Market Newsdesk

Operational Excellence a key driver of financial results

Waterstone Financial Declares Special Dividend

Eargo Reports Third Quarter 2020 Financial Results

Golden Leaf Holdings Announces First Cashflow-Positive Quarter and Record Quarterly Revenues

Summit Financial Group, Inc. Announces Q4 Dividend of $0.17 Per Share

Beacon Reports Fourth Quarter and Fiscal Year 2020 Results

Intuit First Quarter Revenue Grew 14 Percent; Company Provides Guidance for Fiscal 2021

Marathon to Participate in the “Operations and Investment into Mining” Panel at Bitmain’s Mining and Investment Summit 2020 on November 24th at 11:40 AM ET

GBAB Announces Effectiveness of Investment Policy Modifications and Name Change

Ceylon Graphite Announces Granting of Options and Debt Conversion

IIROC Trading Halt – IP

November 19, 2020 4:04 pm

WAUWATOSA, Wis., Nov. 19, 2020 (GLOBE NEWSWIRE) — On November 17, 2020 the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a special dividend of $0.30 per common share.

“This special dividend reflects our strong performance thus far during 2020, as well as our continued strong financial condition,” said Doug Gordon, CEO of Waterstone Financial, Inc. “While we have historically declared and paid a special dividend following the conclusion of a successful year, the magnitude of our year-to-date earnings has allowed us to accelerate the timing of this dividend, which would have otherwise been a component of our fiscal 2021 dividend plan. Our dedication to a robust dividend payout ratio demonstrates our commitment to delivering shareholder value and our continued efforts to actively manage our capital.”

The dividend is payable on December 8, 2020, to shareholders of record at the close of business on December 1, 2020.

About
Waterstone
Financial, Inc.

Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27^th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.

Contact:

Mark R. Gerke
Chief Financial Officer
414.459.4012
[email protected]

November 19, 2020 4:04 pm

Third Quarter
and Recent
Highlights:

Net revenues of $18.2 million, up 135.3% year-over-year
Gross systems shipped of 10,077, up 91.7% year-over-year
Return accrual rate of 25.2%, a 10.1 percentage point improvement year-over-year
Gross margin of 70.1%, up 16.5 percentage points year-over-year
Sales and marketing expense as a percent of net revenues of 67.9%, a 52.3 percentage point improvement year-over-year
Loss from operations of ($7.6) million, compared to ($12.0) million in the third quarter of 2019
Completed initial public offering of 9,029,629 shares of common stock on October 20, 2020, raising approximately $148 million in net proceeds

SAN JOSE, Calif., Nov. 19, 2020 (GLOBE NEWSWIRE) — Eargo, Inc. (Nasdaq: EAR), a medical device company on a mission to improve the quality of life of people with hearing loss, today reported its financial results for the third quarter ended September 30, 2020.

Christian Gormsen, President and CEO, said, “By all financial and operational measures, our performance in the third quarter of 2020 was very strong. Most importantly, we are helping more people hear better by offering both a revolutionary product and customer experience. Consumers continued to rapidly adopt our virtually invisible, rechargeable, completely-in-canal solution for hearing loss and our differentiated telecare model, which provides education, purchase and clinical support from the comfort and safety of home.”

“During the third quarter, we executed our strategy of efficient revenue growth through multi-channel marketing targeted at a diverse mix of consumers across cash pay, insurance and repeat customers. We expanded our national TV advertising, which built increased consumer awareness of Eargo while complementing our digital marketing to drive 91.7% year over year growth in gross systems shipped while leveraging sales and marketing spend. In addition, we delivered an improved customer return accrual rate and gross margin of 70.1%, all of which contributed to the continued scalability of our business.”

“We were also pleased to see hearing aid volumes sold through traditional brick and mortar clinics return to year-over-year growth in the third quarter, but even more pleased to see continued acceleration in our year-over-year gross systems shipped growth even as the clinics’ operations began to recover. We expect strong demand for Eargo as we head into the fourth quarter and holiday buying season, driving our expectation of approximately 97% full year 2020 net revenue growth. With approximately 43 million adults in the U.S. with hearing loss but only approximately 27% owning hearing aids, we believe we have barely scratched the surface of this large and underpenetrated market,” concluded Mr. Gormsen.

According to data collected by the Hearing Industries Association (HIA), private/commercial sector hearing aid unit sales in the third quarter of 2020 increased by 0.5% year-over-year, following 58.6% year-over-year decline in the second quarter of 2020. Despite the improvement in traditional clinic-based distribution, Eargo saw expanded awareness and continued consumer adoption of its telecare model, which eliminates the need for cumbersome visits to the clinic by offering an easy-to-use purchasing interface and convenient access to a highly trained clinical support team consisting of licensed hearing professionals.

Third

Quarter 2020 Financial Results

Net revenue was $18.2 million for the third quarter of 2020, compared to $7.7 million in the third quarter of 2019. The increase was driven by an increase in consumer adoption of the Eargo hearing aid system and a decrease in sales return accrual rate.

Gross profit for the third quarter of 2020 was $12.8 million compared to $4.2 million for the third quarter of 2019. Gross margin increased to 70.1% for the third quarter of 2020, compared with 53.6% for the third quarter of 2019. The increase was primarily due to higher average selling prices, driven by the shift in mix to our latest product innovation, Neo HiFi, and a decrease in sales returns as a percentage of gross systems shipped.

Total operating expenses were $20.4 million or 112.1% of net revenues, for the third quarter of 2020, compared with $16.2 million or 209.5% of net revenues, for the third quarter of 2019. The increase was primarily due to higher sales and marketing investments, personnel investments to scale the organization for continued growth, and expenses related to being a public company.

Sales and marketing expenses were $12.4 million or 67.9% of net revenues, for the third quarter of 2020, compared with $9.3 million or 120.2% of net revenues, for the third quarter of 2019.

Research and development expenses were $2.9 million or 15.8% of net revenues, for the third quarter of 2020, compared with $3.2 million or 41.6% of net revenues, for the third quarter of 2019.

General and administrative expenses were $5.2 million or 28.4% of net revenues for the third quarter of 2020, compared with $3.7 million or 47.6% of net revenues, for the third quarter of 2019.

Total stock-based compensation expenses were $1.4 million for the third quarter of 2020, compared with $0.5 million for the third quarter of 2019.

Loss from operations was ($7.6) million for the third quarter of 2020 compared with ($12.0) million for the third quarter of 2019.

Cash and cash equivalents were $70.2 million as of September 30, 2020, compared to $25.3 million as of September 30, 2019.

Initial Public Offering

Eargo closed its initial public offering of 9,029,629 shares of its common stock at a public offering price of $18.00 per share, which included 1,177,777 shares of common stock issued upon the exercise in full by the underwriters of their option to purchase additional shares, for total net proceeds from the offering of approximately $148 million. All of the shares of common stock were offered by Eargo. Eargo’s common stock began trading on The Nasdaq Global Select Market on October 16, 2020, under the ticker symbol “EAR.”

Full Year 2020 Financial Guidance

Eargo expects revenue for the full year 2020 of approximately $64.5 million, which represents approximately 97% growth over the company’s prior year revenue.

Conference Call and Web Cast Information

Eargo will host a conference call to discuss the third quarter financial results after market close on Thursday, November 19, 2020 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live over the phone (833) 649-1234 for U.S. callers or (914) 987-7293 for international callers, using conference ID: 2826509. The live webinar can be accessed at ir.eargo.com.

About Eargo

Eargo is a medical device company dedicated to improving the quality of life of people with hearing loss. Our innovative product and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost. We believe our Eargo hearing aids are the first and only virtually invisible, rechargeable, completely-in-canal, FDA regulated, exempt Class I device for the treatment of hearing loss. Our differentiated, consumer-first solution empowers consumers to take control of their hearing. Consumers can purchase online or over the phone and get personalized and convenient consultation and support from licensed hearing professionals via phone, text, email or video chat. The Eargo solution is offered to consumers at approximately half the cost of competing hearing aids purchased through traditional channels in the United States.

The company’s 4^th generation product, the Eargo Neo HiFi, was launched in January and features improved capabilities across audio fidelity and bandwidth. The Eargo Neo HiFi is available for purchase here.

TORONTO, Nov. 19, 2020 (GLOBE NEWSWIRE) — Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) (“Golden Leaf” or the “Company”), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, today announced financial results for the third quarter ended September 30, 2020. All financial results are stated in US dollars, unless otherwise noted.

“Rallying off our strong performance in the second quarter, the third quarter reflects the results of continued revenue growth and cost reductions, exceptional vendor management and operational excellence,” stated Jeff Yapp, Chief Executive Officer of GLH. “In addition to this being our first cashflow-positive quarter, we have surpassed the total revenue generated in all of fiscal 2019 in just three quarters.”

The increase was led by another record quarter of Oregon revenues and heightened contribution from the Company’s out-of-state partnerships, primarily in California.

“Starting in the fall of 2019, GLH faced a slew of challenges including the loss of its primary vape line in 2019 during the vape ban,” said Yapp. “A widespread global pandemic, the ongoing period of social unrest in Portland and unprecedented wildfire activity in Western Oregon resulted in the temporary closure and evacuation of some of the Company’s facilities, as well as the evacuation of a handful of staff members from their homes. This provides even greater context for the performance that the GLH team has achieved throughout the year, now highlighted in this record third quarter performance. Today, I am proud to formally say, we’ve turned the corner.”

