Market Newsdesk

MIGDAL HAEMEK, Israel, Nov. 12, 2020 (GLOBE NEWSWIRE) — Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reported today its results for the third quarter ended September 30, 2020.

Third
Quarter Results Overview

Revenues for the third quarter of 2020 were $310 million, as compared to $310 million in the prior quarter and $312 million in the third quarter of 2019.

G
ross profit and operating profit for the third quarter of 2020 were $53 million and $19 million as compared to $58 million and $22 million in the prior quarter and as compared to $58 million and $23 million in the third quarter of 2019.

Net profit for the third quarter of 2020 was $15 million, or $0.14 basic and diluted earnings per share, as compared to net profit of $19 million, or $0.18 basic and diluted earnings per share in the prior quarter, and $22 million or $0.21 basic and diluted earnings per share in the third quarter of 2019.

EBITDA for the third quarter of 2020 was $79 million, as compared to $82 million in the prior quarter and to $75 million in the third quarter of 2019.

As announced in the beginning of September, the Company’s IT safeguards identified a security incident on some of its systems. The Company took immediate actions to prevent damage, shutting down all of its Israeli and US IT systems, hence halting those facilities. In less than a week, all factories were returned to operational capability. Due to the effective procedures, there was no damage to the functional quality of the work in progress, with Company and customer data protected. Activities further securing the Company’s IT environment were put in place.

The impact of this event on Company’s operations was between 8-12 days of missed new wafer starts and, as the incident occurred during the last month of the quarter, during a demand ramp, it lost multiple weeks of full fab activity levels.

Cash flow generated from operations in the third quarter of 2020 was $69 million with investment in fixed assets, net of $67 million that included payments related to the 300mm facility capacity expansion program. In addition, in the third quarter of 2020, the company repaid $26 million of its debt.

Shareholders’ equity as of September 30, 2020 was a record of $1.41 billion, as compared to $1.35 billion as of December 31, 2019, and current ratio as of September 30, 2020 was 4.1X as compared to 4.3X as of December 31, 2019.

Business Outlook

Tower Semiconductor expects revenues for the fourth quarter of 2020 to be $340 million, with an upward or downward range of 5%, demonstrating 10% quarter over quarter growth and 11% year over year growth.

Mr. Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, commented: “Our fourth quarter of 2020 revenue growth guidance, 17% quarter over quarter and 14% year over year organic, driven by continued and increased strength in our RF and Power IC served markets, sets a good bridge to the new year. We look forward to 2021, with RF and Power IC continuing the present trend and increases in both industrial sensors and power discrete served markets, as evidenced by customer demand forecasts, and backed by market research reports. This strength should couple well with our increased 300mm and 200mm capability and capacity expansions.”

Teleconference and Webcast

Tower Semiconductor will host an investor conference call today, Thursday, November 12, 2020, at 10:00 a.m. Eastern time (9:00 a.m. Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific time and 5:00 p.m. Israel time) to discuss the company’s financial results for the third quarter of 2020 and its outlook.

This call will be webcast and can be accessed via Tower Semiconductor’s website at www.towersemi.com or by calling 1-888-642-5032 (U.S. Toll-Free), 03-918-0644 (Israel), +972-3-918-0644 (International). For those who are not available to listen to the live broadcast, the call will be archived on Tower Semiconductor’s website for 90 days.

The Company presents its financial statements in accordance with U.S. GAAP. The financial information included in the tables below includes unaudited condensed financial data. Some of the financial information in this release and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, which we describe in this release as “adjusted” financial measures, are non-GAAP financial measures as defined in Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission as they apply to our Company. These adjusted financial measures are calculated excluding one or both of the following: (1) amortization of acquired intangible assets and (2) compensation expenses in respect of equity grants to directors,
officers,
and employees. These adjusted financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables also present the GAAP financial measures, which are most comparable to the adjusted financial measures, as well as a reconciliation between the adjusted financial measures and the comparable GAAP financial measures. As used and/ or presented in this release and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, as well as calculated in the tables herein, the term Earnings Before Interest Tax Depreciation and Amortization (EBITDA) consists of net profit in accordance with GAAP, excluding financing
and other income (
expense
)
, net, taxes, non-controlling interest, depreciation and amortization expense and stock-based compensation expense. EBITDA is reconciled in the tables below from GAAP operating profit. EBITDA is not a required GAAP financial measure and may not be comparable to a similarly titled measure employed by other companies. EBITDA and the adjusted financial information presented herein and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Net Cash, as used and/ or presented in this release and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, is comprised of cash, cash equivalents, short-term deposits and marketable securities less debt amounts as presented in the balance sheets included herein. The term Net Cash is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for cash, debt, operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP.
The term Free Cash Flow, as used and/ or presented in this release and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, is calculated to be net cash provided by operating activities (in the amounts of $6
9
million, $6
7
million and $7
3
million for the three months periods ended
September 30, 2020,
June 30
, 2020 and September 30, 2019
, respectively) less cash used for investments in property and equip
ment, net (in the amounts of $67
million, $63 million and $
43
million for the three months periods ended
September 30, 2020, June 30, 2020 and September 30, 2019
, respectively)
.
The term Free Cash Flow is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP
.

About Tower Semiconductor

Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), the leader in high-value analog semiconductor foundry solutions, provides technology and manufacturing platforms for integrated circuits (ICs) in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating positive and sustainable impact on the world through long term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, integrated power management (BCD and 700V), and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as Transfer Optimization and development Process Services (TOPS) to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor operates two manufacturing facilities in Israel (150mm and 200mm), two in the U.S. (200mm) and three facilities in Japan (two 200mm and one 300mm) through TPSCo. For more information, please visit www.towersemi.com.

