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PARTS iD, Inc. Reports Record Fourth Quarter and 2020 Results

Full Year Revenues Increased 39.3%, Net Income was $2.1 Million and Adjusted EBITDA was $15.4 Million

CRANBURY, N.J.–(BUSINESS WIRE)–
PARTS iD, Inc. (NYSE American: ID) (“PARTS iD” or “Company”), the owner and operator of, among other verticals, “CARiD.com,” a leading digital commerce platform for the automotive aftermarket, today announced results for the fourth quarter and year ended December 31, 2020.

Full Year 2020 Financial Summary (Comparisons versus Full Year 2019)

• Net revenue increased 39.3% to $400.8 million as compared to $287.8 million.
• Gross margin was 21.4% as compared to 21.3%.
• Operating expenses as a percent of net revenue, including $5.5 million of business combination transaction expenses, improved to 21.1% as compared to 21.5%. Excluding transaction expenses, 2020 operating expenses as a percent of net revenue were 19.7%.
• Operating income increased $2.1 million to $1.3 million as compared to an operating loss of $(0.8) million. Excluding transaction expenses, 2020 operating income was $6.9 million.
• Net income was $2.1 million as compared to a net loss of $(0.7) million.
• Adjusted EBITDA was $15.4 million compared to $6.6 million.

Fourth Quarter 2020 Financial Summary (Comparisons versus Fourth Quarter 2019)

• Net revenue increased 32.8% to $93.1 million as compared to $70.1 million.
• Gross margin was 20.4% as compared to 21.0%.
• Operating expenses as a percent of net revenue, including $5.3 million of business combination transaction expenses, were 27.5% as compared to 23.3%. Excluding transaction expenses, 2020 operating expenses as a percent of net revenue improved to 21.8%.
• Operating loss was $(6.6) million as compared to $(1.6) million. Excluding transaction expenses, fourth quarter 2020 operating loss was $(1.3) million.
• Net loss was $(4.1) million as compared to $(1.3) million.
• Adjusted EBITDA was $1.1 million compared to $0.7 million.

Management Commentary

“Our record-breaking performance in 2020 was filled with numerous highlights and accomplishments,” said Nino Ciappina, Chief Executive Officer of PARTS iD. “Financially, we delivered 39% top-line growth and revenue of over $400 million while driving strong gains in profitability and cash generation. Strategically, we made important progress expanding our penetration in newer categories such as OE & Repair parts and in new verticals such as Motorcycles, Boating & RV/Campers, while at the same time capitalizing on the accelerated shift to online spending during the pandemic to accelerate growth of our core business. Operationally, during the year, we on-boarded 155 new vendors, 267 distribution locations and integrated 1,100 tire installation service centers with our platform, further advancing CARiD.com’s position as a leading one-stop-shop in the auto aftermarket industry, including the Do-It-For-Me space. On top of all this, we completed a successful business combination to bring PARTS iD to the public markets.

“Looking ahead, we believe our technology-led, data-driven approach to digital commerce provides us with a strong foundation to build on for profitable growth within our existing lines of business as well as expansion into other complex, multidimensional parts and accessories markets. Our strength in combining deep industry knowledge and experience in automotive parts with the strong digital and technical skills of our engineering and development teams is what makes our platform a unique digital commerce business.”

Full Year 2020 Results

Net revenue for 2020 increased 39.3% to $400.8 million, compared to $287.8 million in 2019. This increase was primarily attributable to a 24.3% increase in website traffic and a 19.0% increase in the conversion rate compared to 2019. The increase in website traffic and the conversion rate was primarily attributable to product growth in new verticals, search engine bidding automation and optimization, and increased e-commerce adoption due to COVID-19.

Gross profit for 2020 increased 40.2% to $85.8 million compared to $61.2 million in 2019, with gross margin up 10 basis points to 21.4% compared to 21.3%. The increase in gross profit was primarily attributable to the year-over-year increase in revenue.

Operating expenses in 2020 were $84.5 million compared to $62.0 million in 2019. The increase in operating expenses was primarily attributable to higher advertising expenses aimed at driving website traffic and increasing brand awareness, combined with $5.5 million in business combination transaction expenses. Operating expenses as a percent of net revenue improved 40 basis points to 21.1% from 21.5% in 2019, which reflected greater leverage on higher revenues during 2020. Excluding transaction expenses, operating expenses as a percent of net revenue were 19.7%, an improvement of 180 basis points.

Operating income in 2020 increased $2.1 million to $1.3 million as compared to an operating loss of $(0.8) million in 2019. Excluding transaction expenses, 2020 operating income was $6.9 million.

Net income for 2020 was $2.1 million compared to a net loss of $(0.7) million in 2019.

Adjusted EBITDA increased 135.2% to $15.4 million compared to $6.6 million in 2019.

Fourth Quarter 2020 Financial Results

Fourth quarter 2020 net revenue increased 32.8% to $93.1 million, compared to $70.1 million in the fourth quarter of 2019. This increase was primarily attributable to a 11.5% increase in website traffic and a 27.6% increase in the conversion rate compared to the fourth quarter of 2019. The increase in website traffic and the conversion rate was primarily attributable to product growth in new verticals, search engine bidding automation and optimization, and increased e-commerce adoption due to COVID-19.

Gross profit for the fourth quarter 2020 increased 29.1% to $19.0 million compared to $14.7 million in the same prior year period, with gross margin of 20.4% compared to 21.0%. The increase in gross profit was attributable to the year-over-year increase in revenue, partially offset by a 60 basis point decrease in gross margin primarily due to higher product promotion expenses.

Operating expenses were $25.6 million for the fourth quarter of 2020 compared to $16.3 million in the fourth quarter of 2019. The increase in operating expenses was primarily attributable to higher advertising expenses aimed at driving website traffic and increasing brand awareness, combined with $5.3 million in business combination transaction expenses. Operating expenses as a percent of net revenue were 27.5%, an increase of 420 basis points. Excluding transaction expenses, operating expenses as a percent of net revenue were 21.8%, an improvement of 150 basis points reflecting greater leverage on higher revenues during the fourth quarter 2020.

Operating loss for the fourth quarter of 2020 was $(6.6) million compared to $(1.6) million for the fourth quarter of 2019. Excluding transaction expenses, the fourth quarter 2020 operating loss was $(1.3) million.

Net loss for the fourth quarter of 2020 increased 213% to $(4.1) million compared to a net loss of $(1.3) million in the same prior year period.

Adjusted EBITDA increased 56.8% to $1.1 million in the fourth quarter of 2020 compared to $0.7 million in the same prior year period.

Balance Sheet

As of December 31, 2020, the company had cash of $22.2 million compared to $13.6 million at December 31, 2019. The increase in cash was primarily driven by net cash provided by operating activities of $22.0 million, partly offset by cash used in investing activities of $7.3 million, primarily relating to website and software development expenditures, and cash used in financing activities of $6.1 million, which included $5.6 million in cash payments for the cancellation of Legacy warrants.