Q3 Financial Highlights:

For the first time in its history, GLH reports positive cash flow from operations of $0.4M.
Record quarterly revenues from continuing operations of $6.2M, an increase of 42% versus the third quarter of 2019 and 11% greater than the second quarter of 2020.
Adjusted EBITDA loss of $173,000 for the three months ended September 30, 2020, an improvement of 78% over the prior quarter. Adjusted EBITDA is a non-IFRS measure, which the Company considers important in assessing operations. For a reconciliation of Adjusted EBITDA (non-IFRS) to income (loss) before income taxes, please see below.
Record year-to-date revenue of $16.3M, an increase of 34% compared to the nine months ended September 30, 2019, surpassing total revenue for the entirety of 2019 in only three quarters.
Adjusted EBITDA loss of $1.7M for the nine months ended September 30, 2020 compared to $5.1M for the nine months ended September 30, 2019, a 68% improvement.
Gross profit before biological asset adjustments of $2.2M, an improvement of $0.7M or 47% compared to the prior quarter, and $0.7M or 49% compared to the 3 months ended September 30, 2019.
Total operating expenses down 22% compared to the nine months ended September 30, 2019 and 3% compared to the 2^nd quarter of 2020, demonstrating continued cost containment while growing revenues. The Company has implemented additional cost savings measures beginning in the fourth quarter of 2020 which should result in incremental cost savings during the fourth quarter with no impact to revenues.
Same store sales growth increased 26% compared to the third quarter of 2019 and 8% compared to the second quarter of 2020.
Senior management demonstrated its commitment to the business by taking significant pay-cuts through the end of 2020 to help manage the current cash position.
Subsequent to the third quarter, the Company announced that it restructured its debt with the founders of Chalice Farms, resulting in a reduction of 50% of the $5M cash obligation due in May of 2022 through a conversion of such amount into shares at US$0.06 per share, a premium to market price, and extension of the payment schedule of the remaining $2.5M over 60 months at a favorable interest rate. This demonstrates the support of our stakeholders and is a vote of confidence in the current management team’s successes and paves the way to addressing our debenture obligations in the coming months.
Building on the momentum of the third quarter, the Company was Adjusted EBITDA positive in the month of October, based on unaudited results.

“We remain resilient and focused on continued channel growth and cost containment. Optimistically, we await future legislative outcomes that we hope will favor the cannabis industry,” said Yapp.

Disclaimer Regarding Preliminary Financial Information

The financial information presented in this news release for October 2020 is based on preliminary, unaudited financial statements prepared by management. Accordingly, such financial information may be subject to change. Such financial information is qualified in its entirety with reference to the Company’s audited financial statements for the year ended December 31, 2020, which is expected to be filed on SEDAR (www.sedar.com) on or before April 29, 2021. While the Company does not expect there to be any material changes to the October 2020 financial information presented in this news release, to the extent that it is inconsistent with the information contained in the Company’s audited financial statements for the year ended October 30, 2020, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s audited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.

Investor Conference Call

Golden Leaf Holdings – 2020 Third Quarter Earnings Call +

Virtual

Webinar

Golden Leaf management, led by Mr. John Varghese, Executive Chairman and Mr. Jeff Yapp, Chief Executive Officer, will hold a conference call on Thursday, November 19, 2020 at 4:15pm ET, to report its financial results for Q3 ended September 30, 2020 following immediately with a Virtual Webinar for a corporate update and a summary of Q3. Please click here to register and stream the call and the webinar immediately following, or use the following phone numbers:

Toll Free:		1-877-407-0784
Toll/International:		1-201-689-8560
Conference ID:		13711923

A live audio webcast will be available online on the Company’s website at www.goldenleafholdings.com where it will be archived for one year.

An audio replay of the conference call will be available through midnight Thursday, December 3, 2020 by dialing 1-844-512-2921 from the US or Canada, or 1-412-317-6671 from international locations. The conference ID is: 13711923.

About Golden Leaf Holdings

:

Golden Leaf Holdings is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with seven dispensaries in Portland, Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Markets served include Oregon, California, Nevada and Washington. Visit glhmonthly.com for regular updates.

Investor Relations:

John Varghese
Executive Chairman
971-371-2685
[email protected]

Disclaimer: This press release contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to,
statements with respect to cost savings in the fourth quarter of 2020
,
statements with respect to the Company’s future business operations, the opinions or beliefs of management and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include but are not limited to general business, economic and competitive uncertainties, regulatory risks, market risks, risks inherent in manufacturing and retail operations such as unforeseen costs and production shutdowns, difficulties in maintaining brand loyalty, and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. Forward-looking information is provided herein for the purpose of presenting information about management’s current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This press release does not constitute an offer of securities for sale in the United States, and such securities may not be offered or sold in the United States absent registration or an exemption from registration or an exemption from reg
istration.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

GOLDEN LEAF HOLDINGS LTD.
Interim Condensed Consolidated Statements of Financial Position (Unaudited)
As at September 30, 2020 and December 31, 2019
(Expressed in U.S. dollars)

		September 30, 2020			December 31, 2019


ASSETS
CURRENT
Cash		$	1,300,954		$	3,531,202
Accounts receivable	Note 5		219,004			167,178
Other receivables	Note 5		1,385,246			447,901
Income tax recoverable			–			74,034
Sales tax recoverable			128,074			271,866
Biological assets	Note 7		217,385			88,078
Inventory	Note 7		2,838,888			2,965,304
Prepaid expenses and deposits			376,075			325,329
Total current assets			6,465,626			7,870,892

Property, plant and equipment	Note 8		2,597,773			3,723,489
Notes receivable	Note 6		919,488			919,488
Right-of-use assets, net	Note 9		4,093,035			4,333,064
Intangible assets	Note 10		10,737,423			10,737,423
Goodwill	Note 10		4,056,172			4,056,172
Total assets			28,869,517			31,640,528

LIABILITIES
CURRENT
Accounts payable and accrued liabilities			3,129,717			1,564,982
Interest payable			540,860			125,900
Income taxes payable			1,465,353			–
Deferred income tax payable			248,852			248,852
Sales tax payable			449,878			187,520
Current portion of long-term debt	Note 12		108,939			82,404
Notes payable	Note 11		186,910			–
Lease liability	Note 12		852,769			843,238
Total current liabilities			6,983,278			3,052,896

Long term debt	Note 12		56,824			29,952
Long term lease liability	Note 12		4,132,024			4,090,806
Convertible debentures carried at fair value	Note 11		5,218,464			4,706,141
Consideration payable – cash portion	Note 12		4,429,880			4,218,866
Consideration payable – equity portion	Note 12		4,838,780			4,940,667
Total liabilities			25,659,250			21,039,328

SHAREHOLDERS’ EQUITY

Share capital	Note 13		148,222,848			147,763,499
Warrant reserve	Note 14		1,554,929			1,980,217
Share option reserve	Note 15		3,729,441			4,181,350
Contributed surplus			59,940			59,940
Deficit			(150,356,891	)		(143,383,806	)
Total shareholders’ equity			3,210,267			10,601,200
Total liabilities and shareholders’ equity		$	28,869,517		$	31,640,528

GOLDEN LEAF HOLDINGS LTD.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three and nine months ended September 30, 2020 and 2019
(Expressed in U.S. dollars)

		For the three months ended September 30,						For the nine months ended September 30,
			2020			2019			2020			2019
Revenues
Product sales	Note 20	$	5,765,970		$	4,342,000		$	15,318,207		$	12,002,495
Royalty and other revenue	Note 20		430,086			9,917			1,064,886			220,273
Total Revenue			6,196,056			4,351,917			16,383,093			12,222,768
Inventory expensed to cost of sales	Note 7, 20		4,033,002			2,897,220			11,038,401			7,878,386
Gross margin, excluding fair value items			2,163,054			1,454,697			5,344,692			4,344,382
Fair value changes in biological assets included
in inventory sold	Note 7, 20		(14,125	)		–			(48,483	)		–
Loss on changes in fair value of biological assets	Note 7, 20		98,853			–			295,009			–
Gross profit			2,078,326			1,454,697			5,098,166			4,344,382

Expenses:
General and administration			2,215,291			2,602,470			6,714,321			8,347,065
Share based compensation	Note 15		41,517			155,936			264,793			485,646
Sales and marketing			478,724			446,042			1,552,778			1,452,153
Depreciation and amortization	Note 8, 9		239,751			509,525			775,489			1,586,026
Total expenses			2,975,283			3,713,973			9,307,381			11,870,890

Loss before items noted below			(896,957	)		(2,259,276	)		(4,209,215	)		(7,526,508	)

Interest expense (income)			350,265			559,366			1,449,109			2,043,675
Transaction costs			127			125,612			41,178			133,834
Loss on disposal of assets	Note 8		(10,139	)		4,330			307,700			97,241
Other loss (income)			70,249			(87,856	)		32,029			(104,812	)
Gain on debt modification			–			(312,083	)		–			(312,083	)
Gain on change in fair value of warrant liabilities			–			(23,371	)		–			(605,134	)
Loss on change in fair value of convertible debentures	Note 11		565,328			351,088			565,328			470,365
Loss before income taxes			(1,872,787	)		(2,876,362	)		(6,604,559	)		(9,249,594	)
Current income tax expense			848,379			–			1,511,595			15,924
Net loss from continuing operations			(2,721,166	)		(2,876,362	)		(8,116,154	)		(9,265,518	)
Loss from discontinued operations (Note 6)			–			(213,800	)		–			(310,269	)
Net loss			(2,721,166	)		(3,090,162	)		(8,116,154	)		(9,575,787	)
Other comprehensive loss
Items that will be reclassified subsequently to profit or loss:
Cumulative translation adjustment			–			210,023			–			1,192,068
Comprehensive loss		$	(2,721,166	)	$	(3,300,185	)	$	(8,116,154	)	$	(10,767,855	)
Basic and diluted loss per share		$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.02	)
Weighted average number of common shares outstanding			881,420,646			685,518,103			867,567,723			621,050,033

GOLDEN LEAF HOLDINGS LTD.
Interim Condensed Consolidated Statements of Cash Flows (Unaudited)
For the nine months ended September 30, 2020 and 2019 (Expressed in U.S. dollars)


		For the three months ended
Cash from Operating Activities		September 30, 2020
Cash (used in) provided by:
Operating activities:
	Net loss	$	(2,721,166	)
	Depreciation of property, plant and equipment		290,091
	Lease amortization		186,640
	Loss on disposal of assets		(10,139	)
	Interest expense		350,265
	Share-based compensation		41,517
	Loss on fair value adjustment to debt		565,328
	Transaction costs		41,178
	Loss on fair value of biological assets		84,728
	Reserve for obsolete inventory		52,732
	Other non-cash transactions		9,252

Changes in working capital items:
	Accounts receivable		(6,968	)
	Other receivables		(472,837	)
	Income tax payable		848,378
	Sales tax recoverable		199,094
	Accounts payable and accrued liabilities		634,214
	Sales tax payable		240,351
	Biological assets		(68,605	)
	Inventory		97,412
	Prepaid expenses and deposits		56,226
Cash provided by operating activities		$	417,691


Adjusted EBITDA

	For the three months ended						For the nine months ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019

Loss before income taxes	$	(1,872,787	)	$	(2,876,362	)	$	(6,604,559	)	$	(9,249,594	)
Adjustments:
Net impact, fair value of biological assets		84,728			–			246,526			–
Depreciation and amortization		476,733			509,525			1,548,121			1,586,026
Fair value changes on debt and equity instruments		565,328			327,717			565,328			(134,769	)
Share based compensation		41,517			155,936			264,793			485,646
Interest expense, net		350,265			559,366			1,449,109			2,043,675
Transaction costs		127			125,612			41,178			133,834
Start-up costs⁽¹⁾		59,924			–			179,120			–
Extraordinary losses⁽²⁾		60,093			–			276,883			–
Impairments and other		70,249			(87,856	)		32,029			(104,812	)
Loss on disposal		(10,139	)		4,330			307,700			97,241
Adjusted EBITDA	$	(173,962	)	$	(1,281,732	)	$	(1,693,772	)	$	(5,142,753	)
⁽¹⁾ Write-off of significant start up costs related to the Company’s California business
⁽²⁾ Losses experienced in Nevada due to unexpected shut down and facility abandonment due to COVID-19

November 19, 2020 4:03 pm

MOOREFIELD, W.V., Nov. 19, 2020 (GLOBE NEWSWIRE) — Summit Financial Group, Inc. (“Summit”) (NASDAQ: SMMF) today announces its Board of Directors recently declared a fourth quarter 2020 dividend of $0.17 per share payable on December 31, 2020 to common shareholders of record as of the close of business on December 15, 2020.