CONTACTS:
Noit Levy | Investor Relations | +972 74 737 7556 | [email protected]

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements and you should not place any undue reliance on such forward-looking statements. Potential risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) demand in our customers’ end markets; (ii) over demand for our foundry services and/or products that exceeds our capacity; (iii) maintaining existing customers and attracting additional customers, (iv) high utilization and its effect on cycle time, yield and on schedule delivery which may cause customers to transfer their product(s) to other fabs, (v) operating results fluctuate from quarter to quarter making it difficult to predict future performance, (vi) impact of our debt and other liabilities on our financial position and operations, (vii) our ability to successfully execute acquisitions, integrate them into our business, utilize our expanded capacity and find new business, (viii) fluctuations in cash flow, (ix) our ability to satisfy the covenants stipulated in our agreements with our lender banks and bondholders (as of September 30, 2020 we are in compliance with all such covenants included in our banks’ agreements, bond G indenture and others), (x) pending litigation, (xi) new customer engagements, qualification and production ramp-up at our facilities, including TPSCo and the San Antonio facility, (xii) meeting the conditions set in the approval certificates received from the Israeli Investment Center under which we received a significant amount of grants in past years, (xiii) receipt of orders that are lower than the customer purchase commitments, (xiv) failure to receive orders currently expected, (xv) possible incurrence of additional indebtedness, (xvi) effect of global recession, unfavorable economic conditions and/or credit crisis, (xvii) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles, (xviii) possible situations of obsolete inventory if forecasted demand exceeds actual demand when we manufacture products before receipt of customer orders, (xix) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (xx) the execution of debt re-financing and/or fundraising to enable the service of our debt and/or other liabilities and/or for strategic opportunities and the possible unavailability of such financing and/ or the availability of such financing in unfavorable terms , (xxi) operating our facilities at high utilization rates which is critical in order to cover a portion or all of the high level of fixed costs associated with operating a foundry, and our debt, in order to improve our results, (xxii) the purchase of equipment to increase capacity, the timely completion of the equipment installation, technology transfer and raising the funds therefor, (xxiii) the concentration of our business in the semiconductor industry, (xxiv) product returns, (xxv) our ability to maintain and develop our technology processes and services to keep pace with new technology, evolving standards, changing customer and end-user requirements, new product introductions and short product life cycles, (xxvi) competing effectively, (xxvii) use of outsourced foundry services by both fabless semiconductor companies and integrated device manufacturers; (xxviii) achieving acceptable device yields, product performance and delivery times, (xxix) our dependence on intellectual property rights of others, our ability to operate our business without infringing others’ intellectual property rights and our ability to enforce our intellectual property against infringement, (xxx) our fab3 landlord’s construction project adjacent to our fabrication facility, including possible temporary reductions or interruptions in the supply of utilities and/ or fab manufacturing, as well as claims that our noise abatement efforts are not adequate under the terms of the amended lease; (xxxi) retention of key employees and recruitment and retention of skilled qualified personnel, (xxxii) exposure to inflation, currency rates (mainly the Israeli Shekel and Japanese Yen) and interest rate fluctuations and risks associated with doing business locally and internationally, as well fluctuations in the market price of our traded securities, (xxxiii) issuance of ordinary shares as a result of conversion and/or exercise of any of our convertible securities, as well as any sale of shares by any of our shareholders, or any market expectation thereof, which may depress the market price of our ordinary shares and may impair our ability to raise future capital, (xxxiv) meeting regulatory requirements worldwide, including environmental and governmental regulations, (xxxv) potential engagement for fab establishment, joint venture and/or capital lease transactions for capacity enhancement in advanced technologies, (xxxvi) potential effect on TPSCo and the Company due to the sale of PSCS (a company holding 49% of TPSCo) by Panasonic to Nuvoton, (xxxvii) industry and market impact due to the coronavirus and its potential impact on our business, operational continuity, supply chain, revenue and profitability; (xxxviii) potential security, cyber and privacy breaches, including the recently announced security incident, and (xxxix) business interruption due to fire and other natural disasters, the security situation in Israel and other events beyond our control such as power interruptions.

A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect our business is included under the heading “Risk Factors” in Tower’s most recent filings on Forms 20-F and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority. Future results may differ materially from those previously reported. The Company does not intend to update, and expressly disclaims any obligation to update, the information contained in this release.

(Financial tables follow)

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
						September 30,		June 30,		December 31,
						2020		2020		2019
A S S E T S
	CURRENT ASSETS
		Cash and cash equivalents			$	207,704	$	258,793	$	355,561
		Short-term deposits				313,029		269,263		215,609
		Marketable securities				183,946		195,886		176,070
		Trade accounts receivable				118,111		128,401		126,966
		Inventories				204,933		210,129		192,256
		Other current assets				30,379		28,158		22,019
			Total current assets			1,058,102		1,090,630		1,088,481
	LONG-TERM INVESTMENTS					41,303		41,219		40,085
	PROPERTY AND EQUIPMENT, NET					780,596		765,895		681,939
	GOODWILL AND INTANGIBLE ASSETS, NET					15,806		16,298		17,281
	DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET					88,878		91,834		105,047
			TOTAL ASSETS		$	1,984,685	$	2,005,876	$	1,932,833
LIABILITIES AND SHAREHOLDERS’ EQUITY
	CURRENT LIABILITIES
		Short-term debt			$	86,717	$	79,668	$	65,932
		Trade accounts payable				104,354		154,517		119,199
		Deferred revenue and customers’ advances				9,660		8,455		10,322
		Other current liabilities				58,098		68,192		57,603
			Total current liabilities			258,829		310,832		253,056
	LONG-TERM DEBT					229,266		219,764		245,821
	LONG-TERM CUSTOMERS’ ADVANCES					25,780		27,570		28,196
	LONG-TERM EMPLOYEE RELATED LIABILITIES					16,717		14,970		13,285
	DEFERRED TAX AND OTHER LONG-TERM LIABILITIES					40,536		40,596		45,752
			TOTAL LIABILITIES			571,128		613,732		586,110
			TOTAL SHAREHOLDERS’ EQUITY			1,413,557		1,392,144		1,346,723
				TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,984,685	$	2,005,876	$	1,932,833

