Market Newsdesk

April 28, 2021 4:08 pm

AXT, Inc. Announces First Quarter 2021 Financial Results

Revenue Passes $30 Million per Quarter Mark

FREMONT, Calif., April 28, 2021 (GLOBE NEWSWIRE) — AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor wafer substrates, today reported financial results for the first quarter, ended March 31, 2021.

Management Qualitative Comments

“Q1 was an important milestone quarter for AXT,” said Morris Young, chief executive officer. “We met and exceeded the $30 million dollar quarterly revenue threshold. Our performance surpassed our expectations with growth in nearly all of our strategic products. Likewise, we drove significant improvement in our gross margin and achieved strong growth in profitability. We continue to see a convergence of major technology trends across our portfolio, and these are beginning to have a meaningful impact on the demand for our products. With our new facilities ramping and our successful development of 8-inch gallium arsenide substrates, we believe we are in a strong position to enable some of the most exciting new and emerging applications for specialty materials today.”

First Quarter 2021 Results

Revenue for the first quarter of 2021 was $31.4 million, compared with $27.0 million in the fourth quarter of 2020 and $20.7 million for the first quarter of 2020. This is sequential growth of 16 percent over the fourth quarter of 2020 and more than 51 percent growth over Q1 of 2020.
Gross margin was 36.8 percent of revenue for the first quarter of 2021, up from 33.9 percent of revenue in the fourth quarter of 2020 and 26.6 percent for the first quarter of 2020.
Operating expenses were $8.0 million in the first quarter of 2021, compared with $7.2 million in the fourth quarter of 2020, and $6.2 million for the first quarter of 2020.
Operating profit for the first quarter of 2021 was $3.6 million, compared with an operating profit of $1.9 million in the fourth quarter of 2020, and an operating loss of $0.6 million for the first quarter of 2020.
Other income, net for the first quarter of 2021 was $1.0 million, compared with $0.6 million in the fourth quarter of 2020 and $1.2 million for the first quarter of 2020.
Net income in the first quarter of 2021 was $3.4 million, or $0.08 per share, compared with net income of $2.1 million or $0.05 per share in the fourth quarter of 2020, and a net loss of $0.2 million or $0.01 per share for the first quarter of 2020.

STAR Market Listing Update

AXT previously announced on November 16, 2020 a strategic plan to access China’s capital markets and progress to an initial public offering by Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), its wafer manufacturing company in China, on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd (the “STAR Market”). The first major step in this process is engaging reputable private equity firms in China to invest funds in Tongmei.

In January 2021, AXT completed the private equity investment funding in Tongmei. A number of private equity firms have invested approximately $49 million in exchange for an approximately 7.28 percent minority interest in Tongmei.

The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Tongmei expects to accomplish this goal in mid-2022. AXT has posted a brief summary of the plan and the process on its website at www.axt.com.

Conference Call

The company will host a conference call to discuss these results today at 1:30 p.m. PT. The conference call can be accessed at (844) 892-6598 (passcode 2989288). The call will also be simulcast at www.axt.com. Replays will be available at (855) 859-2056 (passcode 2989288) until May 4, 2021. Financial and statistical information to be discussed in the call will be available on the company’s website immediately prior to commencement of the call. Additional investor information can be accessed at http://www.axt.com or by calling the company’s Investor Relations Department at (510) 438-4700.

About AXT, Inc.

AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in Fremont, California where the company maintains sales, administration and customer service functions. AXT has its Asia headquarters in Beijing, China and manufacturing facilities in three separate locations in China. In addition, as part of its supply chain strategy, the Company has partial ownership in ten companies in China producing raw materials for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.

Forward-Looking Statements

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding completing other preliminary steps in connection with the proposed listing of shares of Tongmei on the STAR Market, being accepted to list shares of Tongmei on the STAR Market and the timing and completion of such listing of shares of Tongmei on the STAR Market. Additional examples of forward-looking statements include statements regarding the market demand for our products, our growth prospects and opportunities for continued business expansion, including technology trends and new applications, our market opportunity, our ability to lead our industry, our relocation and our expectations with respect to our business prospects and financial results. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include but are not limited to: the withdrawal, cancellations or requests for redemptions by private equity funds in China of investments in Tongmei, the administrative challenges in satisfying the requirements of various government agencies in China in connection with the investments in Tongmei and the listing of shares of Tongmei on the STAR Market, continued open access to companies to list shares on the STAR Market, investor enthusiasm for new listings of shares on the STAR Market and geopolitical tensions between China and the United States. Additional uncertainties and factors include, but are not limited to: the timing and receipt of significant orders; the cancellation of orders and return of product; emerging applications using chips or devices fabricated on our substrates; end-user acceptance of products containing chips or devices fabricated on our substrates; our ability to bring new products to market; product announcements by our competitors; the ability to control costs and improve efficiency; the ability to utilize our manufacturing capacity; product yields and their impact on gross margins; the relocation of manufacturing lines and ramping of production; possible factory shutdowns as a result of air pollution in China; COVID-19 or other outbreaks of a contagious disease; tariffs and other trade war issues; the financial performance of our partially owned supply chain companies; policies and regulations in China; and other factors as set forth in the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.

Contacts:
	Gary Fischer
	Chief Financial Officer
	(510) 438-4700

	Leslie Green
	Green Communications Consulting, LLC
	(650) 312-9060

AXT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)


	Three Months Ended
	March 31,
	2021			2020

Revenue	$	31,350		$	20,723
Cost of revenue		19,814			15,201
Gross profit		11,536			5,522
Operating expenses:
Selling, general and administrative		5,570			4,749
Research and development		2,405			1,407
Total operating expenses		7,975			6,156
Income (loss) from operations		3,561			(634	)
Interest expense, net		(50	)		(29	)
Equity in income (loss) of unconsolidated joint ventures		1,111			(120	)
Other income (expense), net		(111	)		1,366
Income before provision for income taxes		4,511			583
Provision for income taxes		746			366
Net income		3,765			217
Less: Net income attributable to noncontrolling interests		(340	)		(395	)
Net income (loss) attributable to AXT, Inc.	$	3,425		$	(178	)
Net income (loss) attributable to AXT, Inc. per common share:
Basic	$	0.08		$	(0.01	)
Diluted	$	0.08		$	(0.01	)
Weighted-average number of common shares outstanding:
Basic		41,004			39,812
Diluted		42,726			39,812

AXT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)


	March 31,			December 31,
	2021			2020

ASSETS
Current assets:
Cash and cash equivalents	$	61,206		$	72,602
Short-term investments		240			240
Accounts receivable, net		28,423			24,558
Inventories		54,681			51,515
Prepaid expenses and other current assets		18,400			15,603
Total current assets		162,950			164,518
Long-term investments		5,463			5,726
Property, plant and equipment, net		119,878			115,825
Operating lease right-of-use assets		2,576			2,683
Other assets		11,039			10,110
Total assets	$	301,906		$	298,862
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,399		$	12,669
Accrued liabilities		15,698			15,995
Bank loan		10,376			10,411
Total current liabilities		39,473			39,075
Noncurrent operating lease liabilities		2,249			2,374
Other long-term liabilities		1,510			1,881
Total liabilities		43,232			43,330

Redeemable noncontrolling interests		48,212			47,563

Stockholders’ equity:
Preferred stock		3,532			3,532
Common stock		42			42
Additional paid-in capital		229,617			230,381
Accumulated deficit		(41,120	)		(44,545	)
Accumulated other comprehensive income		3,078			3,209
Total AXT, Inc. stockholders’ equity		195,149			192,619
Noncontrolling interests		15,313			15,350
Total stockholders’ equity		210,462			207,969
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	301,906		$	298,862

April 28, 2021 4:08 pm

Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2021

Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2021

BEDFORD, Mass.–(BUSINESS WIRE)–
Aspen Technology, Inc. (NASDAQ: AZPN), a global leader in asset optimization software, today announced financial results for its third quarter of fiscal year 2021 ended March 31, 2021.

“AspenTech’s third quarter performance was highlighted by strong free cash flow generation and demand activity in each of our core end-markets that was at or above pre-pandemic levels,” said Antonio Pietri, President and Chief Executive Officer of Aspen Technology. “At the same time, the continued uncertainty in the global macro environment due to COVID, coupled with the significant and costly disruptions in the energy and chemicals markets related to the winter storm in the US during the quarter, made it more challenging to close transactions than we expected.”

Pietri continued, “Our high levels of engagement with customers regarding AspenTech’s critical role in their long-term digitalization and sustainability initiatives give us confidence that we will drive faster growth as market conditions normalize.”