Summit Financial Group, Inc. is a $2.95 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates forty banking locations.

Contact:		Teresa Ely, Director of Shareholder Relations
Telephone:		(304) 530-0526
Email:		[email protected]

November 19, 2020 4:03 pm

Beacon Reports Fourth Quarter and Fiscal Year 2020 Results

Record fourth quarter net income and Adjusted EBITDA
Fourth quarter net sales leveraged an attractive residential backdrop, and stronger gross margins benefited from pricing execution, mix and timing
Strategic initiatives contributed to Q4 success, highlighted by digital sales and margin gains at lowest quintile branches
Strong fiscal 2020 operating cash flow of $479 million enabled repayment of COVID-related ABL draw

HERNDON, Va.–(BUSINESS WIRE)–Beacon (Nasdaq: BECN) (the “Company”) announced results today for its fourth quarter and fiscal year ended September 30, 2020 (“2020”).

Fourth Quarter and Fiscal Year Financial Highlights

	Q4 2020			Q4 2019			FY 2020			FY 2019
(Unaudited; $ in millions, except per share amounts)
Net sales	$	2,017.8		$	2,029.9		$	6,943.9		$	7,105.2
Gross profit	$	514.0		$	493.5		$	1,699.2		$	1,736.6
Gross margin %		25.5	%		24.3	%		24.5	%		24.4	%

Operating expense	$	392.8		$	403.6		$	1,664.1		$	1,588.8
% of net sales		19.5	%		19.9	%		24.0	%		22.4	%
Adjusted Operating Expense¹	$	345.8		$	345.9		$	1,327.0		$	1,352.5
% of net sales¹		17.1	%		17.0	%		19.1	%		19.0	%

Net income (loss)	$	71.9		$	27.4		$	(80.9	)	$	(10.6	)
% of net sales		3.6	%		1.3	%		(1.2	%)		(0.1	%)
Adjusted Net Income (Loss)¹	$	104.7		$	82.0		$	190.1		$	176.2
Adjusted EBITDA¹	$	190.9		$	169.1		$	471.6		$	476.0
% of net sales¹		9.5	%		8.3	%		6.8	%		6.7	%

Net income (loss) per share – diluted	$	0.83		$	0.27		$	(1.52	)	$	(0.51	)

______________________

Please see the included financial tables for a reconciliation of “Adjusted” non-GAAP financial measures to the most directly comparable GAAP financial measure, as well as further detail on the components driving the net changes over the comparative periods.

“Strong execution by our team and a favorable residential backdrop drove record fourth quarter Adjusted EBITDA,” said Julian Francis, Beacon’s President and Chief Executive Officer. “Mid-single digit growth in residential roofing helped to offset softness in the non-residential product categories stemming from the continuing economic impact of COVID. Within this dynamic environment, we are intensely focused on selling activity and leveraging our leading digital platform that accounted for more than 10% of September sales. Q4 gross margins increased significantly compared to the prior year, and I was particularly pleased with how we executed on the price increases mid-quarter. Operating cost discipline was again evident in the quarter, and we continued to improve the profitability of our lowest quintile branches compared to the prior year. Record second half 2020 operating cash flow strengthened our financial position giving us the ability and the confidence to repay the ABL draw we implemented in March as COVID began impacting our business. As fiscal year 2021 begins, we are grateful for the dedication and tireless efforts of our employees, as we continue to focus on improving the controllable aspects of our business and driving towards realizing our full potential.”

Fourth Quarter

Company-wide sales reflect positive contributions from residential demand and from those states less impacted by the pandemic, offset by softer demand from non-residential categories and states more heavily impacted by COVID. Net sales decreased 0.6% compared to the prior year. Residential roofing product sales increased 6.2%, non-residential roofing product sales decreased 11.7%, and complementary product sales decreased 1.5% compared to the prior year. The fourth quarter of fiscal years 2020 and 2019 each had 64 business days.

Gross margin improved 120 basis points from 24.3% in the prior year to 25.5%, primarily reflecting an improved price-cost spread. Operating expense decreased compared to the prior year. Adjusted operating expense was flat compared to the prior year period as management’s effective cost control during the COVID-19 pandemic was partially offset by higher incentive compensation.

Net income (loss) was $71.9 million, compared to $27.4 million in 2019. Net income (loss) attributable to common shareholders was $65.9 million, compared to $21.4 million in 2019. Adjusted Net Income (Loss) was $104.7 million, compared to $82.0 million in 2019. EPS was $0.83, compared to $0.27 in 2019. Comparative fourth quarter results were driven primarily by higher gross margins, the impact of operating cost controls on the current period and reduced other non-operating expense. These impacts were partially offset by sales declines within non-residential end markets.

Fiscal Year

Net sales decreased 2.3% compared to the prior year. Residential roofing product sales increased 0.6%, non-residential roofing product sales decreased 3.4%, and complementary product sales decreased 5.3% compared to the prior year. Fiscal years 2020 and 2019 had 254 and 253 business days, respectively.

Gross margin improved from 24.4% in the prior year to 24.5%. Operating expense increased compared to the prior year, primarily from the write-off of certain trade names in connection with the Company’s rebranding efforts, partially offset by management’s effective cost control during the COVID-19 pandemic. Adjusted operating expense decreased compared to 2019, primarily as a result of management’s cost control.

Net income (loss) was $(80.9) million, compared to $(10.6) million in 2019. Net income (loss) attributable to common shareholders was $(104.9) million, compared to $(34.6) million in 2019. Adjusted Net Income (Loss) was $190.1 million, compared to $176.2 million in 2019. EPS was $(1.52), compared to $(0.51) in 2019.

Earnings Call

The Company will host a conference call and webcast today at 5:00 p.m. ET to discuss these results. Details for the earnings release event are as follows:

Upon registration, participants will receive an email containing event details and unique access codes. To ensure timely access, participants should register for the earnings call at least 10 minutes before the 5:00 p.m. ET start time. An archived copy of the webcast will be available on the Events & Presentations page shortly after the call.

Forward-Looking Statements

This release contains information about management’s view of the Company’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the “Risk Factors” section of the Company’s Form 10-K for the fiscal year ended September 30, 2019 and Form 10-Q for the quarter ended June 30, 2020. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point, the Company specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

About Beacon

Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of roofing materials and complementary building products in North America, operating over 500 branches throughout all 50 states in the U.S. and 6 provinces in Canada. Beacon serves an extensive base of over 100,000 customers, utilizing its vast branch network and diverse service offerings to provide high-quality products and support throughout the entire business lifecycle. Beacon offers its own private label brand, TRI-BUILT, and has a proprietary digital account management suite, Beacon PRO+, which allows customers to manage their businesses online. Beacon’s stock is traded on the Nasdaq Global Select Market under the ticker symbol BECN. To learn more about Beacon, please visit www.becn.com


BEACON ROOFING SUPPLY, INC. Consolidated Statements of Operations (Unaudited; in millions, except per share amounts)

	Three Months Ended September 30,										Year Ended September 30,
	2020		% of Net Sales			2019		% of Net Sales			2020			% of Net Sales			2019			% of Net Sales
Net sales	$	2,017.8		100.0	%	$	2,029.9		100.0	%	$	6,943.9			100.0	%	$	7,105.2			100.0	%
Cost of products sold		1,503.8		74.5	%		1,536.4		75.7	%		5,244.7			75.5	%		5,368.6			75.6	%
Gross profit		514.0		25.5	%		493.5		24.3	%		1,699.2			24.5	%		1,736.6			24.4	%
Operating expense:
Selling, general and administrative		332.2		16.5	%		334.1		16.5	%		1,273.0			18.3	%		1,311.0			18.4	%
Depreciation		16.5		0.8	%		17.9		0.9	%		70.1			1.0	%		70.7			1.0	%
Amortization		44.1		2.2	%		51.6		2.5	%		321.0			4.7	%		207.1			2.9	%
Total operating expense		392.8		19.5	%		403.6		19.9	%		1,664.1			24.0	%		1,588.8			22.3	%
Income (loss) from operations		121.2		6.0	%		89.9		4.4	%		35.1			0.5	%		147.8			2.1	%
Interest expense, financing costs, and other		31.2		1.5	%		41.7		2.0	%		128.1			1.9	%		158.6			2.2	%
Loss on debt extinguishment		—		0.0	%		—		0.0	%		14.7			0.2	%		—			0.0	%
Income (loss) before provision for income taxes		90.0		4.5	%		48.2		2.4	%		(107.7	)		(1.6	%)		(10.8	)		(0.1	%)
Provision for (benefit from) income taxes		18.1		0.9	%		20.8		1.1	%		(26.8	)		(0.4	%)		(0.2	)		0.0	%
Net income (loss)		71.9		3.6	%		27.4		1.3	%		(80.9	)		(1.2	%)		(10.6	)		(0.1	%)
Dividends on Preferred Stock		6.0		0.3	%		6.0		0.2	%		24.0			0.3	%		24.0			0.4	%
Net income (loss) attributable to common shareholders	$	65.9		3.3	%	$	21.4		1.1	%	$	(104.9	)		(1.5	%)	$	(34.6	)		(0.5	%)

