Market Newsdesk

February 10, 2021 4:19 pm

Dover President and Chief Executive Officer to Speak at Barclays Industrial Select 2021 and Citi 2021 Industrials Conferences

PR Newswire

DOWNERS GROVE, Ill., Feb. 10, 2021 /PRNewswire/ — Dover (NYSE: DOV) announced that its President and Chief Executive Officer, Richard J. Tobin, will present virtually at two industry conferences this month:

The Barclays Industrial Select Conference on Tuesday, February 16, 2021, at 8:10 am ET; and
The Citi 2021 Industrials Conference on Wednesday, February 17, 2021, at 9:40 am ET.

Links to the live audio webcasts of the two presentations will be available on dovercorporation.com, and replays will be archived on the website for 90 days following the date of each respective appearance.

About Dover:

Dover is a diversified global manufacturer and solutions provider with annual revenue of approximately $7 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale, operational agility, world-class engineering capability and customer intimacy to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of over 23,000 employees takes an ownership mindset, collaborating with customers to redefine what’s possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under “DOV.” Additional information is available at www.dovercorporation.com.

Investor Contact:	Media Contact:
Andrey Galiuk	Adrian Sakowicz
Vice President – Corporate Development	Vice President – Communications
and Investor Relations	(630) 743-5039
(630) 743-5131	[email protected]
[email protected]

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SOURCE Dover

February 10, 2021 4:19 pm

Lumen Technologies Inc. reports fourth quarter 2020 results

Fourth Quarter 2020 Highlights

— Reported Net Loss of $2.289 billion for the fourth quarter 2020, compared to reported Net Income of $223 million for the fourth quarter 2019. Excluding Integration and Transformation Costs and Special Items, which included a non-cash goodwill impairment charge of $2.642 billion, Net Income was $522 million for the fourth quarter 2020, compared to $352 million for the fourth quarter 2019

— Diluted EPS was ($2.12) for the fourth quarter 2020, compared to $0.21 per share for the fourth quarter 2019. Excluding Integration and Transformation Costs and Special Items, Diluted EPS was $0.48 per share for the fourth quarter 2020, compared to $0.33 per share for the fourth quarter 2019

— Generated Adjusted EBITDA of $2.281 billion for the fourth quarter 2020, compared to $2.278 billion for the fourth quarter 2019, excluding Integration and Transformation Costs and Special Items of $198 million and $173 million, respectively

— Reported Net Cash Provided by Operating Activities of $1.682 billion for the fourth quarter 2020

— Generated Free Cash Flow of $1.004 billion for the fourth quarter 2020, compared to $1.022 billion, excluding cash paid for Integration and Transformation Costs and Special Items of $80 million and $53 million, respectively

— Achieved approximately $830 million of annualized run-rate Adjusted EBITDA cost transformation savings

Full Year 2020 Highlights

— Reported a Net Loss of $1.232 billion for the full year 2020, compared to a Net Loss of $5.269 billion for the full year 2019. Excluding Integration and Transformation Costs and Special Items, reported Net Income was $1.801 billion for the full year 2020 compared to $1.409 billion for the full year 2019

— Diluted EPS was ($1.14) for the full year 2020, compared to ($4.92) per share for the full year 2019. Excluding Integration and Transformation Costs and Special Items, Diluted EPS was $1.67 per share for the full year 2020, compared to $1.32 per share for the full year 2019

— Reported Net Cash Provided by Operating Activities of $6.524 billion for the full year 2020

— Adjusted EBITDA was $8.888 billion for the full year 2020, compared to $9.070 billion for the full year 2019, excluding Integration and Transformation Costs and Special Items

— Reported Free Cash Flow of $3.131 billion for the full year 2020, compared to $3.276 billion for the full year 2019, excluding cash paid for Integration and Transformation Costs and Special Items

— Reduced Net Debt by approximately $1.6 billion and reduced leverage to 3.6x Net-Debt-to-Adjusted EBITDA

PR Newswire

DENVER, Feb. 10, 2021 /PRNewswire/ — Lumen Technologies Inc. (NYSE: LUMN) reported results for the fourth quarter ended Dec. 31, 2020.

“We made significant transformational progress in 2020, launching the Lumen platform to support our customers’ application and data needs for the 4^th Industrial Revolution,” said Jeff Storey, president and CEO of Lumen. “We invested in our Edge Cloud capabilities, enhanced our customers’ digital experiences, and launched new platform-based solutions. These investments enabled us to improve our revenue growth trajectory and serve as the foundation for several new strategic partnerships. We are excited about the opportunity for growth in 2021 as we truly become the platform for amazing things.”

Total revenue was $5.125 billion for the fourth quarter 2020, compared to $5.306 billion for the fourth quarter 2019.

Financial Results

Metric	Fourth Quarter		Fourth Quarter	Full Year	Full Year
($ in millions, except per share data)	2020		2019⁽¹⁾	2020	2019⁽¹⁾
International and Global Accounts	$	856	870	3,405	3,476
Enterprise	1,430		1,434	5,722	5,696
Small and Medium Business	618		665	2,557	2,727
Wholesale	922		983	3,777	4,042
Consumer	1,299		1,354	5,251	5,517
Total Revenue	$	5,125	5,306	20,712	21,458
Cost of Services and Products	2,231		2,257	8,934	9,134
Selling, General and Administrative Expenses	866		992	3,464	3,715
Share-based Compensation Expenses	55		48	175	162
Adjusted EBITDA⁽²⁾	2,083		2,105	8,489	8,771
Adjusted EBITDA, Excluding Integration and Transformation Costs and Special Items⁽²⁾⁽³⁾	2,281		2,278	8,888	9,070
Adjusted EBITDA Margin⁽²⁾	40.6%		39.7%	41.0%	40.9%
Adjusted EBITDA Margin, Excluding Integration and Transformation Costs and Special Items⁽²⁾⁽³⁾	44.5%		42.9%	42.9%	42.3%
Net Cash Provided by Operating Activities	1,682		1,909	6,524	6,680
Capital Expenditures	758		940	3,729	3,628
Unlevered Cash Flow⁽²⁾	1,297		1,486	4,416	5,065
Unlevered Cash Flow, Excluding Cash Integration and Transformation Costs and Special Items⁽²⁾⁽⁴⁾	1,377		1,539	4,752	5,289
Free Cash Flow⁽²⁾	924		969	2,795	3,052
Free Cash Flow, Excluding Cash Integration and Transformation Costs and Special Items⁽²⁾⁽⁴⁾	1,004		1,022	3,131	3,276
Net (Loss) Income	(2,289)		223	(1,232)	(5,269)
Net Income, Excluding Integration and Transformation Costs and Special Items⁽⁵⁾	522		352	1,801	1,409
Net (Loss) Income per Common Share – Diluted	(2.12)		0.21	(1.14)	(4.92)
Net Income per Common Share – Diluted, Excluding Integration and Transformation Costs and Special Items⁽⁵⁾	0.48		0.33	1.67	1.32
Weighted Average Shares Outstanding (in millions) – Diluted	1,080.5		1,078.2	1,079.1	1,071.4

⁽¹⁾Reflects certain reclassifications due to accounting changes made in the first quarter of 2020, which were announced in the company’s 8-K report filed with the SEC on April 30, 2020.
⁽²⁾ See the attached schedules for definitions of non-GAAP metrics, reconciliation to GAAP figures and further explanations of the adjustments referred to in notes 3, 4 and 5.
⁽³⁾ Excludes Integration and Transformation Costs and Special Items in the amounts of (i) $198 million for the fourth quarter of 2020, (ii) $173 million for the fourth quarter of 2019, (ii) $399 million for the full year 2020, and (iv) $299 million for the full year 2019.
⁽⁴⁾ Excludes cash paid for Integration and Transformation Costs and Special Items of (i) $80 million for the fourth quarter of 2020, (ii) $53 million for the fourth quarter of 2019, (iii) $336 million for the full year 2020, and (iv) $224 million for the full year 2019.
⁽⁵⁾ Excludes Integration and Transformation Costs and Special Items (net of the income tax effect thereof) in the amounts of (i) $2.811 billion for the fourth quarter of 2020, (ii) $129 million for the fourth quarter of 2019, (iii) $3.033 billion for the full year 2020, and (iv) $6.678 billion for the full year 2019.

Revenue	Fourth Quarter		Third Quarter	QoQ Percent	Fourth Quarter	YoY Percent
($ in millions)	2020		2020	Change	2019	Change
By Business Segment
International and Global Accounts	$	856	835	3%	870	(2)%
Enterprise	1,430		1,439	(1)%	1,434	—%
Small and Medium Business	618		635	(3)%	665	(7)%
Wholesale	922		949	(3)%	983	(6)%
Consumer	1,299		1,309	(1)%	1,354	(4)%
Total Revenue	$	5,125	5,167	(1)%	5,306	(3)%

Cash Flow

Free Cash Flow, excluding Integration and Transformation Costs and Special Items, was $1.004 billion in the fourth quarter 2020, compared to $1.022 billion in the fourth quarter 2019.

As of Dec. 31, 2020, Lumen had cash and cash equivalents of $406 million.

Goodwill Impairment

Each year, the company is required under GAAP to undertake a goodwill impairment analysis of all its reporting units. The analysis compares the fair value of the equity for each of the reporting units to the carrying value of equity for each reporting unit. The analysis takes into account weighted average cost of capital and market multiples, along with the company’s forecasts. Based on this analysis, in the fourth quarter of 2020 the company recorded an aggregate $2.642 billion non-cash goodwill impairment across multiple reporting units.

2021 Reporting Changes

Segment and Sales Channel Reporting

The company is making changes to its segment and customer-facing sales channel reporting categories in 2021 to align with operational changes designed to better support its customers.

Beginning next quarter, the company will report two segments: Business and Mass Markets. The Business segment will include four sales channels: International & Global Accounts, Large Enterprise, Mid-Market Enterprise, and Wholesale. Mass Markets includes both Consumer and our Small Business Group (SBG).

For the Business and Mass Markets segments, proforma for these upcoming changes, fourth quarter 2020 revenue was:

Revenue	Proforma Fourth Quarter 2020
($ in millions)	Proforma Fourth Quarter 2020
By Sales Channel
International & Global Accounts	$	1,033
Large Enterprise	986
Mid-Market Enterprise	716
Wholesale	930
Business Segment	$	3,665
Mass Markets Segment	1,460
Total Revenue	$	5,125

Product Category Reporting

Additionally, beginning next quarter the company is making changes to the product category reporting to better reflect product life cycles and the company’s go to market approach. These changes include both the creation of new product categories and the realignment of products and services within previously reported product categories.

For Business segment revenue, the company will report the following product categories: Compute & Application Services, IP & Data Services, Fiber Infrastructure Services and Voice & Other.

Proforma for these upcoming changes, fourth quarter 2020 product categories for the Business Segment were:

Business	Proforma Fourth Quarter 2020
By Product Category
($ in millions)
Compute & Application Services	$	454
IP & Data Services	1,588
Fiber Infrastructure Services	575
Voice & Other	1,048
Total Revenue	$	3,665

For Mass Markets segment revenue, the company will report in the following product categories: Consumer Broadband, Small Business Group (SBG) Broadband, Voice & Other, and CAF II.

Proforma for these upcoming changes, fourth quarter 2020 product categories revenue for the Mass Markets segment were:

Mass Markets	Proforma Fourth Quarter 2020
By Product Category
($ in millions)
Consumer Broadband	$	731
SBG Broadband	37
Voice & Other	569
CAF II	123
Total Revenue	$	1,460

Adjusted EBITDA and Free Cash Flow excluding Special Items

Going forward, the company plans to discontinue reporting Integration and Transformation savings and associated costs.

The company plans to continue to provide disclosure on Adjusted EBITDA, Free Cash Flow and other profitability measures, including and excluding Special Items. Special Items will include expenses such as severance, material legal settlements or other unforeseen material items that are one-time or unusual in nature.

Proforma for these upcoming changes, 2020 profitability and cash flow metrics were:

Proforma Adjusted EBITDA Reporting			Proforma Free Cash Flow Reporting

Metric	2020 Reported	2020 Proforma	Metric	2020 Reported	2020 Proforma
Adjusted EBITDA⁽¹⁾	$8,489	$8,489	Free Cash Flow⁽¹⁾	$2,795	$2,795
Severance⁽²⁾	$151	$151	Severance⁽²⁾	$137	$137
Other Integration and Transformation Costs	$224	n/a	Other Integration and Transformation Costs	$152	n/a
Subtotal	$375	$151	Subtotal	$289	$137
Special Items	$24	$24	Special Items	$47	$47
Total Add Backs	$399	$175	Total Add Backs	$336	$184
Adjusted EBITDA Excl. Integration and Transformation Costs and Special items	$8,888	n/a	Free Cash Flow Excl. Integration and Transformation Costs and Special Items	$3,131	n/a
Adjusted EBITDA Excl. Special Items	n/a	$8,664	Free Cash Flow Excl. Special Items	n/a	$2,979
Adjusted EBITDA Margin⁽³⁾	43%	42%

⁽¹⁾ For definitions of non-GAAP metrics and reconciliation to GAAP figures, see the attached schedules and Lumen’s Investor Relations website.
⁽²⁾ Severance costs were previously classified within Integration and Transformation Costs. Effective in 2021, this will be reported within Special Items.
⁽³⁾ 2020 reported Adj. EBITDA margin excludes Integration and Transformation Costs and Special Items; 2020 proforma Adj. EBITDA margin excludes only Special Items (including severance costs).

2021 Outlook

2021 Metric⁽¹⁾⁽²⁾	2020 Proforma⁽³⁾	2021 Outlook
Adjusted EBITDA (excluding Special Items)	$8.664 billion	$8.4 to $8.6 billion
Free Cash Flow (excluding Special Items)⁽⁴⁾	$2.979 billion	$2.8 to $3.0 billion

2021 Metric⁽¹⁾⁽²⁾	2020 Actual	2021 Outlook
Net Cash Interest	$1.627 billion	$1.525 to $1.575 billion
GAAP Interest Expense	$1.668 billion	$1.550 billion
Dividends⁽⁵⁾	$1.1 billion	$1.1 billion
Capital Expenditures	$3.729 billion	$3.5 to $3.8 billion
Depreciation and Amortization	$4.710 billion	$4.2 to $4.4 billion
Share-based Compensation Expenses	$175 million	~$200 million
Cash Income Taxes	$70 million	$100 million
Full Year Effective Income Tax Rate⁽⁶⁾	24%	27%

⁽¹⁾ For definitions of non-GAAP metrics and reconciliation to GAAP figures, see the attached schedules and Lumen’s Investor Relations website.
⁽²⁾ Outlook measures in this chart and the accompanying schedules (i) exclude the effects of Special Items, future changes in our operating or capital allocation plans, unforeseen changes in regulation, laws or litigation, and other unforeseen events or circumstances impacting our financial performance and (ii) speak only as of Feb. 10, 2021. See “Forward-Looking Statements.”
⁽³⁾ For 2020 results, Adjusted EBITDA and Free Cash Flow are on a proforma basis to reflect our upcoming 2021 reporting. All other metrics are on an as reported basis.
⁽⁴⁾ Free Cash Flow outlook does not include any potential discretionary pension fund contribution.
⁽⁵⁾ Dividends is defined as dividends paid as disclosed in the Consolidated Statements of Cash Flows. Assumes payment of dividends at the rate of $1.00 per share per year, based on the number of shares outstanding on Dec. 31, 2020. Payments of all dividends are at the discretion of the Board of Directors.
⁽⁶⁾ 2020 Actual excludes goodwill impairment.

Investor Call

Lumen’s management will host a conference call at 5 p.m. ET today, Feb. 10, 2021. The conference call will be streamed live over Lumen’s website at ir.lumen.com. Additional information regarding fourth quarter 2020 results, including the presentation materials management will review during the conference call, will be available on the Investor Relations website prior to the call. If you are unable to join the call via the web, the call can be accessed live at +1 877-283-5145 (U.S. Domestic) or +1 312-281-1201 (International).

A telephone replay of the call will be available beginning at 7 p.m. ET on Feb. 10, 2021, and ending May 11, 2021, at 6 p.m. ET. The replay can be accessed by dialing +1 800-633-8284 (U.S. Domestic) or +1 402-977-9140 (International), reservation code 21989194. A webcast replay of the call will also be available on our website beginning at 7 p.m. ET on Feb. 10, 2021, and ending May 11, 2021, at 6 p.m. ET.

About Lumen

Lumen Technologies Inc. (NYSE: LUMN) is guided by our belief that humanity is at its best when technology advances the way we live and work. With approximately 450,000 route fiber miles and serving customers in more than 60 countries, we deliver the fastest, most secure platform for applications and data to help businesses, government and communities deliver amazing experiences.

Learn more about the Lumen network, edge cloud, security, communication and collaboration solutions and our purpose to further human progress through technology at news.lumen.com/home, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks of Lumen Technologies LLC in the United States. Lumen Technologies LLC is a wholly-owned affiliate of Lumen Technologies, Inc.

Forward-Looking Statements

Except for historical and factual information, the matters set forth in this release and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” “will,” and similar expressions are forward-looking statements as defined by the federal securities laws, and are subject to the “safe harbor” protections thereunder. These forward-looking statements are not guarantees of future results and are based on current expectations only, are inherently speculative, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in those statements if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: uncertainties regarding the extent to which COVID-19 health and economic disruptions will continue to impact our business, operations, cash flows and corporate initiatives; the effects of competition from a wide variety of competitive providers, including decreased demand for our more mature service offerings and increased pricing pressures; the effects of new, emerging or competing technologies, including those that could make our products less desirable or obsolete; our ability to attain our key operating imperatives, including simplifying and consolidating our network, simplifying and automating our service support systems, strengthening our relationships with customers and attaining projected cost savings; our ability to safeguard our network, and to avoid the adverse impact of possible security breaches, service outages, system failures, or similar events impacting our network or the availability and quality of our services; the effects of ongoing changes in the regulation of the communications industry, including the outcome of legislative, regulatory or judicial proceedings relating to content liability standards, intercarrier compensation, universal service, broadband deployment, data protection, privacy and net neutrality; our ability to effectively retain and hire key personnel and to successfully negotiate collective bargaining agreements on reasonable terms without work stoppages; possible changes in the demand for our products and services, including increased demand for high-speed data transmission services; our ability to successfully maintain the quality and profitability of our existing product and service offerings and to introduce profitable new offerings on a timely and cost-effective basis; our ability to generate cash flows sufficient to fund our financial commitments and objectives, including our capital expenditures, operating costs, debt repayments, dividends, pension contributions and other benefits payments; our ability to successfully and timely implement our operating plans and corporate strategies, including our delevering strategy; changes in our operating plans, corporate strategies, dividend payment plans or other capital allocation plans, whether based upon COVID-19 disruptions, changes in our cash flows, cash requirements, financial performance, financial position, market conditions or otherwise; the impact of any future material acquisitions or divestitures that we may engage in; the negative impact of increases in the costs of our pension, health, post-employment or other benefits, including those caused by changes in markets, interest rates, mortality rates, demographics or regulations; the potential negative impact of customer complaints, government investigations, security breaches or service outages impacting us or our industry; adverse changes in our access to credit markets on favorable terms, whether caused by changes in our financial position, lower credit ratings, unstable markets or otherwise; our ability to meet the terms and conditions of our debt obligations and covenants, including our ability to make transfers of cash in compliance therewith; our ability to maintain favorable relations with our securityholders, key business partners, suppliers, vendors, landlords and financial institutions; our ability to meet evolving environmental, social and governance expectations and benchmarks; our ability to collect our receivables from, or continue to do business with, financially-troubled customers, including, but not limited to, those adversely impacted by the economic dislocations caused by the COVID-19 pandemic; our ability to use our net operating loss carryforwards in the amounts projected; any adverse developments in legal or regulatory proceedings involving us; changes in tax, pension, healthcare or other laws or regulations, in governmental support programs, or in general government funding levels, including those arising from pending proposals to increase federal income tax rates; the effects of changes in accounting policies, practices or assumptions, including changes that could potentially require additional future impairment charges; the effects of adverse weather, terrorism, epidemics, pandemics, rioting, societal unrest, or other natural or man-made disasters or disturbances; the potential adverse effects if our internal controls over financial reporting have weaknesses or deficiencies, or otherwise fail to operate as intended; the effects of more general factors such as changes in interest rates, in exchange rates, in operating costs, in public policy, in the views of financial analysts, or in general market, labor, economic or geo-political conditions; and other risks referenced from time to time in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to unduly rely upon our forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statement, and is based upon, among other things, regulatory, technological, industry, competitive, economic and market conditions, and our related assumptions, as of such date. We may change our intentions, strategies or plans without notice at any time and for any reason.

Reconciliation to GAAP

This release includes certain historical and forward-looking non-GAAP financial measures, including but not limited to Adjusted EBITDA, Free Cash Flow, Unlevered Cash Flow, and adjustments to GAAP and non-GAAP measures to exclude the effect of Integration and Transformation Costs and Special Items. In addition to providing key metrics for management to evaluate the company’s performance, we believe these measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends.

Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial schedules. Reconciliation of additional non-GAAP historical financial measures that may be discussed during the call described above, along with further descriptions of non-GAAP financial measures, will be available in the Investor Relations portion of the company’s website at ir.lumen.com. Non-GAAP measures are not presented to be replacements or alternatives to the GAAP measures, and investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP. Lumen may present or calculate its non-GAAP measures differently from other companies.