Third Quarter Fiscal Year 2021 Recent Business Highlights

Annual spend, which the company defines as the annualized value of all term license and maintenance contracts at the end of the quarter, was $609.9 million at the end of the third quarter of fiscal 2021, which increased 6.0% compared to the third quarter of fiscal 2020 and 1.0% sequentially.

Summary of Third Quarter Fiscal Year 2021 Financial Results

AspenTech’s total revenue of $162.7 million included:

License revenue, which represents the portion of a term license agreement allocated to the initial license, was $110.1 million in the third quarter of fiscal 2021, compared to $78.2 million in the third quarter of fiscal 2020.

Maintenance revenue, which represents the portion of the term license agreement related to on-going support and the right to future product enhancements, was $45.9 million in the third quarter of fiscal 2021, compared to $44.2 million in the third quarter of fiscal 2020.

Services and other revenue was $6.7 million in the third quarter of fiscal 2021, compared to $8.2 million in the third quarter of fiscal 2020.

For the quarter ended March 31, 2021, AspenTech reported income from operations of $68.9 million, compared to income from operations of $44.7 million for the quarter ended March 31, 2020.

Net income was $62.5 million for the quarter ended March 31, 2021, leading to net income per share of $0.91, compared to net income per share of $0.61 in the same period last fiscal year.

Non-GAAP income from operations, was $80.9 million for the third quarter of fiscal 2021, compared to non-GAAP income from operations of $53.9 million in the same period last fiscal year. Non-GAAP net income was $72.0 million, or $1.05 per share, for the third quarter of fiscal 2021, compared to non-GAAP net income of $49.1 million, or $0.72 per share, in the same period last fiscal year. These non-GAAP results add back the impact of stock-based compensation expense, amortization of intangibles and acquisition-related fees. A reconciliation of GAAP to non-GAAP results is presented in the financial tables included in this press release.

AspenTech had cash and cash equivalents of $317.1 million and total borrowings, net of debt issuance costs, of $297.0 million at March 31, 2021.

During the third quarter, the company generated $98.7 million in cash flow from operations and $100.0 million in free cash flow. Free cash flow is calculated as net cash provided by operating activities adjusted for the net impact of: purchases of property, equipment and leasehold improvements; payments for capitalized computer software development costs, and other nonrecurring items, such as acquisition-related payments.

Business Outlook

Based on information as of today, April 28, 2021, Aspen Technology is issuing the following guidance for fiscal year 2021:

Annual spend growth of 4-5.5% year-over-year
Free cash flow of $265 to $275 million
Total bookings of $771 to $809 million
Total revenue of $705 to $729 million
GAAP total expense of $355 to $360 million
Non-GAAP total expense of $310 to $315 million
GAAP operating income of $350 to $369 million
Non-GAAP operating income of $395 to $415 million
GAAP net income of $306 to $321 million
Non-GAAP net income of $341 to $357 million
GAAP net income per share of $4.46 to $4.70
Non-GAAP net income per share of $4.98 to $5.22

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

AspenTech has not reconciled its expectations as to forward-looking non-GAAP total expense, non-GAAP operating income, non-GAAP net income and non-GAAP net income per share to their most directly comparable GAAP measure because certain items are out of AspenTech’s control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP total expense, non-GAAP operating income, non-GAAP net income and non-GAAP net income per share is not available without unreasonable effort.

Use of Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures” under the rules of the U.S. Securities and Exchange Commission. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release.

Management considers both GAAP and non-GAAP financial results in managing Aspen Technology’s business. As the result of adoption of new licensing models, management believes that a number of Aspen Technology’s performance indicators based on GAAP, including revenue, gross profit, operating income and net income, should be viewed in conjunction with certain non-GAAP and other business measures in assessing Aspen Technology’s performance, growth and financial condition. Accordingly, management utilizes a number of non-GAAP and other business metrics, including the non-GAAP metrics set forth in this press release, to track Aspen Technology’s business performance. None of these non-GAAP metrics should be considered as an alternative to any measure of financial performance calculated in accordance with GAAP.

Conference Call and Webcast

Aspen Technology will host a conference call and webcast today, April 28, 2021, at 4:30 p.m. (Eastern Time), to discuss the company’s financial results for the second-quarter of fiscal year 2021 as well as the company’s business outlook. The live dial-in number is (866) 471-3828 or (678) 509-7573, conference ID code 6459234. Interested parties may also listen to a live webcast of the call by logging on to the Investor Relations section of Aspen Technology’s website, http://ir.aspentech.com/events-and-presentations, and clicking on the “webcast” link. A replay of the call will be archived on Aspen Technology’s website and will also be available via telephone at (855) 859-2056 or (404) 537-3406, conference ID code 6459234, through May 5, 2021.

About Aspen Technology

Aspen Technology (AspenTech) is a global leader in asset optimization software. Its solutions address complex, industrial environments where it is critical to optimize the asset design, operation and maintenance lifecycle. AspenTech uniquely combines decades of process modelling expertise with artificial intelligence. Its purpose-built software platform automates knowledge work and builds sustainable competitive advantage by delivering high returns over the entire asset lifecycle. As a result, companies in capital-intensive industries can maximize uptime and push the limits of performance, running their assets safer, greener, longer and faster. Visit AspenTech.com to find out more.

Forward-Looking Statements

The third paragraph of this press release as well as the Business Outlook section contain forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may vary significantly from AspenTech’s expectations based on a number of risks and uncertainties, including, without limitation: delays or reductions in demand for AspenTech solutions due to the COVID-19 pandemic; AspenTech’s failure to increase usage and product adoption of aspenONE offerings or grow the aspenONE APM business, and failure to continue to provide innovative, market-leading solutions; declines in the demand for, or usage of, aspenONE software for any reason, including declines due to adverse changes in the process or other capital-intensive industries and due to the drop in demand for oil due to the COVID-19 pandemic, compounded by the excess supply arising from producers’ failure to agree on production cuts; unfavorable economic and market conditions or a lessening demand in the market for asset process optimization software, including due to the significant drop in oil prices arising from drop in demand due to the COVID-19 pandemic and producers’ failure to agree on production cuts; risks of foreign operations or transacting business with customers outside the United States; risks of competition and other risk factors described from time to time in AspenTech’s periodic reports filed with the Securities and Exchange Commission. AspenTech cannot guarantee any future results, levels of activity, performance, or achievements. AspenTech expressly disclaims any obligation to update forward-looking statements after the date of this press release.

© 2021 Aspen Technology, Inc. AspenTech, aspenONE, asset optimization and the Aspen leaf logo are trademarks of Aspen Technology, Inc. All rights reserved. All other trademarks are property of their respective owners.

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited in Thousands, Except per Share Data)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
	(Dollars in Thousands, Except per Share Data)
Revenue:
License	$	110,104	$	78,156	$	352,133	$	238,311
Maintenance	45,885		44,199		139,561		132,418
Services and other	6,737		8,233		19,721		26,048
Total revenue	162,726		130,588		511,415		396,777
Cost of revenue:
License	2,485		1,881		6,859		5,550
Maintenance	5,174		4,778		14,066		14,339
Services and other	8,396		9,046		24,911		26,560
Total cost of revenue	16,055		15,705		45,836		46,449
Gross profit	146,671		114,883		465,579		350,328
Operating expenses:
Selling and marketing	30,345		28,354		82,092		86,046
Research and development	25,874		23,576		70,576		68,694
General and administrative	21,553		18,219		60,389		54,525
Total operating expenses	77,772		70,149		213,057		209,265
Income from operations	68,899		44,734		252,522		141,063
Interest income	8,410		8,173		26,383		24,577
Interest (expense)	(1,495)		(3,207)		(5,639)		(9,368)
Other (expense), net	(5)		(352)		(1,807)		(217)
Income before income taxes	75,809		49,348		271,459		156,055
Provision for income taxes	13,314		7,522		47,101		20,914
Net income	$	62,495	$	41,826	$	224,358	$	135,141
Net income per common share:
Basic	$	0.92	$	0.62	$	3.31	$	1.98
Diluted	$	0.91	$	0.61	$	3.28	$	1.96
Weighted average shares outstanding:
Basic	67,920		67,806		67,809		68,122
Diluted	68,608		68,482		68,439		68,906

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited in Thousands, Except Share and Per Share Data)