Weighted-average common stock outstanding:
Basic		68.9					68.5					68.8						68.4
Diluted¹		69.6					69.3					68.8						68.4

Net income (loss) per share²:
Basic	$	0.84				$	0.27				$	(1.52	)				$	(0.51	)
Diluted	$	0.83				$	0.27				$	(1.52	)				$	(0.51	)

____________________________________

¹		Amounts do not include 9.7 million shares issuable upon conversion of the Company’s participating Preferred Stock because such conversion would be anti-dilutive.
²		Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by the fully diluted weighted-average number of common shares outstanding during the period. The following table presents the components and calculations of basic and diluted net income (loss) per share for each period presented:


	Three Months Ended September 30,						Year Ended September 30,
	2020			2019			2020			2019
Net income (loss)	$	71.9		$	27.4		$	(80.9	)	$	(10.6	)
Dividends on Preferred Stock		6.0			6.0			24.0			24.0
Net income (loss) attributable to common shareholders	$	65.9		$	21.4		$	(104.9	)	$	(34.6	)
Undistributed income allocated to participating securities		(8.1	)		(3.1	)		—			—
Net income (loss) attributable to common shareholders – basic and diluted	$	57.8		$	18.3		$	(104.9	)	$	(34.6	)

Weighted-average common shares outstanding – basic		68.9			68.5			68.8			68.4
Effect of common share equivalents		0.7			0.8			—			—
Weighted-average common shares outstanding – diluted		69.6			69.3			68.8			68.4

Net income (loss) per share – basic	$	0.84		$	0.27		$	(1.52	)	$	(0.51	)
Net income (loss) per share – diluted	$	0.83		$	0.27		$	(1.52	)	$	(0.51	)


BEACON ROOFING SUPPLY, INC. Consolidated Balance Sheets (Unaudited; in millions)

	September 30,			September 30,
	2020			2019
Assets
Current assets:
Cash and cash equivalents	$	624.6		$	72.3
Accounts receivable, net		1,029.3			1,108.1
Inventories, net		944.6			1,018.2
Prepaid expenses and other current assets		378.3			315.6
Total current assets		2,976.8			2,514.2
Property and equipment, net		243.7			260.4
Goodwill		2,490.4			2,490.6
Intangibles, net		801.2			1,125.5
Operating lease assets		443.3			—
Other assets, net		2.1			2.1
Total assets	$	6,957.5		$	6,392.8

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	954.6		$	822.9
Accrued expenses		563.8			599.2
Current operating lease liabilities		100.5			—
Current portions of long-term debt/obligations		12.3			18.7
Total current liabilities		1,631.2			1,440.8
Borrowings under revolving lines of credit, net		251.1			81.0
Long-term debt, net		2,494.2			2,494.6
Deferred income taxes, net		74.0			103.9
Non-current operating lease liabilities		340.4			—
Long-term obligations under equipment financing, net		—			4.6
Other long-term liabilities		6.5			6.4
Total liabilities		4,797.4			4,131.3

Convertible Preferred Stock		399.2			399.2

Stockholders’ equity:
Common stock		0.7			0.7
Undesignated preferred stock		—			—
Additional paid-in capital		1,100.6			1,083.0
Retained earnings		694.3			799.2
Accumulated other comprehensive income (loss)		(34.7	)		(20.6	)
Total stockholders’ equity		1,760.9			1,862.3
Total liabilities and stockholders’ equity	$	6,957.5		$	6,392.8


BEACON ROOFING SUPPLY, INC. Consolidated Statements of Cash Flows (Unaudited; in millions)

	Year Ended September 30,
	2020			2019
Operating Activities
Net income (loss)	$	(80.9	)	$	(10.6	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		391.1			277.8
Stock-based compensation		17.2			16.4
Certain interest expense and other financing costs		11.5			12.1
Beneficial lease amortization		—			2.3
Loss on debt extinguishment		14.7			—
Gain on sale of fixed assets and other		(3.5	)		(3.8	)
Deferred income taxes		(25.6	)		(2.6	)
338(h)(10) election refund		(5.1	)		—
Changes in operating assets and liabilities:
Accounts receivable		78.4			(18.5	)
Inventories		73.4			(82.8	)
Prepaid expenses and other current assets		(73.6	)		(70.8	)
Accounts payable and accrued expenses		72.2			92.1
Other assets and liabilities		9.5			1.1
Net cash provided by (used in) operating activities		479.3			212.7

Investing Activities
Purchases of property and equipment		(48.5	)		(57.0	)
Acquisition of businesses, net		5.1			(164.0	)
Proceeds from the sale of assets		4.4			9.3
Net cash provided by (used in) investing activities		(39.0	)		(211.7	)

Financing Activities
Borrowings under revolving lines of credit		2,038.0			2,100.1
Payments under revolving lines of credit		(1,870.0	)		(2,114.0	)
Payments under term loan		(9.7	)		(9.7	)
Borrowings under senior notes		300.0			—
Payment under senior notes		(309.6	)		—
Payment of debt issuance costs		(4.3	)		(0.8	)
Payments under equipment financing facilities and finance leases		(8.6	)		(10.0	)
Payment of dividends on Preferred Stock		(24.0	)		(24.0	)
Proceeds from issuance of common stock related to equity awards		3.3			3.3
Payment of taxes related to net share settlement of equity awards		(2.9	)		(3.7	)
Net cash provided by (used in) financing activities		112.2			(58.8	)

Effect of exchange rate changes on cash and cash equivalents		(0.2	)		0.2

Net increase (decrease) in cash and cash equivalents		552.3			(57.6	)
Cash and cash equivalents, beginning of period		72.3			129.9
Cash and cash equivalents, end of period	$	624.6		$	72.3


BEACON ROOFING SUPPLY, INC. Consolidated Sales by Product Line (Unaudited; in millions)

Sales by Product Line
	Three Months Ended September 30,
	2020					2019					Change
	Net Sales		Mix %			Net Sales		Mix %			$			%
Residential roofing products	$	968.6		48.0	%	$	912.2		44.9	%	$	56.4			6.2	%
Non-residential roofing products		446.0		22.1	%		505.1		24.9	%		(59.1	)		(11.7	%)
Complementary building products		603.2		29.9	%		612.6		30.2	%		(9.4	)		(1.5	%)
	$	2,017.8		100.0	%	$	2,029.9		100.0	%	$	(12.1	)		(0.6	%)


Sales by Business Day^1,2
	Three Months Ended September 30,
	2020					2019					Change
	Net Sales		Mix %			Net Sales		Mix %			$			%
Residential roofing products	$	15.1		48.0	%	$	14.2		44.9	%	$	0.9			6.2	%
Non-residential roofing products		7.0		22.1	%		7.9		24.9	%		(0.9	)		(11.7	%)
Complementary building products		9.4		29.9	%		9.6		30.2	%		(0.2	)		(1.5	%)
	$	31.5		100.0	%	$	31.7		100.0	%	$	(0.2	)		(0.6	%)

__________________________________________________

¹		The fourth quarter of fiscal years 2020 and 2019 each had 64 business days.
²		Dollar and percentage changes may not recalculate due to rounding.

Sales by Product Line
	Year Ended September 30,
	2020					2019					Change
	Net Sales		Mix %			Net Sales		Mix %			$			%
Residential roofing products	$	3,099.6		44.7	%	$	3,079.6		43.3	%	$	20.0			0.6	%
Non-residential roofing products		1,646.6		23.7	%		1,705.2		24.0	%		(58.6	)		(3.4	%)
Complementary building products		2,197.7		31.6	%		2,320.4		32.7	%		(122.7	)		(5.3	%)
	$	6,943.9		100.0	%	$	7,105.2		100.0	%	$	(161.3	)		(2.3	%)


Sales by Business Day^1,2
	Year Ended September 30,
	2020					2019					Change
	Net Sales		Mix %			Net Sales		Mix %			$			%
Residential roofing products	$	12.2		44.7	%	$	12.2		43.3	%	$	—			0.3	%
Non-residential roofing products		6.5		23.7	%		6.7		24.0	%		(0.2	)		(3.8	%)
Complementary building products		8.6		31.6	%		9.2		32.7	%		(0.6	)		(5.7	%)
	$	27.3		100.0	%	$	28.1		100.0	%	$	(0.8	)		(2.7	%)

__________________________________________________

¹		Fiscal years 2020 and 2019 had 254 and 253 business days, respectively.
²		Dollar and percentage changes may not recalculate due to rounding.

BEACON ROOFING SUPPLY, INC.

Non-GAAP Financial Measures

(Unaudited; in millions)

Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, we prepare certain financial measures that are not calculated in accordance with GAAP, specifically:

Adjusted Operating Expense. We define Adjusted Operating Expense as operating expense excluding the impact of the adjusting items (as described below).
Adjusted Net Income (Loss). We define Adjusted Net Income (Loss) as net income (loss) excluding the impact of the adjusting items (as described below).
Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) excluding the impact of interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation, and the adjusting items (as described below).

We use these supplemental non-GAAP measures to evaluate financial performance, analyze the underlying trends in our business and establish operational goals and forecasts that are used when allocating resources. We expect to compute our non-GAAP financial measures consistently using the same methods each period.

We believe these non-GAAP measures are useful measures because they permit investors to better understand changes over comparative periods by providing financial results that are unaffected by certain items that are not indicative of ongoing operating performance.

While we believe that these non-GAAP measures are useful to investors when evaluating our business, they are not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. These non-GAAP measures should not be considered in isolation or as a substitute for other financial performance measures presented in accordance with GAAP. These non-GAAP financial measures may have material limitations including, but not limited to, the exclusion of certain costs without a corresponding reduction of net income for the income generated by the assets to which the excluded costs are related. In addition, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.

BEACON ROOFING SUPPLY, INC.

