Market Newsdesk

February 23, 2021 4:10 pm

Pebblebrook Hotel Trust Reports 2020 Results

Pebblebrook Hotel Trust Reports 2020 Results

BETHESDA, Md.–(BUSINESS WIRE)–
Pebblebrook Hotel Trust (NYSE: PEB):

OPERATING STATUS OF HOTELS AND RESORTS	38 hotels and resorts currently open, which is approximately three-fourths of the Company’s portfolio; these 38 properties accounted for 73% of the Company’s 2019 Hotel EBITDA As expected, demand softened in November and December of 2020 compared with prior months due to the typical seasonal winter slowdown in travel and increased government restrictions in response to the dramatic rise in COVID infections nationwide. The softer demand trends continued into January 2021. However, the Company is encouraged that hotel demand and booking trends for February and March have improved materially from January. The Company’s remaining suspended hotels are expected to re-open in the coming months as demand recovers.

AVERAGE MONTHLY CASH BURN	During the fourth quarter of 2020, monthly cash burn at the Company’s hotels averaged in the range of its previous estimate of $5 to $8 million, with December running at approximately $9 million, due to typical winter seasonality and a dramatic rise in COVID-19 cases and government restrictions. Total monthly corporate cash burn in the fourth quarter of 2020 averaged in the range of its previous estimate, running at $16 to $21 million.

BALANCE SHEET & LIQUIDITY	In December, the Company issued $500.0 million of convertible senior unsecured notes with a 1.75% coupon and reopened the securities in Q1 raising an additional $263.75 million. Proceeds from these offerings increased the Company’s liquidity and reduced near term outstanding debt. On February 18, 2021, the Company and its lending partners agreed to amend its credit agreements to waive financial covenants until the first quarter of 2022 and provide substantially less restrictive covenants and increased investment flexibility through the end of the first quarter of 2023. Currently, the Company has cash on hand of approximately $127 million and liquidity of approximately $770 million, which includes $643.2 million available on the Company’s $650.0 million revolving credit facility. Net debt to depreciated book value at the end of Q4 2020 was 39%

Q1 2021 OUTLOOK	Given the uncertainties related to the pandemic, its impact on travel, and variable and unpredictable government restrictions, the Company is unable to provide an outlook for 2021 at this time. Based on our January preliminary results, and February’s results and trends, the Company anticipates Q1 2021 revenues will likely be roughly in-line with Q4 2020, with Same-Property Room Revenues currently estimated to decline 80% to 81% compared with Q1 2019.

⁽¹⁾See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures.

“As we close what has been an unprecedented year, I am incredibly proud of our hotel team members and corporate employees in all that we accomplished throughout 2020. From the onset of COVID-19, we quickly rallied together to mitigate the pandemic’s effects by successfully reducing costs and capitalizing on our strategic initiatives. Despite the challenging environment, we completed approximately $400 million of property dispositions at very attractive values. We successfully issued $750 million of highly attractive convertible notes, which significantly enhanced our liquidity, allowed us to pay down near-term debt maturities and provided for future debt to equity conversion at very favorable equity pricing. We also completed numerous transformative property renovations and redevelopments, including San Diego Mission Bay Resort, Viceroy Santa Monica Hotel, Chaminade Resort & Spa, Hotel Zena Washington DC, Le Parc Suite Hotel West Hollywood and Viceroy Washington DC. And in November, we launched Curator Hotel & Resort Collection with six industry-leading hotel operators as founding members. We believe that Curator will generate significant future value for our shareholders as we rapidly add new member hotels and increase the cost-saving offerings and benefits provided by Curator. 2020 marked the most challenging year for the hotel industry in decades, and the most challenging ever for Pebblebrook. However, our combined strategic actions and tireless hard work have set the foundation for 2021, which we expect to be a year of gradual recovery as leisure and business travel demand returns. We are cautiously optimistic that we will return to profitability in the second half of this year, and we feel confident we are in a great position for significant growth and investment opportunities in the years ahead.”

–Jon E. Bortz, Chairman, President, and Chief Executive Officer of Pebblebrook Hotel Trust

Fourth Quarter and Full-Year Highlights

	Fourth Quarter		Year Ended December 31,
	2020	2019	2020	2019
	($ in millions except per share and RevPAR data)
Net income (loss)	($173.2)	$19.6	($392.6)	$115.7


Same-Property Room Revenues⁽¹⁾	$48.0	$235.1	$279.8	$1,019.8
Same-Property Room Revenues growth rate	(79.6%)		(72.6%)

Same-Property Total Revenues⁽¹⁾	$74.0	$353.2	$429.0	$1,490.5
Same-Property Total Revenues growth rate	(79.1%)		(71.2%)

Same-Property Total Expenses⁽¹⁾	$93.9	$251.8	$468.4	$1,014.5
Same-Property Total Expense growth rate	(62.7%)		(53.8%)

Same-Property EBITDA⁽¹⁾	($19.9)	$101.4	($39.4)	$476.0
Same-Property EBITDA growth rate	(119.7%)		(108.3%)

Adjusted EBITDAre⁽¹⁾	($27.9)	$100.1	($69.7)	$478.7
Adjusted EBITDAre growth rate	(127.8%)		(114.6%)

Adjusted FFO⁽¹⁾	($65.4)	$71.3	($191.4)	$344.1
Adjusted FFO per diluted share⁽¹⁾	($0.50)	$0.54	($1.46)	$2.63
Adjusted FFO per diluted share growth rate	(192.6%)		(155.5%)

⁽¹⁾		See tables later in this press release for a description of same-property information and reconciliations from net income (loss) to non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA for Real Estate (“EBITDAre”), Adjusted EBITDAre, Funds from Operations (“FFO”), FFO per share, Adjusted FFO and Adjusted FFO per share.

		For the details as to which hotels are included in Same-Property Room Revenues, Total Revenues, Expenses and EBITDA appearing in the table above and elsewhere in this press release, refer to the Same-Property Statistical Data table footnotes later in this press release.

“In response to the challenging operating environment caused by the COVID-19 pandemic, we shifted quickly to protect the health and safety of our guests and team members by implementing new operating standards, cleaning protocols, and social distancing measures,” noted Mr. Bortz. “As vaccine distribution progresses, we expect that travel demand will steadily recover, led first by leisure travelers, then transient business travelers in the second half of 2021, and finally group will be the last to return, particularly large group meetings, late in 2021.”

The Company’s portfolio operating trends improved through October, driven by healthy leisure travel demand and some slow recovery in business travel. However, following October’s peak performance, fundamentals weakened due primarily to a surge in COVID-19 cases and increased government restrictions. During the fourth quarter, occupancy at our open hotels declined from 37.9 percent in October to 29.0 percent in November, to 19.8 percent in December. The Company’s open hotels generated ($5.9) million of Hotel EBITDA in the quarter. The Company’s resort portfolio, of which all 8 properties were open throughout the quarter, generated $7.3 million of Hotel EBITDA, with an occupancy of 39.6 percent and an ADR of $302.16, a rate that was 14.8 percent higher than last year’s fourth quarter.

Estimated Monthly Cash Burn

The Company estimates that its monthly cash burn for the fourth quarter averaged between approximately $16.0 to $21.0 million (excluding capital investments) based on the following:

Average hotel-level monthly cash burn of approximately $7.0 million, which was approximately $3.0 million in October, but increased to approximately $9.0 million in December, excluding one-time expenses;
Corporate-level monthly G&A cash burn of $2.0 million; and
Corporate finance-related monthly cash burn of $12.0 million, which includes interest payments on the Company’s outstanding debt as well as both common and preferred dividend payments.

However, the first quarter’s monthly cash burn is likely to be slightly higher than the fourth quarter. Thereafter, assuming progress on reducing the impact of the virus through mitigation measures and widespread vaccinations, monthly cash burn is expected to decline, and should be eliminated sometime mid-year, as the travel recovery takes hold as the year progresses, demand gradually improves, recently reopened hotel performance ramps up, and additional hotels reopen.

Capital Investments and Strategic Property Redevelopments

In the fourth quarter, the Company completed $14.6 million of capital investments throughout its portfolio. The Company completed $125.0 million of capital investments and projects in 2020, including the completion of major renovations and property improvements at Hotel Zena Washington DC (formerly Donovan Hotel), Embassy Suites San Diego Bay – Downtown, The Westin San Diego Gaslamp Quarter, Le Parc Suite Hotel, San Diego Mission Bay Resort (formerly Hilton San Diego Resort & Spa), Viceroy Santa Monica Hotel, Chaminade Resort & Spa, Viceroy Washington DC (formerly Mason & Rook Hotel) and The Marker Key West Harbor Resort.

In 2021, the Company intends to complete the following redevelopments:

L’Auberge Del Mar (estimated at $10.5 million), a major redevelopment, including guestrooms and a dramatic transformation and expansion of the luxury property’s public spaces, including indoor and outdoor event and meeting spaces, bars, the pool, and the creation of an outdoor restaurant with ocean views, and the addition of a coffee café, all of which are expected to be completed in the second quarter of 2021; and

Southernmost Beach Resort (estimated at $15.0 million), a comprehensive guestroom renovation including all case goods, soft goods, and bathrooms, including tub to shower conversions, targeted to be completed in the third quarter of 2021.

If fundamentals strengthen, the Company will evaluate commencing additional previously planned major renovation and repositioning projects later in 2021.

Balance Sheet and Liquidity

As of December 31, 2020, the Company had $136.3 million of consolidated cash, cash equivalents, and restricted cash in addition to $603.2 million of additional undrawn availability on its senior unsecured revolving credit facility, for a total of $739.5 million of liquidity. The Company had $2.4 billion in consolidated unsecured debt at an effective weighted-average interest rate of 3.4 percent. Two billion dollars, or 84 percent of the Company’s total outstanding debt, was at a weighted-average fixed interest rate of 3.6 percent, and $0.4 billion, or 16 percent, was at a weighted-average floating interest rate of 2.4 percent. Of the Company’s outstanding debt, $1.8 billion was in the form of unsecured term loans, and $40.0 million was outstanding on its $650.0 million senior unsecured revolving credit facility. The Company has no loans maturing until 2022.

On December 15, 2020, the Company successfully executed a public offering of $500.0 million aggregate principal amount of convertible unsecured senior notes with a 6-year term, a 1.75% coupon and an equity conversion price up 35% (equivalent to $25.47/share). The Company also purchased a call spread option up 75% (equivalent to $33.02/share). Proceeds from this initial offering were used to reduce the Company’s outstanding debt and increase liquidity.

On February 9, 2021, the Company completed a public offering for $250.0 million aggregate principal amount of its previously issued 1.75% convertible unsecured senior notes. The notes were sold at a 5.5% premium to par (gross proceeds of $263.75 million). Proceeds from this offering were used primarily to reduce the outstanding balance on the Company’s senior unsecured revolving credit facility and $177.0 million of its 2021 and 2022 debt maturities. The Company also purchased a call spread option equivalent to that of the initial offering.

On February 18, 2021, the Company amended the agreements governing its outstanding debt, including its $650.0 million senior unsecured revolving credit facility, $1.6 billion of unsecured term loans and working capital facilities, and $100.0 million unsecured private placement senior notes. The Company’s amended credit agreements and related documents waive all financial covenants through the end of 2021 and most financial covenants through the first quarter of 2022, and provide substantially less restrictive covenants through the end of the first quarter of 2023. The amendment also provides the Company with enhanced flexibility to complete property renovations, acquisitions, and other investments during the waiver period. Approximately $21.0 million of November 2021 debt maturities were also extended to November 2022.

Common and Preferred Dividends

On December 15, 2020, the Company declared a quarterly cash dividend of $0.01 per share on its common shares as well as a regular quarterly cash dividend for the following preferred shares of beneficial interest:

$0.40625 per 6.50% Series C Cumulative Redeemable Preferred Share;
$0.39844 per 6.375% Series D Cumulative Redeemable Preferred Share;
$0.39844 per 6.375% Series E Cumulative Redeemable Preferred Share; and
$0.39375 per 6.30% Series F Cumulative Redeemable Preferred Share.

Update on Strategic Dispositions

The Company completed a total of $387.0 million of sales in 2020 and an additional $12.0 million in January 2021. On March 6, 2020, the Company sold the InterContinental Buckhead Atlanta and Sofitel Washington DC Lafayette Square for $331.0 million. On July 29, 2020, the Company sold Union Station Hotel Nashville, Autograph Collection for $56.0 million. Finally, on January 25, 2021, the Company announced the monetization of rooftop wireless leases at 11 of its hotels for $12.0 million of net proceeds.

