Market Newsdesk

BROOKINGS, S.D., March 03, 2021 (GLOBE NEWSWIRE) — Daktronics, Inc. (NASDAQ – DAKT) today reported fiscal 2021 third quarter results. Daktronics reported fiscal 2021 third quarter net sales of $94.1 million, operating loss of $0.2 million, net loss of $0.2 million, and earnings per diluted share of $0.00. This compares to net sales of $127.7 million, operating loss of $9.2 million, net loss of $12.7 million, and $0.28 per diluted share, for the third quarter of fiscal 2020. Fiscal 2021 third quarter orders were $86.9 million, compared to $135.0 million for the third quarter of fiscal 2020. Product order backlog at the end of the fiscal 2021 third quarter was $195 million, compared to $187 million a year earlier and $201 million at the end of the second quarter of fiscal 2021.₍₁₎

For the nine months ended January 30, 2021, net sales were $365.2 million, operating income was $16.0 million, net income was $10.7 million, and earnings per diluted share was $0.24 per diluted share. This compares to net sales of $482.8 million, operating income of $3.3 million, net income of $1.6 million, and $0.03 per diluted share for the same period in fiscal 2020.

Fiscal 2021 is a 52-week year and fiscal 2020 was a 53-week year; therefore, the nine months ended January 30, 2021 contains operating results for 39 weeks while the nine months ended February 1, 2020 contained operating results for 40 weeks. Sales, orders, and other results of operations were impacted due to the additional week of operations.

Cash generated by operating activities in the first nine months of fiscal 2021 was $48.2 million, compared to cash generated of $6.2 million in the first nine months of fiscal 2020. Cash generated by operating activities is primarily derived from cash received from customers, offset by cash payments for inventories, subcontractors, employee related costs, and operating expense outflows. Year-to-date cash provided from operations differed as compared to last year primarily due to a focus on customer collections, decreasing inventory levels, lowering personnel and operating expense outflows as we manage operations through the uncertain COVID times. Cash generation and use can vary based on order timing and levels, varying contractual payment terms from customers, and payments for inventory to meet delivery and installation schedules. Free cash flow, defined as cash provided by or used in operating activities less net investment in property and equipment, was a positive $41.8 million for the first nine months of fiscal 2021, as compared to a negative $7.2 million for the same period of fiscal 2020. Net investment in property and equipment was $6.5 million for the first nine months of fiscal 2021, as compared to $13.4 million for the first nine months of fiscal 2020. Cash, restricted cash, and marketable securities at the end of the third quarter of fiscal 2021 were $81.0 million, which compares to $42.1 million at the end of the third quarter of fiscal 2020 and $41.6 million at the end of fiscal 2020. Borrowings on the line of credit were $15.0 million at the end of the third quarter of fiscal 2021 up from $0 at the end of the third quarter of fiscal 2020 and consistent with the $15.0 million at the end of fiscal 2020.

Orders for the third quarter of fiscal 2021 decreased 35.6 percent as compared to the third quarter of fiscal 2020. Orders for the nine months ended January 30, 2021 decreased 27.2 percent as compared to the same period one year ago. Each business unit’s order volume was lower in fiscal 2021 due to lower market activity from the resulting economic and business impacts of the COVID-19 pandemic and related timing of large contract orders.

Net sales decreased by 26.3 percent in the third quarter of fiscal 2021 as compared to the third quarter of fiscal 2020. Net sales for the nine months ended January 30, 2021 decreased 24.4 percent as compared to the same period one year ago. Net sales decreased in all business units for the same reasons causing order booking declines and due to varied timing in the related conversion to sales based on customer project schedules.

Gross profit as a percentage of net sales was 25.4 percent for the third quarter of fiscal 2021 as compared to 19.2 percent a year earlier. The improved gross profit rate in the third quarter of fiscal 2021 is a result of the mix of service agreement and product sales and a $2.1 million litigation claim reversal. In comparison, during the third quarter of fiscal 2020, we experienced adverse impacts of a project with cost overruns and tariff related expenses.

Operating expenses for the third quarter of fiscal 2021 were $24.2 million, compared to $33.6 million for the third quarter of fiscal 2020, or a decrease of 28.0 percent. This decline is attributed to our focus on managing our expenses to expected order volumes. Declines in overall operating expenses were attributed to lower personnel related costs, reduced third-party contractor use, lower travel and entertainment activities, and lowered marketing and convention events offset by an increase in bad debt expense. Operating loss as a percent of sales for the quarter was 0.3 percent as compared to an operating loss as a percent of sales of 7.2 percent during the third quarter of fiscal 2020.

The effective tax rate expense for the third quarter of fiscal 2021 was 82.0 percent compared to an effective tax rate benefit of 37.9 percent for the third quarter of fiscal 2020. Our fiscal 2021 year-to-date effective rate expense was 21.3 percent compared to fiscal 2020 year-to-date effective rate expense of 51.6 percent. The change in the effective tax rate year-over-year was driven primarily by a decrease in tax credits and other permanent differences as a percentage of estimated current fiscal year pre-tax income.

Reece Kurtenbach, chairman, president and chief executive officer, stated, “Our third quarter orders, sales and profit levels are traditionally lighter than other quarters due to the seasonality of our sports business, construction cycles, and the reduced number of production dates due to holidays during the quarter. This year, our results have also been impacted by the pandemic. We continue to monitor the pandemic’s impact on the markets we serve. Areas of our business that were impacted the most are those that serve customers in large gathering spaces which includes our sports and entertainment, mass transit, and airport markets. Our Out-of-Home advertising customers were impacted due to a reduction in national advertising spend and have chosen to delay orders. Customers using on-premise applications are less impacted and are continuing to utilize audio visual systems to inform and persuade their audiences during this time. We continue to strategically make choices on levels of capacity and investments in capital assets and development initiatives. We also continued the suspension of dividend and share repurchases to help us maintain stability in liquidity and our cash position.”

_{(1) Backlog is not a measure defined by U.S. generally accepted accounting principles (“GAAP”), and our methodology for determining backlog may vary from the methodology used by other companies in determining their backlog amounts. For more information related to backlog, see Part I, Item 1. Business of our Annual Report on Form 10-K for the fiscal year ended May 2, 2020.} 

Outlook
Kurtenbach added, “Our backlog going into the fourth quarter is strong and we believe the audiovisual industry fundamentals will drive long-term growth for our business. However, the near-term outlook shows areas of contraction and greater volatility. We are focused on promoting our value to new and core markets, while managing our cost structure to meet the uncertain demand. With the COVID-19 vaccine distribution underway, we remain focused on emerging as a stronger organization and to be positioned to capitalize on the recovery from this pandemic.”

About Daktronics
Daktronics has strong leadership positions in, and is the world’s largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the company’s website at: www.daktronics.com, email the company at [email protected], call (605) 692-0200 or toll-free (800) 843-5843 in the United States, or write to the company at 201 Daktronics Dr., P.O. Box 5128, Brookings, S.D. 57006-5128.