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars and share count in thousands, except per share data)
				Three Months Ended
				September 30,			June 30,			September 30,
				2020			2020			2019
REVENUES			$	310,212		$	310,090		$	312,122
COST OF REVENUES				256,751			252,385			253,841
		GROSS PROFIT		53,461			57,705			58,281
OPERATING COSTS AND EXPENSES:
	Research and development			19,569			19,424			18,722
	Marketing, general and administrative			14,803			16,154			16,840
				34,372			35,578			35,562
		OPERATING PROFIT		19,089			22,127			22,719
FINANCING AND OTHER INCOME (EXPENSE), NET				(565	)		1,831			(426	)
		PROFIT BEFORE INCOME TAX		18,524			23,958			22,293
INCOME TAX BENEFIT (EXPENSE), NET				(2,798	)		(2,484	)		61
		NET PROFIT		15,726			21,474			22,354
Net income attributable to non-controlling interest				(528	)		(2,422	)		(166	)
		NET PROFIT ATTRIBUTABLE TO THE COMPANY	$	15,198		$	19,052		$	22,188
BASIC EARNINGS PER SHARE			$	0.14		$	0.18		$	0.21
Weighted average number of shares				107,475			106,956			106,644
DILUTED EARNINGS PER SHARE			$	0.14		$	0.18		$	0.21
Weighted average number of shares				108,500			108,277			107,601
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT:
	GAAP NET PROFIT		$	15,198		$	19,052		$	22,188
		Stock based compensation		3,460			3,795			3,775
		Amortization of acquired intangible assets		490			493			492
	ADJUSTED NET PROFIT		$	19,148		$	23,340		$	26,455
ADJUSTED BASIC AND DILUTED EARNINGS PER SHARE			$	0.18		$	0.22		$	0.25

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars and share count in thousands, except per share data)
				Nine Months Ended
				September 30,
				2020			2019
REVENUES			$	920,473		$	928,293
COST OF REVENUES				756,764			753,454
		GROSS PROFIT		163,709			174,839
OPERATING COSTS AND EXPENSES:
	Research and development			58,407			56,702
	Marketing, general and administrative			47,648			50,319
				106,055			107,021
		OPERATING PROFIT		57,654			67,818
FINANCING AND OTHER INCOME (EXPENSE), NET				(847	)		1,247
		PROFIT BEFORE INCOME TAX		56,807			69,065
INCOME TAX EXPENSE, NET				(3,576	)		(588	)
		NET PROFIT		53,231			68,477
Net loss (income) attributable to non-controlling interest				(1,961	)		864
		NET PROFIT ATTRIBUTABLE TO THE COMPANY	$	51,270		$	69,341
BASIC EARNINGS PER SHARE			$	0.48		$	0.65
Weighted average number of shares				107,083			106,103
DILUTED EARNINGS PER SHARE			$	0.47		$	0.65
Weighted average number of shares				108,311			107,252
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT:
	GAAP NET PROFIT		$	51,270		$	69,341
		Stock based compensation		11,798			11,482
		Amortization of acquired intangible assets		1,293			2,627
	ADJUSTED NET PROFIT		$	64,361		$	83,450
ADJUSTED EARNINGS PER SHARE:
	Basic		$	0.60		$	0.79
	Diluted		$	0.59		$	0.78

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA (UNAUDITED)
(dollars in thousands)
			Three months ended
			September 30,		June 30,		September 30,
			2020		2020		2019
GAAP OPERATING PROFIT		$	19,089	$	22,127	$	22,719
	Depreciation of fixed assets		56,131		55,175		48,355
	Stock based compensation		3,460		3,795		3,775
	Amortization of acquired intangible assets		490		493		492
EBITDA		$	79,170	$	81,590	$	75,341
			Nine months ended
			September 30,		September 30,
			2020		2019
GAAP OPERATING PROFIT		$	57,654	$	67,818
	Depreciation of fixed assets		162,790		142,362
	Stock based compensation		11,798		11,482
	Amortization of acquired intangible assets		1,293		2,627
EBITDA		$	233,535	$	224,289

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED)
(dollars in thousands)
			Three months ended
			September 30,			June 30,			September 30,
			2020			2020			2019
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD		$	258,793		$	251,348		$	405,158
	Net cash provided by operating activities		68,612			66,603			72,735
	Investments in property and equipment, net		(66,862	)		(62,537	)		(43,017	)
	Exercise of options		272			1,127			43
	Debt repaid, net		(26,355	)		(5,000	)		(5,606	)
	Effect of Japanese Yen exchange rate change over cash balance		2,227			682			(104	)
	Investments in short-term deposits, marketable securities and other assets, net		(28,983	)		6,570			(11,573	)
CASH AND CASH EQUIVALENTS – END OF PERIOD		$	207,704		$	258,793		$	417,636
			Nine months ended
			September 30,
			2020			2019
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD		$	355,561		$	385,091
	Net cash provided by operating activities		203,551			219,759
	Investments in property and equipment, net		(192,306	)		(128,462	)
	Exercise of options		1,486			440
	Debt repaid, net		(55,552	)		(16,155	)
	Effect of Japanese Yen exchange rate change over cash balance		2,733			2,361
	Investments in short-term deposits, marketable securities and other assets, net		(107,769	)		(45,398	)
CASH AND CASH EQUIVALENTS – END OF PERIOD		$	207,704		$	417,636

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
						Nine months ended						Three months ended
						September 30,			September 30,			September 30,			June 30,			September 30,
						2020			2019			2020			2020			2019
CASH FLOWS – OPERATING ACTIVITIES
	Net profit for the period				$	53,231		$	68,477		$	15,726		$	21,474		$	22,354
	Adjustments to reconcile net profit for the period
		to net cash provided by operating activities:
			Income and expense items not involving cash flows:
				Depreciation and amortization		177,576			158,070			60,277			60,268			53,203
				Effect of exchange rate differences on debentures		(82	)		9,300			828			3,159			3,095
				Other expense (income), net		(332	)		(711	)		558			(876	)		(266	)
			Changes in assets and liabilities:
				Trade accounts receivable		10,260			30,775			11,556			(12,981	)		(496	)
				Other assets		(2,508	)		(7,733	)		(7,630	)		(1,998	)		(1,978	)
				Inventories		(10,691	)		(16,293	)		6,689			(11,209	)		(13,276	)
				Trade accounts payable		(23,249	)		(3,094	)		(10,299	)		(6,751	)		12,110
				Deferred revenue and customers’ advances		(3,094	)		(9,471	)		(596	)		(1,927	)		4,178
				Other current liabilities		(103	)		(8,340	)		(10,832	)		13,977			(6,494	)
				Long-term employee related liabilities		3,847			7			1,793			2,109			(32	)
				Deferred tax, net and other long-term liabilities		(1,304	)		(1,228	)		542			1,358			337
				Net cash provided by operating activities		203,551			219,759			68,612			66,603			72,735
CASH FLOWS – INVESTING ACTIVITIES
	Investments in property and equipment, net					(192,306	)		(128,462	)		(66,862	)		(62,537	)		(43,017	)
	Investments in deposits, marketable securities and other assets, net					(107,769	)		(45,398	)		(28,983	)		6,570			(11,573	)
				Net cash used in investing activities		(300,075	)		(173,860	)		(95,845	)		(55,967	)		(54,590	)
CASH FLOWS – FINANCING ACTIVITIES
	Debt repaid, net					(55,552	)		(16,155	)		(26,355	)		(5,000	)		(5,606	)
	Exercise of options					1,486			440			272			1,127			43
				Net cash used in financing activities		(54,066	)		(15,715	)		(26,083	)		(3,873	)		(5,563	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE						2,733			2,361			2,227			682			(104	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS						(147,857	)		32,545			(51,089	)		7,445			12,478
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD						355,561			385,091			258,793			251,348			405,158
CASH AND CASH EQUIVALENTS – END OF PERIOD					$	207,704		$	417,636		$	207,704		$	258,793		$	417,636