	March 31, 2021		June 30, 2020
	(Dollars in Thousands, Except Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	317,099	$	287,796
Accounts receivable, net	49,034		56,301
Current contract assets, net	298,835		291,497
Prepaid expenses and other current assets	9,762		10,884
Prepaid income taxes	12,008		3,962
Total current assets	686,738		650,440
Property, equipment and leasehold improvements, net	5,506		5,963
Computer software development costs, net	1,255		928
Goodwill	158,182		137,055
Intangible assets, net	45,996		42,851
Non-current contract assets, net	409,010		318,976
Contract costs	28,419		28,614
Operating lease right-of-use assets	31,589		34,905
Deferred tax assets	2,924		1,735
Other non-current assets	3,042		1,839
Total assets	$	1,372,661	$	1,223,306

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,563	$	3,988
Accrued expenses and other current liabilities	43,063		43,556
Current operating lease liabilities	7,214		6,824
Income taxes payable	76		1,799
Current borrowings	18,000		135,163
Current deferred revenue	54,730		43,168
Total current liabilities	126,646		234,498
Non-current deferred revenue	11,535		13,913
Deferred tax liabilities	188,896		179,978
Non-current operating lease liabilities	28,894		33,088
Non-current borrowings, net	278,960		292,369
Other non-current liabilities	4,842		3,107
Commitments and contingencies (Note 17)
Series D redeemable convertible preferred stock, $0.10 par value— Authorized— 367,000 shares as of March 31, 2021 and June 30, 2020 Issued and outstanding— none as of March 31, 2021 and June 30, 2020	—		—
Stockholders’ equity:
Common stock, $0.10 par value— Authorized—210,000,000 shares Issued— 104,283,957 shares at March 31, 2021 and 103,988,707 shares at June 30, 2020 Outstanding— 68,013,942 shares at March 31, 2021 and 67,718,692 shares at June 30, 2020	10,429		10,399
Additional paid-in capital	799,743		769,411
Retained earnings	1,682,688		1,458,330
Accumulated other comprehensive income (loss)	6,527		(5,288)
Treasury stock, at cost—36,270,015 shares of common stock at March 31, 2021 and 36,270,015 shares at June 30, 2020	(1,766,499)		(1,766,499)
Total stockholders’ equity	732,888		466,353
Total liabilities and stockholders’ equity	$	1,372,661	$	1,223,306

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited in Thousands)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
	(Dollars in Thousands)
Cash flows from operating activities:
Net income	$	62,495	$	41,826	$	224,358	$	135,141
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,688		2,549		7,545		7,028
Reduction in the carrying amount of right-of-use assets	2,258		3,267		7,037		6,518
Net foreign currency losses (gains)	(27)		345		2,027		183
Stock-based compensation	9,225		7,299		24,589		24,133
Deferred income taxes	6,817		(116)		7,029		(1,516)
Provision for bad debts	2,064		2,127		6,800		3,391
Other non-cash operating activities	311		208		718		423
Changes in assets and liabilities:
Accounts receivable	(4,257)		(11,889)		4,115		(16,428)
Contract assets, net	19,835		32,216		(103,538)		2,329
Contract costs	(123)		(692)		198		(1,522)
Lease liabilities	(2,298)		(3,444)		(7,533)		(6,840)
Prepaid expenses, prepaid income taxes, and other assets	(7,001)		(433)		(6,959)		(2,201)
Accounts payable, accrued expenses, income taxes payable and other liabilities	216		2,353		(6,847)		(20,752)
Deferred revenue	6,456		5,765		13,410		13,701
Net cash provided by operating activities	98,659		81,381		172,949		143,588
Cash flows from investing activities:
Purchases of property, equipment and leasehold improvements	(211)		(143)		(733)		(1,111)
Payments for business acquisitions, net of cash acquired	(329)		(241)		(16,272)		(74,460)
Payments for equity method investments	(760)		(319)		(926)		(319)
Payments for capitalized computer software development costs	—		(71)		(895)		(141)
Net cash used in investing activities	(1,300)		(774)		(18,826)		(76,031)
Cash flows from financing activities:
Issuance of shares of common stock	9,394		2,650		12,508		5,364
Repurchases of common stock	—		(49,757)		—		(150,621)
Payments of tax withholding obligations related to restricted stock	(2,612)		(2,395)		(6,719)		(8,246)
Deferred business acquisition payments	—		(4,600)		—		(4,600)
Proceeds from revolving credit facility, net of repayments	—		90,000		(119,182)		219,163
Repayments of amounts borrowed under term loan	(4,000)		(4,000)		(12,000)		(4,000)
Payments of debt issuance costs	—		(79)		—		(3,533)
Net cash provided by (used in) financing activities	2,782		31,819		(125,393)		53,527
Effect of exchange rate changes on cash and cash equivalents	(531)		(740)		573		(838)
Increase in cash and cash equivalents	99,610		111,686		29,303		120,246
Cash and cash equivalents, beginning of period	217,489		80,486		287,796		71,926
Cash and cash equivalents, end of period	$	317,099	$	192,172	$	317,099	$	192,172
Supplemental disclosure of cash flow information:
Income taxes paid, net	$	18,681	$	6,611	$	49,349	$	26,359
Interest paid	1,455		3,054		5,672		8,246
Supplemental disclosure of non-cash activities:
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses	$	20	$	7	$	77	$	(89)
Change in repurchases of common stock included in accounts payable and accrued expenses	—		243		—		(621)
Lease liabilities arising from obtaining right-of-use assets	197		6,802		1,488		11,626

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Results of Operations and Cash Flows (Unaudited in Thousands, Except per Share Data)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Total expenses
GAAP total expenses (a)	$	93,827	$	85,854	$	258,893	$	255,714
Less:
Stock-based compensation (b)	(9,225)		(7,299)		(24,589)		(24,133)
Amortization of intangibles	(2,047)		(1,864)		(5,657)		(4,741)
Acquisition related fees	(749)		—		(3,133)		(78)

Non-GAAP total expenses	$	81,806	$	76,691	$	225,514	$	226,762

Income from operations
GAAP income from operations	$	68,899	$	44,734	$	252,522	$	141,063
Plus:
Stock-based compensation (b)	9,225		7,299		24,589		24,133
Amortization of intangibles	2,047		1,864		5,657		4,741
Acquisition related fees	749		—		3,133		78

Non-GAAP income from operations	$	80,920	$	53,897	$	285,901	$	170,015

Net income
GAAP net income	$	62,495	$	41,826	$	224,358	$	135,141
Plus:
Stock-based compensation (b)	9,225		7,299		24,589		24,133
Amortization of intangibles	2,047		1,864		5,657		4,741
Acquisition related fees	749		—		3,133		78
Less:
Income tax effect on Non-GAAP items (c)	(2,524)		(1,924)		(7,010)		(6,080)

Non-GAAP net income	$	71,992	$	49,065	$	250,727	$	158,013

Diluted income per share
GAAP diluted income per share	$	0.91	$	0.61	$	3.28	$	1.96
Plus:
Stock-based compensation (b)	0.14		0.11		0.35		0.35
Amortization of intangibles	0.03		0.03		0.08		0.07
Acquisition related fees	0.01		—		0.05		—
Less:
Income tax effect on Non-GAAP items (c)	(0.04)		(0.03)		(0.10)		(0.09)

Non-GAAP diluted income per share	$	1.05	$	0.72	$	3.66	$	2.29

Shares used in computing Non-GAAP diluted income per share	68,608		68,482		68,439		68,906


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Free Cash Flow
Net cash provided by operating activities (GAAP)	$	98,659	$	81,381	$	172,949	$	143,588
Purchases of property, equipment and leasehold improvements	(211)		(143)		(733)		(1,111)
Payments for capitalized computer software development costs	—		(71)		(895)		(141)
Acquisition related payments	1,526		—		2,433		1,264
Free cash flow (non-GAAP)	$	99,974	$	81,167	$	173,754	$	143,600

(a) GAAP total expenses
	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Total costs of revenue	$	16,055	$	15,705	$	45,836	$	46,449
Total operating expenses	77,772		70,149		213,057		209,265
GAAP total expenses	$	93,827	$	85,854	$	258,893	$	255,714

(b) Stock-based compensation expense was as follows:
	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Cost of maintenance	$	234	$	343	$	688	$	1,104
Cost of services and other	412		450		1,198		1,477
Selling and marketing	1,869		1,472		4,655		4,228
Research and development	2,273		2,082		6,515		6,193
General and administrative	4,437		2,952		11,533		11,131
Total stock-based compensation	$	9,225	$	7,299	$	24,589	$	24,133

(c) The income tax effect on non-GAAP items for the three and nine months ended March 31, 2021 and 2020, respectively, is calculated utilizing the Company’s statutory tax rate of 21 percent.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428006081/en/

Media Contact

Lucy Millington

Aspen Technology

+1 781-221-6419

[email protected]

Investor Contact

Brian Denyeau

ICR for Aspen Technology

+1 646-277-1251

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Communications Technology Search Engine Optimization Other Technology Software Public Relations/Investor Relations

MEDIA:

April 28, 2021 4:08 pm

Independence Realty Trust Announces First Quarter 2021 Financial Results

Independence Realty Trust Announces First Quarter 2021 Financial Results

PHILADELPHIA–(BUSINESS WIRE)–
Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its first quarter 2021 financial results.