Non-GAAP Financial Measures (continued)

(Unaudited; in millions)

Adjusting Items to Non-GAAP Financial Measures

The impact of the following expense (income) items are excluded from each of our non-GAAP measures (the “adjusting items”):

Acquisition costs. Represents certain costs related to historical acquisitions, including: amortization of intangible assets; professional fees, branch integration expenses, travel expenses, employee severance and retention costs, and other personnel expenses classified as selling, general and administrative; and amortization of debt issuance costs.
Restructuring costs. Represents costs stemming from headcount rationalization efforts and certain rebranding costs; accrued estimated costs related to employee benefit plan withdrawals; and amortization of debt issuance costs and loss on debt extinguishment.
COVID-19 impact. Represents costs directly related to our response to the COVID-19 pandemic; and income tax provision (benefit) stemming from the revaluation of deferred tax assets and liabilities made in conjunction with the Company’s application of the CARES Act.
Effects of tax reform. Represents income tax provision (benefit) related to the Tax Cuts and Jobs Act of 2017.

The following table presents the impact and respective location of the adjusting items on our consolidated statements of operations for each of the periods indicated:

	Operating Expense				Non-Operating Expense
	Selling, General and Administrative		Amortization		Interest Expense		Other (Income) Expense			Income Taxes¹			Total
Three Months Ended September 30, 2020
Acquisition costs	$	1.7	$	44.1	$	2.1	$	0.1		$	—		$	48.0
Restructuring costs		0.4		—		0.9		0.8			—			2.1
COVID-19 impact		0.8		—		—		—			(0.1	)		0.7
Total adjusting items	$	2.9	$	44.1	$	3.0	$	0.9		$	(0.1	)	$	50.8

Three Months Ended September 30, 2019
Acquisition costs	$	3.8	$	51.5	$	3.0	$	—		$	—		$	58.3
Restructuring costs		2.4		—		—		3.3			—			5.7
Total adjusting items	$	6.2	$	51.5	$	3.0	$	3.3		$	—		$	64.0


Year Ended September 30, 2020
Acquisition costs²	$	9.6	$	178.4	$	8.1	$	(5.1	)	$	—		$	191.0
Restructuring costs³		2.3		142.6		3.5		21.5			—			169.9
COVID-19 impact		4.2		—		—		—			(0.7	)		3.5
Total adjusting items	$	16.1	$	321.0	$	11.6	$	16.4		$	(0.7	)	$	364.4

Year Ended September 30, 2019
Acquisition costs	$	25.1	$	207.1	$	12.1	$	—		$	—		$	244.3
Restructuring costs		4.1		—		—		3.3			—			7.4
Effects of tax reform		—		—		—		—			(0.5	)		(0.5	)
Total adjusting items	$	29.2	$	207.1	$	12.1	$	3.3		$	(0.5	)	$	251.2

______________________________

¹		For tax impact of adjusting items, see Adjusted Net Income (Loss) table below.
²		Other (Income) Expense includes a net $5.1 million refund received as the final true-up of the $164.0 million payment resulting from the 338(h)(10) election made in connection with the acquisition of Allied Building Products Corp. on January 2, 2018.
³		Amortization includes the impact of non-cash accelerated intangible asset amortization of $142.6 million related to the write-off of certain trade names in connection with the Company’s rebranding. Other (Income) Expense includes a loss on debt extinguishment of $14.7 million in connection with the October 2019 debt refinancing.

BEACON ROOFING SUPPLY, INC.

Non-GAAP Financial Measures (continued)

(Unaudited; in millions)

Adjusted Operating Expense

The following table presents a reconciliation of operating expense, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted Operating Expense for each of the periods indicated:

	Three Months Ended September 30,						Year Ended September 30,
	2020			2019			2020			2019
Operating expense	$	392.8		$	403.6		$	1,664.1		$	1,588.8
Acquisition costs		(45.8	)		(55.3	)		(188.0	)		(232.2	)
Restructuring costs		(0.4	)		(2.4	)		(144.9	)		(4.1	)
COVID-19 impact		(0.8	)		—			(4.2	)		—
Adjusted Operating Expense	$	345.8		$	345.9		$	1,327.0		$	1,352.5

Net sales	$	2,017.8		$	2,029.9		$	6,943.9		$	7,105.2
Operating expense as % of sales		19.5	%		19.9	%		24.0	%		22.4	%
Adjusted Operating Expense as % of sales		17.1	%		17.0	%		19.1	%		19.0	%

Adjusted Net Income (Loss)

The following table presents a reconciliation of net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted Net Income (Loss) for each of the periods indicated:

	Three Months Ended September 30,						Year Ended September 30,
	2020			2019			2020			2019
Net income (loss)	$	71.9		$	27.4		$	(80.9	)	$	(10.6	)
Adjusting items:
Acquisition costs		48.0			58.3			191.0			244.3
Restructuring costs		2.1			5.7			169.9			7.4
COVID-19 impact		0.7			—			3.5			—
Effects of tax reform		—			—			—			(0.5	)
Total adjusting items		50.8			64.0			364.4			251.2
Less: tax impact of adjusting items¹		(18.0	)		(9.4	)		(93.4	)		(64.4	)
Total adjustments, net of tax		32.8			54.6			271.0			186.8
Adjusted Net Income (Loss)	$	104.7		$	82.0		$	190.1		$	176.2

______________________________

Amounts represent tax impact on adjusting items that are not included in the Company’s income tax provision (benefit) for the periods presented. The effective tax rate applied to these adjusting items is calculated by using adjusted pre-tax income while factoring in discrete tax adjustments for the fiscal year. The tax impact of adjusting items for the three months ended September 30, 2020 and 2019 were calculated using a blended effective tax rate of 35.4% and 14.7%, respectively. The tax impact of adjusting items for the years ended September 30, 2020 and 2019 were calculated using an effective tax rate of 25.6% and 25.6%, respectively.

BEACON ROOFING SUPPLY, INC.

Non-GAAP Financial Measures (continued)

(Unaudited; in millions)

Adjusted EBITDA

The following table presents a reconciliation of net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA for each of the periods indicated:

	Three Months Ended September 30,						Year Ended September 30,
	2020			2019			2020			2019
Net income (loss)	$	71.9		$	27.4		$	(80.9	)	$	(10.6	)
Interest expense, net		32.6			38.4			138.5			160.2
Income taxes		18.1			20.8			(26.8	)		(0.2	)
Depreciation and amortization		60.6			69.5			391.1			277.8
Stock-based compensation		3.9			3.5			17.2			16.3
Acquisition costs¹		1.8			3.8			4.5			25.1
Restructuring costs¹		1.2			5.7			23.8			7.4
COVID-19 impact¹		0.8			—			4.2			—
Adjusted EBITDA	$	190.9		$	169.1		$	471.6		$	476.0

Net sales	$	2,017.8		$	2,029.9		$	6,943.9		$	7,105.2
Net income (loss) as % of sales		3.6	%		1.3	%		(1.2	%)		(0.1	%)
Adjusted EBITDA as % of sales		9.5	%		8.3	%		6.8	%		6.7	%

______________________________

Amounts represent adjusting items included in selling, general, and administrative expense and other income (expense); remaining adjusting items balances are embedded within the other balances reported in the table.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201119006234/en/

Brent Rakers, Director Investor Relations

[email protected]

901-232-2737

KEYWORDS: District of Columbia Virginia United States North America

INDUSTRY KEYWORDS: Supply Chain Management Retail Other Construction & Property Residential Building & Real Estate Commercial Building & Real Estate Construction & Property Building Systems

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November 19, 2020 4:03 pm

Intuit First Quarter Revenue Grew 14 Percent; Company Provides Guidance for Fiscal 2021

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
Intuit Inc. (Nasdaq: INTU), maker of TurboTax, QuickBooks and Mint, announced financial results for the first quarter of fiscal 2021, which ended Oct. 31.

“We had a strong start to the year as we continue to accelerate innovation on our A.I.-driven expert platform,” said Sasan Goodarzi, Intuit’s chief executive officer. “We delivered double-digit revenue growth in the quarter and are excited by the velocity of our innovation.”

Financial Highlights

For the first quarter, Intuit reported:

Total revenue of $1.3 billion, up 14 percent.
Small Business and Self-Employed Group revenue up 13 percent to $1.2 billion.
Small Business Online Ecosystem revenue grew 24 percent.
Consumer Group revenue grew 19 percent to $119 million.

Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period, and the business metrics and associated growth rates refer to worldwide business metrics.

Snapshot of First-quarter Results

	GAAP			Non-GAAP
	Q1 FY21	Q1 FY20	Change	Q1 FY21	Q1 FY20	Change
Revenue	$1,323	$1,165	14%	$1,323	$1,165	14%
Operating Income	$209	$10	NM	$334	$129	159%
Earnings Per Share	$0.75	$0.22	241%	$0.94	$0.41	129%

NM = Not Meaningful

Dollars are in millions, except earnings per share. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Business Segment Results

Small Business and Self-Employed Group

Grew QuickBooks online accounting revenue 28 percent in the quarter, driven primarily by customer growth and mix-shift.
Increased Online Services revenue 17 percent, driven by QuickBooks Online payments and QuickBooks Online payroll.
Grew total international online revenue 51 percent.

Consumer and ProConnect Groups

Reported $119 million of Consumer Group revenue and $23 million of professional tax revenue in the ProConnect Group for the first quarter, in line with expectations.

Capital Allocation Summary

In the first quarter the company:

Had a total cash and investments balance of approximately $5.8 billion as of Oct. 31. Intuit expects to use approximately $3.6 billion of cash as part of consideration for the Credit Karma acquisition.
Did not repurchase any shares, as share purchases were temporarily suspended in conjunction with the Credit Karma acquisition. $2.4 billion remains on the company’s authorization.
Received Board approval for a quarterly dividend of $0.59 per share, payable January 19, 2021. This represents an 11 percent increase compared to the same period last year.

Forward-looking Guidance

Intuit announced guidance for the second quarter of fiscal year 2021, which ends Jan. 31. The company expects:

Revenue growth of approximately 8 to 9 percent.
GAAP earnings per share of $0.89 to $0.92.
Non-GAAP diluted earnings per share of $1.31 to $1.34.

Intuit also announced guidance for full fiscal year 2021. The company expects:

Revenue of $8.265 billion to $8.415 billion, growth of approximately 8 to 10 percent.
GAAP operating income of $2.425 billion to $2.475 billion, growth of approximately 11 to 14 percent.
Non-GAAP operating income of $2.960 billion to $3.010 billion, growth of approximately 11 to 13 percent.
GAAP diluted earnings per share of $7.00 to $7.15, growth of approximately 1 to 3 percent.
Non-GAAP diluted earnings per share of $8.40 to $8.55, growth of approximately 7 to 9 percent.

