Market Newsdesk

EDMONDS, Wash., March 03, 2021 (GLOBE NEWSWIRE) — Jetoptera was recently awarded two 2021 Small Business Technology Transfer (STTR) contracts from the USAF to further characterize the noise of its patented Fluidic Propulsive System (FPS™) in an anechoic chamber wind tunnel and to prove that the FPS™ used with an Upper Surface Blown Wing (USB) configuration will produce specific lift force levels similar to those of a rotor-wing aircraft, yet without moving parts.

For the first contract, Jetoptera has partnered with the University of Notre Dame (Professor Scott Morris) to employ the anechoic wind tunnel in their Turbomachinery Labs and characterize the aero performance and acoustics signature of the FPS™ and compare it to similar thrust propulsors currently employed in Unmanned Aerial Vehicles (UAV) and Urban Air Mobility (UAM) concepts. “We will compare the FPS™ and three other propulsion technologies that are the legacy propulsors for Vertical Take Off and Landing (VTOL) UAVs and UAM vehicles using a similar power supply for each. Having already established our FPS™ lower noise emissions potential versus a propeller under another program, this time we will be using an anechoic chamber and a different measurement system, with the goal of confirming the advantages of the propulsion technology we have invented,” said Dr. Andrei Evulet, CEO of Jetoptera, Inc.

Jetoptera has also partnered with the University of Washington (Professor Alberto Aliseda) to employ the Kirsten Wind Tunnel to demonstrate feasibility of lift and thrust augmentation by a wing-integrated Fluidic Propulsion System via the Boundary Layer Ingestion and Upper Blown Surface Jet Mechanisms. Our goal is to find the maximum vertical lift produced with this combination and demonstrate that by distributing the FPS™ along a wing we can produce a specific lift force (lbf/hp) similar to a low disk load rotor employed by rotary wing aircraft. “We will investigate and find the optimal architecture for the use of the wing for VTOL in conjunction with the FPS™ and how it could match the performance of a rotor, by using the same power, but without the large, noisy, moving parts,” said Dr. Evulet.

“We are on the technological design path to demonstrate that an aircraft using the FPS™ is quieter, faster, simpler, more compact and less expensive than a rotor or propeller driven aircraft. Combined with FPS™’ agnosticism to energy sources – it can be powered by jet fuels, Diesel, SAF, hydrogen or electric – we are confident about the superiority of our propulsion solution as noise, safety and performance continue to be major challenges in unmanned and manned aviation,” added Dr. Evulet.

The period of performance is six months for each contract.

For further information on Jetoptera contact Todd Newton, [email protected]

KING CITY, Ontario, March 03, 2021 (GLOBE NEWSWIRE) — TWC Enterprises Limited (TSX: TWC)

Con
s
olidat
e
d
Financia
l
Highlight
s
(
u
naudit
e
d)

(in thousands of dollars except per share amounts)	Thr e e months e nd e d		Yea r e nd e d
	De c em b e r 3 1, 2020	De c em b e r 3 1, 2019	De c em b e r 3 1, 2020	December 31, 20 19
Net earnings	8,359	4,859	971	4,904
Basic and diluted earnings per share	0.33	0.18	0.04	0.18

Oper
a
t
in
g
Data

	Thr e e months e nd e d		Yea r e nd e d
	De c em b e r 3 1, 2020	De c em b e r 3 1, 2019	De c em b e r 3 1, 2020	De c em b e r 3 1, 2019
ClubL i nk
Canadian Full Privilege Golf Members			14,705	14,193
Championship rounds – Canada	232,000	115,000	1,223,000	1,069,000
18-hole equivalent championship golf courses – Canada			39.5	41.5
18-hole equivalent managed championship golf courses – Canada			1.0	1.0
Championship rounds – U.S.	58,000	77,000	249,000	331,000
18-hole equivalent championship golf courses – U.S.			8.0	11.0

The following is a breakdown of net operating income by segment.

		Year Ended			Year Ended
(thousands of Canadian dollars)		December 31, 2020			December 31, 2019
Net operating income (loss) by segment
Canadian golf club operations		$	46,213		$	31,267
US golf club operations
(2020 – US $449,000; 2019 – US $695,000)			567			931
Corporate operations			(2,869	)		(3,212	)
Net operating income (1)		$	43,911		$	28,986

The following is an analysis of net earnings:

		Year Ended			Year Ended
(thousands of Canadian dollars)		December 31, 2020			December 31, 2019
Operating revenue		$	127,216		$	163,641
Direct operating expenses (1)			83,305			134,655
Net operating income (1)			43,911			28,986
Amortization of membership fees			4,585			5,146
Depreciation and amortization			(19,249	)		(20,119	)
Interest, net and investment income			(3,609	)		(4,923	)
Other items			(21,458	)		(1,644	)
Impairment expense			–			(352	)
Income taxes			(3,209	)		(2,190	)
Net earnings		$	971		$	4,904

Direct operating expenses are calculated as follows:

		Year Ended			Year Ended
(thousands of Canadian dollars)		December 31, 2020			December 31, 2019
Cost of sales		$	11,236		$	22,414
Labour and employee benefits		39,358			70,475
Utilities		7,049			8,118
Selling, general and administrative expenses		3,906			5,454
Property taxes		3,401			3,450
Repairs and maintenance		3,184			4,241
Insurance		2,970			2,724
Fertilizers and pest control products		1,911			2,378
Fuel and oil		908			1,357
Other operating expenses		9,382			14,044
Direct Operating Expenses (1)		$	83,305		$	134,655

⁽¹⁾ Please see Non-IFRS Measures on page following

2020 Conso
l
idated
Highlights

As a result of the COVID-19 pandemic, the Company closed all golf clubs in mid-March in order to adhere to government restrictions that involve social gatherings and ensure the health and wellbeing of members and staff alike. This has and will continue to impact revenue streams such as corporate events, banquets, weddings and food and beverage. As government closure orders were lifted, Ontario courses were re-opened on May 16th, 2020 and Quebec courses were re-opened on May 20th, 2020, but social distancing requirements continue to prohibit certain revenue streams such as corporate events, banquets, weddings, meetings and other large gatherings. All Florida courses were re-opened by May 2nd. The Company will continue to adhere to guidance provided by governments and regulatory authorities.

Due to overwhelming demand for golf amongst the Company’s members and customers, golf revenue increased 36.7% to $33,241,000 in 2020 from $24,312,000 in 2019 for the Canadian golf operations.

Consolidated operating revenue decreased 22.3% to $127,216,000 in 2020 from $163,641,000 in 2019 due to the decline in revenue from the impact of COVID-19. This decline is due to streams of revenue that have been lost due to regulations surrounding COVID-19. Group business has been minimal, including corporate events, weddings, banquets or resort stays, as social distancing measures remain in place.

Direct operating expenses decreased 38.1% to $83,305,000 in 2020 from $134,655,000 in 2019 due to the fact that certain revenue streams were reduced which all had costs associated with them. Certain cost saving measures have been enacted in order to help offset the revenue declines. Expenses also significantly declined during the spring of 2020 when the Company was not allowed to operate. Labour and employee benefits for the Canadian golf operations have decreased 48.4% to $30,340,000 in 2020 from $58,944,000 in 2019 as a result of these changes and the recording of the Canada Emergency Wage Subsidy.

Net operating income for the Canadian golf club operations segment increased to $46,213,000 in 2020 from income of $31,267,000 in 2019 despite the impact of COVID-19 on streams of revenue relating to group business.