Conference Call

PARTS iD Chief Executive Officer, Nino Ciappina, and Chief Financial Officer, Kailas Agrawal, will host a live conference call to discuss financial results today, March 9, 2021 at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-9129 (domestic) or (201) 493-6753 (international). The conference call will also be available to interested parties through a live webcast at https://www.partsidinc.com/. A telephone replay of the call will be available until March 23, 2021, by dialing (877) 660-6853 (domestic) or (201) 612-7415 (international) and entering the conference identification number: 13717017.

About PARTS iD, Inc.

PARTS iD is a technology-driven, digital commerce company focused on creating custom infrastructure and unique user experiences within niche markets. Founded in 2008 with a vision of creating a one-stop eCommerce destination for the automotive parts and accessories market, PARTS iD has since become a market leader and proven brand-builder, fueled by its commitment to delivering a revolutionary shopping experience; comprehensive, accurate and varied product offerings; and continued digital commerce innovation.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP. Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes certain non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company.

To this end, we provide EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. EBITDA consists of net income (loss) plus (a) interest expense; (b) income tax provision (or less benefit); and (c) depreciation expense. Adjusted EBITDA consists of EBITDA plus costs, fees, expenses, write offs and other items that do not impact the fundamentals of our operations, as described further below following the reconciliation of these metrics. Management believes these non-GAAP measures provide useful information to investors in their assessment of the performance of our business. The exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis as these costs may vary independent of business performance. Accordingly, we believe that EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

EBITDA and Adjusted EBITDA have limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Although depreciation is a non-cash charge, the assets being depreciated may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
• EBITDA and Adjusted EBITDA do not reflect changes in our working capital;
• EBITDA and Adjusted EBITDA do not reflect income tax payments that may represent a reduction in cash available to us;
• EBITDA and Adjusted EBITDA do not reflect depreciation and interest expenses associated with the lease financing obligations; and
• Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider EBITDA and Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and our other GAAP results.

This press release also presents the non-GAAP measures of operating expenses excluding business combination transaction expenses and operating income (loss) excluding business combination transaction expenses. Business combination transaction expenses represent the expenses incurred solely related to the business combination transaction that closed in November 2020. It primarily includes investment banker fees, legal fees, professional fees for accountants and SEC and Hart-Scott-Rodino filing fees.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.

Cautionary Note Regarding Forward-Looking Statements

All statements made in this press release relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other such matters, including without limitation, expected future performance, the anticipated ability to capitalize on eCommerce demand or the potential for long term profitable growth, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict,” “potential,” “look forward” and similar expressions and their variants, as they relate to PARTS iD may identify forward-looking statements. PARTS iD cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time, often quickly and in unanticipated ways.

Important factors that may cause actual results to differ materially from the results discussed in the forward-looking statements include risks and uncertainties, including without limitation, ability to obtain adequate financing to advance product development and company growth, the marketplace for online purchases of aftermarket auto parts, ability to maintain and enforce intellectual property rights, supply chain disruptions, unanticipated demands on cash resources, competition risks including the entry of new competitors and products, adverse federal, state and local government regulation, technological obsolescence of the PARTS iD’s products, price increases for supplies, the effects of current and future U.S. and foreign trade policy and tariff actions, and any disruption to its business caused by the current COVID-19 pandemic. Further information on the factors and risks that could cause actual results to differ from any forward-looking statements are contained in PARTS iD’s filings with the United States Securities and Exchange Commission (SEC), which are available at https://www.sec.gov (or at https://www.partsidinc.com). The forward-looking statements represent the estimates of PARTS iD as of the date hereof only, and PARTS iD specifically disclaims any duty or obligation to update forward-looking statements.

PARTS iD, Inc.
Consolidated Statements of Operations
	For the three months ended December 31, (unaudited)								For the year ended December 31, (audited)
		2020				2019				2020				2019
Net revenue	$	93,080,908			$	70,071,128			$	400,832,371			$	287,820,277
Cost of goods sold		74,098,159				55,368,066				315,027,012				226,603,934
Gross profit		18,982,749				14,703,062				85,805,359				61,216,343
Operating expenses:
Advertising		8,344,505				5,402,620				33,359,299				20,986,879
Selling, general and administrative		15,383,017				9,337,131				44,266,151				35,147,259
Depreciation		1,824,564				1,604,719				6,859,237				5,847,413
Total operating expenses		25,552,086				16,344,470				84,484,687				61,981,551
Income (loss) from operations		(6,569,337	)			(1,641,408	)			1,320,672				(765,208	)
Interest expense		711				29,720				8,395				34,534
Income (loss) before income taxes		(6,570,048	)			(1,671,128	)			1,312,277				(799,742	)
Income taxes (benefits)		(2,460,779	)			(359,047	)			(801,552	)			(143,902	)
Net income (loss)	$	(4,109,269	)		$	(1,312,081	)		$	2,113,829			$	(655,840	)
Net income (loss)	$	(4,109,269	)		$	(1,312,081	)		$	2,113,829			$	(655,840	)
Less: Preferred stocks dividends (including $15 million deemed dividends on redemption in 2020)		15,067,697				125,000				15,442,697				500,000
Loss available to common shareholders	$	(19,176,966	)		$	(1,437,081	)		$	(13,328,868	)		$	(1,155,840	)
Loss per common share
Basic and diluted loss per share	$	(0.67	)		$	(0.06	)		$	(0.52	)		$	(0.05	)
Weighted average number of shares (basic and diluted)		28,567,751				24,950,958				25,860,097				24,950,958

PARTS iD, Inc.
Consolidated Balance Sheets
As of December 31, 2020 and 2019
(Audited)
		2020				2019
ASSETS
Current assets
Cash	$	22,202,706			$	13,618,835
Accounts receivable		2,236,127				1,168,260
Inventory		4,856,265				3,399,376
Prepaid expenses and other current assets		5,811,332				2,703,882
Total current assets		35,106,430				20,890,353
Property and equipment, net		11,470,360				11,020,781
Intangible assets		237,752				222,483
Deferred tax assets		1,099,800				263,300
Other assets		267,707				267,707
Total assets	$	48,182,049			$	32,664,624
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	35,631,913			$	25,213,657
Customer deposits		16,185,648				8,599,914
Accrued expenses		5,468,570				4,950,406
Other current liabilities		3,592,782				2,867,219
Notes payable, current portion		19,706				24,627
Total current liabilities		60,898,619				41,655,823
Notes payable, net of current portion		–				15,971
Total liabilities		60,898,619				41,671,794
SHAREHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value per share;
1,000,000 shares authorized and 0 issued and outstanding		–				–
Common stock, $0.0001 par value per share;
10,000,000 Class F shares authorized and 0 issued and outstanding		–				–
100,000,000 Class A shares authorized and 32,873,457 and 24,950,958 issued and outstanding, as of December 31, 2020 and 2019, respectively		3,287				2,495
Additional paid in capital		–				4,998,505
Accumulated deficit		(12,719,857	)			(14,008,170	)
Total shareholders’ deficit		(12,716,570	)			(9,007,170	)
Total Liabilities and Shareholder’s deficit	$	48,182,049			$	32,664,624

