

$

165,032

$

132,623

Franchise rental revenues

$

77,901

$

69,885

$

181,650

$

165,969

Franchise royalties and other

47,231

37,764

106,879

90,230

Franchise contributions for advertising and other services

46,123

34,128

106,989

87,887

Total franchise revenues

$

171,255

$

141,777

$

395,518

$

344,086

Franchise-Level Margin % – Non-GAAP

42.0

%

38.6

%

41.7

%

38.5

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005312/en/

Investor Contact:

Maria Hocut

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Retail Restaurant/Bar Food/Beverage

MEDIA:

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