Interest, net and investment income decreased 26.7% to an expense of $3,609,000 in 2020 from $4,923,000 in 2019 due to a decrease in borrowings and an increase in investment income from the Company’s investment in Automotive Properties REIT.

Other items consist of the following income (loss) items:

(thousands of Canadian dollars)			2020			2019
Gain on sale of property, plant and equipment		$	1,416		$	525
Insurance proceeds			–			2,141
Foreign exchange gain (loss)			1,256			(6,944	)
Unrealized gain (loss) on investment in marketable securities			(7,311	)		2,426
Loss on sale of common shares in Carnival plc			(16,240	)		–
Equity income from investments in joint ventures			115			1,135
Other			(694	)		(927	)
Other items		$	(21,458	)	$	(1,644	)

The exchange rate used for translating US denominated assets has changed from 1.2988 at December 31, 2019 to 1.2732 at December 31, 2020. This has resulted in a foreign exchange gain of $1,256,000 in 2020 on the translation of the Company’s US denominated financial instruments.

On July 13, 2020, ClubLink sold Club de Golf Val des Lacs for proceeds of $1,750,000, including a vendor take-back mortgage of $300,000. Net proceeds totalled $1,680,000 and ClubLink recorded a gain of $835,000 on the sale.

Net earnings decreased to $971,000 in 2020 from $4,904,000 in 2019 due to the loss on the sale of Carnival shares. Basic and diluted earnings per share decreased to 4 cents per share in 2020, compared to 18 cents in 2019.

No
n
–
IFR
S
M
easu
r
es

TWC uses non-IFRS measures as a benchmark measurement of our own operating results and as a benchmark relative to our competitors. We consider these non-IFRS measures to be a meaningful supplement to net earnings. We also believe these non-IFRS measures are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. These measures, which included direct operating expenses and net operating income do not have standardized meaning under IFRS. While these non-IFRS measures have been disclosed herein to permit a more complete comparative analysis of the Company’s operating performance and debt servicing ability relative to other companies, readers are cautioned that these non-IFRS measures as reported by TWC may not be comparable in all instances to non-IFRS measures as reported by other companies.

The glossary of financial terms is as follows:

Dire
c
t
oper
a
ting
exp
e
n
s
es = expenses that are directly attributable to company’s business units and are used by management in the assessment of their performance. These exclude expenses which are attributable to major corporate decisions such as impairment.

Ne
t
operatin
g
incom
e = operating revenue – direct operating expenses

Net operating income is an important metric used by management in evaluating the Company’s operating performance as it represents the revenue and expense items that can be directly attributable to the specific business unit’s ongoing operations. It is not a measure of financial performance under IFRS and should not be considered as an alternative to measures of performance under IFRS. The most directly comparable measure specified under IFRS is net earnings.

Eligibl
e
Cas
h
Dividend

Today, TWC Enterprises Limited announced an eligible cash dividend of 2 cents per common share to be paid on March 31, 2021 to shareholders of record as at March 15, 2021.

Corp
o
r
at
e
Profile

TWC is engaged in golf club operations under the trademark, “ClubLink One Membership More Golf.” TWC is Canada’s largest owner, operator and manager of golf clubs with 48.5 18-hole equivalent championship and 3.5 18-hole equivalent academy courses (including one managed property) at 37 locations in Ontario, Quebec and Florida.

For further information please contact:

Andrew Tamlin
Chief Financial Officer
15675 Dufferin Street
King City, Ontario L7B 1K5
Tel: 905-841-5372 Fax: 905-841-8488
atamlin@clublink.ca

M
a
n
a
gemen
t
’
s
d
i
scus
s
io
n
a
nd
a
n
a
l
y
s
i
s,
f
i
n
a
nci
al
s
ta
t
eme
n
t
s
an
d
oth
e
r
d
is
c
l
o
su
re
in
f
o
r
ma
t
io
n r
e
l
at
i
n
g
t
o
th
e
C
o
mpa
ny
i
s
ava
i
labl
e
t
h
rou
gh
S
EDA
R
a
n
d
a
t


www


.


sedar.com


a
n
d on
t
h
e
C
o
m
p
a
ny
web
s
i
te
a
t


www


.


tw


c


ent


e


r


prises.


c


a

SANTA FE, N.M., March 03, 2021 (GLOBE NEWSWIRE) — Now available on Amazon Books, “Wounded Workers” from Working Man’s Press is Dr. Bob Larsen’s first book intended for an audience of folks who have worked or are still working. It takes readers to the inner sanctum of a psychiatrist’s notes, never seen before! This book honoring workers might be the perfect gift from employers to their staff on March 5, designated as “Employee Appreciation Day.”

The book recounts the compelling stories of America’s workforce subjected to physical and psychological trauma for doing their jobs. The book relates tales from the trenches, of workers tormented by ill fortune, both natural and man-made. A bank teller robbed one too many times, a paramedic who cannot save his own father’s life, a prostitute who becomes an advocate for sex workers and other unfortunate employees who find themselves sent to this author-psychiatrist for rescue. Readers will be exposed to stories of workers subjected to shootings, amputations, sexual assaults, and healthcare-induced disability. You will relate to the plight, courage and persistence of victims who could be your neighbor, friend, family member or co-worker. You will be glued to the couch while turning pages. Dr. Bob Larsen’s own personal journey as a working-class kid who becomes a scientist, physician and professor is intertwined with the dynamics of victimization, recovery, and advocacy.

I love books that, besides being well-written and entertaining, help me learn something important. “Wounded Workers” will grab your attention while experiencing the human response to horrific, yet common critical incidents. Clinical terminology is minimized. You won’t need a medical degree to understand what these workers go through. “I love books that, besides being well-written and entertaining, help me learn something important. Wounded Workers is one of those! Dr. Bob Larsen skillfully interweaves the inspiring story of his development from a self-described nerdy kid to a well-regarded psychiatrist and advocate for working people. The text explodes with fascinating stories of clients Dr. Bob has helped and with tales of those who mentored and helped him. A crusader for making mental health care accessible as a basic human right, Dr. Bob’s advocacy sought to persuade insurance companies and employers to consider the long-term psychological impact of debilitating work-related injuries. Some of the many moving encounters highlight the amazing resilience of maimed and traumatized workers who, instead of giving up, found value in the life that was left for them. Dr. Bob’s descriptions of how his clients struggled to deal with the psychological effects of loss of limbs, scarring accidents, and other traumatic events testify to the need for major and compassionate change. Many of the stories focus on “essential workers,” people who need the practical and kind advice of a working man’s shrink more than ever. His astute observations on overcoming victimization and the inspiring reality of Post Traumatic Growth resonated deeply with me, especially in the trying times of COVID grief and isolation. Wounded Workers will resonate with general readers as well as anyone with a special interest in mental health care and making it more accessible as a basic human right.” Anne Hillerman N. Y. Times Best-Selling Author A wise, entertaining memoir … “Wounded Workers” is a wise, entertaining memoir that teaches while it describes Dr. Larsen’s journey at becoming an occupational psychiatrist. From “slap therapy” to “post traumatic growth”, it introduces new ideas that challenge our field. The clinical tales are often gripping and self-revelatory. This is a wonderful read for clinicians, trainees and anyone interested in the richness that is the practice of psychiatry today. Steven S. Sharfstein, M.D. President Emeritus, Sheppard Pratt Health System, Past President, American Psychiatric Association

Dr. Bob Larsen is a working-class kid who grew up to become a ‘working man’s shrink’. He has more degrees than a thermometer.