PARTS iD, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2020 and 2019
(Audited)
		2020				2019
Cash Flows from Operating Activities:
Net income (loss)	$	2,113,829			$	(655,840	)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation		6,859,237				5,847,413
Deferred income tax		(836,500	)			(143,044	)
Gain sale of fixed assets		(3,228	)			(500	)
Changes in operating assets and liabilities:
Accounts receivable		(1,067,867	)			(56,549	)
Inventory		(1,456,889	)			(631,233	)
Prepaid expenses and other current assets		(2,777,595	)			(115,471	)
Accounts payable		10,418,256				79,901
Customer deposits		7,585,734				(756,598	)
Accrued expenses		458,002				451,924
Other current liabilities		695,613				248,994
Net cash provided by operating activities		21,988,592				4,268,997
Cash Flows on Investing Activities:
Proceeds from sale of fixed assets		36,000				500
Purchase of property and equipment		(58,544	)			(85,345	)
Purchase of intangible assets		(15,269	)			(5,570	)
Website and software development costs		(7,283,044	)			(7,108,461	)
Net cash used in investing activities		(7,320,857	)			(7,198,876	)
Cash Flows from Financing Activities:
Principal paid on notes payable		(20,892	)			(20,386	)
Payments of preferred stock dividends		(442,697	)			(500,000	)
Cash payments for cancellation of Legacy warrants		(5,620,275	)			–
Net cash used in financing activities		(6,083,864	)			(520,386	)
Net change in Cash		8,583,871				(3,450,265	)
Cash, beginning of year		13,618,835				17,069,100
Cash, end of year	$	22,202,706			$	13,618,835
Supplemental disclosure of cash flows information:
Cash paid for interest	$	7,684			$	6,130
Cash paid for income taxes	$	–			$	3,200

The following table reflects the reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for each of the periods indicated.

Adjusted EBITDA
	For the three months ended December 31,								For the year ended December 31,
		2020				2019				2020				2019
Net income (loss)	$	(4,109,269	)		$	(1,312,081	)		$	2,113,829			$	(655,840	)
Adjustments:
Interest expense		711				29,720				8,395				34,534
Income taxes (benefits)		(2,460,779	)			(359,047	)			(801,552	)			(143,902	)
Depreciation		1,824,564				1,604,719				6,859,237				5,847,413
EBITDA		(4,744,773	)			(36,689	)			8,179,909				5,082,205
Additional Adjustments:
Business combination transaction expenses(1)		5,261,903				–				5,544,520				–
Founder’s compensation(2)		(110,000	)			254,978				687,692				965,003
Legal & settlement expenses and gains(3)		621,418				335,501				725,081				416,776
Other items(4)		38,022				126,602				291,164				95,237
Adjusted EBITDA Total	$	1,066,570			$	680,392			$	15,428,365			$	6,559,221
Increase in Net income (loss) over 2019	$	(2,797,188	)						$	2,769,669
Increase in Adjusted EBITDA over 2019	$	386,178							$	8,869,144
% increase in Net income (loss) over 2019		213.2	%							422.3	%
% increase in Adjusted EBITDA over 2019		56.8	%							135.2	%

The following tables reflect the reconciliation of (i) operating expenses to operating expenses excluding business combination transaction expenses and (ii) operating income (loss) to operating income (loss) excluding business combination transaction expenses for each of the periods indicated.

Fourth Quarter	2020-Q4						2019-Q4						Change
	$ ‘000			% of Rev.			$ ‘000			% of Rev.			$ ‘000			%
Net Revenue	$	93,081					$	70,071					$	23,010
Operating expenses		25,552		27.5	%			16,344		23.3	%			9,208		4.1	%
Less: Business combination transaction expenses(1)		5,262		5.7	%			–		–				5,262
Total excluding Business combination transaction expenses		20,290		21.8	%			16,344		23.3	%			3,946		1.5	%
Operating income (loss)		(6,569	)	-7.1	%			(1,641	)	(2.3	%)			(4,928	)	(4.7	%)
Add: Business combination transaction expenses(1)		5,262		5.7	%			–		–				5,262
Total excluding Business combination transaction expenses		(1,307	)	-1.4	%			(1,641	)	(2.3	%)			334		0.9	%
Full Year		2020						2019					Change
	$ ‘000			% of Rev.			$ ‘000			% of Rev.			$ ‘000			%
Net Revenue	$	400,832					$	287,820					$	113,012
Operating expenses		84,485		21.1	%			61,982		21.5	%			22,503		0.5	%
Less: Business combination transaction expenses(1)		5,545		1.4	%			–		–				5,545
Total excluding Business combination transaction expenses		78,940		19.7	%			61,982		21.5	%			16,959		1.8	%
Operating income (loss)		1,321		0.3	%			(765	)	(0.3	%)			2,086		0.6	%
Add: Business combination transaction expenses(1)		5,545		1.4	%			–		–				5,545
Total excluding Business combination transaction expenses		6,865		1.7	%			(765	)	(0.3	%)			7,630		2.0	%

⁽¹⁾ Represents the expenses incurred solely related to the business combination transaction that closed in November 2020. It primarily includes investment banker fees, legal fees, professional fees for accountants and SEC and Hart-Scott-Rodino filing fees.

⁽²⁾ Represents the excess compensation paid to one of the two founders of Onyx over the amount management believes would have been the compensation of an independent professional CEO for the applicable reporting periods.

⁽³⁾ Represents legal and settlement expenses and gains related to significant matters that do not impact the fundamentals of our operations, pertaining to: (i) expenses relating to causes of action between certain of the Company’s shareholders and which involve claims directly against the Company seeking the fulfillment of alleged indemnification obligations with respect to these matters ($414,599 in Q4 2020; $23,501 in Q4 2019; $596,043 in FY 2020; and $104,776 in FY 2019), (ii) expenses relating to trademark and IP protection cases ($118,868 in Q4 2020; $0 in Q4 2019; $278,086 in FY 2020 and $0 in FY 2019), (iii) expenses relating to the forgone sales of certain private label products pursuant to a settlement of a trademark claim ($87,952 in Q4 2020; $0 in Q4 2019; $87,952 in FY 2020 and $0 in FY 2019), and (iv) expense and gains relating to settlements of CARB and EPA matters ($0 in Q4 2020; expense of $312,000 in Q4 2019; gain of $237,000 in FY 2020; and expense of $312,000 in FY 2019). We are involved in routine IP litigation, commercial litigation and other various litigation matters. We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information. Litigation matters can vary in their characteristics, frequency and significance to our operating results.