The company expects the following segment revenue results for fiscal year 2021:

Small Business and Self-Employed Group: growth of approximately 8 to 10 percent.
Consumer Group: growth of approximately 9 to 10 percent.
ProConnect Group: growth of approximately 0 to 1 percent.

Intuit continues to expect the Credit Karma acquisition to be accretive over time. However, Credit Karma’s business was negatively impacted over the last 7 months as lenders tightened access to credit due to economic uncertainty related to the pandemic. The company has seen continued recovery after reaching a low point in June, with the October revenue run-rate nearly back to pre-COVID levels. Therefore, Intuit expects the acquisition to be modestly dilutive to non-GAAP earnings per share in fiscal 2021, and neutral to modestly dilutive to non-GAAP earnings per share in the first full fiscal year after close in fiscal 2022.

Conference Call Details

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on Nov. 19. To hear the call, dial 866-417-5279 in the United States or 409-937-8904 from international locations. No reservation or access code is needed. The conference call can also be heard live at http://investors.intuit.com/Events/default.aspx. Prepared remarks for the call will be available on Intuit’s website after the call ends.

Replay Information

A replay of the conference call will be available for one week by calling 855-859-2056, or 404-537-3406 from international locations. The access code for this call is 7594497. The audio webcast will remain available on Intuit’s website for one week after the conference call.

About Intuit

Intuit’s mission is to power prosperity around the world. We are a mission-driven, global financial platform company with products including TurboTax, QuickBooks, Mint and Turbo, designed to empower consumers, self-employed and small businesses to improve their financial lives. Our platform and products help customers get more money with the least amount of work, while giving them complete confidence in their actions and decisions. Our innovative ecosystem of financial management solutions serves more than 50 million customers worldwide. Please visit us for the latest news and in-depth information about Intuit and its brands and find us on social.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled “About Non-GAAP Financial Measures” as well as the related Table B1, Table B2, and Table E. A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit’s website.

Cautions About Forward-looking Statements

This press release contain forward-looking statements, including forecasts of expected growth and future financial results of Intuit and its reporting segments; Intuit’s prospects for the business in fiscal 2021 and beyond; expectations regarding timing and growth of revenue for each of Intuit’s reporting segments and from current or future products and services; expectations regarding customer growth; expectations regarding Intuit’s corporate tax rate; expectations regarding changes to our products and their impact on Intuit’s business; expectations regarding the amount and timing of any future dividends or share repurchases; expectations regarding availability of our offerings; expectations regarding the impact of our strategic decisions on Intuit’s business; expectations regarding the timing, completion and impact of the Credit Karma acquisition; and all of the statements under the heading “Forward-looking Guidance.”

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These risks and uncertainties may be amplified by the COVID-19 pandemic, which has caused significant global economic instability and uncertainty. These factors include, without limitation, the following: our ability to compete successfully; our participation in the Free File Alliance; potential governmental encroachment in our tax businesses; our ability to adapt to technological change; our ability to predict consumer behavior; our reliance on third-party intellectual property; our ability to protect our intellectual property rights; any harm to our reputation; risks associated with acquisition and divestiture activity; the issuance of equity or incurrence of debt to fund an acquisition; our cybersecurity incidents (including those affecting the third parties we rely on); customer concerns about privacy and cybersecurity incidents; fraudulent activities by third parties using our offerings; our failure to process transactions effectively; interruption or failure of our information technology; our ability to maintain critical third-party business relationships; our ability to attract and retain talent; any deficiency in the quality or accuracy of our products (including the advice given by experts on our platform); any delays in product launches; difficulties in processing or filing customer tax submissions; risks associated with international operations; changes to public policy, laws or regulations affecting our businesses; litigation in which we are involved; the seasonal nature of our tax business; changes in tax rates and tax reform legislation; global economic changes; exposure to credit, counterparty and other risks in providing capital to businesses; amortization of acquired intangible assets and impairment charges; our ability to repay or otherwise comply with the terms of our outstanding debt; our ability to repurchase shares or distribute dividends; volatility of our stock price; and our ability to successfully market our offerings. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2020 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. Fiscal 2021 full-year and Q2 guidance speaks only as of the date it was publicly issued by Intuit. Other forward-looking statements represent the judgment of the management of Intuit as of the date of this presentation. We do not undertake any duty to update any forward-looking statement or other information in this presentation.

TABLE A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)

	Three Months Ended
	October 31, 2020			October 31, 2019
Net revenue:
Product	$	367		$	353
Service and other	956			812
Total net revenue	1,323			1,165
Costs and expenses:
Cost of revenue:
Cost of product revenue	15			17
Cost of service and other revenue	234			267
Amortization of acquired technology	7			6
Selling and marketing	362			383
Research and development	325			334
General and administrative	169			146
Amortization of other acquired intangible assets	2			2
Total costs and expenses [A]	1,114			1,155
Operating income	209			10
Interest expense	(8		)	(2		)
Interest and other income, net	9			14
Income before income taxes	210			22
Income tax provision (benefit) [B]	12			(35		)
Net income	$	198		$	57

Basic net income per share	$	0.75		$	0.22
Shares used in basic per share calculations	263			261

Diluted net income per share	$	0.75		$	0.22
Shares used in diluted per share calculations	265			264

Cash dividends declared per common share	$	0.59		$	0.53

See accompanying Notes.

INTUIT INC.
NOTES TO TABLE A

[A]	The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.

		Three Months Ended
	(in millions)	October 31, 2020		October 31, 2019
	Cost of revenue	$	15	$	15
	Selling and marketing	32		30
	Research and development	38		38
	General and administrative	26		28
	Total share-based compensation expense	$	111	$	111

[B]	We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.

	We recognized excess tax benefits on share-based compensation of $52 million and $29 million in our provision for income taxes for the three months ended October 31, 2020 and 2019, respectively.

	Our effective tax rate for the three months ended October 31, 2020 was approximately 6%. Excluding discrete tax items primarily related to share-based compensation tax benefits mentioned above, our effective tax rate was 25%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

	We recorded a $35 million tax benefit on pretax income of $22 million for the three months ended October 31, 2019. Excluding discrete tax items primarily related to share-based compensation tax benefits mentioned above, our effective tax rate was 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)

	Fiscal 2021
	Q1			Q2		Q3		Q4		Year to Date
GAAP operating income (loss)	$	209		$	—	$	—	$	—	$	209
Amortization of acquired technology	7			—		—		—		7
Amortization of other acquired intangible assets	2			—		—		—		2
Professional fees for business combinations	5			—		—		—		5
Share-based compensation expense	111			—		—		—		111
Non-GAAP operating income (loss)	$	334		$	—	$	—	$	—	$	334

GAAP net income (loss)	$	198		$	—	$	—	$	—	$	198
Amortization of acquired technology	7			—		—		—		7
Amortization of other acquired intangible assets	2			—		—		—		2
Professional fees for business combinations	5			—		—		—		5
Share-based compensation expense	111			—		—		—		111
Net (gain) loss on debt securities and other investments	(7		)	—		—		—		(7		)
Income tax effects and adjustments [A]	(66		)	—		—		—		(66		)
Non-GAAP net income (loss)	$	250		$	—	$	—	$	—	$	250

GAAP diluted net income (loss) per share	$	0.75		$	—	$	—	$	—	$	0.75
Amortization of acquired technology	0.03			—		—		—		0.03
Amortization of other acquired intangible assets	—			—		—		—		—
Professional fees for business combinations	0.02			—		—		—		0.02
Share-based compensation expense	0.42			—		—		—		0.42
Net (gain) loss on debt securities and other investments	(0.03		)	—		—		—		(0.03		)
Income tax effects and adjustments [A]	(0.25		)	—		—		—		(0.25		)
Non-GAAP diluted net income (loss) per share	$	0.94		$	—	$	—	$	—	$	0.94

Shares used in GAAP diluted per share calculation	265			—		—		—		265

Shares used in non-GAAP diluted per share calculation	265			—		—		—		265

[A]		As discussed in “About Non-GAAP Financial Measures – Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and the excess tax benefits on share-based compensation.

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)

	Fiscal 2020
	Q1			Q2			Q3			Q4			Full Year
GAAP operating income (loss)	$	10		$	270		$	1,413		$	483		$	2,176
Amortization of acquired technology	6			6			5			5			22
Amortization of other acquired intangible assets	2			1			2			1			6
Professional fees for business combinations	—			—			16			13			29
Share-based compensation expense	111			107			103			114			435
Non-GAAP operating income (loss)	$	129		$	384		$	1,539		$	616		$	2,668

GAAP net income (loss)	$	57		$	240		$	1,084		$	445		$	1,826
Amortization of acquired technology	6			6			5			5			22
Amortization of other acquired intangible assets	2			1			2			1			6
Professional fees for business combinations	—			—			16			13			29
Share-based compensation expense	111			107			103			114			435
Net (gain) loss on debt securities and other investments	1			1			2			1			5
Income tax effects and adjustments [A]	(68		)	(49		)	(29		)	(102		)	(248		)
Non-GAAP net income (loss)	$	109		$	306		$	1,183		$	477		$	2,075

GAAP diluted net income (loss) per share	$	0.22		$	0.91		$	4.11		$	1.68		$	6.92
Amortization of acquired technology	0.02			0.02			0.02			0.02			0.08
Amortization of other acquired intangible assets	0.01			—			0.01			—			0.02
Professional fees for business combinations	—			—			0.06			0.05			0.11
Share-based compensation expense	0.42			0.41			0.39			0.44			1.65
Net (gain) loss on debt securities and other investments	—			—			0.01			—			0.02
Income tax effects and adjustments [A]	(0.26		)	(0.18		)	(0.11		)	(0.38		)	(0.94		)
Non-GAAP diluted net income (loss) per share	$	0.41		$	1.16		$	4.49		$	1.81		$	7.86

Shares used in GAAP diluted per share calculation	264			264			264			264			264

Shares used in non-GAAP diluted per share calculation	264			264			264			264			264

[A]		As discussed in “About Non-GAAP Financial Measures – Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and the excess tax benefits on share-based compensation.