Forsaking a career in molecular and cellular biology, Dr. Bob opted to attend medical school at Northwestern University where he was smitten by the field of psychiatry, never having taken a course in psychology. He then bypassed his alma mater in Colorado to complete a residency at UCSF, a Robert Wood Johnson fellowship at Stanford/UCSF, and an MPH at Cal. As a Clinical Professor at UCSF, his expertise is in the fields of occupational and forensic psychiatry.

Dr. Bob served on the Industrial Medical Council for its entire thirteen-year existence. He has done yeoman’s work for impaired physicians, seriously injured workers, and all who confront stodgy bureaucrats in our health care system. He is a member of the American College of Psychiatrists and the Group for the Advancement of Psychiatry.

For more information, visit Dr. Bob’s website at https://workingmansshrink.com. To purchase “Wounded Workers,” visit Amazon Books.

Contact Information:

Working Man’s Press
Dr. Bob Larsen, Author & Publisher
7 Paintbrush Circle
Santa Fe, NM 87506
Tel: 415-310-5973
Email: [email protected]
Website: http://www.WorkingMansShrink.com

YERINGTON, Nev., March 03, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU)(OTC: NEVDF) (“Nevada Copper” or the “Company”) announces that Ricardo De Armas has resigned as a director of the Company, effective March 2, 2021, in order to devote his attention to other professional commitments. The board of directors of the Company would like to thank Mr. De Armas for his contributions and they wish him success in his future endeavours.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.

NEVADA COPPER CORP.

www.nevadacopper.com

Mike Ciricillo, President and CEO

For further information contact:

Rich Matthews, Investor Relations
Integrous Communications
[email protected]
+1 604 757 7179

Fourth Quarter 2020 – Preliminary

• 4Q 2020 Net sales $243 million, down 6.0%
• 4Q 2020 Gross margin 39.5%, an increase of 150 basis points
• 4Q 2020 Loss from continuing operations attributable to GCP shareholders of $0.8 million

Full Year 2020 – Preliminary

• 2020 Net sales of $903 million, down 10.9%
• 2020 Gross margin 39.6% an increase of 170 basis points
• 2020 Income from continuing operations attributable to GCP shareholders of $101 million versus $41 million in 2019 and Diluted EPS from continuing operations attributable to GCP shareholders of $1.37 versus $0.56
• Net cash provided by operating activities from continuing operations of $73.3 million

CAMBRIDGE, Mass., March 03, 2021 (GLOBE NEWSWIRE) — GCP Applied Technologies Inc. (NYSE: GCP), a leading global provider of construction products technologies, today announced preliminary results for the fourth quarter and full year 2020.

For the three months ended December 31, 2020, GCP reported net sales of $242.7 million compared to $258.3 million in the prior year quarter. Net Sales Constant Currency Excluding Market Exits* were $242.2 million versus $255.3 million in the prior year quarter. Loss from continuing operations attributable to GCP shareholders was $0.8 million compared to income of $6.6 million in the fourth quarter of 2019, while Adjusted EBIT* was $27.2 million compared to $31.3 million in the prior year quarter. Diluted (loss) earnings per share from continuing operations attributable to GCP shareholders was $(0.01) versus $0.09 in the fourth quarter of 2019, while Adjusted EPS* was $0.22 compared to $0.29 in the prior year quarter.

Commenting on GCP’s preliminary quarter and full year results, Simon Bates, President and Chief Executive Officer, said, “Our performance for the quarter was in line with our expectations. GCP continued to generate cash with $76.3 million in Adjusted Free Cash Flow* for a full year reflecting our commitment to better allocate capital and manage our overall investments in the best interests of shareholders.”

Bates continued, “We anticipate the impacts of COVID-19 to continue into 2021, despite the advancements with vaccinations and continued safety measures, especially in commercial construction. However, we have strong brands, a strong sales organization and our senior management is committed to improving our results in 2021. We will focus on building our organizational capabilities which include upgrading our managerial talent, building more robust processes across the organization and better deploying our technology. We expect this work to stabilize revenues and improve profitability which is our strategic focus this year.”

*Non-GAAP financial measures. See the tables herein for important information regarding these measures and a reconciliation to the most comparable GAAP measures.

NM – Not meaningful.

Total GCP Applied Technologies


($ Millions)

	Q4 2020		% Change		FY 2020		% Change
Net sales	$242.7		(6.0)%		$903.2		(10.9)%
Net Sales, Constant Currency*	$242.2		(6.2)%		$911.5		(10.1)%
Net Sales Constant Currency Excluding Market Exits*	$242.2		(5.1)%		$911.5		(9.0)%
Gross margin	39.5%		150 bps		39.6%		170 bps
(Loss) income from continuing operations attributable to GCP shareholders	$(0.8)		NM		$100.5		NM
(Loss) income from continuing operations attributable to GCP shareholders as a percentage of net sales	(0.3)%		(290) bps		11.1%		710 bps
Diluted EPS from continuing operations attributable to GCP shareholders	$(0.01)		NM		$1.37		NM
Adjusted EPS*	$0.22		(24.1)%		$0.73		(11.0)%
Adjusted EBIT*	$27.2		(13.1)%		$92.6		(9.7)%
Adjusted EBIT Margin*	11.2%		(90) bps		10.3%		20 bps
Adjusted EBITDA*	$39.0		(9.1)%		$139.0		(4.7)%
Adjusted EBITDA Margin*	16.1%		(50) bps		15.4%		100 bps

Fourth Quarter 2020 Details:

• Net sales decreased 6.0% primarily due to lower global construction activity as a result of the global pandemic. Price and foreign currency translation were favorable 0.7% and 0.2%, respectively. Net Sales Constant Currency Excluding Market Exits* decreased 5.1%.
• Gross margin increased 150 basis points to 39.5% primarily due to logistics productivity and raw material deflation partially offset by lower sales volumes associated with reduced global construction activity.
• Loss from continuing operations attributable to GCP shareholders was $0.8 million compared to income of $6.6 million for the prior year quarter. The decrease was primarily due to higher restructuring costs and income tax expense partially offset by lower mark to market pension losses.
• Adjusted EBIT* of $27.2 million decreased 13.1% primarily due to lower SCC and SBM operating income and higher corporate costs. Adjusted EBIT Margin* of 11.2% decreased 90 basis points versus the prior year quarter.

Fourth Quarter Segment Performance

Specialty Construction Chemicals


($ Millions)

	Q4 2020		% Change		FY 2020		% Change
Net sales	$139.3		(4.1)%		$518.9		(10.4)%
Net Sales, Constant Currency*	$139.9		(3.7)%		$527.5		(8.9)%
Net Sales, Constant Currency Excluding Market Exits*	$139.9		(1.6)%		$527.5		(7.0)%
Gross margin	38.9%		180 bps		39.1%		310 bps
Segment operating income	$15.1		(2.6)%		$52.9		(7.0)%
Segment operating margin	10.8%		10 bps		10.2%		40 bps

• Net sales decreased 4.1% due to lower construction activity as a result of the global pandemic. Price increase of 1.2% more than offset the unfavorable impact of foreign currency translation. Net Sales Constant Currency Excluding Market Exits* decreased 1.6%.
• Gross margin increased 180 bps primarily due to operations and logistics productivity partially offset by lower sales volumes due to the pandemic.
• Segment operating income decreased due to lower sales volumes impacting operating leverage partially offset by operational and logistics productivity.
• Segment operating margin increased 10 bps primarily due to higher gross margin.