⁽⁴⁾ Includes write-offs of advances and certain fraud loss claims from earlier years that we determined were uncollectible.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210309005957/en/

Investors:

Brendon Frey

ICR

[email protected]

Media:

Cory Ziskind

ICR

[email protected]

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Aftermarket Sports Automotive General Automotive Specialty Other Automotive Performance & Special Interest Retail Online Retail

MEDIA:

Posted on March 9, 2021 4:08 pm

Oak Street Health Reports Fourth Quarter 2020 Financial Results

Oak Street Health Reports Fourth Quarter 2020 Financial Results

CHICAGO–(BUSINESS WIRE)–
Oak Street Health, Inc. (NYSE: OSH) (the “Company”), a network of value-based, primary care centers for adults on Medicare, today reported financial results for its fourth quarter ended December 31, 2020.

“We are incredibly proud of the impact the Oak Street team made on our patients and communities in 2020 and the accompanied operational and financial results, and we could not be more excited to continue our performance in 2021 and beyond,” said Mike Pykosz, Chief Executive Officer of Oak Street Health. “In 2020, we delivered record revenue of $883 million, representing growth of 59%, despite significant challenges related to the COVID-19 pandemic. We opened a record 28 new centers during the year, including 12 in the fourth quarter, allowing us to bring our outstanding quality of care and patient experience to thousands of new older adults. In addition to our rapid growth, we continued to innovate our care model to meet our patients’ needs during the pandemic, including deploying telehealth capabilities, mobilizing and providing last mile food delivery, offering free COVID-19 testing, and now operating clinics to vaccinate our patients and communities. In what has been the most challenging year in the history of Oak Street Health, our results underscore the power of our model, the ingenuity and agility of our tenacious team, and our commitment to rebuild healthcare as it should be.”

Mr. Pykosz continued, “Our prospects for 2021 are equally appealing. Our center cohort performance continues to improve over time, with newer vintages ramping faster than the already strong center ramps from our earlier vintages. Based on our continued and consistent strong unit economics in 2020, we will accelerate our pace of new centers even further in 2021, with a goal of opening 38-42 additional centers, an increase from the expectations of 25-30 that we communicated following our initial public offering. As our communities continue to reopen, there is a tremendous opportunity to re-energize our community outreach model, which we believe positions us well to deliver a strong year of patient growth. While 2020 was a remarkable year, we are enthusiastic about all that we intend to accomplish in 2021, further enhancing our leading position in the value-based, primary care market.”

Fourth Quarter 2020 Financial Highlights

• Total revenue was $248.7 million, up 43% year over year.
• The Company cared for approximately 64,500 risk-based patients, representing 66% of its total patients.
• Loss from operations¹ was $(90.7) million, compared to $(44.0) million in the fourth quarter of 2019.
• Platform contribution² was $12.1 million, up 397% year over year.
• Net loss¹ was $(90.7) million, compared to $(45.9) million in the fourth quarter of 2019.
• Adjusted EBITDA³ was $(43.5) million, compared to $(36.2) million in the fourth quarter of 2019.
• As of December 31, 2020, the Company operated 79 centers⁴, compared to 51 centers as of December 31, 2019.

__________________

¹ Includes stock based and unit-based compensation of $43.0 million and $1.9 million as of the fourth quarter of 2020 and 2019, respectively. The majority of the increase is due to the modification of vesting terms related to the equity converted as part of the IPO and not incremental grants of equity.

² Platform contribution is a non-GAAP financial measure that is presented as supplemental disclosure, defined as total revenues less the sum of (i) medical claims expense and (ii) cost of care, excluding depreciation and amortization. This measure is reconciled to loss from operations as the most directly comparable GAAP measure as set forth in the accompanying “Platform Contribution Reconciliation” section.

³ Adjusted EBITDA is a non-GAAP financial measure that is presented as supplemental disclosure and is reconciled to net loss as the most directly comparable GAAP measure as set forth in the accompanying “Adjusted EBITDA Reconciliation” section. We define adjusted EBITDA as net loss, excluding other income (expense), taxes, depreciation and amortization, stock-based and unit-based compensation and transaction/ offering related costs.

⁴ Our 2020 year end center count includes the three locations associated with our Walmart partnership.

Outlook for First Quarter and Fiscal Year 2021
		Three Months Ending								Twelve Months Ending
		March 31, 2021								December 31, 2021
		Low				High				Low				High
	(dollars in millions)								(dollars in millions)
Centers			84				85				117				121
At-risk patients			74,500				75,000				105,000				110,000
Revenue	$		280				285		$		1,275				1,325
Adjusted EBITDA	$		(25	)			(20	)	$		(215	)			(165	)

We have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and have not provided forward-looking guidance for net loss, because of the uncertainty around certain items that may impact net loss, including stock-based compensation, that are not within our control or cannot be reasonably predicted. However, for fiscal year 2021, depreciation and amortization is expected to be $15.0 million.

Webcast and Conference Call

The Company will conduct a conference call Wednesday, March 10, 2021 at 8:00 AM Eastern Time to discuss these results and management’s outlook for future financial and operational performance. The conference call can be accessed by webcast or by dialing (833) 529-0224 for U.S. participants, or +1 (236) 389-2153 for international participants, and referencing participant code 6163985. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at https://investors.oakstreethealth.com.

About Oak Street Health

Founded in 2012, Oak Street Health is a network of value-based, primary care centers for adults on Medicare. With a mission of rebuilding healthcare as it should be, the company operates an innovative healthcare model focused on quality of care over volume of services and assumes the full financial risk of its patients. Oak Street Health currently operates more than 80 centers across Illinois, Michigan, Ohio, Pennsylvania, Texas, Indiana, North Carolina, Rhode Island, Tennessee, New York and Mississippi. To learn more about Oak Street Health’s proven approach to care, visit oakstreethealth.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for the fourth quarter and fiscal year 2020. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance.

Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market or industry conditions, regulatory environment and receptivity to our technology and services; (iii) results of litigation or a security incident; (iv) the loss of one or more key customers or partners; (v) the impact of COVID-19 on our business and results of operation; and (vi) changes to our abilities to recruit and retain qualified team members. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to the final Registration Statement filed with the SEC on August 5, 2020 and the Annual Report on Form 10-K for the fiscal year ended December 31, 2020 expected to be filed with the SEC on March 10, 2021. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.

Condensed Consolidated Balance Sheets (in thousands)
		As of December 31, 2020				As of December 31, 2019
ASSETS
Current assets:
Cash	$		409,309		$		33,987
Restricted cash			10,416				8,266
Other patient receivables, net			7,598				729
Capitated accounts receivable			248,902				167,429
Prepaid expenses			6,765				1,382
Other current assets			4,187				8,028
Total current assets			687,177				219,821
Long-term assets:
Property and equipment, net			78,791				67,396
Security deposits			1,339				1,494
Goodwill			9,634				9,634
Intangible assets, net			2,965				3,352
Other long-term assets			1,072				125
Total assets	$		780,978		$		301,822
LIABILITIES AND STOCKHOLDERS’ EQUITY/MEMBERS’ EQUITY
Current liabilities:
Accounts payable	$		8,816		$		10,757
Accrued compensation and benefits			31,969				28,610
Liability for unpaid claims			262,092				170,629
Other liabilities			12,612				11,001
Current portion of long-term debt			–				18,507
Total current liabilities			315,489				239,504
Long-term liabilities:
Deferred rent expense			13,532				12,901
Other long-term liabilities			28,739				10,816
Long-term debt, net of current portion			–				62,840
Total liabilities			357,760				326,061
Redeemable investor units			–				320,639
Stockholders’ equity/members’ deficit:
Members’ capital			–				4,192
Common stock			241				–
Additional paid-in capital			971,781				–
Accumulated deficit			(555,843	)			(354,355	)
Total stockholders’ equity/members’ deficit allocated to the Company			416,179				(350,163	)
Noncontrolling interests			7,039				5,285
Total stockholders’ equity/members’ deficit			423,218				(344,878	)
Total liabilities, redeemable investor units and stockholders’ equity/members’ deficit	$		780,978		$		301,822