Lumen Technologies, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 AND 2019
(UNAUDITED)
($ in millions, except per share amounts; shares in thousands)

		Three months ended December 31,			Increase / (decrease)	Twelve months ended December 31,		Increase / (decrease)
		2020		2019 ⁽¹⁾	Increase / (decrease)	2020	2019⁽¹⁾	Increase / (decrease)

OPERATING REVENUE		$	5,125	5,306	(3)%	20,712	21,458	(3)%

OPERATING EXPENSES
	Cost of services and products	2,231		2,257	(1)%	8,934	9,134	(2)%
	Selling, general and administrative	866		992	(13)%	3,464	3,715	(7)%
	Depreciation and amortization	1,195		1,210	(1)%	4,710	4,829	(2)%
	Goodwill impairment	2,642		—	nm	2,642	6,506	(59)%
	Total operating expenses	6,934		4,459	56%	19,750	24,184	(18)%

OPERATING (LOSS) INCOME		(1,809)		847	nm	962	(2,726)	nm

OTHER (EXPENSE) INCOME
	Interest expense	(396)		(484)	(18)%	(1,668)	(2,021)	(17)%
	Other (expense) income, net	(3)		(14)	(79)%	(76)	(19)	nm
	Income tax expense	(81)		(126)	(36)%	(450)	(503)	(11)%
NET (LOSS) INCOME		$	(2,289)	223	nm	(1,232)	(5,269)	(77)%
BASIC (LOSS) EARNINGS PER SHARE		$	(2.12)	0.21	nm	(1.14)	(4.92)	nm
DILUTED (LOSS) EARNINGS PER SHARE		$	(2.12)	0.21	nm	(1.14)	(4.92)	nm

WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic	1,080,507		1,073,000	1%	1,079,130	1,071,441	1%
	Diluted	1,080,507		1,078,175	—%	1,079,130	1,071,441	1%

DIVIDENDS PER COMMON SHARE		$	0.25	0.25	—%	1.00	1.00	—%

	Exclude: Integration and Transformation Costs and Special Items⁽²⁾	$	2,811	129	nm	3,033	6,678	(55)%

NET INCOME EXCLUDING INTEGRATION AND TRANSFORMATION COSTS AND SPECIAL ITEMS		$	522	352	48%	1,801	1,409	28%

DILUTED EARNINGS PER SHARE EXCLUDING INTEGRATION AND TRANSFORMATION COSTS AND SPECIAL ITEMS		$	0.48	0.33	45%	1.67	1.32	27%

⁽¹⁾ Reflects certain reclassifications due to accounting changes made in the first quarter of 2020, which were announced in the company’s 8-K report filed with the SEC on April 30, 2020.
⁽²⁾ Excludes the Integration and Transformation Costs and Special Items described in the accompanying Non-GAAP Integration and Transformation Costs and Special Items table, net of the income tax effect thereof.
nm – Percentages greater than 200% and comparisons between positive and negative values are considered not meaningful.

Lumen Technologies, Inc.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2020 AND 2019
(UNAUDITED)
($ in millions)
	December 31, 2020		December 31, 2019
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	406	1,690
Accounts receivable, less allowance of $191 and $106	1,962		2,259
Other	808		819
Total current assets	3,176		4,768
Property, plant and equipment, net of accumulated depreciation of $31,596 and $29,346	26,338		26,079
GOODWILL AND OTHER ASSETS
Goodwill	18,870		21,534
Other intangible assets, net	8,219		9,567
Other, net	2,791		2,794
Total goodwill and other assets	29,880		33,895
TOTAL ASSETS	$	59,394	64,742
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	2,427	2,300
Accounts payable	1,134		1,724
Accrued expenses and other liabilities
Salaries and benefits	1,008		1,037
Income and other taxes	314		311
Current operating lease liabilities	379		416
Interest	291		280
Other	328		386
Current portion of deferred revenue	753		804
Total current liabilities	6,634		7,258
LONG-TERM DEBT	29,410		32,394
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes, net	3,342		2,918
Benefit plan obligations, net	4,556		4,594
Other	4,290		4,108
Total deferred credits and other liabilities	12,188		11,620
STOCKHOLDERS’ EQUITY
Common stock	1,097		1,090
Additional paid-in capital	20,909		21,874
Accumulated other comprehensive loss	(2,813)		(2,680)
Accumulated deficit	(8,031)		(6,814)
Total stockholders’ equity	11,162		13,470
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	59,394	64,742




Lumen Technologies, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
TWELVE MONTHS ENDED DECEMBER 31, 2020 AND 2019
(UNAUDITED)
($ in millions)

	Twelve months ended
	December 31, 2020		December 31, 2019
OPERATING ACTIVITIES
Net Loss	$	(1,232)	(5,269)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,710		4,829
Impairment of goodwill and other assets	2,642		6,506
Deferred income taxes	366		440
Provision for uncollectible accounts	189		145
Net loss (gain) on early retirement and modification of debt	105		(72)
Share-based compensation	175		162
Changes in current assets and liabilities, net	(663)		(278)
Retirement benefits	(111)		(12)
Changes in other noncurrent assets and liabilities, net	246		245
Other, net	97		(16)
Net cash provided by operating activities	6,524		6,680
INVESTING ACTIVITIES
Capital expenditures	(3,729)		(3,628)
Proceeds from sale of property, plant and equipment and other assets	153		93
Other, net	12		(35)
Net cash used in investing activities	(3,564)		(3,570)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	4,361		3,707
Payments of long-term debt	(7,315)		(4,157)
Net proceeds on revolving line of credit	(100)		(300)
Dividends paid	(1,109)		(1,100)
Other, net	(87)		(61)
Net cash used in financing activities	(4,250)		(1,911)
Net (decrease) increase in cash, cash equivalents and restricted cash	(1,290)		1,199
Cash, cash equivalents and restricted cash at beginning of period	1,717		518
Cash, cash equivalents and restricted cash at end of period	$	427	1,717

Cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	406	1,690
Restricted cash	21		27
Total	$	427	1,717




Lumen Technologies, Inc.
OPERATING METRICS
(UNAUDITED)
(In thousands)

		December 31, 2020	September 30, 2020	December 31, 2019

Operating Metrics
Consumer broadband subscribers		4,544	4,563	4,678


	Consumer broadband subscribers are customers that purchase broadband connection service through their existing telephone lines, stand-alone telephone lines, or fiber-optic cables. Our methodology for counting our consumer broadband subscribers includes only those lines that we use to provide services to external customers and excludes lines used solely by us and our affiliates. It also excludes unbundled loops and includes stand-alone consumer broadband subscribers. We count lines when we install the service.

Description of Non-GAAP Metrics

Pursuant to Regulation G, the company is hereby providing definitions of non-GAAP financial metrics and reconciliations to the most directly comparable GAAP measures.

The following describes and reconciles those financial measures as reported under accounting principles generally accepted in the United States (GAAP) with those financial measures as adjusted by the items detailed below and presented in the accompanying news release. These calculations are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP. In keeping with its historical financial reporting practices, the company believes that the supplemental presentation of these calculations provides meaningful non-GAAP financial measures to help investors understand and compare business trends among different reporting periods on a consistent basis.

We use the term Special Items as a non-GAAP measure to describe items that impacted a period’s statement of operations for which investors may want to give special consideration due to their magnitude, nature or both. We do not call these items non-recurring because, while some are infrequent, others may recur in future periods.

Adjusted EBITDA ($) is defined as net income (loss) from the Statements of Operations before income tax (expense) benefit, total other income (expense), depreciation and amortization, share-based compensation expense and impairments.

Adjusted EBITDA Margin (%) is defined as Adjusted EBITDA divided by total revenue.

Management believes that Adjusted EBITDA and Adjusted EBITDA Margin are relevant and useful metrics to provide to investors, as they are an important part of Lumen’s internal reporting and are key measures used by Management to evaluate profitability and operating performance of Lumen and to make resource allocation decisions. Management believes such measures are especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA and Adjusted EBITDA Margin (and similarly uses these terms excluding Integration and Transformation Costs) to compare Lumen’s performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses. Adjusted EBITDA excludes non-cash stock compensation expense and impairments because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income taxes, and in our view constitutes an accrual-based measure that has the effect of excluding period-to-period changes in working capital and shows profitability without regard to the effects of capital or tax structure. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses primarily reflect the impact of historical capital investments, as opposed to the cash impacts of capital expenditures made in recent periods, which may be evaluated through cash flow measures. Adjusted EBITDA excludes the gain (or loss) on extinguishment and modification of debt and other, net, because these items are not related to the primary operations of Lumen.

There are material limitations to using Adjusted EBITDA as a financial measure, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from Lumen’s calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income taxes, depreciation and amortization, non-cash stock compensation expense, the gain (or loss) on extinguishment and modification of debt and net other income (expense). Adjusted EBITDA and Adjusted EBITDA Margin (either with or without Integration and Transformation Costs adjustments and Special Items) should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

Unlevered Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures, plus cash interest paid and less interest income, all as disclosed in the Statements of Cash Flows or the Statements of Operations. Management believes that Unlevered Cash Flow is a relevant metric to provide to investors, because it reflects the operational performance of Lumen and, measured over time, provides management and investors with a sense of the underlying business’ growth pattern and ability to generate cash. Unlevered Cash Flow excludes cash used for acquisitions and debt service and the impact of exchange rate changes on cash and cash equivalents balances.

There are material limitations to using Unlevered Cash Flow to measure Lumen’s cash performance as it excludes certain material items such as payments on and repurchases of long-term debt, interest income, cash interest expense and cash used to fund acquisitions. Comparisons of Lumen’s Unlevered Cash Flow to that of some of its competitors may be of limited usefulness since Lumen does not currently pay a significant amount of income taxes due to net operating loss carryforwards, and therefore, currently generates higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable, accounts payable, payroll and capital expenditures. Unlevered Cash Flow should not be used as a substitute for net change in cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows.

Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures as disclosed in the Statements of Cash Flows. Management believes that Free Cash Flow is a relevant metric to provide to investors, as it is an indicator of Lumen’s ability to generate cash to service its debt. Free Cash Flow excludes cash used for acquisitions, principal repayments and the impact of exchange rate changes on cash and cash equivalents balances.

There are material limitations to using Free Cash Flow to measure Lumen’s performance as it excludes certain material items such as principal payments on and repurchases of long-term debt and cash used to fund acquisitions. Comparisons of Lumen’s Free Cash Flow to that of some of its competitors may be of limited usefulness since Lumen does not currently pay a significant amount of income taxes due to net operating loss carryforwards, and therefore, generates higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to interest expense, accounts receivable, accounts payable, payroll and capital expenditures. Free Cash Flow should not be used as a substitute for net change in cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows.

Lumen Technologies, Inc.
Non-GAAP Integration and Transformation Costs and Special Items
(UNAUDITED)
($ in millions)

	Actual QTD			Actual YTD
Integration and Transformation Costs⁽¹⁾and Special Items Impacting Adjusted EBITDA	4Q20		4Q19	4Q20	4Q19
Consumer and other litigation	$	16	50	24	65
Total Special Items impacting Adjusted EBITDA	16		50	24	65
Plus: Integration and Transformation Costs	182		123	375	234
Total Integration and Transformation Costs and Special Items impacting Adjusted EBITDA	$	198	173	399	299



	Actual QTD			Actual YTD
Integration and Transformation Costs and Special Items Impacting Net Income (Loss)	4Q20		4Q19	4Q20	4Q19
Consumer and other litigation	$	16	50	24	65
Impairment of goodwill	2,642		—	2,642	6,506
Loss on sale of business	—		—	8	—
Loss (gain) on early debt retirement	27		(2)	109	(72)
Total Special Items impacting Net Income (loss)	2,685		48	2,783	6,499
Plus: Integration and Transformation Costs	182		123	375	234
Total Integration and Transformation Costs and Special Items impacting Net Income (loss)	2,867		171	3,158	6,733
Income tax effect of Integration and Transformation Costs and Special Items⁽²⁾	(56)		(42)	(125)	(55)
Total Integration and Transformation Costs and Special Items impacting Net Income (loss), net of tax	$	2,811	129	3,033	6,678

⁽¹⁾ Represents the cost of obtaining the synergy and transformations savings over 2019-2021 that the company initially discussed in its Feb. 13, 2019 earnings release.
⁽²⁾ Tax effect calculated using the annualized effective statutory tax rate, excluding any non-recurring discrete items, which was 24.5% and 24.3% for the 12 months ended Dec. 31, 2020 and 2019, respectively.




Lumen Technologies, Inc.
Non-GAAP Cash Flow Reconciliation
(UNAUDITED)
($ in millions)

	Actual QTD			Actual YTD
	4Q20		4Q19	4Q20		4Q19
Net cash provided by operating activities	$	1,682	1,909	$	6,524	6,680
Capital expenditures	(758)		(940)	(3,729)		(3,628)
Free Cash Flow	924		969	2,795		3,052
Cash interest paid	373		522	1,627		2,028
Interest income	—		(5)	(6)		(15)
Unlevered Cash Flow	$	1,297	1,486	$	4,416	5,065

Free Cash Flow	$	924	969	$	2,795	3,052
Add back: cash Integration and Transformation Costs ⁽¹⁾	77		53	289		223
Add back: Special Items ⁽¹⁾	3		—	47		1
Free Cash Flow excluding cash Integration and Transformation Costs and Special Items	$	1,004	1,022	$	3,131	3,276

Unlevered Cash Flow	$	1,297	1,486	$	4,416	5,065
Add back: cash Integration and Transformation Costs⁽¹⁾	77		53	289		223
Add back: Special Items⁽¹⁾	3		—	47		1
Unlevered Cash Flow excluding cash Integration and Transformation Costs and Special Items	$	1,377	1,539	$	4,752	5,289

⁽¹⁾ Refer to Non-GAAP Integration and Transformation Costs and Special Items table for details of the Integration and Transformation Costs and Special Items included above.




Lumen Technologies, Inc.
Adjusted EBITDA Non-GAAP Reconciliation
(UNAUDITED)
($ in millions)

	Actual QTD			Actual YTD
	4Q20		4Q19	4Q20		4Q19
Net (loss) income	$	(2,289)	223	$	(1,232)	(5,269)
Income tax expense	81		126	450		503
Total other expense, net	399		498	1,744		2,040
Depreciation and amortization expense	1,195		1,210	4,710		4,829
Share-based compensation expense	55		48	175		162
Goodwill impairment	2,642		—	2,642		6,506
Adjusted EBITDA	$	2,083	2,105	$	8,489	8,771

Add back: Integration and Transformation Costs⁽¹⁾	$	182	123	$	375	234
Add back: Special Items ⁽¹⁾	16		50	24		65
Adjusted EBITDA excluding Integration and Transformation Costs and Special Items	$	2,281	2,278	$	8,888	9,070

Total revenue	$	5,125	5,306	$	20,712	21,458

Adjusted EBITDA margin	40.6%		39.7%	41.0%		40.9%
Adjusted EBITDA margin excluding Integration and Transformation Costs and Special Items	44.5%		42.9%	42.9%		42.3%

⁽¹⁾ Refer to Non-GAAP Integration and Transformation Costs and Special Items table for details of the Integration and Transformation Costs and Special Items included above.

Outlook

To enhance the information in our outlook with respect to non-GAAP metrics, we are providing a range for certain GAAP measures that are components of the reconciliation of the non-GAAP metrics. The provision of these ranges is in no way meant to indicate that Lumen is explicitly or implicitly providing an outlook on those GAAP components of the reconciliation. In order to reconcile the non-GAAP financial metric to GAAP, Lumen has to use ranges for the GAAP components that arithmetically add up to the non-GAAP financial metric. While Lumen believes that it has used reasonable assumptions in connection with developing the outlook for its non-GAAP financial metrics, it fully expects that the ranges used for the GAAP components will vary from actual results. We will consider our outlook of non-GAAP financial metrics to be accurate if the specific non-GAAP metric is met or exceeded, even if the GAAP components of the reconciliation are different from those provided in an earlier reconciliation.

Lumen Technologies, Inc.
2021 OUTLOOK ^{(1) (2)}
(UNAUDITED)
($ in millions)

Adjusted EBITDA Outlook
Twelve Months Ended Dec. 31, 2021
	Range
	Low		High
Net income	$	1,625	1,975
Income tax expense	500		800
Total other expense	1,650		1,450
Depreciation and amortization expense	4,400		4,200
Share-based compensation expenses	225		175
Adjusted EBITDA	$	8,400	$	8,600


Free Cash Flow Outlook
Twelve Months Ended Dec. 31, 2021
	Range
	Low		High
Net cash provided by operating activities	$	6,600	6,500
Capital expenditures	(3,800)		(3,500)
Free Cash Flow	$	2,800	3,000

⁽¹⁾ For definitions of non-GAAP metrics and reconciliation to GAAP figures, see the above schedules and Lumen’s Investor Relations website.

⁽²⁾ Outlook measures in this chart (i) exclude the effects of Special Items, future changes in our operating or capital allocation plans, unforeseen changes in regulation, laws or litigation, and other unforeseen events or circumstances impacting our financial performance and (ii) speak only as of Feb. 10, 2021. See “Forward-Looking Statements.”

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SOURCE Lumen Technologies

February 10, 2021 4:19 pm

Moleculin Announces Full Exercise of Over-Allotment Option

Increases Gross Proceeds to Approximately $78 Million

PR Newswire

HOUSTON, Feb. 10, 2021 /PRNewswire/ — Moleculin Biotech, Inc., (Nasdaq: MBRX) (“Moleculin” or the “Company”), a clinical stage pharmaceutical company with a broad portfolio of drug candidates targeting highly resistant tumors and viruses, today announced that the underwriters of its public offering announced February 3, 2021 have exercised in full their option to purchase an additional 2,141,052 shares of common stock at the public offering price of $4.75 per share, less underwriting discount. Combining last week’s closing with the effect of the sale of shares pursuant to the over-allotment option, which was completed today, Moleculin sold a total of 16,414,736 shares of common stock in the public offering for gross proceeds of approximately $78.0 million, before deducting underwriting discount and offering expenses.

Oppenheimer & Co. Inc. acted as the sole book-running manager for the offering and Roth Capital Partners, LLC acted as the co-manager for the offering. Maxim Group LLC acted as financial advisor to the Company.

The securities described above were offered by the Company pursuant to a shelf registration statement on Form S-3 (No. 333-235686) originally filed December 23, 2019 with the Securities and Exchange Commission (SEC) and declared effective by the SEC on April 9, 2020. A final prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus may be obtained from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York 10004, by telephone at (212) 667-8055, or by email at [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Moleculin Biotech, Inc.

Moleculin Biotech, Inc. is a clinical stage pharmaceutical company focused on the development of a broad portfolio of oncology drug candidates for the treatment of highly resistant tumors and viruses. The Company’s clinical stage drugs are: Annamycin, a Next Generation Anthracycline, designed to avoid multidrug resistance mechanisms with little to no cardiotoxicity being studied for the treatment of relapsed or refractory acute myeloid leukemia, more commonly referred to as AML, WP1066, an Immune/Transcription Modulator capable of inhibiting p-STAT3 and other oncogenic transcription factors while also stimulating a natural immune response, targeting brain tumors, pancreatic cancer and hematologic malignancies, and WP1220, an analog to WP1066, for the topical treatment of cutaneous T-cell lymphoma. Moleculin is also engaged in preclinical development of additional drug candidates, including other Immune/Transcription Modulators, as well as WP1122 and related compounds capable of Metabolism/Glycosylation Inhibition.

For more information about the Company, please visit http://www.moleculin.com.

Forward-Looking Statements

Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Although Moleculin Biotech believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements as a result of various important factors, including: market conditions that may affect the timing, terms and conditions of the offering, our ability to satisfy the conditions to closing of the offering and other matters affecting our ability to consummate the offering on terms acceptable to us. Moleculin Biotech has attempted to identify forward-looking statements by terminology including ”believes,” ”estimates,” ”anticipates,” ”expects,” ”plans,” ”projects,” ”intends,” ”potential,” ”may,” ”could,” ”might,” ”will,” ”should,” ”approximately” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under Item 1A. “Risk Factors” in our most recently filed Form 10-K filed with the Securities and Exchange Commission (“SEC”) and updated from time to time in our Form 10-Q filings and in our other public filings with the SEC. Any forward-looking statements contained in this release speak only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Contacts

James Salierno / Carol Ruth
The Ruth Group
973-255-8361 / 917-859-0214
[email protected]
[email protected]
DC:82266802.1

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SOURCE Moleculin Biotech, Inc.

February 10, 2021 4:19 pm

MGM Resorts International Reports Fourth Quarter And Full Year 2020 Financial And Operating Results

– Recovery continues to be led by the Company’s U.S. Regional Operations

– The Company remains confident in the long-term recovery of the Las Vegas and Macau markets

– The Company’s liquidity at its domestic operations remains strong at $5.6 billion

– BetMGM continues to deliver on market share gains in the growing U.S. sports betting and iGaming market

PR Newswire

LAS VEGAS, Feb. 10, 2021 /PRNewswire/ — MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter and year ended December 31, 2020.

“We remain confident in the long-term recovery of our business. We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crisis accelerate and restrictions continue to ease.” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. “Our fourth quarter results delivered Adjusted Property EBITDAR improvements over the third quarter and our regional operations continued to generate margin growth.”

“We are engaged on pandemic response while staying focused on the future. This includes maintaining a strong balance sheet to seize opportunities and continuing to drive BetMGM, our U.S. sports betting and iGaming venture. BetMGM gained significant market share throughout 2020 while successfully launching in seven new states. We expect to be in 20 markets by the end of the year, and are very pleased with the January launches in Iowa, Michigan, and Virginia.”

“I look to the future with hope and gratitude for the strength and determination of our teams and communities, and the continued loyalty of our guests. Safety and well-being remain our highest, unwavering priorities.”

“I’m thrilled to play a role in the recovery and long-term growth of one of the most iconic global gaming entertainment brands,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “We remain focused on executing our strategic plan to drive margin expansion, deliver profitable growth and maximize shareholder value.”

Fourth Quarter 2020 Financial Highlights:

Consolidated Results

Consolidated net revenues decreased 53% compared to the prior year quarter to $1.5 billion, driven by lower business volume and travel activity due to the pandemic, hotel and other closures at certain properties, travel restrictions to our Macau resorts, and ongoing operating restrictions;
Consolidated operating loss was $364 million compared to consolidated operating income of $3.0 billion in the prior year quarter, which included a $2.7 billion gain related to the Bellagio real estate transaction;
Net loss attributable to MGM Resorts of $448 million compared to net income attributable to MGM Resorts of $2.0 billion in the prior year quarter, which included the $2.7 billion gain discussed above;
Diluted loss per share of $0.92 in the current quarter compared to diluted earnings per share of $3.91 in the prior year quarter;
Adjusted diluted earnings per share (“Adjusted EPS”)⁽¹⁾ was a loss per share of $0.90 in the current quarter compared to Adjusted EPS of $0.08 in the prior year quarter; and
Consolidated Adjusted EBITDAR⁽²⁾ of $97 million in the current quarter.