Specialty Building Materials


($ Millions)

	Q4 2020		% Change		FY 2020		% Change
Net sales	$103.4		(8.6)%		$384.3		(11.5)%
Net Sales, Constant Currency*	$102.3		(9.5)%		$384.0		(11.6)%
Gross margin	40.5%		120 bps		40.7%		— bps
Segment operating income	$19.7		(10.5)%		$71.1		(17.6)%
Segment operating margin	19.1%		(40) bps		18.5%		(140) bps

• Net sales decreased 8.6% due to reduced construction activity as a result of the global pandemic, principally in North America. Price was flat compared with prior year quarter and foreign currency translation positively impacted sales by 1%.
• Gross margin of 40.5% increased 120 basis points primarily due to raw material deflation.
• Segment operating income of $19.7 million decreased 10.5% due to lower sales volumes impacting operating leverage partially offset by lower operating expense due to reduced discretionary spending.

Capital Allocation and Liquidity

GCP remains committed to maintaining a disciplined approach to capital allocation and preserving the Company’s strong balance sheet. GCP’s cash balance at the end of the fourth quarter of 2020 was $482.7 million. GCP has access to additional liquidity in the form of a $350 million revolving credit facility maturing in 2023, which brings total liquidity sources to approximately $870 million as of December 31, 2020, to enable GCP to weather any effects from the COVID-19 pandemic and invest in the business.

Restructuring and Repositioning Plans

GCP’s restructuring and repositioning plans are focused on both business segments, its global supply chain, and its general administration and business support functions. The plans are designed to reduce the Company’s complexity, create a more efficient and effective organization, and generate cost reductions from 2018 through 2022. Please refer to the 10K for the details of these plans. GCP will continue to evaluate opportunities to improve its operations and cost structure beyond its currently active initiatives.

Impact of COVID-19 Pandemic

In March 2020, the World Health Organization declared the novel coronavirus (“COVID-19”) outbreak to be a global pandemic. The global health crisis caused by the COVID-19 outbreak, including any resurgences, has and will continue to negatively impact global economic activity. The Company has been closely monitoring the impact of COVID-19 and managing the effects on its business globally as the situation continues to evolve.

COVID-19 has negatively impacted GCP’s operating results in 2020 primarily due to periodic closures of its facilities in all regions in which the Company operates, and periodic mandatory halts of construction activity in specific cities and countries around the world by government authorities or voluntary closures due to safety concerns. The impact of COVID-19 on GCP’s business varied across different geographies and product lines during 2020. The Company has taken actions to preserve its liquidity by reducing discretionary spending and certain planned capital expenditures.

It is difficult for the Company to predict at this time the duration and extent of the impact of COVID-19 on the global construction industry and its business, financial position, results of operations, and liquidity although it expects that managing the impacts of the pandemic will be a part of its ongoing operations for the foreseeable future. Factors GCP is monitoring to assess the potential duration and extent of the impact of COVID-19 on its operations include the health of the global economy and construction industry, specifically on demand drivers for its construction products, as well as operational disruptions including those resulting from government actions, such as mandatory halts of construction activity, travel restrictions, as well as facility and work site closures. The Company will continue to prioritize the health and safety of its employees and serving its customers while minimizing disruption to the extent possible. GCP will also continue to monitor the health of the construction industry in the geographic markets in which it operates and respond accordingly.

Note on Revisions of Previously Issued Consolidated Financial Statements

In connection with the preparation of the consolidated financial statements for the year ended December 31, 2020, the Company identified expense accruals and other adjustments in its previously filed 2019 and 2018 annual consolidated financial statements and unaudited quarterly consolidated financial statements for each of the quarterly periods of 2020 and 2019. Please refer to the Form 10K for the year ended December 31, 2020 to be filed with the SEC for more information.

Investor Call

GCP has scheduled a conference call and webcast at 10:00 a.m. ET today to review its 2020 results and 2021 outlook. Those who wish to listen to the conference call webcast should visit the Investors section of the GCP website at www.gcpat.com. The live call can be accessed by dialing +1 844-887-9408 in the U.S. or +1 (412) 317-9261 internationally prior to the start of the call. Participants should ask to join the GCP Applied Technologies earnings call. An accompanying slide presentation will also be available on the website.

For those unable to participate in the live conference call, a playback will be available until March 11, 2021. To listen to the playback, please dial +1 (877) 344-7529 in the U.S. or +1 (412) 317-0088 internationally; the access code is 10151373. An audio webcast replay will also be available in the “Events and Presentations” section of the company’s website for approximately three months.

Non-GAAP Financial Measures

In this press release the Company refers to non-GAAP financial measures including: Net Sales Constant Currency, Net Sales Constant Currency Excluding Market Exits, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBIT, Adjusted EBIT Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, and Adjusted EPS. These non-GAAP measures do not purport to represent income or liquidity measures as defined under United States generally accepted accounting principles (“GAAP”), and should not be considered as alternatives to such measures as an indicator of GCP’s performance. These measures are provided to investors and others to improve the period-to-period and peer-to-peer comparability of GCP’s financial results and to ensure that investors understand the information GCP uses to evaluate the performance of its businesses.

The Analysis of Operations pages included in this press release provide reconciliations of these non-GAAP financial measures to their most comparable GAAP measures, as well as definitions for each of these non-GAAP financial measures and explanations as to why management finds them useful and believes they are useful to investors, potential investors and others.

Investor Relations Betsy Cowell T +1 617.498.4568 [email protected]

About GCP Applied Technologies

GCP is a leading global provider of construction products technologies that include admixtures and additives for concrete and cement, the in-transit concrete management system, high-performance waterproofing products, and specialty construction products. GCP products have been used to build some of the world’s most renowned structures. More information is available at www.gcpat.com.

This announcement contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when GCP or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance but instead represent only the beliefs of GCP and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside GCP’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; strategic alternatives; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets for securities. Like other businesses, we are subject to risks and uncertainties that could cause our actual results to differ materially from our projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements, or that could cause other forward-looking statements to prove incorrect, include, without limitation, risks related to: the cyclical and seasonal nature of the industries that GCP serves; foreign operations, especially in emerging regions; changes in currency exchange rates; business disruptions due to public health or safety emergencies, such as the novel strain of coronavirus (“COVID-19”) pandemic; the cost and availability of raw materials and energy; the effectiveness of GCP’s research and development, new product introductions and growth investments; acquisitions and divestitures of assets and gains and losses from dispositions; developments affecting GCP’s outstanding liquidity and indebtedness, including debt covenants and interest rate exposure; developments affecting GCP’s funded and unfunded pension obligations; warranty and product liability claims; legal proceedings; the inability to establish or maintain certain business relationships and relationships with customers and suppliers or the inability to retain key personnel; the handling of hazardous materials and the costs of compliance with environmental regulations; extreme weather events and natural disasters. These and other factors are identified and described in more detail in GCP’s Annual Report on Form 10-K, which has been filed with the U.S. Securities and Exchange Commission and is available online at www.sec.gov, and subsequent quarterly reports. Readers are cautioned not to place undue reliance on GCP’s projections and other forward-looking statements, which speak only as of the date thereof. GCP undertakes no obligation to publicly release any revision to its projections and other forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.