Condensed Consolidated Statements of Operations (in thousands, except per share data)
		Three Months Ended (unaudited)								Twelve Months Ended
		December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
Revenues:
Capitated revenue	$		234,899		$		168,453		$		851,275		$		539,909
Other patient service revenue			13,803				5,147				31,490				16,695
Total revenues			248,702				173,600				882,765				556,604
Operating expenses:
Medical claims expense			175,536				126,376				617,845				385,998
Cost of care, excluding depreciation and amortization			61,025				44,783				187,510				140,853
Sales and marketing			26,764				14,259				64,211				46,189
Corporate, general and administrative expenses			72,942				29,965				185,495				79,592
Depreciation and amortization			3,166				2,215				11,225				7,848
Total operating expenses			339,433				217,598				1,066,286				660,480
Loss from operations			(90,731	)			(43,998	)			(183,521	)			(103,876	)
Other income/(expense)
Interest expense, net			24				(1,962	)			(8,712	)			(5,651	)
Other			4				25				156				84
Total other expense			28				(1,937	)			(8,556	)			(5,567	)
Net loss	$		(90,703	)	$		(45,935	)	$		(192,077	)	$		(109,443	)
Net loss attributable to noncontrolling interests			3,589				1,429				4,087				1,581
Net loss attributable to the Company	$		(87,114	)	$		(44,506	)	$		(187,990	)	$		(107,862	)
Undeclared and deemed dividends	$		–		$		(7,649	)	$		(27,220	)	$		(29,371	)
Net loss attributable to common stock/unitholders			(87,114	)			(52,155	)			(215,210	)			(137,233	)
Weighted average common stock outstanding – basic and diluted5			219,003,572			N/A					218,825,324			N/A
Net loss per share – basic and diluted	$		(0.40	)		N/A			$		(0.55	)		N/A

__________________

⁵ The Company analyzed the calculation of earnings per unit for the periods prior to the IPO (completed August 10, 2020) and determined that it resulted in values that would not be meaningful to the users of these consolidated financial statements. Therefore, earnings per unit information has not been presented for the three and twelve-months ended December 31, 2019. The basic and diluted earnings per share for the three and twelve-months ended December 31, 2020 is applicable only for the period from August 10, 2020 to December 31, 2020, which is the period following the IPO and related restructuring transactions and presents the period that the Company had outstanding common stock.

Condensed Consolidated Statements of Cash Flows (in thousands)
		December 31, 2020				December 31, 2019
Cash flows from operating activities
Net loss			(192,077	)			(109,443	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on debt and related issuance costs			4,432				1,353
Depreciation and amortization			11,225				7,848
Stock and unit-based compensation, net of forfeitures			77,431				3,729
Loss (gain) on disposal of fixed assets			–				–
Change in fair value of bifurcated derivative			152				(663	)
Change in fair value of warrant obligation			–				–
Change in operating assets and liabilities:
Accounts receivable			(88,342	)			(86,403	)
Prepaid expenses and other current assets			(1,542	)			(4,091	)
Security deposits and other long-term assets			(42	)			(155	)
Accounts payable			(3,291	)			3,782
Accrued compensation and benefits			3,359				15,448
Liability for unpaid claims			91,462				102,455
Other current liabilities			1,612				4,600
Other long-term liabilities			17,771				282
Deferred rent expense			631				5,712
Net cash used in operating activities			(77,219	)			(55,546	)
Cash flows from investing activities
Purchase of business			–				(166	)
Purchase of promissory note			(750	)			–
Purchases of property and equipment			(20,883	)			(27,705	)
Net cash used in investing activities			(21,633	)			(27,871	)
Cash flows from financing activities
Proceeds from initial public offering			377,343				–
Payments of underwriting fees, net of discounts and offering costs			(26,114	)			–
Proceeds from long-term debt			–				49,457
Principal payments on long-term debt			(80,000	)			–
End of term charge and prepayments for debt paydown			(5,779	)			–
Proceeds from issuance of redeemable investor units			224,362				1,500
Capital contributions from minority interest partners			5,943				2,646
Capital distributions to minority interest partners			(102	)			–
Tender Offer – Common Units			(19,393	)			–
Tender Offer – Investor Units			–				–
Proceeds from exercise of warrants			–				–
Proceeds from exercise of options – Common Units			64				–
Proceeds from exercise of options – Investor Units			–				–
Net cash provided by financing activities			476,324				53,603
Net change in cash, cash equivalents and restricted cash			377,472				(29,814	)
Cash, cash equivalents and restricted cash, beginning of period			42,253				72,067
Cash, cash equivalents and restricted cash, end of period			419,725				42,253

Non-GAAP Financial Measures

Certain of these financial measures are considered “non-GAAP” financial measures within the meaning of Item 10 of Regulation S-K promulgated by the SEC. We believe that non-GAAP financial measures provide an additional way of viewing aspects of our operations that, when viewed with the GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. These non-GAAP financial measures are also used by our management to evaluate financial results and to plan and forecast future periods. However, non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP measures used by other companies, including our competitors. To supplement our consolidated financial statements presented on a GAAP basis, we disclose the following Non-GAAP measures: patient contribution, platform contribution and Adjusted EBITDA as these are performance measures that our management uses to assess our operating performance. Because patient contribution, platform contribution and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes and in evaluating acquisition opportunities.

Patient Contribution Reconciliation

Patient Contribution is a non-GAAP financial measure that we define as capitated revenue less medical claims expense. The following is a reconciliation of our loss from operations, the most directly comparable GAAP financial measure, to Patient Contribution, for the three and twelve months ended December 31, 2020 and 2019.

		Three Months Ended								Twelve Months Ended
(dollars in thousands), (unaudited)		December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
Loss from operations	$		(90,731	)	$		(43,998	)	$		(183,521	)	$		(103,876	)
Other patient service revenue			(13,803	)			(5,147	)			(31,490	)			(16,695	)
Cost of care, excluding depreciation and amortization			61,025				44,783				187,510				140,853
Sales and marketing			26,764				14,259				64,211				46,189
Corporate, general and administrative expenses			72,942				29,965				185,495				79,592
Depreciation and amortization			3,166				2,215				11,225				7,848
Patient contribution	$		59,363		$		42,077		$		233,430		$		153,911

Platform Contribution Reconciliation

Platform Contribution is a non-GAAP financial measure that we define as total revenues less the sum of medical claims expense and cost of care, excluding depreciation and amortization. The following is a reconciliation of our loss from operations, the most directly comparable GAAP financial measure, to Platform Contribution, for the three and twelve months ended December 31, 2020 and 2019.