Safe Harbor Statement

Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company’s expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation and other risks described in the company’s SEC filings, including its Annual Report on Form 10-K for its 2020 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

For more information contact:

INVESTOR RELATIONS:

Sheila M. Anderson, Chief Financial Officer

Tel (605) 692-0200

[email protected]

Daktronics, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share amounts)
(unaudited)

		Three Months Ended								Nine Months Ended
		January 30,				February 1,				January 30,				February 1,
		2021				2020				2021				2020
Net sales		$	94,139			$	127,657			$	365,150			$	482,824
Cost of sales			70,198				103,175				272,134				372,750
Gross profit			23,941				24,482				93,016				110,074
Operating expenses:
Selling			12,004				16,552				36,214				51,026
General and administrative			6,389				8,640				20,777				26,698
Product design and development			5,784				8,442				20,053				29,063
			24,177				33,634				77,044				106,787
Operating (loss) income			(236	)			(9,152	)			15,972				3,287
Nonoperating (expense) income:
Interest income			52				233				203				664
Interest expense			(92	)			13				(249	)			(53	)
Other (expense) income, net			(913	)			(331	)			(2,377	)			(652	)
(Loss) income before income taxes			(1,189	)			(9,237	)			13,549				3,246
Income tax expense (benefit)			(975	)			3,497				2,880				1,676
Net (loss) income		$	(214	)		$	(12,734	)		$	10,669			$	1,570
Weighted average shares outstanding:
Basic			45,064				45,189				44,908				45,139
Diluted			45,064				45,189				45,061				45,412
(Loss) earnings per share:
Basic		$	0.00			$	(0.28	)		$	0.24			$	0.03
Diluted		$	0.00			$	(0.28	)		$	0.24			$	0.03
Cash dividends declared per share		$	—			$	0.05			$	—			$	0.15

Daktronics, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands)

		January 30,				May 2,
		2021				2020
		(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	76,877			$	40,398
Restricted cash			3,884				14
Marketable securities			248				1,230
Accounts receivable, net			63,212				72,577
Inventories			72,312				86,803
Contract assets			30,310				35,467
Current maturities of long-term receivables			1,736				3,519
Prepaid expenses and other current assets			7,554				9,629
Income tax receivables			87				548
Property and equipment and other assets available for sale			2,020				1,817
Total current assets			258,240				252,002
Property and equipment, net			61,805				67,484
Long-term receivables, less current maturities			754				1,114
Goodwill			8,262				7,743
Intangibles, net			2,396				3,354
Investment in affiliates and other assets			23,608				27,683
Deferred income taxes			13,382				13,271
Total non-current assets			110,207				120,649
TOTAL ASSETS		$	368,447			$	372,651

Daktronics, Inc. and Subsidiaries

Consolidated Balance Sheets (continued)
(in thousands)

		January 30,				May 2,
		2021				2020
		(unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	32,692			$	47,834
Contract liabilities			53,292				50,897
Accrued expenses			26,664				36,626
Warranty obligations			10,766				9,764
Income taxes payable			2,079				844
Total current liabilities			125,493				145,965
Long-term warranty obligations			15,696				15,860
Long-term contract liabilities			10,587				10,707
Other long-term obligations			23,059				22,105
Long-term income taxes payable			554				582
Deferred income taxes			490				452
Total long-term liabilities			50,386				49,706
TOTAL LIABILITIES			175,879				195,671
SHAREHOLDERS’ EQUITY:
Common stock			60,575				60,010
Additional paid-in capital			46,091				44,627
Retained earnings			95,759				85,090
Treasury stock, at cost			(7,297	)			(7,470	)
Accumulated other comprehensive loss			(2,560	)			(5,277	)
TOTAL SHAREHOLDERS’ EQUITY			192,568				176,980
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	368,447			$	372,651

Daktronics, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)
(unaudited)

		Nine Months Ended
		January 30,				February 1,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	10,669			$	1,570
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			12,848				13,197
Gain on sale of property, equipment and other assets			(244	)			(6	)
Share-based compensation			1,563				1,734
Equity in loss of affiliates			1,740				430
Provision for doubtful accounts			1,551				(477	)
Deferred income taxes, net			(21	)			(223	)
Change in operating assets and liabilities			20,115				(10,035	)
Net cash provided by operating activities			48,221				6,190
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(6,935	)			(13,646	)
Proceeds from sales of property, equipment and other assets			470				244
Proceeds from sales or maturities of marketable securities			982				24,665
Purchases of and loans to equity investment			(1,328	)			(1,229	)
Net cash (used in) provided by investing activities			(6,811	)			10,034
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term obligations			(431	)			(2,140	)
Dividends paid			—				(6,756	)
Payments for common shares repurchased			—				(2,329	)
Tax payments related to RSU issuances			(125	)			(199	)
Net cash used in financing activities			(556	)			(11,424	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH			(505	)			(166	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			40,349				4,634
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period			40,412				35,742
End of period		$	80,761			$	40,376

Daktronics, Inc. and Subsidiaries

Net Sales and Orders by Business Unit

(in thousands)
(unaudited)

		Three Months Ended																Nine Months Ended
		January 30,				February 1,				Dollar				Percent				January 30,				February 1,				Dollar				Percent
		2021				2020				Change				Change				2021				2020				Change				Change
Net Sales:
Commercial		$	30,085			$	36,880			$	(6,795	)			(18.4	)%		$	94,947			$	120,566			$	(25,619	)			(21.2	)%
Live Events			23,330				40,571				(17,241	)			(42.5	)			112,626				159,196				(46,570	)			(29.3	)
High School Park and Recreation			14,644				14,775				(131	)			(0.9	)			71,165				75,433				(4,268	)			(5.7	)
Transportation			11,769				13,916				(2,147	)			(15.4	)			41,590				53,264				(11,674	)			(21.9	)
International			14,311				21,515				(7,204	)			(33.5	)			44,822				74,365				(29,543	)			(39.7	)
		$	94,139			$	127,657			$	(33,518	)			(26.3	)%		$	365,150			$	482,824			$	(117,674	)			(24.4	)%
Orders:
Commercial		$	34,806			$	36,898			$	(2,092	)			(5.7	)%		$	92,929			$	119,059			$	(26,130	)			(21.9	)%
Live Events			11,075				41,484				(30,409	)			(73.3	)			93,619				149,461				(55,842	)			(37.4	)
High School Park and Recreation			16,366				20,447				(4,081	)			(20.0	)			64,582				73,852				(9,270	)			(12.6	)
Transportation			12,991				16,203				(3,212	)			(19.8	)			37,713				55,410				(17,697	)			(31.9	)
International			11,650				19,992				(8,342	)			(41.7	)			55,864				75,827				(19,963	)			(26.3	)
		$	86,888			$	135,024			$	(48,136	)			(35.6	)%		$	344,707			$	473,609			$	(128,902	)			(27.2	)%

Reconciliation of Free Cash Flow
*

(in thousands)
(unaudited)

		Nine Months Ended
		January 30,				February 1,
		2021				2020
Net cash provided by operating activities		$	48,221			$	6,190
Purchases of property and equipment			(6,935	)			(13,646	)
Proceeds from sales of property and equipment			470				244
Free cash flow		$	41,756			$	(7,212	)

*In evaluating its business, Daktronics considers and uses free cash flow as a key measure of its operating performance. The term free cash flow is not defined under U.S. generally accepted accounting principles (“GAAP”) and is not a measure of operating income, cash flows from operating activities or other GAAP figures and should not be considered alternatives to those computations. Free cash flow is intended to provide information that may be useful for investors when assessing period to period results.

~ Submitted New Drug Application (NDA) for RECORLEV® (levoketoconazole) for the Treatment of Endogenous Cushing’s Syndrome to U.S. Food & Drug Administration ~

~ KEVEYIS® (dichlorphenamide) Full-Year 2020 Revenue of $30.7 Million, a 41.5 Percent Increase over 2019 Revenue of $21.7 Million ~

~ Full-Year 2021 KEVEYIS

^®

(dichlorphenamide) Revenue Guidance of $34 Million to
$36 Million ~

~ Company Reports $87.5 Million in Cash on Hand; Expects to Fund Operations Into and Potentially Beyond the First Quarter of 2023 ~

~ Strongbridge to Host Conference Call Today at 8:30 a.m. ET
~

DUBLIN, Ireland and TREVOSE, Pa., March 03, 2021 (GLOBE NEWSWIRE) — Strongbridge Biopharma plc, (Nasdaq: SBBP), a global commercial-stage biopharmaceutical company focused on the development and commercialization of therapies for rare diseases with significant unmet needs, today reported financial results for the fourth quarter and full year ended December 31, 2020. 

“With the successes of 2020 as a backdrop, we have begun 2021 with great momentum and optimism. Based upon the two positive and statistically significant Phase 3 SONICS and LOGICS studies, Strongbridge has submitted a New Drug Application to the U.S. Food and Drug Administration for RECORLEV® (levoketoconazole) for the treatment of endogenous Cushing’s syndrome,” said John H. Johnson, chief executive officer of Strongbridge Biopharma. “I am incredibly proud of our organization’s accomplishments over the last year and the team’s ability to execute against a number of strategic priorities that have set us up for long-term success. As we approach a number of transformational milestones in the year ahead, we remain focused on strengthening our organization through actively preparing for the potential approval and launch of RECORLEV, continued scientific exchange of results from the RECORLEV Phase 3 clinical program, and driving continued growth for KEVEYIS® (dichlorphenamide).”

Corporate & Financial Highlights

Rare Neuromuscular Franchise: KEVEYIS® (dichlorphenamide)

• Achieved KEVEYIS net product sales of $8.2 million for the fourth quarter ended, December 31, 2020, and $30.7 million for the full year ended December 31, 2020, exceeding its projected $28 million to $29 million guidance range, and representing a 41.5 percent increase over 2019 revenue of $21.7 million.
• Full-year 2021 revenue guidance of $34 million to $36 million for KEVEYIS.

Rare Endocrine Franchise: RECORLEV® (levoketoconazole)

• On March 2, 2021, the Company announced it submitted a New Drug Application (NDA) for RECORLEV to the U.S. Food and Drug Administration; if approved, and assuming a projected 10-month review cycle, the launch of RECORLEV is anticipated in the first quarter of 2022.
• With regard to the clinical development program and medical affairs activities:
  • In November, secondary endpoints results from the Phase 3 SONICS study of RECORLEV for the potential treatment of endogenous Cushing’s syndrome were published in the journal, Pituitary.
  • Interim safety and efficacy results, including new data analyses, from the Phase 3 LOGICS study have been accepted for poster presentation at the Endocrine Society’s (ENDO) 2021 annual meeting, taking place virtually from March 20-23, 2021.

Corporate and Financial Updates

• On February 16, 2021, the Company announced the promotion of Richard S. Kollender, who has served as chief operating officer of Strongbridge since September 2019, to president and chief financial officer. In this expanded role, Mr. Kollender will succeed Robert Lutz as chief financial officer and also maintain the responsibilities he held as chief operating officer. Mr. Kollender previously served on Strongbridge’s board of directors and also as chairman of the audit committee. These management changes are effective on March 3, 2021.
• Following completion in September 2020 of a $25 million equity raise and a recent year-end borrowing of an additional $10 million under the Company’s existing debt facility, Strongbridge reports approximately $87.5 million of cash and cash equivalents as of December 31, 2020.
• Assuming the availability and full draw-down of the remaining $10 million from its debt facility, the Company believes it can fund operations as currently planned into, and potentially beyond, the first quarter of 2023.

Fourth Quarter 2020 Financial Results
The Company’s net revenues from sales of KEVEYIS increased $2.6 million, or 47%, from $5.6 million for the three months ended December 31, 2019 to $8.2 million for the three months ended December 31, 2020. The Company recorded cost of sales of $0.4 million for the three months ended December 31, 2020, compared to cost of sales of $1.0 million for the same period in 2019. Cost of sales decreased due to changes in the assumptions underlying the allocation between the purchase price of our inventory and our supply agreement. Our gross margins were 95% for three months ended December 31, 2020, compared to gross margins of 82% for the same period in 2019.

Selling, general and administrative expenses were $11.6 million for the three months ended December 31, 2020, compared to $12.0 million for the same period in 2019. The decrease during the current period was due to reduced personnel costs from headcount reductions and T&E savings from the prior period, partially offset by an increase in 3^rd party expenses relating to our commercial activities.

Research and development expenses were $5.3 million for the three months ended December 31, 2020, compared to $8.0 million for the same period in 2019. The decrease was primarily due to reduced support activities and materials for our LOGICS trial, offset by a small increase in costs from our OPTICS trial in 2020.

For the three months ended December 31, 2020, basic net loss attributable to ordinary shareholders on a GAAP basis was ($11.9 million), or ($0.18) per share, compared to a basic net loss attributable to ordinary shareholders of ($9.0 million), or ($0.17) per share, for the same period in 2019. Net loss for the three months ended December 31, 2020 was higher than the same period in 2019 due to the prior period including income from the termination of a contract offset by an increase in net revenue in the current period. Additionally, there was a $2.3 million change in the revaluation of the fair value of our liability classified warrants recorded in 2020 compared to 2019 due to the increase in our stock price.

For the three months ended December 31, 2020, non-GAAP basic net loss attributable to ordinary shareholders was ($7.6 million), or ($0.11) per share, compared to a non-GAAP basic net loss attributable to ordinary shareholders of ($13.5 million), or ($0.25) per share, for the same period in 2019. The decrease in non-GAAP net loss during the three months ended December 31, 2020 due to the increase in KEVEYIS revenues and overall lower expenses.

Year-to-Date 2020 Financial Results
The Company’s net revenues from sales of KEVEYIS increased $9.0 million, or 41.5%, from $21.7 million for the twelve months ended December 31, 2019 to $30.7 million for the twelve months ended December 31, 2020. The Company recorded cost of sales of $2.2 million for the twelve months ended December 31, 2020, compared to cost of sales of $3.8 million for the same period in 2019. Cost of sales decreased due to changes in the assumptions underlying the allocation between the purchase price of our inventory and our supply agreement. Our gross margins were 93% for twelve months ended December 31, 2020, compared to gross margins of 82% for the same period in 2019.

Selling, general and administrative expenses were $40.9 million for the twelve months ended December 31, 2020, compared to $49.1 million for the same period in 2019. The decrease during the current period was due to reduced personnel costs from headcount reductions, reduced spending due to COVID-19, and lower third-party expenses.  Additionally, the prior period had $3.2 million in one-time charges for severance expense.

Research and development expenses were $25.8 million for the twelve months ended December 31, 2020, compared to $30.9 million for the same period in 2019. The spending reduction was primarily due to decreases in product development and supporting activities resulting from the completion of our SONICS trial in 2019 and higher costs related to our LOGICS trial in 2019, offset in part by an increase in costs from our OPTICS trial in 2020.

For the twelve months ended December 31, 2020, basic net loss attributable to ordinary shareholders on a GAAP basis was ($45.1 million), or ($0.78) per share, compared to a basic net loss attributable to ordinary shareholders of ($49.5) million, or ($0.91) per share, for the same period in 2019. Net loss for the twelve months ended December 31, 2020 was lower than the same period in 2019 due to the increase in KEVEYIS revenue of $9.0 million and the reduction in selling, general and administrative and research and development expenses during the twelve months ended December 31, 2020 compared to the same period in 2019. Those decreases were offset by a $12.2 million change in the revaluation of the fair value of our liability classified warrants due to the increase in our stock price and income from termination of a contract which was recorded in the prior period.

For the twelve months ended December 31, 2020, non-GAAP basic net loss attributable to ordinary shareholders was ($31.1 million), or ($0.54) per share, compared to a non-GAAP basic net loss attributable to ordinary shareholders of ($53.2 million), or ($0.98) per share, for the same period in 2019. The decrease in non-GAAP net loss during the twelve months ended December 31, 2020 was due to an increase in KEVEYIS revenue of $9.0 million and selling, general and administrative and research and development expenses decreasing during the twelve months ended December 31, 2020 compared to the same period in 2019.

STRONGBRIDGE BIOPHARMA plc
Select Consolidated Balance Sheet Information (unaudited)
(in thousands, except share and per share data)
		December 31				December 31,
		2020				2019
Consolidated Balance Sheet Data:
Cash and cash equivalents		$	87,522			$	57,032
Marketable securities			—				21,072
Total assets			121,100				117,638
Long-term debt, net			17,114				—
Total liabilities			55,495				45,447
Total shareholders’ equity			65,605				72,191

STRONGBRIDGE BIOPHARMA plc
Consolidated Statements of Operations and Comprehensive Loss (unaudited)
(in thousands, except share and per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2020				2019				2020				2019
Consolidated Statement of Operations Data:
Revenues:
Net product sales		$	8,202			$	5,593			$	30,670			$	21,676
Royalty revenue			24				13				61				36
Total revenues			8,226				5,606				30,731				21,712
Cost and expenses:
Cost of sales (excluding amortization of intangible asset)		$	442			$	986			$	2,212			$	3,822
Selling, general and administrative			11,605				11,970				40,867				49,058
Research and development			5,320				8,029				25,795				30,903
Amortization of intangible asset			1,256				1,256				5,022				5,022
Total cost and expenses			18,623				22,241				73,896				88,805
Operating loss			(10,397	)			(16,635	)			(43,165	)			(67,093	)
Other (expense) income, net:
Interest expense			(560	)			—				(1,336	)			—
Unrealized (loss) gain on fair value of warrants			(976	)			1,307				(814	)			11,386
Income from field services agreement			—				7,150				—				12,616
Expense from field services agreement			—				(993	)			—				(6,652	)
Other (expense) income, net			(28	)			191				225				2,060
Total other (expense) income, net			(1,564	)			7,655				(1,925	)			19,410
Loss before income taxes			(11,961	)			(8,980	)			(45,090	)			(47,683	)
Income tax benefit (expense)			15				—				15				(1,768	)
Net loss		$	(11,946	)		$	(8,980	)		$	(45,075	)		$	(49,451	)
Other comprehensive loss:
Unrealized gain (loss) on marketable securities			—				3				(3	)			3
Comprehensive loss		$	(11,946	)		$	(8,977	)		$	(45,078	)		$	(49,448	)
Net loss attributable to ordinary shareholders:
Basic		$	(11,946	)		$	(8,980	)		$	(45,075	)		$	(49,451	)
Diluted		$	(11,946	)		$	(8,980	)		$	(45,075	)		$	(60,837	)
Net loss per share attributable to ordinary shareholders:
Basic		$	(0.18	)		$	(0.17	)		$	(0.78	)		$	(0.91	)
Diluted		$	(0.18	)		$	(0.17	)		$	(0.78	)		$	(1.10	)
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders:
Basic			67,186,738				54,205,852				57,976,472				54,182,499
Diluted			67,186,738				54,205,852				57,976,472				55,383,030

STRONGBRIDGE BIOPHARMA plc
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands, except share and per share data)
			Three Months Ended December 31, 2020
			Operating loss				Loss before income taxes				Net loss attributable to ordinary shareholders				Net loss per share attributable to ordinary shareholders
GAAP		$	(10,397	)		$	(11,961	)		$	(11,946	)		$	(0.18	)
Non-GAAP Adjustments:
Amortization of intangible asset (a)		$	1,256			$	1,256			$	1,256
Stock-based compensation – Selling, General & Admin. (b)		$	1,318			$	1,318			$	1,318
Stock-based compensation – Research & Development (b)		$	469			$	469			$	469
Unrealized loss on fair value of warrants (c)			–			$	976			$	976
Non-cash interest expense (d)			–			$	308			$	308
Adjusted		$	(7,354	)		$	(7,634	)		$	(7,619	)		$	(0.11	)
			Three Months Ended December 31, 2019
			Operating loss				Loss before income taxes				Net loss attributable to ordinary shareholders				Net loss per share attributable to ordinary shareholders
GAAP		$	(16,635	)		$	(8,980	)		$	(8,980	)		$	(0.17	)
Non-GAAP Adjustments:
Amortization of intangible asset (a)		$	1,256			$	1,256			$	1,256
Stock-based compensation – Selling, General & Admin. (b)		$	1,076			$	1,076			$	1,076
Stock-based compensation – Research & Development (b)		$	450			$	450			$	450
Unrealized gain on fair value of warrants (c)			–			$	(1,307	)		$	(1,307	)
Gain on settlement of field services agreement (e)			–			$	(6,000	)		$	(6,000	)
Adjusted		$	(13,853	)		$	(13,505	)		$	(13,505	)		$	(0.25	)

(a)	The effects of amortization of the intangible asset are excluded because these charges are non-cash, and we believe such exclusion facilitates investors’ ability to more accurately compare our operating results to those of our peer companies.
(b)	The effects of non-cash employee stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions. We believe this is a useful measure for investors because such exclusion facilitates comparison to peer companies who also provide similar non-GAAP disclosures and is reflective of how management internally manages the business.
(c)	The unrealized gain or loss on fair value of warrants are excluded due to the nature of this charge, which is non-cash and related primarily to the effect of changes in the company’s stock price at a point in time. We believe such exclusion facilitates investors’ ability to more accurately compare our operating results to those of our peer companies.
(d)	The effects of non-cash interest charges are excluded. We believe such exclusion facilitates an understanding of the effects of the debt service obligations on the Company’s liquidity and comparisons to peer group companies and is reflective of how management internally manages the business.
(e)	The gain on settlement of field services agreement is excluded due to the non-recurring nature of this gain. We believe such exclusion facilitates investors’ ability to more accurately compare our operating results to those of our peer companies and is reflective of how management internally manages the business.

STRONGBRIDGE BIOPHARMA plc
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands, except share and per share data)
			Year Ended December 31, 2020
			Operating loss				Loss before income taxes				Net loss attributable to ordinary shareholders				Net loss per share attributable to ordinary shareholders
GAAP		$	(43,165	)		$	(45,090	)		$	(45,075	)		$	(0.78	)
Non-GAAP Adjustments:
Amortization of intangible asset (a)		$	5,022			$	5,022			$	5,022
Stock-based compensation – Selling, General & Admin. (b)		$	5,448			$	5,448			$	5,448
Stock-based compensation – Research & Development (b)		$	1,933			$	1,933			$	1,933
Unrealized loss on fair value of warrants (c)			–			$	814			$	814
Non-cash interest expense (d)			–			$	714			$	714
Adjusted		$	(30,762	)		$	(31,159	)		$	(31,144	)		$	(0.54	)
			Year Ended December 31, 2019
			Operating loss				Loss before income taxes				Net loss attributable to ordinary shareholders				Net loss per share attributable to ordinary shareholders
GAAP		$	(67,093	)		$	(47,683	)		$	(49,451	)		$	(0.91	)
Non-GAAP Adjustments:
Amortization of intangible asset (a)		$	5,022			$	5,022			$	5,022
Stock-based compensation – Selling, General & Admin. (b)		$	6,552			$	6,552			$	6,552
Stock-based compensation – Research & Development (b)		$	2,045			$	2,045			$	2,045
Unrealized gain on fair value of warrants (c)			–			$	(11,386	)		$	(11,386	)
Gain on settlement of field services agreement (e)			–			$	(6,000	)		$	(6,000	)
Adjusted		$	(53,474	)		$	(51,450	)		$	(53,218	)		$	(0.98	)

(a)	The effects of amortization of the intangible asset are excluded because these charges are non-cash, and we believe such exclusion facilitates investors’ ability to more accurately compare our operating results to those of our peer companies.
(b)	The effects of non-cash employee stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions. We believe this is a useful measure for investors because such exclusion facilitates comparison to peer companies who also provide similar non-GAAP disclosures and is reflective of how management internally manages the business.
(c)	The unrealized gain or loss on fair value of warrants are excluded due to the nature of this charge, which is non-cash and related primarily to the effect of changes in the company’s stock price at a point in time. We believe such exclusion facilitates investors’ ability to more accurately compare our operating results to those of our peer companies.
(d)	The effects of non-cash interest charges are excluded. We believe such exclusion facilitates an understanding of the effects of the debt service obligations on the Company’s liquidity and comparisons to peer group companies and is reflective of how management internally manages the business.
(e)	The gain on settlement of field services agreement is excluded due to the non-recurring nature of this gain. We believe such exclusion facilitates investors’ ability to more accurately compare our operating results to those of our peer companies and is reflective of how management internally manages the business.

 

Conference Call Details
Strongbridge will host a conference call on Wednesday, March 3, 2021 at 8:30 a.m. ET. To access the live call, dial (844) 285-7153 (domestic) or (478) 219-0180 (international) with conference ID 2452827. The conference call will also be webcast from the Company’s website at www.strongbridgebio.com under the “Investor/Webcasts and Presentations” section. A replay of the call will be made available for one week following the conference call. To hear a replay of the call, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) with conference ID 2452827.

About Strongbridge Biopharma
Strongbridge Biopharma is a global commercial-stage biopharmaceutical company focused on the development and commercialization of therapies for rare diseases with significant unmet needs. Strongbridge’s rare endocrine franchise includes RECORLEV® (levoketoconazole), a cortisol synthesis inhibitor currently being studied in Phase 3 clinical studies for the treatment of endogenous Cushing’s syndrome, and veldoreotide extended release, a preclinical next-generation somatostatin analog being investigated for the treatment of acromegaly and potential additional applications in other conditions amenable to somatostatin receptor activation. Both RECORLEV and veldoreotide have received orphan drug designation from the FDA and the European Medicines Agency. The Company’s rare neuromuscular franchise includes KEVEYIS® (dichlorphenamide), the first and only FDA-approved treatment for hyperkalemic, hypokalemic, and related variants of primary periodic paralysis. KEVEYIS has orphan drug exclusivity in the United States.

About KEVEYIS
KEVEYIS® (dichlorphenamide) is indicated for the treatment of primary hyperkalemic periodic paralysis, primary hypokalemic periodic paralysis, and related variants. In clinical studies, the most common side effects of KEVEYIS were a numbness or tingling, difficulty thinking and paying attention, changes in taste, and confusion. These are not all of the possible side effects that you may experience with KEVEYIS. Talk to your doctor if you have any symptoms that bother you or do not go away. You are encouraged to report side effects to Strongbridge Biopharma at 1-855-324-8912, or to the FDA at 1-800-FDA-1088 or visit www.fda.gov/medwatch. For additional KEVEYIS important safety information and the full prescribing information visit www.keveyis.com.

About RECORLEV
RECORLEV® (levoketoconazole) is an investigational cortisol synthesis inhibitor in development for the treatment of patients with endogenous Cushing’s syndrome, a rare but serious and potentially lethal endocrine disease caused by chronic elevated cortisol exposure. RECORLEV is the pure 2S,4R enantiomer of ketoconazole, a steroidogenesis inhibitor. RECORLEV has demonstrated in two successful Phase 3 studies to significantly suppress serum cortisol and has the potential to be a next-generation cortisol inhibitor.

The Phase 3 program for RECORLEV includes SONICS and LOGICS: two multinational studies designed to evaluate the safety and efficacy of RECORLEV when used to treat endogenous Cushing’s syndrome. The SONICS study met its primary and secondary endpoints, demonstrating a statistically significant normalization rate of urinary free cortisol at six months. The LOGICS study, which met its primary endpoint, is a double-blind, placebo-controlled randomized-withdrawal study of RECORLEV that is designed to supplement the long-term efficacy and safety information supplied by SONICS. The ongoing long-term open label OPTICS study will gather further useful information related to the long-term use of RECORLEV.

RECORLEV has received orphan drug designation from the FDA and the European Medicines Agency for the treatment of endogenous Cushing’s syndrome.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. The words “anticipate,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “will,” “would,” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical facts, contained in this press release, are forward-looking statements, including statements related
to 2021 KEVEYIS revenue guidance, expected cash balances and cash runway, potential advantages of RECORLEV, the anticipated timing for the review of the NDA for RECORLEV and the potential launch of RECORLEV (if approved),
Strongbridge’s strategy, plans, outcomes of product development efforts and objectives of management for future operations. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in such statement, including risks and uncertainties associated with clinical development and the regulatory approval process, the reproducibility of any reported results showing the benefits of RECORLEV, the adoption of RECORLEV by physicians, if approved, as treatment for any disease and the emergence of unexpected adverse events following regulatory approval and use of the product by patients.  Additional risks and uncertainties relating to Strongbridge and its business can be found under the heading “Risk Factors” in Strongbridge’s Annual Report on Form 10-K for the year ended December 31, 2020 and its subsequent Quarterly Reports on Form 10-Q, as well as its other filings with the SEC. These forward-looking statements are based on current expectations, estimates, forecasts and projections and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors. The forward-looking statements contained in this press release are made as of the date of this press release, and Strongbridge Biopharma does not assume any obligation to update any forward-looking statements except as required by applicable law.

Contacts:

Corporate and Media Relations

Elixir Health Public Relations
Lindsay Rocco
+1 862-596-1304
[email protected]

Investor Relations

Solebury Trout
Mike Biega
+1 617-221-9660
[email protected]

WEST CHESTER, Pa., March 03, 2021 (GLOBE NEWSWIRE) — Verrica Pharmaceuticals Inc. (“Verrica”) (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that Ted White, Verrica President and CEO, will present a business overview at the H.C. Wainwright Annual Global Life Sciences Conference, taking place March 9-10, 2021.

A pre-recorded presentation will be available for on-demand access beginning at 7:00 a.m. ET on Tuesday, March 9, 2021. Participants may access a webcast of the event through the following link:
https://journey.ct.events/view/920684dd-5942-496a-9960-f3619118a62d.

The webcast can also be accessed in the Investors/Presentations & Events section of the Verrica website at www.verrica.com. The webcast replay will be available shortly after conclusion of the event for 30 days.

About Verrica Pharmaceuticals Inc.

Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica’s late-stage product candidate, VP-102, is in development to treat molluscum, common warts and external genital warts, three of the largest unmet needs in medical dermatology. Verrica is also developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. The Company has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize LTX-315 for dermatologic oncology conditions. For more information, visit www.verrica.com.

FOR MORE INFORMATION, PLEASE CONTACT:

Investors:

A. Brian Davis

Chief Financial Officer
484.453.3300 ext. 103
[email protected]

William Windham

Solebury Trout
646.378.2946
[email protected]

Media:

Zara Lockshin

Solebury Trout
646.378.2960
[email protected]

AUSTIN, Texas, March 03, 2021 (GLOBE NEWSWIRE) — Plus Therapeutics, Inc. (Nasdaq: PSTV) (the “Company”), a clinical-stage pharmaceutical company developing novel, targeted therapies for rare and difficult to treat cancers, today announced that Marc Hedrick, M.D., President and Chief Executive Officer of Plus Therapeutics, will present at the following upcoming virtual conferences.

Event		H.C. Wainwright Global Life Sciences Conference
Date		March 9-10, 2021
Presentation		Available on demand beginning March 9
Event		Maxim Emerging Growth Conference
Date		March 17-18, 2021
Presentation		Available on demand beginning March 17

Investors interested in arranging a meeting with the Company’s management for these conferences should contact the respective conference coordinator.

Webcast of the H.C. Wainwright conference presentation will be available under the ‘Events’ tab of the Investor Relations section of the Plus Therapeutics website at www.plustherapeutics.com. Access to the Maxim conference presentation will be available HERE.
        
About Plus Therapeutics, Inc.

Plus Therapeutics (Nasdaq: PSTV) is a clinical-stage pharmaceutical company whose radiotherapeutic portfolio is concentrated on nanoliposome-encapsulated radionuclides for several cancer targets. Central to the Company’s drug development is a unique nanotechnology platform designed to reformulate, deliver and commercialize multiple drugs targeting rare cancers and other diseases. The platform is designed to facilitate new delivery approaches and/or formulations of safe and effective, injectable drugs, potentially enhancing the safety, efficacy and convenience for patients and healthcare providers. More information may be found at PlusTherapeutics.com and ReSPECT-Trials.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of U.S. securities laws. All statements, other than statements of historical fact, that address activities, events or developments that we intend, expect, project, believe or anticipate and similar expressions or future conditional verbs such as will, should, would, could or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These statements include, without limitation, statements about: the Company’s potential to facilitate new delivery approaches and/or formulations of safe and effective, injectable drugs, potentially enhancing the safety, efficacy and convenience for patients and healthcare providers; the Company’s potential to develop drug candidates currently in its product pipeline; and the Company’s potential to develop additional drugs outside of its current pipeline. The forward-looking statements included in this press release are subject to a number of additional material risks and uncertainties, including but not limited to: the risk that the Company is not able to successfully develop product candidates that can leverage the U.S. FDA’s accelerated regulatory pathways; and the risks described under the heading “Risk Factors” in the Company’s Securities and Exchange Commission filings, including in the Company’s annual and quarterly reports. There may be events in the future that the Company is unable to predict, or over which it has no control, and its business, financial condition, results of operations and prospects may change in the future. The Company assumes no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made unless the Company has an obligation under U.S. federal securities laws to do so.

Investor Contact

Peter Vozzo
Westwicke/ICR
(443) 377-4767
[email protected]

Media Contact

Terri Clevenger
Westwicke/ICR
(203) 856-4326
[email protected] 

RESEARCH TRIANGLE PARK, N.C., March 03, 2021 (GLOBE NEWSWIRE) — G1 Therapeutics, Inc. (Nasdaq: GTHX), a commercial-stage oncology company, today announced that the Company will participate in two investor conferences in March.

Jack Bailey, G1’s Chief Executive Officer, will provide a presentation during the HC Wainwright Global Life Sciences Conference; this presentation will be available starting on March 9, 2021 at 7:00 AM ET. In addition, Mr. Bailey will also participate in a fireside chat during the Roth 33^rd Annual Conference on March 17, 2021 at 10:30 AM ET.

These conferences are being held virtually, and webcasts will be accessible on the Events & Presentations page of http://www.g1therapeutics.com.

About G1 Therapeutics

G1 Therapeutics, Inc. is a commercial-stage biopharmaceutical company focused on the discovery, development and delivery of next generation therapies that improve the lives of those affected by cancer, including the Company’s first commercial product COSELA™ (trilaciclib). G1 has a deep clinical pipeline evaluating targeted cancer therapies in a variety of solid tumors, including colorectal, breast, lung, and bladder cancers. G1 Therapeutics is based in Research Triangle Park, N.C. For additional information, please visit www.g1therapeutics.com and follow us on Twitter @G1Therapeutics.

G1 Therapeutics is based in Research Triangle Park, N.C. For additional information, please visit www.g1therapeutics.com and follow us on Twitter @G1Therapeutics.

Contacts:

Will Roberts
Vice President, Investor Relations & Corporate Communications
919-907-1944
[email protected]

The financial information reported herein is based on the condensed interim consolidated (unaudited) information for the three-month period ended January 31, 2021, and has been prepared in accordance with International Financial Reporting standards (IFRS), as issued by the International Accounting Standards Board (IASB). All amounts are denominated in Canadian dollars. The Laurentian Bank of Canada and its entities are collectively referred to as Laurentian Bank Financial Group (the “Group” or the “Bank”) and provide deposit, investment, loan, securities, trust and other products or services.

Highlights of first quarter 2021

• Adjusted net income⁽¹⁾ of $47.6 million for the first quarter of 2021, compared with $36.9 million for the first quarter of 2020.
• Reported net income of $44.8 million for the first quarter of 2021, compared with $32.2 million for the first quarter of 2020.
• Adjusted diluted earnings per share⁽¹⁾ of $1.03 for the first quarter of 2021, compared with $0.79 for the first quarter of 2020.
• Diluted earnings per share of $0.96 for the first quarter of 2021, compared with $0.68 for the first quarter of 2020.

MONTREAL, March 03, 2021 (GLOBE NEWSWIRE) — Laurentian Bank Financial Group reported net income of $44.8 million and diluted earnings per share of $0.96 for the first quarter of 2021, compared with $32.2 million and $0.68 for the first quarter of 2020. Return on common shareholders’ equity was 7.1% for the first quarter of 2021, compared with 5.0% for the first quarter of 2020. On an adjusted basis, net income was $47.6 million and diluted earnings per share were $1.03 for the first quarter of 2021, up from $36.9 million and $0.79 for the first quarter of 2020. Adjusted return on common shareholders’ equity was 7.5% for the first quarter of 2021, compared with 5.8% a year ago. Reported results include adjusting items, as detailed in the Non-GAAP and Key Performance Measures section.

“I am pleased to report that we had a good start to the year. Our results were driven by a strong performance in capital market activities, the resumption of growth in commercial banking and our strong cost discipline.” said Rania Llewellyn, President and Chief Executive Officer. “We will take the experiences of the past year to propel us forward, as we renew our leadership team and create an organization that is agile, efficient and above all customer centric.”

	For the three months ended
In millions of Canadian dollars, except per share and percentage amounts (Unaudited)	January 31, 2021				January 31, 2020				Variance
Reported basis
Net income	$	44.8			$	32.2			39	%
Diluted earnings per share	$	0.96			$	0.68			41	%
Return on common shareholders’ equity	7.1		%		5.0		%
Efficiency ratio	70.4		%		79.1		%
Common Equity Tier 1 capital ratio	9.8		%		9.0		%
Adjusted basis (1)
Adjusted net income	$	47.6			$	36.9			29	%
Adjusted diluted earnings per share	$	1.03			$	0.79			30	%
Adjusted return on common shareholders’ equity	7.5		%		5.8		%
Adjusted efficiency ratio	68.9		%		76.6		%

 

(1)	Certain measures presented throughout this document exclude amounts designated as adjusting items and are Non-GAAP measures. Refer to the Non-GAAP measures section for further details

Consolidated Results

Non-GAAP measures

Management uses both generally accepted accounting principles (GAAP) and non-GAAP measures to assess the Bank’s performance. Results prepared in accordance with GAAP are referred to as “reported” results. Non-GAAP measures presented throughout this document are referred to as “adjusted” measures and exclude amounts designated as adjusting items. Adjusting items relate to restructuring plans and to business combinations and have been designated as such as management does not believe they are indicative of underlying business performance. Non-GAAP measures are considered useful to readers in obtaining a better understanding of how management analyzes the Bank’s results and in assessing underlying business performance and related trends. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are unlikely to be comparable to any similar measures presented by other issuers.

The following table shows adjusting items and their impact on reported results.

	For the three months ended
In thousands of Canadian dollars, except per share amounts (Unaudited)	January 31, 2021				October 31, 2020				January 31, 2020
Impact on income before income taxes
Reported income before income taxes	$	56,511			$	41,647			$	34,679
Adjusting items, before income taxes
Restructuring charges(1)
Severance charges	262				2,253				2,838
Other restructuring charges	359				1,909				(104		)
	621				4,162				2,734
Items related to business combinations
Amortization of net premium on purchased financial instruments(2)	—				100				232
Amortization of acquisition-related intangible assets(3)	3,073				3,180				3,399
	3,073				3,280				3,631
	3,694				7,442				6,365
Adjusted income before income taxes	$	60,205			$	49,089			$	41,044
Impact on net income
Reported net income	$	44,819			$	36,811			$	32,172
Adjusting items, net of income taxes
Restructuring charges(1)
Severance charges	193				1,659				2,086
Other restructuring charges	264				1,402				(76		)
	457				3,061				2,010
Items related to business combinations
Amortization of net premium on purchased financial instruments(2)	—				77				171
Amortization of acquisition-related intangible assets(3)	2,296				2,362				2,547
	2,296				2,439				2,718
	2,753				5,500				4,728
Adjusted net income	$	47,572			$	42,311			$	36,900
Impact on diluted earnings per share
Reported diluted earnings per share	$	0.96			$	0.79			$	0.68
Adjusting items
Restructuring charges(1)	0.01				0.07				0.05
Items related to business combinations	0.05				0.06				0.06
	0.06				0.13				0.11
Adjusted diluted earnings per share(4)	$	1.03			$	0.91			$	0.79

(1)	Restructuring charges mainly result from the optimization of the Quebec Retail Network operations and the related streamlining of certain back-office and corporate functions. In 2020, restructuring charges also resulted from the reorganization of retail brokerage activities and other measures aimed at improving efficiency. Restructuring charges include severance charges, salaries, provisions, communication expenses and professional fees and charges related to lease contracts. Restructuring charges are included in Non-interest expenses.
(2)	Amortization of net premium on purchased financial instruments resulted from a one-time gain on a business acquisition in 2012 and is included in the Amortization of net premium on purchased financial instruments line item.
(3)	Amortization of acquisition-related intangible assets results from business acquisitions and is included in the Non-interest expenses line item.
(4)	The impact of adjusting items on a per share basis may not add due to rounding.

Three months ended January 31, 2021 financial performance

Net income was $44.8 million and diluted earnings per share were $0.96 for the first quarter of 2021, compared with $32.2 million and $0.68 for the first quarter of 2020. Adjusted net income was $47.6 million for the first quarter of 2021 up 29% from $36.9 million for the first quarter of 2020, and adjusted diluted earnings per share were $1.03, up 30% compared with $0.79 for the first quarter of 2020.

Total revenue

Total revenue was $247.4 million for the first quarter of 2021, up 4% compared with $238.7 million for the first quarter of 2020.

Net interest income increased by $4.3 million to $173.1 million for the first quarter of 2021, compared with $168.8 million for the first quarter of 2020. The increase was mainly due to improved funding costs, mostly as the utilization of secured funding increased, as well as to higher prepayment penalties on residential mortgage loans. Net interest margin was 1.84% for the first quarter of 2021, an increase of 3 basis points compared with the first quarter of 2020, essentially for the same reasons.

Other income increased by $4.4 million or 6% to $74.3 million for the first quarter of 2021, compared with $69.9 million for the first quarter of 2020. The increase was mainly due to the strong contribution from capital market activities, which improved by $7.8 million compared with the first quarter of 2020. This was partly offset by a decrease in service charges and VISA card service revenues due to ongoing changes to the retail banking environment, exacerbated by the COVID-19 pandemic.

Provision for credit losses

The provision for credit losses amounted to $16.8 million for the first quarter of 2021 compared with $14.9 million for the first quarter of 2020, an increase of $1.9 million. The increase year-over-year was mainly due to an increase in allowances on impaired commercial loans.

Refer to the “Risk Management” section of the MD&A and to Note 5 to the Condensed Interim Consolidated Financial Statements for more information on provision for credit losses and allowances for credit losses.

Non-interest expenses

Non-interest expenses amounted to $174.1 million for the first quarter of 2021, a decrease of $14.8 million or 8% compared with the first quarter of 2020. Adjusted non-interest expenses amounted to $170.4 million for the first quarter of 2021, a decrease of $12.4 million or 7% compared with the first quarter of 2020.

Salaries and employee benefits amounted to $95.4 million for the first quarter of 2021, essentially unchanged compared with the first quarter of 2020. Year-over-year, higher performance-based compensation related to strong capital market activities was mostly offset by a decrease in salaries reflecting the headcount reduction implemented in 2020.

Premises and technology costs were $48.5 million for the first quarter of 2021, a decrease of $1.3 million compared with the first quarter of 2020, mainly as a result of continued efforts to streamline costs, as well as a slowdown of the pace of IT projects.

Other non-interest expenses were $29.6 million for the first quarter of 2021, a decrease of $11.6 million compared with the first quarter of 2020. The improvement mainly resulted from lower regulatory costs, as well as lower advertising, business development and travel expenses, ensuing from efficiency measures and current economic conditions.

Restructuring charges were $0.6 million for the first quarter of 2021 and mainly included severance charges and professional fees.

Efficiency ratio

The adjusted efficiency ratio was 68.9% for the first quarter of 2021, compared with 76.6% for the first quarter of 2020, as a result of lower adjusted expenses and an increase in total revenue. Adjusted operating leverage was positive year-over-year. The efficiency ratio on a reported basis was 70.4% for the first quarter of 2021, compared with 79.1% for the first quarter of 2020, as a result of lower expenses and an increase in total revenue.

Income taxes

For the quarter ended January 31, 2021, the income tax expense was $11.7 million, and the effective tax rate was 20.7%. The lower tax rate, compared to the statutory rate, is attributed to a lower taxation level of revenue from foreign operations, as well as from the favourable effect of holding investments in Canadian securities that generate non-taxable dividend income. For the quarter ended January 31, 2020, income tax expense was $2.5 million, and the effective tax rate was 7.2%. Year-over-year, the higher income tax rate is mainly attributed to the proportionally higher domestic income.

Financial Condition

As at January 31, 2021, total assets amounted to $45.2 billion, a 2% increase from $44.2 billion as at October 31, 2020, mostly due to the higher level of liquid assets.

Liquid assets

Liquid assets consist of cash, deposits with banks, securities and securities purchased under reverse repurchase agreements. As at January 31, 2021, these assets totalled $10.5 billion, an increase of $0.9 billion compared with $9.6 billion as at October 31, 2020.

The Bank continues to prudently manage its level of liquid assets. The Bank’s funding sources remain well diversified and sufficient to meet all liquidity requirements. Liquid assets represented 23% of total assets as at January 31, 2021, compared with 22% as at October 31, 2020.

Loans

Loans and bankers’ acceptances, net of allowances, stood at $33.0 billion as at January 31, 2021, unchanged compared with the level as at October 31, 2020. During the first quarter of 2021, commercial loan growth resumed, which was offset by reductions in personal loans and residential mortgage loans.

Commercial loans and acceptances amounted to $13.2 billion as at January 31, 2021, an increase of 3% since October 31, 2020. Growth in inventory financing volumes resumed in the quarter, reflecting seasonality as dealers begin to restock their inventories despite continued supply chain challenges. Real estate lending also contributed to growth and continued to show resilience during the COVID-19 pandemic amidst the lower interest rate environment.

Personal loans amounted to $4.0 billion as at January 31, 2021, a decrease of $0.1 billion or 4% since October 31, 2020, mainly as a result of the continued reduction in the investment loan portfolio, reflecting the continued reduction in the use of leverage by consumers.

Residential mortgage loans amounted to $16.1 billion as at January 31, 2021, a decrease of $0.2 billion or 1% since October 31, 2020. The acquisition of mortgage loans from third parties, as part of the Bank’s program to optimize the usage of the National Housing Act mortgage-backed securities allocations, has contributed to mitigating the impact of other repayments.

Deposits

Deposits decreased by $0.3 billion or 1% to $23.6 billion as at January 31, 2021 compared with $23.9 billion as at October 31, 2020, mainly as the Bank optimized its funding sources to align with its asset level. Personal deposits stood at $18.3 billion as at January 31, 2021, down $0.5 billion compared with October 31, 2020. The decrease resulted mainly from lower term deposits sourced through intermediaries managed down as the Bank increased its debt related to securitization activities to optimize funding costs as described below, partly offset by higher volumes of demand deposits generated through the various direct to customer distribution channels of the Bank.

Business and other deposits increased by $0.2 billion over the same period to $5.3 billion, mostly due to an increase in wholesale funding as the Bank took advantage of favourable market conditions to augment its term funding.

Personal deposits represented 77% of total deposits as at January 31, 2021, compared with 79% as at October 31, 2020, and contributed to the Bank’s good liquidity position.

Debt related to securitization activities

Debt related to securitization activities increased by $0.4 billion or 4% compared with October 31, 2020 and stood at $10.6 billion as at January 31, 2021. Since the beginning of the year, mortgage loan securitization through the CMHC programs, supplemented by other secured funding, more than offset maturities of liabilities related to the Canada Mortgage Bond program, as well as normal repayments.

Shareholders’ equity and regulatory capital

Shareholders’ equity amounted to $2,644.9 million as at January 31, 2021, compared with $2,611.2 million as at October 31, 2020.

Compared to October 31, 2020, retained earnings increased by $44.3 million as the net income contribution of $44.8 million and other gains related to employee benefit plans and equity securities designated at fair value through other comprehensive income of $19.9 million were partly offset by dividends amounting to $20.4 million. Accumulated other comprehensive income decreased by $14.3 million, essentially as a result of a reduction in the cumulative foreign currency translation amount. For additional information, please refer to the Consolidated Statement of Changes in Shareholders’ Equity in the Condensed Interim Consolidated Financial Statements.

The Bank’s book value per common share was $54.42 as at January 31, 2021 compared to $53.74 as at October 31, 2020.

The Common Equity Tier 1 capital ratio stood at 9.8% as at January 31, 2021, compared with 9.6% as at October 31, 2020. The increase compared with October 31, 2020 mainly results from internal capital generation. This level of capital provides the Bank with the necessary operational flexibility to resume growth and to pursue key initiatives prudently, considering the economic conditions.

Caution Regarding Forward-Looking Statements

The Bank may, from time to time, make written or oral forward-looking statements within the meaning of applicable securities legislation, including in this document and the documents incorporated by reference herein, and in other documents filed with Canadian regulatory authorities or in other written or oral communications. Forward-looking statements include, but are not limited to, statements regarding business plans and strategies, priorities and financial objectives, the regulatory environment in which the Bank operates, the anticipated impact of the coronavirus (“COVID-19”) pandemic on the Bank’s operations, earnings results and financial performance and statements under the headings “Outlook”, “COVID-19 Pandemic” and “Risk Appetite and Risk Management Framework” contained in the Bank’s 2020 Annual Report, including the Management’s Discussion and Analysis for the fiscal year ended October 31, 2020 and other statements that are not historical facts. Forward-looking statements typically are identified with words or phrases such as “believe”, “assume”, “estimate”, “forecast”, “outlook”, “project”, “vision”, “expect”, “foresee”, “anticipate”, “plan”, “goal”, “aim”, “target”, “may”, “should”, “could”, “would”, “will”, “intend” or the negative of these terms, variations thereof or similar terminology. 

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2020 Annual Report under the heading “Outlook”. There is significant risk that the predictions, forecasts, projections or conclusions will prove to be inaccurate, that the Bank’s assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, projections or conclusions.

The Bank cautions readers against placing undue reliance on forward-looking statements, as a number of factors, many of which are beyond its control and the effects of which can be difficult to predict, could influence, individually or collectively, the accuracy of the forward-looking statements and cause actual future results to differ significantly from the targets, expectations, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to risks relating to: the impacts of the COVID-19 pandemic on the Bank, its business, financial condition and prospects; technology, information systems and cybersecurity; technological disruption, competition and its ability to execute on its strategic objectives; the economic climate in the U.S. and Canada; accounting policies, estimates and developments; legal and regulatory compliance; fraud and criminal activity; human capital; insurance; business continuity; business infrastructure; environmental and social risk and climate change; and its ability to manage operational, regulatory, legal, strategic, reputational and model risks, all of which are described in more detail in the section titled “Risk Appetite and Risk Management Framework” beginning on page 43 of the 2020 Annual Report including the Management’s Discussion and Analysis for the fiscal year ended October 31, 2020.

The Bank further cautions that the foregoing list of factors is not exhaustive. Additional risks and uncertainties not currently known to us or that the Bank currently deems to be immaterial may also have a material adverse effect on its financial position, financial performance, cash flows, business or reputation. Any forward-looking statements contained in this document represent the views of Management only as at the date hereof, are presented for the purposes of assisting investors and others in understanding certain key elements of the Bank’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Bank’s business and anticipated operating environment and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether oral or written, made by the Bank or on its behalf whether as a result of new information, future events or otherwise, except to the extent required by securities regulations. Additional information relating to the Bank can be located on the SEDAR website at www.sedar.com.

Access to Quarterly Results Materials

This press release can be found on our website at www.lbcfg.ca, under the Press Room tab, and our Report to Shareholders, Investor Presentation and Supplementary Financial Information under the Investor Centre tab, Financial Results.

Conference Call

Laurentian Bank Financial Group invites media representatives and the public to listen to the conference call to be held at 9:00 a.m. (ET) on March 3, 2021. The live, listen-only, toll-free, call-in number is 1-800-239-9838, code 9371678. A live webcast will also be available on the Group’s website under the Investor Centre tab, Financial Results.

The conference call playback will be available on a delayed basis from 1:00 p.m. (ET) on March 3, 2021 until 12:00 p.m. (ET) on April 2, 2021, on our website under the Investor Centre tab, Financial Results.

The presentation material referenced during the call will be available on our website under the Investor Centre tab, Financial Results.       

Contact Information
Investor Relations	Media
Susan Cohen	Fabrice Tremblay
Director, Investor Relations	Advisor, Communications
Mobile: 514 970-0564	Office: 514 284-4500, ext. 40020
[email protected]	Mobile: 438 989-6070
	[email protected]

About Laurentian Bank Financial Group

Founded in 1846, Laurentian Bank Financial Group is a diversified financial services provider whose mission is to help its customers improve their financial health. The Laurentian Bank of Canada and its entities are collectively referred to as Laurentian Bank Financial Group (the “Group” or the “Bank”).

With more than 2,900 employees guided by the values of proximity, simplicity and honesty, the Group provides a broad range of advice-based solutions and services to its personal, business and institutional customers. With pan-Canadian activities and a presence in the U.S., the Group is an important player in numerous market segments.

The Group has $45.2 billion in balance sheet assets and $29.2 billion in assets under administration. 

JOHNS CREEK, Ga., March 03, 2021 (GLOBE NEWSWIRE) — Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, is providing LTL shipment and tonnage data for the first two months of the first quarter. In January 2021, final LTL shipments per workday increased 1.4%, LTL tonnage per workday increased 5.4% and LTL weight per shipment increased 3.9% to 1,355 pounds compared to 1,304 pounds in January 2020. In February 2021, LTL shipments per workday declined 6.7%, LTL tonnage per workday declined 2.3% and LTL weight per shipment increased 4.7% to 1,367 pounds compared to 1,306 pounds in February 2020. February trends reflect a negative impact related to severe winter weather that effected much of the central U.S., with the largest impact on business occurring in Texas. As many as 70 terminals were either closed or had limited operations for several days in February. Absent the February severe weather period, business trends were consistent with those seen in January.

Actual first quarter and annual shipments, tonnage and weight per shipment could differ materially from the data expressed in this press release, including by reason of the risk factors included in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in other filings with the Securities and Exchange Commission. The information herein speaks as of the date of this press release and is subject to change. Saia is under no obligation, and expressly disclaims any obligation to update or alter such information, whether as a result of new information, future events, or otherwise, except as required by law.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. With headquarters in Georgia, Saia LTL Freight operates 169 terminals in 44 states. For more information on Saia, Inc. visit the Investor Relations section at www.saia.com.

Cautionary Note Regarding Forward-Looking Statements

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release may contain these types of statements, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “may,” “plan,” “predict,” “believe,” “should” and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, uncertainties and assumptions include, but are not limited to, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (5) failure to achieve acquisition synergies; (6) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses; (7) economic declines in the geographic regions or industries in which our customers operate; (8) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (9) loss of significant customers; (10) the Company’s need for capital and uncertainty of the credit markets; (11) the possibility of defaults under the Company’s debt agreements (including violation of financial covenants); (12) possible issuance of equity which would dilute stock ownership; (13) integration risks; (14) the effect of litigation including class action lawsuits; (15) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment, technology and other assets; (16) the effect of governmental regulations, including but not limited to Hours of Service, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, the Food and Drug Administration, compliance with legislation requiring companies to evaluate their internal control over financial reporting, Homeland Security, environmental regulations, tax law changes and changes to international trade agreements and tariffs; (17) changes in interpretation of accounting principles; (18) dependence on key employees; (19) inclement weather; (20) labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; (21) terrorism risks; (22) self-insurance claims and other expense volatility; (23) risks arising from international business operations and relationships; (24) recent increases in the severity of auto liability claims against trucking companies and sharply higher costs of settlements and verdicts; (25) cost and availability of insurance coverage including the possibility the Company may be required to pay additional premiums, may be required to assume additional liability under its auto policy or be unable to obtain coverage; (26) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (27) social media risks; (28) disruption in or failure of the Company’s technology or equipment including services essential to operations of the Company and/or cyber security risk; (29) failure to successfully execute the strategy to expand the Company’s service geography into the Northeastern United States; and (30) other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings.

As a result of these and other factors, no assurance can be given as to our future results and achievements. Accordingly, a forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this press release. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:	Saia, Inc.
	Melanie Baker
	[email protected]
	770.232.4088