Market Newsdesk

March 3, 2021 7:33 am

SunOpta Announces Fourth Quarter Fiscal 2020 Financial Results

SunOpta Announces Fourth Quarter Fiscal 2020 Financial Results

Revenue from continuing operations increased 10.4%, with growth across both segments

Gross margin from continuing operations improved 360 basis points

Adjusted EBITDA increased 84% to $20.6 million ($26.5 million with divested Global Ingredients segment)

MINNEAPOLIS–(BUSINESS WIRE)–
SunOpta Inc. (“SunOpta” or the “Company”) (Nasdaq:STKL) (TSX:SOY), a leading healthy food and beverage company focused on plant-based foods and beverages and fruit-based foods and beverages, today announced financial results for the fourth quarter ended January 2, 2021.

All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted. The Company’s financial results presented below reflect the divestiture of Tradin Organic (Global Ingredients segment) on December 30, 2020, unless otherwise indicated. Tradin Organic has been reported as discontinued operations for the current and prior periods.

Fourth Quarter 2020:

Revenues of $205.6 million from continuing operations for the fourth quarter of 2020 compared to $186.1 million in the fourth quarter of 2019, an increase of 10.4%.
Gross margin increased 360 basis points to 15.5% from 11.9% in the prior year.
Earnings attributable to common shareholders were $70.2 million or $0.78 per share in the fourth quarter of 2020, compared to a loss attributable to common shareholders of $7.6 million or $0.09 per share in the fourth quarter of 2019. This includes earnings from continuing and discontinued operations.
Adjusted earnings attributable to common shareholders were $1.2 million or $0.01 per diluted common share in the fourth quarter of 2020, compared to a loss of $5.6 million or $0.06 per diluted common share in the fourth quarter of 2019. This includes earnings from continuing and discontinued operations.
Adjusted EBITDA¹ from continuing operations of $20.6 million, or 10.0% of revenues for the fourth quarter of 2020, versus $11.2 million or 6.0% of revenues in the fourth quarter of 2019.

“The fourth quarter was another strong quarter, capping off a transformational year for SunOpta. We delivered 10.4% revenue growth, 15.5% gross margins and 10.0% EBITDA margins in Q4 reflecting the fundamental strength of the business,” said Joe Ennen, Chief Executive Officer. “The 84% increase in Adjusted EBITDA for the go-forward business during the fourth quarter was on top of a 649% increase a year earlier. We had more Adjusted EBITDA in the fourth quarter of 2020 from continuing operations than in the entire 2019 fiscal year. In the fourth quarter, we again delivered solid growth in both Plant-Based and Fruit-Based segments coupled with substantial margin improvements including a 19.4% gross profit margin in plant-based and a 10.1% gross profit margin in fruit-based. In addition, we significantly strengthened our balance sheet ensuring the flexibility and capacity to continue investing in core growth initiatives. We remain well positioned in favorable, on-trend categories with a strong pipeline of new business opportunities, particularly in plant-based foods and beverages. I am very proud of our execution and the responsiveness of the entire organization to the many challenges we faced throughout 2020 and we are optimistic we will carry this momentum into 2021.”

The table below summarizes the unaudited combined results from continuing operations and discontinued operations for the quarters ended January 2, 2021 and December 28, 2019. The net loss from continuing operations of $34.3 million for the fourth quarter of 2020 included: (i) $11.2 million of facility exit costs (mainly related to the previously announced exit from the Company’s Santa Maria, California, fruit processing facility) severance and asset impairment charges; (ii) a $12.7 million loss on a foreign currency economic hedge of the cash consideration from the sale of Tradin Organic; and (iii) an $8.9 million loss on the retirement of the Company’s 9.5% second lien notes on December 31, 2020. In addition, interest expense of $7.6 million in the fourth quarter of 2020 reflected the Company’s pre-December 30, 2020 capital structure with approximately $425 million of debt versus the approximately $70 million of debt at January 2, 2021. Earnings from discontinued operations for the fourth quarter of 2020 included a pre-tax gain on the sale of Tradin Organic of $111.8 million.

($000s)	Continuing Operations				Discontinued Operations					Combined Operations
		Q4 2020		Q4 2019		Q4 2020		Q4 2019		Q4 2020		Q4 2019
Revenue	$	205,556	$	186,120	$	124,819	$	109,682	$	330,375	$	295,802
Gross Profit		31,807		22,197		13,738		11,198		45,545		33,395
Net earnings (loss)		(34,330)		(6,743)		107,391		1,140		73,061		(5,603)
Adj. earnings (loss)		(2,456)		(7,125)		3,635		1,528		1,179		(5,597)
Adj. EBITDA		20,570		11,162		5,969		5,208		26,539		16,370

The following table summarizes revenue growth as reported and as adjusted for the impact of the additional week and commodity price changes in the fourth quarter of 2020:

	Revenue increase as reported	Adjusted for additional week and commodity price changes
Plant-Based Foods and Beverages	11.1%	6.6%
Fruit-Based Foods and Beverages	9.6%	3.9%
Total	10.4%	5.4%

Fourth Quarter 2020 Results from Continuing Operations

Revenues for the fourth quarter of 2020 were $205.6 million, an increase of 10.4% compared to $186.1 million in the fourth quarter of 2019.

The Plant-Based Foods and Beverages segment generated revenues of $118.2 million during the fourth quarter of 2020, an increase of 11.1% compared to $106.4 million in the fourth quarter of 2019. The growth primarily reflects expansion of plant-based beverage and broth offerings for retail customers, and higher volumes of ingredient extraction, partially offset by reduced sales volumes of plant-based beverage products to foodservice customers as a result of COVID-19.

The Fruit-Based Foods and Beverages segment generated revenues of $87.4 million during the fourth quarter of 2020, an increase of 9.6% compared to $79.7 million in the fourth quarter of 2019. The growth primarily reflects increased retail volumes of fruit snacks and frozen fruit, as well as increased pricing for frozen fruit partially offset by lower volume for frozen fruit and fruit preparations to foodservice customers as a result of COVID-19.

Gross profit was $31.8 million for the fourth quarter, an increase of $9.6 million compared to $22.2 million in the prior year period. As a percentage of revenues, gross profit margin was 15.5% in the fourth quarter of 2020 compared to 11.9% in the fourth quarter of 2019, an increase of 360 basis points. The Plant-Based Foods and Beverages segment accounted for $3.1 million of the increase in gross profit, primarily due to higher sales and production volumes of plant-based beverages, broths and plant-based ingredients, coupled with productivity-driven cost savings. The Fruit-Based Foods and Beverages segment increased gross profit by $6.5 million in the quarter, reflecting higher sales, pricing and mix factors, as well as further productivity enhancements.

Segment operating income¹ was $6.8 million, or 3.3% of revenues in the fourth quarter of 2020, compared to an operating loss of $0.5 million, or 0.3% of revenues in the fourth quarter of 2019. The increase in operating income year-over-year was primarily attributable to the $9.6 million increase in gross profit and the benefit from headcount reductions and other cost savings measures taken in 2019, partially offset by higher SG&A primarily driven by employee-related variable compensation and benefit costs.

The Company reported a loss from continuing operations for the fourth quarter of 2020 of $34.3 million, or $0.41 per diluted common share (after dividends on preferred stock). The loss included $11.2 million of facility exit costs, severance and asset impairment charges, a $12.7 million loss on a foreign currency economic hedge of the cash consideration from the sale of Tradin Organic, and an $8.9 million loss on the retirement of the Company’s second lien notes on December 31, 2020. This compares to a loss from continuing operations of $6.7 million, or $0.10 per diluted common share during the fourth quarter of 2019.

Adjusted loss¹ in the fourth quarter of 2020 was $2.5 million or $0.03 per common share, compared to an adjusted loss of $7.1 million or $0.08 per common share in the fourth quarter of 2019.

Adjusted EBITDA¹ was $20.6 million or 10.0% of revenues in the fourth quarter of 2020, compared to $11.2 million or 6.0% of revenues in the fourth quarter of 2019.

Please refer to the discussion and table below under “Non-GAAP Measures”.

Balance Sheet and Cash Flow

At January 2, 2021, SunOpta had total assets of $585.6 million and total debt of $69.7 million compared to total assets of $923.4 million and total debt of $480.0 million a year earlier, primarily reflecting the sale of Tradin Organic and improved operating performance. During the fourth quarter of 2020, cash generated by operating activities of continuing operations was $19.8 million compared to $33.2 million during the fourth quarter of 2019. Investing activities of continuing operations used $11.2 million of cash in the fourth quarter of 2020 versus $7.9 million in the prior year, primarily due to the settlement of the foreign currency contract economically hedging the Tradin Organic cash consideration.

Conference Call

SunOpta plans to host a conference call at 9:00 A.M. Eastern time on Wednesday, March 3, 2021, to discuss the fourth quarter financial results. After opening remarks, there will be a question-and-answer period. Investors interested in listening to a live webcast of the conference call can access a link on SunOpta’s website at www.sunopta.com under the “Investors” section or directly here. Investors interested in listening to the live call over the telephone must pre-register for the conference call via a link on SunOpta’s website at www.sunopta.com under the “Investors Relations” section or directly at http://www.directeventreg.com/registration/event/9477779. Upon registration, investors will be provided with the dial-in information, passcode and individual ID. Investors will also receive a confirmation email. Investors are encouraged to register at least 15 minutes prior to the scheduled call time and can register earlier at any time to receive the conference details. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at the Company’s website.

¹ See discussion of non-GAAP measures

About SunOpta Inc.

SunOpta Inc. is a leading company specializing in the sourcing, processing and production of organic, natural and non-GMO plant-based and fruit-based food and beverage products.

Forward-Looking Statements

Certain statements included in this press release may be considered “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our belief that investment in plant-based foods and beverages will continue to be a significant driver of revenue and margin growth, and our ability to drive further year-over-year adjusted EBITDA improvement. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as “continue”, “expect”, “believe”, “anticipate”, “estimates”, “can”, “will”, “target”, “should”, “would”, “plans”, “becoming”, “intend”, “confident”, “may”, “project”, “potential”, “intention”, “might”, “predict”, “budget”, “forecast” or other similar terms and phrases intended to identify these forward-looking statements. Forward-looking statements are based on information available to the Company on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments including, but not limited to, the Company’s actual financial results; uninterrupted operations and service levels to our customers during COVID-19; current customer demand for the Company’s products and the additional anticipated demand due to COVID-19; general economic conditions; continued consumer interest in health and wellness; the Company’s ability to maintain product pricing levels; planned facility and operational expansions, closures and divestitures; cost rationalization and product development initiatives; alternative potential uses for the Company’s capital resources; portfolio optimization and productivity efforts; the sustainability of the Company’s sales pipeline; the Company’s expectations regarding commodity pricing, margins and hedging results; improved availability and field prices for fruit; procurement and logistics savings; freight lane cost reductions; yield and throughput enhancements; and labor cost reductions. Whether actual timing and results will agree with expectations and predictions of the Company is subject to many risks and uncertainties including, but not limited to, potential loss of suppliers and customers as well as supply chain, logistics and other disruptions resulting from or related to COVID-19; unexpected issues or delays with the Company’s structural improvements and automation investments; failure or inability to implement portfolio changes, process improvements, go-to-market improvements and process sustainability strategies in a timely manner; changes in the level of capital investment; local and global political and economic conditions; consumer spending patterns and changes in market trends; decreases in customer demand; delayed or unsuccessful product development efforts; potential product recalls; working capital management; availability and pricing of raw materials and supplies; potential covenant breaches under the Company’s credit facilities; and other risks described from time to time under “Risk Factors” in the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized. The Company undertakes no obligation to publicly correct or update the forward-looking statements in this document, in other documents, or on its website to reflect future events or circumstances, except as may be required under applicable securities laws.