First Quarter Highlights

Net income available to common shares of $1.1 million for the quarter ended March 31, 2021 compared to a net loss of $0.4 million for the quarter ended March 31, 2020.

Earnings per diluted share of $0.01 for the quarter ended March 31, 2021 compared to $0.00 for the quarter ended March 31, 2020.

Same store net operating income (“NOI”) growth of 5.3% for the quarter ended March 31, 2021 compared to the quarter ended March 31, 2020.

Core Funds from Operations (“CFFO”) of $18.0 million for the quarter ended March 31, 2021 compared to $14.6 million for the quarter ended March 31, 2020. CFFO per share was $0.18 for the first quarter of 2021, as compared to $0.16 for the first quarter of 2020. To note, this reflects the adoption of our new definition of CFFO, where we no longer exclude stock compensation expense or amortization of deferred financing costs from our computation.

Adjusted EBITDA of $26.4 million for the quarter ended March 31, 2021 compared to $24.1 million for the quarter ended March 31, 2020.

Collected 98.4% of rents billed during the quarter ended March 31, 2021 and 99.2% of rents billed during the quarter ended December 31, 2020.

Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP.

Management Commentary

“We are pleased to report a strong start to the year as vaccine distribution is supporting accelerated re-openings across all of our markets. For the first quarter of 2021, same store NOI increased by 5.3%, led by our continual focus on driving occupancy and rental rates. Our same store occupancy increased 40 basis points since the fourth quarter of 2020, and a sizeable 260 basis points on a year-over-year basis. Rental rates continued to move higher, growing 5.9% over the expiring leases during the first quarter and 4.6% during the second quarter to date. We are excited with the start of this year and remain confident in our growth strategy. As a result, we are raising our 2021 guidance given an improving outlook and the growth potential of our attractive market presence,” said Scott Schaeffer, Chairman and CEO of IRT.

Same Store Property Operating Results

	First Quarter 2021 Compared to First Quarter 2020⁽¹⁾
Rental and other property revenue	5.6% increase
Property operating expenses	6.2% increase
Net operating income (“NOI”)	5.3% increase
Portfolio average occupancy	260 bps increase to 95.3%
Portfolio average rental rate	2.9% increase to $1,129
NOI Margin	20 bps decrease to 61.5%

(1)

Same store portfolio for the three and twelve months ended March 31, 2021 includes 54 properties, which represent 14,995 units.

Same Store Property Operating Results, Excluding Value Add

The same store portfolio results below exclude 18 communities that are both part of the same store portfolio and were actively undergoing Value Add renovations during the three months ended March 31, 2021.

	First Quarter 2021 Compared to First Quarter 2020⁽¹⁾
Rental and other property revenue	3.1% increase
Property operating expenses	4.2% increase
Net operating income (“NOI”)	2.5% increase
Portfolio average occupancy	170 bps increase to 95.8%
Portfolio average rental rate	1.7% increase to $1,099
NOI Margin	40 bps decrease to 61.5%

(1)

Same store portfolio, excluding value add, for the three and twelve months ended March 31, 2021 includes 36 properties, which represent 9,439 units.

COVID-19 Metrics⁽¹⁾⁽²⁾

Rent collections	1Q 2021	1Q 2020	4Q 2020
Rent collected for the period presented, as a percentage of rent billed	98.4%	99.1%	99.1%

Deferred payment plans:⁽³⁾
Number of deferred payment plans	2	–	13
Amount of monthly rent deferred for period presented	$4	–	$61
Amount of monthly rent deferred for the period presented, as a percentage of rent billed	0.0%	0.0%	0.1%

Combined rent collected and rent subject to deferred payment plans, as a percentage of rent billed	98.4%	99.1%	99.2%

(1)		Dollar amounts in thousands. All metrics presented are as of April 27, 2021 for our total portfolio in the period presented.
(2)		All metrics are based on our internal data, which management uses to monitor property performance on a daily or weekly basis.
(3)		Deferred payment plans allow residents to defer a portion of their monthly rent for one or more months or to repay over time past-due rent which was unpaid due to a COVID-related financial hardship. Residents must provide evidence of hardship and commit to a full 12-month lease term, which allows deferred payments to be repaid over a longer remaining lease term. As of March 31, 2021, there were 104 active deferred payment plans with an aggregate of $44,896 of deferred rent outstanding.

As a result of the COVID-19 pandemic, our bad debt continues to exceed historical levels. During the first quarter, our net bad debt was $433,000 or 80 basis points of revenue. The table below presents additional details on the components of bad debt:

Components of Bad Debt ⁽¹⁾	1Q 2021		1Q 2020		4Q 2020
Components of Bad Debt ⁽¹⁾	Amount	Percentage	Amount	Percentage	Amount	Percentage
Charge-offs, net	$386	0.7%	$337	0.7%	$289	0.5%
Provision for bad debt	$47	0.1%	–	–	$124	0.3%
Net bad debt	$433	0.8%	$337	0.7%	$413	0.8%

(1)

Dollar amounts are in thousands and percentages are as a percentage of total rental and other property income. Bad debt is recorded as a reduction to rental and other property revenue in our consolidated statements of operations.

Operating statistics	April 2021	April 2020	1Q 2021
Rent collected for the period presented, as a percentage of rent billed	96.6%	99.0%	98.4%
Amount of monthly rent deferred for the period presented, as a percentage of rent billed	0.0%	0.6%	0.0%
Combined rent collected and rent subject to deferred payment plans, as a percentage of rent billed	96.6%	99.6%	98.4%
Total portfolio average occupancy	96.0%	92.7%	95.3%
Total portfolio average effective monthly rent per unit	$1,154	$1,106	$1,142
Resident retention rate	49.7%	54.8%	46.4%

Lease-Over-Lease Effective Rent Growth ⁽¹⁾

The table below depicts lease-over-lease effective rent growth for all new and renewal leases entered into during the respective periods for the 54-property same store portfolio.

Lease Type	1Q 2021	2Q 2021 ⁽²⁾
New Leases	6.8%	9.6%
Renewal Leases	4.8%	3.7%
Total	5.9%	4.6%

(1)		Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months.
(2)		For new leases and renewals commencing during 2Q 2021 that were signed as of April 27, 2021.

Value Add Program

We completed renovations on 142 units during the quarter ended March 31, 2021. From inception of our value add program in January 2018 through March 31, 2021, we completed renovations on 3,861 units, achieving a return on investment of 16.1% (18.5% on interior renovation costs) and an average monthly rental increase of 18.5%.

At-the-Market Offering

On November 13, 2020 we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock having an aggregate offering price of up to $150 million (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. In the three months ended March 31, 2021, we entered into a forward sale transaction under the ATM Program for the forward sale of 2,000,000 shares of our common stock. We expect to physically settle the forward sale transaction by the maturity date (December 15, 2021) of the forward sale transaction. Assuming the forward sale transaction is physically settled in full utilizing the current forward sale price of $14.50 per share, net of sales commissions, we expect to receive net proceeds of approximately $29.0 million, subject to adjustment in accordance with the forward sale transaction.

Financial Flexibility

As of March 31, 2021, we had a total liquidity position of approximately $205.6 million, which includes unrestricted cash, additional capacity under our unsecured line of credit, and approximately $41.2 million of proceeds that we will receive upon settlement of forward sale agreements covering 2,900,000 shares of common stock.

Capital Expenditures

For the three months ended March 31, 2021, recurring capital expenditures for the total portfolio were $1.1 million, or $73 per unit.

Distributions

On March 15, 2021, our Board of Directors declared a quarterly cash dividend of $0.12 per share of our common stock, which was paid on April 23, 2021 to stockholders of record at the close of business on April 2, 2021.

2021 EPS and CFFO Guidance

Given portfolio performance during the quarter ended March 31, 2021, IRT is updating its 2021 full year guidance. EPS per diluted share is projected to be in a range of $0.5 to $0.8. CFFO per diluted share, a non-GAAP financial measure, is projected to be in the range of $0.72 to $0.75 using our new definition of CFFO. Our previous guidance has been adjusted to conform to the current CFFO definition, which now includes the effect of stock compensation expense and amortization of deferred financing costs. A reconciliation of IRT’s projected net income allocable to common shares to its projected CFFO per share is included below. Also included below are the primary assumptions underlying these estimates. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s rationale for the usefulness of CFFO.