		Three Months Ended								Twelve Months Ended
(dollars in thousands), (unaudited)		December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
Loss from operations	$		(90,731	)	$		(43,998	)	$		(183,521	)	$		(103,876	)
Depreciation and amortization			3,166				2,215				11,225				7,848
Corporate, general and administrative			72,942				29,965				185,495				79,592
Sales and marketing			26,764				14,259				64,211				46,189
Platform contribution	$		12,141		$		2,441		$		77,410		$		29,753

Adjusted EBITDA Reconciliation

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net loss adjusted to exclude (i) stock and unit-based compensation expense, (ii) depreciation and amortization, (iii) other income, net and (iv) transaction and offering costs. Our management team uses Adjusted EBITDA as a performance measure in order to assess our operating performance. Because adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted EBTIDA, for the three and twelve months ended December 31, 2020 and 2019.

		Three Months Ended								Twelve Months Ended
(dollars in thousands), (unaudited)		December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
Net loss	$		(90,703	)	$		(45,935	)	$		(192,077	)	$		(109,443	)
Interest expense and other income			(28	)			1,937				8,556				5,567
Depreciation and amortization			3,166				2,215				11,225				7,848
Stock and unit-based compensation			42,971				1,895				78,612				4,099
Transaction / offering related costs			1,110				3,685				1,110				3,685
Adjusted EBITDA	$		(43,484	)	$		(36,203	)	$		(92,574	)	$		(88,244	)

Source: Oak Street Health

View source version on businesswire.com: https://www.businesswire.com/news/home/20210309005989/en/

Media:

Erica Frank

Vice President of Public Relations

(330) 990-5026

[email protected]

Investors:

Constantine Davides

(339) 970-2846

[email protected]

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS: Practice Management Insurance Nursing Managed Care General Health Health Hospitals Professional Services

MEDIA:

Posted on March 9, 2021 4:08 pm

Lyra Therapeutics Reports Fourth Quarter and Full Year 2020 Financial Results, Provides Corporate Update

Lyra Therapeutics Reports Fourth Quarter and Full Year 2020 Financial Results, Provides Corporate Update

– Positive Topline Results for LANTERN Phase 2 Study of LYR-210-

– Robert Kern, MD, appointed Chief Medical Officer –

– Conference call and webcast today at 4:30 p.m. ET –

WATERTOWN, Mass.–(BUSINESS WIRE)–
Lyra Therapeutics, Inc. (Nasdaq: LYRA), a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (ENT) diseases, today reported financial results for the fourth quarter and full year ended December 31, 2020 and provided a corporate update.

Key Fourth Quarter 2020 and Subsequent Highlights

• Company Announced Positive Topline Results for LANTERN Phase 2 Study of LYR-210. In December, Lyra announced positive topline results from its LANTERN Phase 2 study of LYR-210 for the treatment of Chronic Rhinosinusitis, including:
  • LYR-210 is the first nasal implant to achieve a benefit of up to six months after a single administration in a clinical testing, and the first nasal implant to achieve a benefit in both polyp and non-polyp patients in clinical testing.
  • 7500 mcg dose achieved statistically significant improvement in both 4 Cardinal Symptoms and SNOT-22 scores at 24 weeks and at several earlier timepoints, compared to control.
  • Lyra believes the results support a clear path to regulatory submission for LYR-210 and plans to move forward into a pivotal Phase 3 trial using the 7500 mcg dose, subject to an end of Phase 2 meeting with the FDA.

“The positive results from the LANTERN Phase 2 study point to LYR-210’s potential as an easily administered, six-month treatment for CRS patients who have failed medical management,” said Professor Anders Cervin, Garnett Passe and Rodney Williams Foundation Chair in Otolaryngology at the University of Queensland, and a Principal Investigator for Lyra’s LANTERN trial. “An intranasal implant, like LYR-210, ensures treatment compliance on the part of patients and efficiently delivers drug directly to inflamed tissue. Based on these results, I believe LYR-210 could represent a viable alternative to invasive nasal surgery for CRS patients, with as few as two ENT office visits a year.”

• Appointed Robert Kern, MD, Chief Medical Officer. In February, Lyra announced thatRobert Kern, MD had been named the company’s Chief Medical Officer. In addition to his role at Lyra, Dr. Kern will remain in his current position as the George A. Sisson Professor and Chair, Department of Otolaryngology – Head and Neck Surgery, Northwestern University Feinberg School of Medicine. Dr. Kern is the immediate past president of the American Rhinologic Society and current President of the International Society of Inflammation and Allergy of the Nose. He is a renowned physician in the ENT field and a world-leading expert in chronic rhinosinusitis with a proven track record of global leadership in otolaryngology, in both academic research and clinical rhinology.

• Added Nancy L. Snyderman, M.D. to Board of Directors. In October, the company announced that Dr. Snyderman had joined Lyra Therapeutics board. Dr. Snyderman is an accomplished otolaryngologist-head and neck surgeon and healthcare systems expert. She most recently served as Chief Medical Editor at NBC News and has more than three decades of experience as a leading voice in healthcare and medicine. Dr. Snyderman currently serves as a board member of Alkermes (NASDAQ: ALKS) and Axonics Modulation Technologies, Inc. (NASDAQ: AXNX).

“We were pleased to end our first calendar year as a public company by announcing positive topline data from our LANTERN Phase 2 Study for LYR-210. In addition, we recently strengthened our team with the additions of Dr. Kern to our management team and Dr. Snyderman to our board,” said Maria Palasis, Ph.D., President and Chief Executive Officer of Lyra Therapeutics. “Looking ahead, 2021 should be another pivotal year for Lyra as we read out the data from our PK study and plan to conduct an end of Phase 2 meeting with the FDA for LYR-210, followed by the potential initiation of a Phase 2 study for LYR-220 in the second half, and a Phase 3 pivotal trial of LYR-210 at the end of the year. I look forward to updating you on our progress.”

Financial Highlights

Cash and cash equivalents as of December 31, 2020 were $74.6 million, compared with $81.6 million as of September 30, 2020.

Research and development expenses for the quarter and full year ended December 31, 2020 were $3.7 million and $12.5 million, respectively, compared to $3.0 million and $12.0 million for the same periods in 2019, respectively.

General and administrative expenses for the fourth quarter and full year ended December 31, 2020 were $3.3 million and $9.7 million, respectively, compared to $1.4 million and $4.5 million for the same periods in 2019, respectively.

Total operating expenses for the quarter ended and full year ended December 31, 2020 were $7.1 million and $22.2 million, respectively, compared to $4.4 million and $16.5 million for the same periods in 2019, respectively.

Net loss for the fourth quarter and full year 2020 was $7.0 million and $22.1 million, respectively, compared to $4.4 million and $16.3 million for the same periods in 2019, respectively.