GCP Applied Technologies Inc. Consolidated Statements of Operations (unaudited)
	Three Months Ended December 31,										Year Ended December 31,
(In millions, except per share amounts)	2020					2019					2020					2019
Net sales	$	242.7				$	258.3				$	903.2				$	1,013.5
Cost of goods sold	146.8					160.2					545.3					629.8
Gross profit	95.9					98.1					357.9					383.7
Selling, general and administrative expenses	65.7					66.2					264.5					272.8
Research and development expenses	4.8					4.6					17.9					18.4
Interest expense and related financing costs	5.2					5.4					21.5					22.7
Repositioning expenses	1.6					4.8					5.4					20.4
Restructuring expenses and asset write offs	13.7					1.1					24.9					9.9
Gain on sale of corporate headquarters	—					—					(110.2		)			—
Other expenses (income), net	2.9					10.0					(3.8		)			4.3
Total costs and expenses	93.9					92.1					220.2					348.5
Income from continuing operations before income taxes	2.0					6.0					137.7					35.2
(Provision) benefit from income taxes	(2.7		)			0.7					(36.7		)			6.0
(Loss) income from continuing operations	(0.7		)			6.7					101.0					41.2
Income (loss) from discontinued operations, net of income taxes	0.1					(0.2		)			(0.3		)			5.7
Net (loss) income	(0.6		)			6.5					100.7					46.9
Less: Net income attributable to noncontrolling interests	(0.1		)			(0.1		)			(0.5		)			(0.4		)
Net (loss) income attributable to GCP shareholders	$	(0.7	)			$	6.4				$	100.2				$	46.5
Amounts Attributable to GCP Shareholders:
(Loss) income from continuing operations attributable to GCP shareholders	(0.8		)			6.6					100.5					40.8
Income (loss) from discontinued operations, net of income taxes	0.1					(0.2		)			(0.3		)			5.7
Net (loss) income attributable to GCP shareholders	$	(0.7	)			$	6.4				$	100.2				$	46.5
(Loss) Earnings Per Share Attributable to GCP Shareholders:
Basic (loss) earnings per share:
(Loss) income from continuing operations attributable to GCP shareholders	$	(0.01	)			$	0.09				$	1.38				$	0.56
Income from discontinued operations, net of income taxes	$	—				$	—				$	—				$	0.08
Net (loss) income attributable to GCP shareholders(1)	$	(0.01	)			$	0.09				$	1.37				$	0.64
Weighted average number of basic shares	73.1					72.8					73.0					72.6
Diluted (loss) earnings per share: (2)
(Loss) income from continuing operations attributable to GCP shareholders	$	(0.01	)			$	0.09				$	1.37				$	0.56
Income from discontinued operations, net of income taxes	$	—				$	—				$	—				$	0.08
Net (loss) income attributable to GCP shareholders(1)	$	(0.01	)			$	0.09				$	1.37				$	0.64
Weighted average number of diluted shares	73.3					73.0					73.1					72.9

⁽¹⁾         Amounts may not sum due to rounding.

⁽²⁾         Dilutive effect only applicable to periods where there is net income from continuing operations.

GCP Applied Technologies Inc. Consolidated Balance Sheets (unaudited)
(In millions, except par value and shares)	December 31, 2020					December 31, 2019
ASSETS
Current Assets
Cash and cash equivalents	$	482.7				$	325.0
Trade accounts receivable, net of allowance for credit losses of $7.0 million and $7.5 million, respectively	169.4					183.7
Inventories, net	98.4					95.9
Other current assets	41.2					43.2
Total Current Assets	791.7					647.8
Properties and equipment, net	225.6					245.0
Operating lease right-of-use assets	40.0					29.3
Goodwill	215.0					208.9
Technology and other intangible assets, net	70.9					80.7
Deferred income taxes	9.6					26.1
Overfunded defined benefit pension plans	29.7					25.0
Other assets	35.1					38.0
Non-current assets held for sale	—					0.5
Total Assets	$	1,417.6				$	1,301.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Debt payable within one year	$	2.8				$	2.7
Operating lease obligations payable within one year	8.0					8.1
Accounts payable	87.8					88.4
Other current liabilities	125.8					112.9
Total Current Liabilities	224.4					212.1
Debt payable after one year	348.9					346.5
Operating lease obligations	26.2					21.6
Income taxes payable	28.4					41.4
Deferred income taxes	14.9					13.1
Unrecognized tax benefits	41.0					42.2
Underfunded and unfunded defined benefit pension plans	62.9					67.5
Other liabilities	16.8					15.9
Total Liabilities	763.5					760.3
Commitments and Contingencies
Stockholders’ Equity
Preferred Stock, par value $0.01; 50,000,000 shares authorized; no shares issued or outstanding	—					—
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 73,082,066 and 72,850,268, respectively	0.7					0.7
Paid-in capital	61.9					53.4
Accumulated earnings	710.3					610.1
Accumulated other comprehensive loss	(110.5		)			(117.0		)
Treasury stock	(10.7		)			(8.6		)
Total GCP Stockholders’ Equity	651.7					538.6
Noncontrolling interests	2.4					2.4
Total Stockholders’ Equity	654.1					541.0
Total Liabilities and Stockholders’ Equity	$	1,417.6				$	1,301.3

GCP Applied Technologies Inc. Consolidated Statements of Cash Flows (unaudited)
	Year Ended December 31,
(In millions)	2020					2019
OPERATING ACTIVITIES
Net income	$	100.7				$	46.9
Less: (Loss) income from discontinued operations	(0.3		)			5.7
Income from continuing operations	101.0					41.2
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	46.4					43.2
Amortization of debt discount and financing costs	1.5					1.4
Unrealized loss on foreign currency	5.1					0.1
Stock-based compensation expense	4.6					6.2
Gain on termination and curtailment of pension and other postretirement benefit plans	—					(1.2		)
Deferred income taxes	1.3					(18.7		)
Gain on disposal of property and equipment	(110.0		)			(0.7		)
Changes in assets and liabilities, excluding effect of currency translation:
Trade accounts receivable	17.0					13.1
Inventories	(1.5		)			13.9
Accounts payable	(2.3		)			(26.8		)
Pension assets and liabilities, net	(9.1		)			18.9
Other assets and liabilities, net	19.3					(12.9		)
Net cash provided by operating activities from continuing operations	73.3					77.7
Net cash used in operating activities from discontinued operations	(2.7		)			(13.7		)
Net cash provided by operating activities	70.6					64.0
INVESTING ACTIVITIES
Capital expenditures	(36.0		)			(61.3		)
Proceeds from sale of corporate headquarters, net of transaction costs	122.5					—
Other investing activities	0.6					0.5
Net cash provided by (used in) investing activities from continuing operations	87.1					(60.8		)
Net cash used in investing activities from discontinued operations	—					(0.4		)
Net cash provided by (used in) investing activities	87.1					(61.2		)
FINANCING ACTIVITIES
Borrowings under credit arrangements	2.2					—
Repayments under credit arrangements	(1.9		)			(7.6		)
Payments of tax withholding obligations related to employee equity awards	(1.7		)			(3.8		)
Proceeds from exercise of stock options	1.1					7.6
Noncontrolling interest dividend	(0.5		)			—
Other financing activities	(0.4		)			(0.4		)
Payments on finance lease obligations	(0.8		)			(0.8		)
Net cash used in financing activities from continuing operations	(2.0		)			(5.0		)
Effect of currency exchange rate changes on cash and cash equivalents	2.0					1.1
Increase (decrease) in cash and cash equivalents	157.7					(1.1		)
Cash and cash equivalents, beginning of period	325.0					326.1
Cash and cash equivalents, end of period	$	482.7				$	325.0
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds	$	35.4				$	12.7
Cash paid for interest on note and credit arrangements	$	19.5				$	19.9
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment purchases unpaid and included in accounts payable	$	5.9				$	5.7

Analysis of Operations

The Company has set forth in the tables below GCP’s key operating statistics with percentage changes for the three months and years ended December 31, 2020 and 2019.