SunOpta Inc.
Consolidated Statements of Operations
For the quarters and years ended January 2, 2021 and December 28, 2019
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars, except per share amounts)

	Quarter ended				Year ended
	January 2, 2021		December 28, 2019		January 2, 2021		December 28, 2019
	$		$		$		$

Revenues	205,556		186,120		789,213		721,596

Cost of goods sold	173,749		163,923		680,136		656,093

Gross profit	31,807		22,197		109,077		65,503

Selling, general and administrative expenses	25,590		20,581		89,463		80,603
Intangible asset amortization	2,194		2,305		8,946		9,112
Other expense (income), net	22,604		(653	)	23,393		(40,639	)
Foreign exchange gain	(2,790	)	(200	)	(1,640	)	(157	)

Earnings (loss) from continuing operations before the following	(15,791	)	164		(11,085	)	16,584

Interest expense, net	7,605		8,259		30,042		32,765
Loss on retirement of debt	8,915		–		8,915		–

Loss from continuing operations before income taxes	(32,311	)	(8,095	)	(50,042	)	(16,181	)

Provision for (recovery of) income taxes	2,019		(1,352	)	(2,740	)	(3,101	)

Loss from continuing operations	(34,330	)	(6,743	)	(47,302	)	(13,080	)

Earnings from discontinued operations	107,391		1,140		124,820		12,322

Net earnings (loss)	73,061		(5,603	)	77,518		(758	)

Dividends and accretion on preferred stock	(2,855	)	(2,017	)	(10,328	)	(8,022	)

Earnings (loss) attributable to common shareholders	70,206		(7,620	)	67,190		(8,780	)

Basic and diluted earnings (loss) per share
From continuing operations	(0.41	)	(0.10	)	(0.65	)	(0.24	)
From discontinued operations	1.19		0.01		1.40		0.14
Basic and diluted earnings (loss) per share	0.78		(0.09	)	0.75		(0.10	)

Weighted-average common shares outstanding (000s)
Basic	89,991		88,017		89,234		87,787
Diluted	89,991		88,017		89,234		87,787

SunOpta Inc.
Consolidated Balance Sheets
As at January 2, 2021 and December 28, 2019
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars)

	January 2, 2021		December 28, 2019
	$		$

ASSETS
Current assets
Cash and cash equivalents	251		128
Accounts receivable	72,724		71,818
Inventories	147,748		153,562
Prepaid expenses and other current assets	21,665		20,558
Current income taxes recoverable	6,935		7,480
Current assets held for sale	–		236,408
Total current assets	249,323		489,954

Property, plant and equipment	158,048		159,675
Operating lease right-of-use assets	35,172		65,939
Goodwill	3,998		3,998
Intangible assets	133,317		142,263
Other assets	5,757		1,991
Long-term assets held for sale	–		59,539

Total assets	585,615		923,359

LIABILITIES
Current liabilities
Bank indebtedness	–		241,666
Accounts payable and accrued liabilities	118,592		89,136
Income taxes payable	1,431		356
Current portion of long-term debt	3,478		2,492
Current portion of operating lease liabilities	12,750		16,084
Current portion of long-term liabilities	200		4,286
Current liabilities held for sale	–		51,644
Total current liabilities	136,451		405,664

Long-term debt	66,245		235,840
Operating lease liabilities	24,582		50,657
Long-term liabilities	–		982
Deferred income taxes	25,408		9,040
Long-term liabilities held for sale	–		8,743
Total liabilities	252,686		710,926

Series A Preferred Stock	87,305		82,524
Series B Preferred Stock	27,595		–

EQUITY
SunOpta Inc. shareholders’ equity
Common shares	326,545		318,456
Additional paid-in capital	37,862		35,767
Accumulated deficit	(147,741	)	(214,931	)
Accumulated other comprehensive income (loss)	1,363		(11,271	)
	218,029		128,021
Non-controlling interests	–		1,888
Total equity	218,029		129,909

Total equity and liabilities	585,615		923,359

SunOpta Inc.
Consolidated Statements of Cash Flows
For the quarters and years ended January 2, 2021 and December 28, 2019
(Unaudited)
(Expressed in thousands of U.S. dollars)

	Quarter ended				Year ended
	January 2, 2021		December 28, 2019		January 2, 2021		December 28, 2019
	$		$		$		$

CASH PROVIDED BY (USED IN)

Operating activities
Net earnings (loss)	73,061		(5,603	)	77,518		(758	)
Earnings from discontinued operations	107,391		1,140		124,820		12,322
Loss from continuing operations	(34,330	)	(6,743	)	(47,302	)	(13,080	)
Items not affecting cash:
Depreciation and amortization	7,415		7,774		30,308		29,266
Amortization of debt issuance costs	1,055		699		4,078		2,721
Deferred income taxes	2,043		(230	)	7,553		1,075
Stock-based compensation	4,251		1,834		11,676		6,340
Loss on foreign currency forward contract	12,658		–		12,658		–
Impairment of long-lived assets	7,803		–		7,803		–
Loss on retirement of debt	8,915		–		8,915		–
Gain on sale of business	–		242		–		(44,027	)
Other	(368	)	(59	)	(157	)	(34	)
Changes in operating assets and liabilities, net of businesses sold	10,397		29,708		17,131		731
Net cash provided by (used in) operating activities of continuing operations	19,839		33,225		52,663		(17,008	)
Net cash provided by operating activities of discontinued operations	14,282		2,967		39,033		26,817
Net cash provided by operating activities	34,121		36,192		91,696		9,809

Investing activities
Purchases of property, plant and equipment	1,473		(6,571	)	(24,754	)	(28,387	)
Cash settlement of foreign currency forward contract	(12,658	)	–		(12,658	)	–
Net proceeds from sale of business	–		(1,348	)	–		63,324
Other	–		–		41		–
Net cash provided by (used in) investing activities of continuing operations	(11,185	)	(7,919	)	(37,371	)	34,937
Net cash provided by (used in) investing activities of discontinued operations	363,496		(1,286	)	361,889		(7,718	)
Net cash provided by (used in) investing activities	352,311		(9,205	)	324,518		27,219

Financing activities
Decrease under revolving credit facilities	(149,518	)	(23,641	)	(175,990	)	(11,290	)
Repayment of long-term debt, including premium paid	(229,729	)	(623	)	(231,431	)	(1,281	)
Borrowings of long-term debt	5,179		413		5,179		637
Payment of debt issuance costs	(2,397	)	(17	)	(4,888	)	(412	)
Proceeds on issuance of preferred stock, net of issuance costs	–		–		26,804		–
Payment of cash dividends on preferred stock	(2,378	)	(1,700	)	(4,078	)	(6,800	)
Proceeds from the exercise of stock options and employee share purchases	613		166		2,048		979
Payment of withholding taxes on stock-based awards	(1,704	)	(10	)	(4,080	)	(394	)
Other	(181	)	(5	)	(185	)	(19	)
Net cash used in financing activities of continuing operations	(380,115	)	(25,417	)	(386,621	)	(18,580	)
Net cash used in financing activities of discontinued operations	(7,216	)	(2,297	)	(31,063	)	(20,183	)
Net cash used in financing activities	(387,331	)	(27,714	)	(417,684	)	(38,763	)


Decrease in cash and cash equivalents during the year	(899	)	(727	)	(1,470	)	(1,735	)

Cash and cash equivalents of discontinued operations:
Balance at the beginning of the period	678		1,970		1,370		2,501
Foreign exchange gain (loss) on cash and cash equivalents	212		16		223		(47	)
Less: Balance at the end of period	–		(1,370	)	–		(1,370	)

Cash and cash equivalents – beginning of the period	260		239		128		779

Cash and cash equivalents – end of the period	251		128		251		128

SunOpta Inc.
Segmented Information
For the quarters and years ended January 2, 2021 and December 28, 2019
Unaudited
(Expressed in thousands of U.S. dollars)

	Quarter ended				Year ended
	January 2, 2021		December 28, 2019		January 2, 2021		December 28, 2019
	$		$		$		$
Segment revenues from external customers:
Plant-Based Foods and Beverages	118,179		106,371		415,164		361,398
Fruit-Based Foods and Beverages	87,377		79,749		374,049		349,852
Global Ingredients	–		–		–		10,346
Total segment revenues from external customers	205,556		186,120		789,213		721,596

Segment gross profit:
Plant-Based Foods and Beverages	22,980		19,881		80,497		58,812
Fruit-Based Foods and Beverages	8,827		2,316		28,580		6,499
Global Ingredients	–		–		–		192
Total segment gross profit	31,807		22,197		109,077		65,503

Segment operating income (loss):
Plant-Based Foods and Beverages	13,324		13,745		50,780		29,476
Fruit-Based Foods and Beverages	1,185		(4,669	)	(7,321	)	(26,873	)
Global Ingredients	–		–		–		(187	)
Corporate Services	(7,696	)	(9,565	)	(31,151	)	(26,471	)
Total segment operating income (loss)	6,813		(489	)	12,308		(24,055	)

Segment gross profit percentage:
Plant-Based Foods and Beverages	19.4	%	18.7	%	19.4	%	16.3	%
Fruit-Based Foods and Beverages	10.1	%	2.9	%	7.6	%	1.9	%
Global Ingredients	–		–		–		1.9	%
Total segment gross profit percentage	15.5	%	11.9	%	13.8	%	9.1	%

Segment operating income (loss) percentage:
Plant-Based Foods and Beverages	11.3	%	12.9	%	12.2	%	8.2	%
Fruit-Based Foods and Beverages	1.4	%	-5.9	%	-2.0	%	-7.7	%
Global Ingredients	–		–		–		-1.8	%
Total segment operating income (loss) percentage	3.3	%	-0.3	%	1.6	%	-3.3	%

Non-GAAP Measures

In addition to reporting financial results in accordance with U.S. GAAP, the Company provides additional information about its operating results regarding segment operating income, adjusted earnings and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which are not measures in accordance with U.S. GAAP. The Company believes that segment operating income, adjusted earnings and adjusted EBITDA assist investors in comparing performance across reporting periods on a consistent basis by excluding items that are not indicative of its operating performance. The non-GAAP measures of segment operating income, adjusted earnings and adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP.

In order to evaluate its results of operations, the Company uses certain other non-GAAP measures that it believes enhance an investor’s ability to derive meaningful period-over-period comparisons and trends from the results of operations. In particular, the Company evaluates its revenues on a basis that excludes the effects of foreign exchange rates and the impact of acquired or disposed operations. In addition, the Company excludes specific items from its reported results that due to their nature or size, it does not expect to occur as part of its normal business on a regular basis. These items are identified in the tables below. These non-GAAP measures are presented solely to allow investors to more fully assess the Company’s results of operations and should not be considered in isolation of, or as substitutes for an analysis of the Company’s results as reported under U.S. GAAP.

Adjusted Earnings/Loss

When assessing its financial performance, the Company uses an internal measure that excludes losses and gains that it believes are not reflective of normal operations. This information is provided to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Adjusted earnings/loss and adjusted earnings/loss per diluted share should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP.

The following is a tabular presentation of adjusted earnings/loss and adjusted earnings/loss per diluted share, including a reconciliation from net earnings/loss, which the Company believes to be the most directly comparable U.S. GAAP financial measure. In addition, the Company has prepared this table in a columnar format to present the effects of discontinued operations on its consolidated results for the periods presented. The Company believes this presentation assists investors in assessing the financial performance of its continuing operations.

	Continuing Operations				Discontinued Operations			Consolidated
			Per Share				Per Share			Per Share
For the quarters ended	$		$		$		$	$		$
January 2, 2021
Net earnings (loss)	(34,330	)			107,391			73,061
Dividends and accretion on preferred stock	(2,855	)			–			(2,855	)
Earnings (loss) attributable to common shareholders	(37,185	)	(0.41	)	107,391		1.19	70,206		0.78
Adjusted for:
Gain on sale of discontinued operations^(a)	–				(111,818	)		(111,818	)
Loss on foreign currency forward contract^(b)	12,658				–			12,658
Costs related to Value Creation Plan^(c)	8,548				(1,331	)		7,217
Loss on retirement of debt^(d)	8,915				–			8,915
Long-lived asset impairments^(e)	2,676				771			3,447
Plant expansion costs^(f)	1,546				–			1,546
Other^(g)	(732	)			(163	)		(895	)
Net income tax effect^(h)	1,118				8,785			9,903
Adjusted earnings (loss)	(2,456	)	(0.03	)	3,635		0.04	1,179		0.01

December 28, 2019
Net earnings (loss)	(6,743	)			1,140			(5,603	)
Dividends and accretion on preferred stock	(2,017	)			–			(2,017	)
Earnings (loss) attributable to common shareholders	(8,760	)	(0.10	)	1,140		0.01	(7,620	)	(0.09	)
Adjusted for:
Gain on sale of soy and corn business⁽ⁱ⁾	242				–			242
Costs related to Value Creation Plan^(j)	1,042				237			1,279
Plant expansion costs^(k)	–				298			298
Other^(l)	(1,154	)			112			(1,042	)
Net income tax effect^(m)	1,505				(259	)		1,246
Adjusted earnings (loss)	(7,125	)	(0.08	)	1,528		0.02	(5,597	)	(0.06	)

(a)		Reflects the pre-tax gain on sale of Tradin Organic recorded in earnings from discontinued operations.
(b)		Reflects a loss on a foreign currency forward contract to economically hedge the cash consideration from the sale of Tradin Organic, which was recorded in other expense.
(c)		Reflects long-lived asset impairment and facility closure costs of $6.4 million recorded in other expense; employee termination costs of $1.6 million recorded in SG&A expenses, and the reclassification to earnings from discontinued operations of $1.3 million of professional fees related to the divestiture of Tradin Organic.
(d)		Reflects the premium paid ($5.3 million) and write-off of unamortized debt issuance costs ($3.6 million) on the redemption and retirement of our second lien notes, which was recorded in non-operating expenses.
(e)		Reflects the write-down of owned and right-of-use assets related to the consolidation of roasting lines at our Crookston, Minnesota, facility, and the write-off of obsolete cocoa processing equipment at Tradin Organic, with was recorded in other expense and earnings from discontinued operations.
(f)		Reflects start-up costs related to expansion projects within our plant-based ingredient extraction and beverage operations, which were recorded in cost of goods sold.
(g)		Other includes a reversal of previously accrued costs related to the withdrawal of certain consumer-packaged products, which was recorded in other income/expense.
(h)		Reflects estimated income tax attributable to the gain on sale of Tradin Organic, together with the tax effect of the other preceding adjustments to earnings based on an overall estimated annual effective tax rate of approximately 30% for 2020.
(i)		Reflects the gain on sale of the soy and corn business, which was recorded in other income.
(j)		Reflects employee retention and relocation costs of $0.4 million, and professional fees of $0.4 million recorded in SG&A expenses; and employee termination costs of $1.7 million (offset by the reversal of $1.3 million of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees), which was recorded in other expense and earnings from discontinued operations.
(k)		Reflects costs related to the start-up of Tradin Organic’s avocado oil facility in Ethiopia, which were recorded in earnings from discontinued operations.
(l)		Other includes gains on the settlement of certain legal matters and a project cancellation, partially offset by losses on disposal of assets, which were recorded in other income/expense and earnings from discontinued operations.
(m)		Consolidated reflects the tax effect of the preceding adjustments to earnings and reflects an overall estimated annual effective tax rate of approximately 27% for 2019.