	Previous Guidance		Current Guidance
2021 Full Year EPS and CFFO Guidance ⁽¹⁾⁽²⁾	Low	High	Low	High
Earnings per share	$0.04	$0.08	$0.05	$0.08
Adjustments:
Depreciation and amortization	0.67	0.67	0.67	0.67
CORE FFO per share allocated to common shareholders	$0.71	$0.75	$0.72	$0.75

(1)		This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2021 EPS and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below.
(2)		Per share guidance is based on 102.6 million weighted average shares and units outstanding.

2021 Guidance Assumptions

Our key guidance assumptions for 2021 are enumerated below:

Same Store Communities

Previous 2021 Outlook

Current 2021 Outlook

Number of properties/units

54 properties / 14,955 units

54 properties / 14,955 units

Property revenue growth

2.75% to 4.25%

3.75% to 5.0%

Controllable property operating expense growth

2.0% to 3.0%

3.0% to 4.0%

Real estate tax and insurance expense increase

7.0% to 9.0%

7.0% to 8.0%

Total operating expense growth

4.0% to 5.25%

4.25% to 5.5%

Same store property NOI growth

1.5% to 3.5%

3.25% to 5.0%

Corporate Expenses

General and administrative expenses

$15.5 to $17.0 million⁽¹⁾

$16.5 to $18.0 million

Property management expenses

$8.5 to $9.2 million⁽¹⁾

$8.25 to $8.75 million

Interest expense

$34.0 to $35.5 million⁽¹⁾

$34.0 to $35.5 million

Transaction/Investment Volume

Acquisition volume

None assumed

$100 million to $200 million

Disposition volume

None assumed

$0 million to $100 million

Capital Expenditures

Recurring

$7.0 to $8.0 million

$7.0 to $7.5 million

Value add & non-recurring

$28.5 to $32.5 million

$28.5 to $32.5 million

(1)

During the three months ended March 31, 2021, we updated our definition of CFFO to include the effects of stock compensation expense and the amortization of deferred financing costs. As a result, we have updated our previous 2021 outlook to conform to the new definition. We previously highlighted the impact that this definition change would have on these line items. Please refer to footnotes 2 and 3 on page 10 of our Q4 and Full Year 2020 Supplemental dated February 10, 2021. In addition, please see the updated definition of CFFO within the definitions section of this release.

Selected Financial Information

See the schedules at the end of this earnings release for selected financial information for IRT.

Non-GAAP Financial Measures and Definitions

We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, April 29, 2021 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.833.789.1330. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website and telephonically until Thursday, May 6, 2021 by dialing 1.800.585.8367, access code 1235436.

Supplemental Information

We produce supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same store information and other useful information for investors. The supplemental information is available via our website, www.irtliving.com, through the “Investor Relations” section.

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Dallas, Louisville, Memphis, Raleigh and Tampa. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on IRT’s website at www.irtliving.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. These forward-looking statements include, without limitation, our expectations with respect to capital allocations, including as to the timing and amount of future dividends. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks related to the impact of COVID-19 and other potential future outbreaks of infectious diseases on our financial condition, results of operations, cash flows and performance and those of our residents as well as on the economy and real estate and financial markets; changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; legislative restrictions that may delay or limit collections of past due rents; risks endemic to real estate and the real estate industry generally; the effects of natural and other disasters; delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Form 10-K for the year ended December 31, 2020, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount of the quarterly dividend described in this press release.

Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

(Dollars in thousands, except share and per share amounts)

(unaudited)

For the Three Months Ended

March 31,

2021

December 31,

2020

September 30,

2020

June 30,

2020

March 31,

2020

Selected Financial Information:

Operating Statistics:

Net income available to common shares

$

1,086

$

13,261

$

1,090

$

789

$

(372

)

Earnings (loss) per share — diluted

$

0.01

0.14

$

0.01

$

0.01

$0.00

Rental and other property revenue

$

54,811

$

53,923

$

54,001

$

52,087

$

51,156

Property operating expenses

$

20,838

$

20,138

$

22,129

$

20,974

$

19,737

Net operating income

$

33,973

$

33,785

$

31,872

$

31,113

$

31,419

NOI margin

62.0

%

62.7

%

59.0

%

59.7

%

61.4

%

Adjusted EBITDA

$

26,389

$

28,534

$

27,081

$

25,643

$

24,081

CORE FFO per share (c)

$

0.18

$

0.22

$

0.20

$

0.19

$

0.19

Dividends per share

$

0.12

$

0.12

$

0.12

$

0.12

$

0.18

CORE FFO payout ratio

66.7

%

54.5

%

60.0

%

63.2

%

94.7

%

Portfolio Data:

Total gross assets

$

1,970,979

$

1,962,895

$

1,914,900

$

1,916,424

$

1,949,494

Total number of properties

56

56

58

58

58

Total units

15,667

15,667

15,805

15,805

15,805

Period end occupancy

95.5

%

95.3

%

94.4

%

93.5

%

92.7

%

Total portfolio average occupancy

95.4

%

95.0

%

94.1

%

92.9

%

92.5

%

Total portfolio average effective monthly rent, per

unit

$

1,142

$

1,136

$

1,118

$

1,108

$

1,100

Same store period end occupancy (a)

95.5

%

95.3

%

94.3

%

93.6

%

93.0

%

Same store portfolio average occupancy (a)

95.3

%

94.9

%

94.0

%

93.1

%

92.7

%

Same store portfolio average effective monthly rent,

per unit (a)

$

1,129

$

1,121

$

1,111

$

1,107

$

1,097

Capitalization:

Total debt

$

947,631

$

945,686

$

1,004,237

$

1,008,911

$

1,049,541

Common share price, period end

$

15.20

$

13.43

$

11.59

$

11.45

$

8.94

Market equity capitalization

$

1,561,165

$

1,376,283

$

1,107,144

$

1,093,822

$

853,600

Total market capitalization

$

2,508,796

$

2,321,969

$

2,111,381

$

2,102,733

$

1,903,141

Total debt/total gross assets

48.1

%

48.2

%

52.4

%

52.6

%

53.8

%

Net debt to Adjusted EBITDA (pro forma) (b)

8.2

x

8.2

x

9.1

x

9.2

x

9.0

x

Interest coverage

3.1

x

3.2

x

3.0

x

2.8

x

2.5

x

Common shares and OP Units:

Shares outstanding

102,033,733

101,803,762

94,823,806

94,741,146

94,691,806

OP units outstanding

674,515

674,517

701,986

789,134

789,134

Common shares and OP units outstanding

102,708,248

102,478,278

95,525,792

95,530,279

95,480,939

Weighted average common shares and units

102,353,380

95,529,788

95,227,176

95,224,855

91,737,113

(a)

Same store portfolio consists of 54 properties, which represent 14,995 units.

(b)

Reflects pro forma net debt to Adjusted EBITDA for each period presented, which includes adjustments for the timing of acquisitions, the full quarter effect of current value add initiatives, the completion of capital recycling activities including paydown of associated indebtedness, and the normalization of items impacting quarterly EBITDA. Actual net debt to Adjusted EBITDA for the five quarters ended March 31, 2021 was 8.9x, 8.3x, 9.3x, 9.7x, and 10.3x, respectively.

(c)

Reflects adjustment to prior periods to conform to our current definition of CFFO. See our definition of CFFO for additional discussion.

Schedule II

Independence Realty Trust, Inc.

Reconciliation of Net Income (loss) to

Funds From Operations and

Core Funds From Operations

(Dollars in thousands, except share and per share amounts)

(unaudited)

For the Three Months Ended March 31,

2021

2020

Funds From Operations (FFO):

Net Income (loss)

$

1,093

$

(374

)

Adjustments:

Real estate depreciation and amortization

16,472

14,725

Funds From Operations

$

17,565

$

14,351

FFO per share

$

0.17

$

0.16

Core Funds From Operations (CFFO):

Funds From Operations

$

17,565

$

14,351

Adjustments:

Other depreciation and amortization

80

103

Abandoned deal costs

—

130

Casualty losses

359

—

Debt extinguishment costs included in net gains (losses) on sale of assets

—

—

Core Funds From Operations

$

18,004

$

14,584

CFFO per share

$

0.18

$

0.16

Weighted-average shares and units outstanding

102,353,380

91,737,113

Schedule III

Independence Realty Trust, Inc.