Segment operating margin is defined as segment operating income divided by segment net sales. It represents an operating performance measure related to ongoing earnings and trends in GCP operating segments that are engaged in revenue generation and other core business activities. The Company uses this metric to allocate resources between the segments and assess its strategic and operating decisions related to core operations of its business.

In the table, the Company presents financial information in accordance with U.S. GAAP, as well as certain non-GAAP financial measures, which it describes below in further detail. GCP believes that the non-GAAP financial information supplements its discussions about the performance of its businesses, improves period-to-period comparability, and provides insight to the information that management uses to evaluate the performance of its businesses. Management uses non-GAAP measures in financial and operational decision-making processes, for internal reporting, and as part of its forecasting and budgeting processes since these measures provide additional transparency to the GCP’s core operations.

In the table, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. These non-GAAP financial measures should not be considered substitutes for financial measures calculated in accordance with U.S. GAAP, and the financial results that the Company calculates and presents in the table in accordance with U.S. GAAP, as well as the corresponding reconciliations from those results, should be carefully evaluated.

The following are the non-GAAP financial measures presented in the table:

• Net Sales Constant Currency (a non-GAAP financial measure)- is defined as current period revenue in local currency translated using prior period exchange rates. GCP uses constant currency in assessing trends in sales excluding the impact of fluctuations in foreign currency exchange rates.
• Net Sales Constant Currency Excluding Market Exits (a non-GAAP financial measure)- is defined as Net Sales Constant Currency less the impact on net sales resulting from the exit of non-profitable geographic markets associated with the 2018 Restructuring Plan.
• Adjusted EBIT (a non-GAAP financial measure)- is defined as net income (loss) from continuing operations attributable to GCP shareholders adjusted for: (i) gains and losses on sales of businesses, product lines and certain other investments; (ii) currency and other financial losses in Venezuela; (iii) costs related to legacy product, environmental and other claims; (iv) restructuring and repositioning expenses, and asset write offs; (v) defined benefit plan costs other than service and interest costs, expected returns on plan assets and amortization of prior service costs/credits; (vi) third-party and other acquisition-related costs; (vii) other financing costs associated with the modification or extinguishment of debt; (viii) amortization of acquired inventory fair value adjustments; (ix) tax indemnification adjustments; (x) interest income, interest expense and related financing costs; (xi) income taxes; (xii) shareholder activism and other related costs; and (xiii) gain on sale of corporate headquarters, net of related costs; and (xiv) certain other items that are not representative of underlying trends. Adjusted EBIT Margin is defined as Adjusted EBIT divided by net sales. GCP uses Adjusted EBIT to assess and measure its operating performance and determine performance-based employee compensation. The Company uses Adjusted EBIT as a performance measure because it provides improved quarter-to-quarter and year-over-year comparability for decision-making and compensation purposes and allows management to measure the ongoing earnings results of its strategic and operating decisions.
• Adjusted EBITDA (a non-GAAP financial measure)- is defined as Adjusted EBIT adjusted for depreciation and amortization. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. GCP uses Adjusted EBITDA as a performance measure in making significant business decisions.
• Adjusted Earnings Per Share (a non-GAAP financial measure)- is defined as earnings per share (“EPS”) from continuing operations on a diluted basis adjusted for: (i) gains and losses on sales of businesses, product lines and certain other investments; (ii) currency and other financial losses in Venezuela; (iii) costs related to legacy product, environmental and other claims; (iv) restructuring and repositioning expenses and asset write offs; (v) defined benefit plan costs other than service and interest costs, expected returns on plan assets and amortization of prior service costs/credits; (vi) third-party and other acquisition-related costs; (vii) other financing costs associated with the modification or extinguishment of debt; (viii) amortization of acquired inventory fair value adjustments; (ix) tax indemnification adjustments; (x) shareholder activism and other related costs; (xi) certain discrete tax items; (xii) gain on sale of corporate headquarters, net of related costs; and (xiii) certain other items that are not representative of underlying trends. GCP uses Adjusted EPS as a performance measure to review its diluted earnings per share results on a consistent basis and in determining certain performance-based employee compensation.
• Adjusted Gross Profit (a non-GAAP financial measure)- is defined as gross profit adjusted for: (i) corporate and pension-related costs included in cost of goods sold; (ii) loss in Venezuela included in cost of goods sold; (iii) amortization of acquired inventory fair value adjustment; and (iv) certain other items that are not representative of underlying trends. Adjusted Gross Margin means Adjusted Gross Profit divided by net sales. GCP uses this performance measure to understand trends and changes and to make business decisions regarding core operations.
• Adjusted Free Cash Flow (a non-GAAP financial measure)- is defined as net cash provided by or used in operating activities minus capital expenditures plus: (i) cash paid for restructuring and repositioning, third party and other acquisition-related costs, costs related to legacy product, environmental and other claims, as well as certain other items that are not representative of underlying trends, net of related cash taxes; (ii) capital expenditures related to repositioning; and (iii) accelerated payments under defined benefit pension arrangements. GCP uses Adjusted Free Cash Flow as a liquidity measure to evaluate its ability to generate cash to support its ongoing business operations, to invest in its businesses, to provide a return of capital to shareholders and to determine payments of performance-based compensation.

Beginning with the first quarter of 2021 and going forward, GCP will no longer be presenting Net Sales Constant Currency Excluding Market Exits since management will no longer be relying on this measure when evaluating the Company’s financial performance and operating results. GCP does not believe the presentation of Net Sales Constant Currency Excluding Market Exits enhances the investors’ understanding of its financial performance and results of operations.        

Adjusted EBIT, Adjusted EBIT Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Gross Profit and Adjusted Gross Margin do not purport to represent income measures as defined in accordance with U.S. GAAP. These measures are provided to investors and others to improve the quarter-to-quarter, year-to-year, and peer-to-peer comparability of the Company’s financial results and to ensure that investors understand the information it uses to evaluate the performance of its businesses.

Adjusted EBIT has material limitations as an operating performance measure because it excludes costs related to income and expenses from restructuring and repositioning activities which historically have been a material component of the Company’s net income (loss) from continuing operations attributable to GCP shareholders. Adjusted EBITDA also has material limitations as an operating performance measure because it excludes the impact of depreciation and amortization expense. The Company’s business is substantially dependent on the successful deployment of capital, and depreciation and amortization expense is a necessary element of the Company costs. GCP compensates for the limitations of these measurements by using these indicators together with net income (loss) measured in accordance with GAAP to present a complete analysis of its results of operations. Adjusted EBIT and Adjusted EBITDA should be evaluated together with net income (loss) from continuing operations attributable to GCP shareholders measured in accordance with GAAP for a complete understanding of its results of operations.

The Company does not provide GAAP financial information on a forward-looking basis because the Company is unable to estimate with reasonable certainty unusual or unanticipated charges, expenses or gains without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with U.S. GAAP.

GCP Applied Technologies Inc.

Analysis of Operations (unaudited)

	Three Months Ended December 31,														Year Ended December 31,
Analysis of Operations (In millions, except per share amounts)	2020					2019					% Change				2020					2019					% Change
Net sales:
Specialty Construction Chemicals	$	139.3				$	145.2				(4.1	)	%		$	518.9				$	579.1				(10.4	)	%
Specialty Building Materials	103.4					113.1					(8.6	)	%		384.3					434.4					(11.5	)	%
Total GCP net sales	$	242.7				$	258.3				(6.0	)	%		$	903.2				$	1,013.5				(10.9	)	%
Net sales by region:
North America	$	129.8				$	144.2				(10.0	)	%		$	502.5				$	537.4				(6.5	)	%
Europe Middle East Africa (EMEA)	46.3					44.1					5.0		%		172.6					193.5					(10.8	)	%
Asia Pacific	53.4					56.1					(4.8	)	%		180.8					222.5					(18.7	)	%
Latin America	13.2					13.9					(5.0	)	%		47.3					60.1					(21.3	)	%
Total net sales by region	$	242.7				$	258.3				(6.0	)	%		$	903.2				$	1,013.5				(10.9	)	%
Net Sales, Constant Currency:
Specialty Construction Chemicals	$	139.9				$	145.2				(3.7	)	%		$	527.5				$	579.1				(8.9	)	%
Specialty Building Materials	102.3					113.1					(9.5	)	%		384.0					434.4					(11.6	)	%
Total GCP Net Sales, Constant Currency (non-GAAP)	$	242.2				$	258.3				(6.2	)	%		$	911.5				$	1,013.5				(10.1	)	%
Impact of Market Exits:
Specialty Construction Chemicals	$	—				$	3.0				(100.0	)	%		$	—				$	11.8				(100.0	)	%
Total Impact of Market Exits	$	—				$	3.0				(100.0	)	%		$	—				$	11.8				(100.0	)	%
Net Sales Constant Currency Excluding Market Exits:
Specialty Construction Chemicals	$	139.9				$	142.2				(1.6	)	%		$	527.5				$	567.3				(7.0	)	%
Specialty Building Materials	102.3					113.1					(9.5	)	%		384.0					434.4					(11.6	)	%
Total GCP Net Sales Constant Currency Excluding Market Exits (non-GAAP)	$	242.2				$	255.3				(5.1	)	%		$	911.5				$	1,001.7				(9.0	)	%
Adjusted EBIT(A):
Specialty Construction Chemicals segment operating income	$	15.1				$	15.5				(2.6	)	%		$	52.9				$	56.9				(7.0	)	%
Specialty Building Materials segment operating income	19.7					22.0					(10.5	)	%		71.1					86.3					(17.6	)	%
Corporate costs(B)	(6.3		)			(4.3		)			46.5		%		(26.2		)			(32.8		)			(20.1	)	%
Certain pension costs(C)	(1.3		)			(1.9		)			(31.6	)	%		(5.2		)			(7.8		)			(33.3	)	%
Adjusted EBIT (non-GAAP)	$	27.2				$	31.3				(13.1	)	%		$	92.6				$	102.6				(9.7	)	%
Gain on sale of corporate headquarters	—					—					—		%		110.2					—					100.0		%
Shareholder activism and other related costs (D)	—					(1.6		)			100.0		%		(9.5		)			(5.3		)			79.2		%
Gain on Brazil tax recoveries, net (E)	—					(0.3		)			100.0		%		—					0.6					(100.0	)	%
Repositioning expenses	(1.6		)			(4.8		)			(66.7	)	%		(5.4		)			(20.4		)			(73.5	)	%
Restructuring expenses and asset write offs	(13.7		)			(1.1		)			NM				(24.9		)			(9.9		)			NM
Pension MTM adjustment and other related costs, net	(2.8		)			(13.3		)			(78.9	)	%		(2.8		)			(13.3		)			(78.9	)	%
Gain on termination and curtailment of pension and other postretirement plans	—					1.2					(100.0	)	%		—					1.2					(100.0	)	%
Legacy product, environmental and other claims	(0.6		)			—					(100.0	)	%		(0.6		)			(0.1		)			NM
Third-party and other acquisition-related costs	—					—					—		%		(0.7		)			(0.1		)			NM
Tax indemnification adjustments	(1.6		)			(0.5		)			NM				(1.6		)			(0.5		)			NM
Interest expense, net	(5.0		)			(5.0		)			—				(20.1		)			(20.0		)			0.5		%
Income tax (expense) benefit	(2.7		)			0.7					NM				(36.7		)			6.0					NM
Net (loss) income from continuing operations attributable to GCP shareholders (GAAP)	$	(0.8	)			$	6.6				NM				$	100.5				$	40.8				NM
(Loss) income from continuing operations attributable to GCP shareholders as a percentage of net sales	(0.3		)	%		2.6			%		(2.9) pts				11.1			%		4.0			%		7.1 pts
Diluted EPS from continuing operations (GAAP)	$	(0.01	)			$	0.09				NM				$	1.37				$	0.56				NM
Adjusted EPS (non-GAAP)	$	0.22				$	0.29				(24.1	)	%		$	0.73				$	0.82				(11.0	)	%

GCP Applied Technologies Inc.

Analysis of Operations (unaudited) (continued)

	Three months ended December 31,														Year Ended December 31,
Analysis of Operations (In millions)	2020					2019					% Change				2020					2019					% Change
Adjusted profitability performance measures:
Gross Profit:
Specialty Construction Chemicals	$	54.2				$	53.9				0.6		%		$	202.8				$	208.3				(2.6	)	%
Specialty Building Materials	41.9					44.5					(5.8	)	%		156.6					177.0					(11.5	)	%
Adjusted Gross Profit (non-GAAP)	$	96.1				$	98.4				(2.3	)	%		$	359.4				$	385.3				(6.7	)	%
Corporate costs and pension costs in cost of goods sold (C)	(0.2		)			(0.3		)			(33.3	)	%		(1.5		)			(1.6		)			(6.3	)	%
Total GCP Gross Profit (GAAP)	$	95.9				$	98.1				(2.2	)	%		$	357.9				$	383.7				(6.7	)	%
Gross Margin:
Specialty Construction Chemicals	38.9			%		37.1			%		1.8 pts				39.1			%		36.0			%		3.1 pts
Specialty Building Materials	40.5			%		39.3			%		1.2 pts				40.7			%		40.7			%		— pts
Adjusted Gross Margin (non-GAAP)	39.6			%		38.1			%		1.5 pts				39.8			%		38.0			%		1.8 pts
Corporate costs and pension costs in cost of goods sold	(0.1		)	%		(0.1		)	%		— pts				(0.2		)	%		(0.2		)	%		— pts
Total GCP Gross Margin (GAAP)	39.5			%		38.0			%		1.5 pts				39.6			%		37.9			%		1.7 pts
Adjusted EBIT(A)(B)(C):
Specialty Construction Chemicals segment operating income	$	15.1				$	15.5				(2.6	)	%		$	52.9				$	56.9				(7.0	)	%
Specialty Building Materials segment operating income	19.7					22.0					(10.5	)	%		71.1					86.3					(17.6	)	%
Corporate and certain pension costs	(7.6		)			(6.2		)			22.6		%		(31.4		)			(40.6		)			(22.7	)	%
Total GCP Adjusted EBIT (non-GAAP)	$	27.2				$	31.3				(13.1	)	%		$	92.6				$	102.6				(9.7	)	%
Depreciation and amortization:
Specialty Construction Chemicals	$	7.4				$	6.9				7.2		%		$	27.6				$	24.4				13.1		%
Specialty Building Materials	3.9					3.6					8.3		%		14.9					14.8					0.7		%
Corporate	0.5					1.1					(54.5	)	%		3.9					4.0					(2.5	)	%
Total GCP depreciation and amortization	$	11.8				$	11.6				1.7		%		$	46.4				$	43.2				7.4		%
Adjusted EBITDA:
Specialty Construction Chemicals	$	22.5				$	22.4				0.4		%		$	80.5				$	81.3				(1.0	)	%
Specialty Building Materials	23.6					25.6					(7.8	)	%		86.0					101.1					(14.9	)	%
Corporate and certain pension costs	(7.1		)			(5.1		)			39.2		%		(27.5		)			(36.6		)			(24.9	)	%
Total GCP Adjusted EBITDA (non-GAAP)	$	39.0				$	42.9				(9.1	)	%		$	139.0				$	145.8				(4.7	)	%
Adjusted EBIT Margin:
Specialty Construction Chemicals	10.8			%		10.7			%		0.1 pts				10.2			%		9.8			%		0.4 pts
Specialty Building Materials	19.1			%		19.5			%		(0.4) pts				18.5			%		19.9			%		(1.4) pts
Total GCP Adjusted EBIT Margin (non-GAAP)	11.2			%		12.1			%		(0.9) pts				10.3			%		10.1			%		0.2 pts
Adjusted EBITDA Margin:
Specialty Construction Chemicals	16.2			%		15.4			%		0.8 pts				15.5			%		14.0			%		1.5 pts
Specialty Building Materials	22.8			%		22.6			%		0.2 pts				22.4			%		23.3			%		(0.9) pts
Total GCP Adjusted EBITDA Margin (non-GAAP)	16.1			%		16.6			%		(0.5) pts				15.4			%		14.4			%		1.0 pts

(A)      Our segment operating income includes only our share of income of consolidated joint ventures.

(B)      Management allocates certain corporate costs to each operating segment to the extent such costs are directly attributable to the segments.

(C)      Certain pension costs include only ongoing costs, recognized quarterly, which include service and interest costs, expected returns on plan assets and amortization of prior service costs/credits. “Corporate costs and pension costs in cost of goods sold” represent service costs related to our manufacturing employees. SCC and SBM segment operating income and corporate costs do not include any amounts for pension expense. Other pension-related costs, including annual mark-to-market adjustments, gains or losses from curtailments and terminations, as well as other related costs, are excluded from Adjusted EBIT. These amounts are not used by management to evaluate the performance of our businesses and significantly affect the peer-to-peer and period-to-period comparability of our financial results. Mark-to-market adjustments and other related costs are primarily attributable to changes in financial market values and actuarial assumptions and are not directly related to the operation of our businesses

(D)      Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by one of our shareholders seeking changes in the composition of our Board of Directors and nomination of candidates to stand for election at the 2019 and 2020 Annual Shareholders’ Meetings, as well as other related matters.

(E)      Gain on Brazil tax recoveries, net primarily consists of a $1.7 million pre-tax gain related to indirect tax recoveries, and $1.1 million of legal fees and other charges relating to indirect and income tax recoveries.

^NM    Not meaningful.

GCP Applied Technologies Inc.

Analysis of Operations (unaudited) (continued)

(In millions)	Year Ended December 31,
	2020					2019
Cash flow measure:
Net cash provided by operating activities from continuing operations	$	73.3				$	77.7
Capital expenditures	(36.0		)			(61.3		)
Free Cash Flow (non-GAAP)	37.3					16.4
Cash paid for repositioning	10.3					21.2
Cash paid for restructuring	4.8					11.3
Cash paid for third-party and other acquisition-related costs	0.7					0.5
Cash paid for shareholder activism and other related costs(1)	11.1					3.7
Capital expenditures related to repositioning	4.1					6.0
Cash taxes related to gain on sale of corporate headquarters	14.6					—
Cash taxes related to repositioning, restructuring, third-party and other acquisition-related costs, shareholder activism and other related costs	(6.6		)			(9.1		)
Adjusted Free Cash Flow (non-GAAP)	$	76.3				$	50.0

(1)      Shareholder activism and other related costs consist primarily of professional fees incurred in connection with the actions by certain of our shareholders seeking changes in the composition of our Board of Directors and nomination of candidates to stand for election at the 2019 and 2020 Annual Shareholders’ Meetings, as well as other related matters.

GCP Applied Technologies Inc. Adjusted Earnings Per Share (unaudited)
	Three Months Ended December 31,
	2020																		2019
(In millions, except per share amounts)	Pre- Tax				Tax Effect					After- Tax				Per Share					Pre- Tax					Tax Effect					After- Tax					Per Share
Diluted EPS from continuing operations (GAAP)														$	(0.01	)																		$	0.09
Legacy product, environmental and other claims	$	0.6			$	0.2				$	0.4			0.01					$	—				$	—				$	—				—
Repositioning expenses	1.6				0.4					1.2				0.02					4.8					1.2					3.6					0.05
Restructuring expenses	13.7				3.5					10.2				0.14					1.1					0.1					1.0					0.01
Pension MTM adjustment and other related costs, net	2.8				0.8					2.0				0.03					13.3					3.5					9.8					0.13
Gain on termination and curtailment of pension and other postretirement plans	—				—					—				—					(1.2		)			(0.3		)			(0.9		)			(0.01		)
Gain on Brazil tax recoveries, net	—				—					—				—					0.3					0.1					0.2					—
Shareholder activism and other related costs	—				—					—				—					1.6					0.4					1.2					0.02
Tax indemnification adjustments	1.6				—					1.6				0.02					0.5					—					0.5					0.01
Discrete tax and other items, including adjustments to uncertain tax positions	—				(0.7		)			0.7				0.01					—					1.0					(1.0		)			(0.01		)
Adjusted EPS (non-GAAP)														$	0.22																			$	0.29

GCP Applied Technologies Inc. Adjusted Earnings Per Share (unaudited)
	Year Ended December 31,
	2020																				2019
(In millions, except per share amounts)	Pre-Tax					Tax Effect					After-Tax					Per Share					Pre- Tax					Tax Effect					After- Tax					Per Share
Diluted EPS from continuing operations (GAAP)																$	1.37																			$	0.56
Legacy product, environmental and other claims	$	0.6				$	0.2				$	0.4				0.01					$	0.1				$	—				$	0.1				—
Repositioning expenses	5.4					1.3					4.1					0.06					20.4					5.1					15.3					0.21
Gain on termination and curtailment of pension and other postretirement plans	—					—					—					—					(1.2		)			(0.3		)			(0.9		)			(0.01		)
Restructuring expenses	24.9					6.3					18.6					0.25					9.9					1.1					8.8					0.12
Pension MTM adjustment and other related costs, net	2.8					0.9					1.9					0.03					13.3					3.5					9.8					0.13
Third-party and other acquisition-related costs	0.7					0.2					0.5					0.01					0.1					—					0.1					—
Shareholder activism and other related costs	9.5					2.4					7.1					0.10					5.3					1.3					4.0					0.05
Gain on sale of corporate headquarters	(110.2		)			(28.0		)			(82.2		)			(1.12		)			—					—					—					—
Tax indemnification adjustments	1.6					—					1.6					0.02					0.5					—					0.5					0.01
Gain on Brazil tax recoveries, net	—					—					—					—					(0.6		)			(0.2		)			(0.4		)			—
Discrete tax and other items, including adjustments to uncertain tax positions(1)	—					(0.3		)			0.3					—					—					18.2					(18.2		)			(0.25		)
Adjusted EPS (non-GAAP)																$	0.73																			$	0.82

(1)      Discrete tax items consist primarily of tax benefits of $20.2 million in 2019 due to the release of uncertain tax benefit liabilities related to the 2017 Tax Act.