NEW YORK and SAN DIEGO, Nov. 12, 2020 (GLOBE NEWSWIRE) — Zentalis Pharmaceuticals, Inc. (Nasdaq: ZNTL), a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers, today announced that Anthony Sun, MD, Chairman and Chief Executive Officer of Zentalis, will participate in two upcoming virtual investor conferences.

Presentation Details:

Event: Jefferies Virtual London Healthcare Conference
Format: Fireside chat
Date: Thursday, November 19, 2020
Time: 5:00 p.m. GMT/12:00 p.m. EST

Event: SVB Leerink Oncology 1×1 Day
Format: One-on-one meetings
Date: Thursday, November 19, 2020

A live webcast of the Jefferies fireside chat will be accessible through the Investors section of the Company’s website at www.zentalis.com. Following the event, an archived webcast will be available on the Zentalis website.

About Zentalis

Zentalis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers. The Company is developing a broad pipeline of potentially best-in-class oncology candidates, including ZN-c5, an oral selective estrogen receptor degrader (SERD) for ER+/HER2- breast cancer, ZN-c3, a WEE1 inhibitor, ZN-d5, a BCL-2 inhibitor and ZN-e4, an EGFR inhibitor. Zentalis has operations in both New York and San Diego.

For more information, please visit www.zentalis.com. Follow Zentalis on Twitter at @ZentalisP and on LinkedIn at www.linkedin.com/company/zentalis-pharmaceuticals.

Investor Contact:

Thomas Hoffmann

Solebury Trout

1.646.378.2931

[email protected]

Media Contact:

Julia Deutsch

Solebury Trout

1.646.378.2967

[email protected]

ATLANTA, Nov. 12, 2020 (GLOBE NEWSWIRE) — First Advantage, a global leader in background check and drug screening solutions, announced today that Executive Vice President and CFO David Gamsey was named Large Private Company CFO of the Year, as part of the Atlanta Business Chronicle’s 2020 CFO of the Year Awards.

The program, held in partnership with the Association for Corporate Growth, seeks to honor the city’s leading finance executives for their work, recognizing opportunities, identifying and managing risk, diminishing debt, achieving profitable growth and serving as corporate financial stewards.

Head of global finance for all operations, Gamsey joined First Advantage in 2016. Prior to that, he spent more than eight years at Air Serv Corporation, first as Chief Financial Officer and later as Chief Operating Officer. Gamsey also held executive positions at Beecher Carlson, Innotrac Corporation and AHL Services. An accounting major in college and a CPA, he started his career working for public accounting firms, Arthur Andersen and Price Waterhouse.

With regard to First Advantage, a recent profile of Gamsey in the Atlanta Business Chronicle details his recent accomplishments, including his work, which contributed to the doubling of the company’s enterprise value. First Advantage CEO Scott Staples commented, “David is the consummate professional, a leader with experience and integrity. He is always thinking about what’s good for the company, and with his support, First Advantage continues to grow.”

Gamsey shared, “Having spent my entire career in accounting and finance, it’s a huge honor to be named CFO of the Year. I’m extremely proud of the work we’re doing at First Advantage as a technology-enabled company. During my tenure, we went from a No. 3 share in the market to No. 1, expanding our client-facing solutions and enhancing our client service. It’s an exciting time to be a part of First Advantage.”

To read more about Gamsey, visit https://www.bizjournals.com/atlanta/news/2020/10/30/10-30-20-b-large-private-co-gamsey-cfo.html.

About First Advantage

First Advantage provides comprehensive background screening, identity and information solutions that give employers and housing providers access to actionable information that results in faster, more accurate people decisions. With an advanced global technology platform and superior customer service delivered by experts who understand local markets, First Advantage helps customers around the world build fully scalable, configurable screening programs that meet their unique needs. Headquartered in Atlanta, Georgia, First Advantage has offices throughout North America, Europe, Asia and the Middle East.

To learn more, please visit fadv.com.

Note to editors: Trademarks and registered trademarks referenced herein remain the property of their respective owners. A copy of the full research report can be requested through First Advantage’s media contact.

Media Contact: 
Elisabeth Warrick
First Advantage
[email protected]
678-710-7298

TORONTO, Nov. 12, 2020 (GLOBE NEWSWIRE) — Bunker Hill Mining Corporation (the “Company”) (CSE: BNKR) is pleased to report that it has launched a Preliminary Economic Assessment (“PEA”), due in Q1-2021, to assess the potential to quickly restart production for minimal capital expenditure at its Bunker Hill Mine located in Idaho’s Silver Valley, USA.

Sam Ash, CEO of Bunker Hill Mining, stated: “We believe that there is strong potential to quickly restart production, which stopped in the early 1980s, for minimal capital by focusing on the de-watered upper areas of the mine, utilizing existing infrastructure, and based on truck haulage and toll milling methods. The rapid restart would allow us to self-fund our ongoing high grade silver exploration, immediately crystalize the value created through exploration, and demonstrate our ability to successfully operate the mine based on modern techniques.”