Reconciliation of Same-Store Net Operating Income to Net Income (loss)

(Dollars in thousands)

(unaudited)

For the Three-Months Ended (a)

March 31,

2021

December 31,

2020

September 30,

2020

June 30,

2020

March 31,

2020

Reconciliation of same-store net operating income to net income (loss)

Same-store net operating income

$

31,923

$

32,027

$

29,997

$

29,723

$

30,330

Non same-store net operating income

2,050

1,758

1,875

1,390

1,089

Other revenue

301

165

199

181

194

Property management expenses

(1,943

)

(2,183

)

(2,078

)

(2,077

)

(2,156

)

General and administrative expenses

(5,942

)

(3,233

)

(2,912

)

(3,574

)

(5,376

)

Depreciation and amortization expense

(16,552

)

(15,396

)

(15,232

)

(15,231

)

(14,828

)

Interest expense

(8,385

)

(8,872

)

(8,917

)

(9,202

)

(9,497

)

Abandoned deal costs

—

—

—

—

(130

)

Casualty losses

(359

)

(300

)

—

(411

)

—

Gain on sale (loss on impairment) of real estate assets, net

—

9,394

(1,840

)

—

—

Net income (loss)

$

1,093

$

13,360

$

1,092

$

799

$

(374

)

(a) Same store portfolio includes 54 properties, which represent 14,995 units.

Schedule IV

Independence Realty Trust, Inc.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

And Interest Coverage Ratio

(Dollars in thousands)

(unaudited)

Three Months Ended

ADJUSTED EBITDA:

March 31,

2021

December 31,

2020

September 30,

2020

June 30,

2020

March 31,

2020

Net income (loss)

$

1,093

$

13,360

$

1,092

$

799

$

(374

)

Add-Back (Deduct):

Depreciation and amortization

16,552

15,396

15,232

15,231

14,828

Interest expense

8,385

8,872

8,917

9,202

9,497

Net loss on impairment (gain on sale) of real estate assets

—

(9,394

)

1,840

—

—

Abandoned deal costs

—

—

—

—

130

Casualty losses

359

300

—

411

—

Adjusted EBITDA

$

26,389

$

28,534

$

27,081

$

25,643

$

24,081

INTEREST COST:

Interest expense

$

8,385

$

8,872

$

8,917

$

9,202

$

9,497

INTEREST COVERAGE:

3.1

x

3.2

x

3.0

x

2.8

x

2.5

x

Schedule V

Independence Realty Trust, Inc.

Definitions

Average Effective Monthly Rent per Unit

Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metric, when presented, reflects the average effective rent per month.

Average Occupancy

Average occupancy represents the average occupied units for the reporting period divided by the average of total units available for rent for the reporting period.

EBITDA and Adjusted EBITDA

Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before certain other non-cash or non-operating gains or losses related to items such as asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty losses, and abandoned deal costs. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

We believe that FFO and Core FFO (“CFFO”), each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, gains or losses on sales of real estate and the cumulative effect of changes in accounting principles. While our calculation of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to FFO computations of such other REITs.

We updated our definition of CFFO during Q1 2021 to the definition described below. All prior periods have been adjusted to conform to the current CFFO definition.

CFFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including depreciation and amortization of other items not included in FFO, and other non-cash or non-operating gains or losses related to items such as casualty losses, abandoned deal costs and debt extinguishment costs from the determination of FFO.

Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.

Net Debt

Net debt, a non-GAAP financial measure, equals total debt less cash and cash equivalents. The following table provides a reconciliation of total debt to net debt (Dollars in thousands).

We present net debt because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.

As of

March 31,

2021

December 30,

2020

September 30,

2020

June 30,

2020

March 31,

2020

Total debt

$

947,631

$

945,686

$

1,004,237

$

1,008,911

$

1,049,541

Less: cash and cash equivalents

(8,653

)

(8,751

)

(9,891

)

(11,652

)

(57,436

)

Total net debt

$

938,978

$

936,935

$

994,346

$

997,259

$

992,105

Same Store Portfolio Net Operating Income

We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding depreciation and amortization, casualty related costs, property management expenses, general administrative expenses, interest expense, and net gains on sale of assets.

Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same store and non same store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.

Same Store Properties and Same Store Portfolio

We review our same store portfolio at the beginning of each calendar year. Properties are added into the same store portfolio if they were owned at the beginning of the previous year. Properties that are held-for-sale or have been sold are excluded from the same store portfolio.

Total Gross Assets

Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (Dollars in thousands).

As of

March 31,

2021

December 30,

2020

September 30,

2020

June 30,

2020

March 31,

2020

Total assets

$

1,728,016

$

1,734,897

$

1,700,428

$

1,708,912

$

1,757,138

Plus: accumulated depreciation

223,187

208,618

194,645

187,758

172,789

Plus: accumulated amortization

19,776

19,380

19,827

19,754

19,567

Total gross assets

$

1,970,979

$

1,962,895

$

1,914,900

$

1,916,424

$

1,949,494

(IRT-ER)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428006080/en/

Independence Realty Trust, Inc. Contact

Edelman Financial Communications & Capital Markets

Ted McHugh and Lauren Torres

917-365-7979

[email protected]

KEYWORDS: United States North America Pennsylvania

INDUSTRY KEYWORDS: Residential Building & Real Estate Construction & Property REIT

MEDIA:

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Posted on April 28, 2021 4:08 pm
Montrose Environmental Group Announces New Sustainability-Linked Credit Facility

Montrose Environmental Group Announces New Sustainability-Linked Credit Facility

– New Term Loan and Revolving Credit Facility Lower Interest Expense and Reinforce Montrose’s Commitment to All Stakeholders –

IRVINE, Calif.–(BUSINESS WIRE)–
Montrose Environmental Group, Inc. (the “Company,” “Montrose” or “MEG”) (NYSE: MEG) announced today that the Company has entered into a new sustainability-linked credit agreement. Under the terms of the credit agreement (the New Credit Facility), the lenders agreed to extend credit to the Company in the form of a term loan, in an aggregate principal amount of $175 million (“Term Loan”), and a revolving credit facility, in an aggregate principal amount of $125 million (“Revolver”). The Company used net proceeds from the Term Loan and $42 million in borrowings under the Revolver to repay all of its $175 million of outstanding borrowings under its former term loan and former revolver and related fees and expenses.

Borrowings under the New Credit Facility bear interest at a rate of, at the option of the Company, a floating rate of either a Base Rate or LIBOR plus a spread of between 1.50% and 2.50%, in the case of LIBOR, or 1.50% to .50%, in the case of the Base Rate, based on the Company’s net leverage ratio. The opening spread of LIBOR plus 2.0% reduces the previous term loan interest rate of LIBOR plus 5.5%.

Additionally, by entering into the New Credit Facility, Montrose receives up to a 5 basis point pricing adjustment based on its performance against certain sustainability and ESG related objectives pursuant to the agreement. The agreement establishes benchmarks in four key areas, the first of which pertains to diversity and inclusion objectives at the Company. The three other benchmarks are directly related to the Company’s environmental focus serving customers, including liters of water treated for PFAS, volume of methane leaks detected, and the amount of low-carbon intensity energy (MMBtu biogas) generated from waste. Sustainability and ESG performance will be measured and communicated in the Company’s annual Sustainability Report.

Allan Dicks, Montrose’s Chief Financial Officer, stated, “ESG is a focus of our business and we are delighted to announce the strengthening of our capital structure with our inaugural sustainability-linked credit facility. This new debt structure directly aligns with our commitment to sustainability and innovation, while also helping us secure an attractive cost of financing and significantly expanding our debt capacity. We thank our new and existing lenders for their continued support and confidence in our industry-leading environmental solutions.”

Bank of the West is the administrative agent for the LoanS, Swing Line Lender, L/C Issuer, and Joint Lead Arranger. Capital One, National Association and BOFA Securities, Inc. acted as joint lead arrangers.

About Montrose

Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what’s coming tomorrow. With approximately 2,000 employees across over 70 locations around the world, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling the Company to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Further, many of these factors are, and may continue to be, amplified by the COVID-19 pandemic. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed on March 24, 2021, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428006078/en/

Investor Relations:

Rodny Nacier

(949) 988-3383

[email protected]

Media Relations:

Doug Donsky

(646) 361-1427

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Manufacturing Environment Science Other Science Engineering

MEDIA:

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Posted on April 28, 2021 4:08 pm
United States Lime & Minerals Reports First Quarter 2021 Results and Declares Regular Quarterly Cash Dividend

DALLAS, April 28, 2021 (GLOBE NEWSWIRE) — United States Lime & Minerals, Inc. (NASDAQ: USLM) today reported first quarter 2021 results: The Company’s revenues in the first quarter 2021 were $41.7 million, compared to $38.4 million in the first quarter 2020, an increase of $3.2 million, or 8.4%.