In terms of financial guidance for 2021, we believe that Lyra has sufficient cash to fund the company through planned operations into 2023.

Conference Call

Individuals interested in listening to the conference call may do so by dialing (833) 519-1249 for domestic callers, or (914) 800-3822 for international callers, and using the conference ID: 6979948; or from the webcast link in the investor relations section of the company’s website at: www.lyratherapeutics.com. The recorded webcast will be available for replay for approximately 30 days following the call.

Annual Meeting Date

The Board of Directors of Lyra Therapeutics, Inc. has established May 26, 2021 as the date of its Annual Meeting of Stockholders (the “2021 Annual Meeting”). The 2021 Annual Meeting will be held virtually by means of remote communication. The details of the virtual annual meeting, including how stockholders can log into the virtual meeting, vote and submit questions, will be disclosed in the Company’s definitive proxy statement for the 2021 Annual Meeting to be filed with the Securities and Exchange Commission.

Any stockholder seeking to bring business before the 2021 Annual Meeting or to nominate a director must provide timely notice, as set forth in the Company’s Amended and Restated Bylaws (the “Bylaws”). Specifically, written notice of any proposed business or nomination must be received at the Company’s principal executive offices no later than the close of business on March 19, 2021 (which is the tenth day following this public announcement of the date of the 2021 Annual Meeting). Any notice of proposed business or nomination must comply with the specific requirements set forth in the Company’s Bylaws.

About Lyra Therapeutics, Inc.

Lyra Therapeutics, Inc. is a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (ENT) diseases. The company’s lead product candidate, LYR-210, is designed to deliver up to six months of continuous anti-inflammatory drug therapy to the sinonasal passages for the treatment of chronic rhinosinusitis (CRS) in patients who have not undergone surgery for the disease. Lyra is also developing LYR-220 for CRS patients who have undergone a prior surgery and have persistent disease. Beyond CRS, the company believes its XTreo™ platform, comprised of drug administered through a bioresorbable polymeric matrix, has the potential to address other disease areas by precisely, consistently and locally delivering medicines for sustained periods with a single administration.

For more information, please visit www.lyratherapeutics.com and follow us on LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the company’s lead product candidate LYR-210 and its financial guidance for 2021. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the fact that the company has incurred significant losses since inception and expects to incur losses for the foreseeable future; the company’s need for additional funding, which may not be available; the company’s limited operating history; the fact that the company has no approved products; the fact that the company’s product candidates are in various stages of development; the fact that the company may not be successful in its efforts to identify and successfully commercialize its product candidates; the fact that clinical trials required for the company’s product candidates are expensive and time-consuming, and their outcome is uncertain; the fact that the FDA may not conclude that certain of the company’s product candidates satisfy the requirements for the Section 505(b)(2) regulatory approval pathway; the company’s inability to obtain required regulatory approvals; effects of recently enacted and future legislation; the possibility of system failures or security breaches; effects of significant competition; the fact that the successful commercialization of the company’s product candidates will depend in part on the extent to which governmental authorities and health insurers establish coverage, adequate reimbursement levels and pricing policies; failure to achieve market acceptance; product liability lawsuits; the fact that the company relies on third parties for the manufacture of materials for its research programs, pre-clinical studies and clinical trials; the company’s reliance on third parties to conduct its preclinical studies and clinical trials; the company’s inability to succeed in establishing and maintaining collaborative relationships; the company’s reliance on certain suppliers critical to its production; failure to obtain and maintain or adequately protect the company’s intellectual property rights; failure to retain key personnel or to recruit qualified personnel; difficulties in managing the company’s growth; effects of natural disasters; the fact that the global pandemic caused by COVID-19 could adversely impact the company’s business and operations, including the company’s clinical trials; the fact that the price of the company’s common stock may be volatile and fluctuate substantially; significant costs and required management time as a result of operating as a public company and any securities class action litigation. These and other important factors discussed under the caption “Risk Factors” in the company’s Annual Report on Form 10-K filed with the SEC on March 9, 2021 and its other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the company may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change.

LYRA THERAPEUTICS, INC. Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data)
		Year Ended December 31,
		2020						2019
Operating expenses:
Research and development		$	12,522					$	12,032
General and administrative			9,687						4,487
Total operating expenses			22,209						16,519
Loss from operations			(22,209	)					(16,519	)
Other income:
Interest income			82						213
Total other income			82						213
Net loss		$	(22,127	)				$	(16,306	)
Comprehensive loss		$	(22,127	)				$	(16,306	)
Net loss per share attributable to common stockholders—basic and diluted		$	(2.59	)				$	(82.23	)
Weighted-average common shares outstanding—basic and diluted			8,590,205						202,093

LYRA THERAPEUTICS, INC. Consolidated Balance Sheets (in thousands, except share and per share data)
		December 31,
		2020					2019
Assets
Current assets:
Cash and cash equivalents		$	74,593				$	9,808
Prepaid expenses and other current assets			1,324					311
Total current assets			75,917					10,119
Property and equipment, net			2,165					237
Operating lease right-of-use assets			2,301					3,182
Restricted cash			329					329
Other assets			118					1,096
Total assets		$	80,830				$	14,963
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable		$	922				$	1,069
Accrued expenses and other current liabilities			2,977					3,240
Operating lease liabilities			985					899
Total current liabilities			4,884					5,208
Operating lease liabilities, net of current portion			1,454					2,427
Total liabilities			6,338					7,635
Commitments and contingencies (Note 11)
Series A-1 redeemable convertible preferred stock, $0.001 par value; no shares issued, authorized or outstanding at December 31, 2020; 34,017,033 shares authorized, issued and outstanding at December 31, 2019			—					39,742
Series A-2 redeemable convertible preferred stock, $0.001 par value; no shares issued, authorized or outstanding at December 31, 2020; 26,680,202 shares authorized, issued and outstanding at December 31, 2019			—					18,393
Series A-3 redeemable convertible preferred stock, $0.001 par value; no shares issued, authorized or outstanding at December 31, 2020; 30,070,487 shares authorized, issued and outstanding at December 31, 2019			—					38,114
Series A-4 redeemable convertible preferred stock, $0.001 par value; no shares issued, authorized or outstanding at December 31, 2020; 19,999,999 shares authorized, issued and outstanding at December 31, 2019			—					6,000
Series B redeemable convertible preferred stock, $0.001 par value; no shares issued, authorized or outstanding at December 31, 2020; 100,018,619 shares authorized and 98,351,953 shares issued and outstanding at December 31, 2019			—					28,417
Series C redeemable convertible preferred stock, $0.001 par value; no shares authorized, issued or outstanding at December 31, 2020 and 2019			—					—
Total redeemable convertible preferred stock			—					130,666
Stockholders’ equity (deficit):
Common stock, $0.001 par value; 200,000,000 and 275,000,000 shares authorized at December 31, 2020 and 2019, respectively; 12,932,377 and 230,860 shares issued and outstanding at December 31, 2020 and 2019, respectively			13					—
Additional paid-in capital			224,363					4,419
Accumulated deficit			(149,884	)				(127,757	)
Total stockholders’ equity (deficit)			74,492					(123,338	)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)		$	80,830				$	14,963

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210309005931/en/

Media Contact:

Kathryn Morris

914-204-6412

[email protected]

Investor Contact:

Laurence Watts

619-916-7620

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Biotechnology Other Health Hospitals Health Pharmaceutical

MEDIA:

Posted on March 9, 2021 4:08 pm

Chewy Announces Fiscal Fourth Quarter and Full Year 2020 Financial Results Conference Call

Chewy Announces Fiscal Fourth Quarter and Full Year 2020 Financial Results Conference Call

DANIA BEACH, Fla.–(BUSINESS WIRE)–
Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted online destination for pet parents and partners everywhere, today announced it will report fiscal fourth quarter and full year 2020 financial results after the market close on Tuesday, March 30, 2021. Management will host a conference call and webcast to discuss the Company’s financial results at 5:00 pm ET.