The PEA will be based on the resource published on September 28, 2020. Consulting Engineers from MineTech International LLC have been engaged to deliver the PEA, which will be conducted in accordance with National Instrument 43-101 (“NI 43-01”). The focus will be upon the study of mining operations conducted above the current water level (Level 11). This will include a systematic study of existing infrastructure, capital cost estimates, operating cost estimates, metallurgy, resource modeling, mine design and scheduling, ventilation, haulage, and marketing. The key areas of trade-off study will include: 1) Truck haulage from Russell Tunnel vs rail haulage from Kellogg Tunnel; 2) Toll-milling vs construction of various in-house processing options; 3) Sensitivity to production rate from 400-1000 TPD; Contract vs. Owner-Operator Mining; and Grade vs Tonnage trade-offs.

In addition, the Company continues to make good progress on its ongoing high grade silver focused exploration campaign which commenced September. Particular focus will be made to follow up recently released drill results in the near surface UTZ target area with the intent of adding to the recently reported resource.

Figure 1: Isometric view of UTZ exploration target area showing completed 2020 drill holes and additional planned holes
 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/678ca99b-9fd4-47c3-8920-7d5dd5770e75

James Stonehouse, VP of Exploration, stated: “In my short time on site I have seen the outstanding mineral potential that exists at Bunker Hill.  As our geologic understanding continues to grow through modeling and drilling, I am confident in our ability to add to our already sizable resource through continued exploration success in both the upper and lower levels of the mine.”

A total of 5000’ of core were already drilled from surface with two drill rigs currently in operation. The first rig is focused on developing further the high-grade silver targets identified in the UTZ Ore zone between the 5 and 6 Levels as described in the press release of 27 October 2020. The second is exploring the historic high-grade silver targets in close proximity to the 9 Level. Assay results are expected from mid-December. All of these silver targets are close to existing infrastructure and have the potential to add high-grade resources to the upper level inventory and add greatly to the value of any restart plan. In support of the PEA, the Company will conduct approximately 4000’ of infill drilling designed to upgrade the highest-grade inferred resources of contained within the UTZ, Newgard and Quill ore bodies, above the 9 Level, into the Indicated Resources category.

The Company advises that it does not propose to base its production decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. The Company further cautions that a PEA is preliminary in nature. No mining study has been completed. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized.

Qualified Person

Mr. Scott E. Wilson, CPG, President of Resource Development Associates Inc. and a consultant to the Company, is an Independent “Qualified Person” as defined by NI 43-101 and is acting at the Qualified Person for the Company. He has reviewed and approved the technical information summarized in this news release.

About Bunker Hill Mining Corp.

Bunker Hill Mining Corp. has an option to acquire 100% of all saleable assets at the Bunker Hill Mine. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.

For additional information contact:

Sam Ash, President and Chief Executive Officer
+1 208 786 6999
[email protected]

Cautionary Statements

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on
information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results;
risks of basing a
production decision on a feasibility study of mineral reserves demonstrating economic and technical viability,
resulting in
increased uncertainty
due to
multiple technical and economic risks of failure which are associated with this production decision
including, among others,
areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts
and, a
s a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing
a commercially mineable deposit
with
no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. Failure to commence production would have a material adverse impact on the Company’s ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability
;
delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of proj
ects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits contained in our website may not be comparable with information made public by companies that report in accordance with U.S. standards.

BARRIE, Ontario, Nov. 12, 2020 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation and derivative products, today announced it has accepted the resignation of its Chief Financial Officer, Bobby Kwon, who is leaving for family reasons. Mr. Kwon will remain with the Company through to the end of November when the Company will appoint an interim CFO. The Company will also commence a rigorous search for a permanent replacement immediately.

“On behalf of the Board, we would like to thank Bobby for his many contributions to the Company over the last year and wish him well for the future,” said Pat McCutcheon, CEO, MediPharm Labs. “We look forward to commencing a rigorous search for a new Chief Financial Officer that will support the Company through our next phase of growth as a pharmaceutical company.”

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical-quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and has fully commercialized its wholly-owned Australian extraction facility. MediPharm Labs Australia was established in 2017.

For further information, please contact:

Laura Lepore, VP, Investor Relations
Telephone: 705-719-7425 ext 1525
Email: [email protected]     
Website: www.medipharmlabs.com    

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, the Company’s next phase of growth as a pharmaceutical company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements 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 the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

SPRINGDALE, Ark., Nov. 12, 2020 (GLOBE NEWSWIRE) — Tyson Foods, Inc. (NYSE: TSN) today announced a Forest Protection Standard focused on reducing deforestation risk in its global supply chain of four commodities – cattle and beef; soy; palm oil; and pulp, paper and packaging.

Earlier this year, Tyson Foods partnered with Proforest to conduct a deforestation risk assessment. The assessment concluded that nearly 94 percent of the company’s land footprint is at no to low risk of being associated with deforestation. To proactively address the remaining six percent that was found to be at risk, the Forest Protection Standard was developed to ensure the company is continuing to target the reduction of deforestation risk throughout the global supply chain.

“As one of the world’s largest food companies and a recognized leader in protein, we have an important role in protecting forests and other natural ecosystems,” said Dean Banks, Tyson Foods president and CEO. “We are asserting our ambition to make protein more sustainable and look forward to working with our supply chain partners, customers and other stakeholders to do our part on this important issue.”

To support the Forest Protection Standard, specific Commodity Action Plans are being developed to outline the work required in each commodity area to support deforestation free sourcing. Progress towards meeting the goals of the Forest Protection Standard will be outlined in the company’s annual Sustainability Report.

Tyson Foods is a member of the United Nations Global Compact and supports the United Nations Sustainable Development Goals (UNSDG) and its 2030 agenda for sustainable development. Tyson Foods Forest Protection Standard aligns with three SDGs including Goal 12 – Responsible Consumption and Production; Goal 13 – Climate Action; and Goal 15 – Life on Land. For more information on sustainability at Tyson Foods, visit www.tysonsustainability.com.

About Tyson Foods

Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 141,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.

Contact:
Kelsie Gibbs, 405-919-9597, [email protected] 

Category: IR, Newsroom

BROOKFIELD, NEWS, Nov. 12, 2020 (GLOBE NEWSWIRE) — Brookfield Asset Management Inc. (NYSE: BAM, TSX: BAM.A) today announced financial results for the quarter ended September 30, 2020. 

Bruce Flatt, CEO of Brookfield, stated, “Our third quarter results reflect the strength of both our operating businesses and our asset management franchise. We generated record operating FFO in the quarter, and over the last twelve months earned a record $2.8 billion of cash available for distribution and/or reinvestment, underlining the stability and continued growth of our cash flows. With over $75 billion of capital for deployment, our business is stronger than it has ever been.”