The Company’s revenues from its lime and limestone operations in the first quarter 2021 were $41.4 million, compared to $38.2 million in the first quarter 2020, an increase of $3.1 million, or 8.2%. Carthage Crushed Limestone (“Carthage”), which the Company acquired on July 1, 2020, contributed $2.2 million to the Company’s lime and limestone revenues for the first quarter 2021. The increase in Company revenues in the first quarter 2021, compared to the first quarter 2020, resulted primarily from increased sales of the Company’s lime and limestone products, principally due to the addition of limestone sales by Carthage to agriculture and roofing customers, and increased sales to the Company’s construction customers, partially offset by decreased sales to the Company’s oil and gas services customers. First quarter 2021 revenues were also favorably impacted by increases in the average selling prices for the Company’s lime and limestone products.

The Company’s gross profit was $11.8 million in the first quarter 2021, compared to $9.9 million in the first quarter 2020, an increase of $1.9 million, or 19.5%. The Company’s gross profit from its lime and limestone operations in the first quarter 2021 was $11.8 million, compared to $10.0 million in the first quarter 2020, an increase of $1.8 million, or 17.6%. The increase in gross profit in the first quarter 2021, compared to the first quarter 2020, resulted primarily from the increased revenues discussed above and increased operating efficiencies.

Selling, general and administrative (“SG&A”) expenses were $3.1 million in the first quarter 2021, compared to $3.2 million in the first quarter 2020, a decrease of $0.2 million, or 4.7%, primarily due to higher legal expenses in the first quarter 2020 related to the acquisition of Carthage, partially offset by increased stock-based compensation expense, principally due to higher prices for the Company’s common stock.

The Company reported net income of $7.0 million ($1.24 per share diluted) in the first quarter 2021, compared to $5.5 million ($0.98 per share diluted) in the first quarter 2020, an increase of $1.5 million, or 26.8%.

Federal, state, and local governmental restrictions in response to the COVID-19 pandemic have continued to impact general business activities in the markets for the Company’s lime and limestone products. While vaccination programs are having a positive effect on the resumption of normal business activities, the COVID-19 pandemic is ongoing, and its magnitude and continuing effects remain uncertain.

In February 2021, the Southern United States experienced severe winter storms which interrupted transportation, commerce, and utility services in the affected areas, including the delivery of electricity and natural gas to the Company’s plants. While the Company’s operations were briefly curtailed, the Company’s plants did not sustain any significant damage from the storms.

“During the first quarter 2021, we continued to see strong demand from our construction customers and improved demand from our environmental and steel customers,” said Timothy W. Byrne, President and Chief Executive Officer. Mr. Byrne added, “We are pleased that, through the efforts of our dedicated team, we continue to navigate our way through the COVID-19 pandemic and were successful in mitigating the adverse impact of February’s winter storms on our operations and plants.”

Dividend

The Company announced today that the Board of Directors has declared a regular quarterly cash dividend of $0.16 per share on the Company’s common stock. This dividend is payable on June 11, 2021 to shareholders of record at the close of business on May 21, 2021.

United States Lime & Minerals, Inc., a NASDAQ-listed public company with headquarters in Dallas, Texas, is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road and building contractors), industrial (including paper and glass manufacturers), metals (including steel producers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), roof shingle manufacturers, agriculture (including poultry and cattle feed producers), and oil and gas services industries. The Company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma and Texas through its wholly owned subsidiaries, Arkansas Lime Company, Colorado Lime Company, Texas Lime Company, U.S. Lime Company, U.S. Lime Company – Shreveport, U.S. Lime Company – St. Clair, ART Quarry TRS LLC (DBA Carthage Crushed Limestone), and U.S. Lime Company – Transportation. In addition, the Company, through its wholly owned subsidiary, U.S. Lime Company – O & G, LLC, has royalty and non-operating working interests pursuant to an oil and gas lease and a drillsite agreement on its Johnson County, Texas property, located in the Barnett Shale Formation.

Any statements contained in this news release, including, but not limited to, statements relating to the impact of the COVID-19 pandemic, that are not statements of historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to publicly update or revise any forward-looking statements, and investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation those risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

(Tables Follow)

United States Lime & Minerals, Inc.
CONDENSED CONSOLIDATED FINANCIAL DATA
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended

March 31,

2021 2020

INCOME STATEMENTS

Revenues $ 41,674 $ 38,440

Cost of revenues 29,869 28,563

Gross profit $ 11,805 $ 9,877

Selling, general and administrative expenses $ 3,067 $ 3,219

Operating profit $ 8,738 $ 6,658

Interest expense 62 62

Interest and other income, net (34 ) (247 )

Income tax expense 1,679 1,299

Net income $ 7,031 $ 5,544

Income per share of common stock:

Basic $ 1.24 $ 0.99

Diluted $ 1.24 $ 0.98

Weighted-average shares outstanding:

Basic 5,651 5,624

Diluted 5,664 5,634

Cash dividends per share of common stock $ 0.160 $ 0.160

March 31, December 31,

2021 2020

BALANCE SHEETS

Assets:

Current assets $ 131,445 $ 123,996

Property, plant and equipment, net 151,638 152,461

Other non-current assets 2,327 2,641

Total assets $ 285,410 $ 279,098

Liabilities and Stockholders’ Equity:

Current liabilities $ 10,743 $ 11,588

Deferred tax liabilities, net 22,271 21,531

Other long-term liabilities 2,626 2,787

Stockholders’ equity 249,770 243,192

Total liabilities and stockholders’ equity $ 285,410 $ 279,098

Contact: Timothy W. Byrne

(972) 991-8400

Posted on April 28, 2021 4:08 pm
Pool Corporation to Present at the Oppenheimer 16th Annual Industrial Growth Conference

COVINGTON, La., April 28, 2021 (GLOBE NEWSWIRE) — Pool Corporation (Nasdaq:POOL) announced today that Peter D. Arvan, President and Chief Executive Officer, and Mark W. Joslin, Senior Vice President and Chief Financial Officer, will be participating in the Oppenheimer 16^th Annual Industrial Growth Conference. They will be giving a virtual presentation on Wednesday, May 5, 2021, at 12:45 PM Eastern Time. Informational materials used during the conference will be posted on POOLCORP’s website on the morning of the conference.

Pool Corporation is the world’s largest wholesale distributor of swimming pool and related backyard products. POOLCORP operates approximately 400 sales centers in North America, Europe and Australia through which it distributes more than 200,000 national brand and private label products to roughly 120,000 wholesale customers. For more information about POOLCORP, please visit www.poolcorp.com.

This news release may include “forward-looking” statements that involve risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including impacts on our business from the COVID-19 pandemic, the sensitivity of the swimming pool supply business to weather conditions and other risks detailed in POOLCORP’s 2020 Form 10-K and other reports and filings with the Securities and Exchange Commission (SEC).

CONTACT:

Curtis J. Scheel
Director of Investor Relations
985.801.5341
[email protected]

Posted on April 28, 2021 4:08 pm
FNCB Bancorp, Inc. Declares Second Quarter 2021 Dividend

DUNMORE, Pa., April 28, 2021 (GLOBE NEWSWIRE) — On April 28, 2021, the Board of Directors of FNCB Bancorp, Inc. (NASDAQ:FNCB) declared a dividend of $0.06 per share for the second quarter of 2021, an increase of $0.005, or 9.1%, from $0.055 per share for the second quarter of 2020. The second quarter 2021 dividend is payable on June 15, 2021 to shareholders of record as of June 1, 2021. Year-to-date dividends declared in 2021 total $0.12 per share, compared to $0.11 per share in 2020.

About FNCB Bancorp, Inc.:

FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 110 years, FNCB Bank continues as a premier community bank in Northeastern Pennsylvania – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB currently operates through 17 community offices located in Lackawanna, Luzerne and Wayne Counties and remains dedicated to making its customers’ banking experience simply better. For more information about FNCB, visit www.fncb.com.