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)

	October 31, 2020		July 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	5,174	$	6,442
Investments	619		608
Accounts receivable, net	99		149
Income taxes receivable	29		12
Prepaid expenses and other current assets	246		314
Current assets before funds held for customers	6,167		7,525
Funds held for customers	484		455
Total current assets	6,651		7,980

Long-term investments	28		19
Property and equipment, net	743		734
Operating lease right-of-use assets	232		226
Goodwill	1,697		1,654
Acquired intangible assets, net	63		28
Long-term deferred income taxes	60		65
Other assets	233		225
Total assets	$	9,707	$	10,931

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	325	$	1,338
Accounts payable	256		305
Accrued compensation and related liabilities	233		482
Deferred revenue	574		652
Other current liabilities	280		297
Current liabilities before customer fund deposits	1,668		3,074
Customer fund deposits	484		455
Total current liabilities	2,152		3,529

Long-term debt	2,032		2,031
Operating lease liabilities	228		221
Other long-term obligations	50		44
Total liabilities	4,462		5,825

Stockholders’ equity	5,245		5,106
Total liabilities and stockholders’ equity	$	9,707	$	10,931

TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

	Three Months Ended
	October 31, 2020			October 31, 2019
Cash flows from operating activities:
Net income	$	198		$	57
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	37			49
Amortization of acquired intangible assets	9			8
Non-cash operating lease cost	13			16
Share-based compensation expense	111			111
Deferred income taxes	17			(18		)
Other	(16		)	4
Total adjustments	171			170
Originations of loans held for sale	(43		)	—
Sale and principal payments of loans held for sale	147			—
Changes in operating assets and liabilities:
Accounts receivable	47			(16		)
Income taxes receivable	(17		)	(22		)
Prepaid expenses and other assets	(38		)	(63		)
Accounts payable	(58		)	(5		)
Accrued compensation and related liabilities	(248		)	(180		)
Deferred revenue	(85		)	(68		)
Operating lease liabilities	(12		)	(14		)
Other liabilities	(17		)	14
Total changes in operating assets and liabilities	(428		)	(354		)
Net cash provided by (used in) operating activities	45			(127		)
Cash flows from investing activities:
Purchases of corporate and customer fund investments	(198		)	(207		)
Sales of corporate and customer fund investments	30			53
Maturities of corporate and customer fund investments	156			156
Purchases of property and equipment	(38		)	(38		)
Acquisitions of businesses, net of cash acquired	(85		)	—
Originations of term loans to small businesses	(11		)	(81		)
Principal repayments of term loans from small businesses	29			79
Other	(13		)	(19		)
Net cash used in investing activities	(130		)	(57		)
Cash flows from financing activities:
Repayments on borrowings under unsecured revolving credit facility	(1,000		)	—
Repayment of debt	(13		)	(13		)
Proceeds from issuance of stock under employee stock plans	88			63
Payments for employee taxes withheld upon vesting of restricted stock units	(99		)	(71		)
Cash paid for purchases of treasury stock	—			(140		)
Dividends and dividend rights paid	(158		)	(141		)
Net change in customer fund deposits	29			(23		)
Net cash used in financing activities	(1,153		)	(325		)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents	(1		)	—
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents	(1,239		)	(509		)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	6,697			2,352
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	5,458		$	1,843
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the condensed consolidated balance sheets to the total amounts reported on the condensed consolidated statements of cash flows
Cash and cash equivalents	$	5,174		$	1,630
Restricted cash and restricted cash equivalents included in funds held for customers [A]	284			213
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$	5,458		$	1,843

[A]

See quarterly reports filed on Form 10-Q for reconciliation of funds held for customers by investment category.

TABLE E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS
(In millions, except per share amounts)
(Unaudited)

	Forward-Looking Guidance
	GAAP Range of Estimate							Non-GAAP Range of Estimate
	From		To		Adjmts			From		To
Three Months Ending January 31, 2021
Revenue	$	1,825	$	1,845	$	—		$	1,825	$	1,845
Operating income	$	313	$	323	$	152	[a]	$	465	$	475
Diluted earnings per share	$	0.89	$	0.92	$	0.42	[b]	$	1.31	$	1.34

Twelve Months Ending July 31, 2021
Revenue	$	8,265	$	8,415	$	—		$	8,265	$	8,415
Operating income	$	2,425	$	2,475	$	535	[c]	$	2,960	$	3,010
Diluted earnings per share	$	7.00	$	7.15	$	1.40	[d]	$	8.40	$	8.55

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

[a]		Reflects estimated adjustments for share-based compensation expense of approximately $113 million; professional fees for business combinations of approximately $31 million; amortization of acquired technology of approximately $7 million; and amortization of other acquired intangible assets of approximately $1 million.

[b]		Reflects estimated adjustments in item [a], income taxes related to these adjustments, and other income tax effects related to the use of the non-GAAP tax rate.

[c]		Reflects estimated adjustments for share-based compensation expense of approximately $470 million; professional fees for business combinations of approximately $36 million; amortization of acquired technology of approximately $24 million; and amortization of other acquired intangibles of approximately $5 million.

[d]		Reflects estimated adjustments in item [c], income taxes related to these adjustments, and other income tax effects related to the use of the non-GAAP tax rate.

INTUIT INC.

ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated November 19, 2020 contains non-GAAP financial measures. Table B1, Table B2, and Table E reconcile the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP net income (loss) per share.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

We exclude the following items from all of our non-GAAP financial measures:

Share-based compensation expense
Amortization of acquired technology
Amortization of other acquired intangible assets
Goodwill and intangible asset impairment charges
Gains and losses on disposals of businesses and long-lived assets
Professional fees for business combinations

We also exclude the following items from non-GAAP net income (loss) and diluted net income (loss) per share:

Gains and losses on debt and equity securities and other investments
Income tax effects and adjustments
Discontinued operations

We believe these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s operating results primarily because they exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization, our individual operating segments, or our senior management. Segment managers are not held accountable for share-based compensation expense, amortization, or the other excluded items and, accordingly, we exclude these amounts from our measures of segment performance. We believe our non-GAAP financial measures also facilitate the comparison by management and investors of results for current periods and guidance for future periods with results for past periods.

The following are descriptions of the items we exclude from our non-GAAP financial measures.

Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units, and our Employee Stock Purchase Plan. When considering the impact of equity awards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards.

Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire a business in a business combination, we are required by GAAP to record the fair values of the intangible assets of the business and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired businesses. Amortization of other acquired intangible assets in operating expenses includes amortization of assets such as customer lists, covenants not to compete, and trade names.

Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets to their estimated fair values.

Gains and losses on disposals of businesses and long-lived assets. We exclude from our non-GAAP financial measures gains and losses on disposals of businesses and long-lived assets because they are unrelated to our ongoing business operating results.

Professional fees for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking, legal, and accounting fees.

Gains and losses on debt and equity securities and other investments. We exclude from our non-GAAP financial measures gains and losses that we record when we impair available-for-sale debt and equity securities and other investments.

Income tax effects and adjustments. We use a long-term non-GAAP tax rate for evaluating operating results and for planning, forecasting, and analyzing future periods. This long-term non-GAAP tax rate excludes the income tax effects of the non-GAAP pre-tax adjustments described above, and eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Based on our current long-term projections, we are using a long-term non-GAAP tax rate of 23% for fiscal 2020 and 24% for fiscal 2021. This long-term non-GAAP tax rate could be subject to change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate. We will evaluate this long-term non-GAAP tax rate on an annual basis and whenever any significant events occur which may materially affect this rate.

Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201119006230/en/

Investors

Kim Watkins

Intuit Inc.

650-944-3324

[email protected]

Media

Karen Nolan

Intuit Inc.

650-944-6619

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Professional Services Data Management Technology Software Finance Internet Accounting

MEDIA:

Logo

November 19, 2020 4:03 pm

LAS VEGAS, Nov. 19, 2020 (GLOBE NEWSWIRE) — Marathon Patent Group, Inc. (NASDAQ:MARA) (“Marathon” or “Company”), one of the largest publicly traded Bitcoin self-mining companies in North America, will be participating in Bitmain’s Mining and Investment Summit 2020, which is being held on Tuesday, November 24, 2020.

The Mining and Investment Summit 2020 brings together the leading companies in the fields of cryptocurrency mining and digital asset financial services. During the event, Marathon’s CEO Merrick Okamoto will be participating in the “Operations and Investment into Mining” panel, which will commence at 11:40 a.m. Eastern time on Tuesday, November 24^th. Interested parties may register for the event using this link.

On November 18, 2020, Marathon unveiled a new investor presentation, which contains updated financial information as of November 5, 2020. The presentation can be accessed on the Company’s website here.

To receive additional information about the company or the event, please contact Marathon’s investor relations team at [email protected].

About Marathon Patent Group
Marathon is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. For more information, visit www.marathonpg.com.

Marathon Patent Group Company Contact:

Jason Assad
Telephone: 678-570-6791
Email: [email protected]

Marathon Patent Group Investor Contact:

Gateway Investor Relations
Matt Glover and Charlie Schumacher
Telephone: 949-574-3860
Email: [email protected]

November 19, 2020 4:03 pm

NEW YORK, Nov. 19, 2020 (GLOBE NEWSWIRE) — Today, as previously announced, the Guggenheim Taxable Municipal Managed Duration Trust (“GBAB” or the “Trust”) made modifications to certain non-fundamental investment policies along with a corresponding name change. The modifications are primarily intended to provide the Trust with greater investment flexibility while remaining consistent with the Trust’s overall investment objectives.

The Trust expanded its non-fundamental 80% investment policy to include, in addition to taxable municipal securities, other investment grade, income-generating debt securities, including debt instruments issued by non-profit entities (such as entities related to healthcare, higher education and housing), municipal conduits, project finance corporations, and tax-exempt municipal securities. In addition to the 80% investment policy change, the Trust (i) removed certain limitations on the composition of the other 20% of its net assets plus the amount of any borrowings for investment purposes (“Managed Assets”), (ii) removed the limitation on illiquid investments, (iii) added a policy to invest at least 50% of its Managed Assets in taxable municipal securities and (iv) changed the level at which the Trust seeks to maintain its leverage-adjusted duration from generally less than 10 years to generally less than 15 years.

In connection with the investment policy modifications the Trust’s name changed to: Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust. The Trust will continue to trade on the NYSE under its current ticker symbol, “GBAB”.