	Continuing Operations				Discontinued Operations			Consolidated
			Per Share				Per Share			Per Share
For the years ended	$		$		$		$	$		$
January 2, 2021
Net earnings (loss)	(47,302	)			124,820			77,518
Dividends and accretion on preferred stock	(10,328	)			–			(10,328	)
Earnings (loss) attributable to common shareholders	(57,630	)	(0.65	)	124,820		1.40	67,190		0.75
Adjusted for:
Gain on sale of discontinued operations^(a)	–				(111,818	)		(111,818	)
Contingent consideration settlement^(b)	–				(2,286	)		(2,286	)
Loss on foreign currency forward contract^(c)	12,658				–			12,658
Costs related to Value Creation Plan^(d)	9,897				783			10,680
Loss on retirement of debt^(e)	8,915				–			8,915
Long-lived asset impairments^(f)	2,676				771			3,447
Plant expansion costs^(g)	1,883				–			1,883
Other^(h)	(189	)			(50	)		(239	)
Net income tax effect⁽ⁱ⁾	255				8,809			9,064
Adjusted earnings (loss)	(21,535	)	(0.24	)	21,029		0.24	(506	)	(0.01	)

December 28, 2019
Net earnings (loss)	(13,080	)			12,322			(758	)
Dividends and accretion on preferred stock	(8,022	)			–			(8,022	)
Earnings (loss) attributable to common shareholders	(21,102	)	(0.24	)	12,322		0.14	(8,780	)	(0.10	)
Adjusted for:
Gain on sale of soy and corn business^(j)	(44,027	)			–			(44,027	)
Costs related to Value Creation Plan^(k)	9,412				237			9,649
Plant expansion costs^(l)	311				298			609
Contract manufacturer transition costs^(m)	–				448			448
Product withdrawal and recall costs⁽ⁿ⁾	260				–			260
Other^(o)	(2,728	)			195			(2,533	)
Net income tax effect^(p)	12,394				(397	)		11,997
Adjusted earnings (loss)	(45,480	)	(0.52	)	13,103		0.15	(32,377	)	(0.37	)

(a)		Reflects the pre-tax gain on sale of Tradin Organic recorded in earnings from discontinued operations.
(b)		Reflects a gain on the settlement of the remaining earn-out obligation related to a prior acquisition of a premium juice business, which was recorded in earnings from discontinued operations.
(c)		Reflects a loss on a foreign currency forward contract to economically hedge the cash consideration from the sale of Tradin Organic, which was recorded in other expense.
(d)		Reflects professional fees of $1.0 million and employee retention costs of $0.6 million recorded in SG&A expenses; and long-lived asset impairment and facility closure costs of $6.7 million, and employee termination costs of $3.2 million (offset by the reversal of $0.9 million of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees), which were recorded in other expense and earnings from discontinued operations.
(e)		Reflects the premium paid ($5.3 million) and write-off of unamortized debt issuance costs ($3.6 million) on the redemption and retirement of our second lien notes, which was recorded in non-operating expenses.
(f)		Reflects the write-down of owned and right-of-use assets related to the consolidation of roasting lines at our Crookston, Minnesota, facility, and the write-off of obsolete cocoa processing equipment at Tradin Organic, with was recorded in other expense and earnings from discontinued operations.
(g)		Reflects start-up costs related to expansion projects within our plant-based ingredient extraction and beverage operations, which were recorded in cost of goods sold.
(h)		Other includes a loss of $2.4 million on the settlement of a customer claim related to the recall of certain sunflower products in 2016, net of gains of $2.2 million on the settlement of unrelated matters, and reversal of previously accrued costs related to the withdrawal of certain consumer-packaged products, which was recorded in other income/expense.
(i)		Reflects estimated income tax attributable to the gain on sale of Tradin Organic, together with the tax effect of the other preceding adjustments to earnings based on an overall estimated annual effective tax rate of approximately 30% for 2020.
(j)		Reflects the gain on sale of the soy and corn business, which was recorded in other income.
(k)		Reflects employee retention and relocation costs of $2.2 million, and professional fees of $1.4 million recorded in SG&A expenses; and employee termination costs of $8.6 million (offset by the reversal of $4.1 million of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees), CEO and CFO recruitment costs of $1.3 million, and facility closure costs of $0.3 million, which was recorded in other expense and earnings from discontinued operations.
(l)		Reflects costs related to the expansion of our Allentown, Pennsylvania, plant-based beverage facility and start-up of Tradin Organic’s avocado oil facility in Ethiopia, which were recorded in cost of goods sold and earnings from discontinued operations.
(m)		Reflects costs related to the transition of Tradin Organic’s premium juice production activities to new contract manufacturers, which were recorded in earnings from discontinued operations.
(n)		Reflects product withdrawal and recall costs that were not eligible for reimbursement under insurance policies or exceeded the limits of those policies, including costs related to the recall of certain sunflower kernel products initiated in 2016, which were recorded in other expense.
(o)		Other includes gains on the settlement of certain legal matters and a project cancellation, partially offset by losses on disposal of assets, insurance deductibles, and business development costs, which were recorded in other income/expense and earnings from discontinued operations.
(p)		Consolidated reflects the tax effect of the preceding adjustments to earnings and reflects an overall estimated annual effective tax rate of approximately 27% for 2019.

Segment Operating Income/Loss and Adjusted EBITDA

The Company defines segment operating income/loss as net earnings/loss before income taxes, interest expense and other income/expense items, and adjusted EBITDA as segment operating income/loss plus depreciation, amortization, non-cash stock-based compensation, and other unusual items that affect the comparability of operating performance as identified above in the determination of adjusted earnings/loss. The following is a tabular presentation of segment operating income/loss and adjusted EBITDA, including a reconciliation to net earnings/loss, which the Company believes to be the most directly comparable U.S. GAAP financial measure. In addition, as with adjusted earnings/loss presented above, the Company has prepared this table in a columnar format to present the effects of discontinued operations on its consolidated results for the periods presented. The Company believes this presentation assists investors in assessing the financial performance of its continuing operations.


	Continuing Operations		Discontinued Operations		Consolidated
For the quarters ended	$		$		$
January 2, 2021
Net earnings (loss)	(34,330	)	107,391		73,061
Loss attributable to non-controlling interests^(a)	–		(259	)	(259	)
Gain on sale of discontinued operations^(b)	–		(111,818	)	(111,818	)
Provision for income taxes	2,019		9,503		11,522
Loss on retirement of debt^(c)	8,915		–		8,915
Interest expense, net	7,605		613		8,218
Other expense, net	22,604		608		23,212
Total segment operating income	6,813		6,038		12,851
Depreciation and amortization	7,415		1,212		8,627
Stock-based compensation^(d)	4,250		50		4,300
Costs related to Value Creation Plan^(e)	546		(1,331	)	(785	)
Plant expansion costs^(f)	1,546		–		1,546
Adjusted EBITDA	20,570		5,969		26,539

December 28, 2019
Net earnings (loss)	(6,743	)	1,140		(5,603	)
Earnings attributable to non-controlling interests^(a)	–		95		95
Provision for (recovery of) income taxes	(1,352	)	1,334		(18	)
Interest expense, net	8,259		561		8,820
Other expense (income), net	(653	)	349		(304	)
Total segment operating income (loss)	(489	)	3,479		2,990
Depreciation and amortization	7,774		1,173		8,947
Stock-based compensation^(d)	3,093		258		3,351
Costs related to Value Creation Plan^(e)	784		–		784
Plant expansion costs^(g)	–		298		298
Adjusted EBITDA	11,162		5,208		16,370

(a)		Reflects non-controlling interests in the earnings/loss of certain subsidiaries of Tradin Organic, which is included in earnings from discontinued operations.
(b)		Reflects the pre-tax gain on sale of Tradin Organic recorded in earnings from discontinued operations.
(c)		Reflects the premium paid ($5.3 million) and write-off of unamortized debt issuance costs ($3.6 million) on the redemption and retirement of our second lien notes, which was recorded in non-operating expenses.
(d)		For 2020 and 2019, consolidated stock-based compensation of $4.3 million and $3.4 million, respectively, was recorded in SG&A expenses and earnings from discontinued operations, and the reversal of $1.3 million in 2019 of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees was recognized in other income.
(e)		For 2020, reflects professional fees of $0.5 million (2019 – $0.4 million), employee retention costs of $nil (2019 – $0.4 million) recorded in SG&A expenses, and the reclassification of $1.3 million of professional fees related to the divestiture of Tradin Organic to earnings from discontinued operations.
(f)		Reflects start-up costs related to expansion projects within our plant-based ingredient extraction and beverage operations, which were recorded in cost of goods sold.
(g)		Reflects costs related to the expansion of our Allentown, Pennsylvania, plant-based beverage facility and start-up of Tradin Organic’s avocado oil facility in Ethiopia, which were recorded in cost of goods sold and earnings from discontinued operations.


	Continuing Operations		Discontinued Operations		Consolidated
For the years ended	$		$		$
January 2, 2021
Net earnings (loss)	(47,302	)	124,820		77,518
Loss attributable to non-controlling interests^(a)	–		(301	)	(301	)
Gain on sale of discontinued operations^(b)	–		(111,818	)	(111,818	)
Provision for (recovery of) income taxes	(2,740	)	15,885		13,145
Loss on retirement of debt^(c)	8,915		–		8,915
Interest expense, net	30,042		2,409		32,451
Other expense (income), net	23,393		(782	)	22,611
Total segment operating income	12,308		30,213		42,521
Depreciation and amortization	30,308		4,661		34,969
Stock-based compensation^(d)	12,570		540		13,110
Costs related to Value Creation Plan^(e)	1,649		–		1,649
Plant expansion costs^(f)	1,883		–		1,883
Adjusted EBITDA	58,718		35,414		94,132

December 28, 2019
Net earnings (loss)	(13,080	)	12,322		(758	)
Earnings attributable to non-controlling interests^(a)	–		154		154
Provision for (recovery of) income taxes	(3,101	)	6,322		3,221
Interest expense, net	32,765		1,912		34,677
Other expense (income), net	(40,639	)	591		(40,048	)
Total segment operating income (loss)	(24,055	)	21,301		(2,754	)
Depreciation and amortization	29,266		4,686		33,952
Stock-based compensation^(d)	10,471		1,145		11,616
Costs related to Value Creation Plan^(e)	3,556		–		3,556
Plant expansion costs^(g)	311		298		609
Contract manufacturer transition costs^(h)	–		289		289
Adjusted EBITDA	19,549		27,719		47,268

(a)		Reflects non-controlling interests in the earnings/loss of certain subsidiaries of Tradin Organic, which is included in earnings from discontinued operations.
(b)		Reflects the pre-tax gain on sale of Tradin Organic recorded in earnings from discontinued operations.
(c)		Reflects the premium paid ($5.3 million) and write-off of unamortized debt issuance costs ($3.6 million) on the redemption and retirement of our second lien notes, which was recorded in non-operating expenses.
(d)		For 2020 and 2019, consolidated stock-based compensation of $13.1 million and $11.6 million, respectively, was recorded in SG&A expenses and earnings from discontinued operations, and the reversal of $0.9 million and $4.1 million, respectively, of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees was recognized in other income.
(e)		For 2020, reflects professional fees of $1.0 million (2019 – $1.4 million) and employee retention costs of $0.6 million (2019 – $2.2 million) recorded in SG&A expenses.
(f)		Reflects start-up costs related to expansion projects within our plant-based ingredient extraction and beverage operations, which were recorded in cost of goods sold.
(g)		Reflects costs related to the expansion of our Allentown, Pennsylvania, plant-based beverage facility and start-up of Tradin Organic’s avocado oil facility in Ethiopia, which were recorded in cost of goods sold and earnings from discontinued operations.
(h)		Reflects costs related to the transition of Tradin Organic’s premium juice production activities to new contract manufacturers, which were recorded in earnings from discontinued operations.