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained in our filings with the Securities and Exchange Commission (“SEC”), in our reports to shareholders, and in our other communications, which are made in good faith by us pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control). The words “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “future” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the effect of the coronavirus (“COVID-19”) pandemic on FNCB and its customers, the Commonwealth of Pennsylvania and the United States, related to the economy and overall financial stability; government and regulatory responses to the COVID-19 pandemic; government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including, but not limited to, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Tax Cuts and Jobs Act; political instability; the ability of FNCB to manage credit risk; weakness in the economic environment, in general, and within FNCB’s market area; the deterioration of one or a few of the commercial real estate loans with relatively large balances contained in FNCB’s loan portfolio; greater risk of loan defaults and losses from concentration of loans held by FNCB, including those to insiders and related parties; if FNCB’s portfolio of loans to small and mid-sized community-based businesses increases its credit risk; if FNCB’s ALLL is not sufficient to absorb actual losses or if increases to the ALLL were required; FNCB is subject to interest-rate risk and any changes in interest rates could negatively impact net interest income or the fair value of FNCB’s financial assets; if management concludes that the decline in value of any of FNCB’s investment securities is other-than-temporary could result in FNCB recording an impairment loss; if FNCB’s risk management framework is ineffective in mitigating risks or losses to FNCB; if FNCB is unable to successfully compete with others for business; a loss of depositor confidence resulting from changes in either FNCB’s financial condition or in the general banking industry; if FNCB is unable to retain or grow its core deposit base; inability or insufficient dividends from its subsidiary, FNCB Bank; if FNCB loses access to wholesale funding sources; interruptions or security breaches of FNCB’s information systems; any systems failures or interruptions in information technology and telecommunications systems of third parties on which FNCB depends; security breaches; if FNCB’s information technology is unable to keep pace with growth or industry developments or if technological developments result in higher costs or less advantageous pricing; the loss of management and other key personnel; dependence on the use of data and modeling in both its management’s decision-making generally and in meeting regulatory expectations in particular; additional risk arising from new lines of business, products, product enhancements or services offered by FNCB; inaccuracy of appraisals and other valuation techniques FNCB uses in evaluating and monitoring loans secured by real property and other real estate owned; unsoundness of other financial institutions; damage to FNCB’s reputation; defending litigation and other actions; dependence on the accuracy and completeness of information about customers and counterparties; risks arising from future expansion or acquisition activity; environmental risks and associated costs on its foreclosed real estate assets; any remediation ordered, or adverse actions taken, by federal and state regulators, including requiring FNCB to act as a source of financial and managerial strength for the FNCB Bank in times of stress; costs arising from extensive government regulation, supervision and possible regulatory enforcement actions; new or changed legislation or regulation and regulatory initiatives; noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations; failure to comply with numerous “fair and responsible banking” laws; any violation of laws regarding privacy, information security and protection of personal information or another incident involving personal, confidential or proprietary information of individuals; any rulemaking changes implemented by the Consumer Financial Protection Bureau; inability to attract and retain its highest performing employees due to potential limitations on incentive compensation contained in proposed federal agency rulemaking; any future increases in FNCB Bank’s FDIC deposit insurance premiums and assessments; and the success of FNCB at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in FNCB’s filings with the SEC.

FNCB cautions that the foregoing list of important factors is not all inclusive. Readers are also cautioned not to place undue reliance on any forward-looking statements, which reflect management’s analysis only as of the date of this report, even if subsequently made available by FNCB on its website or otherwise. FNCB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of FNCB to reflect events or circumstances occurring after the date of this press release.

Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the SEC, including its Form 10-K for the year ended December 31, 2020.

INVESTOR CONTACT: James M. Bone, Jr., CPA Executive Vice President and Chief Financial Officer FNCB Bank (570) 348-6419 [email protected]

Posted on April 28, 2021 4:08 pm
Mersana Therapeutics Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

CAMBRIDGE, Mass., April 28, 2021 (GLOBE NEWSWIRE) — Mersana Therapeutics, Inc. (Nasdaq: MRSN), a clinical-stage biopharmaceutical company focused on discovering and developing a pipeline of antibody-drug conjugates (ADCs) targeting cancers in areas of high unmet medical need, today announced the grant of an inducement award to the newly appointed Senior Vice President and Chief Legal Officer, Alejandra Carvajal. In connection with the appointment, the Compensation Committee of the Board of Directors of Mersana Therapeutics approved a stock option grant to Ms. Carvajal as an inducement material to Ms. Carvajal entering into employment with Mersana Therapeutics, in accordance with Nasdaq Listing Rule 5635(c)(4). The stock option grant provides for the purchase of up to 112,500 shares of Mersana Therapeutics common stock, at a price of $16.98 per share, the closing price per share of Mersana Therapeutics common stock on the date of grant, and vests over four years, with 25% of the shares vesting on the first anniversary of the Ms. Carvajal’s employment start date, and the remainder vesting in equal quarterly installments over the following three years, subject to Ms. Carvajal’s continued employment with Mersana Therapeutics through such applicable vesting dates.

About Mersana Therapeutics

Mersana Therapeutics is a clinical-stage biopharmaceutical company using its differentiated and proprietary ADC platforms to rapidly develop novel ADCs with optimal efficacy, safety and tolerability to meaningfully improve the lives of people fighting cancer. Mersana’s lead product candidate, upifitamab rilsodotin (UpRi), is a Dolaflexin ADC targeting NaPi2b and is being studied in UPLIFT, a single-arm registration strategy, in patients with platinum-resistant ovarian cancer as well as the expansion portion of a Phase 1 proof-of-concept clinical study in patients with NSCLC adenocarcinoma. XMT-1592, Mersana’s second ADC product candidate targeting NaPi2b-expressing tumors, was created using Mersana’s customizable and homogeneous Dolasynthen platform and is in the dose escalation portion of a Phase 1 proof-of-concept clinical study. The Company’s early-stage programs include XMT-1660, a Dolasynthen ADC targeting B7-H4, as well as XMT-2056, a STING-agonist ADC developed using the Company’s Immunosynthen platform. In addition, multiple partners are using Mersana’s Dolaflexin platform to advance their ADC pipelines.

Contact:

Investor & Media Contact
Sarah Carmody, 617-844-8577
[email protected]

Posted on April 28, 2021 4:07 pm
Comfort Systems USA Declares Quarterly Dividend

Comfort Systems USA Declares Quarterly Dividend

HOUSTON–(BUSINESS WIRE)–Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, today announced that its board of directors declared a quarterly dividend of $0.115 per share on Comfort Systems USA, Inc. common stock. The dividend is payable on May 25, 2021 to stockholders of record at the close of business on May 14, 2021.

Comfort Systems USA® is a premier provider of business solutions addressing workplace comfort, with 139 locations in 113 cities around the nation. For more information, visit the Company’s website atwww.comfortsystemsusa.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428006088/en/

William George, CFO (713-830-9650)

Julie Shaeff, CAO (713-830-9687)

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Building Systems Other Construction & Property Residential Building & Real Estate Commercial Building & Real Estate Construction & Property

MEDIA:

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Posted on April 28, 2021 4:07 pm
DiaMedica Therapeutics to Report First Quarter 2021 Financials and Provide a Business Update May 6, 2021

DiaMedica Therapeutics to Report First Quarter 2021 Financials and Provide a Business Update May 6, 2021

MINNEAPOLIS–(BUSINESS WIRE)–
DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage biopharmaceutical company focused on developing novel treatments for neurological disorders and kidney diseases, today announced that its first quarter 2021 financial results will be released after the markets close on Wednesday, May 5^th. DiaMedica will host a live conference call on Thursday, May 6^th at 7:00 AM Central Time to discuss its business update and financial results.

Conference Call details:

Date:

Thursday, May 6, 2021

Time:

7:00 AM CT / 8:00 AM ET

Web access:

https://event.on24.com/wcc/r/3081283/E7DD7636B9914C65BD79123196FDA60B

Dial In:

(866) 393-4306 (domestic)

(734) 385-2616 (international)

Conference ID:

2966016

Interested parties may access the conference call by dialing in or listening to the simultaneous webcast. Listeners should log on to the website or dial in 15 minutes prior to the call. The webcast will remain available for play back on our website, under investor relations – events and presentations, following the earnings call and for 12 months thereafter. A telephonic replay of the conference call will be available until May 13, 2021, by dialing (855) 859-2056 (US Toll Free), (404) 537-3406 (International), and entering the replay passcode: 2966016.

About DiaMedica Therapeutics Inc.

DiaMedica Therapeutics Inc. (Nasdaq: DMAC) is a clinical stage biopharmaceutical company focused on developing novel treatments to improve the lives of patients with neurological and chronic kidney diseases. To learn more about DiaMedica, please visit www.diamedica.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428005679/en/

Scott Kellen

Chief Financial Officer

Phone: (763) 496-5118

[email protected]

For Investor Inquiries:
Tim McCarthy

Managing Director, LifeSci Advisors, LLC

[email protected]

KEYWORDS: Minnesota United States North America

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Clinical Trials

MEDIA:

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