No other changes to the Trust’s other investment policies or the Trust’s portfolio management team are currently anticipated, nor is it currently anticipated that there will be substantial portfolio turnover in conjunction with these changes in the immediate future.

No action is required by shareholders of the Trust in connection with these investment policy modifications or the change in the Trust’s name.

For updated information and a discussion of the risk considerations associated with an investment in the Trust, please visit the Trust’s website at guggenheiminvestments.com/GBAB.

About Guggenheim Investments

Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, LLC (“Guggenheim”), with $233 billion* in assets under management across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 300+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.

* Assets under management as of 09.30.2020 and include leverage of $14bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.

This information does not represent an offer to sell securities of the Trust and it is not soliciting an offer to buy securities of the Trust. There can be no assurance that the Trust will achieve its investment objectives. An investment in the Trust involves operating expenses and fees. The net asset value of the Trust will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds can trade at a discount or premium to their net asset value. Past performance is not indicative of future performance.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of any investment before they invest. For this and more information, visit

www.guggenheiminvestments.com

or contact a securities representative or
Guggenheim Funds Distributors, LLC 227 West Monroe Street, Chicago, IL 60606, 800-345-7999.

Analyst Inquiries

William T. Korver
[email protected]

Not FDIC-Insured | Not Bank-Guaranteed | May Lose Value

Member FINRA/SIPC (11/20) 45792

November 19, 2020 4:02 pm

VANCOUVER, British Columbia, Nov. 19, 2020 (GLOBE NEWSWIRE) — Ceylon Graphite Corp. (“Ceylon Graphite” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) today announced it has granted an aggregate of 7,250,000 stock options to its directors, officers and employees. Each option is exercisable at $0.215per common share at any time until November 18, 2023.

Ceylon Graphite would also like to announce that it has negotiated a debt conversion agreement (the “Debt Agreement”) with a non-arm’s length party.

Pursuant to the terms of the Debt Agreement, the Company has agreed to issue an aggregate of 750,000 common shares (“Debt Shares”) to the non-arm’s length party in exchange for the cancellation of $150,000 in debt owing to the party. The Debt Shares are being issued at a deemed price of $0.215.

The issuance of the Debt Shares is subject to the approval of the TSX Venture Exchange. All securities issued pursuant to the debt conversion are subject to a statutory four (4) month hold period

About Ceylon Graphite Corp.

Ceylon Graphite is a public company listed on the TSX Venture Exchange, that is in the business of mining for graphite, plus the exploration for and development of graphite mines in Sri Lanka. The Government of Sri Lanka has granted the Company an IML Category A license for its K1 site and exploration rights in a land package of over 120km². These exploration grids (each one square kilometer in area) cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka. Graphite mined in Sri Lanka is known to be some of the purest in the world, and currently accounts for less than 1% of the world graphite production.

Further information regarding the Company is available at www.ceylongraphite.com

Bharat Parashar, Chairman and & Chief Executive Officer
[email protected]
Corporate Communications
+1(202)352-6022

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

FORWARD LOOKING STATEMENTS:

This news release contains forward-looking information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management’s current expectations and assumptions. The forward-looking information includes statements about Ceylon Graphite’s grids, Ceylon Graphite’s plans to undertake additional drilling and to develop a mine plan, and to commence establishing mining operations. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to Ceylon Graphite, including the assumption that, there will be no material adverse change in metal prices, all necessary consents, licenses, permits and approvals will be obtained, including various Local Government Licenses and the market. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, an inability to reach a final acquisition agreement, inaccurate results from the drilling exercises, a failure to obtain or delays in obtaining the required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime governing Ceylon Graphite, a failure to comply with environmental regulations and a weakening of market and industry reliance on high quality graphite. Ceylon Graphite cautions the reader that the above list of risk factors is not exhaustive.

These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, Ceylon Graphite does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com)

November 19, 2020 3:53 pm

Beacon Fourth Quarter and Fiscal Year 2020 Earnings Call

Thursday, November 19, 2020

5:00 p.m. ET

Register for the conference call or webcast by visiting:

Beacon Investor Relations – Events & Presentations

Canada NewsWire

VANCOUVER, BC, Nov. 19, 2020 /CNW/ – The following issues have been halted by IIROC:

Company: ImagineAR Inc.

CSE Symbol: IP

All Issues: Yes

Reason: At the request of the Company Pending News

Halt Time (ET): 3:29 PM

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions

Eargo, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except share and per share amounts)

	Three months ended September 30,						Nine months ended September 30,
		2020			2019			2020			2019
Revenue, net	$	18,186		$	7,730		$	46,776		$	22,175
Cost of revenue		5,434			3,583			15,295			11,033
Gross profit		12,752			4,147			31,481			11,142
Operating expenses:
Research and development		2,871			3,219			7,888			8,781
Sales and marketing		12,354			9,290			34,041			24,698
General and administrative		5,163			3,683			14,498			8,781
Total operating expenses		20,388			16,192			56,427			42,260
Loss from operations		(7,636	)		(12,045	)		(24,946	)		(31,118	)
Other income (expense), net:
Interest income		3			136			26			555
Interest expense		(279	)		(218	)		(1,422	)		(492	)
Other income (expense), net		(187	)		(30	)		(87	)		(84	)
Loss on extinguishment of debt		(1,627	)		—			(1,627	)		—
Total other income (expense), net		(2,090	)		(112	)		(3,110	)		(21	)
Loss before income taxes		(9,726	)		(12,157	)		(28,056	)		(31,139	)
Income tax provision		—			—			—			—
Net loss and comprehensive loss	$	(9,726	)	$	(12,157	)	$	(28,056	)	$	(31,139	)
Net income (loss) attributable to common stockholders, basic and diluted	$	—		$	(12,157	)	$	(18,216	)	$	(31,139	)
Net income (loss) per share attributable to common stockholders, basic and diluted	$	—		$	(46.26	)	$	(57.73	)	$	(122.74	)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic and diluted		398,895			262,785			315,546			253,701

Eargo, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share amounts)

	September 30,			December 31,
		2020			2019
ASSETS
Current assets:
Cash and cash equivalents		70,224			13,384
Accounts receivable, net		2,576			2,051
Inventories		3,289			2,880
Prepaid expenses and other current assets		1,379			1,598
Total current assets		77,468			19,913
Operating lease right-of-use assets		1,369			—
Property and equipment, net		6,946			5,400
Other assets		2,304			1,992
Total assets	$	88,087		$	27,305
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	6,658		$	5,428
Accrued expenses		10,809			9,939
Long-term debt, current portion		—			4,800
Other current liabilities		2,079			1,717
Deferred revenue, current		441			406
Lease liability, current portion		1,097			—
Total current liabilities		21,084			22,290
Lease liability, noncurrent portion		412			—
Deferred revenue, noncurrent portion		17			269
Long-term debt, noncurrent portion		14,502			7,446
Convertible preferred stock warrant liability		544			396
Other liabilities		—			127
Total liabilities		36,559			30,528
Commitments and contingencies (Note 5)
Convertible preferred stock, $0.0001 par value; 73,108,323 and 36,269,166 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 24,229,281 and 11,825,812 issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		223,125			152,880
Stockholders’ deficit:
Common stock; $0.0001 par value; 110,000,000 and 55,190,000 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 534,599 and 265,943 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		—			—
Additional paid in capital		15,662			3,100
Accumulated deficit		(187,259	)		(159,203	)
Total stockholders’ deficit		(171,597	)		(156,103	)
Total liabilities, convertible preferred stock and stockholders’ deficit	$	88,087		$	27,305

Eargo, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

	Nine months ended September 30,
		2020			2019
Operating activities:
Net loss	$	(28,056	)	$	(31,139	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,805			1,011
Stock-based compensation		2,363			997
Non-cash interest expense and amortization of debt discount		1,178			200
Non-cash operating lease expense		838			—
Bad debt expense		2,135			44
Loss on extinguishment of debt		1,627			—
Change in fair value of warrant liability		(122	)		84
Change in fair value of derivative liability		206			—
Changes in operating assets and liabilities:
Accounts receivable		(2,660	)		(113	)
Inventories		(409	)		(1,110	)
Prepaid expenses and other current assets		219			(199	)
Other assets		963			(311	)
Accounts payable		579			(585	)
Accrued expenses		147			1,750
Other current liabilities		362			(172	)
Deferred revenue		(217	)		409
Operating lease liabilities		(883	)		—
Other liabilities		(127	)		(59	)
Net cash used in operating activities		(20,052	)		(29,193	)
Investing activities:
Purchases of property and equipment		(844	)		(1,616	)
Capitalized software development costs		(2,601	)		(1,017	)
Net cash used in investing activities		(3,445	)		(2,633	)
Financing activities:
Proceeds from stock options exercised		359			40
Proceeds from debt financing		15,000			5,000
Proceeds from convertible preferred stock issuance, net of issuance costs		67,867			865
Proceeds from issuance of convertible notes, net of issuance costs		10,053			—
Proceeds from PPP loan		4,574			—
Repayment of PPP loan		(4,574	)		—
Debt repayments		(12,720	)		—
Payments of deferred offering costs		(222	)		—
Net cash provided by financing activities		80,337			5,905
Net increase (decrease) in cash and cash equivalents and restricted cash		56,840			(25,921	)
Cash and cash equivalents and restricted cash at beginning of period		13,384			51,201
Cash and cash equivalents and restricted cash at end of period	$	70,224		$	25,280
Supplemental disclosure of cash flow information:
Cash paid for interest	$	253		$	275
Non-cash operating activities:
Lease liability obtained in exchange for right-of-use asset	$	2,392		$	—
Non-cash investing and financing activities:
Property and equipment and capitalized software costs in accounts payable and accrued liabilities	$	421		$	307
Deferred offering costs in accounts payable and accrued liabilities	$	1,053		$	—
Convertible preferred stock issuance costs included in accounts payable	$	600		$	—
Derivative liability in connection with issuance of convertible promissory notes on issuance	$	2,879		$	—
Issuance of Series E convertible preferred stock upon extinguishment of convertible notes	$	12,818		$	—
Settlement of derivative liability in connection with extinguishment of convertible notes	$	3,085		$	—
Issuance of convertible preferred stock warrants in connection with debt financing	$	270		$	41