Operating Results

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended							Last Twelve Months Ended
	2020			2019				2020					2019
Net income attributable to shareholders1	$	172		$	947			$	69				$	3,845
Per Brookfield share1,2	0.10			0.61				(0.02		)			2.48
Funds from operations1,3	$	1,039		$	826			$	4,288				$	4,341
Per Brookfield share1,2,3	0.65			0.54				2.70					2.86
Net income4	$	542		$	1,756			$	530				$	6,744

1.     Excludes amounts attributable to non-controlling interests.
2.     2019 per share amounts have been updated to reflect BAM’s three-for-two stock split effective April 1, 2020.
3.     See Basis of Presentation on page 9 and a reconciliation of net (loss) income to FFO on page 6.
4.     Consolidated basis – includes amounts attributable to non-controlling interests.

Funds from operations (FFO) were $1.0 billion for the quarter and $4.3 billion over the last twelve months. Fee-related earnings were $372 million for the quarter and $1.4 billion over the last twelve months, representing increases of 22% and 36% from the prior periods, respectively. This reflects record fundraising and deployment across our long-term and perpetual private funds, growth in our listed affiliates, and a full year’s contribution of fee-related earnings from our credit business. FFO from invested capital increased 34% from the prior year quarter and was driven by positive results in several of our private equity businesses and financial assets which reversed losses from the second quarter. We also recorded $162 million of disposition gains in FFO. All of this led to overall net income in the quarter of $542 million. Net income attributable to shareholders was $172 million, or $0.10 per share.

Regular Dividend Declaration

The Board declared a quarterly dividend of US$0.12 per share, payable on December 31, 2020 to shareholders of record as at the close of business on November 30, 2020. The Board also declared the regular monthly and quarterly dividends on its preferred shares.

Operating Highlights

We raised $18 billion of private fund capital during the quarter, and approximately $40 billion over the last twelve months. Growth in fee-bearing capital over the last twelve months led to a 36% increase in fee-related earnings over the same period.

Fundraising included $12 billion of previously announced commitments to our latest distressed debt fund and $6 billion of commitments raised across our perpetual core strategies, private credit funds and other co-investments and separately managed accounts. We launched our European core-plus real estate fund during the quarter raising over €1 billion and exceeding its initial target, and our second vintage private infrastructure debt fund has raised over $1.8 billion to date, compared with its predecessor fund of approximately $875 million. Most of our credit funds and perpetual fund strategies earn fees on invested capital, as such the capital raised in the period will become fee-earning as it is invested.

Fee-bearing capital increased $12 billion during the quarter to $290 billion as at September 30, 2020. Growth in fee-bearing capital includes $10 billion of growth across our listed affiliates, as well as $4 billion of capital invested across our credit and perpetual private funds. This growth was partially offset by distributions and the end of the investment period of our third flagship infrastructure fund. We currently also have approximately $30 billion of committed capital across our strategies that will earn $300 million of fees annually once deployed.

We generated $703 million of carried interest during the quarter, and our accumulated unrealized carried interest now stands at $4.0 billion.

We recorded $482 million of realized carried interest into income over the last twelve months, including $42 million during the quarter related to distributions received from the sale of shares in one of our private equity businesses. Real asset transactions slowed meaningfully over the last six months as a result of the economic shutdown, but we have seen the pipeline of deal activity for both private and public market transactions begin to pick up again, and we expect to realize an increasing amount of carried interest as we complete monetizations within our mature vintage flagship funds.

Annualized fee revenues and target carried interest now stand at a run-rate of $6.1 billion.

Growth in fee-bearing capital generated a commensurate increase in annualized fee revenues and target carried interest. Annualized fee revenues and annualized fee-related earnings are now $3.0 billion and $1.4 billion, respectively, and gross target carried interest stands at $3.1 billion, or $1.7 billion net of costs, at our share.

We generated a record $2.8 billion of cash available for distribution and/or reinvestment (CAFDR) over the last twelve months. As at September 30, 2020, we had $76 billion of capital available to deploy into new investments.

Excluding realized carried interest, CAFDR increased 27% over the last twelve month period. The increase is due to the growth in our asset management franchise, and continues to be very resilient due to the contracted and predictable nature of both our fee-related earnings and distributions from listed affiliates.

Deployable capital of $76 billion includes $16 billion of cash, financial assets and undrawn lines of credit in BAM and our affiliates and $60 billion of uncalled fund commitments available for new transactions. Liquidity remains very strong for high credit-worthy counterparties such as ourselves, and during the quarter we completed $1 billion of corporate financings across BAM and the listed affiliates. Subsequent to quarter-end, we also issued at a corporate level, $400 million of green subordinated notes with the proceeds to be deployed into eligible green projects.

We invested $14 billion during the current quarter, and $48 billion over the last twelve months.

During the quarter we invested $9 billion of private fund capital, along with $3 billion of co-investment capital, bringing our latest vintage of flagships to approximately 60% committed. We expect to be in the market with our next round of flagship funds shortly, starting with our next flagship real estate fund in early 2021. We funded BPY’s purchase of close to $1 billion of its units/shares through substantial and normal-course issuer bids, and repurchased approximately $100 million of BAM shares since quarter end. We will remain active with repurchases as long as the shares continue to trade at meaningful discounts to our view of their underlying value. We also continued to increase the public floats of Brookfield Infrastructure Corporation (BIPC) and Brookfield Renewable Corporation (BEPC) by selling approximately $500 million of shares in those two securities into the markets.

BAM Reinsurance

We intend to distribute, in the first half of 2021, a special dividend in the form of a newly created “paired” entity, Brookfield Asset Management Reinsurance Partners (“BAM Reinsurance”). We expect this special dividend to be approximately $500 million, or approximately 33 cents per share of BAM. BAM Reinsurance is the entity through which Brookfield will conduct its reinsurance and other related activities for the benefit of all shareholders of both entities.

BAM Reinsurance will be a paired share to Brookfield Asset Management Inc. and will aim to replicate the success of the structure used by us to create Brookfield Renewable Corporation and Brookfield Infrastructure Corporation. BAM Reinsurance will allow us to grow our reinsurance business in the most efficient fashion, and also provide flexibility to Brookfield’s shareholders in how they can own their interests in Brookfield. The attributes of these shares should be more attractive to some groups of shareholders.