Quarterly Adjusted EBITDA from Continuing Operations

The following table presents quarterly segment operating income/loss and adjusted EBITDA from continuing operations.

	Fiscal 2020
	First		Second		Third		Fourth		Full
	Quarter		Quarter		Quarter		Quarter		Year
	$		$		$		$		$
Loss from continuing operations	(3,964	)	(5,133	)	(3,875	)	(34,330	)	(47,302	)
Provision for (recovery of) income taxes	(1,497	)	(1,821	)	(1,441	)	2,019		(2,740	)
Loss on retirement of debt	–		–		–		8,915		8,915
Interest expense, net	7,665		7,413		7,359		7,605		30,042
Other expense (income), net	555		(835	)	1,069		22,604		23,393
Total segment operating income (loss)	2,759		(376	)	3,112		6,813		12,308
Depreciation and amortization	7,725		7,655		7,513		7,415		30,308
Stock-based compensation	2,670		2,215		3,435		4,250		12,570
Costs related to Value Creation Plan	527		456		120		546		1,649
Plant expansion costs	–		92		245		1,546		1,883
Adjusted EBITDA	13,681		10,042		14,425		20,570		58,718

	Fiscal 2019
	First		Second		Third		Fourth		Full
	Quarter		Quarter		Quarter		Quarter		Year
	$		$		$		$		$
Earnings (loss) from continuing operations	19,757		(12,380	)	(13,714	)	(6,743	)	(13,080	)
Provision for (recovery of) income taxes	7,495		(3,283	)	(5,961	)	(1,352	)	(3,101	)
Interest expense, net	8,520		7,697		8,289		8,259		32,765
Other expense (income), net	(43,511	)	419		3,106		(653	)	(40,639	)
Total segment operating loss	(7,739	)	(7,547	)	(8,280	)	(489	)	(24,055	)
Depreciation and amortization	7,128		7,017		7,347		7,774		29,266
Stock-based compensation	1,632		2,702		3,044		3,093		10,471
Costs related to Value Creation Plan	203		954		1,615		784		3,556
Plant expansion costs	–		311		–		–		311
Adjusted EBITDA	1,224		3,437		3,726		11,162		19,549

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005345/en/

Reed Anderson

ICR

646-277-1260

[email protected]

KEYWORDS: Minnesota United States North America Canada

INDUSTRY KEYWORDS: Retail Health Agriculture Supermarket Fitness & Nutrition Natural Resources Food/Beverage

MEDIA:

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March 3, 2021 7:33 am

Dollar Tree, Inc. Reports Results for the Fourth Quarter and Fiscal Year 2020

Dollar Tree, Inc. Reports Results for the Fourth Quarter and Fiscal Year 2020

~ Diluted Earnings per Share Increased 310% to $2.13 vs. $0.52 ~

~ Consolidated Net Sales Increased 7.2% to $6.77 Billion ~

~ Same-Store Sales: Enterprise +4.9%; Family Dollar +8.1%; Dollar Tree +2.4% ~

~ Introduces Combination Store Concept, Comprised of Both Brands, to Serve Small Towns ~

~ Board of Directors Increases Share Repurchase Authorization by $2.0 Billion ~

CHESAPEAKE, Va.–(BUSINESS WIRE)–
Dollar Tree, Inc. (NASDAQ: DLTR) today reported financial results for its fourth quarter and fiscal year ended January 30, 2021. Also, on March 2, 2021, Dollar Tree’s Board of Directors increased the Company’s share repurchase authorization by $2.0 billion. Under the authorization, purchases may be made in the open market or through privately negotiated transactions subject to market and other conditions. The authorization has no expiration date.

“I am very pleased with the team’s operating performance for the fourth quarter, highlighted by a solid same-store sales increase, improved gross margin and expense leverage,” stated Michael Witynski, President and Chief Executive Officer. “Furthermore, Dollar Tree has completed the rollout of the expanded Crafter’s Square assortment to all U.S. stores and has begun the expansion of our Dollar Tree Plus! initiative to a total of 500 stores, as announced last quarter. At Family Dollar, we have partnered nationally with Instacart, are continuing to see strong results from our H2 stores, and we are thrilled to introduce a new Combination Store format that performed extremely well in nearly 50 small towns and rural communities during fiscal 2020.”

Fourth Quarter Results

Consolidated net sales increased 7.2% to $6.77 billion from $6.32 billion in the prior year’s fourth quarter. Enterprise same-store sales increased 4.9% on a constant currency basis (or 5.0% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for Family Dollar increased 8.1%. Dollar Tree same-store sales increased 2.4%.

Gross profit increased 9.8% to $2.15 billion in the quarter compared to the prior year’s fourth quarter. Gross margin was 31.8%, compared to 31.0% in the prior year’s quarter. The 80 basis point improvement was driven by sales mix, reduced markdowns, leverage on occupancy costs from strong same-store sales, and shrink results, partially offset by higher freight and distribution costs.

Selling, general and administrative expenses were 21.7% of net sales, compared to 27.1% of net sales in the prior year’s fourth quarter. The prior year’s quarter included a $313.0 million non-cash pre-tax and after-tax goodwill impairment charge and an $18.0 million charge to the litigation reserve. Excluding these items from the prior year’s quarter, selling, general and administrative expenses improved 20 basis points from the adjusted 21.9% of net sales. The improvement was driven by expense leverage from stronger same-store sales, partially offset by COVID-19 costs of $17.2 million, or 25 basis points, related to payroll, field management bonuses and store cleaning/PPE supplies.

Operating income for the quarter improved 173% to $681.6 million, compared with $249.4 million in the same period last year and operating income margin was 10.1%, compared to 3.9% in the prior year’s quarter. Excluding the goodwill impairment charge and the charge to the litigation reserve from the prior year’s quarter, operating income margin improved 90 basis points from the adjusted 9.2%. The fourth quarter of 2020 included total incremental operating costs of $24.8 million, or $0.08 per diluted share, for COVID-19-related expenses. These incremental costs by segment were $13.8 million for Dollar Tree, $10.6 million for Family Dollar and $0.4 million for Corporate, Support and Other.

Net income in the fourth quarter was $502.8 million and diluted earnings per share increased 310% to $2.13, compared to $0.52 in the prior year’s quarter. The fourth quarter of fiscal 2019 included several discrete charges outlined in the Reconciliation of Non-GAAP Financial Measures within the tables of this earnings release. Excluding the discrete charges, diluted earnings per share increased 19.0%, compared to the adjusted $1.79.

The Company repurchased 1,828,174 shares during the quarter for $200 million. Following a $2.0 billion increase in its share repurchase authorization, combined with $400 million remaining on its prior authorization, the Company now has a $2.4 billion share repurchase authorization.

During the quarter, the Company opened 124 new stores, expanded or relocated 11 stores, and closed 45 stores. Additionally, the Company completed 106 Family Dollar store renovations. Retail selling square footage at year-end was approximately 125.1 million square feet.

Full Year Fiscal 2020 Results

Consolidated net sales increased 8.0% to $25.51 billion from $23.61 billion in the prior year. Enterprise same-store sales increased 6.1% on a constant currency basis (or 6.0% when adjusted to include the impact of Canadian currency fluctuations), when compared to the prior year. Same-store sales for Family Dollar increased 10.5%. Dollar Tree same-store sales increased 2.2%.

Gross profit increased 10.6% to $7.79 billion. Gross margin improved 70 basis points to 30.5%, compared to 29.8% in the prior year. Fiscal 2020 included $36.3 million, or 15 basis points, related to COVID-19 costs.

Selling, general and administrative expenses were 23.1% of net sales, compared to 24.5% of net sales in 2019. Excluding the $313.0 million goodwill impairment charge and the $18.0 million charge to the litigation reserve from the prior year, selling, general and administrative expenses were unchanged when compared to the adjusted 23.1% of net sales. Fiscal 2020 included $242.8 million, or 1.0% of net sales, in COVID-19-related costs.

Operating income for the year improved 49.6% to $1.89 billion, compared with $1.26 billion in the prior year and operating income margin was 7.4%, compared to 5.3% for fiscal 2019. Excluding the goodwill impairment charge, the charge to the litigation reserve and $6.7 million in accelerated rent from the prior year, operating income margin improved 60 basis points from the adjusted 6.8% of net sales. Fiscal 2020 included total incremental operating costs of $279 million, or $0.90 per diluted share, for COVID-19-related expenses. These incremental costs by segment were $161.1 million for Dollar Tree, $115.5 million for Family Dollar and $2.4 million for Corporate, Support and Other.

Net income for fiscal 2020 was $1.34 billion and diluted earnings per share increased 62.8% to $5.65, compared to $3.47 in the prior year. Fiscal 2019 included a number of discrete charges outlined in the Reconciliation of Non-GAAP Financial Measures within the tables of this earnings release. Excluding the discrete charges, diluted earnings per share increased 18.7%, compared to the adjusted $4.76.

In fiscal 2020, the Company repurchased 3,982,478 shares for $400 million.

New Combination Store Format Introduced for Small Towns

The combination of Dollar Tree and Family Dollar affords the Company a transformational opportunity to serve more customers in all types of markets. Bringing together both the Dollar Tree and Family Dollar brands, the Company has developed a Combination Store to serve small towns across the country. The Company is combining Family Dollar’s great value and assortment with Dollar Tree’s “thrill of the hunt” and fixed price-point – creating a new strategic store format targeted for small towns and rural communities with populations of 3,000 to 4,000. These are markets where the Company would traditionally not open a Dollar Tree store alone.

The Company opened its first Combination Store in late 2019, followed by two additional test stores in early 2020. Closely analyzing the store performance and customer feedback, and utilizing its learnings, the Company refined the concept. Between July 2020 and calendar year-end, the Company opened 32 additional Combination Stores, and is currently operating nearly 50 of these stores.

Compared to other Family Dollar stores located in small markets, these Combination Stores are delivering a same-store sales lift of greater than 20% on average. The Combination Stores are more productive, delivering higher gross margins and are better leveraging store expenses. H2 stores and Combination Stores will both be part of the Family Dollar new store and renovation strategy moving forward.

A three-minute video, along with photos, introducing the new Combination Stores can be viewed at: www.FamilyDollar.com/ComboStores.

“We are extremely pleased with our customers’ response to the new Combination Store concept. As I have said in the past, we will continue to refine our strategic store formats so that we are able to better serve customers, while improving store productivity, margins and returns,” added Witynski. “We want formats that leverage the best of the Dollar Tree and Family Dollar brands to serve customers in all types of geographic markets. We believe we can continue to change, evolve and improve.”

Company Outlook and Liquidity

Due to expectation of continued volatility and uncertainty related to the COVID-19 pandemic and other macroeconomic factors, the Company is not issuing updated sales and earnings guidance at this time.

At the end of fiscal 2020, the Company paid off a $300 million legacy Family Dollar note. Outstanding debt, as of January 30, 2021 was $3.25 billion. The Company ended fiscal 2020 with $1.4 billion in cash and cash equivalents on its balance sheet and expects capital expenditures for fiscal 2021 will total approximately $1.2 billion. A majority of the excess cash flow generated may be dedicated to share repurchases under the Company’s $2.4 billion authorization.

For fiscal 2021, the Company plans to open 600 new stores and to renovate 1,250 Family Dollar stores. The new stores are expected to consist of 400 Dollar Tree stores and 200 Family Dollar stores. The new Family Dollar stores will be comprised of H2 and Combination Store formats, based upon market locations.

“Our teams worked incredibly hard throughout the unique and challenging environment presented to us in fiscal 2020. I could not be more proud of our teams’ commitment, dedication and focus,” Witynski concluded. “As we look ahead, we believe our proven strategic store formats, accelerated store growth plan, 1,250 planned store renovations for the year, several key sales- and traffic-driving initiatives, and a robust balance sheet will enable us to deliver long-term value for each of our stakeholders – customers, associates, suppliers, and shareholders.”

Conference Call Information

On Wednesday, March 3, 2021, the Company will host a conference call to discuss its earnings results at 9:00 a.m. Eastern Time. The telephone number for the call is 866-548-4713. A recorded version of the call will be available until midnight Tuesday, March 9, 2021, and may be accessed by dialing 888-203-1112. The access code is 6657361. A webcast of the call is accessible through Dollar Tree’s website and will remain online through Tuesday, March 9, 2021.

Dollar Tree, a Fortune 200 Company, operated 15,685 stores across 48 states and five Canadian provinces as of January 30, 2021. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada. To learn more about the Company, visit www.DollarTree.com.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “believe”, “anticipate”, “expect”, “intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”, “should”, “predict”, “possible”, “potential”, “continue”, “strategy”, and similar expressions. For example, our forward-looking statements include statements regarding our expectations of continued volatility and uncertainty related to the COVID-19 pandemic; our plans relating to new store openings; our expectations regarding capital expenditures and share repurchases for fiscal 2021; our plans and expectations concerning various store format initiatives, including our new Combination Stores and Family Dollar H2 renovations; the expansion of our Dollar Tree Plus! initiative; our plans and expectations regarding the development of additional new strategic store formats; and our other plans, objectives, expectations (financial and otherwise) and intentions. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the “Risk Factors,” “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K filed March 20, 2020, our Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

DOLLAR TREE, INC.
Condensed Consolidated Income Statements
(In millions, except per share data)

	13 Weeks Ended						Year Ended
	January 30, 2021			February 1, 2020			January 30, 2021			February 1, 2020
	(Unaudited)			(Unaudited)			(Unaudited)

Net sales	$	6,767.9		$	6,315.3		$	25,509.3		$	23,610.8

Cost of sales		4,615.1			4,354.8			17,721.0			16,570.1

Gross profit		2,152.8			1,960.5			7,788.3			7,040.7
		31.8	%		31.0	%		30.5	%		29.8	%

Selling, general & administrative expenses, excluding Goodwill impairment		1,471.2			1,398.1			5,900.4			5,465.5
		21.7	%		22.1	%		23.1	%		23.2	%

Goodwill impairment		–			313.0			–			313.0
		–	%		5.0	%		–	%		1.3	%

Selling, general & administrative expenses		1,471.2			1,711.1			5,900.4			5,778.5
		21.7	%		27.1	%		23.1	%		24.5	%

Operating income		681.6			249.4			1,887.9			1,262.2
		10.1	%		3.9	%		7.4	%		5.3	%

Interest expense, net		34.2			39.2			147.3			162.1
Other expense, net		–			0.7			0.8			1.4

Income before income taxes		647.4			209.5			1,739.8			1,098.7
		9.6	%		3.3	%		6.8	%		4.7	%

Provision for income taxes		144.6			86.5			397.9			271.7
Income tax rate		22.3	%		41.3	%		22.9	%		24.7	%

Net income	$	502.8		$	123.0		$	1,341.9		$	827.0
		7.4	%		1.9	%		5.3	%		3.5	%

Net earnings per share:
Basic	$	2.14		$	0.52		$	5.68		$	3.49
Weighted average number of shares		234.6			236.7			236.4			237.2

Diluted	$	2.13		$	0.52		$	5.65		$	3.47
Weighted average number of shares		235.9			237.5			237.3			238.3

The information for the year ended February 1, 2020 was derived from the audited consolidated financial statements as of that date.

DOLLAR TREE, INC.

Reconciliation of Non-GAAP Financial Measures

(In millions, except per share data)

(Unaudited)

From time-to-time, the Company’s financial results include certain financial measures not derived in accordance with generally accepted accounting principles (“GAAP”). Non-GAAP financial measures should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purposes of analyzing operating performance, financial position or cash flows. However, the Company believes providing additional information in the form of non-GAAP measures that exclude the unusual, non-recurring expenses outlined below is beneficial to the users of its financial statements in evaluating the Company’s current operating results in relation to past periods. In addition, the Company’s debt covenants exclude the impact of certain unusual, non-recurring expenses. The Company has included a reconciliation of this information to the most comparable GAAP measures in the following tables.

On February 3, 2019, the Company adopted Financial Accounting Standards Board Accounting Standards Update No. 2016-02, “Leases (Topic 842)” and subsequent amendments (“ASC 842”) which requires lessees to recognize right-of-use assets on the balance sheet. The Company did not elect the hindsight practical expedient; therefore, the adoption also resulted in the recognition of an estimate of the embedded impairment of right-of-use assets as a reduction to Retained earnings. In March 2019, the Company announced a store optimization program which included the closing of up to 390 under-performing stores in 2019. Under ASC 842, the right-of-use assets must be amortized over the remaining operating terms which resulted in the acceleration of rent expense for the stores that the Company plans to close. The accelerated rent expense net of the rent foregone as a result of the embedded lease impairment was $6.7 million and this amount will be excluded in calculating the Company’s compliance with its debt covenants, which requires reporting in accordance with GAAP as of the date of the Credit Agreement.

In the fourth quarter of 2019 the Company performed a goodwill impairment test which reflected that the fair value of the Family Dollar business was lower than the carrying value resulting in a $313.0 million non-cash pre-tax and after-tax goodwill impairment charge.

In the fourth quarter of 2019, the Company recorded an $18.0 million charge to its litigation reserve.

In the fourth quarter of 2019, the Company evaluated its foreign net operating loss carryforwards and determined that it expects to utilize the carryforwards for which the Company previously had provided a valuation allowance. The effect of the reduction of the valuation allowance is $24.6 million.

Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings per Share (EPS)
	13 Weeks Ended					Year Ended
	January 30, 2021		February 1, 2020			January 30, 2021		February 1, 2020
Net income (GAAP)	$	502.8	$	123.0		$	1,341.9	$	827.0
Gross profit adjustment:
Accelerated rent expense		–		–			–		6.7
SG&A adjustments:
Goodwill impairment		–		313.0			–		313.0
Litigation reserve		–		18.0			–		18.0
Interest expense adjustment:
Deferred financing costs acceleration		–		0.3			–		0.3
Total adjustments		–		331.3			–		338.0
Provision for income taxes on adjustments		–		(4.4	)		–		(6.0	)
Valuation allowance reversal		–		(24.6	)		–		(24.6	)
Adjusted Net income (Non-GAAP)	$	502.8	$	425.3		$	1,341.9	$	1,134.4

Diluted earnings per share (GAAP)	$	2.13	$	0.52		$	5.65	$	3.47
Valuation allowance reversal and Adjustments, net of tax		–		1.27			–		1.29
Adjusted Diluted EPS (Non-GAAP)	$	2.13	$	1.79		$	5.65	$	4.76


Reconciliation of Adjusted Operating Income
	13 Weeks Ended					Year Ended
	January 30, 2021		February 1, 2020			January 30, 2021		February 1, 2020
Operating income (GAAP)	$	681.6	$	249.4		$	1,887.9	$	1,262.2
Gross profit adjustment:
Accelerated rent expense		–		–			–		6.7
SG&A adjustments:
Goodwill impairment		–		313.0			–		313.0
Litigation reserve		–		18.0			–		18.0
Total adjustments		–		331.0			–		337.7
Adjusted Operating income (Non-GAAP)	$	681.6	$	580.4		$	1,887.9	$	1,599.9

Reconciliation of Adjusted Operating Income – Dollar Tree Segment
	13 Weeks Ended					Year Ended
	January 30, 2021		February 1, 2020			January 30, 2021		February 1, 2020
Operating income (GAAP)	$	591.5	$	564.3		$	1,598.0	$	1,670.2
SG&A adjustment:
Litigation reserve		–		3.6			–		3.6
Adjusted Operating income (Non-GAAP)	$	591.5	$	567.9		$	1,598.0	$	1,673.8

Reconciliation of Adjusted Operating Income – Family Dollar Segment
	13 Weeks Ended					Year Ended
	January 30, 2021		February 1, 2020			January 30, 2021		February 1, 2020
Operating income (loss) (GAAP)	$	183.6	$	(238.9	)	$	655.6	$	(74.9	)
Gross profit adjustment:
Accelerated rent expense		–		–			–		6.7
SG&A adjustments:
Goodwill impairment		–		313.0			–		313.0
Litigation reserve		–		14.4			–		14.4
Total adjustments		–		327.4			–		334.1
Adjusted Operating income (Non-GAAP)	$	183.6	$	88.5		$	655.6	$	259.2

DOLLAR TREE, INC.
Segment Information
(In millions, except store count)

	13 Weeks Ended										Year Ended
	January 30, 2021					February 1, 2020					January 30, 2021					February 1, 2020
	(Unaudited)					(Unaudited)					(Unaudited)					(a)

Net sales:
Dollar Tree	$	3,707.4				$	3,516.5				$	13,265.0				$	12,507.9
Family Dollar		3,059.9					2,798.8					12,243.4					11,102.9
Corporate, support and Other (b)		0.6					–					0.9					–
Total net sales	$	6,767.9				$	6,315.3				$	25,509.3				$	23,610.8

Gross profit:
Dollar Tree	$	1,337.0		36.1	%	$	1,272.2		36.2	%	$	4,543.8		34.3	%	$	4,342.9		34.7	%
Family Dollar		815.2		26.6	%		688.3		24.6	%		3,243.6		26.5	%		2,697.8		24.3	%
Corporate, support and Other (b)		0.6		100.0	%		–		–	%		0.9		100.0	%		–		–	%
Total gross profit	$	2,152.8		31.8	%	$	1,960.5		31.0	%	$	7,788.3		30.5	%	$	7,040.7		29.8	%

Operating income (loss):
Dollar Tree	$	591.5		16.0	%	$	564.3		16.0	%	$	1,598.0		12.0	%	$	1,670.2		13.4	%
Family Dollar		183.6		6.0	%		(238.9	)	(8.5	%)		655.6		5.4	%		(74.9	)	(0.7	%)
Corporate, support and Other (b)		(93.5	)	(1.4	%)		(76.0	)	(1.2	%)		(365.7	)	(1.4	%)		(333.1	)	(1.4	%)
Total operating income	$	681.6		10.1	%	$	249.4		3.9	%	$	1,887.9		7.4	%	$	1,262.2		5.3	%


	13 Weeks Ended															Year Ended
	January 30, 2021								February 1, 2020							January 30, 2021							February 1, 2020
	Dollar Tree			Family Dollar		Total			Dollar Tree		Family Dollar			Total		Dollar Tree			Family Dollar		Total		Dollar Tree		Family Dollar		Total
Store Count:
Beginning		7,741		7,865			15,606		7,447			7,815		15,262			7,505		7,783		15,288		7,001		8,236		15,237
New stores		79		45			124		62			50		112			341		156		497		348		170		518
Re-bannered stores (c)		(1	)	1			–		10			(1	)	9			(4	)	5		1		200		(200	)	–
Closings		(14	)	(31	)		(45	)	(14	)		(81	)	(95	)		(37	)	(64	)	(101	)	(44	)	(423	)	(467	)
Ending		7,805		7,880			15,685		7,505			7,783		15,288			7,805		7,880		15,685		7,505		7,783		15,288
Selling Square Footage (in millions)		67.4		57.7			125.1		64.6			56.7		121.3			67.4		57.7		125.1		64.6		56.7		121.3
Growth Rate (Square Footage)		4.3	%	1.8	%		3.1	%	7.1	%		(5.2	%)	1.0	%		4.3	%	1.8	%	3.1	%	7.1	%	(5.2	%)	1.0	%

(a) The information for the year ended February 1, 2020 was derived from the audited consolidated financial statements as of that date.
(b) Corporate, support and Other revenue consists of rental income from our Summit Pointe property.
(c) Stores are included as re-banners when they close or open, respectively.

DOLLAR TREE, INC.
Condensed Consolidated Balance Sheets
(In millions)

	January 30,		February 1,
	2021		2020
	(Unaudited)

Cash and cash equivalents	$	1,416.7	$	539.2
Merchandise inventories		3,427.0		3,522.0
Other current assets		207.1		208.2
Total current assets		5,050.8		4,269.4

Property, plant and equipment, net		4,116.3		3,881.8
Restricted cash		46.9		46.8
Operating lease right-of-use assets		6,324.1		6,225.0
Goodwill		1,984.4		1,983.3
Trade name intangible asset		3,100.0		3,100.0
Deferred tax asset		23.2		24.4
Other assets		50.3		43.9

Total assets	$	20,696.0	$	19,574.6


Current portion of long-term debt	$	–	$	250.0
Current portion of operating lease liabilities		1,348.2		1,279.3
Accounts payable		1,480.5		1,336.5
Income taxes payable		86.3		62.7
Other current liabilities		815.3		618.0
Total current liabilities		3,730.3		3,546.5

Long-term debt, net, excluding current portion		3,226.2		3,522.2
Operating lease liabilities, long-term		5,065.5		4,979.5
Deferred income taxes, net		1,013.5		984.7
Income taxes payable, long-term		22.6		28.9
Other liabilities		352.6		258.0

Total liabilities		13,410.7		13,319.8

Shareholders’ equity		7,285.3		6,254.8

Total liabilities and shareholders’ equity	$	20,696.0	$	19,574.6


The February 1, 2020 information was derived from the audited consolidated financial statements as of that date.

DOLLAR TREE, INC.
Condensed Consolidated Statements of Cash Flows
(In millions)

	Year Ended
	January 30,			February 1,
	2021			2020
	(Unaudited)

Cash flows from operating activities:
Net income	$	1,341.9		$	827.0
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill impairment		–			313.0
Depreciation and amortization		686.6			645.4
Provision for deferred income taxes		30.7			9.1
Stock-based compensation expense		83.9			61.4
Amortization of debt discount and debt-issuance costs		4.0			6.9
Other non-cash adjustments to net income		19.0			24.5
Changes in operating assets and liabilities		550.2			(17.5	)
Total adjustments		1,374.4			1,042.8
Net cash provided by operating activities		2,716.3			1,869.8

Cash flows from investing activities:
Capital expenditures		(898.8	)		(1,034.8	)
Proceeds from governmental grant		–			16.5
Proceeds from (payments for) fixed asset disposition		9.1			(1.9	)
Net cash used in investing activities		(889.7	)		(1,020.2	)

Cash flows from financing activities:
Principal payments for long-term debt		(550.0	)		(500.0	)
Proceeds from revolving credit facility		750.0			–
Repayments of revolving credit facility		(750.0	)		–
Proceeds from stock issued pursuant to stock-based compensation plans		17.0			15.2
Cash paid for taxes on exercises/vesting of stock-based compensation		(16.9	)		(25.0	)
Payments for repurchase of stock		(400.0	)		(200.0	)
Net cash used in financing activities		(949.9	)		(709.8	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		0.9			(0.5	)
Net increase in cash, cash equivalents and restricted cash		877.6			139.3
Cash, cash equivalents and restricted cash at beginning of period		586.0			446.7
Cash, cash equivalents and restricted cash at end of period	$	1,463.6		$	586.0


The February 1, 2020 information was derived from the audited consolidated financial statements as of that date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005314/en/

Dollar Tree, Inc.

Randy Guiler, 757-321-5284

Vice President, Investor Relations

www.DollarTree.com

DLTR-E

KEYWORDS: United States North America District of Columbia Virginia

INDUSTRY KEYWORDS: Discount/Variety Retail

MEDIA:

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March 3, 2021 7:33 am

Repligen Corporation to Present at Barclays Global Healthcare Conference

WALTHAM, Mass., March 03, 2021 (GLOBE NEWSWIRE) — Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today announced that it will present virtually at the Barclays Global Healthcare Conference being held March 9-11. Jon Snodgres, Chief Financial Officer, will participate in a fireside chat on Wednesday, March 10, at 1:50 p.m. EST.

A live webcast of the discussion will be accessible through the Investor Relations section of the Company’s website, and will be available for replay for a limited period of time following the conference event.

About Repligen Corporation

Repligen Corporation is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems that increase efficiencies in the process of manufacturing biological drugs. Our primary customers are biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide. Our corporate headquarters are located in Waltham, Massachusetts, with additional administrative and manufacturing operations worldwide. The majority of our manufacturing sites are located within the U.S. (California, Massachusetts, New Jersey and New York), and outside of the U.S. we have sites in Estonia, Germany, Ireland, the Netherlands and Sweden.

Repligen Contact:

Sondra S. Newman
Global Head of Investor Relations
(781) 419-1881
[email protected]

March 3, 2021 7:33 am

Coty to Partner With LanzaTech to Pioneer New Sustainable Fragrance Production

Coty to Partner With LanzaTech to Pioneer New Sustainable Fragrance Production

Fragrance products to contain sustainable ethanol, created using carbon-capture technology
Coty targets majority of fragrance portfolio using carbon-captured ethanol by 2023
Planned partnership supports Coty’s ‘Beauty That Lasts’ sustainability program

NEW YORK–(BUSINESS WIRE)–
Coty Inc. (NYSE: COTY), one of the world’s largest beauty companies and the global leader in fragrances, today announced it has signed a letter of intent to partnerwith LanzaTech to introduce sustainable ethanol made from captured-carbon emissions into its fragrance products.

LanzaTech, a leader in the production of next generation green and sustainable ingredients, captures industrial emissions (such as carbon monoxide and carbon dioxide produced in steel manufacturing) and processes the waste gases into a new, more sustainable source of ethanol. Coty’s scientists have worked alongside LanzaTech and production partners over the past two years to develop a high-purity sustainable ethanol that is suitable for use in fragrances. The proposed partnership means that Coty will incorporate this carbon-captured ethanol into its fragrance manufacturing process, with the goal of having the majority of its fragrance portfolio using ethanol sourced from carbon-capture by 2023.

Sue Y. Nabi, Chief Executive Officer of Coty, said:

“Sustainability is the ultimate driver of innovation and Coty is focused on creating outstanding products that are truly clean and green. Ethanol is the number one ingredient purchased for the fragrance category and over time this partnership with LanzaTech will significantly reduce the environmental impact of our products. It’s not only the right thing to do, but it makes commercial sense too – with today’s consumer rightly demanding that their favourite brands share their commitment to sustainability.”

Ethanol is a core ingredient in fragrance products, enabling the efficient dispersion of the scent. Coty fragrances contain ethanol sourced from a range of natural raw materials – including sugar cane and sugar beet, which use land, water and fertilizers. This new sustainable ethanol from carbon-capture utilizes near-zero water consumption and reduces the requirement for agricultural land which, in turn, supports biodiversity. Working with the independent sustainability consultancy Quantis, Coty has conducted a screening life cycle assessment which shows a significantly reduced overall environment impact.

Jennifer Holmgren, Chief Executive Officer of LanzaTech, said:

“Addressing our climate challenge requires collaboration across multiple sectors. We are proud to be developing this partnership with Coty to show that carbon recycling can enable sustainable production of fragrances. Single use carbon must be a thing of the past and this project exemplifies our vision of a CarbonSmart future where consumers are able to choose products made from recycled carbon.”

The proposed partnership with LanzaTech is an important step for Coty as it continues its journey to becoming a more circular business and creating a more sustainable and inclusive world. Coty’s ambitious ‘Beauty That Lasts’ strategy – which isguided by the United Nations Sustainable Development Goals (SDGs) – sets out a range of time-bound targets, including a 30% reduction in absolute CO2e emissions by 2030.

About Coty Inc.

Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, and skin and body care. Coty is the global leader in fragrance and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. For additional information about Coty Inc., please visit www.coty.com.

About LanzaTech

LanzaTech is turning our global carbon crisis into a feedstock opportunity with the potential to displace 30% of crude oil use today and reduce global CO2 emissions by 10%. By recycling carbon from industrial off-gases; syngas generated from any biomass resource and reformed biogas, LanzaTech can reduce emissions and make new products for a circular carbon economy. LanzaTech’s carbon recycling technology is like retrofitting a brewery onto an emission source like a steel mill, but instead of using sugars and yeast to make beer, pollution is converted by bacteria to fuels and chemicals! Imagine a day when your plane is powered by recycled GHG emissions, when your yoga pants started life as pollution from a steel mill. This future is possible using LanzaTech technology. Founded in New Zealand, LanzaTech is based in Illinois, USA and employs more than 200 people. Further information is available at www.lanzatech.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005157/en/

Investor Relations

Olga Levinzon, +1 212 389 7733

[email protected]

Media – for Coty

Antonia Werther, +31202999077

[email protected]

Media – for LanzaTech

Freya Burton, +1 630 347 8054

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Fashion Environment Cosmetics Retail Specialty

MEDIA:

Posted on March 3, 2021 7:33 am
Aramark to Participate in Upcoming Bank of America Investor Conference

Aramark to Participate in Upcoming Bank of America Investor Conference

PHILADELPHIA–(BUSINESS WIRE)–
Aramark (NYSE:ARMK), a global leader in food, facilities management and uniforms, announced that the Company’s Chief Executive Officer, John Zillmer, and Chief Financial Officer, Tom Ondrof, will participate in the virtual Bank of America Consumer and Retail Technology Conference on Wednesday, March 10^th, 2021 with a featured Fireside Chat session beginning at 8:30 a.m. ET.

A live webcast and replay of the Fireside Chat session will be available through the Investor Relations section of the Aramark website at www.aramark.com.

About Aramark

Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world. We deliver innovative experiences and services in food, facilities management and uniforms to millions of people every day. We strive to create a better world by making a positive impact on people and the planet, including commitments to engage our employees; empower healthy consumers; build local communities; source ethically, inclusively and responsibly; operate efficiently and reduce waste. Aramark is recognized as a Best Place to Work by the Human Rights Campaign (LGBTQ+), DiversityInc, Equal Employment Publications and the Disability Equality Index. Learn more at www.aramark.com or connect with us on Facebook and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005128/en/

Inquiries

Felise Kissell (215) 409-7287

[email protected]

Scott Sullivan (215) 238-3953

[email protected]

KEYWORDS: United States North America Pennsylvania

INDUSTRY KEYWORDS: Food/Beverage Other Retail Retail Professional Services Other Professional Services

MEDIA:

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Posted on March 3, 2021 7:28 am
Anghami, the leading music streaming platform in the Middle East and North Africa, to merge with Vistas Media Acquisition Company Inc. to become first Arab technology company to list on NASDAQ New York

Anghami will become the first Arab technology company to list on NASDAQ New York
via a merger with Vistas Media Acquisition Company Inc. (NASDAQ: VMAC), a publicly traded special purpose acquisition company that raised $100 million in its August 2020 initial public offering.

The transaction implies an initial pro-forma enterprise valuation of approximately $220 million, or 2.5x 2022 estimated revenues.

The transaction is expected to close in Q2 of 2021.

SHUAA Capital psc.
(DFM: SHUAA), the UAE’s premier publicly listed asset management and investment banking firm and Vistas Media Capital Singapore, the parent of the sponsor for Vistas Media Acquisition Company Inc., have gathered commitments of a combined $40 million ($30 million from SHUAA and $10 million from Vistas Media Capital) in PIPE financing. SHUAA also led a funding round for Anghami earlier in the year.

Anghami, headquartered in Abu Dhabi, UAE, is currently backed by leading MENA venture capital firms and strategic shareholders, including media groups and telecommunications companies that collectively own approximately 68% of Anghami, with the balance owned by the founders.

Anghami is a high growth digital media entertainment technology company, collecting over 56 million data points on its users daily.
Anghami uses artificial intelligence and machine learning to improve recommendations, reduce churn, drive engagement and predict user behavior.

Founded in 2012, Anghami is the first music-streaming platform in the Middle East and North Africa (MENA) and has since built a market-leading platform, offering more than 5
7 million songs to more than 70 million registered users with around
1 billion streams per month.

Anghami has grown revenues 80% over the last three years and is expected to increase five-fold over the next three years. The
Company expects to have approximately $142 million of cash on its balance sheet at closing to be used primarily to fuel additional growth.

NEW YORK, N.Y., March 03, 2021 (GLOBE NEWSWIRE) — Anghami Inc. (“Anghami” or the “Company”), the leading music streaming platform and service in the Middle East and North Africa and Vistas Media Acquisition Company Inc. (NASDAQ: VMAC), a publicly traded special purpose acquisition company led by CEO F. Jacob Cherian and co-founders Saurabh Gupta and Abhayanand Singh, announced that they have entered into a definitive merger agreement that will result in Anghami becoming the first Arab technology company to list on NASDAQ. The transaction implies a pro-forma enterprise value of $220 million. The combined company will operate under the Anghami name and will trade under the new symbol “ANGH.” The transaction is expected to close in Q2 of 2021.

Anghami Overview

Founded in 2012, by Eddy Maroun and Elie Habib, Anghami is the first music-streaming platform in the MENA region. Anghami has built a market-leading platform, offering more than 57 million songs to more than 70 million registered users with around 1 billion streams per month. With an Arabic speaking population of over 450 million globally, a listing on NASDAQ allows Anghami to scale its user base and invest in technology to build on its data play.

Anghami’s AI and machine learning algorithms process over 56 million data points from its user base every day. Over nine years of user data enables the Company to predict user behavior and trends to focus its investments in areas delivering the highest return on investment – which helps improve monetization – and will continue to be a key driver of revenues going forward.

The Company has long standing partnerships with all major global labels including Universal Music Group, Sony Music and Warner Music Group. Anghami is a music app and platform that offers listeners in the MENA region unlimited Arabic and international music to stream and download. Anghami has licensing agreements with thousands of independent labels and distributors to provide users with legal access to a vast catalog of music. Anghami has a physical presence in major countries in the MENA region to establish and maintain strong partnerships with labels, creators, brands and telecommunication companies. In addition, the Company has established direct partnerships with 36 telecommunication companies across the MENA region to boost free user acquisitions and facilitate subscriptions achieving the highest paying conversion rate in emerging markets.

The Company is headquartered in Abu Dhabi, at the Abu Dhabi Global Market (“ADGM”), and has offices in Beirut, Dubai, Cairo and Riyadh. It is supported by the Abu Dhabi Investment Office (“ADIO”), the Abu Dhabi government’s investment attraction and development hub, which partnered with Anghami as part of its Innovation Programme, to develop its global headquarters and a technology and R&D center in Abu Dhabi.

The Company’s international head of partnerships is LA-based music industry entrepreneur and manager, Wassim “Sal” Slaiby, the CEO of XO Records (the label which he co-founded with The Weeknd whom he also manages) and of SALXCO, his management firm. Slaiby has been instrumental in formulating international partnerships and strategies to build an international fanbase and bridge the Middle East, North Africa and global markets.

Anghami is currently backed by leading MENA venture capital firms and strategic shareholders, including media groups and telecommunications companies that collectively own approximately 68% of Anghami, with the balance owned by the founders.

Anghami’s proven management team led by co-founder and CEO Eddy Maroun will continue to operate and manage Anghami following the transaction. Co-founder and Chairman Elie Habib will continue as the CTO. F. Jacob Cherian, CEO of Vistas Media Acquisition Company Inc. is expected to join the Company as Co-CEO for a period of one year.

Co-founder and CEO of Anghami, Eddy Maroun, commented, “Today is a very exciting day for all of us at Anghami and our partners globally. Elie and I co-founded the company in 2012 with a vision for Anghami to be a first of its kind, digital media entertainment technology platform in the MENA region. Today, we have taken a significant step forward in our growth plans in seeking to become the region’s first Arab technology company to list on NASDAQ. Being a U.S. listed public company gives us access to growth capital and a global platform that is the best in the world.”

Elie Habib, Co-founder, Chairman and CTO of Anghami, added, “We’re proud of the product and technology we’ve been able to build and now we will have the ability to invest more in R&D and innovate providing a product that goes beyond music to immersive experiences around media and entertainment while remaining relevant to our users and focused on our local edge.”

PIPE & Transaction Overview

SHUAA Capital psc. (DFM: SHUAA), and Singapore based Vistas Media Capital, have gathered commitments of a combined $40 million in a PIPE (SHUAA committed $30 million and Vistas committed $10 million). SHUAA is the UAE’s premier publicly listed asset management and investment banking firm listed on the Dubai Financial Market, with over $14 billion in assets under management.

The Company expects to have approximately $142 million of cash on its balance sheet at closing to be used primarily to fuel additional growth.

The transaction implies an initial pro-forma enterprise valuation of approximately $220 million, or 2.5x 2022 estimated revenues. This compares to Spotify’s current revenue multiple of 6.5x revenue.

Jassim Alseddiqi, Group CEO of SHUAA, stated: “We are delighted to be leading the PIPE for Anghami’s business combination with VMAC in what will accelerate Anghami’s growth and build upon its success as a pioneer in the music streaming space in the Middle East and North Africa. SHUAA led a funding round for Anghami earlier in the year and has been working closely with the team to secure the PIPE investment and deliver a successful listing on NASDAQ. In addition, the enhanced reputation and access to capital that comes with a listing on NASDAQ accelerates the company’s growth journey.”

Sam Barnet, CEO of MBC, the Saudi Arabian media group and one of Anghami’s key shareholders, commented, “MBC is extremely proud of the exceptional team at Anghami and we are honored to be a part of a huge success story for the region. The team has been committed to revolutionizing the Arabic music industry through innovation and the best product in the market.”

Rabih Khoury, Managing Partner of Middle East Venture Partners (“MEVP”), one of the leading Venture Capital Asset Managers in MENA, commented, “As the largest institutional investor in Anghami, we at MEVP are delighted that one more of our top portfolio companies will list on NASDAQ, the leading global market for technology. We have partnered with Eddy and Elie from the outset in 2012 and continuously supported Anghami starting with its seed round and all its subsequent funding rounds. This strong partnership with Anghami has culminated in identifying Vistas as the ideal merger partner. The combination with Vistas will confirm Anghami’s position as a MENA technology leader and will provide the funding for its next phase of growth, establishing Anghami as one of the leading technology platforms.”

His Excellency, Mohammed Ali Al Shorafa Al Hammadi, Chairman of the Abu Dhabi Department of Economic Development stated, “Abu Dhabi is a launchpad for innovators to excel globally. We support investors and companies on every step of their journey. Going public on NASDAQ will enable Anghami to invest in innovation from its Abu Dhabi HQ and accelerate its ambitious international growth plans. It will also establish a template for other companies in Abu Dhabi to realize their full potential by tapping into global capital markets.”

Saurabh Gupta, Co-founder of Vistas Media Acquisition Company Inc. commented, “This is a landmark transaction for the MENA region and for Vistas. As a media and entertainment sector focused SPAC, our objective was to find a high growth company, and back phenomenal entrepreneurs like Eddy and Elie. Anghami is synonymous with the music culture in the MENA region. The combination of Anghami and the Vistas team will be a powerful force in the media and entertainment world, and we couldn’t be prouder of the hard work from everyone to get to this stage; but our work has only just begun.”

Advisors

deNovo acted as financial advisor and Winston & Strawn LLP acted as legal advisor to VMAC and its parent company Vistas Media Capital.

May Nasrallah, Founder and Executive Chairman of deNovo Corporate Advisors who acted as Financial Advisor to Vistas Media Acquisition Company Inc. on the transaction, commented, “We are delighted to see a well-managed, fast growing homegrown technology company from the Middle East like Anghami attract interest from global investors and achieve a NASDAQ listing. We believe this is a precedent setting inaugural transaction from the MENA region that paves the way for others to follow.”

SHUAA Capital acted as financial advisor and global underwriter and Norton Rose Fulbright acted as legal advisor to Anghami and Baker Botts L.L.P. acted as US counsel to SHUAA Capital.

Ends

About Anghami

Anghami is the leading digital music entertainment technology platform in the Middle East and North Africa, with the largest catalog comprising of more than 57 million songs available for more than 70 million users. When it launched in 2012, Anghami was the first music-streaming platform in MENA. In digitizing the region’s music, it has become the best-known and best-loved brand in music streaming in MENA. Today, Anghami features licensed content from leading Arabic labels, independent artists and distributors. Anghami also features music from the major International labels such as Universal, Sony, Warner and is continuously licensing new content.

Headquartered in Abu Dhabi, it has offices in Beirut, Dubai, Cairo and Riyadh and operates in 16 countries across MENA. It is the only service available in English, Arabic and French, and remains close to its customer base, not only thanks to its pan-regional presence but also via the 56 million user data points it generates every day.

To learn more about Anghami, please visit www.anghami.com

About Vistas Media Acquisition Company Inc.

VMAC is a blank check company, also commonly referred to as a Special Purpose Acquisition Company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities in the Global Media and Entertainment sector.

To learn more about Vistas Media Acquisition Company Inc., please visit https://vmac.media.

About SHUAA Capital psc.

SHUAA Capital psc (DFM: SHUAA) is a leading asset management and investment banking platform, with over USD 14 billion in assets under management. SHUAA Capital psc is recognized for its strong track record and pioneering approach to investing through a differentiated, innovative and global product offering focused on public and private markets, debt and real estate.

The asset management segment, one of the region’s largest, manages real estate funds and projects, investment portfolios and funds in the regional equities, fixed income and credit markets; it also provides investment solutions to clients, with a focus on alternative investment strategies. The investment banking segment provides corporate finance advisory, transaction services, private placement, public offerings of equity and debt securities, while also creating market liquidity on OTC fixed income products. The firm is regulated as a financial investment company by the Securities and Commodities Authority.
To learn more about SHUAA Capital, please visit www.shuaa.com

About deNovo Corporate Advisors

deNovo Corporate Advisors, an independent Middle East focused corporate finance advisory firm, acted as Financial Advisor to Vistas Media Acquisition Company Inc. on the transaction.

deNovo Corporate Advisors was founded in 2010 by May Nasrallah, a veteran global banker and previously the Head of Morgan Stanley Investment Banking in the MENA Region. Over the past ten years, deNovo has become a leading independent corporate finance and M&A advisory firm across the MENA region. The highly experienced senior team at deNovo have decades of world-class bulge-bracket pedigree and have been instrumental in the execution of a substantial number of transactions on behalf of our clients throughout the MENA region. deNovo is a trusted advisor to numerous regional corporates, financial institutions, family groups and sovereign wealth funds in pursuing their strategic and financial advisory needs across the MENA region, and to international corporates and financial investors looking to acquire or invest in regional entities.

To learn more about deNovo, please visit www.denovoca.com.

Important Information About the Proposed Business Combination and Where to Find It

The mix of cash and equity paid to existing Anghami investors depends on the amount of cash in trust net of redemptions, the amount of capital raised in the PIPE and the transaction costs. The amount of equity rolled over by existing Anghami investors ranges from 65% (no redemptions and $110 million PIPE) to 95% (full redemptions and $40 million PIPE).

Due to the structure of the transaction, regardless of the redemptions and PIPE proceeds, the enterprise value remains fixed at approximately $220 million.

In connection with the proposed business combination, VMAC intends to file relevant materials with the Securities and Exchange Commission (the “SEC”), including a registration statement on Form S-4, that will include a preliminary proxy statement/prospectus. VMAC’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus and the amendments thereto and the definitive proxy statement/prospectus and documents incorporated by reference therein filed in connection with the proposed business combination, as these materials will contain important information about VMAC, and the proposed business combination. Promptly after filing its definitive proxy statement/prospectus relating to the proposed business combination with the SEC, VMAC will mail the definitive proxy statement/prospectus and a proxy card to each stockholder entitled to vote at the special meeting on the business combination and the other proposals. Stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus, and other relevant materials filed with the SEC that will be incorporated by reference therein, without charge, once available, at the SEC’s website at www.sec.gov, or by visiting the investor relations section of https://vmac.media/.

Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Vistas Media Acquisition Company Inc. with the Securities and Exchange Commission and will be available at www.sec.gov.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Vistas Media Acquisition Company Inc.’s and Anghami’s actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Vistas Media Acquisition Company Inc.’s and Anghami’s expectations with respect to future performance and anticipated financial impacts of the proposed business combination, the satisfaction of the closing conditions to the proposed business combination, and the timing of the completion of the proposed business combination.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Vistas Media Acquisition Company Inc.’s and Anghami’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive merger agreement (the “Agreement”); (2) the outcome of any legal proceedings that may be instituted against Vistas Media Acquisition Company Inc. and Anghami following the announcement of the Agreement and the transactions contemplated therein; (3) the inability to complete the proposed business combination, including due to failure to obtain approval of the stockholders of Vistas Media Acquisition Company Inc. and Anghami, certain regulatory approvals, or satisfy other conditions to closing in the Agreement; (4) the occurrence of any event, change, or other circumstance that could give rise to the termination of the Agreement or could otherwise cause the transaction to fail to close; (5) the impact of COVID-19 on Anghami’s business and/or the ability of the parties to complete the proposed business combination; (6) the inability to obtain or maintain the listing of Vistas Media Acquisition Company Inc.’s shares of common stock on Nasdaq following the proposed business combination; (7) the risk that the proposed business combination disrupts current plans and operations as a result of the announcement and consummation of the proposed business combination; (8) the ability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, competition, the ability of Anghami to grow and manage growth profitably, and retain its key employees; (9) costs related to the proposed business combination; (10) changes in applicable laws or regulations; (11) the possibility that Anghami or Vistas Media Acquisition Company Inc. may be adversely affected by other economic, business, and/or competitive factors; and (12) other risks and uncertainties indicated from time to time in the final prospectus of Vistas Media Acquisition Company Inc. for its initial public offering and the proxy statement/prospectus relating to the proposed business combination, including those under “Risk Factors” therein, and in Vistas Media Acquisition Company Inc.’s other filings with the SEC. Vistas Media Acquisition Company Inc. cautions that the foregoing list of factors is not exclusive. Vistas Media Acquisition Company Inc. cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Vistas Media Acquisition Company Inc. does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

No Offer or Solicitation

This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed business combination. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

Contacts:

Investors:

F. Jacob Cherian, CEO
+1 212- 859-3525

[email protected]

Ashley DeSimone / Jake Pisano
[email protected] / [email protected]

USA Media

Zeba Rashid, ICR
[email protected]

Middle East Media

Sunil John / Sophie McNulty, ASDA’A BCW
[email protected] / [email protected]

Posted on March 3, 2021 7:21 am
Oceana Calls for U.S. Action to End Illegal Fishing & Seafood Fraud

President Biden Urged to Increase Transparency and Traceability of Seafood to Protect American Fishermen, Businesses, Consumers and Oceans

Washington, DC, March 03, 2021 (GLOBE NEWSWIRE) — Today, Oceana published a report making the case for expanding transparency and traceability to end illegal, unreported and unregulated (IUU) fishing and seafood fraud. While the federal government has taken some steps to combat these problems in the past, Oceana says more must be done to ensure that U.S. dollars are not supporting these illicit activities at sea, which can impact the economy, environment and human rights.

“Americans have a right to know more about the seafood they eat and should have confidence that their dollars are not supporting the pillaging of the oceans or human rights abuses at sea,” said Beth Lowell, Oceana’s deputy vice president for U.S. campaigns. “All seafood sold in the U.S. should be safe, legally caught, responsibly sourced and honestly labeled. Until then, honest fishermen, seafood businesses, consumers and the oceans will pay the price.”

According to Oceana, IUU fishing poses one of the greatest threats to our oceans. IUU fishing costs the global seafood industry as much as $26 billion to $50 billion annually. In the United States, up to 90% of the fish consumed is imported, with up to 32% of wild-caught seafood imports being products of illegal or unreported fishing. IUU fishing can include fishing without authorization, ignoring catch limits, operating in closed areas, targeting protected wildlife and fishing with prohibited gear. These illicit activities can destroy essential habitats, severely deplete fish populations and threaten global food security. These actions not only contribute to overfishing, but also give illegal fishermen an unfair advantage over those that play by the rules.

IUU fishing is a low-risk, high-reward activity, especially on the high seas where a fragmented legal framework and lack of effective enforcement allow it to thrive. In 2016, the U.S. government established the Seafood Import Monitoring Program (SIMP), requiring catch documentation and traceability for some seafood at risk of illegal fishing and seafood fraud. SIMP currently only applies to 13 types of imported seafood and only traces them from the boat to the U.S. border. In 2019, Oceana released the results of a seafood fraud investigation, testing popular seafood not covered by SIMP, and found that 1 in every 5 fish tested nationwide was mislabeled, demonstrating that seafood fraud is still a problem in the United States. Seafood fraud ultimately hurts honest fishermen and seafood businesses that play by the rules, masks conservation and health risks of certain species, and cheats consumers who fall victim to a bait–and–switch.

“The Biden-Harris administration has an opportunity to lead in the fight against illegal fishing and seafood fraud, leveling the playing field for American fishermen and seafood businesses, while protecting consumers and the oceans,” Lowell said. “The United States must take decisive action to combat IUU fishing and close the U.S. market to all illegally sourced products, including seafood caught using forced labor or other human rights abuses. The United States can be a leader in traceability of seafood and transparency at sea.”

The U.S. Food and Drug Administration (FDA) is currently considering a proposed rule that would require traceability for some foods, including most seafood, throughout the full supply chain. “Oceana supports the FDA requiring traceability for seafood and suggests that the rule be expanded to include all seafood; align with SIMP; require electronic recordkeeping and reporting; and provide consumers with more information about the seafood they eat, like what fish it is, where it was caught, how it was caught or if it was farmed,” Lowell said.

“To effectively fight IUU fishing on a global scale, there must be expanded transparency of the commercial fishing industry,” said Dr. Marla Valentine, Oceana’s illegal fishing and transparency analyst. “U.S. requirements to carry automatic identification system (AIS) devices, which bolster transparency at sea, currently fall short. Oceana determined that 85% of the U.S. fishing fleet — nearly 15,000 commercial fishing vessels — are not required to use AIS, as current regulations only apply to vessels longer than 65 feet. The U.S. should expand transparency requirements to vessels 49 feet and above. Before demanding transparency elsewhere, the U.S. must embrace transparency at home.”

In January 2021, Oceana released the results of a nationwide poll finding that Americans overwhelmingly support policies to end illegal fishing and seafood fraud. Included among the key findings, 89% of voters agree that imported seafood should be held to the same standards as U.S. caught seafood. Additionally, 81% of voters say they support policies that prevent seafood from being sold in the U.S. that was caught using human trafficking and slave labor. Eighty-three percent of voters agree that all seafood should be traceable from the fishing boat to the dinner plate, and 77% support requirements for all fishing vessels to be publicly trackable. The findings show widespread bipartisan support for policies aimed at increasing transparency and seafood traceability.

Oceana is campaigning to stop illegal fishing, increase transparency at sea and require traceability of all seafood to ensure all seafood is safe, legally caught, responsibly sourced and honestly labeled.

Read the full report here.

###

Oceana is the largest international advocacy organization dedicated solely to ocean conservation. Oceana is rebuilding abundant and biodiverse oceans by winning science-based policies in countries that control one-third of the world’s wild fish catch. With more than 225 victories that stop overfishing, habitat destruction, pollution, and the killing of threatened species like turtles and sharks, Oceana’s campaigns are delivering results. A restored ocean means that 1 billion people can enjoy a healthy seafood meal, every day, forever. Together, we can save the oceans and help feed the world. Visit

USA.Oceana.org

to learn more.

Attachment

IUU-21-0002 Transparency Report Social Graphics_v3_Page_01

Megan Jordan Oceana [email protected] Dustin Cranor Oceana [email protected]

Posted on March 3, 2021 7:20 am
SKF Annual Report 2020

PR Newswire

GOTHENBURG, March 3, 2021 /PRNewswire/ — AB SKF’s Annual Report 2020 has today been published on the Group’s website. The report focuses on SKF’s operations and value creation for customers, employees, shareholders, the environment and surrounding communities.

Alrik Danielson, President and CEO, SKF, says: “Our colleagues around the world have showed a fantastic level of commitment and energy during this very challenging year. Despite the effects of the pandemic on the global economy, we have made 2020 the year in which we truly delivered on our strategy. This is clearly visible in our solid results and continued high levels of investment in our business.”

“SKF’s competence around the rotating shaft and our ability to not just improve machine performance but also help reduce the CO2 emissions of our customers, puts us in the driving seat when it comes to creating a circular economy.”

The SKF Annual Report is available for download on https://investors.skf.com.

Aktiebolaget SKF
(publ)

This is information that AB SKF is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 13:00 CET on 3 March 2021.

About SKF

SKF is a leading global supplier in the areas of bearings, seals, mechatronics, services and lubrication systems. The Group’s service offer includes technical support, maintenance services, engineering consultancy and training.

CONTACT:

For further information, please contact:

PRESS: Theo Kjellberg, Director, Press Relations
tel: 46 31 337 6576, mobile: 46 725-776576, e-mail: [email protected]

INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
Patrik Stenberg, 46 31-337 2104; 46 705-472 104; [email protected]

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/skf/r/skf-annual-report-2020,c3299288

The following files are available for download:

https://mb.cision.com/Main/637/3299288/1381830.pdf

SKF Annual Report 2020

https://news.cision.com/skf/i/alrik-danielson,c2884238

Alrik Danielson

View original content:http://www.prnewswire.com/news-releases/skf-annual-report-2020-301239575.html

SOURCE SKF

Posted on March 3, 2021 7:20 am
Faraday Future to Participate in Upcoming Investor Conferences

Faraday Future to Participate in Upcoming Investor Conferences

LOS ANGELES–(BUSINESS WIRE)–
Faraday Future (FF), a California-based global shared intelligent mobility ecosystem company, today announced its participation in several upcoming investor events:

Deutsche Bank EV Startups Virtual Bus Tour (March 4, 2021)

Baird Vehicle Technology and Mobility Conference (March 10, 2021)

Cowen Mobility Disruption Conference (March 12, 2021)

Users can reserve an FF 91 now at: https://www.ff.com/us/reserve

ABOUT FARADAY FUTURE

Established in May 2014, Faraday Future (FF) is a global shared intelligent mobility ecosystem company, headquartered in Los Angeles, California. FF’s vision is to create a shared intelligent mobility ecosystem that empowers everyone to move, connect, breathe, and live freely. FF aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet and new usership models. The FF 91 is not just a car, it is also a Third Internet Living Space, in which users can maximize their digital lives on the road.

FOLLOW FARADAY FUTURE:

https://www.ff.com/

https://twitter.com/FaradayFuture

https://www.facebook.com/faradayfuture/

https://www.instagram.com/faradayfuture/

www.linkedin.com/company/faradayfuture

ABOUT PROPERTY SOLUTIONS ACQUISITION CORP.

Property Solutions Acquisition Corp. is a special purpose acquisition company formed for the purpose of effecting a merger, stock purchase or similar business combination with one or more differentiated businesses. The company is managed by Co-CEO’s Jordan Vogel and Aaron Feldman.

Property Solutions I is a $230 million SPAC formed in July 2020 and is traded on the NASDAQ under the ticker symbol “PSAC”.

IMPORTANT INFORMATION AND WHERE TO FIND IT

This press release relates to a proposed transaction between PSAC and FF. PSAC intends to file with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 that will include a proxy statement and prospectus of PSAC and a consent solicitation statement with respect to FF. The proxy statement/consent solicitation statement/prospectus will be mailed to stockholders of PSAC as of a record date to be established for voting on the proposed business combination. PSAC also will file other relevant documents from time to time regarding the proposed transaction with the SEC. INVESTORS AND SECURITY HOLDERS OF PSAC ARE URGED TO READ THE PROXY STATEMENT, PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED BY PSAC FROM TIME TO TIME WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the proxy statement/consent solicitation statement/prospectus and other documents containing important information about PSAC and FF once such documents are filed with the SEC, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by PSAC when and if available, can also be obtained free of charge by directing a written request to Property Solutions Acquisition Corp., 654 Madison Avenue, Suite 1009, New York, New York 10065.

PARTICIPANTS IN THE SOLICITATION

PSAC and FF and their respective directors and executive officers, under SEC rules, may be deemed to be participants in the solicitation of proxies of PSAC’s stockholders in connection with the proposed transaction. Investors and security holders may obtain more detailed information regarding the names and interests in the proposed transaction of PSAC’s directors and officers in PSAC’s filings with the SEC, including PSAC’s Quarterly Report on Form 10-Q for the period ended September 30, 2020, which was filed with the SEC on November 13, 2020. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to PSAC’s stockholders in connection with the proposed business combination will be set forth in the proxy statement/consent solicitation statement/prospectus for the proposed business combination when available. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed business combination will be included in the proxy statement/consent solicitation statement/prospectus that PSAC intends to file with the SEC.

NO OFFER OR SOLICITATION

This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

FORWARD LOOKING STATEMENTS

This press release includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside PSAC’s or FF’s management’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the inability to complete the transactions contemplated by the proposed business combination; the inability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, the amount of cash available following any redemptions by PSAC stockholders; the ability to meet the Nasdaq’s listing standards following the consummation of the transactions contemplated by the proposed business combination; costs related to the proposed business combination; FF’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; FF’s estimates of the size of the markets for its vehicles; the rate and degree of market acceptance of FF’s vehicles; the success of other competing manufacturers; the performance and security of FF’s vehicles; potential litigation involving PSAC or FF; the result of future financing efforts and general economic and market conditions impacting demand for FF’s products. Other factors include the possibility that the proposed transaction does not close, including due to the failure to receive required security holder approvals, or the failure of other closing conditions. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the registration statement on Form S-4 and proxy statement/consent solicitation statement/prospectus discussed above and other documents filed by PSAC from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and neither PSAC nor FF undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005518/en/

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Posted on March 3, 2021 7:18 am
Creative Medical Technology Holdings Provides Update on ImmCelz® FDA Application

PR Newswire

PHOENIX, March 3, 2021 /PRNewswire/ — (OTC-CELZ) Creative Medical Technology Holdings announced today that due to COVID related technical changes in the FDA’s submission requirements, the Company’s ImmCelz® Investigational New Drug Application (IND) for the treatment of Stroke will be resubmitted to the FDA in electronic form to comply with such requirements. Previously, the FDA had accepted IND applications in hard copy submitted by mail.

Due to the complexity of the new requirements, Creative Medical Technology Holdings has retained the services of an FDA consulting firm with the expertise to assist it with the FDA’s electronic submission procedures, which include formatting, hyperlinking, and tagging requirements. The Company believes that retaining a third party firm experienced in FDA electronic submissions will better equip the Company to navigate and comply with the FDA’s new requirements.

Resubmission of the Company’s ImmCelz® IND will not change the substance of the Company’s application to the FDA. As previously reported, the IND seeks approval from the FDA to initiate the first clinical trial using cellular immunotherapy for treatment of stroke, using the Company’s ImmCelz® product.

About Creative Medical Technology Holdings Creative Medical Technology Holdings, Inc. is a commercial stage biotechnology company specializing in regenerative medicine/stem cell technology in the fields of immunotherapy, urology, neurology and orthopedics and is listed on the OTC under the ticker symbol CELZ. For further information about the company, please visit www.creativemedicaltechnology.com.

Forward Looking Statements OTC Markets has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming clinical trials and laboratory results, marketing efforts, funding, etc. Forward-looking statements address future events and conditions and, therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. See the periodic and other reports filed by Creative Medical Technology Holdings, Inc. with the Securities and Exchange Commission and available on the Commission’s website at www.sec.gov.

View original content to download multimedia:http://www.prnewswire.com/news-releases/creative-medical-technology-holdings-provides-update-on-immcelz-fda-application-301239402.html

SOURCE Creative Medical Technology Holdings, Inc.

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