Financial Position & Liquidity

Cash and cash equivalents balance as of December 31, 2020 was $5.1 billion, which included $626 million at the MGP Operating Partnership and $345 million at MGM China;
Total liquidity at December 31, 2020 was $8.8 billion, which included $2.0 billion at the MGP Operating Partnership and $1.2 billion at MGM China, and was comprised of cash and cash equivalents and available capacity under the revolving credit facilities at the Company, MGP Operating Partnership and MGM China;
At December 31, 2020, principal amount of indebtedness outstanding was $12.5 billion, including $4.2 billion outstanding at the MGP Operating Partnership and $2.8 billion outstanding at MGM China; and
In December 2020, the MGP Operating Partnership redeemed approximately 23.5 million of MGP Operating Partnership units from MGM Resorts for $700 million, which represents the remaining amount under the agreement with MGP to purchase up to $1.4 billion of the MGP Operating Partnership units owned by MGM Resorts for cash.

Las Vegas Strip Resorts

Net revenues decreased 66% compared to the prior year quarter to $480 million due to the pandemic and related operational restrictions as well as mid-week hotel closures at Mandalay Bay, The Mirage, and Park MGM for a portion of the current quarter;
Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues⁽³⁾ decreased 67% compared to the prior year quarter to $483 million;
Adjusted Property EBITDAR decreased 86% compared to the prior year quarter to $54 million;
Adjusted Property EBITDAR margin of 11.2% in the current quarter, compared to 26.6% in the prior year quarter; and
Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR⁽²⁾ decreased 85% compared to the prior year quarter to $57 million.

Regional Operations

Net revenues decreased 34% compared to the prior year quarter to $595 million due to the pandemic and related operational restrictions including a partial quarter of operations at MGM Grand Detroit;
Adjusted Property EBITDAR decreased 30% to $159 million compared to $228 million in the prior year quarter; and
Adjusted Property EBITDAR margin of 26.6% in the current quarter, a 129 basis point increase compared to the prior year quarter.

MGM China

Net revenues decreased 58% compared to the prior year quarter to $305 million;
VIP Table Games Hold Adjusted MGM China Net Revenues⁽³⁾decreased 57% compared to the prior year quarter to $303 million;
Adjusted Property EBITDAR decreased 78% compared to the prior year quarter to $41 million; and
VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR⁽²⁾ decreased 76% compared to the prior year quarter to $43 million.

Adjusted Diluted Earnings Per Share

The following table reconciles diluted earnings (loss) per share (“EPS”) to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):

Three Months Ended December 31,	2020		2019
Diluted earnings (loss) per share	$	(0.92)	$	3.91
Property transactions, net		0.02		0.02
Gain on REIT transactions, net		—		(5.20)
Restructuring		0.01		0.01
Non-operating expense:
Loss on retirement of long-term debt		—		0.27
Foreign currency gain on MGM China senior notes		—		(0.01)
Change in fair value of MGP swaps		(0.01)		—
Items from unconsolidated affiliates:
Change in fair value of CityCenter swaps		—		(0.01)
Income tax impact on net income adjustments (1)		—		1.09
Adjusted diluted earnings (loss) per share	$	(0.90)	$	0.08


(1)	The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs.

The current quarter also included a non-cash income tax charge of $14 million resulting from an increase to the valuation allowance for foreign tax credits.

Full Year 2020 Financial Highlights:

Consolidated Results

Consolidated net revenues decreased 60% compared to the prior year to $5.2 billion;
Net loss attributable to MGM Resorts of $1.0 billion in 2020, which included a $1.5 billion gain related to the MGM Grand Las Vegas and Mandalay Bay real estate transaction, compared to net income of $2.0 billion in 2019, which included a $2.7 billion gain related to the Bellagio real estate transaction;
Diluted loss per share of $2.02 in 2020, compared to diluted earnings per share of $3.88 in 2019;
Adjusted EPS was a loss per share of $3.94 in 2020, compared to Adjusted EPS of $0.77 in 2019; and
Consolidated Adjusted EBITDAR loss of $148 million in 2020.

Las Vegas Strip Resorts

Net revenues decreased 61% compared to the prior year to $2.2 billion; and
Adjusted Property EBITDAR decreased 86% compared to the prior year to $232 million.

Regional Operations

Net revenues decreased 45% compared to the prior year to $2.0 billion; and
Adjusted Property EBITDAR decreased 65% compared to the prior year to $344 million.

MGM China

Net revenues decreased 77% compared to the prior year to $657 million; and
MGM China Adjusted Property EBITDAR loss of $194 million in 2020, compared to Adjusted Property EBITDAR of $735 million in 2019.

Adjusted Diluted Earnings Per Share

The following table reconciles EPS to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):

Twelve Months Ended December 31,	2020		2019
Diluted earnings (loss) per share	$	(2.02)	$	3.88
Preopening and start-up expenses		—		0.01
Property transactions, net		0.19		0.52
Gain on REIT transactions, net		(3.17)		(5.08)
October 1 settlement		0.10		—
CEO transition expense		0.09		—
Restructuring		0.05		0.17
Non-operating expense:
Loss on retirement of long-term debt		0.24		0.36
Foreign currency gain on MGM China senior notes		(0.01)		(0.01)
Items from unconsolidated affiliates:
CityCenter property transactions, net		—		(0.01)
Change in fair value of CityCenter swaps		0.02		0.03
Income tax impact on net income adjustments (1)		0.57		0.90
Adjusted diluted earnings (loss) per share	$	(3.94)	$	0.77


(1)	The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs.

The twelve months ended December 31, 2020 also included non-cash income tax charges totaling $42 million resulting from increases to the valuation allowance for foreign tax credits, $25 million resulting from an increase to the valuation allowance for Macau deferred tax assets, and non-cash income tax benefits of $7 million resulting from issued guidance related to deductions for employee dining and parking facilities.

Las Vegas Strip Resorts

Casino revenue for the fourth quarter of 2020 decreased 38% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts, due primarily to operational restrictions and reduced travel related to the pandemic.

The following table shows key gaming statistics for the Company’s Las Vegas Strip Resorts:

Three Months Ended December 31,	2020	2019	% change
	*(Dollars in millions)*
Table Games Drop	$512	$865	-41%
Table Games Win %	23.2%	21.1%
Slots Handle	$1,979	$3,416	-42%
Slots Hold %	9.5%	9.1%

Rooms revenue decreased 70% compared to the prior year quarter at the Company’s Las Vegas Strip Resorts due primarily to a decrease in REVPAR⁽⁴⁾ as a result of the pandemic and related operational restrictions as well as mid-week hotel closures at Mandalay Bay, The Mirage, and Park MGM for a portion of the current quarter.

The following table shows key hotel statistics for the Company’s Las Vegas Strip Resorts:

Three Months Ended December 31,	2020	2019	% change
Occupancy %⁽¹⁾	38%	89%
Average Daily Rate (ADR)	$138	$168	-17.7%
Revenue per Available Room (REVPAR)⁽¹⁾	$52	$150	-65.4%


(1)	Rooms that were out of service during the three months ended December 31, 2020 as a result of mid-week hotel closures due to decreased business volume as a result of the COVID-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR.

Regional Operations

Casino revenue for the fourth quarter of 2020 decreased 24% compared to the prior year quarter at the Company’s Regional Operations due primarily to a partial quarter of operations at MGM Grand Detroit and the ongoing impact of the pandemic.

The following table shows key gaming statistics for the Company’s Regional Operations:

Three Months Ended December 31,	2020	2019	% change
	*(Dollars in millions)*
Table Games Drop	$781	$1,068	-27%
Table Games Win %	20.0%	19.3%
Slots Handle	$4,511	$6,314	-29%
Slots Hold %	9.7%	9.6%

MGM China

Key fourth quarter results for MGM China include:

Net revenues decreased 58% compared to the prior year quarter to $305 million as a result of travel restrictions to Macau as well as other operational restrictions related to the pandemic;
VIP table games win decreased 74% compared to the prior year quarter;
Main floor table games win decreased 52% compared to the prior year quarter; and
Adjusted Property EBITDAR of $41 million compared to Adjusted Property EBITDAR of $185 million in the prior year quarter. The current quarter included $5 million of license fee expense compared to $13 million in the prior year quarter.

The following table shows key gaming statistics for MGM China:

Three Months Ended December 31,	2020	2019	% change
	*(Dollars in millions)*
VIP Table Games Turnover	$2,212	$8,452	-74%
VIP Table Games Win %	3.4%	3.4%
Main Floor Table Games Drop	$1,051	$2,105	-50%
Main Floor Table Games Win %	23.1%	24.0%

Corporate Expense

Corporate expense, including share-based compensation for corporate employees, decreased to $103 million in the fourth quarter of 2020 from $119 million in the prior year quarter, due primarily to a decrease in payroll costs and outside services.

Unconsolidated Affiliates

The following table summarizes information related to the Company’s share of operating income (loss) from unconsolidated affiliates:

Three Months Ended December 31,	2020		2019
	*(In thousands)*
CityCenter	$	(5,264)	$	22,749
MGP BREIT Venture		38,968		—
Other		(38,796)		(5,195)
	$	(5,092)	$	17,554

For the three months ended December 31, 2020, CityCenter’s net loss was $43 million and Adjusted EBITDA⁽⁵⁾ was $29 million compared to net income of $13 million and Adjusted EBITDA of $87 million, in the prior year quarter, primarily as a result of operational restrictions and reduced travel related to the pandemic.

MGM Growth Properties

During the fourth quarter of 2020, the Company made rent payments to MGM Growth Properties Operating Partnership LP (“MGP Operating Partnership”) in the amount of $207 million and received distributions of $84 million from the MGP Operating Partnership. In December 2020, the Board of Directors of MGM Growth Properties LLC (“MGP”) approved a quarterly dividend of $0.4875 per Class A share (which represents a dividend of $1.95 per share on an annualized basis) totaling $64 million, which was paid on January 15, 2021 to holders of record on December 31, 2020. The Company concurrently received a $72 million distribution attributable to its ownership of MGP Operating Partnership units.

MGM Resorts Dividend

On February 10, 2021, the Company’s Board of Directors approved a quarterly dividend of $0.0025 per share. The dividend will be payable on March 15, 2021 to holders of record on March 10, 2021.

Conference Call Details

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of the results followed by a question and answer session. In addition, supplemental slides will be posted prior to the start of the call on MGM’s Investor Relations website at http://investors.mgmresorts.com.

The call will be accessible via the Internet through https://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 1620586.

A replay of the call will be available through Wednesday, February 17, 2021. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 10151573. The call will be archived at https://investors.mgmresorts.com.

1. “Adjusted EPS” is diluted earnings or loss per share adjusted to exclude preopening and start-up expenses, property transactions, net, gain on REIT transactions, net, CEO transition expense, October 1 litigation settlement, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), gain or loss on retirement of long-term debt, foreign currency gain or loss related to MGM China’s U.S. dollar-denominated debt, mark-to-market adjustments related to MGP’s interest rate swaps, the Company’s share of CityCenter’s property transactions, net recorded within income (loss) from unconsolidated affiliates, and mark-to-market adjustments related to CityCenter’s interest rate swaps recorded within non-operating items from unconsolidated affiliates.

Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company’s continuing operations to assist investors in reviewing the Company’s operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company’s earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed in footnote 2 below, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company’s performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly-titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under “Adjusted Diluted Earnings Per Share” included in this release.

2. “Adjusted EBITDAR” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT transactions, net, CEO transition expense, October 1 litigation settlement, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, and property transactions, net.

“Adjusted Property EBITDAR” is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT transactions, net, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, property transactions, net, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment, and rent expense related to the master lease with MGM Growth Properties that eliminates in consolidation. The Company manages capital allocation, tax planning, stock compensation, and financing decisions at the corporate level. “Adjusted Property EBITDAR margin” is Adjusted Property EBITDAR divided by related segment net revenues.

“Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR” and “VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR” are supplemental non-GAAP financial measures, that, in addition to the reasons described above for the presentation of Adjusted Property EBITDAR, are presented to adjust for the impact of certain variances in table games and VIP table games’ win percentages compared to the mid-point of the expected ranges. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR is calculated by applying a win percentage of 30.0% for Baccarat and 21.0% for non-Baccarat games to the respective table games drops for the quarter, which represents the mid-point of the expected ranges of 25.0% to 35.0% for Baccarat and 19.0% to 23.0% for non-Baccarat at the Las Vegas Strip Resorts properties. VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR is based on applying a VIP Rolling Chip win percentage of 2.95% to the VIP Rolling Chip volume, which represents the mid-point of the expected normal range of 2.6% to 3.3% for MGM China. Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR are also adjusted for the gaming taxes, VIP commissions, bad debt expense, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted above to the respective gaming volumes.

Adjusted EBITDAR information is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDAR may be recurring in nature and should not be disregarded in evaluation of the Company’s earnings performance, it is useful to exclude such items when analyzing current results and trends. Also, management believes excluded items may not relate specifically to current trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company’s resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, management changed its non-GAAP measure as a result of the Bellagio real estate transaction in the fourth quarter of 2019 to exclude rent expense associated with triple net operating leases and ground leases. Management believes excluding rent expense associated with triple net operating leases and ground leases provides useful information to analysts, lenders, financial institutions, and investors when valuing the Company, as well as comparing the Company’s results to other gaming companies, without regard to differences in capital structure and leasing arrangements since the operations of other gaming companies may or may not include triple net operating leases or ground leases. However, as discussed herein, Adjusted EBITDAR should not be viewed as a measure of overall operating performance, considered in isolation, or as an alternative to net income, because this measure is not presented on a GAAP basis and excludes certain expenses, including the rent expense associated with the Company’s triple net operating and ground leases, and are provided for the limited purposes discussed herein.

Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR and VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR should not be construed as alternatives to operating income or net income, as indicators of the Company’s performance; or as alternatives to cash flows from operating activities, as measures of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes, real estate triple net lease and ground lease payments, and debt principal repayments, which are not reflected in Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR. Also, other companies in the gaming and hospitality industries that report Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR information may calculate Adjusted EBITDAR, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, or VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR in a different manner and such differences may be material.

A reconciliation of GAAP net income (loss) to Adjusted EBITDAR is included in the financial schedules in this release.

3. “Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues” and “VIP Table Games Hold Adjusted MGM China Net Revenues” are additional supplemental non-GAAP financial measures that are presented to adjust Las Vegas Strip Resorts net revenues and MGM China net revenues for the impact of certain variances in table games and VIP table games’ win percentages compared to the mid-point of the expected ranges, as described in footnote 2 above. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are also adjusted for the VIP commissions, discounts and other incentives that would have been incurred or avoided when applying the win percentages noted in footnote 2 above to the respective gaming volumes. Management believes Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues present consistent measures in providing period-to-period comparisons and are useful measures in assisting investors evaluating the Company’s operating performance. Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues should not be construed as alternatives to GAAP net revenues, as indicators of the Company’s performance, or as any other measure determined in accordance with generally accepted accounting principles. Reconciliations of GAAP net revenues to Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues and VIP Table Games Hold Adjusted MGM China Net Revenues are included in the financial schedules in this release.

4. REVPAR is hotel revenue per available room.

5. CityCenter non-GAAP Measure

“Adjusted EBITDA” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), and property transactions, net. Management utilizes Adjusted EBITDA as the primary profit measure for CityCenter. Adjusted EBITDA is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures. Management believes that while certain items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating CityCenter’s earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, such as restructuring costs and items further discussed above, may not relate specifically to current operating trends or be indicative of future results. Adjusted EBITDA should not be construed as alternatives to operating income or net income, as indicators of CityCenter’s performance; or as alternatives to cash flows from operating activities, as a measure of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. A reconciliation of GAAP net income (loss) to Adjusted EBITDA is included in the financial schedules in this release.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 29 unique hotel and destination gaming offerings in the United States and Macau, including some of the most recognizable resort brands in the industry such as Bellagio, MGM Grand, ARIA and Park MGM. The Company’s 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its “Focused on What Matters: Embracing Humanity and Protecting the Planet”

initiative

, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine’s World’s Most Admired Companies®. For more information, please visit us at

www.mgmresorts.com

. Please also connect with us @MGMResortsIntl on

Twitter

as well as

Facebook

and

Instagram

.

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company’s public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company’s expectations regarding future results, including the continued impact of COVID-19 on its results of operations and the duration of such impact, expectations regarding the Company’s liquidity position, long-term cost savings and the performance at re-opened properties, the Company’s ability to execute on its strategic plans, including positioning BetMGM as a leader in sports betting and iGaming, and its ability to return capital to shareholders (including the timing and amount of any share repurchases or dividends). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the continued impact of the COVID-19 pandemic on the Company’s business, the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS:

Investment Community
CATHERINE PARK
Executive Director of Investor Relations
(702) 693-8711 or [email protected]

News Media
BRIAN AHERN
Director of Communications
[email protected]

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Revenues:

Casino

963,827

1,630,052

2,871,720

6,517,759

Rooms

189,358

566,225

830,382

2,322,579

Food and beverage

143,243

520,274

696,040

2,145,247

Entertainment, retail and other

98,859

362,492

518,991

1,477,200

Reimbursed costs

98,249

106,093

244,949

436,887

1,493,536

3,185,136

5,162,082

12,899,672

Expenses:

Casino

504,410

917,543

1,701,783

3,623,899

Rooms

97,935

205,748

419,156

829,677

Food and beverage

140,239

407,323

674,118

1,661,626

Entertainment, retail and other

69,827

262,937

412,705

1,051,400

Reimbursed costs

98,249

106,093

244,949

436,887

General and administrative

531,170

557,453

2,122,333

2,101,217

Corporate expense

103,325

118,600

460,148

464,642

Preopening and start-up expenses

2,084

7,175

Property transactions, net

8,127

11,378

93,567

275,802

Gain on REIT transactions, net

–

(2,677,996)

(1,491,945)

(2,677,996)

Depreciation and amortization

298,697

331,438

1,210,556

1,304,649

1,852,012

242,601

5,847,454

9,078,978

Income from unconsolidated affiliates

(5,092)

17,554

42,938

119,521

Operating income (loss)

(363,568)

2,960,089

(642,434)

3,940,215

Non-operating income (expense):

Interest expense, net of amounts capitalized

(188,679)

(200,480)

(676,380)

(847,932)

Non-operating items from unconsolidated affiliates

(23,318)

(7,985)

(103,304)

(62,296)

Other, net

12,693

(129,298)

(89,361)

(183,262)

(199,304)

(337,763)

(869,045)

(1,093,490)

Income (loss) before income taxes

(562,872)

2,622,326

(1,511,479)

2,846,725

Benefit (provision) for income taxes

106,904

(556,376)

191,572

(632,345)

Net income (loss)

(455,968)

2,065,950

(1,319,907)

2,214,380

Less: Net (income) loss attributable to noncontrolling interests

8,363

(54,373)

287,183

(165,234)

Net income (loss) attributable to MGM Resorts International

(447,605)

2,011,577

(1,032,724)

2,049,146

Earnings (loss) per share:

Basic

(0.92)

3.94

(2.02)

3.90

Diluted

(0.92)

3.91

(2.02)

3.88

Weighted average common shares outstanding:

Basic

494,225

511,541

494,152

524,173

Diluted

494,225

515,096

494,152

527,645

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)


			December 31,		December 31,
			2020		2019

ASSETS
Current assets:
	Cash and cash equivalents		$	5,101,637	$	2,329,604
	Accounts receivable, net			316,502		612,717
	Inventories			88,323		102,888
	Income tax receivable			243,415		27,167
	October 1 litigation insurance receivable			–		735,000
	Prepaid expenses and other			200,782		200,317
		Total current assets		5,950,659		4,007,693

Property and equipment, net				14,632,091		18,285,955

Other assets:
	Investments in and advances to unconsolidated affiliates			1,447,043		822,366
	Goodwill			2,091,278		2,084,564
	Other intangible assets, net			3,643,748		3,826,504
	Operating lease right-of-use assets, net			8,286,694		4,392,481
	Other long-term assets, net			443,421		456,793
		Total other assets		15,912,184		11,582,708
			$	36,494,934	$	33,876,356


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
	Accounts payable		$	142,523	$	235,437
	Construction payable			30,149		74,734
	Accrued interest on long-term debt			138,832		122,250
	October 1 litigation liability			–		735,000
	Other accrued liabilities			1,545,079		2,024,002
		Total current liabilities		1,856,583		3,191,423

Deferred income taxes, net				2,153,016		2,106,506
Long-term debt, net				12,376,684		11,168,904
Other long-term obligations				472,084		363,588
Operating lease liabilities				8,390,117		4,277,970
Redeemable noncontrolling interest				66,542		105,046
Stockholders’ equity:
	Common stock, $.01 par value: authorized 1,000,000,000 shares,
	issued and outstanding 494,317,865 and 503,147,632 shares			4,943		5,031
	Capital in excess of par value			3,439,453		3,531,099
	Retained earnings			3,091,007		4,201,337
	Accumulated other comprehensive loss			(30,677)		(10,202)
		Total MGM Resorts International stockholders’ equity		6,504,726		7,727,265
	Noncontrolling interests			4,675,182		4,935,654
		Total stockholders’ equity		11,179,908		12,662,919
			$	36,494,934	$	33,876,356

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA – NET REVENUES

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Las Vegas Strip Resorts

479,750

1,429,071

2,245,785

5,831,051

Regional Operations

595,421

899,868

1,967,171

3,549,784

MGM China

304,751

727,374

656,703

2,905,422

Management and other operations

113,614

128,823

292,423

613,415

1,493,536

3,185,136

5,162,082

12,899,672

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA – ADJUSTED PROPERTY EBITDAR and ADJUSTED EBITDAR

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Las Vegas Strip Resorts

53,911

379,851

232,188

1,643,122

Regional Operations

158,621

228,155

343,990

969,866

MGM China

40,892

185,126

(193,832)

734,729

Unconsolidated resorts (1)

(46,769)

17,567

(104,890)

122,598

Management and other operations

(4,361)

(1,081)

(42,828)

24,773

Stock compensation

(26,897)

(23,009)

(79,954)

(68,289)

Corporate

(78,047)

(104,254)

(303,171)

(410,703)

97,350

(148,497)

(1) Represents the Company’s share of operating income (loss) excluding investments in real estate ventures, adjusted for the effect of certain basis differences.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDAR

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Net income (loss) attributable to MGM Resorts International

(447,605)

2,011,577

(1,032,724)

2,049,146

Plus: Net income (loss) attributable to noncontrolling interests

(8,363)

54,373

(287,183)

165,234

Net income (loss)

(455,968)

2,065,950

(1,319,907)

2,214,380

(Benefit) provision for income taxes

(106,904)

556,376

(191,572)

632,345

Income (loss) before income taxes

(562,872)

2,622,326

(1,511,479)

2,846,725

Non-operating (income) expense:

Interest expense, net of amounts capitalized

188,679

200,480

676,380

847,932

Other, net

10,625

137,283

192,665

245,558

199,304

337,763

869,045

1,093,490

Operating income (loss)

(363,568)

2,960,089

(642,434)

3,940,215

Preopening and start-up expenses

2,084

7,175

Property transactions, net

8,127

11,378

93,567

275,802

Gain on REIT transactions, net

–

(2,677,996)

(1,491,945)

(2,677,996)

Depreciation and amortization

298,697

331,438

1,210,556

1,304,649

CEO transition expense

–

44,401

–

October 1 litigation settlement

–

49,000

–

Restructuring

6,143

5,560

26,025

92,139

Triple net operating lease and ground lease rent expense

189,596

50,346

710,683

74,656

Income from unconsolidated affiliates related to real estate ventures

(41,678)

(544)

(148,434)

(544)

Adjusted EBITDAR

97,350

(148,497)

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF LAS VEGAS STRIP RESORTS NET REVENUES AND LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDAR TO TABLE GAMES HOLD

ADJUSTED LAS VEGAS STRIP RESORTS NET REVENUES AND TABLE GAMES HOLD ADJUSTED LAS VEGAS STRIP RESORTS ADJUSTED PROPERTY EBITDAR

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Las Vegas Strip Resorts net revenues

479,750

1,429,071

2,245,785

5,831,051

Hold adjustment (1)

3,582

14,851

8,733

30,733

Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues

483,332

1,443,922

2,254,518

5,861,784

Las Vegas Strip Resorts Adjusted Property EBITDAR

53,911

379,851

232,188

1,643,122

Hold adjustment (2)

3,052

12,608

7,324

26,120

Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR

56,963

392,459

239,512

1,669,242

(1) For the Las Vegas Strip Resorts, hold adjustment represents the estimated incremental table games win or loss had the Company’s win percentage equaled the mid-point of the expected normal range of 25.0% to 35.0% for Baccarat and 19.0% to 23.0% for non-Baccarat. Amounts include estimated discounts and other incentives related to increases or decreases in table games win.

(2) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental table games win or loss calculated in (1) above.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF MGM CHINA NET REVENUES AND MGM CHINA ADJUSTED PROPERTY EBITDAR TO VIP TABLE GAMES HOLD ADJUSTED MGM CHINA NET

REVENUES AND VIP TABLE GAMES HOLD ADJUSTED MGM CHINA ADJUSTED PROPERTY EBITDAR

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

MGM China net revenues

304,751

727,374

656,703

2,905,422

Hold adjustment (3)

(1,728)

(24,227)

6,967

(73,353)

VIP Table Games Hold Adjusted MGM China Net Revenues

303,023

703,147

663,670

2,832,069

MGM China Adjusted Property EBITDAR

40,892

185,126

(193,832)

734,729

Hold adjustment (4)

1,725

(8,525)

8,371

(28,318)

VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR

42,617

176,601

(185,461)

706,411

(3) For MGM China, hold adjustment represents the estimated incremental VIP table games win or loss related to VIP Rolling Chip volume play had the Company’s win percentage equaled the mid-point of the expected normal range of 2.6% to 3.3%. Amounts include estimated commissions and other incentives related to increases or decreases in VIP table games win.

(4) These amounts include estimated incremental expenses (gaming taxes and bad debt expense) that would have been incurred or avoided on the incremental VIP table games win or loss calculated in (3) above.

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA – NET REVENUES AND ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Net revenues

128,168

301,646

523,157

1,294,861

Adjusted EBITDA

29,435

86,529

95,072

415,249

CITYCENTER HOLDINGS, LLC

SUPPLEMENTAL DATA – HOTEL STATISTICS

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Occupancy %

33.5%

90.3%

50.3%

91.6%

ADR (1)

$215

$255

$249

$256

REVPAR (1)

$72

$230

$125

$234

(1) Rooms that were out of service during the three and twelve months ended December 31, 2020 as a result of property closures due to the COVID-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR.

CITYCENTER HOLDINGS, LLC

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

2019

2020

2019

Net income (loss)

(42,918)

13,064

(221,506)

69,143

Non-operating (income) expense:

Interest expense, net of amounts capitalized

19,545

22,331

78,876

92,108

Other, net

(4,327)

(7,070)

14,439

26,905

15,218

15,261

93,315

119,013

Operating income (loss)

(27,700)

28,325

(128,191)

188,156

Property transactions, net

952

(1,707)

(3,874)

(11,059)

Depreciation and amortization

56,183

58,798

225,926

230,911

Restructuring

–

1,113

1,211

7,241

Adjusted EBITDA

29,435

86,529

95,072

415,249

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SOURCE MGM Resorts International

February 10, 2021 4:18 pm

Aethlon Medical Announces Third Quarter Financial Results and Provides Corporate Update

PR Newswire

SAN DIEGO, Feb. 10, 2021 /PRNewswire/ — Aethlon Medical, Inc. (Nasdaq: AEMD), a medical device therapeutic company focused on developing products to diagnose and treat life and organ threatening diseases, today reported financial results for its third quarter ended December 31, 2020 and provided an update on recent developments.

Company Updates

Aethlon Medical, Inc. (Company or Aethlon) is continuing the development of its proprietary Hemopurifier®, which is a first in class therapeutic device designed for the single use depletion of cancer-promoting exosomes and circulating viruses. The Hemopurifier has previously been designated a Breakthrough Device by the FDA for the treatment of glycosylated viruses, including Ebola and other hemorrhagic fever viruses, and in late 2018 was additionally designated as a Breakthrough Device “…for the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy, and with cancer types in which exosomes have been shown to participate in the development or severity of the disease….”.

Aethlon has initiated its first clinical trial in patients with advanced and metastatic cancers. Under an Investigational Device Exemption (IDE) application approved by the FDA in October 2019, this trial, termed an Early Feasibility Study (EFS – the device equivalent of a phase 1 study), in patients with advanced and/or metastatic head and neck cancer is being run at the University of Pittsburgh Medical Center Hillman Cancer Center in Pittsburgh, PA. The EFS is designed to enroll 10-12 subjects and will investigate the combination of the Hemopurifier with standard of care pembrolizumab (Keytruda®) in the front line setting. The first patient in this study has now completed the Hemopurifier treatments required by the protocol without incident.

As previously disclosed, the FDA has also approved an amendment to the Company’s open IDE for the Hemopurifier in life threatening viral infections, to allow for the treatment of patients with SARS-CoV-2/COVID-19 infection. This will allow for up to 40 of these patients to be treated under a new Feasibility Study protocol at up to 20 clinical sites in the U.S. The first sites for this trial have received IRB approval and the Company is currently recruiting additional sites.

The Company has also treated a patient under an emergency use single patient pathway that allows for the use of an investigational product in critically ill patients who have essentially failed other treatment options. This patient successfully received eight Hemopurifier treatments of six hours each over nine days and subsequently was transferred from the hospital to a rehab facility for patients post critical illness for rehabilitation on joints and muscles after the long period of paralysis.

In January 2021, Aethlon hired two senior executives, Guy Cipriani as Senior Vice President, Chief Business Officer, and Steven LaRosa, M.D., as Chief Medical Officer. Mr. Cipriani will oversee business development and partnerships, while also contributing to fundraising and corporate development. Dr. LaRosa will be responsible for the clinical development of Aethlon’s Hemopurifier, including leading clinical operations and regulatory strategy.

Financial Results for the Third Quarter Ended December 31, 2020

At December 31, 2020, Aethlon Medical had a cash balance of approximately $12.1 million.

The Company recorded approximately $625,000 in government contract revenue in the three months ended December 31, 2020, compared to approximately $413,000 in the three months ended December 31, 2019.

Consolidated operating expenses for the three months ended December 31, 2020 were approximately $3.07 million, compared to approximately $1.29 million for the three months ended December 31, 2019. This increase of approximately $1.78 million, or 137.9%, in the 2020 period was due to an increase in payroll and related expenses of approximately $1.12 million, in general and administrative expenses of approximately $646,000 and in professional fees of approximately $15,000.

The $1.12 million increase in payroll and related expenses was due to the combination of an $842,000 increase in cash-based compensation expense and a $275,000 increase in stock-based compensation expense. The largest factor in the cash-based compensation increase was a result of recording an aggregate of $593,000 related to severance costs associated with the separation agreement of the Company’s former CEO in the third quarter. Additional factors were a $125,000 increase in year-end bonus payments, increased headcount and salary increases.

The $646,000 increase in general and administrative expenses was primarily due to a $361,000 increase in clinical trial expenses, a $133,000 increase in subcontractor expenses associated with government contracts and grants, a $130,000 increase in lab supplies in connection with the ongoing effort to continue to build an inventory of Hemopurifiers for the Company’s clinical trials, and a $40,000 increase in insurance expenses.

The $15,000 increase in professional fees was primarily due to a $28,000 increase in contract labor, predominantly research scientists hired on a consulting basis, and a $23,000 increase in legal fees, which were partially offset by a $35,000 decrease in accounting fees.

Other expense was nominal during the three months ended December 31, 2020 and 2019.

As a result of the changes in revenues and expenses noted above, the Company’s net loss before noncontrolling interests increased to approximately $2.44 million for the three months ended December 31, 2020, from approximately $821,000 for the three months ended December 31, 2019.

The unaudited condensed consolidated balance sheet for December 31, 2020 and the unaudited condensed consolidated statements of operations for the three and nine month periods ended December 31, 2020 and 2019 follow at the end of this release.

Conference Call

The Company will hold a conference call today, Wednesday, February 10, 2021 at 4:30 p.m. Eastern Time to review financial results and recent corporate developments. Following management’s formal remarks, there will be a question and answer session.

Interested parties can register for the conference by navigating to https://dpregister.com/sreg/10152271/e275c301d3.
Please note that registered participants will receive their dial in number upon registration.

Interested parties without internet access or unable to pre-register may dial in by calling:
PARTICIPANT DIAL IN (TOLL FREE): 1-844-836-8741
PARTICIPANT INTERNATIONAL DIAL IN: 1-412-317-5442

All callers should ask for the Aethlon Medical, Inc. conference call.

A replay of the call will be available approximately one hour after the end of the call through February 17, 2021. The replay can be accessed via Aethlon Medical’s website or by dialing 1-877-344-7529 (domestic) or 1-412-317-0088 (international) or Canada Toll Free at 1-855-669-9658. The replay conference ID number is 10152271.

About Aethlon and the Hemopurifier®

Aethlon is focused on addressing unmet needs in global health. The Aethlon Hemopurifier is a clinical-stage immunotherapeutic device designed to combat cancer and life-threatening viral infections. In cancer, the Hemopurifier is designed to deplete the presence of circulating tumor-derived exosomes that promote immune suppression.

The Hemopurifier® is an FDA designated “Breakthrough Device” related to the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy, and with cancer types in which exosomes have been shown to participate in the development or severity of the disease. Under an Investigational Device Exemption (IDE) application, in October 2019, the FDA approved an Early Feasibility Study (EFS), which is the device equivalent of a Phase 1 clinical trial for a drug or biologic, in a single center, open label trial in 10 to 12 subjects. The study is evaluating the HEMOPURIFIER® for reducing cancer-associated exosomes prior to the administration of standard-of-care pembrolizumab (KEYTRUDA®), which is a first-line therapy for patients with recurrent and/or metastatic squamous cell carcinoma of the head and neck. The EFS is being conducted at the University of Pittsburgh Medical Center Hillman Cancer Center.

The Hemopurifier also holds a Breakthrough Device designation related to life-threatening viruses that are not addressed with approved therapies. In June 2020, the FDA approved an amendment to the Company’s existing open IDE for the Hemopurifier in life threatening viral infections, to allow for the treatment of patients with SARS-CoV-2/COVID-19 infection. This will allow for up to 40 of these patients to be treated under a new Early Feasibility Study protocol at up to 20 clinical sites in the U.S.

Aethlon also owns 80% of Exosome Sciences, Inc., which is focused on the discovery of exosomal biomarkers to diagnose and monitor cancer and neurological disease progression. Additional information can be found online at www.AethlonMedical.com and www.ExosomeSciences.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “will,” “projections,” “estimate,” “potentially” or similar expressions constitute forward-looking statements. Such forward-looking statements are subject to significant risks and uncertainties and actual results may differ materially from the results anticipated in the forward-looking statements. These forward-looking statements are based upon Aethlon’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Factors that may contribute to such differences include, without limitation, the Company’s ability to enroll patients in and successfully complete trials in the Early Feasibility Studies in head and neck cancer and in COVID-19 patients, the Company’s ability to successfully treat patients under any Emergency Use pathway, the Company’s ability to successfully complete development of its Hemopurifier, the Company’s ability to raise additional funds, and other potential risks. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. Additional factors that could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020, and in the Company’s other filings with the Securities and Exchange Commission, including its quarterly Reports on Form 10-Q. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except as may be required by law, the Company does not intend, nor does it undertake any duty, to update this information to reflect future events or circumstances.

Company Contact:

Jim Frakes, CFO
[email protected]

Media Contact:
Tony Russo, Ph.D.
Russo Partners, LLC
[email protected]
212-845-4251

Investor Contact:
Susan Noonan
S.A. Noonan Communications, LLC
[email protected]
212-966-3650

AETHLON MEDICAL, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheet


ASSETS
		December 31, 2020	March 31, 2020

CURRENT ASSETS
	Cash	$12,131,593	$9,604,780
	Accounts receivable	114,849	206,729
	Prepaid expenses	75,829	229,604

TOTAL CURRENT ASSETS		12,322,271	10,041,113

	Property and equipment, net	166,751	140,484
	Right-of-use lease asset	64,750	136,426
	Patents, net	57,092	57,504
	Restricted cash	46,726	–
	Deposits	12,159	12,159

TOTAL NONCURRENT ASSETS		347,478	346,573

	TOTAL ASSETS	$12,669,749	$10,387,686


LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
	Accounts payable	175,422	285,036
	Due to related parties	131,746	111,707
	Deferred revenue	–	100,000
	Lease liability, current portion	67,698	98,557
	Other current liabilities	860,697	472,420

TOTAL CURRENT LIABILITIES		1,235,563	1,067,720

NONCURRENT LIABILITIES
	Convertible notes payable, net	–	42,540
TOTAL NONCURRENT LIABILITIES		–	42,540

TOTAL LIABILITIES		1,235,563	1,110,260

COMMITMENTS AND CONTINGENCIES

EQUITY

	Common stock, par value of $0.001, 30,000,000 shares authorized; 12,123,524 and 9,366,873 issued and outstanding	12,125	9,368
	Additional-paid in capital	129,207,491	121,426,563
	Accumulated deficit	(117,650,120)	(112,026,381)

TOTAL STOCKHOLDERS’ EQUITY BEFORE NONCONTROLLING INTERESTS		11,569,496	9,409,550

Noncontrolling interests		(135,310)	(132,124)

TOTAL STOCKHOLDERS’ EQUITY		11,434,186	9,277,426

	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$12,669,749	$10,387,686

AETHLON MEDICAL, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations
For the three and nine month periods ended December 31, 2020 and 2019



	Three Months	Three Months	Nine Months	Nine Months
	Ended 12/31/20	Ended 12/31/19	Ended 12/31/20	Ended 12/31/19

Government contract revenue	$624,871	$413,458	$624,871	$443,458

OPERATING COSTS AND EXPENSES
Professional fees	624,979	609,933	1,845,659	1,979,848
Payroll and related	1,523,650	406,421	2,520,805	1,609,942
General and administrative	919,830	273,510	1,883,802	998,465
	3,068,459	1,289,864	6,250,266	4,588,255

OPERATING LOSS	(2,443,588)	(876,406)	(5,625,395)	(4,144,797)

OTHER EXPENSE
Loss on debt extinguishment	–		–	447,011
Gain on share for warrant exchanges	–	(55,593)	–	(51,190)
Interest and other debt expenses	802	126	1,530	54,232
	802	(55,467)	1,530	450,053

NET LOSS	$(2,444,390)	$(820,939)	$(5,626,925)	$(4,594,850)

Loss attributable to noncontrolling interests	(1,498)	(1,358)	(3,186)	(3,808)

NET LOSS ATTRIBUTABLE TO AETHLON MEDICAL, INC.	$(2,442,892)	$(819,581)	$(5,623,739)	$(4,591,042)

Basic and diluted net loss available to common stockholders per share	$ (0.20)	$ (0.28)	$ (0.50)	$ (2.52)

Weighted average number of common shares outstanding	12,093,361	2,887,883	11,265,725	1,821,557

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SOURCE Aethlon Medical, Inc.

February 10, 2021 4:18 pm

Lear Declares Quarterly Cash Dividend

PR Newswire

SOUTHFIELD, Mich., Feb. 10, 2021 /PRNewswire/ — Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today announced that its Board of Directors has declared a quarterly cash dividend of $0.25 per share on the Company’s common stock. The dividend is payable on March 23, 2021, to shareholders of record at the close of business on March 4, 2021.

Lear also announced the date for its 2021 Annual Stockholders Meeting, which will be held on May 20, 2021, at 9:00 a.m. EDT, via a virtual web conference. The record date for determining eligibility to vote at the 2021 Annual Meeting is March 26, 2021.

About Lear Corporation

Lear, a global automotive technology leader in Seating and E-Systems, enables superior in-vehicle experiences for consumers around the world. Our diverse team of talented employees in 38 countries is driven by a commitment to innovation, operational excellence, and sustainability. Lear is Making every drive better™ by providing the technology for safer, smarter, and more comfortable journeys. Lear, headquartered in Southfield, Michigan, serves every major automaker in the world and ranks 166 on the Fortune 500. Further information about Lear is available at lear.com, or follow us on Twitter @LearCorporation.

View original content to download multimedia:http://www.prnewswire.com/news-releases/lear-declares-quarterly-cash-dividend-301226221.html

SOURCE Lear Corporation

February 10, 2021 4:18 pm

Equity Residential Reports Full Year 2020 Results

Equity Residential Reports Full Year 2020 Results

Provides Full Year 2021 Guidance

CHICAGO–(BUSINESS WIRE)–
Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2020 and has posted a Q4 2020 Management Presentation to its website as referenced below.

Fourth Quarter 2020 Results

All per share results are reported as available to common shares/units on a diluted basis.


	Quarter Ended December 31,
	2020		2019		$ Change			% Change
Earnings Per Share (EPS)	$	0.68	$	0.77	$	(0.09	)		(11.7	%)
Funds from Operations (FFO) per share	$	0.73	$	0.86	$	(0.13	)		(15.1	%)
Normalized FFO per share	$	0.76	$	0.91	$	(0.15	)		(16.5	%)


	Year Ended December 31,
	2020		2019		$ Change			% Change
Earnings Per Share (EPS)	$	2.45	$	2.60	$	(0.15	)		(5.8	%)
Funds from Operations (FFO) per share	$	3.21	$	3.39	$	(0.18	)		(5.3	%)
Normalized FFO per share	$	3.26	$	3.49	$	(0.23	)		(6.6	%)

“We are optimistic that 2021 will be a year of recovery for Equity Residential. Operating trends are improving and we expect that our financial results will bottom out in the first half of 2021,” said Mark J. Parrell, Equity Residential’s President and CEO. “Our affluent, well-employed resident base remains drawn to our nation’s great cities and we expect demand to accelerate and pricing to continue to improve as vaccines are widely administered and cities become more active. Many thanks to our colleagues across the country for their hard work in 2020 under very tough conditions.”

Highlights

The Company has seen a 0.9% improvement in same store Physical Occupancy since the end of the third quarter 2020 (94.2% on September 30, 2020 to 95.1% on January 31, 2021).
Pricing Trends stabilized in November 2020 and modestly improved in December 2020 and January 2021 for the first time since the beginning of the pandemic. See the Management Presentation referenced below for details.
The Company collected approximately 97% of its expected Residential revenues in the fourth quarter of 2020.
The Company used the proceeds from the sale described below as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. During 2020, the Company paid down nearly $1.0 billion in the aggregate in debt, further strengthening its balance sheet.
The Company sold Vantage Pointe, a 679-unit apartment property located in downtown San Diego, for a sale price of approximately $312.5 million at a Disposition Yield of 4.1%, generating an Unlevered IRR of 8.8% over the Company’s ten-year ownership period.

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2020 compared to the same periods of 2019 are due primarily to lower depreciation expense in the current periods as a result of the Company’s disposition activity, the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in FFO for both the quarter and year ended December 31, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

	Positive/(Negative) Impact
	Fourth Quarter 2020 vs. Fourth Quarter 2019			Full Year 2020 vs. Full Year 2019
Residential same store Net Operating Income (NOI)	$	(0.15	)	$	(0.22	)
Non-Residential same store NOI ⁽¹⁾		(0.01	)		(0.08	)
Lease-Up NOI	–				0.01
2020 and 2019 transaction activity impact on NOI, net		(0.03	)		(0.06	)
Interest expense, net		0.03			0.11
Other items		0.01			0.01
Net	$	(0.15	)	$	(0.23	)

(1)	Non-Residential same store NOI was negatively impacted by a $(0.03) per share non-cash write-off of Non-Residential straight-line lease receivables during the year ended December 31, 2020, primarily in the third quarter of 2020.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 30 and 31 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release. Non-Residential operations account for approximately 2.7% of total revenues for the year ended December 31, 2020. The table below reflects same store Residential only results for the fourth quarter 2020 to fourth quarter 2019 comparison, which includes 76,535 apartment units, as well as for the year ended December 31, 2020 to year ended December 31, 2019 comparison, which includes 73,585 apartment units. The Company’s Physical Occupancy was 94.2% compared to 96.1% for the fourth quarter of 2020 and 2019, respectively, and 95.1% compared to 96.4% for the full year of 2020 and 2019, respectively.

	Fourth Quarter 2020 vs. Fourth Quarter 2019	Full Year 2020 vs. Full Year 2019
Revenues	(8.2%)	(2.9%)
Expenses	2.8%	2.1%
NOI	(12.9%)	(5.0%)

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis. See pages 12 and 32 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

	Fourth Quarter 2020 vs. Fourth Quarter 2019			Full Year 2020 vs. Full Year 2019
	% Change			% Change
Same Store Residential Revenues-
comparable period
Lease rates		(4.4	%)		(0.4	%)
Leasing Concessions ⁽¹⁾		(1.2	%)		(0.4	%)
Vacancy loss		(1.6	%)		(1.3	%)
Bad Debt, Net ⁽²⁾		(1.6	%)		(1.2	%)
Other ⁽³⁾		0.6	%		0.4	%
Same Store Residential Revenues-
current period		(8.2	%)		(2.9	%)

(1)	Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.
(2)	Reduction in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.
(3)	Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis. Statistics for January 2021 are preliminary and Blended Rate is inclusive of Leasing Concessions.

	% of Same Store Residential Revenues	Physical Occupancy on:			Percentage of Residents Renewing by Month			Blended Rate
	Dec YTD 2020	Sep 30, 2020	Dec 31, 2020	Jan 31, 2021	Jan 2020	Dec 2020	Jan 2021 (1)	Q4 2020	Dec 2020	Jan 2021 (1)
Suburban (2)	44%	95.9%	95.8%	96.1%	58%	58%	55%	(7.0%)	(7.3%)	(7.3%)
Urban Other (2)(3)	33%	94.3%	94.6%	95.3%	55%	47%	45%	(13.4%)	(14.3%)	(14.7%)
Urban Core (2)(4)	23%	89.2%	90.2%	91.8%	63%	49%	51%	(25.0%)	(26.6%)	(25.0%)
Total	100%	94.2%	94.4%	95.1%	58%	53%	52%	(13.0%)	(13.9%)	(14.1%)

(1)	January 2021 results are preliminary.
(2)	The Company defines Urban submarkets as those with 3,500 or more households per square mile with the remainder defined as Suburban.
(3)	Includes all other Urban properties excluding Urban Core.
(4)	Includes Urban properties in Manhattan/Brooklyn, Downtown Boston/Cambridge and Downtown San Francisco.

Investment Activity

The Company sold a 679-unit apartment property in downtown San Diego during the fourth quarter of 2020 for a sale price of approximately $312.5 million at a Disposition Yield of 4.1% generating an Unlevered IRR of 8.8%. The Company also sold two land parcels for an aggregate sale price of approximately $55.5 million. The Company did not acquire any assets during the fourth quarter of 2020.

During the full year of 2020, the Company acquired a 158-unit apartment property in suburban Seattle for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. Also, during the full year of 2020, the Company sold six properties, consisting of 2,231 apartment units, for an aggregate sales price of approximately $1.07 billion at a weighted average Disposition Yield of 4.5%, generating an Unlevered IRR of 10.2%.

Capital Markets Activity

In December 2020, the Company used the proceeds from the property sale described above as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. As a result, the Company incurred approximately $39.1 million in debt extinguishment charges, of which $25.8 million represented a cash charge and the remaining $13.3 million corresponded to write-offs of unamortized debt costs. These charges impacted the Company’s 2020 Earnings Per Share and Funds from Operations per share but did not impact the Company’s Normalized Funds from Operations per share.

First Quarter 2021 Guidance

The Company has established guidance ranges for the first quarter of 2021 EPS, FFO per share and Normalized FFO per share as listed below:

		Q1 2021 Guidance
EPS		$0.31 to $0.35
FFO per share		$0.65 to $0.69
Normalized FFO per share		$0.65 to $0.69

The difference between the fourth quarter 2020 actual EPS of $0.68 and the first quarter of 2021 EPS guidance midpoint of $0.33 is due primarily to lower expected property sale gains, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the fourth quarter 2020 actual FFO of $0.73 per share and the first quarter of 2021 FFO guidance midpoint of $0.67 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the fourth quarter 2020 actual Normalized FFO of $0.76 per share and the first quarter of 2021 Normalized FFO guidance midpoint of $0.67 per share is due primarily to:

	Positive/(Negative) Impact
	First Quarter 2021 vs. Fourth Quarter 2020
Same Store NOI	$	(0.07	)
2020 transaction activity impact on NOI, net		(0.01	)
Interest expense, net		0.03
Corporate overhead ⁽¹⁾		(0.03	)
Other items		(0.01	)
Net	$	(0.09	)

(1)	Corporate overhead includes property management and general and administrative expenses.

Full Year 2021 Guidance

The Company has provided guidance for its full year 2021 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

Same Store (includes Residential and Non-Residential):
Physical Occupancy		94.8% to 95.8%
Revenue change		(9.0%) to (7.0%)
Expense change		3.0% to 4.0%
NOI change		(15.0%) to (12.0%)

EPS		$2.55 to $2.75
FFO per share		$2.58 to $2.78
Normalized FFO per share		$2.60 to $2.80

The difference between the Company’s full year 2020 actual EPS of $2.45 and the full year 2021 EPS guidance midpoint of $2.65 is due primarily to higher expected property sale gains, lower expected depreciation expense, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the Company’s full year 2020 actual FFO of $3.21 per share and the full year 2021 FFO guidance midpoint of $2.68 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the Company’s full year 2020 actual Normalized FFO of $3.26 per share and the full year 2021 Normalized FFO guidance midpoint of $2.70 per share is due primarily to:

	Positive/(Negative) Impact
	Full Year 2021 vs. Full Year 2020
Same Store NOI	$	(0.60	)
2021 and 2020 transaction activity impact on NOI, net		(0.07	)
Interest expense, net		0.14
Other items, including corporate overhead		(0.03	)
Net	$	(0.56	)

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 304 properties consisting of 77,889 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Thursday, February 11, 2021 at 10:00 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the web cast link and the presentation.

Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited)

	Year Ended December 31,						Quarter Ended December 31,
	2020			2019			2020			2019
REVENUES
Rental income	$	2,571,705		$	2,700,691		$	613,435		$	683,895

EXPENSES
Property and maintenance		440,998			446,845			107,665			108,348
Real estate taxes and insurance		381,562			366,139			93,519			95,705
Property management		93,825			95,344			22,312			22,639
General and administrative		48,305			52,757			11,093			11,630
Depreciation		820,832			831,083			201,829			214,882
Total expenses		1,785,522			1,792,168			436,418			453,204

Net gain (loss) on sales of real estate properties		531,807			447,637			179,589			178,237

Operating income		1,317,990			1,356,160			356,606			408,928

Interest and other income		5,935			3,201			1,929			620
Other expenses		(17,510	)		(18,177	)		(9,186	)		(6,972	)
Interest:
Expense incurred, net		(365,073	)		(390,076	)		(116,724	)		(100,300	)
Amortization of deferred financing costs		(8,939	)		(11,670	)		(2,686	)		(3,006	)
Income before income and other taxes, income (loss) from
investments in unconsolidated entities and net gain (loss)
on sales of land parcels		932,403			939,438			229,939			299,270
Income and other tax (expense) benefit		(852	)		2,281			(350	)		3,030
Income (loss) from investments in unconsolidated entities		(3,284	)		65,945			(839	)		(961	)
Net gain (loss) on sales of land parcels		34,234			2,044			34,234			(33	)
Net income		962,501			1,009,708			262,984			301,306
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(34,010	)		(36,034	)		(9,386	)		(10,695	)
Partially Owned Properties		(14,855	)		(3,297	)		(742	)		(847	)
Net income attributable to controlling interests		913,636			970,377			252,856			289,764
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
Net income available to Common Shares	$	910,546		$	967,287		$	252,084		$	288,992

Earnings per share – basic:
Net income available to Common Shares	$	2.45		$	2.61		$	0.68		$	0.78
Weighted average Common Shares outstanding		371,791			370,461			371,915			371,155

Earnings per share – diluted:
Net income available to Common Shares	$	2.45		$	2.60		$	0.68		$	0.77
Weighted average Common Shares outstanding		385,874			386,333			385,756			387,143

Distributions declared per Common Share outstanding	$	2.41		$	2.27		$	0.6025		$	0.5675

Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited)

	Year Ended December 31,						Quarter Ended December 31,
	2020			2019			2020			2019
Net income	$	962,501		$	1,009,708		$	262,984		$	301,306
Net (income) loss attributable to Noncontrolling Interests – Partially
Owned Properties		(14,855	)		(3,297	)		(742	)		(847	)
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
Net income available to Common Shares and Units		944,556			1,003,321			261,470			299,687

Adjustments:
Depreciation		820,832			831,083			201,829			214,882
Depreciation – Non-real estate additions		(4,564	)		(5,585	)		(1,131	)		(1,350	)
Depreciation – Partially Owned Properties		(3,345	)		(3,599	)		(831	)		(899	)
Depreciation – Unconsolidated Properties		2,454			2,997			616			612
Net (gain) loss on sales of unconsolidated entities – operating
assets		(1,636	)		(69,522	)		(636	)		—
Net (gain) loss on sales of real estate properties		(531,807	)		(447,637	)		(179,589	)		(178,237	)
Noncontrolling Interests share of gain (loss) on sales
of real estate properties		11,655			—			—			—
FFO available to Common Shares and Units		1,238,145			1,311,058			281,728			334,695

Adjustments (see note for additional detail):
Impairment – non-operating assets		—			—			—			—
Write-off of pursuit costs		6,869			5,529			2,005			1,431
Debt extinguishment and preferred share redemption (gains)
losses		39,292			23,991			39,255			12,184
Non-operating asset (gains) losses		(32,590	)		(940	)		(33,612	)		260
Other miscellaneous items		4,652			8,430			5,166			1,891
Normalized FFO available to Common Shares and Units	$	1,256,368		$	1,348,068		$	294,542		$	350,461

FFO	$	1,241,235		$	1,314,148		$	282,500		$	335,467
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
FFO available to Common Shares and Units	$	1,238,145		$	1,311,058		$	281,728		$	334,695
FFO per share and Unit – basic	$	3.22		$	3.42		$	0.73		$	0.87
FFO per share and Unit – diluted	$	3.21		$	3.39		$	0.73		$	0.86

Normalized FFO	$	1,259,458		$	1,351,158		$	295,314		$	351,233
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
Normalized FFO available to Common Shares and Units	$	1,256,368		$	1,348,068		$	294,542		$	350,461
Normalized FFO per share and Unit – basic	$	3.27		$	3.52		$	0.77		$	0.91
Normalized FFO per share and Unit – diluted	$	3.26		$	3.49		$	0.76		$	0.91

Weighted average Common Shares and Units outstanding – basic		384,794			383,368			384,899			384,039
Weighted average Common Shares and Units outstanding – diluted		385,874			386,333			385,756			387,143

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential Consolidated Balance Sheets (Amounts in thousands except for share amounts) (Unaudited)

	December 31,			December 31,
	2020			2019
ASSETS
Land	$	5,785,367		$	5,936,188
Depreciable property		20,920,654			21,319,101
Projects under development		411,134			181,630
Land held for development		86,170			96,688
Investment in real estate		27,203,325			27,533,607
Accumulated depreciation		(7,859,657	)		(7,276,786	)
Investment in real estate, net		19,343,668			20,256,821
Investments in unconsolidated entities		52,782			52,238
Cash and cash equivalents		42,591			45,753
Restricted deposits		57,137			71,246
Right-of-use assets		499,287			512,774
Other assets		291,426			233,937
Total assets	$	20,286,891		$	21,172,769

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	2,293,890		$	1,941,610
Notes, net		5,335,536			6,077,513
Line of credit and commercial paper		414,830			1,017,833
Accounts payable and accrued expenses		107,366			94,350
Accrued interest payable		65,896			66,852
Lease liabilities		329,130			331,334
Other liabilities		345,064			346,963
Security deposits		60,480			70,062
Distributions payable		232,262			218,326
Total liabilities		9,184,454			10,164,843

Commitments and contingencies

Redeemable Noncontrolling Interests – Operating Partnership		338,951			463,400
Equity:
Shareholders’ equity:
Preferred Shares of beneficial interest, $0.01 par value;
100,000,000 shares authorized; 745,600 shares issued and
outstanding as of December 31, 2020 and December 31, 2019		37,280			37,280
Common Shares of beneficial interest, $0.01 par value;
1,000,000,000 shares authorized; 372,302,000 shares issued
and outstanding as of December 31, 2020 and 371,670,884
shares issued and outstanding as of December 31, 2019		3,723			3,717
Paid in capital		9,128,599			8,965,577
Retained earnings		1,399,715			1,386,495
Accumulated other comprehensive income (loss)		(43,666	)		(77,563	)
Total shareholders’ equity		10,525,651			10,315,506
Noncontrolling Interests:
Operating Partnership		233,162			227,837
Partially Owned Properties		4,673			1,183
Total Noncontrolling Interests		237,835			229,020
Total equity		10,763,486			10,544,526
Total liabilities and equity	$	20,286,891		$	21,172,769

Equity Residential Portfolio Summary As of December 31, 2020

					% of Stabilized			Average
			Apartment		Budgeted			Rental
Markets/Metro Areas	Properties		Units		NOI			Rate

Los Angeles		72		16,603		21.5	%	$	2,458
Orange County		13		4,028		5.4	%		2,222
San Diego		11		2,706		3.8	%		2,373
Subtotal – Southern California		96		23,337		30.7	%		2,407

San Francisco		48		12,707		18.3	%		3,053
Washington DC		47		14,731		17.2	%		2,387
Seattle		46		9,454		11.4	%		2,349
New York		37		9,606		11.3	%		3,617
Boston		25		6,430		9.4	%		2,958
Denver		5		1,624		1.7	%		2,003

Total		304		77,889		100.0	%	$	2,680

	Properties		Apartment Units

Wholly Owned Properties		287		74,328
Master-Leased Properties – Consolidated		1		162
Partially Owned Properties – Consolidated		16		3,399

		304		77,889

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Equity Residential

Portfolio Rollforward Q4 2020 ($ in thousands)
		Properties			Apartment Units			Sales Price			Disposition Yield

	9/30/2020		305			78,568

Dispositions:
Consolidated:
Rental Properties			(1	)		(679	)	$	(312,500	)		(4.1	%)
Land Parcels			—			—		$	(55,510	)

	12/31/2020		304			77,889

Portfolio Rollforward 2020 ($ in thousands)

		Properties			Apartment Units			Purchase Price			Acquisition Cap Rate

	12/31/2019		309			79,962

Acquisitions:
Consolidated Rental Properties – Not Stabilized (A)			1			158		$	48,860			4.7	%

								Sales Price			Disposition Yield

Dispositions:
Consolidated:
Rental Properties			(6	)		(2,231	)	$	(1,066,861	)		(4.5	%)
Land Parcels			—			—		$	(55,510	)

	12/31/2020		304			77,889

(A)	The Company acquired one property in the Seattle market in the third quarter of 2020 that is in lease-up and is expected to stabilize in its second year of ownership at an Acquisition Cap Rate of 4.7%.

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019 Same Store Results/Statistics Including 76,535 Same Store Apartment Units $ in thousands (except for Average Rental Rate)

Fourth Quarter 2020												Fourth Quarter 2019
	Residential			% Change	Non- Residential			% Change	Total		% Change		Residential			Non- Residential		Total

Revenues	$	580,328	(1)	(8.2%)	$	19,926	(2)	(15.8%)	$	600,254	(8.5%)	Revenues	$	632,229		$	23,658	$	655,887
Expenses	$	192,948		2.8%	$	5,541		(0.6%)	$	198,489	2.7%	Expenses	$	187,637		$	5,573	$	193,210
NOI	$	387,380		(12.9%)	$	14,385		(20.5%)	$	401,765	(13.2%)	NOI	$	444,592		$	18,085	$	462,677

Average Rental Rate	$	2,685		(6.4%)								Average Rental Rate	$	2,868
Physical Occupancy		94.2	%	(1.9%)								Physical Occupancy		96.1	%
Turnover		13.4	%	2.7%								Turnover		10.7	%

Fourth Quarter 2020 vs. Third Quarter 2020 Same Store Results/Statistics Including 77,351 Same Store Apartment Units $ in thousands (except for Average Rental Rate)

Fourth Quarter 2020												Third Quarter 2020
	Residential			% Change	Non- Residential			% Change	Total		% Change		Residential			Non- Residential		Total

Revenues	$	585,992	(1)	(3.7%)	$	19,982	(2)	223.8%	$	605,974	(1.5%)	Revenues	$	608,737		$	6,171	$	614,908
Expenses	$	194,467		(3.4%)	$	5,558		(3.0%)	$	200,025	(3.3%)	Expenses	$	201,218		$	5,732	$	206,950
NOI	$	391,525		(3.9%)	$	14,424		3185.6%	$	405,949	(0.5%)	NOI	$	407,519		$	439	$	407,958

Average Rental Rate	$	2,683		(3.2%)								Average Rental Rate	$	2,771
Physical Occupancy		94.2	%	(0.5%)								Physical Occupancy		94.7	%
Turnover		13.4	%	(4.4%)								Turnover		17.8	%

2020 vs. 2019 Same Store Results/Statistics Including 73,585 Same Store Apartment Units $ in thousands (except for Average Rental Rate)

2020												2019
	Residential			% Change	Non- Residential			% Change	Total		% Change		Residential			Non- Residential		Total

Revenues	$	2,356,344	(1)	(2.9%)	$	62,674	(2)	(33.2%)	$	2,419,018	(4.0%)	Revenues	$	2,425,471		$	93,764	$	2,519,235
Expenses	$	751,504		2.1%	$	21,975		3.5%	$	773,479	2.1%	Expenses	$	736,279		$	21,223	$	757,502
NOI	$	1,604,840		(5.0%)	$	40,699		(43.9%)	$	1,645,539	(6.6%)	NOI	$	1,689,192		$	72,541	$	1,761,733

Average Rental Rate	$	2,809		(1.5%)								Average Rental Rate	$	2,852
Physical Occupancy		95.1	%	(1.3%)								Physical Occupancy		96.4	%
Turnover		52.3	%	2.5%								Turnover		49.8	%

(1)	See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

(2)	Changes in same store Non-Residential revenues for the periods presented are driven by the following:
	• Fourth Quarter 2020 vs. Fourth Quarter 2019 – Primarily deferral/abatement of rents, higher bad debt and lower parking income.
	• Fourth Quarter 2020 vs. Third Quarter 2020 – Primarily a $10.6 million non-cash write-off of Non-Residential straight-line lease receivables in the third quarter of 2020.
	• 2020 vs. 2019 – Primarily deferral/abatement of rents, higher bad debt, lower parking income and the non-cash write-off of $12.9 million of Non-Residential straight-line lease receivables predominately in the third quarter of 2020.

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1) $ in thousands

	Fourth Quarter 2020 vs. Fourth Quarter 2019						Fourth Quarter 2020 vs. Third Quarter 2020						2020 vs. 2019
	76,535 Same Store Apartment Units						77,351 Same Store Apartment Units						73,585 Same Store Apartment Units
	Q4 2020			Q4 2019			Q4 2020			Q3 2020			2020			2019
Same Store Residential Revenues (GAAP Basis)	$	580,328		$	632,229		$	585,992		$	608,737		$	2,356,344		$	2,425,471
Leasing Concessions amortized		8,091			819			8,335			4,322			13,435			3,189
Leasing Concessions granted		(16,444	)		(1,014	)		(16,793	)		(12,070	)		(31,077	)		(2,034	)
Same Store Residential Revenues with Leasing
Concessions on a cash basis	$	571,975		$	632,034		$	577,534		$	600,989		$	2,338,702		$	2,426,626

% change – GAAP revenue		(8.2	%)					(3.7	%)					(2.9	%)

% change – cash revenue		(9.5	%)					(3.9	%)					(3.6	%)

(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

Same Store Resident/Tenant Accounts Receivable Balances Including 73,585 Same Store Apartment Units $ in thousands

	Residential										Non-Residential
Balance Sheet (Other assets):	December 31, 2020				September 30, 2020			December 31, 2019			December 31, 2020			September 30, 2020			December 31, 2019
Resident/tenant accounts receivable balances	$	29,618			$	23,506		$	4,054		$	7,113		$	7,533		$	1,700
Allowance for doubtful accounts		(22,705	)			(14,995	)		(1,082	)		(6,323	)		(6,342	)		(1,349	)
Net receivable balances	$	6,913		(1)	$	8,511		$	2,972		$	790		$	1,191		$	351

Straight-line receivable balances	$	18,672		(2)	$	10,401		$	1,029		$	13,304		$	13,681		$	26,153

(1)	The Company held same store Residential security deposits approximating 29.2% of the net receivable balance at December 31, 2020.

(2)	Total same store Residential Leasing Concessions granted in 2020 were approximately $31.1 million. The straight-line receivable balance of $18.7 million reflects Residential Leasing Concessions that the Company expects will be recognized as a reduction of rental revenues in 2021.

Same Store Residential Bad Debt Including 73,585 Same Store Apartment Units $ in thousands

Income Statement (Rental income):	Q4 2020			2020			2019
Bad Debt, Net	$	12,550		$	39,391		$	10,660
% of Same Store Residential Revenues		2.2	%		1.7	%		0.4	%

Equity Residential Fourth Quarter 2020 vs. Fourth Quarter 2019 Same Store Residential Results/Statistics by Market

														Increase (Decrease) from Prior Year’s Quarter
Markets/Metro Areas	Apartment Units		Q4 2020 % of Actual NOI			Q4 2020 Average Rental Rate		Q4 2020 Weighted Average Physical Occupancy %			Q4 2020 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover

Los Angeles		16,603		20.4	%	$	2,458		95.6	%		13.8	%		(7.1	%)			2.0	%		(10.9	%)		(6.8	%)		(0.3	%)		1.7	%
Orange County		4,028		5.2	%		2,222		96.8	%		10.7	%		(2.2	%)			(0.4	%)		(2.7	%)		(2.3	%)		0.2	%		0.3	%
San Diego		2,706		3.7	%		2,373		97.3	%		11.4	%		0.5	%			3.6	%		(0.5	%)		(0.3	%)		0.8	%		(1.2	%)
Subtotal – Southern California		23,337		29.3	%		2,407		96.0	%		13.0	%		(5.5	%)			1.8	%		(8.3	%)		(5.4	%)		(0.1	%)		1.2	%

San Francisco		12,707		19.9	%		3,053		92.7	%		15.7	%		(11.4	%)			3.4	%		(16.2	%)		(8.9	%)		(2.6	%)		3.5	%
Washington DC		14,299		17.4	%		2,386		95.4	%		12.6	%		(3.5	%)			0.5	%		(5.2	%)		(2.5	%)		(1.0	%)		3.0	%
New York		9,606		11.6	%		3,617		89.8	%		11.8	%		(14.6	%)			5.7	%		(29.2	%)		(8.2	%)		(6.6	%)		4.5	%
Seattle		8,616		10.6	%		2,360		94.5	%		13.8	%		(5.9	%)			1.2	%		(8.5	%)		(4.0	%)		(1.9	%)		2.7	%
Boston		6,346		9.4	%		2,961		93.9	%		13.0	%		(9.1	%)			3.1	%		(13.7	%)		(7.0	%)		(2.2	%)		3.6	%
Denver		1,624		1.8	%		2,003		95.1	%		15.9	%		(1.8	%)			(0.1	%)		(2.4	%)		(2.7	%)		0.6	%		0.3	%

Total		76,535		100.0	%	$	2,685		94.2	%		13.4	%		(8.2	%)	(1)		2.8	%		(12.9	%)		(6.4	%)		(1.9	%)		2.7	%

(1)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 9.5% in the fourth quarter of 2020 compared to the fourth quarter of 2019. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

Equity Residential Fourth Quarter 2020 vs. Third Quarter 2020 Same Store Residential Results/Statistics by Market

														Increase (Decrease) from Prior Quarter
Markets/Metro Areas	Apartment Units		Q4 2020 % of Actual NOI			Q4 2020 Average Rental Rate		Q4 2020 Weighted Average Physical Occupancy %			Q4 2020 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover

Los Angeles		16,603		20.2	%	$	2,458		95.6	%		13.8	%		(1.5	%)			(1.3	%)		(1.6	%)		(1.2	%)		(0.3	%)		(1.6	%)
Orange County		4,028		5.2	%		2,222		96.8	%		10.7	%		(1.0	%)			(10.6	%)		2.2	%		(0.9	%)		0.0	%		(5.2	%)
San Diego		2,706		3.6	%		2,373		97.3	%		11.4	%		0.5	%			(0.1	%)		0.7	%		0.3	%		0.2	%		(4.6	%)
Subtotal – Southern California		23,337		29.0	%		2,407		96.0	%		13.0	%		(1.2	%)			(2.4	%)		(0.7	%)		(1.0	%)		(0.2	%)		(2.6	%)

San Francisco		12,707		19.7	%		3,053		92.7	%		15.7	%		(6.4	%)			(2.7	%)		(7.8	%)		(4.6	%)		(1.7	%)		(2.9	%)
Washington DC		14,569		17.6	%		2,387		95.4	%		12.8	%		(2.7	%)			(7.0	%)		(0.7	%)		(2.5	%)		(0.2	%)		(4.8	%)
New York		9,606		11.5	%		3,617		89.8	%		11.8	%		(6.5	%)			1.0	%		(13.4	%)		(4.9	%)		(1.5	%)		(8.5	%)
Seattle		9,078		11.1	%		2,363		94.5	%		14.1	%		(3.2	%)			(10.1	%)		(0.1	%)		(3.1	%)		(0.1	%)		(3.4	%)
Boston		6,430		9.4	%		2,958		93.9	%		12.9	%		(3.5	%)			(3.5	%)		(3.5	%)		(3.9	%)		0.4	%		(7.8	%)
Denver		1,624		1.7	%		2,003		95.1	%		15.9	%		(1.8	%)			(12.9	%)		3.1	%		(1.9	%)		0.0	%		(6.8	%)

Total		77,351		100.0	%	$	2,683		94.2	%		13.4	%		(3.7	%)	(1)		(3.4	%)		(3.9	%)		(3.2	%)		(0.5	%)		(4.4	%)

(1)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.9% in the fourth quarter of 2020 compared to the third quarter of 2020. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

Equity Residential 2020 vs. 2019 Same Store Residential Results/Statistics by Market

														Increase (Decrease) from Prior Year
Markets/Metro Areas	Apartment Units		2020 % of Actual NOI			2020 Average Rental Rate		2020 Weighted Average Physical Occupancy %			2020 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover

Los Angeles		15,968		20.1	%	$	2,547		95.5	%		51.9	%		(3.1	%)			0.8	%		(4.8	%)		(2.4	%)		(0.7	%)		(2.5	%)
Orange County		4,028		5.0	%		2,252		96.7	%		45.3	%		0.2	%			0.8	%		0.0	%		0.0	%		0.2	%		(6.5	%)
San Diego		2,706		3.5	%		2,374		97.0	%		49.0	%		1.4	%			1.6	%		1.3	%		1.0	%		0.4	%		(6.0	%)
Subtotal – Southern California		22,702		28.6	%		2,473		95.9	%		50.4	%		(2.1	%)			0.9	%		(3.2	%)		(1.7	%)		(0.4	%)		(3.6	%)

San Francisco		12,183		20.6	%		3,234		94.7	%		55.3	%		(3.9	%)			3.0	%		(6.1	%)		(2.5	%)		(1.3	%)		4.2	%
Washington DC		13,711		16.5	%		2,444		95.7	%		49.9	%		(0.6	%)			0.9	%		(1.2	%)		0.4	%		(0.9	%)		3.2	%
New York		9,475		13.3	%		3,826		93.0	%		50.9	%		(6.2	%)			3.3	%		(13.2	%)		(2.4	%)		(3.7	%)		12.1	%
Seattle		8,442		10.4	%		2,433		95.5	%		53.6	%		(0.3	%)			3.9	%		(1.8	%)		0.7	%		(0.9	%)		(0.7	%)
Boston		6,346		9.8	%		3,100		94.2	%		56.3	%		(3.3	%)			0.6	%		(4.8	%)		(1.2	%)		(2.0	%)		9.0	%
Denver		726		0.8	%		2,101		94.5	%		70.8	%		(2.4	%)			2.9	%		(4.3	%)		(1.0	%)		(1.6	%)		4.7	%

Total		73,585		100.0	%	$	2,809		95.1	%		52.3	%		(2.9	%)	(1)		2.1	%		(5.0	%)		(1.5	%)		(1.3	%)		2.5	%

(1)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.6% in the year ended December 31, 2020 compared to the year ended December 31, 2019. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 73,585 Same Store Apartment Units

	New Lease Change (1)						Renewal Rate Achieved (2)						Blended Rate (3)
Markets/Metro Areas	Q4 2020			Q4 2019			Q4 2020			Q4 2019			Q4 2020			Q4 2019

Los Angeles		(8.9	%)		(2.9	%)		(0.4	%)		4.7	%		(4.5	%)		1.0	%
Orange County		(2.8	%)		(0.9	%)		2.1	%		5.6	%		0.0	%		2.6	%
San Diego		(0.1	%)		(1.8	%)		2.5	%		5.4	%		1.4	%		1.7	%
Subtotal – Southern California		(7.2	%)		(2.4	%)		0.3	%		4.9	%		(3.2	%)		1.3	%

San Francisco		(27.0	%)		(4.7	%)		(7.3	%)		4.4	%		(19.2	%)		(0.2	%)
Washington DC		(18.6	%)		(2.5	%)		(1.9	%)		5.4	%		(11.5	%)		1.8	%
New York		(27.3	%)		(2.8	%)		(6.5	%)		3.9	%		(18.6	%)		1.3	%
Seattle		(25.7	%)		(1.2	%)		(6.0	%)		6.9	%		(18.0	%)		2.0	%
Boston		(26.9	%)		(5.1	%)		(4.9	%)		5.6	%		(18.2	%)		0.7	%
Denver		(15.0	%)		(3.5	%)		(0.2	%)		7.3	%		(10.3	%)		0.0	%

Total		(20.6	%)		(3.1	%)		(3.4	%)		4.9	%		(13.0	%)		1.0	%

(1)	New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

(2)	Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

(3)	Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019 Total Same Store Operating Expenses Including 76,535 Same Store Apartment Units $ in thousands

	Q4 2020		Q4 2019		$ Change (1)			% Change			% of Q4 2020 Operating Expenses

Real estate taxes	$	86,812	$	84,293	$	2,519			3.0	%		43.7	%
On-site payroll		40,198		39,283		915			2.3	%		20.3	%
Utilities		26,870		26,547		323			1.2	%		13.5	%
Repairs and maintenance		24,910		23,714		1,196			5.0	%		12.5	%
Insurance		6,293		5,368		925			17.2	%		3.2	%
Leasing and advertising		3,155		2,788		367			13.2	%		1.6	%
Other on-site operating expenses		10,251		11,217		(966	)		(8.6	%)		5.2	%

Total Same Store Operating Expenses (2) (includes Residential and Non-Residential)	$	198,489	$	193,210	$	5,279			2.7	%		100.0	%

2020 vs. 2019 Total Same Store Operating Expenses Including 73,585 Same Store Apartment Units $ in thousands

	2020		2019		$ Change (1)			% Change			% of 2020 Operating Expenses

Real estate taxes	$	337,939	$	325,332	$	12,607			3.9	%		43.7	%
On-site payroll		160,983		160,569		414			0.3	%		20.8	%
Utilities		102,768		101,137		1,631			1.6	%		13.3	%
Repairs and maintenance		93,620		94,766		(1,146	)		(1.2	%)		12.1	%
Insurance		24,310		20,597		3,713			18.0	%		3.2	%
Leasing and advertising		10,321		10,241		80			0.8	%		1.3	%
Other on-site operating expenses		43,538		44,860		(1,322	)		(2.9	%)		5.6	%

Total Same Store Operating Expenses (2) (includes Residential and Non-Residential)	$	773,479	$	757,502	$	15,977			2.1	%		100.0	%

(1)	Both quarter-over-quarter and year-over-year changes are due primarily to:

	Real estate taxes – Higher rates and assessed values continue to drive real estate tax growth across most markets.

	On-site payroll – Increase driven by higher employee benefit-related costs, partially offset by the transition to an enhanced operating platform and less overtime.

	Repairs and maintenance – Quarter-over-quarter increase primarily driven by COVID-19-related cleaning expenses and higher turnover expenses. Year-over-year decrease primarily driven by deferral and cancellation of some projects as a result of COVID-19-related delays.

	Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.

	Leasing and advertising – Quarter-over-quarter increase due primarily to enhanced digital advertising.

	Other on-site operating expenses – Decrease primarily due to reduced ground lease expense and lower legal expenses due to legislative suspension of evictions in many markets.

(2)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential

Debt Summary as of December 31, 2020 ($ in thousands)
	Debt Balances (1)		% of Total			Weighted Average Rates (1)			Weighted Average Maturities (years)

Secured	$	2,293,890		28.5	%		3.33	%		6.2
Unsecured		5,750,366		71.5	%		3.91	%		10.3

Total	$	8,044,256		100.0	%		3.76	%		9.0
Fixed Rate Debt:
Secured – Conventional	$	1,901,091		23.6	%		3.79	%		4.7
Unsecured – Public		5,335,536		66.4	%		4.03	%		11.0

Fixed Rate Debt		7,236,627		90.0	%		3.97	%		9.3

Floating Rate Debt:
Secured – Conventional		31,494		0.4	%		2.71	%		1.5
Secured – Tax Exempt		361,305		4.5	%		1.00	%		15.0
Unsecured – Revolving Credit Facility		—		—			1.47	%		3.8
Unsecured – Commercial Paper Program (2)		414,830		5.1	%		1.72	%		—

Floating Rate Debt		807,629		10.0	%		1.34	%		7.0

Total	$	8,044,256		100.0	%		3.76	%		9.0

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)	At December 31, 2020, the weighted average maturity of commercial paper outstanding was 45 days. The weighted average amount outstanding for the year ended December 31, 2020 was approximately $276.6 million.


Note: The Company capitalized interest of approximately $10.2 million and $6.9 million during the years ended December 31, 2020 and 2019, respectively. The Company capitalized interest of approximately $3.3 million and $2.1 million during the quarters ended December 31, 2020 and 2019, respectively.

Equity Residential

Debt Maturity Schedule as of December 31, 2020 ($ in thousands)

Year	Fixed Rate			Floating Rate				Total			% of Total			Weighted Average Coupons on Fixed Rate Debt (1)			Weighted Average Coupons on Total Debt (1)

2021	$	35,665		$	415,000		(2)	$	450,665			5.5	%		4.41	%		0.64	%
2022		264,185			31,855				296,040			3.7	%		3.25	%		3.15	%
2023		1,325,588			3,500				1,329,088			16.4	%		3.74	%		3.73	%
2024		—			6,100				6,100			0.1	%	N/A				0.10	%
2025		450,000			8,200				458,200			5.6	%		3.38	%		3.32	%
2026		592,025			9,000				601,025			7.4	%		3.58	%		3.53	%
2027		400,000			9,800				409,800			5.0	%		3.25	%		3.17	%
2028		900,000			42,380				942,380			11.6	%		3.79	%		3.62	%
2029		888,120			11,500				899,620			11.1	%		3.30	%		3.26	%
2030		1,095,000			12,600				1,107,600			13.6	%		2.55	%		2.52	%
2031+		1,350,850			275,535				1,626,385			20.0	%		4.39	%		3.67	%
Subtotal		7,301,433			825,470				8,126,903			100.0	%		3.56	%		3.23	%
Deferred Financing Costs and Unamortized (Discount)		(64,806	)		(17,841	)			(82,647	)	N/A			N/A			N/A

Total	$	7,236,627		$	807,629			$	8,044,256			100.0	%		3.56	%		3.23	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	Represents principal outstanding on the Company’s commercial paper program.

Equity Residential

Selected Unsecured Public Debt Covenants

	December 31,	September 30,
	2020	2020
Debt to Adjusted Total Assets (not to exceed 60%)	30.5%	31.6%

Secured Debt to Adjusted Total Assets (not to exceed 40%)	9.6%	9.6%

Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)	5.42	4.99

Total Unencumbered Assets to Unsecured Debt
(must be at least 125%)	457.1%	437.4%

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership’s (“ERPOP”) outstanding public debt securities. Equity Residential is the general partner of ERPOP.

Selected Credit Ratios

	December 31,	September 30,
	2020	2020
Total debt to Normalized EBITDAre	4.99x	5.00x

Net debt to Normalized EBITDAre	4.96x	4.89x

Unencumbered NOI as a % of total NOI	86.6%	86.1%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of December 31, 2020 (Amounts in thousands except for share/unit and per share amounts)

Secured Debt					$	2,293,890	28.5	%
Unsecured Debt						5,750,366	71.5	%

Total Debt						8,044,256	100.0	%	26.0	%

Common Shares (includes Restricted Shares)		372,302,000	96.4	%
Units (includes OP Units and Restricted Units)		13,858,073	3.6	%

Total Shares and Units		386,160,073	100.0	%
Common Share Price at December 31, 2020	$	59.28
						22,891,569	99.8	%
Perpetual Preferred Equity (see below)						37,280	0.2	%

Total Equity						22,928,849	100.0	%	74.0	%

Total Market Capitalization					$	30,973,105			100.0	%

Perpetual Preferred Equity as of December 31, 2020 (Amounts in thousands except for share and per share amounts)

Series	Call Date	Outstanding Shares		Liquidation Value		Annual Dividend Per Share		Annual Dividend Amount
Preferred Shares:
8.29% Series K	12/10/26		745,600	$	37,280	$	4.145	$	3,091

Equity Residential Common Share and Unit Weighted Average Amounts Outstanding

	2020		2019		Q4 2020		Q4 2019

Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares – basic		371,790,858		370,460,884		371,914,798		371,155,240
Shares issuable from assumed conversion/vesting of:
– OP Units		13,002,929		12,907,453		12,984,015		12,883,309
– long-term compensation shares/units		1,079,769		2,965,118		856,809		3,104,719

Total Common Shares and Units – diluted		385,873,556		386,333,455		385,755,622		387,143,268

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares – basic		371,790,858		370,460,884		371,914,798		371,155,240
OP Units – basic		13,002,929		12,907,453		12,984,015		12,883,309

Total Common Shares and OP Units – basic		384,793,787		383,368,337		384,898,813		384,038,549
Shares issuable from assumed conversion/vesting of:
– long-term compensation shares/units		1,079,769		2,965,118		856,809		3,104,719

Total Common Shares and Units – diluted		385,873,556		386,333,455		385,755,622		387,143,268

Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)		372,302,000		371,670,884
Units (includes OP Units and Restricted Units)		13,858,073		13,731,315

Total Shares and Units		386,160,073		385,402,199

Equity Residential Development and Lease-Up Projects as of December 31, 2020 (Amounts in thousands except for project and apartment unit amounts)

		No. of		Total Budgeted		Total Book		Total Book Value Not						Estimated/Actual
Projects	Location	Apartment Units		Capital Cost		Value to Date		Placed in Service		Total Debt		Percentage Completed		Initial Occupancy		Completion Date	Stabilization Date	Percentage Leased		Percentage Occupied

Projects Under Development – Wholly Owned:
Alcott Apartments (fka West End Tower)	Boston, MA		470	$	409,749	$	267,783	$	267,783	$	—	67%		Q2 2021		Q3 2021	Q1 2023		—		—
The Edge (fka 4885 Edgemoor Lane) (A)	Bethesda, MD		154		75,271		52,312		52,312		—	70%		Q3 2021		Q3 2021	Q3 2022		—		—

Projects Under Development – Wholly Owned			624		485,020		320,095		320,095		—

Projects Under Development – Partially Owned:
Aero Apartments (B)	Alameda, CA		200		117,794		91,039		91,039		31,494	78%		Q1 2021		Q2 2021	Q2 2022		—		—

Projects Under Development – Partially Owned			200		117,794		91,039		91,039		31,494

Total Projects Under Development			824	$	602,814	$	411,134	$	411,134	$	31,494

Land Held for Development		N/A		N/A		$	86,170	$	86,170	$	—

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS												Total Budgeted Capital Cost		Q4 2020 NOI
Projects Under Development												$	602,814	$	—

(A)	The Edge – The land under this project is subject to a long-term ground lease. This project is adjacent to an existing apartment property owned by the Company.

(B)	Aero Apartments – This development project is owned 90% by the Company and 10% by a third party partner in a joint venture consolidated by the Company. Construction is being partially funded with a construction loan that is non-recourse to the Company. The joint venture partner has funded $4.7 million for its allocated share of the project equity and serves as the developer of the project.

Equity Residential Capital Expenditures to Real Estate For the Year Ended December 31, 2020 (Amounts in thousands except for apartment unit and per apartment unit amounts)

	Same Store Properties		Non-Same Store Properties/Other		Total		Same Store Avg. Per Apartment Unit

Total Apartment Units		73,585		4,304		77,889

Building Improvements	$	78,969	$	2,905	$	81,874	$	1,073

Renovation Expenditures (1)		22,060		6		22,066		300

Replacements		31,252		787		32,039		425

Capital Expenditures to Real Estate (2)	$	132,281	$	3,698	$	135,979	$	1,798

(1)	Renovation Expenditures on 1,034 same store apartment units for the year ended December 31, 2020 approximated $21,335 per apartment unit renovated.

(2)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands)

	Trailing Twelve Months						2020												2019
	December 31, 2020			September 30, 2020			Q4			Q3			Q2			Q1			Q4
Net income	$	962,501		$	1,000,823		$	262,984		$	95,365		$	271,481		$	332,671		$	301,306
Interest expense incurred, net		365,073			348,649			116,724			80,874			81,885			85,590			100,300
Amortization of deferred financing costs		8,939			9,259			2,686			2,101			2,111			2,041			3,006
Amortization of above/below market lease intangibles		4,391			4,391			1,098			1,098			1,098			1,097			1,098
Depreciation		820,832			833,885			201,829			200,605			205,976			212,422			214,882
Income and other tax expense (benefit)		852			(2,528	)		350			262			187			53			(3,030	)

EBITDA		2,162,588			2,194,479			585,671			380,305			562,738			633,874			617,562

Net (gain) loss on sales of real estate properties		(531,807	)		(530,455	)		(179,589	)		25			(144,266	)		(207,977	)		(178,237	)
Net (gain) loss on sales of unconsolidated entities – operating assets		(1,636	)		(1,000	)		(636	)		(1,000	)		—			—			—

EBITDAre		1,629,145			1,663,024			405,446			379,330			418,472			425,897			439,325

Write-off of pursuit costs (other expenses)		6,869			6,295			2,005			1,586			1,651			1,627			1,431
(Income) loss from investments in unconsolidated entities – operations		4,920			4,406			1,475			1,246			1,042			1,157			961
Net (gain) loss on sales of land parcels		(34,234	)		33			(34,234	)		—			—			—			33
Insurance/litigation settlement or reserve income (interest and other income)		(4,152	)		(2,353	)		(1,800	)		(3	)		(767	)		(1,582	)		(1	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)		(1,293	)		3,936			—			500			(1,956	)		163			5,229
Advocacy contributions (other expenses)		11,062			4,146			6,981			1,728			1,852			501			65
Data analytics project (other expenses)		—			—			—			—			—			—			—
Other		(965	)		(1,108	)		(15	)		(429	)		(521	)		—			(158	)

Normalized EBITDAre	$	1,611,352		$	1,678,379		$	379,858		$	383,958		$	419,773		$	427,763		$	446,885

Balance Sheet Items:	December 31, 2020			September 30, 2020

Total debt	$	8,044,256		$	8,396,730
Cash and cash equivalents		(42,591	)		(178,333	)
Mortgage principal reserves/sinking funds		(14,168	)		(13,013	)
Net debt	$	7,987,497		$	8,205,384

Note:

EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio.

Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands)

	Year Ended December 31,									Quarter Ended December 31,
	2020			2019			Variance			2020			2019			Variance

Impairment – non-operating assets	$	—		$	—		$	—		$	—		$	—		$	—

Write-off of pursuit costs (other expenses)		6,869			5,529			1,340			2,005			1,431			574

Prepayment premiums/penalties (interest expense)		26,150			13,647			12,503			26,150			10,266			15,884
Write-off of unamortized deferred financing costs (interest expense)		634			3,148			(2,514	)		597			875			(278	)
Write-off of unamortized (premiums)/discounts/OCI (interest expense)		12,508			7,196			5,312			12,508			1,043			11,465
Debt extinguishment and preferred share redemption (gains) losses		39,292			23,991			15,301			39,255			12,184			27,071

Net (gain) loss on sales of land parcels		(34,234	)		(2,044	)		(32,190	)		(34,234	)		33			(34,267	)
(Income) loss from investments in unconsolidated entities ─ non-operating assets		1,644			1,104			540			622			227			395
Non-operating asset (gains) losses		(32,590	)		(940	)		(31,650	)		(33,612	)		260			(33,872	)

Insurance/litigation settlement or reserve income (interest and other income)		(4,152	)		(384	)		(3,768	)		(1,800	)		(1	)		(1,799	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)		(1,293	)		7,198			(8,491	)		—			5,229			(5,229	)
Advocacy contributions (other expenses)		11,062			270			10,792			6,981			65			6,916
Data analytics project (other expenses)		—			4,199			(4,199	)		—			—			—
Other		(965	)		(2,853	)		1,888			(15	)		(3,402	)		3,387
Other miscellaneous items		4,652			8,430			(3,778	)		5,166			1,891			3,275

Adjustments from FFO to Normalized FFO	$	18,223		$	37,010		$	(18,787	)	$	12,814		$	15,766		$	(2,952	)

Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential

Normalized FFO Guidance and Assumptions

The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

	Q1 2021	Full Year 2021

2021 Normalized FFO Guidance (per share diluted)

Expected Normalized FFO Per Share	$0.65 to $0.69	$2.60 to $2.80

2021 Same Store Assumptions (includes Residential and Non-Residential)

Physical Occupancy		94.8% to 95.8%
Revenue change (1)		(9.0%) to (7.0%)
Expense change		3.0% to 4.0%
NOI change (2)		(15.0%) to (12.0%)

2021 Transaction Assumptions

The Company expects consolidated rental acquisitions to approximately equal consolidated rental dispositions.

2021 Debt Assumptions

Weighted average debt outstanding		$8.1B to $8.3B
Interest expense, net (on a Normalized FFO basis)		$270.0M to $276.5M
Capitalized interest		$14.5M to $16.5M

2021 Capital Expenditures to Real Estate Assumptions for Same Store Properties (3)

Capital Expenditures to Real Estate for Same Store Properties		$150.0M
Capital Expenditures to Real Estate per Same Store Apartment Unit		$1,950

2021 Other Guidance Assumptions

Property management expense		$96.5M to $98.5M
General and administrative expense		$53.0M to $55.0M
Debt offerings		No amounts budgeted
Weighted average Common Shares and Units – Diluted		386.8M

(1)	Revenue change is reflected on a GAAP basis. Revenue change would be approximately (8.0%) to (6.0%) on a cash basis.

(2)	Approximately 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.

(3)	During 2021, the Company expects to spend approximately $25.0 million for apartment unit Renovation Expenditures on approximately 1,250 same store apartment units at an average cost of approximately $20,000 per apartment unit renovated, which is included in the Capital Expenditures to Real Estate assumptions noted above.

Equity Residential

Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms

(Amounts in thousands except per share and per apartment unit data)

(All per share data is diluted)

This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.

Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.

Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.

Bad Debt, Net – Reduction in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Capital Expenditures to Real Estate:

Building Improvements –Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment.

Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.

Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting).

Debt Balances:

Commercial Paper Program –The Company may borrow up to a maximum of $1.0 billion under its commercial paper program subject to market conditions. The notes bear interest at various floating rates.

Revolving Credit Facility –The Company’s $2.5 billion unsecured revolving credit facility matures November 1, 2024. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.775%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility:

December 31, 2020

Unsecured revolving credit facility commitment

$

2,500,000

Commercial paper balance outstanding

(415,000

)

Unsecured revolving credit facility balance outstanding

—

Other restricted amounts

(100,949

)

Unsecured revolving credit facility availability

$

1,984,051

Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company’s compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.

Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.

Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.

Earnings Per Share (“EPS”) –Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS.

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) –The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):

Year Ended December 31, 2020

Quarter Ended December 31, 2020

Net Gain (Loss) on Sales of Real Estate Properties

$

531,807

$

179,589

Accumulated Depreciation Gain

(237,803

)

(80,332

)

Economic Gain (Loss)

$

294,004

$

99,257

FFO and Normalized FFO:

Funds From Operations (“FFO”) –Nareit defines FFO (December 2018White Paper) as net income (computed in accordance with GAAP),excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation andamortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnershipsand joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expectedoperating performance when compared to expected EPS.

The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies.

Normalized Funds From Operations (“Normalized FFO”) – Normalized FFObegins with FFO and excludes:

• the impact of any expenses relating to non-operating asset impairment;

• pursuit cost write-offs;

• gains and losses from early debt extinguishment and preferred share redemptions;

• gains and losses from non-operating assets; and

• other miscellaneous items.

Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company’s operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results.

FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company’s calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the “Noncontrolling Interests – Operating Partnership”. Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis.

The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.

Actual

Actual

Expected

Expected

Actual 2020

Actual 2019

Q4 2020

Q4 2019

Q1 2021

2021

Per Share

Per Share

Per Share

Per Share

Per Share

Per Share

EPS – Diluted

$

2.45

$

2.60

$

0.68

$

0.77

$0.31 to $0.35

$2.55 to $2.75

Depreciation expense

2.11

2.13

0.52

0.55

0.51

2.02

Net (gain) loss on sales

(1.35

)

(1.34

)

(0.47

)

(0.46

)

(0.17)

(1.99)

Impairment – operating assets

—

—

—

—

—

—

FFO per share – Diluted

3.21

3.39

0.73

0.86

0.65 to 0.69

2.58 to 2.78

Impairment – non-operating assets

—

—

—

—

—

—

Write-off of pursuit costs

0.02

0.02

0.01

0.01

—

0.01

Debt extinguishment and preferred share

redemption (gains) losses

0.10

0.06

0.10

0.03

—

—

Non-operating asset (gains) losses

(0.08

)

—

(0.09

)

—

—

0.01

Other miscellaneous items

0.01

0.02

0.01

0.01

—

—

Normalized FFO per share – Diluted

$

3.26

$

3.49

$

0.76

$

0.91

$0.65 to $0.69

$2.60 to $2.80

Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented.

Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following tables present reconciliations of operating income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (see Same Store Results):

Year Ended December 31,

Quarter Ended December 31,

2020

2019

2020

2019

Operating income

$

1,317,990

$

1,356,160

$

356,606

$

408,928

Adjustments:

Property management

93,825

95,344

22,312

22,639

General and administrative

48,305

52,757

11,093

11,630

Depreciation

820,832

831,083

201,829

214,882

Net (gain) loss on sales of real estate

properties

(531,807

)

(447,637

)

(179,589

)

(178,237

)

Total NOI

$

1,749,145

$

1,887,707

$

412,251

$

479,842

Rental income:

Same store

$

2,419,018

$

2,519,235

$

600,254

$

655,887

Non-same store/other

152,687

181,456

13,181

28,008

Total rental income

2,571,705

2,700,691

613,435

683,895

Operating expenses:

Same store

773,479

757,502

198,489

193,210

Non-same store/other

49,081

55,482

2,695

10,843

Total operating expenses

822,560

812,984

201,184

204,053

NOI:

Same store

1,645,539

1,761,733

401,765

462,677

Non-same store/other

103,606

125,974

10,486

17,165

Total NOI

$

1,749,145

$

1,887,707

$

412,251

$

479,842

New Lease Change –The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.

Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2019 and 2020, plus any properties in lease-up and not stabilized as of January 1, 2019.

Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.

Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.

Renewal Rate Achieved –The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Residential – Consists of multifamily apartment revenues and expenses.

Same Store Operating Expenses:

On-site Payroll –Includes payroll and related expenses for on-site personnel including property managers, leasing consultants, and maintenance staff.

Other On-site Operating Expenses –Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

Repairs and Maintenance –Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs.

Utilities –Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income.

Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2019, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented.

Same Store Residential Revenues –Revenues from our Same Store Properties presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.

Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.

% of Stabilized Budgeted NOI – Represents original budgeted 2021 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.

Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP.

Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.

Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.

Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.

Turnover –Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units.

Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company’s consolidated real estate assets.

Unlevered Internal Rate of Return (“IRR”) – The Unlevered IRR on sold properties is the compound annual rate of return calculated by the Company based on the timing and amount of: (i) the gross purchase price of the property plus any direct acquisition costs incurred by the Company; (ii) total revenues earned during the Company’s ownership period; (iii) total direct property operating expenses (including real estate taxes and insurance) incurred during the Company’s ownership period; (iv) capital expenditures incurred during the Company’s ownership period; and (v) the gross sales price of the property net of selling costs.

The calculation of the Unlevered IRR does not include an adjustment for the Company’s property management expense, general and administrative expense or interest expense (including loan assumption costs and other loan-related costs). Therefore, the Unlevered IRR is not a substitute for net income as a measure of our performance. Management believes that the Unlevered IRR achieved during the period a property is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property, before the impact of Company overhead. The Unlevered IRR achieved on the properties as cited in this release should not be viewed as an indication of the gross value created with respect to other properties owned by the Company, and the Company does not represent that it will achieve similar Unlevered IRRs upon the disposition of other properties. The weighted average Unlevered IRR for sold properties is weighted based on all cash flows over the investment period for each respective property, including net sales proceeds.

Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of December 31, 2020. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

Weighted Average Rates – Interest expense for each debt instrument for the year ended December 31, 2020 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005950/en/

Marty McKenna

(312) 474-1300

[email protected]

KEYWORDS: United States North America Illinois

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

MEDIA:

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Posted on February 10, 2021 4:18 pm
Apollo Commercial Real Estate Finance, Inc. Reports Fourth Quarter and Full Year 2020 Results

Board of Directors Authorizes $150 Million Increase to Share Repurchase Plan

NEW YORK, Feb. 10, 2021 (GLOBE NEWSWIRE) — Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI), today reported results for the quarter and year ended December 31, 2020. In addition, ARI announced the Company’s Board of Directors authorized an increase of $150 million to the existing share repurchase plan. Following the increase, ARI has $172 million of current capacity under the plan.

For the fourth quarter of 2020, net income available to common stockholders per share of common stock was $0.23, and Distributable Earnings (a non-GAAP financial measure defined below), prior to realized loss on investments were $0.36 per share of common stock.   Distributable Earnings for the fourth quarter were $0.15 per share of common stock.

Commenting on the results, Stuart Rothstein, Chief Executive Officer and President of ARI, said: “Despite the challenges created by the pandemic, ARI’s performance in 2020 affirmed our ability to be thoughtful, strategic and pro-active with respect to asset and balance sheet management. The success of our efforts is evidenced by the strong balance sheet and increased liquidity we were able to maintain throughout the year while still being able to provide a stable and well covered dividend to our stockholders.”

ARI issued a detailed presentation of the Company’s quarter and year ended December 31, 2020 results, which can be viewed at www.apolloreit.com.

Conference Call and Webcast:

Members of the public who are interested in participating in the Company’s fourth quarter and full year 2020 earnings teleconference call should dial from the U.S., (877) 331-6553, or from outside the U.S., (760) 666-3769, shortly before 10:00 a.m. on Thursday, February 11, 2021 and reference the Apollo Commercial Real Estate Finance, Inc. Teleconference Call (number 5487683). Please note the teleconference call will be available for replay beginning at 1:00 p.m. on Thursday, February 11, 2021 and ending at midnight on Thursday, February 18, 2021. To access the replay, callers from the U.S. should dial (855) 859-2056 and callers from outside the U.S. should dial (404) 537-3406, and enter conference identification number 5487683.

Distributable Earnings

Beginning in the fourth quarter of 2020, to more appropriately reflect the principal purpose of the measure, “Operating Earnings” was relabeled “Distributable Earnings”, a non-GAAP financial measure. The definition continues to be net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding), (ii) any unrealized gains or losses or other non-cash items included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains (losses), other than (a) realized gains/(losses) related to interest income, and (b) forward point gains/(losses) realized on the Company’s foreign currency hedges, (v) the non-cash amortization expense related to the reclassification of a portion of the Company’s convertible senior notes (the “Notes”) to stockholders’ equity in accordance with GAAP, and (vi) provision for loan losses.

The weighted-average diluted shares outstanding used for Distributable Earnings per weighted-average diluted share has been adjusted from weighted-average diluted shares under GAAP to exclude shares issued from a potential conversion of the Notes. Consistent with the treatment of other unrealized adjustments to Distributable Earnings, these potentially issuable shares are excluded until a conversion occurs, which the Company believes is a useful presentation for investors. The Company believes that excluding shares issued in connection with a potential conversion of the Notes from its computation of Distributable Earnings per weighted-average diluted share is useful to investors for various reasons, including the following: (i) conversion of Notes to shares requires both the holder of a Note to elect to convert the Note and for the Company to elect to settle the conversion in the form of shares; (ii) future conversion decisions by Note holders will be based on the Company’s stock price in the future, which is presently not determinable; (iii) the exclusion of shares issued in connection with a potential conversion of the Notes from the computation of Distributable Earnings per weighted-average diluted share is consistent with how the Company treats other unrealized items in its computation of Distributable Earnings per weighted-average diluted share; and (iv) the Company believes that when evaluating its operating performance, investors and potential investors consider the Company’s Distributable Earnings relative to its actual distributions, which are based on shares outstanding and not shares that might be issued in the future.

As a REIT, U.S. federal income tax law generally requires the Company to distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that the Company pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. Given these requirements and the Company’s belief that dividends are generally one of the principal reasons shareholders invest in a REIT, the Company generally intends over time to pay dividends to its stockholders in an amount equal to its net taxable income, if and to the extent authorized by the Company’s board of directors. Distributable Earnings is a key factor considered by the Company’s board of directors in setting the dividend and as such the Company believes Distributable Earnings is useful to investors.

During the second quarter of 2020, the Company terminated its interest rate swap, which was used to manage exposure to variable cash flows on the Company’s borrowings under its senior secured term loan and recorded a realized loss in the condensed consolidated statement of operations. As of December 31, 2020, there are no interest rate swaps on the Company’s condensed consolidated balance sheet. In addition, during the year ended December 31, 2020, the Company recorded a net realized loss on the sale of two residential-for-sale: inventory loans, sale of three construction loans, repayment of a previously impaired residential-for-sale: inventory loan, foreclosure related to a hotel loan, sale of participating interests in an office loan and a residential-for-sale: construction loan, and in connection with the restructuring of two hotel loans.

The Company believes it is useful to its investors to also present Distributable Earnings prior to realized loss on investments and interest rate swap to reflect its operating results because (i) the Company’s operating results are primarily comprised of earning interest income on its investments net of borrowing and administrative costs, which comprise the Company’s ongoing operations and (ii) it has been a useful factor related to the Company’s dividend per share because it is one of the considerations when a dividend is determined. The Company believes that its investors use Distributable Earnings and Distributable Earnings prior to realized loss on investments and interest rate swap, or a comparable supplemental performance measure, to evaluate and compare the performance of the Company and its peers.

A significant limitation associated with Distributable Earnings as a measure of the Company’s financial performance over any period is that it excludes unrealized gains (losses) from investments. In addition, the Company’s presentation of Distributable Earnings may not be comparable to similarly-titled measures of other companies, that use different calculations. As a result, Distributable Earnings should not be considered as a substitute for the Company’s GAAP net income as a measure of its financial performance or any measure of its liquidity under GAAP. Distributable Earnings are reduced for realized losses on loans which include losses that management believes are near certain to be realized.

A reconciliation of Distributable Earnings, and Distributable Earnings prior to realized loss on investments and interest rate swap, to GAAP net income (loss) available to common stockholders is included in the detailed presentation of the Company’s quarter ended December 31, 2020 results, which can be viewed at www.apolloreit.com.

About Apollo Commercial Real Estate Finance, Inc.

Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, Inc., a leading global alternative investment manager with approximately $455 billion of assets under management at December 31, 2020.

Additional information can be found on the Company’s website at www.apolloreit.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: macro- and micro-economic impact of the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic; actions taken by governmental authorities to contain the COVID-19 pandemic or treat its impact; the impact of the COVID-19 pandemic on the Company’s financial condition, results of operations, liquidity and capital resources; market trends in the Company’s industry, interest rates, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT: Hilary Ginsberg

Investor Relations

(212) 822-0767

Posted on February 10, 2021 4:18 pm
Moelis & Company Reports Fourth Quarter and Full Year 2020 Financial Results; Increases Quarterly Dividend 44% to $0.55 Per Share

Moelis & Company Reports Fourth Quarter and Full Year 2020 Financial Results; Increases Quarterly Dividend 44% to $0.55 Per Share

Record Fourth Quarter and Full Year Revenues

Record fourth quarter revenues of $422.0 million, up 89% from the same period of 2019

Record annual revenues of $943.3 million, up 26% from the prior year

GAAP net income of $1.97 per share (diluted) for the fourth quarter of 2020 and $2.95 per share (diluted) for the full year; Adjusted net income of $1.99 per share (diluted) for the fourth quarter of 2020 and $2.91 per share (diluted) for the full year

Full year 2020 adjusted operating margin of 28% versus 18% in the prior year

Continued to execute on organic growth strategy:

Added thirteen Managing Directors in 2020 through internal development and key external hires; added sector capabilities in consumer & retail, energy & power, financial institutions, fintech, healthcare, and oil & gas; strengthened expertise in M&A, Restructuring and Recapitalization, Capital Markets Advisory, and Activist Defense, and enhanced our coverage of Private Equity clients; announced one Senior Advisor focused on companies in the media and telecommunications sectors

Promoted eight additional advisory professionals to Managing Director in early 2021, matching the largest promotion class in Firm history

Added a new Global Head of Private Funds Advisory to further expand our ability to provide private capital alternatives to financial sponsors; strong pipeline of 2021 Managing Director hires

Strong cash flow generation:

Ended 2020 with cash and short term investments of $375.1 million and no debt or goodwill

Returned nearly $275 million through dividends and share repurchases with respect to the 2020 performance year

Increased regular quarterly dividend 44% to $0.55 per share; previously declared $2.00 per share special dividend in December 2020

NEW YORK–(BUSINESS WIRE)–
Moelis & Company (NYSE: MC) today reported financial results for the fourth quarter and fiscal year ended December 31, 2020. The Firm’s fourth quarter revenues of $422.0 million increased 89% over the prior year period and represented our largest quarter of revenues since inception. The Firm reported fourth quarter 2020 GAAP net income of $155.6 million, or $1.97 per share (diluted). On an Adjusted basis, the Firm reported record net income of $146.2 million or $1.99 per share (diluted) for the fourth quarter of 2020, which compares with $26.4 million of net income or $0.38 per share (diluted) in the prior year period.

The Firm’s fiscal year 2020 revenues of $943.3 million represented an increase of 26% over the prior year and were our largest annual revenues on record. GAAP net income for the period was $218.4 million, or $2.95 per share (diluted), compared with $135.7 million or $1.89 per share in the prior year period. On an Adjusted basis, the Firm reported record net income of $209.1 million for fiscal year 2020 as compared with $134.2 million in the prior year. On a per share basis, the Firm reported Adjusted net income of $2.91 per share (diluted) for fiscal year 2020, up 48% from the $1.96 per share (diluted) reported in the prior year period. GAAP and Adjusted net income for fiscal year 2020 include net tax benefits of $0.11 per share and $0.12 per share, respectively, related to the settlement of share based awards.

“In the fourth quarter, we had our strongest quarterly performance ever, driven by the completion of a record number of transactions during the period. Our talented bankers and flexible model delivered record full year revenues, achieving year-over-year growth in all products and regions. We saw particular strength in our M&A, restructuring and capital markets franchises, as our collaborative platform is built to excel in all economic environments” said Ken Moelis, Chairman and Chief Executive Officer.

“Since the beginning of 2020, we expanded our advisory offering with the addition of 21 Managing Directors through internal promotion and key external hires. This positions us very well to continue executing on our high levels of business activity. We exceeded our 25% operating margin target, while continuing to invest in the future growth of the Franchise and returning 100% of our excess capital, all for the benefit of our shareholders.”

The Firm’s revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.

Currently 87% of the operating partnership (Moelis & Company Group LP) is owned by the corporate partner (Moelis & Company) and is subject to corporate U.S. federal and state income tax. The remaining 13% is owned by other partners of Moelis & Company Group LP and is primarily subject to U.S. federal tax at the partner level (certain state and local and foreign income taxes are incurred at the company level). The Adjusted results included herein apply certain adjustments from our GAAP results, including the assumption that 100% of the Firm’s fourth quarter and full year operating result was taxed at our corporate effective tax rate. We believe the Adjusted results, when presented together with comparable GAAP results, are useful to investors to compare our performance across periods and to better understand our operating results. A reconciliation between our GAAP results and our Adjusted results is presented in the Appendix to this press release.

GAAP and Adjusted (non-GAAP) Selected Financial Data (Unaudited)

GAAP

Adjusted (non-GAAP)*

Three Months Ended December 31,

($ in thousands except per share data)

2020

2019

2020 vs. 2019

Variance

2020

2019

2020 vs. 2019

Variance

Revenues

$

422,028

$

223,528

89

%

$

422,028

$

223,528

89

%

Income (loss) before income taxes

217,433

28,301

668

%

207,620

28,301

634

%

Provision (benefit) for income taxes

61,870

1,151

5275

%

61,430

1,896

3140

%

Net income (loss)

155,563

27,150

473

%

146,190

26,405

454

%

Net income (loss) attributable to noncontrolling interests

29,081

5,699

410

%

–

–

N/M

Net income (loss) attributable to Moelis & Company

$

126,482

$

21,451

490

%

$

146,190

$

26,405

454

%

Diluted earnings (loss) per share

$

1.97

$

0.38

418

%

$

1.99

$

0.38

424

%

N/M = not meaningful

* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

GAAP

Adjusted (non-GAAP)*

Twelve Months Ended December 31,

($ in thousands except per share data)

2020

2019

2020 vs. 2019

Variance

2020

2019

2020 vs. 2019

Variance

Revenues

$

943,276

$

746,534

26

%

$

943,276

$

746,534

26

%

Income (loss) before income taxes

270,113

147,505

83

%

269,011

148,605

81

%

Provision (benefit) for income taxes

51,675

11,813

337

%

59,947

14,423

316
%

Net income (loss)

218,438

135,692

61

%

209,064

134,182

56

%

Net income (loss) attributable to noncontrolling interests

39,607

30,597

29

%

–

–

N/M

Net income (loss) attributable to Moelis & Company

$

178,831

$

105,095

70

%

$

209,064

$

134,182

56

%

Diluted earnings per share

$

2.95

$

1.89

56

%

$

2.91

$

1.96

48

%

N/M = not meaningful

* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Revenues

We earned revenues of $422.0 million in the fourth quarter of 2020, as compared with $223.5 million in the prior year period, representing an increase of 89% and our largest quarter of revenues on record. This compares favorably with a 2% decrease in the number of global completed M&A transactions in the same period¹. We experienced the highest level of M&A activity in Firm history during the fourth quarter of 2020, and saw continued strength in capital markets and restructuring activity as compared with the prior year period.

For the year ended December 31, 2020, revenues were a record $943.3 million as compared with $746.5 million in 2019, or an increase of 26%. The increase in full year revenues reflects growth across all products and regions, with our capital markets and restructuring activity the highest they have ever been. We completed a greater number of transactions during the year, and earned higher average fees per completed transaction as compared with the prior year period.

We continued to execute on our strategy of organic growth. In 2020, we promoted five of our advisory professionals to Managing Director, added eight Managing Directors and one Senior Advisor to enhance our expertise in important sectors, products and regions.

We believe that we are positioning ourselves for the future growth of the business by continuing to invest in the Franchise. In early 2021 we promoted eight of our advisory professionals to Managing Director: Marcel Brouwer (EMEA/Restructuring and Recapitalization), James Butcher (U.S./TMT), Patrick Fouhy (U.S./Technology), Eliot Freeston (U.S./M&A), Ankush Gupta (U.S./Technology), Mads Jessen (EMEA/Healthcare), Jane Ma (U.S./ Financial Institutions), and Nabeel Vilcassim (EMEA/Financial Institutions). In addition, we recently appointed a new Global Head of Private Funds Advisory to further enhance the full suite of services offered to our private equity clients. We have a robust pipeline of Managing Director hires for 2021 and we will continue to focus on finding the right talent who will excel on our platform.

¹ Source: Thomson Financial as of January 5, 2021; includes all transactions greater than $100 million in value

Expenses

The following tables set forth information relating to the Firm’s operating expenses.

GAAP

Adjusted (non-GAAP)*

Three Months Ended December 31,

($ in thousands)

2020

2019

2020 vs. 2019

Variance

2020

2019

2020 vs. 2019

Variance

Expenses:

Compensation and benefits

$

188,919

$

172,096

10

%

$

188,473

$

166,916

13

%

% of revenues

44.8

%

77.0

%

44.7

%

74.7

%

Non-compensation expenses

$

26,648

$

34,680

-23

%

$

26,648

$

34,680

-23

%

% of revenues

6.3

%

15.5

%

6.3

%

15.5

%

Total operating expenses

$

215,567

$

206,776

4

%

$

215,121

$

201,596

7

%

% of revenues

51.1

%

92.5

%

51.0

%

90.2

%

* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

GAAP

Adjusted (non-GAAP)*

Twelve Months Ended December 31,

($ in thousands)

2020

2019

2020 vs. 2019

Variance

2020

2019

2020 vs. 2019

Variance

Expenses:

Compensation and benefits

$

560,803

$

488,439

15

%

$

559,512

$

470,254

19

%

% of revenues

59.5

%

65.4

%

59.3

%

63.0

%

Non-compensation expenses

$

116,764

$

143,552

-19

%

$

116,764

$

143,552

-19

%

% of revenues

12.4

%

19.2

%

12.4

%

19.2

%

Total operating expenses

$

677,567

$

631,991

7

%

$

676,276

$

613,806

10

%

% of revenues

71.8

%

84.7

%

71.7

%

82.2

%

* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Total operating expenses on a GAAP basis were $215.6 million for the fourth quarter and $677.6 million for the full year ended December 31, 2020. On an Adjusted basis, operating expenses were $215.1 million for the fourth quarter of 2020 as compared with $201.6 million in the prior year period, and $676.3 million for fiscal year 2020 as compared with $613.8 million in 2019. The increase in operating expenses for both the fourth quarter and full year of 2020 were associated with increased revenues, which drove increased compensation and benefits expenses, partially offset by non-compensation expense savings driven by less travel and related expenses.

Compensation and benefits expenses on a GAAP basis were $188.9 million in the fourth quarter and $560.8 million in the fiscal year ended December, 31 2020, respectively. Adjusted compensation and benefits expenses were $188.5 million in the fourth quarter, and $559.5 million in the fiscal year ended December 31, 2020. Adjusted compensation and benefits expenses were $166.9 million in the fourth quarter, and $470.3 million in fiscal year 2019. The increase in Adjusted compensation and benefits expenses in both current year periods is primarily due to higher salaries and bonus expenses in 2020, associated with higher revenues earned and increased headcount, as compared with both prior year periods.

Non-compensation expenses on a GAAP and Adjusted basis were $26.6 million for the fourth quarter of 2020 as compared with $34.7 million for the prior year period. The decrease in non-compensation expenses were primarily related to decreased travel and other business development expenses related to COVID-19 social distancing restrictions, in addition to our continued and focused expense discipline. Our non-compensation expense ratio decreased from 16% in the prior year to 6% in the current year. For the fiscal year of 2020, GAAP and Adjusted non-compensation expenses were $116.8 million as compared with $143.6 million in the prior year period. Our non-compensation expense ratio decreased from 19% in the prior year, to 12% in the current year.

Other Income (Expenses)

GAAP

Adjusted (non-GAAP)*

Three Months Ended December 31,

($ in thousands)

2020

2019

2020 vs. 2019

Variance

2020

2019

2020 vs. 2019

Variance

Other income (expenses)

$

10,972

$

11,549

-5

%

$

713

$

6,369

-89

%

* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

GAAP

Adjusted (non-GAAP)*

Twelve Months Ended December 31,

($ in thousands)

2020

2019

2020 vs. 2019

Variance

2020

2019

2020 vs. 2019

Variance

Other income (expenses)

$

4,404

$

32,962

-87

%

$

2,011

$

15,877

-87

%

* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Other income (expenses) on a GAAP basis was income of $11.0 million in the fourth quarter and $4.4 million for the fiscal year ended December 31, 2020. This compares with income of $11.5 million, and $33.0 million, respectively, in the same prior year periods. During the fourth quarter of 2020, we recorded $9.9 million of GAAP other income primarily related to a reversal of prior period Tax Receivable Agreement (“TRA”) liability adjustments pursuant to the CARES Act. On an Adjusted basis, these TRA liability adjustments, and the related reversal are reclassified to provision for income taxes to reflect the net tax-economic impact.

On an Adjusted basis, other income (expenses) was income of $0.7 million in the fourth quarter of 2020 as compared with $6.4 million in the prior year period. In the fourth quarter of 2019, we recorded a GAAP gain of $8.1 million related to the November 2019 share sale of our investment in Moelis Australia. Compensation expense associated with this gain was reclassified from compensation and benefits to other income (expenses) on an adjusted basis. As a result, the net gain associated with the share sale of our investment in Australia included in Adjusted other income (expenses) in the fourth quarter of 2019 was $3.1 million.

For the year ended December 31, 2020, other income (expenses) on an Adjusted basis was $2.0 million as compared with $15.9 million for prior year period. Other income (expenses) on an Adjusted basis for fiscal year 2019 includes the fourth quarter gain mentioned above, in addition to the $5.4 million net gain related to the September 2019 share sale of our investment in Moelis Australia.

Provision for Income Taxes

The corporate partner (Moelis & Company) currently owns 87% of the operating partnership (Moelis & Company Group LP) and is subject to corporate U.S. federal and state income tax. Income on the remaining 13% continues to be subject to New York City unincorporated business tax and certain foreign income taxes and is accounted for at the partner level through the non-controlling interests line item. For Adjusted purposes, we have assumed that 100% of the Firm’s fourth quarter and full year 2020 operating result was taxed at our corporate effective tax rate of 25.6%, and 25.5% respectively. In addition during the fourth quarter, we reversed approximately $7.7 million of tax benefit related to a prior period CARES Act accrual.

Capital Management and Balance Sheet

Moelis & Company continues to maintain a strong financial position, and as of December 31, 2020, we held cash and liquid investments of $375.1 million and had no debt or goodwill on our balance sheet.

We remain committed to returning 100% of our excess capital to shareholders.

The Board of Directors of Moelis & Company declared a regular dividend of $0.55 cents per share, representing an increase of 44% from the prior quarter, and an 8% increase from our regular quarterly dividend amount pre-COVID. The $0.55 per share will be paid on March 26, 2021 to common stockholders of record on February 22, 2021.

In addition, during the fiscal year ended December 31, 2020, we repurchased 1.2 million shares of our common stock for a total cost of $44.3 million.

Earnings Call

We will host a conference call beginning at 5:00pm ET on Wednesday, February 10, 2020, accessible via telephone and the internet. Ken Moelis, Chairman and Chief Executive Officer, and Joe Simon, Chief Financial Officer, will review our fourth quarter and full year 2020 financial results. Following the review, there will be a question and answer session.

Investors and analysts may participate in the live conference call by dialing 1-877-510-3938 (domestic) or 1-412-902-4137 (international) and referencing the Moelis & Company Fourth Quarter 2020 Earnings Call. Please dial in 15 minutes before the conference call begins. The conference call will also be accessible as a listen-only audio webcast through the Investor Relations section of the Moelis & Company website at www.moelis.com.

For those unable to listen to the live broadcast, a replay of the call will be available for one month via telephone starting approximately one hour after the live call ends. The replay can be accessed at 1-877-344-7529 (domestic) or 1-412-317-0088 (international); the conference number is 10151045.

About Moelis & Company

Moelis & Company is a leading global independent investment bank that provides innovative strategic advice and solutions to a diverse client base, including corporations, governments and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive integrated financial advisory services across all major industry sectors. Moelis & Company’s experienced professionals advise clients on their most critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. The Firm serves its clients from 22 geographic locations in North and South America, Europe, the Middle East, Asia and Australia. For further information, please visit: www.moelis.com or follow us on Twitter @Moelis.

Forward-Looking Statements

This press release contains forward-looking statements, which reflect the Firm’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “target,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are based on certain assumptions and estimates and subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under “Risk Factors” discussed in our Annual Report on Form 10-K for the year ended December 31, 2019, subsequent reports filed on Form 10-Q and our other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release including those statements herein with respect to the negative effects of the COVID-19 pandemic. The scale, scope and duration of the impact of the COVID-19 pandemic on our business, revenues and operating results is unpredictable and depends on many factors outside of our control. Statements herein about the effects of the COVID-19 pandemic on the firm’s business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently estimated. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results. The Firm undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

Adjusted results are a non-GAAP measure which better reflect management’s view of operating results. We believe that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable GAAP measures, are useful to investors to understand the Firm’s operating results by adjusting the accounting impact of certain items and assuming all Class A partnership units have been exchanged into Class A common stock. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP results to Adjusted results is presented in the Appendix.

Appendix

GAAP Consolidated Statement of Operations (Unaudited)

Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information (Unaudited)

Moelis & Company

GAAP Consolidated Statement of Operations

Unaudited

(dollars in thousands, except for share and per share data)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2020

2019

2020

2019

Revenues

$

422,028

$

223,528

$

943,276

$

746,534

Expenses

Compensation and benefits

188,919

172,096

560,803

488,439

Occupancy

7,469

5,823

30,033

20,209

Professional fees

3,995

4,307

18,378

19,229

Communication, technology and information services

8,064

7,907

32,181

31,590

Travel and related expenses

1,691

9,797

12,845

41,496

Depreciation and amortization

1,492

1,236

4,708

4,965

Other expenses

3,937

5,610

18,619

26,063

Total Expenses

215,567

206,776

677,567

631,991

Operating income (loss)

206,461

16,752

265,709

114,543

Other income (expenses)

10,972

11,549

4,404

32,962

Income (loss) before income taxes

217,433

28,301

270,113

147,505

Provision (benefit) for income taxes

61,870

1,151

51,675

11,813

Net income (loss)

155,563

27,150

218,438

135,692

Net income (loss) attributable to noncontrolling interests

29,081

5,699

39,607

30,597

Net income (loss) attributable to Moelis & Company

$

126,482

$

21,451

$

178,831

$

105,095

Weighted-average shares of Class A common stock outstanding

Basic

59,157,705

51,648,050

56,566,645

50,373,874

Diluted

64,358,909

56,316,374

60,723,365

55,513,149

Net income (loss) attributable to holders of shares of Class A common stock per share

Basic

$

2.14

$

0.42

$

3.16

$

2.09

Diluted

$

1.97

$

0.38

$

2.95

$

1.89

Moelis & Company

Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information

Unaudited

(dollars in thousands, except share and per share data)

Three Months Ended December 31, 2020

Adjusted items

GAAP

Adjustments

Adjusted

(non-GAAP)

Compensation and benefits

$

188,919

$

(446

)

(a)

$

188,473

Other income (expenses)

10,972

(10,259

)

(a)(b)

713

Income (loss) before income taxes

217,433

(9,813

)

207,620

Provision for income taxes

61,870

(440

)

(b)(c)

61,430

Net income (loss)

155,563

(9,373

)

146,190

Net income (loss) attributable to noncontrolling interests

29,081

(29,081

)

(d)

–

Net income (loss) attributable to Moelis & Company

$

126,482

$

19,708

$

146,190

Weighted-average shares of Class A common stock outstanding

Basic

59,157,705

9,282,569

(d)

68,440,274

Diluted

64,358,909

9,282,569

(d)

73,641,478

Net income (loss) attributable to holders of shares of Class A common stock per share

Basic

$

2.14

$

2.14

Diluted

$

1.97

$

1.99

(a)

Reflects a reclassification of $0.4 million of other income to compensation and benefits expense associated with the enforcement of non-compete provisions.

(b)

TRA liability adjustments are made to other income (expenses) for GAAP purposes. These adjustments are reclassified to provision for income taxes to reflect the net tax-economic impact.

(c)

An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. The tax provision includes the reversal of approximately $7.7 million of tax benefit pursuant to the CARES Act accrued in prior periods.

(d)

Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

Three Months Ended December 31, 2019

Adjusted items

GAAP

Adjustments

Adjusted

(non-GAAP)

Compensation and benefits

$

172,096

$

(5,180

)

(a)(b)

$

166,916

Other income (expenses)

11,549

(5,180

)

(a)(b)

6,369

Income (loss) before income taxes

28,301

–

28,301

Provision for income taxes

1,151

745

(c)

1,896

Net income (loss)

27,150

(745

)

26,405

Net income (loss) attributable to noncontrolling interests

5,699

(5,699

)

(d)

–

Net income (loss) attributable to Moelis & Company

$

21,451

$

4,954

$

26,405

Weighted-average shares of Class A common stock outstanding

Basic

51,648,050

12,958,022

(d)

64,606,072

Diluted

56,316,374

12,958,022

(d)

69,274,396

Net income (loss) attributable to holders of shares of Class A common stock per share

Basic

$

0.42

$

0.41

Diluted

$

0.38

$

0.38

(a)

Reflects a reclassification of $0.2 million of other income to compensation and benefits expense associated with the enforcement of non-compete provisions.

(b)

Reflects the reclassification of $5.0 million of compensation and benefits expense associated with the Firm’s $8.1 million gain on its sale of 8.0 million shares of Moelis Australia. The net gain remaining within other income (expenses) associated with this sale is $3.1 million.

(c)

An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our tax provision includes an excess tax benefit related to the settlement of share-based awards of $4.9 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 24.1%.

(d)

Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

Twelve Months Ended December 31, 2020

Adjusted items

GAAP

Adjustments

Adjusted

(non-GAAP)

Compensation and benefits

$

560,803

$

(1,291

)

(a)

$

559,512

Other income (expenses)

4,404

(2,393

)

(a)(b)

2,011

Income (loss) before income taxes

270,113

(1,102

)

269,011

Provision (benefit) for income taxes

51,675

8,272

(b)(c)

59,947

Net income (loss)

218,438

(9,374

)

209,064

Net income (loss) attributable to noncontrolling interests

39,607

(39,607

)

(d)

–

Net income (loss) attributable to Moelis & Company

$

178,831

$

30,233

$

209,064

Weighted-average shares of Class A common stock outstanding

Basic

56,566,645

11,226,666

(d)

67,793,311

Diluted

60,723,365

11,226,666

(d)

71,950,031

Net income (loss) attributable to holders of shares of Class A common stock per share

Basic

$

3.16

$

3.08

Diluted

$

2.95

$

2.91

(a)

Reflects a reclassification of $1.3 million of other income to compensation and benefits expense associated with the forfeiture of fully vested awards and enforcement of non-compete provisions.

(b)

TRA liability adjustments are made to other income (expenses) for GAAP purposes. These adjustments are reclassified to provision for income taxes to reflect the net tax-economic impact.

(c)

An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our tax provision includes a tax benefit related to the settlement of share-based awards of $8.7 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 25.5%.

(d)

Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

Twelve Months Ended December 31, 2019

Adjusted items

GAAP

Adjustments

Adjusted

(non-GAAP)

Compensation and benefits

$

488,439

$

(18,185

)

(a)(b)(c)

$

470,254

Other income (expenses)

32,962

(17,085

)

(b)(c)

15,877

Income (loss) before income taxes

147,505

1,100

148,605

Provision for income taxes

11,813

2,610

(d)

14,423

Net income (loss)

135,692

(1,510

)

134,182

Net income (loss) attributable to noncontrolling interests

30,597

(30,597

)

(e)

–

Net income (loss) attributable to Moelis & Company

$

105,095

$

29,087

$

134,182

Weighted-average shares of Class A common stock outstanding

Basic

50,373,874

13,003,248

(e)

63,377,122

Diluted

55,513,149

13,003,248

(e)

68,516,397

Net income (loss) attributable to holders of shares of Class A common stock per share

Basic

$

2.09

$

2.12

Diluted

$

1.89

$

1.96

(a)

Expense associated with the amortization of RSUs and stock options granted in connection with the IPO. In accordance with GAAP, amortization expense of RSUs and stock options granted in connection with the IPO will be recognized over the five year vesting period; as of April 2019 such awards have been fully expensed.

(b)

Reflects a reclassification of $4.8 million of other income to compensation and benefits expense associated with the forfeiture of fully vested awards and enforcement of non-compete provisions.

(c)

Reflects the reclassification of $12.3 million of compensation and benefits expense associated with the Firm’s $20.7 million gain on its sale of 20.5 million shares of Moelis Australia. The net gain remaining within other income (expenses) associated with this sale is $8.4 million.

(d)

An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our tax provision includes an excess tax benefit related to the settlement of share-based awards of $22.7 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 25.0%.

(e)

Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005948/en/

Investor Contact:

Chett Mandel

Moelis & Company

t: + 1 212 883 3536

[email protected]

Media Contact:

Andrea Hurst

Moelis & Company

t: + 1 212 883 3666

m: +1 347 583 9705

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Consulting Banking Professional Services Finance

MEDIA:

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Posted on February 10, 2021 4:18 pm
Lydall to Report Fourth Quarter 2020 Results

MANCHESTER, Conn., Feb. 10, 2021 (GLOBE NEWSWIRE) — Lydall, Inc. (NYSE: LDL) announced today that it will release its financial results for the fourth quarter ended December 31, 2020 on Tuesday, February 23, 2021 after the market closes. A conference call will be held on Wednesday, February 24, 2021 at 10:00 a.m. Eastern Time and be hosted by:

Sara A. Greenstein, President and Chief Executive Officer;

Randall B. Gonzales, Executive Vice President and Chief Financial Officer; and

Brendan Moynihan, Vice President, Investor Relations.

Those interested may listen or participate in the conference call by calling 888-338-7142 or 412-902-4181, internationally. In addition, the audio of the call will be webcast live and will be available for replay at http://www.lydall.com in the Investor Relations Section.

A recording of the call will be available from 12:00 p.m. Eastern Time on February 24, 2021 through 11:59 p.m. Eastern Time on March 3, 2021 at 877-344-7529 or 412-317-0088, internationally; passcode 10152279.

Lydall, Inc. is a New York Stock Exchange listed company, headquartered in Manchester, Connecticut with global manufacturing operations producing specialty engineered products for the thermal/acoustical and filtration/separation markets. For more information, visit http://www.lydall.com. Lydall® is a registered trademark of Lydall, Inc. in the U.S. and other countries.

For further information contact: Brendan Moynihan Vice President, Investor Relations Telephone 860-646-1233 Facsimile 860-646-8847 www.lydall.com [email protected]

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