As with our other paired entities, the Class A shares of BAM Reinsurance will be structured with the intention of being economically equivalent to the Class A shares of BAM. Each share of BAM Reinsurance will have the same dividend as a BAM share and shares of BAM Reinsurance will be exchangeable into shares of Brookfield at the shareholder’s option. Our infrastructure, renewable, and property partnerships successfully implemented this type of structure, pairing entities with shares having economic equivalency with their associated publicly traded units. In a similar manner, BAM Reinsurance will offer Brookfield shareholders an alternative security through which to hold their interests in the business and are expected to trade substantially at the same price as shares of Brookfield.

In order to launch BAM Reinsurance, Brookfield intends to pay a special dividend in the form of a fraction of a share of BAM Reinsurance for a given number of Class A shares of Brookfield. Details will be provided at the time of the declaration of the dividend, but from a corporate perspective, the transaction will be analogous to a stock split as it will not result in any underlying change to aggregate cash flows or net asset value, except for the adjustment for the number of shares outstanding and owned by all shareholders.

“BAM Reinsurance is intended to provide our shareholders with a choice of holding either shares of Brookfield or the new shares of BAM Reinsurance, depending on what is most attractive to them based on their own circumstances,” stated Nick Goodman, Chief Financial Officer of Brookfield. “The very positive market reception, including in the case of the most recent listing of Brookfield Renewable Corporation, has encouraged us to offer a similar structure for our own shareholders, enhancing shareholders’ ability to meet their own financial planning objectives, while also facilitating the growth of our overall organization.”

The special dividend will require the filing of a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission and a preliminary prospectus with the Canadian securities regulatory authorities. BAM Reinsurance also intends to apply to list its class A shares in the United States on the NYSE and in Canada on the TSX. Subject to the receipt of all regulatory approvals, Brookfield anticipates completing the special distribution in the first half of 2021.

CONSOLIDATED BALANCE SHEETS

Unaudited (US$ millions)		September 30								December 31
						2020								2019
Assets
Cash and cash equivalents					$	8,723							$	6,778
Other financial assets						15,997								12,468
Accounts receivable and other						22,015								21,971
Inventory						10,374								10,272
Equity accounted investments						40,911								40,698
Investment properties						96,495								96,686
Property, plant and equipment						89,895								89,264
Intangible assets						25,245								27,710
Goodwill						13,872								14,550
Deferred income tax assets						3,556								3,572
Total Assets					$	327,083							$	323,969
Liabilities and Equity
Corporate borrowings					$	8,587							$	7,083
Accounts payable and other						46,656								44,767
Non-recourse borrowings in entities that we manage						140,230								136,292
Subsidiary equity obligations						3,989								4,132
Deferred income tax liabilities						14,314								14,849
Equity
Preferred equity	$	4,145							$	4,145
Non-controlling interests in net assets		80,156								81,833
Common equity		29,006				113,307				30,868				116,846
Total Liabilities and Equity					$	327,083							$	323,969

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended								Nine Months Ended
	2020				2019				2020				2019
Revenues	$	16,249			$	17,875			$	45,664			$	50,007
Direct costs	(12,372		)		(13,910		)		(34,527		)		(38,880		)
Other income and gains	34				51				304				972
Equity accounted income (loss)	139				414				(704		)		1,761
Expenses
Interest	(1,757		)		(1,926		)		(5,324		)		(5,375		)
Corporate costs	(25		)		(23		)		(74		)		(72		)
Fair value changes	(31		)		394				(1,598		)		(835		)
Depreciation and amortization	(1,470		)		(1,299		)		(4,255		)		(3,567		)
Income tax	(225		)		180				(594		)		(295		)
Net income (loss)	$	542			$	1,756			$	(1,108	)		$	3,716
Net income (loss) attributable to:
Brookfield shareholders	$	172			$	947			$	(777	)		$	1,961
Non-controlling interests	370				809				(331		)		1,755
	$	542			$	1,756			$	(1,108	)		$	3,716
Net income (loss) per share1
Diluted	$	0.10			$	0.61			$	(0.53	)		$	1.24
Basic	0.10				0.62				(0.53		)		1.26

1. Adjusted to reflect the three-for-two stock split effective April 1, 2020.

SUMMARIZED FINANCIAL RESULTS

RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS

Unaudited For the periods ended September 30 (US$ millions)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Net income	$	542			$	1,756			$	530			$	6,744
Financial statement components not included in FFO
Equity accounted fair value changes and other non-FFO items	602				180				2,884				274
Fair value changes	31				(394		)		1,594				578
Depreciation and amortization	1,470				1,299				5,564				4,494
Deferred income taxes	21				(464		)		26				(1,671		)
Realized disposition gains in fair value changes or prior periods	161				190				915				972
Non-controlling interests	(1,788		)		(1,741		)		(7,225		)		(7,050		)
Funds from operations1,2	$	1,039			$	826			$	4,288			$	4,341

SEGMENT FUNDS FROM OPERATIONS

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Asset management	$	399			$	345			$	1,663			$	1,461
Real estate	90				271				746				1,514
Renewable power	64				44				762				381
Infrastructure	244				103				570				454
Private equity	249				154				740				867
Residential	37				42				104				90
Corporate	(44		)		(133		)		(297		)		(426		)
Funds from operations1,2	$	1,039			$	826			$	4,288			$	4,341
Per share3,4	$	0.65			$	0.54			$	2.70			$	2.86

1. Non-IFRS measure – see Basis of Presentation on page 9.
2. Excludes amounts attributable to non-controlling interests.
3. Adjusted to reflect the three-for-two stock split effective April 1, 2020.
4. Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.

EARNINGS PER SHARE

Unaudited For the periods ended September 30 (US$ millions, except per share amounts)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Net income	$	542			$	1,756			$	530			$	6,744
Non-controlling interests	(370		)		(809		)		(461		)		(2,899		)
Net income attributable to shareholders	172				947				69				3,845
Preferred share dividends	(34		)		(38		)		(144		)		(150		)
Dilutive effect of conversion of subsidiary preferred shares	9				(17		)		38				(53		)
Net income (loss) available to common shareholders	$	147			$	892			$	(37	)		$	3,642
Weighted average shares1	1,511.7				1,434.1				1,505.7				1,434.3
Dilutive effect of the conversion of options and escrowed shares using treasury stock method1,2	24.7				36.1				—				32.0
Shares and share equivalents1	1,536.4				1,470.2				1,505.7				1,466.3
Diluted earnings per share1,3	$	0.10			$	0.61			$	(0.02	)		$	2.48

1. Adjusted to reflect the three-for-two stock split effective April 1, 2020.
2. Includes management share option plan and escrowed stock plan.
3. Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.