Chewy Fiscal Fourth Quarter and Full Year 2020 Financial Results Conference Call

When: Tuesday, March 30, 2021

Time: 5:00 pm ET

Conference ID: 10152349

Live Call: 1-866-270-1533 (US/Canada Toll-Free) or 1-412-317-0797 (International)

Replay: 1-877-344-7529 (US Toll-Free), 855-669-9658 (Canada Toll-Free) or 1-412-317-0088 (International)

(The replay will be available approximately two hours after the completion of the live call until 11:59 pm ET on April 06, 2021)

Webcast:https://investor.chewy.com

About Chewy

Our mission is to be the most trusted and convenient online destination for pet parents (and partners) everywhere. We believe that we are the preeminent online source for pet products, supplies and prescriptions as a result of our broad selection of high-quality products, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch. We continually develop innovative ways for our customers to engage with us, and partner with more than 2,000 of the best and most trusted brands in the pet industry, to bring a high-bar, customer-centric experience to our customers.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210309005890/en/

Media Contact:

Diane Pelkey

[email protected]

Investor Contact:

Robert LaFleur

[email protected]

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Online Retail Consumer Retail Pets Specialty

MEDIA:

Posted on March 9, 2021 4:08 pm

Espey Suspends Dividend

SARATOGA SPRINGS, N.Y., March 09, 2021 (GLOBE NEWSWIRE) — The Board of Directors of Espey Mfg. & Electronics Corp. (NYSE AMERICAN: ESP) has suspended its quarterly dividend.

The Board of Directors of Espey Mfg. & Electronics Corp. has determined to suspend payment of a cash dividend which, in accordance with practice, would have been declared and paid prior to the end of this month. In making the determination, the Board balanced the objective of maintaining Espey’s strong position to address the business challenges caused by the global pandemic which continue to confront the industries the Company services, against the historical payment of consistent dividends to shareholders.

Patrick Enright, Espey’s President and CEO, explained the Board’s decision. “The continued decline of the rail industry, the virtual collapse of the commercial airline market, the global shortage of electronic components and the erosion of on-time performance throughout the entire supply chain, will continue to contribute to delays in deliveries of product by the Company and put pressure on our earnings. We believe that conservative stewardship of our strong cash position will enable us to weather the current headwinds and to make timely and strategic investments in personnel and new programs. The Company has a robust backlog of orders and the Board determined that this approach will enable Espey to come through the pandemic in a strong position to deliver existing orders effectively and efficiently.”

Espey’s primary business is the development, design, and production of specialized military and industrial power supplies/transformers.  The Company can be found on the Internet at www.espey.com.

For further information, contact Mr. David O’Neil at (518) 245-4400. 

Certain statements in this press release are “forward-looking statements” and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

Posted on March 9, 2021 4:08 pm

Dr. Robert M. Brill Elected to CVD’s Board of Directors

Dr. Robert M. Brill Elected to CVD’s Board of Directors

CENTRAL ISLIP, N.Y.–(BUSINESS WIRE)–
CVD Equipment Corporation (NASDAQ: CVV), a leading provider of chemical vapor deposition systems and materials, today announced that its Board of Directors elected Dr. Robert M. Brill to serve as a director of the Company, expanding its Board to six directors, effective as of March 6, 2021. Dr. Brill had previously served on the Company’s Board from April 2018 until October 2019, at which time he stepped down for personal reasons.

Dr. Robert M. Brill was co-founder and managing partner of Newlight Management, headquartered in Jericho, New York, a venture capital fund that focused on early stage technology companies. Prior to co-founding Newlight, Dr. Brill was a general partner of Poly Ventures, a Long Island based venture capital fund. Newlight and Poly Ventures have collectively invested in over 60 private companies including Long Island based Fatwire, Invision, and Globecomm. He is currently on the Board of Directors of the L.I. Angel Network, the L.I. High Tech Incubator and several private companies. He has previously served on the Board of Directors of multiple public and private companies.

Prior to joining Poly Ventures, Dr. Brill was a successful turnaround CEO at both private and public companies. He served as General Manager of Harris Corporation’s CMOS Semiconductor Division where he was responsible for launching the world’s first two commercial 16-bit CMOS microprocessors. He also held various technical and management positions at IBM’s semiconductor operation.

Dr. Brill holds a Ph.D. in nuclear physics from Brown University and a B.A. and a B.S. in Engineering Physics from Lehigh University. He is a member of Phi Beta Kappa and Tau Beta Pi. He is a founding member of the Technical Advisory Board of the Semiconductor Research Corporation and was elected to the L.I. Technology Hall of Fame. He holds multiple patents and invention disclosures.

Lawrence J. Waldman Board Chairman of CVD Equipment Corporation welcomed back Dr. Brill to the Board, stating “We are delighted to welcome Dr. Brill back as a member of the board. He will be a valuable addition through his insight, market knowledge, and broad range of technical and industry experience, we look forward to working with Bob again.”

About CVD Equipment Corporation

CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, gas control, and other state-of-the-art equipment and process solutions used to develop and manufacture materials and coatings for research and industrial applications. This equipment is used by its customers to research, design, and manufacture these materials or coatings for aerospace engine components, medical implants, semiconductors, solar cells, smart glass, carbon nanotubes, nanowires, LEDs, MEMS, and other applications. Through its application laboratory, the Company provides process development support and process startup assistance with the focus on enabling tomorrow’s technologies™. It’s wholly owned subsidiary CVD Materials Corporation provides advanced materials and metal surface treatments and coatings to serve demanding applications in the electronics, aerospace, biomedical, petroleum, pharmaceutical, and many other industrial markets.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as “forward-looking statements, “as such term is defined in Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, conditions, success of CVD Equipment Corporation’s growth and sales strategies, the possibility of customer changes in delivery schedules, cancellation of, or failure to receive orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210309005705/en/

Thomas McNeill

Phone : (631) 981-7081

Fax : (631) 981-7095

Email : [email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Chemicals/Plastics Manufacturing

MEDIA:

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