On February 3, 2021, the Company announced that it had executed a contract to sell the Sir Francis Drake, which the Company expects will generate approximately $157.6 million of proceeds. The sale is expected to be completed during the second quarter of 2021.

Curator Hotel & Resort Collection

On November 17, 2020, the Company and six industry-leading hotel operators jointly announced the launch of Curator Hotel & Resort Collection. Curator’s distinct owner-centric platform offers an alternative for independent lifestyle hotels looking to strengthen their performance, providing them with best-in-class agreements, services and technology, while allowing them to retain their unique identities.

2021 Outlook

The Company continues to be unable to provide a full-year outlook for 2021 due to the uncertainties caused by the COVID-19 pandemic. It intends to issue new guidance when it has more clarity on government restrictions, advances in health solutions, the economy, travel demand, and more predictable overall operating fundamentals and trends.

Fourth Quarter 2020 Earnings Call

The Company will conduct its quarterly analyst and investor conference call on Wednesday, February 24, 2021, at 9:00 AM ET. Please dial (877) 705-6003 approximately ten minutes before the call begins to participate in the conference call. Additionally, a live webcast of the conference call will be available through the Company’s website. To access the webcast, log on to www.pebblebrookhotels.com ten minutes before the conference call. A replay of the conference call webcast will be archived and available online through the Investor Relations section of www.pebblebrookhotels.com.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 53 hotels, totaling approximately 13,200 guestrooms across 14 urban and resort markets, with a focus on the west coast gateway cities. For more information, visit www.pebblebrookhotels.com and follow us at @PebblebrookPEB.

This press release contains certain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “forecast,” “continue,” “assume,” “plan,” references to “outlook” or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections and forecasts and other forward-looking information and estimates. Examples of forward-looking statements include the following: projections and forecasts of the Company’s cash burn rate; descriptions of the Company’s plans or objectives for future capital investment projects, operations or services; forecasts of the Company’s future economic performance; forecasts of hotel industry performance; forecasts of future value of Curator to shareholders; and descriptions of assumptions underlying or relating to any of the foregoing expectations including assumptions regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy and the supply of hotel properties, and other factors as are described in greater detail in the Company’s filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information about the Company’s business and financial results, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company’s website at www.pebblebrookhotels.com.

All information in this press release is as of February 23, 2021. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company’s expectations.

For additional information or to receive press releases via email, please visit our website at www.pebblebrookhotels.com


Pebblebrook Hotel Trust
Consolidated Balance Sheets
($ in thousands, except share and per-share data)

	December 31, 2020			December 31, 2019

ASSETS
Assets:
Investment in hotel properties, net	$	5,882,022		$	6,332,587
Cash and cash equivalents		124,274			30,098
Restricted cash		12,026			26,777
Hotel receivables (net of allowance for doubtful accounts of $183 and $738, respectively)		10,225			49,619
Prepaid expenses and other assets		47,819			59,474
Total assets	$	6,076,366		$	6,498,555



LIABILITIES AND EQUITY

Liabilities:
Unsecured revolving credit facilities	$	40,000		$	165,000
Unsecured term loans, net of unamortized deferred financing costs		1,766,545			1,964,657
Senior convertible notes, net of unamortized debt discount and deferred financing costs		374,333			–
Senior unsecured notes, net of unamortized deferred financing costs		99,593			99,563
Accounts payable, accrued expenses and other liabilities		226,446			260,166
Lease liabilities – operating leases		255,106			256,271
Deferred revenues		36,057			57,704
Accrued interest		4,653			4,694
Distribution payable		9,307			58,564
Total liabilities		2,812,040			2,866,619
Commitments and contingencies

Shareholders’ Equity:
Preferred shares of beneficial interest, $0.01 par value (liquidation preference $510,000 at December 31, 2020 and December 31, 2019), 100,000,000 shares authorized; 20,400,000 shares issued and outstanding at December 31, 2020 and December 31, 2019		204			204
Common shares of beneficial interest, $0.01 par value, 500,000,000 shares authorized; 130,673,300 shares issued and outstanding at December 31, 2020 and 130,484,956 shares issued and outstanding at December 31, 2019		1,307			1,305
Additional paid-in capital		4,169,870			4,069,410
Accumulated other comprehensive income (loss)		(60,071	)		(24,715	)
Distributions in excess of retained earnings		(853,973	)		(424,996	)
Total shareholders’ equity		3,257,337			3,621,208
Non-controlling interests		6,989			10,728
Total equity		3,264,326			3,631,936
Total liabilities and equity	$	6,076,366		$	6,498,555


Pebblebrook Hotel Trust
Consolidated Statements of Operations
($ in thousands, except share and per-share data)


	Three months ended December 31,						Year ended December 31,
	2020			2019			2020			2019
	(Unaudited)
Revenues:
Room	$	48,160		$	252,048		$	287,439		$	1,103,947
Food and beverage		13,257			95,781			95,892			370,584
Other operating		12,792			31,580			59,557			137,682
Total revenues	$	74,209		$	379,409		$	442,888		$	1,612,213

Expenses:
Hotel operating expenses:
Room	$	16,381		$	66,148		$	91,771		$	275,855
Food and beverage		11,554			65,297			77,698			260,278
Other direct and indirect		38,501			107,418			209,957			438,035
Total hotel operating expenses		66,436			238,863			379,426			974,168
Depreciation and amortization		56,516			57,504			224,560			234,880
Real estate taxes, personal property taxes, property insurance, and ground rent		29,160			31,004			114,333			125,013
General and administrative		6,899			8,294			45,158			34,047
Transaction costs		70			1,103			10,544			8,679
Impairment loss		53,986			–			74,556			–
(Gain) loss on sale of hotel properties		–			(2,819	)		(117,401	)		(2,819	)
(Gain) loss and other operating expenses		668			2,684			4,421			8,903
Total operating expenses		213,735			336,633			735,597			1,382,871
Operating income (loss)		(139,526	)		42,776			(292,709	)		229,342
Interest expense		(28,902	)		(23,962	)		(104,098	)		(108,474	)
Other		75			6			517			29
Income (loss) before income taxes		(168,353	)		18,820			(396,290	)		120,897
Income tax (expense) benefit		(4,834	)		752			3,697			(5,172	)
Net income (loss)		(173,187	)		19,572			(392,593	)		115,725
Net income (loss) attributable to non-controlling interests		(329	)		29			(864	)		283
Net income (loss) attributable to the Company		(172,858	)		19,543			(391,729	)		115,442
Distributions to preferred shareholders		(8,139	)		(8,139	)		(32,556	)		(32,556	)
Net income (loss) attributable to common shareholders	$	(180,997	)	$	11,404		$	(424,285	)	$	82,886


Net income (loss) per share available to common shareholders, basic	$	(1.39	)	$	0.08		$	(3.25	)	$	0.63
Net income (loss) per share available to common shareholders, diluted	$	(1.39	)	$	0.08		$	(3.25	)	$	0.63

Weighted-average number of common shares, basic		130,673,300			130,484,956			130,610,015			130,471,670
Weighted-average number of common shares, diluted		130,673,300			130,669,494			130,610,015			130,718,306


Pebblebrook Hotel Trust
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
($ in thousands, except share and per-share data)
(Unaudited)

	Three months ended December 31,						Year ended December 31,
	2020			2019			2020			2019

Net income (loss)	$	(173,187	)	$	19,572		$	(392,593	)	$	115,725
Adjustments:
Depreciation and amortization		56,408			57,396			224,124			234,591
(Gain) loss on sale of hotel properties		–			(2,819	)		(117,401	)		(2,819	)
Impairment loss		53,986			–			74,556			–
FFO	$	(62,793	)	$	74,149		$	(211,314	)	$	347,497
Distribution to preferred shareholders		(8,139	)		(8,139	)		(32,556	)		(32,556	)
FFO available to common share and unit holders	$	(70,932	)	$	66,010		$	(243,870	)	$	314,941
Transaction costs		70			1,103			10,544			8,679
Non-cash ground rent		910			701			3,730			3,975
Management/franchise contract transition costs		196			1,143			814			5,927
Interest expense adjustment for acquired liabilities		1,205			213			1,981			902
Finance lease adjustment		808			1,000			3,213			3,193
Non-cash amortization of acquired intangibles		607			(290	)		(322	)		(1,340	)
Gain on insurance settlement		–			–			–			(672	)
Business interruption proceeds		–			–			–			672
Non-cash interest expense		1,380			1,379			5,502			6,140
One-time operation suspension expenses		(707	)		–			9,997			–
Non-cash canceled share-based compensation		–			–			16,001			–
Early extinguishment of debt		1,024			–			1,024			1,698
Adjusted FFO available to common share and unit holders	$	(65,439	)	$	71,259		$	(191,386	)	$	344,115

FFO per common share – basic	$	(0.54	)	$	0.50		$	(1.86	)	$	2.41
FFO per common share – diluted	$	(0.54	)	$	0.50		$	(1.86	)	$	2.40
Adjusted FFO per common share – basic	$	(0.50	)	$	0.54		$	(1.46	)	$	2.63
Adjusted FFO per common share – diluted	$	(0.50	)	$	0.54		$	(1.46	)	$	2.63

Weighted-average number of basic common shares and units		130,934,016			130,854,912			130,870,731			130,841,626
Weighted-average number of fully diluted common shares and units		130,934,016			131,039,450			130,870,731			131,088,262

This press release includes certain non-GAAP financial measures. These measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.

Funds from Operations (“FFO”) – FFO represents net income (computed in accordance with GAAP), excluding gains or losses from sales of properties, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships. The Company considers FFO a useful measure of performance for an equity REIT because it facilitates an understanding of the Company’s operating performance without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, the Company believes that FFO provides a meaningful indication of its performance. The Company also considers FFO an appropriate performance measure given its wide use by investors and analysts. The Company computes FFO in accordance with standards established by the Board of Governors of Nareit in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to that of other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties, nor is it indicative of funds available to fund the Company’s cash needs, including its ability to make distributions. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding Operating Partnership units for the periods presented.

The Company also evaluates its performance by reviewing Adjusted FFO because it believes that adjusting FFO to exclude certain recurring and non-recurring items described below provides useful supplemental information regarding the Company’s ongoing operating performance and that the presentation of Adjusted FFO, when combined with the primary GAAP presentation of net income (loss), more completely describes the Company’s operating performance. The Company adjusts FFO available to common share and unit holders for the following items, which may occur in any period, and refers to this measure as Adjusted FFO:

– Transaction costs: The Company excludes transaction costs expensed during the period because it believes that including these costs in FFO does not reflect the underlying financial performance of the Company and its hotels.
– Non-cash ground rent: The Company excludes the non-cash ground rent expense, which is primarily made up of the straight-line rent impact from a ground lease.
– Management/franchise contract transition costs: The Company excludes one-time management and/or franchise contract transition costs expensed during the period because it believes that including these costs in FFO does not reflect the underlying financial performance of the Company and its hotels.
– Interest expense adjustment for acquired liabilities: The Company excludes interest expense adjustment for acquired liabilities assumed in connection with acquisitions, because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company.
– Finance lease adjustment: The Company excludes the effect of non-cash interest expense from finance leases because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company.
– Non-cash amortization of acquired intangibles: The Company excludes the non-cash amortization of acquired intangibles, which includes but is not limited to the amortization of favorable and unfavorable leases or management agreements and above/below market real estate tax reduction agreements because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company.
– Gain on insurance settlement: The Company excludes the gain on insurance settlement because the Company believes that including this adjustment in FFO does not reflect the underlying financial performance of the Company and its hotels.
– Business interruption proceeds: The Company includes business interruption proceeds because the Company believes that including these proceeds reflects the underlying financial performance of the Company and its hotels.
– Non-cash interest expense, one-time operation suspension expenses, non-cash canceled share-based compensation and early extinguishment of debt: The Company excludes these items because the Company believes that including these adjustments in FFO does not reflect the underlying financial performance of the Company and its hotels.

The Company’s presentation of FFO in accordance with the Nareit White Paper, and as adjusted by the Company, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity.


Pebblebrook Hotel Trust
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
($ in thousands)
(Unaudited)

	Three months ended December 31,						Year ended December 31,
	2020			2019			2020			2019

Net income (loss)	$	(173,187	)	$	19,572		$	(392,593	)	$	115,725
Adjustments:
Interest expense		28,902			23,962			104,098			108,474
Income tax expense (benefit)		4,834			(752	)		(3,697	)		5,172
Depreciation and amortization		56,516			57,504			224,560			234,880
EBITDA	$	(82,935	)	$	100,286		$	(67,632	)	$	464,251
(Gain) loss on sale of hotel properties		–			(2,819	)		(117,401	)		(2,819	)
Impairment loss		53,986			–			74,556			–
EBITDAre	$	(28,949	)	$	97,467		$	(110,477	)	$	461,432
Transaction costs		70			1,103			10,544			8,679
Non-cash ground rent		910			701			3,730			3,975
Management/franchise contract transition costs		196			1,143			814			5,927
Non-cash amortization of acquired intangibles		607			(290	)		(322	)		(1,340	)
Gain on insurance settlement		–			–			–			(672	)
Business interruption proceeds		–			–			–			672
One-time operation suspension expenses		(707	)		–			9,997			–
Non-cash canceled share-based compensation		–			–			16,001			–
Adjusted EBITDAre	$	(27,873	)	$	100,124		$	(69,713	)	$	478,673

Earnings before Interest, Taxes, and Depreciation and Amortization (“EBITDA”) – The Company believes that EBITDA provides investors a useful financial measure to evaluate its operating performance, excluding the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization).

Earnings before Interest, Taxes, and Depreciation and Amortization for Real Estate (“EBITDAre”) – The Company believes that EBITDAre provides investors a useful financial measure to evaluate its operating performance, and the Company presents EBITDAre in accordance with the National Association of Real Estate Investment Trusts (“Nareit”) guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate.” EBITDAre adjusts EBITDA for the following items, which may occur in any period, and refers to these measures as Adjusted EBITDAre: (1) gains or losses on the disposition of depreciated property, including gains or losses on change of control; (2) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (3) adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.

The Company also evaluates its performance by reviewing Adjusted EBITDAre because it believes that adjusting EBITDAre to exclude certain recurring and non-recurring items described below provides useful supplemental information regarding the Company’s ongoing operating performance and that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income (loss), more completely describes the Company’s operating performance. The Company adjusts EBITDAre for the following items, which may occur in any period, and refers to these measures as Adjusted EBITDAre:

– Transaction costs: The Company excludes transaction costs expensed during the period because it believes that including these costs in EBITDAre does not reflect the underlying financial performance of the Company and its hotels.
– Non-cash ground rent: The Company excludes the non-cash ground rent expense, which is primarily made up of the straight-line rent impact from a ground lease.
– Management/franchise contract transition costs: The Company excludes one-time management and/or franchise contract transition costs expensed during the period because it believes that including these costs in EBITDAre does not reflect the underlying financial performance of the Company and its hotels.
– Non-cash amortization of acquired intangibles: The Company excludes the non-cash amortization of acquired intangibles, which includes but is not limited to the amortization of favorable and unfavorable leases or management agreements and above/below market real estate tax reduction agreements because it believes that including these non-cash adjustments in EBITDAre does not reflect the underlying financial performance of the Company and its hotels.
– Gain on insurance settlement: The Company excludes the gain on insurance settlement because the Company believes that including this adjustment in EBITDAre does not reflect the underlying financial performance of the Company and its hotels.
– Business interruption proceeds: The Company includes business interruption proceeds because the Company believes that including these proceeds reflects the underlying financial performance of the Company and its hotels.
– One-time operation suspension expenses and non-cash canceled share-based compensation: The Company excludes these items because it believes that including these costs in EBITDAre does not reflect the underlying financial performance of the Company and its hotels.

The Company’s presentation of EBITDAre, and as adjusted by the Company, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity.


Pebblebrook Hotel Trust
Strategic Disposition Program Summary
(Unaudited)

	Date of disposition	Sales price ($ in millions)		EBITDA multiple	Net operating capitalization rate		Sales price per key ($ in thousands)
	Date of disposition	Sales price ($ in millions)		EBITDA multiple	Net operating capitalization rate		Sales price per key ($ in thousands)

Hotel dispositions:
Park Central San Francisco and Park
Central New York / WestHouse New York	11/30/2018	$	715.0	16.5x	5.1	%	$	443
Gild Hall, New York	11/30/2018		38.8	15.8x	5.3	%		298
Embassy Suites Philadelphia Center City	11/30/2018		67.0	11.0x	8.1	%		233
The Grand Hotel Minneapolis	12/4/2018		30.0	8.5x	10.4	%		214
The Liaison Capitol Hill	2/14/2019		111.0	16.9x	4.9	%		324
Hotel Palomar Washington, DC	2/22/2019		141.5	14.9x	5.9	%		422
Onyx Hotel	5/29/2019		58.3	15.3x	5.9	%		521
Hotel Amarano Burbank	7/16/2019		72.9	15.8x	5.7	%		552
Rouge Hotel	9/12/2019		42.0	17.4x	5.0	%		307
Hotel Madera	9/26/2019		23.3	14.3x	5.7	%		284
Topaz Hotel	11/22/2019		33.1	19.5x	4.4	%		334
InterContinental Buckhead Atlanta /
Sofitel Washington DC Lafayette Square	3/6/2020		331.0	14.2x	6.1	%		502
Union Station Hotel Nashville, Autograph Collection	7/29/2020		56.0	8.1x	11.1	%		448

Total / Average		$	1,720	14.8x	5.82	%	$	410

The EBITDA multiple and net operating capitalization rate are based on the applicable hotel’s estimated trailing twelve-month operating performance for 2018. The net operating income capitalization rate is based on an assumed annual capital reserve of 4.0% of total hotel revenues. The EBITDA Multiple and net operating capitalization rate for Hotel Amarano Burbank reflect an estimated adjustment for the annualized impact of real estate taxes for California’s Proposition 13 because the Company believes the adjusted hotel results for this period provide investors and analysts with an understanding of the hotel-level operating performance.

These hotel results for the respective periods may include information reflecting operational performance prior to the Company’s ownership of the hotels. Any differences are a result of rounding.

The information above has not been audited and is presented only for comparison purposes.


Pebblebrook Hotel Trust
Same-Property Statistical Data
(Unaudited)

	Three months ended December 31,		Year ended December 31,
	2020	2019	2020	2019

Same-Property Occupancy	20.5%	79.4%	25.0%	82.3%
Increase/(Decrease)	(74.2%)		(69.6%)
Same-Property ADR	$195.34	$247.02	$232.61	$258.10
Increase/(Decrease)	(20.9%)		(9.9%)
Same-Property RevPAR	$40.01	$196.01	$58.13	$212.51
Increase/(Decrease)	(79.6%)		(72.6%)

Same-Property Total RevPAR	$61.64	$294.53	$89.14	$310.62
Increase/(Decrease)	(79.1%)		(71.3%)

While the operations of many of the Company’s hotels were temporarily suspended beginning in March 2020, this schedule of hotel results for the three months ended December 31 includes information from all of the hotels the Company owned as of December 31, 2020 but excludes Hotel Zena Washington DC, formerly known as Donovan Hotel, for Q4 in both 2020 and 2019 because it was closed during the fourth quarter of 2019 for renovation. This schedule of hotel results for the year ended December 31 includes information from all of the hotels the Company owned as of December 31, 2020 but excludes Hotel Zena Washington DC, formerly known as Donovan Hotel, for Q1, Q2 and Q4 in both 2020 and 2019 because it was closed during the first and second quarters of 2020 and the fourth quarter of 2019 for renovation and also excludes Union Station Hotel Nashville, Autograph Collection for Q3 and Q4 in both 2020 and 2019 due to its sale in the third quarter of 2020.

Any differences are a result of rounding.

The information above has not been audited and is presented only for comparison purposes.


Pebblebrook Hotel Trust
Same-Property Statistical Data – by Market
(Unaudited)

	Three months ended December 31,	Year ended December 31,
	2020	2020
Same-Property RevPAR variance to prior-year period:
Southern Florida	(28.5%)	(35.5%)
San Diego	(64.8%)	(60.0%)
Boston	(73.6%)	(76.5%)
Portland	(79.5%)	(75.3%)
Other	(80.9%)	(75.1%)
Los Angeles	(82.3%)	(73.0%)
Washington DC	(92.5%)	(84.1%)
Seattle	(94.2%)	(85.7%)
Chicago	(98.1%)	(88.0%)
San Francisco	(98.3%)	(80.5%)

East Coast	(68.0%)	(69.2%)
West Coast	(84.2%)	(73.1%)

Notes:

“Other” includes Nashville, TN; New York City, NY; Philadelphia, PA; and Santa Cruz, CA.

Any differences are a result of rounding.

The information above has not been audited and is presented only for comparison purposes.


Pebblebrook Hotel Trust
Hotel Operational Data
Schedule of Same-Property Results
($ in thousands)
(Unaudited)

	Three months ended December 31,						Year ended December 31,
	2020			2019			2020			2019

Same-Property Revenues:
Room	$	48,022		$	235,083		$	279,768		$	1,019,751
Food and beverage		13,225			87,751			90,425			339,391
Other		12,727			30,399			58,834			131,367
Total hotel revenues		73,974			353,233			429,027			1,490,509

Same-Property Expenses:
Room	$	16,204		$	62,084		$	89,157		$	254,233
Food and beverage		11,488			60,416			74,464			239,598
Other direct		2,696			5,682			11,670			23,510
General and administrative		9,177			28,089			54,495			114,354
Information and telecommunication systems		3,229			5,340			14,810			21,151
Sales and marketing		7,799			27,046			45,182			110,247
Management fees		1,853			10,908			10,645			45,069
Property operations and maintenance		6,845			11,846			29,582			47,531
Energy and utilities		5,516			8,349			23,389			34,694
Property taxes		18,882			19,200			76,235			74,921
Other fixed expenses		10,227			12,827			38,773			49,227
Total hotel expenses		93,916			251,787			468,402			1,014,535

Same-Property EBITDA	$	(19,942	)	$	101,446		$	(39,375	)	$	475,974

Same-Property EBITDA Margin		(27.0	%)		28.7	%		(9.2	%)		31.9	%

Notes:

Any differences are a result of rounding.

The information above has not been audited and is presented only for comparison purposes.


Pebblebrook Hotel Trust
Historical Operating Data
($ in millions except ADR and RevPAR data)
(Unaudited)


Historical Operating Data:
	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Full Year
	2019	2019	2019	2019	2019

Occupancy	75%	87%	87%	79%	82%
ADR	$251	$268	$263	$247	$258
RevPAR	$189	$233	$230	$194	$211

Hotel Revenues	$331.5	$406.0	$398.5	$355.0	$1,491.0
Hotel EBITDA	$90.0	$147.1	$137.0	$102.0	$476.0
Hotel EBITDA Margin	27.2%	36.2%	34.4%	28.7%	31.9%

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Full Year
	2020	2020	2020	2020	2020

Occupancy	56%	3%	20%	20%	25%
ADR	$250	$266	$216	$195	$232
RevPAR	$139	$9	$42	$40	$57

Hotel Revenues	$252.8	$22.3	$77.0	$74.2	$426.2
Hotel EBITDA	$39.0	($40.6)	($19.3)	($20.5)	($41.3)
Hotel EBITDA Margin	15.4%	(182.2%)	(25.1%)	(27.7%)	(9.7%)

Notes:

These historical hotel operating results include information for all of the hotels the Company owned as of December 31, 2020 as if they were owned as of January 1, 2019. The information above does not reflect the Company’s corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding.

The information above has not been audited and is presented only for comparison purposes.


Pebblebrook Hotel Trust
Historical Hotel Same-Property Hotel EBITDA by Property
(Hotel EBITDA $ in millions, Hotel EBITDA per key $ in thousands)
(Unaudited)

	Hotel EBITDA											2020 Hotel EBITDA per Key
Portfolio / Hotel	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2020 Hotel EBITDA per Key

Urban Lifestyle
Urban Iconic
The Liberty, a Luxury Collection Hotel, Boston	$6.1	$9.6	$13.3	$15.8	$17.2	$18.2	$18.5	$19.0	$21.4	$21.2	$0.3	$1.0
The Nines, a Luxury Collection Hotel, Portland	6.2	8.0	8.9	10.8	12.8	15.2	15.6	15.8	15.6	13.0	(0.6)	(1.8)
Hotel Colonnade Coral Gables, Autograph Collection	1.9	2.1	1.8	3.1	3.4	3.6	3.9	4.0	4.5	4.1	(0.3)	(1.9)
Sir Francis Drake	3.4	5.0	8.4	10.1	15.0	16.4	17.3	15.8	12.1	13.4	(1.2)	(2.9)
Argonaut Hotel	5.2	6.5	8.5	10.2	11.8	13.0	13.0	11.7	12.9	14.6	(1.5)	(6.0)
The Heathman Hotel	1.5	1.6	1.9	2.4	3.0	5.7	4.4	4.3	3.4	4.2	(0.9)	(6.0)
Hotel Spero	0.4	1.9	3.5	4.4	6.3	6.2	6.5	5.7	6.6	7.8	(1.5)	(6.4)
Hotel Monaco Washington DC	5.5	6.9	7.6	7.9	7.9	8.1	8.1	9.9	8.6	7.9	(1.4)	(7.6)
Mondrian Los Angeles	7.9	8.9	7.4	8.2	11.0	12.2	12.6	11.8	8.6	7.6	(2.0)	(8.5)
Hotel Monaco Seattle	2.2	2.9	3.4	5.2	6.2	6.7	6.1	6.1	6.4	5.6	(1.7)	(9.0)
Viceroy Santa Monica Hotel	3.0	5.8	6.9	7.6	8.2	8.4	7.8	7.0	6.6	6.2	(2.9)	(17.2)
Hotel Vitale	4.0	6.0	7.4	7.3	8.6	11.0	10.3	9.8	8.0	7.5	(4.0)	(20.0)

Urban Iconic total	$47.3	$65.2	$79.0	$93.0	$111.4	$124.7	$124.1	$120.9	$114.7	$113.1	($17.7)	($6.3)

Urban Contemporary
Montrose West Hollywood	$3.9	$4.3	$4.2	$5.5	$5.9	$5.9	$6.5	$5.9	$3.9	$4.7	$0.3	$2.3
Villa Florence San Francisco on Union Square	3.9	5.3	7.4	8.3	9.3	8.8	9.4	7.7	9.5	10.4	0.2	1.1
Grafton on Sunset	1.9	2.2	2.2	2.0	1.5	0.9	2.8	2.8	2.8	2.8	0.0	0.0
The Marker San Francisco	3.3	5.3	5.7	6.9	7.7	7.6	5.9	6.8	7.5	7.7	(0.1)	(0.5)
Le Parc Suite Hotel	4.2	4.5	4.7	5.3	5.6	6.1	7.0	6.1	6.1	5.8	(0.1)	(0.6)
Solamar Hotel	5.2	6.3	6.5	6.3	6.5	7.4	7.7	7.3	7.3	7.0	(0.4)	(1.7)
Chamberlain West Hollywood Hotel	1.0	3.4	3.8	4.1	4.8	4.8	5.2	4.4	3.1	3.7	(0.2)	(1.7)
Harbor Court Hotel San Francisco	2.7	4.0	3.7	4.9	5.8	6.1	5.6	3.9	4.3	5.6	(0.3)	(2.3)
Le Méridien Delfina Santa Monica	5.3	6.8	6.9	8.0	9.9	11.7	13.8	13.4	12.7	11.2	(0.8)	(2.6)
George Hotel	4.2	4.6	4.1	4.1	4.3	5.2	5.7	6.3	5.7	5.3	(0.5)	(3.6)
Hotel Chicago Downtown, Autograph Collection	5.5	5.3	7.3	8.4	8.5	10.4	12.4	12.3	12.6	12.2	(1.4)	(4.0)
Sofitel Philadelphia at Rittenhouse Square	4.3	6.0	6.7	6.5	7.4	8.6	9.2	8.6	8.3	8.0	(1.5)	(4.9)
W Los Angeles – West Beverly Hills	5.6	6.9	8.0	8.7	8.9	9.5	12.3	11.5	10.2	8.4	(2.0)	(6.7)
Hotel Vintage Portland	1.3	1.9	1.8	2.7	3.4	3.1	4.2	4.1	3.1	2.8	(0.9)	(7.7)
W Boston	3.8	4.4	5.8	6.2	8.1	9.6	9.3	9.2	7.9	8.1	(2.6)	(10.9)
Hotel Vintage Seattle	1.8	2.2	2.4	2.7	2.6	3.5	3.4	3.5	3.5	3.0	(1.5)	(12.0)
Viceroy Washington DC	3.3	3.6	3.4	3.2	3.2	3.0	3.6	5.8	5.5	4.9	(2.3)	(12.9)
Hotel Palomar Los Angeles Beverly Hills	2.3	2.9	3.9	3.8	4.5	4.2	6.2	4.0	7.4	5.7	(4.2)	(15.9)
Revere Hotel Boston Common	3.3	6.1	5.7	9.2	11.7	13.3	12.2	12.6	12.4	11.8	(6.1)	(17.1)
The Roger New York	6.2	6.4	5.0	7.5	8.2	7.3	5.8	5.7	5.3	4.1	(4.5)	(23.2)

Urban Contemporary total	$73.0	$92.4	$99.2	$114.3	$127.8	$137.0	$148.2	$141.9	$139.1	$133.2	($28.9)	($7.0)

“Unofficial Z Collection”
Hotel Zetta San Francisco	N/A	N/A	N/A	$2.8	$5.4	$6.2	$5.6	$5.5	$6.0	$6.0	($0.3)	($2.6)
Hotel Zephyr Fisherman’s Wharf	7.3	8.7	11.2	12.1	12.1	12.6	16.2	13.1	13.7	16.8	(1.1)	(3.0)
The Hotel Zags	2.7	3.3	3.9	4.5	5.6	6.5	6.7	5.4	3.8	3.3	(1.0)	(5.7)
Hotel Zeppelin San Francisco	N/A	2.3	2.7	3.4	4.0	4.0	3.3	6.3	7.5	7.7	(1.2)	(6.1)
Hotel Zoe Fisherman’s Wharf	N/A	N/A	5.2	6.6	7.9	8.2	7.8	3.6	7.7	8.9	(1.5)	(6.8)
Hotel Zena Washington DC	4.0	4.6	3.8	4.3	5.2	5.8	6.1	6.4	5.1	3.8	(2.3)	(12.0)
Hotel Zelos San Francisco	1.3	3.0	3.8	4.6	6.2	7.3	5.9	7.2	6.9	8.4	(2.5)	(12.4)

“Unofficial Z Collection” total	$15.3	$21.9	$30.6	$38.3	$46.4	$50.6	$51.6	$47.5	$50.7	$54.9	($9.9)	($6.8)

Urban Lifestyle total	$135.6	$179.5	$208.8	$245.6	$285.6	$312.3	$323.9	$310.3	$304.5	$301.2	($56.5)	($6.7)

Urban Major Brand
Embassy Suites San Diego Bay – Downtown	$7.6	$8.2	$8.8	$8.9	$9.5	$11.3	$11.3	$11.1	$11.7	$10.4	($0.2)	($0.6)
Hilton San Diego Gaslamp Quarter	7.6	8.5	8.8	8.9	9.5	10.5	10.9	11.1	11.6	10.5	(0.4)	(1.4)
The Westin San Diego Gaslamp Quarter	8.4	8.2	9.7	11.2	12.7	14.6	16.9	16.0	14.4	14.2	(1.3)	(2.9)
The Westin Copley Place, Boston	21.3	23.5	24.4	25.8	28.7	32.7	33.3	31.5	28.5	32.9	(4.4)	(5.5)
Hyatt Regency Boston Harbor	6.2	6.7	7.3	7.7	9.3	11.1	10.8	10.8	10.7	10.1	(2.2)	(8.1)
The Westin Michigan Avenue Chicago	14.7	15.8	16.7	16.0	18.0	19.4	17.9	13.1	12.0	9.9	(9.5)	(12.6)

Urban Major Brand total	$65.8	$70.9	$75.7	$78.5	$87.7	$99.6	$101.1	$93.6	$88.9	$88.0	($18.0)	($6.2)

Unique Lifestyle Resorts
LaPlaya Beach Resort & Club	$5.7	$7.6	$8.7	$10.7	$12.4	$15.7	$16.2	$11.8	$16.5	$17.7	$14.0	$74.1
Southernmost Beach Resort	9.0	10.4	10.8	14.1	17.6	19.9	21.1	17.9	19.3	20.3	12.7	48.5
The Marker Key West Harbor Resort	N/A	N/A	N/A	N/A	N/A	4.8	5.8	4.6	5.6	6.0	3.1	32.3
L’Auberge Del Mar	4.6	5.4	5.6	7.7	8.1	9.9	9.3	9.4	9.5	7.3	2.7	22.3
Paradise Point Resort & Spa	8.3	11.8	13.7	14.8	16.1	16.7	14.7	16.8	17.5	15.3	4.6	10.0
Skamania Lodge	4.4	4.8	5.2	6.0	6.8	7.7	8.1	9.0	9.5	10.3	1.2	4.6
Chaminade Resort & Spa	3.3	3.6	3.7	4.3	4.7	5.0	4.8	5.2	5.4	4.4	(1.1)	(7.1)
San Diego Mission Bay Resort	4.4	4.7	5.2	5.5	7.0	7.9	8.3	8.8	8.1	5.5	(4.2)	(11.8)

Unique Lifestyle Resorts total	$39.7	$48.3	$52.9	$63.1	$72.7	$87.6	$88.3	$83.5	$91.4	$86.8	$33.0	$17.3

Total Hotel EBITDA	$241.1	$298.7	$337.4	$387.2	$446.0	$499.5	$513.3	$487.4	$484.8	$476.0	($41.5)	($3.1)

Notes:

These historical Same-Property Hotel EBITDA results include available information for all of the hotels the Company owned or had an ownership interest in as of February 23, 2021. These historical operating results include periods prior to the Company’s ownership of the hotels. The information above does not reflect the Company’s corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses.

The parking garage at Revere Hotel Boston Common was sold on June 23, 2017. The historical results for Revere Hotel Boston Common have been adjusted to reflect the estimated impact of excluding the parking-related income.

Border indicates Hotel EBITDA for the year in which the hotel was acquired by the Company. The information above has not been audited and is presented only for comparison purposes. Any differences are a result of rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005979/en/

Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel Trust – (240) 507-1330

KEYWORDS: United States North America District of Columbia Maryland

INDUSTRY KEYWORDS: Commercial Building & Real Estate Other Travel Construction & Property Lodging Travel Communications REIT Other Construction & Property

MEDIA:

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February 23, 2021 4:10 pm

Supermicro Breakthrough Multi-Node, Multi-GPU Platform Delivers Unrivaled Energy Efficiency and Flexibility for a New Performance Standard of Video Streaming, Cloud Gaming, and Social Networking Applications

2U 2-Node NVIDIA A100 based GPU System Sets A New Level for High-Performance, Resource-Saving, Large-Scale Data Center GPU Solutions

PR Newswire

SAN JOSE, Calif., Feb. 23, 2021 /PRNewswire/ — Super Micro Computer, Inc. (Nasdaq: SMCI), a global leader in enterprise computing, storage, networking solutions, and green computing technology, released details on an innovative new multi-node GPU solution unlike any existing products in the market. This multi-node system delivers up to 10% TCO savings utilizing shared power and cooling. The new 2U 2-node energy-efficient, Resource-Saving system is designed with up to 64 cores and 128 PCIe 4.0 lanes with three double-width PCIe 4.0 GPUs or six single-width PCIe GPUs at full speed per node.

“Our new 2U 2-node multi-GPU server is the perfect platform for video streaming, high-end cloud gaming, and countless social networking applications,” said Charles Liang, president, and CEO of Supermicro. “With our advanced server Building Block Solutions^® design, and resource-saving architecture, customer deployments will be the most energy-efficient systems available. Supermicro’s market-leading system flexibility and cost savings will deliver uninterrupted performance. We have already experienced overwhelming market interest for this unique platform from global customers.”

Powered by AMD EPYC 7002 series and next-generation processors with 64 cores and 128 PCIe 4.0 lanes per node, the thermally efficient, streamlined airflow allows sustained top performance of this dense multi-GPU system. It is ideal for multi-instance high-end cloud gaming and many other compute-intensive data center applications. Equipped with Supermicro’s advanced I/O Module (AIOM) for fast and flexible networking capabilities, the system can also process massive dataflow for demanding AI/ML applications, deep learning training, and inferencing.

The unique multi-GPU node design allows excellent serviceability, unlike existing products in the market. The two-node drawers in the 2U system can be pulled out for easy serviceability thanks to the shared power and cooling resources. This unique design and the accessibility to the GPUs lowers the cost of maintenance and upgrades for demanding GPU accelerated applications such as cloud gaming that typically require sustaining high-power usage and frequent maintenance.

Learn more about the new system in this video.

About Super Micro Computer, Inc.

Supermicro (Nasdaq: SMCI), the leading innovator in high-performance, high-efficiency server and storage technology is a premier provider of advanced server Building Block Solutions® for Enterprise Data Center, Cloud Computing, Artificial Intelligence, and Edge Computing Systems worldwide. Supermicro is committed to protecting the environment through its “We Keep IT Green®” initiative and provides customers with the most energy-efficient, environmentally-friendly solutions available on the market.

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names and trademarks are the property of their respective owners.

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SOURCE Super Micro Computer, Inc.

February 23, 2021 4:10 pm

DocuSign to Host Virtual Financial Analyst Day on Wednesday, March 24, 2021

PR Newswire

SAN FRANCISCO, Feb. 23, 2021 /PRNewswire/ — DocuSign (Nasdaq: DOCU) today announced that it will host its inaugural Analyst Day on Wednesday, March 24, 2021 in conjunction with its customer conference, Momentum. The Analyst Day event will begin at 11:00 a.m. PT/2:00 p.m. ET, following the Momentum keynote presentation. Members of the DocuSign management team will discuss the company’s vision, market opportunities, product innovation, go-to-market strategy, and financial outlook, followed by a Q&A session.

Register for the live webcast of the event on the DocuSign Investor Relations website at investor.docusign.com. A replay will be available on the website following the completion of the event.

About DocuSign
DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements. As part of the DocuSign Agreement Cloud, DocuSign offers eSignature, the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, over 820,000 customers and hundreds of millions of users in over 180 countries use DocuSign to accelerate the process of doing business and to simplify people’s lives.

For more information, visit www.docusign.com, call +1-877-720-2040, or follow @DocuSign on Twitter, LinkedIn, Facebook and Instagram.

Investor Relations:

Annie Leschin

VP Investor Relations
[email protected]

Media Relations:

Adrian Wainwright

Head of Communications
[email protected]

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SOURCE DocuSign, Inc.

February 23, 2021 4:10 pm

Akero Therapeutics to Participate in Upcoming Virtual Healthcare Conferences in March

PR Newswire

SAN FRANCISCO, Feb. 23, 2021 /PRNewswire/ — Akero Therapeutics, Inc. (Nasdaq: AKRO), a cardio-metabolic biotechnology company developing transformational treatments for non-alcoholic steatohepatitis (NASH), today announced that members of its management team will participate in the following virtual investor conferences in March:

Cowen 41st Annual Healthcare Conference on Tuesday, March 2, 2021
2021 H.C. Wainwright Global Life Sciences Conference on Tuesday, March 9, 2021

A live webcast, if recorded, of Company presentations and Q&A will be available through the investor relations section of the Company’s website at www.akerotx.com. Following the live webcasts, archived replays will be available on the Company’s website.

About Akero Therapeutics

Akero Therapeutics is a clinical-stage cardio-metabolic company developing transformational treatments for non-alcoholic steatohepatitis (NASH), a disease without any approved therapies. Akero’s lead program, EFX, an engineered Fc-FGF21 fusion protein, is currently being evaluated in Phase 2 clinical trials as a potential treatment for NASH. Akero is headquartered in South San Francisco. Visit us at www.akerotx.com for more information.

Investor Contact:

Christina Tartaglia

212.362.1200
[email protected]

Media Contact:
Jennifer Weismann
612-716-0556
[email protected]

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SOURCE Akero Therapeutics

February 23, 2021 4:10 pm

Tronox Announces Secondary Public Offering by Exxaro Resources Limited

PR Newswire

STAMFORD, Conn., Feb. 23, 2021 /PRNewswire/ — Tronox Holdings plc (NYSE: TROX) (“Tronox” or the “Company”), a leading integrated manufacturer of titanium dioxide pigment, announced today that Exxaro Resources Limited (the “selling shareholder”) intends to offer for sale 17,000,000 shares of the Company’s ordinary shares in an underwritten secondary offering pursuant to the Company’s automatic shelf registration statement filed April 24, 2020 with the Securities and Exchange Commission (“SEC”). The selling shareholder expects to grant the underwriters a 30-day option to purchase up to 2,550,000 additional shares. The selling shareholder will receive all of the net proceeds from the offering. No shares are being sold by the Company in the offering.

The Company also announced today that it exercised its call option to complete the “flip in” transaction pursuant to the Exxaro Mineral Sands Transaction Completion Agreement, whereby the Company will issue to Exxaro 7,246,035 new ordinary shares in exchange for Exxaro’s 26% shareholding in the Company’s South African operating subsidiaries which hold the Company’s material mining licenses. The offering includes a portion of these shares.

J.P. Morgan is acting as joint bookrunning manager and representative of the underwriters. BofA Securities, Deutsche Bank Securities and Morgan Stanley are also acting as joint bookrunning managers.

Prospective investors should read the prospectus included in the registration statement, the preliminary prospectus supplement and other documents that the Company has filed with the SEC for more information. The registration statement, the preliminary prospectus supplement and accompanying prospectus and the documents incorporated by reference therein are available at the SEC’s website at www.sec.gov. Alternatively, a copy of the prospectus and related preliminary prospectus supplement may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, toll-free: (866) 803-9204, email: [email protected].

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

About Tronox

Tronox Holdings plc is one of the world’s leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals; and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals.

Forward Looking Statements

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance, including the effects of the COVID-19 pandemic and anticipated synergies based on our growth and other strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual synergies, or achievements to differ materially from the results, level of activity, performance, anticipated synergies or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, business and market disruptions related to the COVID-19 pandemic; market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as global and regional economic downturns, including as a result of the COVID-19 pandemic, that adversely affect the demand for our end-use products; the price of our ordinary shares; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company’s filings with the SEC.

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management 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. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward- looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.

Media Contact: Melissa Zona
+1.636.751.4057

Investor Contact: Jennifer Guenther
+1.646.960.6598

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SOURCE Tronox Holdings plc

February 23, 2021 4:10 pm

Castlight Health Announces Fourth Quarter and Full Year 2020 Results

PR Newswire

SAN FRANCISCO, Feb. 23, 2021 /PRNewswire/ — Castlight Health, Inc. (NYSE:CSLT), a leading health benefits platform provider, today announced results for its fourth quarter and full year ended December 31, 2020.

“Our strong fourth quarter performance punctuated an important year for Castlight, during which we achieved a number of strategic milestones and delivered Castlight’s best financial performance in the company’s history,” said Maeve O’Meara, chief executive officer of Castlight Health. “We accomplished several key achievements in the quarter, including adding a new health plan customer, Blue Cross Blue Shield of Alabama, in December, signing a partnership with Boston Children’s Hospital to support the national vaccination effort, and delivering strong results from our first year live with Care Guides. Our swift decisions early in the year strengthened our financial position, but still enabled us to address our customers’ needs amidst the pandemic. We are confident that the foundation we have built in high-tech, high-touch navigation has us well positioned to capture share in the growing market and deliver ARR growth in 2021.”

Financial performance for the three months ended December 31, 2020 compared to the three months ended December 31, 2019 includes:

GAAP total revenue of $37.1 million, compared to $36.4 million
GAAP gross margin of 65.2%, compared to 55.3%
Non-GAAP gross margin of 68.0%, compared to 57.8%
GAAP operating loss of $1.4 million, compared to $12.2 million
Non-GAAP operating income of $2.7 million, compared to an operating loss of $8.1 million
GAAP net loss per basic and diluted share of $0.01, compared to a net loss per basic and diluted share of $0.08
Non-GAAP net income per basic and diluted share of $0.02, compared to a net loss per basic and diluted share of $0.05
Cash provided by operations of $3.0 million, compared to $4.0 million

Financial performance for the 12 months ended December 31, 2020 compared to the 12 months ended December 31, 2019 includes:

GAAP total revenue of $146.7 million, compared to $143.3 million
GAAP gross margin of 64.5%, compared to 58.8%
Non-GAAP gross margin of 67.5% compared to 61.6%
GAAP operating loss of $62.8 million, compared to a loss of $41.3 million
Non-GAAP operating income of $6.3 million, compared to a loss of $21.7 million
GAAP net loss per basic and diluted share of $0.41, compared to a net loss per basic and diluted share of $0.28
Non-GAAP net income per basic and diluted share of $0.05, compared to a net loss per basic and diluted share of $0.14
Cash used in operations of $5.6 million, compared to $17.4 million used in operations

Total cash and cash equivalents were $49.2 million as of December 31, 2020.

A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

For the full year 2021, the Company expects:

GAAP revenue in the range of $130 million and $135 million
Non-GAAP operating loss between $4 million and $9 million
Non-GAAP net loss per share between $0.02 and $0.06, based on approximately 160 million to 161 million shares

For the first quarter of 2021, the Company expects:

GAAP revenue in the range of $32 million and $34 million

Quarterly Conference Call

Castlight Health senior management will host a conference call to discuss its fourth quarter and full year 2020 results and business outlook today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the Company’s Investor Relations website at http://ir.castlighthealth.com. An archive of the webcast can also be accessed through the same link. The live conference call can be accessed by dialing (833) 238-7953 and the replay will be available for one week at (800) 585-8367. The conference ID number for the live call and replay is 4576726.

About Castlight Health

Castlight is on a mission to make it as easy as humanly possible for its users to navigate the healthcare system and live happier, healthier, more productive lives. Our health navigation platform connects hundreds of health vendors, benefits resources, and plan designs into one comprehensive health and wellbeing experience. We guide individuals—based on their unique profile—to the best resources available to them, whether they are healthy, chronically ill, or actively seeking medical care. Castlight transforms the employee benefit experience into a deeply personalized, yet simple, guided one, empowering better-informed patient decisions to unlock better healthcare outcomes and maximizing return on healthcare investments.

For more information visit www.castlighthealth.com. Follow us on Twitter and LinkedIn and Like us on Facebook.

Non-GAAP Financial Measures

To supplement Castlight Health’s financial statements presented in accordance with generally accepted accounting principles (GAAP), we also use and provide investors and others with non-GAAP measures of certain components of financial performance, including non-GAAP gross profit and margin, non-GAAP operating expense, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP net income (loss) per share. Non-GAAP gross profit and margin, non-GAAP operating expense, non-GAAP operating income (loss), and non-GAAP net income (loss) exclude goodwill impairment, stock-based compensation, certain legal expenses, amortization of intangibles, restructuring charges, capitalization and amortization of internal-use software, and lease exit and related charges.

We believe that these non-GAAP financial measures provide useful supplemental information to investors and others, facilitate the analysis of the company’s core operating results and comparison of operating results across reporting periods, and can help enhance overall understanding of the company’s historical financial performance. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP.

The non-GAAP measures we provide may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Castlight Health encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

We have provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, except that we have not reconciled our non-GAAP (i) operating loss and net loss per share guidance for the full year 2021 to comparable GAAP measures because we do not provide guidance for stock-based compensation expense, and (ii) capitalization and amortization of internal-use software, which are reconciling items between GAAP and non-GAAP. The factors that may impact our future stock-based compensation expense, and capitalization and amortization of internal-use software, are out of our control and/or cannot be reasonably predicted, and therefore we are unable to provide such guidance without unreasonable effort. Factors include our market capitalization and related volatility of our stock price and our inability to project the cost or scope of internally produced software.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would” and similar expressions identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. The forward-looking statements about Castlight Health’s expectations, plans, intentions, and strategies include, but are not limited to, statements regarding certain 2021 projections, the impact of COVID-19, the success of our strategy, and our expectations for our future business and financial performance. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties include those described in Castlight Health’s Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified in their entirety by these cautionary statements and are based on information available to Castlight Health as of the date hereof. Castlight Health assumes no obligation to update these forward-looking statements, except as required by law.

Copyright 2021 Castlight Health, Inc. Castlight Health^®is the registered trademark of Castlight Health, Inc. Other company and product names may be trademarks of the respective companies with which they are associated.

CASTLIGHT HEALTH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited)

	As of
	December 31, 2020		December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	49,242	$	43,017
Marketable securities	—		16,411
Accounts receivable and other, net	31,740		31,397
Prepaid expenses and other current assets	3,800		4,645
Total current assets	84,782		95,470
Property and equipment, net	5,321		4,856
Restricted cash, non-current	1,144		1,144
Deferred commissions	9,556		14,718
Deferred professional service costs	4,462		6,711
Intangible assets, net	7,930		12,178
Goodwill	41,485		91,785
Operating lease right-of-use assets, net	10,238		13,906
Other assets	1,855		2,016
Total assets	$	166,773	$	242,784
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,145	$	19,596
Accrued expenses and other current liabilities	7,898		10,454
Accrued compensation	8,633		8,770
Deferred revenue	6,848		10,173
Operating lease liabilities	5,789		5,914
Total current liabilities	34,313		54,907
Deferred revenue, non-current	663		572
Debt, non-current	—		1,395
Operating lease liabilities, non-current	7,446		11,823
Other liabilities, non-current	485		1,213
Total liabilities	42,907		69,910
Stockholders’ equity	123,866		172,874
Total liabilities and stockholders’ equity	$	166,773	$	242,784

CASTLIGHT HEALTH, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
Revenue:
Subscription	$	34,419	$	34,723	$	141,160	$	137,393
Professional services and other	2,667		1,724		5,549		5,915
Total revenue, net	37,086		36,447		146,709		143,308
Cost of revenue:
Cost of subscription⁽¹⁾	7,932		9,150		34,996		34,067
Cost of professional services and other⁽¹⁾	4,989		7,150		17,046		25,007
Total cost of revenue	12,921		16,300		52,042		59,074
Gross profit	24,165		20,147		94,667		84,234
Operating expenses:
Sales and marketing⁽¹⁾	7,713		10,664		32,026		38,597
Research and development⁽¹⁾	11,418		14,487		49,465		58,994
General and administrative⁽¹⁾	6,405		7,238		25,662		27,981
Goodwill impairment	—		—		50,300		—
Total operating expenses	25,536		32,389		157,453		125,572
Operating loss	(1,371)		(12,242)		(62,786)		(41,338)
Other income, net	174		496		603		1,336
Net loss	$	(1,197)	$	(11,746)	$	(62,183)	$	(40,002)
Net loss per share, basic and diluted	$	(0.01)	$	(0.08)	$	(0.41)	$	(0.28)
Weighted-average shares used to compute basic and diluted net loss per share	154,739		147,359		151,478		145,172


(1)	Includes stock-based compensation expense as follows:

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
Cost of revenue:
Cost of subscription	$	215	$	179	$	813	$	774
Cost of professional services and other	219		216		650		953
Sales and marketing	326		175		2,028		2,142
Research and development	1,041		1,369		4,544		6,100
General and administrative	1,085		1,217		4,410		5,034

CASTLIGHT HEALTH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited)

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
Operating activities:
Net loss	$	(1,197)	$	(11,746)	$	(62,183)	$	(40,002)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,630		1,552		6,537		5,920
Goodwill impairment	—		—		50,300		—
Stock-based compensation	2,886		3,156		12,445		15,003
Amortization of deferred commissions	2,272		3,365		7,789		10,768
Amortization of deferred professional service costs	1,100		2,132		3,517		5,242
Non-cash operating lease expense	1,145		1,396		4,910		5,315
Accretion and amortization of marketable securities	—		6		2		(238)
Changes in operating assets and liabilities:
Accounts receivable and other, net	(1,269)		4,045		(343)		(4,581)
Deferred commissions	(1,231)		(841)		(2,627)		(5,344)
Deferred professional service costs	(260)		(385)		(1,178)		(1,686)
Prepaid expenses and other assets	582		924		824		102
Accounts payable	426		6,900		(13,622)		9,278
Operating lease liabilities	(1,558)		(1,459)		(5,744)		(5,726)
Accrued expenses and other liabilities	(245)		(688)		(2,821)		(3,760)
Deferred revenue	(3,134)		(7,588)		(3,234)		(10,478)
Accrued compensation	1,812		3,223		(137)		2,795
Net cash provided by (used in) operating activities	2,959		3,992		(5,565)		(17,392)
Investing activities:
Purchase of property and equipment	(149)		(1,241)		(3,580)		(1,953)
Purchase of marketable securities	—		(7,520)		(2,994)		(30,589)
Sales of marketable securities	—		—		2,001		—
Maturities of marketable securities	—		11,075		17,400		25,745
Net cash (used in) provided by investing activities	(149)		2,314		12,827		(6,797)
Financing activities:
Proceeds from exercise of stock options	92		1,136		270		3,060
Proceeds from ESPP offering	—		—		371		—
Principal payments on long-term debt	(464)		(465)		(1,859)		(1,859)
Net cash (used in) provided by financing activities	(372)		671		(1,218)		1,201

Net increase (decrease) in cash, cash equivalents and restricted cash	2,438		6,977		6,044		(22,988)
Cash, cash equivalents and restricted cash at beginning of period	47,948		37,365		44,342		67,330
Cash, cash equivalents and restricted cash at end of period	$	50,386	$	44,342	$	50,386	$	44,342

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	49,242	$	43,017	$	49,242	$	43,017
Restricted cash included in Prepaid and other current assets	—		181		—		181
Restricted cash, non-current	1,144		1,144		1,144		1,144
Total cash, cash equivalents and restricted cash	$	50,386	$	44,342	$	50,386	$	44,342

CASTLIGHT HEALTH, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (unaudited)

	Three Months Ended									Year Ended
	December 31, 2020			September 30, 2020			December 31, 2019			December 31, 2020			December 31, 2019
Gross profit:
GAAP gross profit subscription	$	26,487		$	26,056		$	25,573		$	106,164		$	103,326
Stock-based compensation	215			224			179			813			774
Amortization of internal-use software	80			79			—			264			—
Amortization of intangibles	530			530			530			2,120			2,364
Reduction in workforce	—			—			—			221			—
Non-GAAP gross profit subscription	$	27,312		$	26,889		$	26,282		$	109,582		$	106,464
GAAP gross margin subscription	77.0		%	76.5		%	73.6		%	75.2		%	75.2		%
Non-GAAP gross margin subscription	79.4		%	78.9		%	75.7		%	77.6		%	77.5		%

GAAP gross loss professional services	$	(2,322)		$	(2,865)		$	(5,426)		$	(11,497)		$	(19,092)
Stock-based compensation	219			171			216			650			953
Reduction in workforce	—			—			—			317			—
Non-GAAP gross loss professional services	$	(2,103)		$	(2,694)		$	(5,210)		$	(10,530)		$	(18,139)
GAAP gross margin professional services	(87)		%	(284)		%	(315)		%	(207)		%	(323)		%
Non-GAAP gross margin professional services	(79)		%	(267)		%	(302)		%	(190)		%	(307)		%

GAAP gross profit	$	24,165		$	23,191		$	20,147		$	94,667		$	84,234
Impact of non-GAAP adjustments	1,044			1,004			925			4,385			4,091
Non-GAAP gross profit	$	25,209		$	24,195		$	21,072		$	99,052		$	88,325
GAAP gross margin	65.2		%	66.1		%	55.3		%	64.5		%	58.8		%
Non-GAAP gross margin	68.0		%	69.0		%	57.8		%	67.5		%	61.6		%

Operating expense:
GAAP sales and marketing	$	7,713		$	6,158		$	10,664		$	32,026		$	38,597
Stock-based compensation	(326)			(282)			(175)			(2,028)			(2,142)
Amortization of intangibles	(528)			(528)			(529)			(2,112)			(1,601)
Reduction in workforce	—			2			—			(332)			—
Non-GAAP sales and marketing	$	6,859		$	5,350		$	9,960		$	27,554		$	34,854

GAAP research and development	$	11,418		$	11,182		$	14,487		$	49,465		$	58,994
Stock-based compensation	(1,041)			(1,026)			(1,369)			(4,544)			(6,100)
Reduction in workforce	—			(5)			—			(663)			—
Certain legal expenses	—			—			—			191			(191)
Capitalization of internally developed software	—			—			80			21			80
Non-GAAP research and development	$	10,377		$	10,151		$	13,198		$	44,470		$	52,783

GAAP general and administrative	$	6,405		$	6,341		$	7,238		$	25,662		$	27,981
Stock-based compensation	(1,085)			(1,401)			(1,217)			(4,410)			(5,034)
Amortization of intangibles	—			—			(16)			(17)			(66)
Certain legal expenses	—			—			—			—			(533)
Reduction in workforce	—			15			—			(482)			—
Non-GAAP general and administrative	$	5,320		$	4,955		$	6,005		$	20,753		$	22,348

GAAP goodwill impairment	$	—		$	—		$	—		$	50,300		$	—
Goodwill impairment	—			—			—			(50,300)			—
Non-GAAP goodwill impairment	$	—		$	—		$	—		$	—		$	—

GAAP operating expense	$	25,536		$	23,681		$	32,389		$	157,453		$	125,572
Impact of non-GAAP adjustments	(2,980)			(3,225)			(3,226)			(64,676)			(15,587)
Non-GAAP operating expense	$	22,556		$	20,456		$	29,163		$	92,777		$	109,985

Operating loss:
GAAP operating loss	$	(1,371)		$	(490)		$	(12,242)		$	(62,786)		$	(41,338)
Impact of non-GAAP adjustments	4,024			4,229			4,151			69,061			19,678
Non-GAAP operating income (loss)	$	2,653		$	3,739		$	(8,091)		$	6,275		$	(21,660)

Net loss and net loss per share:
GAAP net loss	$	(1,197)		$	(447)		$	(11,746)		$	(62,183)		$	(40,002)
Total pre-tax impact of non-GAAP adjustments	4,024			4,229			4,151			69,061			19,678
Non-GAAP net income (loss)	$	2,827		$	3,782		$	(7,595)		$	6,878		$	(20,324)
GAAP net loss per share, basic and diluted	$	(0.01)		$	—		$	(0.08)		$	(0.41)		$	(0.28)
Non-GAAP net income (loss) per share, basic and diluted	$	0.02		$	0.02		$	(0.05)		$	0.05		$	(0.14)
Shares used in basic and diluted net loss per share computation	154,739			152,146			147,359			151,478			145,172

Castlight Media Contact:

Caroline Kawashima

[email protected]

415-246-0313

Castlight Investor Contact:

[email protected]

443-213-0500

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SOURCE Castlight Health, Inc.

February 23, 2021 4:10 pm

Accuray to Participate in the Cowen 41st Annual Health Care Conference

Company to take part in Fireside Chat Tuesday, March 2nd, 2021 at 11:50 am PT / 2:50 pm ET

PR Newswire

SUNNYVALE, Calif., Feb. 23, 2021 /PRNewswire/ — Accuray Incorporated (NASDAQ: ARAY) today announced its participation in the Cowen Annual Health Care Conference. The management team is scheduled to participate in a virtual Fireside Chat on Tuesday, March 2^nd at 11:50 am PACIFIC / 2:50 pm EASTERN. A live webcast can be accessed on the Accuray website at https://investors.accuray.com/.

This invitation-only conference will bring together more than 325 public and private companies across the health care spectrum with Cowen’s institutional investor clients. This conference attracts some of the industry’s most innovative companies and helps connect them with institutional investors to discuss investment opportunities and sector trends.

About Accuray
Accuray is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions that are designed to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Sunnyvale, California, with facilities worldwide. To learn more, visit www.accuray.com or follow us on Facebook, LinkedIn, Twitter, and YouTube.

Investor Contact

Joe Diaz

Investor Relations – Accuray
Tel: +1 (602) 717-7804
E-mail: [email protected]

Media Contact

Beth Kaplan

Public Relations Director – Accuray
Tel: +1 (408) 789-4426
E-mail: [email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/accuray-to-participate-in-the-cowen-41st-annual-health-care-conference-301233886.html

SOURCE Accuray Incorporated

February 23, 2021 4:10 pm

Charter to Participate in Morgan Stanley Virtual Technology, Media & Telecom Conference

PR Newswire

STAMFORD, Conn., Feb. 23, 2021 /PRNewswire/ — Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, “Charter”) today announced that Tom Rutledge, Chairman and Chief Executive Officer, will participate in the Morgan Stanley Virtual Technology, Media & Telecom Conference on Tuesday, March 2, 2021. Mr. Rutledge’s remarks are scheduled to begin at 11:00 a.m. ET.

A live webcast of the event can be accessed on Charter’s investor relations website, ir.charter.com. Following the live broadcast, the webcast will be archived at ir.charter.com.

About Charter

Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 31 million customers in 41 states through its Spectrum brand. Over an advanced communications network, the company offers a full range of state-of-the-art residential and business services including Spectrum Internet^®, TV, Mobile and Voice.

For small and medium-sized companies, Spectrum Business^® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach^® delivers tailored advertising and production for the modern media landscape. The company also distributes award-winning news coverage, sports and high-quality original programming to its customers through Spectrum Networks and Spectrum Originals. More information about Charter can be found at corporate.charter.com.

View original content to download multimedia:http://www.prnewswire.com/news-releases/charter-to-participate-in-morgan-stanley-virtual-technology-media–telecom-conference-301233871.html

SOURCE Charter Communications, Inc.

February 23, 2021 4:10 pm

QTS Realty Trust, Inc. to Participate in Upcoming Investor Conferences

PR Newswire

OVERLAND PARK, Kan., Feb. 23, 2021 /PRNewswire/ — QTS Realty Trust, Inc. (NYSE: QTS), a leading provider of hybrid colocation and mega scale data center solutions, announced today that Company management will be participating in the following upcoming investor conferences:

Morgan Stanley Technology Media and Telecom Virtual Conference scheduled for March 1-4, 2021. QTS is scheduled to present on Monday, March 1, 2021 at 10:15 a.m. Eastern Time.
Citi Virtual Global Property CEO Conference scheduled for March 8-11, 2021. QTS is scheduled to present on Tuesday, March 9, 2021 at 9:00 a.m. Eastern Time.
Truist Technology, Internet and Services Virtual Summit scheduled for March 9-10, 2021. QTS is scheduled to participate on Tuesday, March 9, 2021.
Deutsche Bank Media, Internet and Telecom Virtual Conference scheduled for March 8-10, 2021. QTS is scheduled to present on Wednesday, March 10, 2021 at 11:00 a.m. Eastern Time.

A link to the webcasts will be made available in the Investor Relations section of the Company’s website at www.qtsdatacenters.com.

About QTS
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 7 million square feet of owned mega scale data center space throughout North America and Europe. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises, and government entities. Visit QTS at www.qtsdatacenters.com, call toll-free 877.QTS.DATA or follow on Twitter @DataCenters_QTS.

Investor Relations Contact

Stephen Douglas, EVP Finance
[email protected]

View original content:http://www.prnewswire.com/news-releases/qts-realty-trust-inc-to-participate-in-upcoming-investor-conferences-301233890.html

SOURCE QTS Realty Trust, Inc.

February 23, 2021 4:10 pm

Matson, Inc. Announces Fourth Quarter And Full Year 2020 Results

– 4Q20 EPS of $1.96

– Full Year 2020 EPS of $4.44

– Full Year 2020 Net Income and EBITDA of $193.1 million and $423.7 million, respectively

– Year-over-year increase in 4Q20 and Full Year 2020 consolidated operating income driven primarily by China service strength

– Leverage ratio per debt agreements at year end of approximately 1.7x

PR Newswire

HONOLULU, Feb. 23, 2021 /PRNewswire/ — Matson, Inc. (“Matson” or the “Company”) (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $85.6 million, or $1.96 per diluted share, for the quarter ended December 31, 2020. Net income for the quarter ended December 31, 2019 was $15.6 million, or $0.36 per diluted share. Consolidated revenue for the fourth quarter 2020 was $700.1 million compared with $540.7 million for the fourth quarter 2019.

For the twelve months ended December 31, 2020, Matson reported net income of $193.1 million, or $4.44 per diluted share compared with $82.7 million, or $1.91 per diluted share in 2019. Consolidated revenue for the twelve month period ended December 31, 2020 was $2,383.3 million, compared with $2,203.1 million in 2019.

“Matson capped off a strong year with continued solid performance in the fourth quarter from Ocean Transportation and Logistics despite the ongoing challenges from the COVID-19 pandemic and related economic effects,” said Chairman and Chief Executive Officer Matt Cox. “Within Ocean Transportation, our China service saw significant demand for its CLX and CLX+ expedited ocean services and was the primary driver of the increase in consolidated operating income year-over-year for the quarter and the full year. We continued to see favorable supply and demand dynamics in the transpacific tradelane during the fourth quarter, and we continue to expect largely all of these trends to remain favorable in the first half of 2021 as the pandemic persists. As the pandemic subsides with widespread vaccination, we expect some of the supply and demand factors that we are currently benefitting from to remain and continue to drive demand for our CLX and CLX+ services.”

Mr. Cox added, “In our other core tradelanes for the fourth quarter, we continued to see elevated demand for sustenance and home improvement goods lead to higher year-over-year volume growth in Hawaii, Alaska and Guam. For the full year 2020, Hawaii and Guam volume approached the levels achieved in the year ago period despite the economic challenges from the pandemic, and Alaska volume was modestly higher than the level achieved in the full year 2019. Logistics operating income for the fourth quarter increased year-over-year as a result of elevated goods consumption and inventory restocking and tight supply and demand fundamentals in our core markets. For the full year 2020, Logistics operating income was modestly lower compared to the level achieved in the full year 2019 largely due to the pandemic’s impacts on the business lines in the first half of the year.”

Fourth Quarter 2020 Discussion and Update on Business Conditions

Ocean Transportation: The Company’s container volume in the Hawaii service in the fourth quarter 2020 was 0.8 percent higher year-over-year primarily due to an additional westbound sailing and higher demand for sustenance and home improvement goods, partially offset by lower tourism activity as a result of the pandemic. The State of Hawaii eased visitor travel restrictions to the islands in October and saw an improvement in the daily passenger counts, but tourism activity remained significantly below the levels achieved in the prior year period. Tourism levels are expected to remain low until the pandemic subsides and to have a meaningfully negative impact on Hawaii’s economy.

In China, the Company’s container volume in the fourth quarter 2020 was 139.1 percent higher year-over-year due to volume from the CLX+ service in addition to higher volume on the CLX service as a result of our increased capacity in the tradelane. Matson continued to realize a rate premium in the fourth quarter 2020 and achieved average freight rates that were higher than in the year ago period. The Company expects elevated consumption of e-commerce and other commodities coupled with other supply and demand factors in the tradelane to largely remain favorable in the first half of 2021 as the pandemic persists. As the pandemic subsides with widespread vaccination, we expect some of the supply and demand factors that we are currently benefitting from to remain and continue to drive demand for our CLX and CLX+ services.

In Guam, the Company’s container volume in the fourth quarter 2020 increased 4.2 percent year-over-year primarily due to higher demand for sustenance and home improvement goods, partially offset by lower tourism activity as a result of the pandemic. In the near-term, we expect depressed tourism levels to have a negative impact on the Guam economy.

In Alaska, the Company’s container volume for the fourth quarter 2020 increased 18.9 percent year-over-year as a result of higher northbound volume primarily due to two additional sailings and higher demand for sustenance and home improvement goods, and modestly higher southbound volume. The Alaska economy continues to be negatively impacted by the economic effects from the COVID-19 pandemic and a low oil price environment. In the near-term, we expect the economy to slowly recover, but remain challenged until the pandemic subsides.

The contribution in the fourth quarter 2020 from the Company’s SSAT joint venture investment was $10.9 million, or $7.9 million higher than the fourth quarter 2019. The increase was driven by higher lift volume.

Logistics: In the fourth quarter 2020, operating income for the Company’s Logistics segment was $9.6 million, or $2.0 million higher compared to the operating income achieved in the fourth quarter 2019. The increase was due primarily to a higher contribution from transportation brokerage as a result of elevated goods consumption and inventory restocking and tight supply and demand fundamentals in our core markets.

Results By Segment
Ocean Transportation — Three months ended December 31, 2020 compared with 2019

	Three Months Ended December 31,
(Dollars in millions)	2020			2019			Change
Ocean Transportation revenue	$	543.9		$	416.1		$	127.8	30.7	%
Operating costs and expenses		(435.8)			(398.3)			(37.5)	9.4	%
Operating income	$	108.1		$	17.8		$	90.3	507.3	%
Operating income margin		19.9	%		4.3	%

Volume (Forty-foot equivalent units (FEU), except for automobiles) (1)
Hawaii containers		37,600			37,300			300	0.8	%
Hawaii automobiles		12,200			13,500			(1,300)	(9.6)	%
Alaska containers		17,600			14,800			2,800	18.9	%
China containers		40,400			16,900			23,500	139.1	%
Guam containers		5,000			4,800			200	4.2	%
Other containers (2)		4,900			4,200			700	16.7	%


(1)	Approximate volumes included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)	Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.

Ocean Transportation revenue increased $127.8 million during the three months ended December 31, 2020, compared with the three months ended December 31, 2019. The increase was primarily due to higher freight revenue in the China service, including revenue associated with the CLX+ service, and higher service revenue in Alaska, partially offset by lower fuel-related surcharge revenue.

On a year-over-year FEU basis, Hawaii container volume increased 0.8 percent primarily due to an additional westbound sailing and higher demand for sustenance and home improvement goods, partially offset by lower tourism activity as a result of the pandemic; Alaska volume increased 18.9 percent as a result of higher northbound volume primarily due to two additional sailings and higher demand for sustenance and home improvement goods, and modestly higher southbound volume; China volume was 139.1 percent higher primarily due to volume from the CLX+ service in addition to higher volume on the CLX service as a result of our increased capacity in the tradelane; Guam volume was 4.2 percent higher primarily due to higher demand for sustenance and home improvement goods, partially offset by lower tourism activity as a result of the pandemic; and Other containers volume increased 16.7 percent.

Ocean Transportation operating income increased $90.3 million, or 507.3 percent, during the three months ended December 31, 2020, compared with the three months ended December 31, 2019. The increase was primarily due to a higher contribution from the China service, including the contribution from the CLX+ service, the timing of fuel-related surcharge collections, a higher contribution from SSAT and a higher contribution from the Alaska service, partially offset by higher selling, general and administrative expenses.

The Company’s SSAT terminal joint venture investment contributed $10.9 million during the three months ended December 31, 2020, compared to a contribution of $3.0 million during the three months ended December 31, 2019. The increase was driven by higher lift volume.

Ocean Transportation — Year ended December 31 2020 compared with 2019

	Years Ended December 31,
(Dollars in millions)	2020			2019			Change
Ocean Transportation revenue	$	1,853.9		$	1,666.6		$	187.3	11.2	%
Operating costs and expenses		(1,609.1)			(1,575.8)			(33.3)	2.1	%
Operating income	$	244.8		$	90.8		$	154.0	169.6	%
Operating income margin		13.2	%		5.4	%

Volume (Forty-foot equivalent units (FEU), except for automobiles) (1)
Hawaii containers		145,700			146,600			(900)	(0.6)	%
Hawaii automobiles		46,600			62,900			(16,300)	(25.9)	%
Alaska containers		72,600			69,400			3,200	4.6	%
China containers		118,900			64,000			54,900	85.8	%
Guam containers		18,900			19,400			(500)	(2.6)	%
Other containers (2)		17,500			16,900			600	3.6	%


(1)	Approximate volumes included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)	Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.

Ocean Transportation revenue increased $187.3 million, or 11.2 percent, during the year ended December 31, 2020, compared with the year ended December 31, 2019. The increase was primarily due to higher freight revenue in the China service, including revenue associated with the CLX+ service, partially offset by lower fuel-related surcharge revenue and lower revenue in Hawaii.

On a year-over-year FEU basis, Hawaii container volume decreased 0.6 percent primarily due to lower volume as a result of the pandemic and its effects on tourism, partially offset by volume associated with the dry-docking of one of Pasha’s vessels in the second quarter and higher demand for sustenance and home improvement goods; Alaska volume increased by 4.6 percent primarily due to higher northbound volume, including volume associated with the dry-docking of a competitor’s vessel and one additional sailing, partially offset by modestly lower southbound volume; China volume was 85.8 percent higher primarily due to volume from the CLX+ service in addition to higher volume on the CLX service as a result of our increased capacity in the tradelane; Guam volume was 2.6 percent lower primarily due to lower demand for retail-related goods resulting from the pandemic and its related effects; and Other container volume increased 3.6 percent.

Ocean Transportation operating income increased $154.0 million, or 169.6 percent, during the year ended December 31, 2020, compared with the year ended December 31, 2019. The increase was primarily due to a higher contribution from the China service, including the contribution from the CLX+ service, and lower vessel operating costs, including the impact of one less vessel operating in the Hawaii service, partially offset by a lower contribution from the Hawaii service.

The Company’s SSAT terminal joint venture investment contributed $26.3 million during the year ended December 31, 2020, compared to a contribution of $20.8 million during the year ended December 31, 2019. The increase was largely attributable to lower operating costs.

Logistics — Three months ended December 31, 2020 compared with 2019

	Three Months Ended December 31,
(Dollars in millions)	2020			2019			Change
Logistics revenue	$	156.2		$	124.6		$	31.6	25.4	%
Operating costs and expenses		(146.6)			(117.0)			(29.6)	25.3	%
Operating income	$	9.6		$	7.6		$	2.0	26.3	%
Operating income margin		6.1	%		6.1	%

Logistics revenue increased $31.6 million, or 25.4 percent, during the three months ended December 31, 2020, compared with the three months ended December 31, 2019. The increase was primarily due to higher transportation brokerage revenue.

Logistics operating income increased $2.0 million, or 26.3 percent, for the three months ended December 31, 2020, compared with the three months ended December 31, 2019. The increase was due primarily to a higher contribution from transportation brokerage.

Logistics — Year ended December 31, 2020 compared with 2019

	Years Ended December 31,
(Dollars in millions)	2020			2019			Change
Logistics revenue	$	529.4		$	536.5		$	(7.1)	(1.3)	%
Operating costs and expenses		(493.9)			(498.2)			4.3	(0.9)	%
Operating income	$	35.5		$	38.3		$	(2.8)	(7.3)	%
Operating income margin		6.7	%		7.1	%

Logistics revenue decreased $7.1 million, or 1.3 percent, during the year ended December 31, 2020, compared with the year ended December 31, 2019. The decrease was primarily due to lower transportation brokerage and freight forwarding revenue.

Logistics operating income decreased $2.8 million, or 7.3 percent, for the year ended December 31, 2020, compared with year ended December 31, 2019. The decrease was due primarily to a lower contribution from freight forwarding.

Liquidity, Cash Flows and Capital Allocation

Matson’s Cash and Cash Equivalents decreased by $6.8 million from $21.2 million at December 31, 2019 to $14.4 million at December 31, 2020. Matson generated net cash from operating activities of $429.8 million during the year ended December 31, 2020, compared to $248.8 million during the year ended December 31, 2019. Capital expenditures, including capitalized vessel construction expenditures, totaled $192.3 million for the year ended December 31, 2020, compared with $310.3 million for the year ended December 31, 2019. Total debt decreased by $198.3 million during the year to $760.1 million as of December 31, 2020, of which $700.9 million was classified as long-term debt.

As of December 31, 2020 Matson had available borrowings under its revolving credit facility of $570.1 million and a leverage ratio per the amended debt agreements of approximately 1.7x.

As previously announced, Matson’s Board of Directors declared a cash dividend of $0.23 per share payable on March 4, 2021 to all shareholders of record as of the close of business on February 11, 2021.

Teleconference and Webcast

A conference call is scheduled for 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson’s fourth quarter results.

Date of Conference Call:	Tuesday, February 23, 2021
Scheduled Time:	4:30 p.m. ET / 1:30 p.m. PT / 11:30 a.m. HT
Participant Toll Free Dial-In #:	1-877-312-5524
International Dial-In #:	1-253-237-1144

The conference call will be broadcast live along with an additional slide presentation on the Company’s website at www.matson.com, under Investors. A replay of the conference call will be available approximately two hours after the call through March 2, 2021 by dialing 1-855-859-2056 or 1-404-537-3406 and using the conference number 4135479. The slides and audio webcast of the conference call will be archived for one full quarter on the Company’s website at www.matson.com, under Investors.

About the Company

Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. Matson also operates two premium, expedited services from China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. The Company’s fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson’s transportation network throughout the continental U.S. Its integrated, asset-light logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, Asia supply chain services, and forwarding to Alaska. Additional information about the Company is available at www.matson.com.

GAAP to Non-GAAP Reconciliation

This press release, the Form 8-K and the information to be discussed in the conference call include non-GAAP measures. While Matson reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”) and Net Debt-to-EBITDA.

Forward-Looking Statements

Statements in this news release that are not historical facts are “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation those statements regarding performance and financial results, the COVID-19 pandemic and related economic effects, vaccinations, supply and demand dynamics in the transpacific tradelane, inventory restocking and consumption of e-commerce and other commodities, tourism levels, cash flow expectations and uses of cash and cash flows, vessel deployments and operating efficiencies, duration and availability of vessel charters, vessel transit times, organic growth opportunities, demand and volume levels in the China service and in the Hawaii, Alaska and Guam tradelanes, economic growth and drivers in Hawaii, Alaska and Guam, lift volumes at SSAT, capital expenditures and reducing debt. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement, including but not limited to risks and uncertainties relating to repeal, substantial amendment or waiver of the Jones Act or its application, or our failure to maintain our status as a United States citizen under the Jones Act; regional, national and international economic conditions; new or increased competition or improvements in competitors’ service levels; fuel prices, our ability to collect fuel-related surcharges and/or the cost or limited availability of low-sulfur fuel; delays or cost overruns related to the installation of scrubbers; our relationship with vendors, customers and partners and changes in related agreements; the actions of our competitors; our ability to offer a differentiated service in China for which customers are willing to pay a significant premium; the imposition of tariffs or a change in international trade policies; increases in vessel charter rates or fuel costs, inability to recharter vessels, strains on moving cargo through our terminals, or limitations on the availability of adequate equipment; the magnitude and timing of the impact of public health crises, including COVID-19; any unanticipated dry-dock or repair expenses; any delays or cost overruns related to the modernization of terminals; consummating and integrating acquisitions; changes in general economic and/or industry-specific conditions; competition and growth rates within the logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; changes in relationships with existing truck, rail, ocean and air carriers; changes in customer base due to possible consolidation among customers; conditions in the financial markets; changes in our credit profile and our future financial performance; our ability to obtain future debt financings; continuation of the Title XI and CCF programs; the impact of future and pending legislation, including environmental legislation; government regulations and investigations; relations with our unions; satisfactory negotiation and renewal of expired collective bargaining agreements without significant disruption to Matson’s operations; war, terrorist attacks or other acts of violence; the use of our information technology and communication systems and cybersecurity attacks; and the occurrence of marine accidents, poor weather or natural disasters. These forward-looking statements are not guarantees of future performance. This release should be read in conjunction with our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release. We do not undertake any obligation to update our forward-looking statements.

Investor Relations inquiries:	News Media inquiries:
Lee Fishman	Keoni Wagner
Matson, Inc.	Matson, Inc.
510.628.4227	510.628.4534
[email protected]	[email protected]

MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)

	Three Months Ended				Years Ended
	December 31,				December 31,
(In millions, except per share amounts)	2020		2019		2020		2019
Operating Revenue:
Ocean Transportation	$	543.9	$	416.1	$	1,853.9	$	1,666.6
Logistics		156.2		124.6		529.4		536.5
Total Operating Revenue		700.1		540.7		2,383.3		2,203.1

Costs and Expenses:
Operating costs		(533.9)		(465.5)		(1,904.3)		(1,878.0)
Income from SSAT		10.9		3.0		26.3		20.8
Selling, general and administrative		(59.4)		(52.8)		(225.0)		(216.8)
Total Costs and Expenses		(582.4)		(515.3)		(2,103.0)		(2,074.0)

Operating Income		117.7		25.4		280.3		129.1
Interest expense		(4.9)		(5.6)		(27.4)		(22.5)
Other income (expense), net		1.6		0.3		6.1		1.2
Income before Income Taxes		114.4		20.1		259.0		107.8
Income taxes		(28.8)		(4.5)		(65.9)		(25.1)
Net Income	$	85.6	$	15.6	$	193.1	$	82.7

Basic Earnings Per Share	$	1.99	$	0.36	$	4.48	$	1.93
Diluted Earnings Per Share	$	1.96	$	0.36	$	4.44	$	1.91

Weighted Average Number of Shares Outstanding:
Basic		43.1		42.9		43.1		42.8
Diluted		43.7		43.3		43.5		43.3

MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)

	December 31,		December 31,
(In millions)	2020		2019
ASSETS
Current Assets:
Cash and cash equivalents	$	14.4	$	21.2
Other current assets		291.5		268.4
Total current assets		305.9		289.6
Long-term Assets:
Investment in SSAT		48.7		76.2
Property and equipment, net		1,689.9		1,598.1
Goodwill		327.8		327.8
Intangible assets, net		192.0		202.9
Other long-term assets		336.3		350.8
Total long-term assets		2,594.7		2,555.8
Total assets	$	2,900.6	$	2,845.4

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of debt	$	59.2	$	48.4
Other current liabilities		452.3		388.3
Total current liabilities		511.5		436.7
Long-term Liabilities:
Long-term debt, net of deferred loan fees		685.6		910.0
Deferred income taxes		389.6		337.6
Other long-term liabilities		352.7		355.4
Total long-term liabilities		1,427.9		1,603.0

Total shareholders’ equity		961.2		805.7
Total liabilities and shareholders’ equity	$	2,900.6	$	2,845.4

MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Years Ended December 31,
(In millions)	2020		2019		2018
Cash Flows From Operating Activities:
Net income	$	193.1	$	82.7	$	109.0
Reconciling adjustments:
Depreciation and amortization		114.9		100.4		94.4
Amortization of operating lease right of use assets		74.8		60.7		—
Deferred income taxes		52.1		23.6		29.3
Loss (Gain) on disposal of property and equipment		2.8		(1.4)		(1.9)
Share-based compensation expense		18.8		11.3		12.1
Income from SSAT		(26.3)		(20.8)		(36.8)
Distributions from SSAT		55.4		25.2		42.0
Changes in assets and liabilities:
Accounts receivable, net		(48.0)		17.8		(29.1)
Deferred dry-docking payments		(16.8)		(25.9)		(19.2)
Deferred dry-docking amortization		25.1		34.3		37.4
Prepaid expenses and other assets		21.9		24.5		4.2
Accounts payable, accruals and other liabilities		44.8		(13.9)		71.2
Operating lease liabilities		(75.9)		(59.9)		—
Other long-term liabilities		(6.9)		(9.8)		(7.6)
Net cash provided by operating activities		429.8		248.8		305.0

Cash Flows From Investing Activities:
Capitalized vessel construction expenditure		(87.8)		(219.1)		(338.6)
Other capital expenditures		(104.5)		(91.2)		(62.6)
Proceeds from disposal of property and equipment		15.3		3.4		136.3
Cash deposits into Capital Construction Fund		(132.4)		(96.2)		(340.0)
Withdrawals from Capital Construction Fund		132.4		96.2		340.9
Proceeds from sale of other investments		—		—		3.7
Net cash used in investing activities		(177.0)		(306.9)		(260.3)

Cash Flows From Financing Activities:
Proceeds from issuance of debt		325.5		—		—
Repayments of debt		(216.5)		(42.1)		(30.7)
Proceeds from revolving credit facility		648.0		622.1		963.9
Repayments of revolving credit facility		(955.3)		(478.0)		(933.9)
Payment of financing costs		(18.5)		—		—
Proceeds from issuance of common stock		0.1		0.3		0.7
Dividends paid		(39.2)		(37.2)		(35.4)
Tax withholding related to net share settlements of restricted stock units		(5.6)		(3.1)		(4.6)
Net cash provided by (used in) financing activities		(261.5)		62.0		(40.0)

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash		(8.7)		3.9		4.7
Cash, Cash Equivalents and Restricted Cash, Beginning of the Year		28.4		24.5		19.8
Cash, Cash Equivalents and Restricted Cash, End of the Year	$	19.7	$	28.4	$	24.5

Reconciliation of Cash, Cash Equivalents, and Restricted Cash, at End of the Year:
Cash and Cash Equivalents	$	14.4	$	21.2	$	19.6
Restricted Cash		5.3		7.2		4.9
Total Cash, Cash Equivalents and Restricted Cash, End of the Year	$	19.7	$	28.4	$	24.5

Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	$	26.2	$	22.0	$	18.3
Income tax paid, net of income tax refunds	$	(16.1)	$	(24.2)	$	5.2

Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$	24.7	$	8.5	$	4.1

MATSON, INC. AND SUBSIDIARIES
Total Debt to Net Debt and Net Income to EBITDA Reconciliations
(Unaudited)

NET DEBT RECONCILIATION

	December 31,
(In millions)	2020
Total Debt (1):	$	760.1
Less: Cash and cash equivalents		(14.4)
Net Debt	$	745.7

EBITDA RECONCILIATION

	Three Months Ended
	December 31,
(In millions)	2020		2019		Change
Net Income	$	85.6	$	15.6	$	70.0
Add: Income taxes		28.8		4.5		24.3
Add: Interest expense		4.9		5.6		(0.7)
Add: Depreciation and amortization		29.7		26.9		2.8
Add: Dry-dock amortization		7.3		8.4		(1.1)
EBITDA (2)	$	156.3	$	61.0	$	95.3

	Years Ended
	December 31,
(In millions)	2020		2019		Change
Net Income	$	193.1	$	82.7	$	110.4
Add: Income taxes		65.9		25.1		40.8
Add: Interest expense		27.4		22.5		4.9
Add: Depreciation and amortization		112.2		99.7		12.5
Add: Dry-dock amortization		25.1		34.3		(9.2)
EBITDA (2)	$	423.7	$	264.3	$	159.4


(1)	Total Debt is presented before any reduction for deferred loan fees as required by GAAP.
(2)	EBITDA is defined as the sum of net income plus income taxes, interest expense and depreciation and amortization (including deferred dry-docking amortization). EBITDA should not be considered as an alternative to net income (as determined in accordance with GAAP), as an indicator of our operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. Our calculation of EBITDA may not be comparable to EBITDA as calculated by other companies, nor is this calculation identical to the EBITDA used by our lenders to determine financial covenant compliance.

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SOURCE Matson, Inc.