CASH AVAILABLE FOR DISTRIBUTION AND/OR REINVESTMENT

Unaudited For the periods ended September 30 (US$ millions)	Three Months Ended								Last Twelve Months Ended
	2020				2019				2020				2019
Fee-related earnings1, excluding performance fees	$	323			$	306			$	1,250			$	1,034
Our share of Oaktree’s distributable earnings	41				—				196				—
Distributions from investments	459				333				1,706				1,539
Other wholly owned investments	46				1				(3		)		(14		)
Corporate interest expense	(98		)		(87		)		(370		)		(342		)
Corporate costs and taxes	(37		)		(9		)		(166		)		(139		)
Preferred share dividends	(34		)		(38		)		(144		)		(150		)
Add back: equity-based compensation	23				20				93				84
Cash available for distribution and/or reinvestment before carried interest	723				526				2,562				2,012
Realized carried interest, net, excluding Oaktree1,2	24				39				188				427
Cash available for distribution and/or reinvestment	$	747			$	565			$	2,750			$	2,439

1.     Excludes our share of Oaktree’s fee-related earnings and carried interest.
2.     Non-IFRS measure – see Basis of Presentation on page 9.

Additional Information

The Letter to Shareholders and the company’s Supplemental Information for the three months ended September 30, 2020, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website.

The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter ended September 30, 2020, which have been prepared using IFRS, as issued by the IASB. The amounts have not been audited by Brookfield’s external auditor.

Brookfield’s Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our dividends can be found on our website under Stock & Distributions/Distribution History.

Quarterly Earnings Call Details

Investors, analysts and other interested parties can access Brookfield Asset Management’s 2020 Third Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield’s website under the Reports & Filings section at www.brookfield.com.

To participate in the Conference Call today, please dial 1-866-688-9425 toll free in North America, or for overseas calls please dial 1-409-216-0815 (Conference ID: 2235277) at approximately 10:50 a.m. EST. The Conference Call will also be Webcast live at https://edge.media-server.com/mmc/go/bamQ3-2020. For those unable to participate in the Conference Call, the telephone replay will be archived and available until midnight November 19, 2020. To access this rebroadcast, please call 1-855-859-2056 or 1-404-537-3406 (Conference ID: 2235277). 

Brookfield Asset Management Inc. is a leading global alternative asset manager with approximately $575 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit. Brookfield owns and operates long-life assets and businesses, many of which form the backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to investors around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. Brookfield Asset Management is listed on the New York and Toronto stock exchanges under the symbol BAM and BAM.A respectively.

Please note that Brookfield’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please visit our website at www.brookfield.com or contact:

Communications & Media: Claire Holland Tel: (416) 369-8236 Email: [email protected]

Investor Relations:  Linda Northwood Tel: (416) 359-8647 Email: [email protected]

Basis of Presentation

This news release and accompanying financial statements are based on International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), unless otherwise noted.

We make reference to Funds from Operations (“FFO”). We define FFO as net income attributable to shareholders prior to fair value changes, depreciation and amortization, and deferred income taxes, and include realized disposition gains that are not recorded in net income as determined under IFRS. FFO also includes the company’s share of equity accounted investments’ FFO on a fully diluted basis. FFO consists of the following components:

• FFO from Operating Activities represents the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis. We present this measure as we believe it assists in describing our results and variances within FFO.
   
• Realized Carried Interest represents our contractual share of investment gains generated within a private fund after considering our clients minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance.
   
• Realized Disposition Gains are included in FFO because we consider the purchase and sale of assets to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period FFO.

We use FFO to assess our operating results and the value of Brookfield’s business and believe that many shareholders and analysts also find this measure of value to them.

We note that FFO, its components, and its per share equivalent are non-IFRS measures which do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers and entities.

We make reference to Invested Capital. Invested Capital is defined as the amount of common equity in our segments and underlying businesses within the segments.

We make reference to Cash available for distribution and/or reinvestment, which is referring to the sum of our Asset Management segment FFO and distributions received from our ownership of investments, net of Corporate Activities FFO, equity-based compensation and preferred share dividends. This provides insight into earnings received by the corporation that are available for distribution to common shareholders or to be reinvested into the business.

We provide additional information on key terms and non-IFRS measures in our filings available at www.brookfield.com.

Notice to Readers

Brookfield is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements which reflect management’s expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” In particular, the forward-looking statements contained in this News Release include statements referring to the future state of the economy and markets; the expected future deployment of capital, including to repurchase shares; dispositions and the associated realized carried interest; as well as statements regarding the results of future fundraising efforts. In addition, forward-looking statements contained in this News Release include statements regarding the formation, business, and performance of BAM Reinsurance, as well as the expected trading price of its shares.

Where this news release refers to “target carried interest” it is based on an assumption that existing funds meet their target gross returns. Target gross returns are typically ~20% for opportunistic funds; 10% to 15% for value add, credit and core funds. Fee terms vary by investment strategy and may change over time. 

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, including the ongoing and developing COVID-19 pandemic and the global economic shutdown, which may cause the actual results, performance or achievements of Brookfield to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business including as a result of COVID-19 and the related global economic shutdown; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including our real estate, renewable power, infrastructure, private equity, and residential development activities; and (xxiv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Investors and other readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, the corporation undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein (because of economic conditions, the availability of investment opportunities or otherwise), that targeted returns, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved.

Target returns set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield in relation to the investment strategies being pursued by the funds, any of which may prove to be incorrect. There can be no assurance that targeted returns will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield’s control, the actual performance of the funds and the business could differ materially from the target returns set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns. No assurance, representation or warranty is made by any person that the target returns will be achieved, and undue reliance should not be put on them. Prior performance is not indicative of future results and there can be no guarantee that the funds will achieve the target returns or be able to avoid losses.

Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield makes no representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties.