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DiaMedica Therapeutics to Report Fourth Quarter 2020 Financials and Provide a Business Update March 11, 2021

MINNEAPOLIS–(BUSINESS WIRE)–
DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage biopharmaceutical company focused on developing novel treatments for neurological disorders and kidney diseases, today announced that its fourth quarter 2020 financial results will be released after the markets close on Wednesday, March 10^th. DiaMedica will host a live conference call on Thursday, March 11^th at 7:00 AM Central Time to discuss its business update and financial results.

Conference Call details:

Date:		Thursday, March 11, 2021
Time:		7:00 AM CT / 8:00 AM ET
Web access:		https://event.on24.com/wcc/r/2948450/3CC8FC74172F3DEDB9258000144DA5E4
Dial In:		(866) 393-4306 (domestic)
		(734) 385-2616 (international)
Conference ID:		9297319

Interested parties may access the conference call by dialing in or listening to the simultaneous webcast. Listeners should log on to the website or dial in 15 minutes prior to the call. The webcast will remain available for play back on our website, under investor events and presentations, following the earnings call and for 12 months thereafter. A telephonic replay of the conference call will be available until March 18, 2021, by dialing (855) 859-2056 (US Toll Free), (404) 537-3406 (International), replay passcode 9297319.

About DiaMedica Therapeutics Inc.

DiaMedica Therapeutics Inc. (Nasdaq: DMAC) is a clinical stage biopharmaceutical company focused on developing novel treatments to improve the lives of patients with neurological and chronic kidney diseases. To learn more about DiaMedica, please visit www.diamedica.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005714/en/

Scott Kellen

Chief Financial Officer

Phone: (763) 496-5118

[email protected]

KEYWORDS: Minnesota United States North America

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Clinical Trials

MEDIA:

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Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of Ontrak, Inc. (OTRK) on Behalf of Investors

LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Ontrak, Inc. (“Ontrak” or the “Company”) (NASDAQ: OTRK) investors concerning the Company’s possible violations of the federal securities laws.

If you suffered a loss on your Ontrak investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/ontrak-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.

On March 1, 2021, Ontrak issued a press release announced preliminary financial results for fourth quarter and full year 2020. Therein, the Company stated that its largest customer had terminated its contract with Ontrak, effective June 26, 2021. The Company stated that this customer “evaluated Ontrak on a provider basis” and “[a]s such, the customer evaluated [Ontrak’s] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings.” The Company also stated that “the coaching model which Ontrak has pioneered for over a decade was seen by the customer to be less relevant to their performance metrics.”

On this news, the Company’s share price fell $27.32, or more than 46%, to close at $31.62 per share on March 1, 2021, thereby injuring investors.

Follow us for updates on LinkedIn, Twitter, or Facebook.

Whistleblower Notice: Persons with non-public information regarding Ontrak should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].

About GPM

Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005953/en/

Glancy Prongay & Murray LLP, Los Angeles

Charles H. Linehan, 310-201-9150 or 888-773-9224

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

www.glancylaw.com

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Legal Professional Services

MEDIA:

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BlackRock Capital Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2020, Declares Quarterly Cash Distribution of $0.10 per Share

• GAAP Net Investment Income (“NII”) of $0.10 per share, or $7.3 million, provided fourth quarter distribution coverage of 101%.
• Net Asset Value (“NAV”) increased to $315.0 million, up 2.8% from $306.6 million; NAV per share decreased 0.2% to $4.23 per share from $4.24 per share, primarily due to an increase in total shares outstanding.
• Transformational progress towards reducing junior capital and non-core exposure, successfully exiting $171 million of these investments during the fourth quarter and subsequent period. As a result, non-core holdings represent just 9%¹ of the total portfolio at fair value as of February 23, 2021.
• Net leverage of 0.51x as of December 31, 2020, down significantly from 0.98x as of September 30, 2020, primarily driven by net investment exits during the fourth quarter.
• Total liquidity for portfolio company investments, including cash, was approximately $285 million, subject to leverage and borrowing base restrictions.

NEW YORK–(BUSINESS WIRE)–
BlackRock Capital Investment Corporation (NASDAQ:BKCC) (“BCIC” or the “Company,” “we,” “us” or “our”) announced today that its Board of Directors declared a quarterly distribution of $0.10 per share, payable in cash on April 7, 2021 to stockholders of record at the close of business on March 17, 2021.

“We are pleased to report continued transformational progress towards our goal of reducing non-core and junior capital exposure in our portfolio,” said James E. Keenan, Chairman and Interim CEO of the Company. “During and subsequent to the fourth quarter, we made significant headway in reducing this exposure. We achieved this primarily through meaningful reductions in our exposure to Gordon Brothers Finance Company (“GBFC”) and BCIC Senior Loan Partners (“SLP”), coupled with the complete exits of our investments in First Boston Construction Holdings (“FBCH”) and CB-HDT Holdings. In addition, we believe there are more near-term opportunities that could lead to continued repayments in the non-core book.”

	February 23, 20211	September 30, 2020	December 31, 2019
Portfolio Composition
First Lien Debt	58%	37%	34%
Second Lien Debt	28%	25%	23%
Junior Capital2	14%	38%	43%
Portfolio Company Count	58	55	47
Non-Core Assets
Portfolio Company Count3	6	7	9
FMV ($ in Millions)	40	53	120
% of investments, at FMV	9%	9%	16%

¹ Preliminary estimate of portfolio construction as of February 23, 2021, using valuation marks as of December 31, 2020.

² Includes unsecured/subordinated debt and equity investments.

³ Excludes portfolio companies with zero fair market value.

	October 1, 2020 – February 23, 2021
	$ in Millions	%
Deployments
First Lien Debt	69	76%
Second Lien Debt	21	23%
Unsecured Debt	1	1%
Repayments/Exits
Non-Core & Junior Capital	171	68%
Other Core Assets	80	32%

“The Company has continued to identify strong risk-adjusted return opportunities for capital deployment. Consistent with our strategy, investments have been focused on senior secured debt with an emphasis on first lien loans. We expect the percentage of first lien investments as well as the diversity of the portfolio to further increase as we continue to deploy capital,” added Keenan.

“We are returning to paying an all cash dividend this quarter at a level of $0.10 per share. For the last three quarters, we have de-risked our portfolio during a period of unprecedented economic uncertainty, and as part of that process we took the prudent but temporary step of paying a portion of our dividend in stock. With most of the de-risking accomplished, we are confident in resuming our normalized approach to dividends.

“This strategic progress has resulted in significant repayments and deleveraging, causing portfolio leverage to decline to approximately 0.43x as of February 23^rd, 2021, from 0.98x at the end of the third quarter of 2020. We believe the strength of our platform will allow us to rebuild the portfolio in a manner that is consistent with our strategy. In the near term, we expect that NII will likely be compressed (in the range of 5 to 6 cents per share at the current leverage ratio). We anticipate that, as we redeploy capital, we will rebuild NII, enabling us to grow into the dividend,” added Keenan.

“With the strategic portfolio exits largely behind us, our near-term priorities include optimizing our capital structure, which includes addressing the 2022 and 2023 debt maturities, as well as allocating more capital towards programmatic share repurchases. Additionally, to further bolster NAV, BlackRock has elected to fully waive its incentive fee for the fourth quarter, which totaled $1.3 million,” concluded Keenan.

Financial Highlights

	Q4 2020				Q3 2020				Q4 2019
($’s in millions, except per share data)	Total Amount		Per Share		Total Amount		Per Share		Total Amount		Per Share
Net Investment Income/(loss)	$7.3		$0.10		$8.5		$0.12		$9.6		$0.14
Net realized and unrealized gains/(losses)	$2.6		$0.04		$(35.7)		$(0.51)		$(11.2)		$(0.16)
Basic earnings/(losses)	$9.9		$0.14		$(27.2)		$(0.39)		$(1.6)		$(0.02)
Distributions declared	$7.2		$0.10		$7.0		$0.10		$9.6		$0.14
Net Investment Income/(loss), as adjusted1	$7.3		$0.10		$8.5		$0.12		$9.6		$0.14
Basic earnings/(losses), as adjusted1	$9.9		$0.14		$(27.2)		$(0.39)		$(1.6)		$(0.02)

	2020 Totals				2019 Totals
($’s in millions, except per share data)	Total Amount		Per Share		Total Amount		Per Share
Net Investment Income/(loss)	$34.2		$0.49		$41.9		$0.61
Net realized and unrealized gains/(losses)	$(138.1)		$(1.98)		$(48.8)		$(0.71)
Basic earnings/(losses)	$(103.9)		$(1.49)		$(6.9)		$(0.10)
Distributions declared	$30.6		$0.44		$44.1		$0.64
Net Investment Income/(loss), as adjusted1	$34.2		$0.49		$41.9		$0.61
Basic earnings/(losses), as adjusted1	$(103.9)		$(1.49)		$(6.9)		$(0.10)

($’s in millions, except per share data)	December 31, 2020	September 30, 2020	December 31, 2019
Total assets	$511.7	$621.4	$774.1
Investment portfolio, at fair market value	$479.0	$609.0	$749.9
Debt outstanding	$179.8	$305.0	$313.6
Total net assets	$315.0	$306.6	$435.6
Net asset value per share	$4.23	$4.24	$6.33
Net leverage ratio2	0.51x	0.98x	0.70x

______________________________________

¹ Non-GAAP basis financial measure. See Supplemental Information on page 10.

² Calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and receivable for investments sold, plus payables for investments purchased, and (B) NAV.

Business Updates for the Fourth Quarter and Subsequent Period

• Reduced Exposure in Non-core Legacy Portfolio:
  • Our investment in the unsecured debt of CB-HDT Holdings, Inc. was repaid in full (along with the entire accrued and unpaid PIK interest), resulting in a repayment of $9.4 million to the Company. This investment had a FMV of $8.9 million at September 30, 2020.
  • Red Apple Stores Inc. paid down $6.2 million on its 2nd lien loan to the Company utilizing excess cash on its balance sheet as its financial performance improved significantly during 2020. The FMV of the remaining 2nd lien investment in Red Apple is $14.8 million as of December 31, 2020. This investment had a FMV of $17.3 million at September 30, 2020, which was prior to the aforementioned principal reduction.
  • As of February 23^rd, 2021, non-core legacy assets comprised approximately $40 million, or 9% of our total portfolio at fair market value (six portfolio companies), as compared to 9% at the end of the third quarter and 16% at the end of 2019. Of the $40 million, approximately $38 million of non-core positions at FMV consist of income-producing investments across five portfolio companies.

• Reduced Exposure in other junior capital:
  • During the fourth quarter, $87.4 million of repayments were received on the unsecured debt of GBFC. These repayments were driven by (i) the previously disclosed sale of GBFC’s loan portfolio to Callodine Commercial Finance, Inc. and (ii) monetization of an equity warrant position issued by a prior GBFC portfolio company. The FMV of the Company’s remaining unsecured debt of GBFC is $22.9 million as December 31, 2020. This investment had an FMV of $121.8 million at September 30, 2020 which was prior to the aforementioned loan portfolio sale.
  • SLP sold a majority of its loan portfolio in the fourth quarter. Following this sale, SLP paid off and terminated its credit facility, and returned $23.0 million of capital to BCIC in December. Subsequent to year end, SLP partially sold one additional investment and returned an incremental $4 million to BCIC. After these sales, the remaining portfolio of SLP now consists of four portfolio companies with first lien loans with an aggregate FMV of approximately $31 million. BCIC owns 85% of the equity in SLP.
  • Investments in the subordinated debt and equity of First Boston Construction Holdings, LLC were fully repaid subsequent to the end of the fourth quarter resulting in the payment of $38.5 million to the Company. These investments had a FMV of $37.2 million at December 31, 2020.

• Share Repurchase Program: No shares were repurchased under our existing share repurchase program during the fourth quarter of 2020. Cumulative repurchases since BlackRock entered into the investment management agreement with the Company in early 2015 total approximately 8.3 million shares for $54.0 million. Since the inception of our share repurchase program through December 31, 2020, we have purchased over 10.0 million shares at an average price of $6.62 per share, including brokerage commissions, for a total of $66.3 million. On November 3, 2020, the Company’s Board of Directors authorized the Company to purchase up to a total of 7,500,000 shares, effective until the earlier of November 2, 2021 or such time that all the authorized shares have been repurchased. As of December 31, 2020, 7,500,000 shares remained authorized for repurchase. With several strategic portfolio exits already accomplished, BCIC is increasing the amount of capital allocated towards programmatic share repurchases.

Fourth Quarter Financial Updates

• NII was $7.3 million, or $0.10 per share, for the three months ended December 31, 2020. Relative to distributions declared of $0.10 per share, our NII distribution coverage was 101% for the quarter. Total investment income declined by 10.4% compared to previous quarter mainly driven by GBFC unsecured debt being put on non-accrual status during the fourth quarter.

• NAV increased to $315.0 million, up 2.8% from $306.6 million as of September 30, 2020. NAV per share decreased 0.2% or $(0.01) per share to $4.23 per share on a quarter-over-quarter basis, primarily due to an increase in total shares outstanding.

• For the quarter ended December 31, 2020, we incurred base management fees of $2.3 million, and incentive management fees based on income of $1.3 million. Our advisor has voluntarily waived the incentive fees based on income of $1.3 million, resulting in no net incentive fees for the period. Since March 2017, the adviser has waived $29.7 million of incentive management fees on a cumulative basis. For incentive management fees based on gains, there was no accrual or payment as of December 31, 2020.

• Tax characteristics of all 2020 distributions were reported to stockholders on Form 1099 after the end of the calendar year. Our 2020 distributions included a $0.12 per share return of capital. Our return of capital distributions totaled $2.11 per share from inception to December 31, 2020. At our discretion, we may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. We will accrue excise tax on estimated undistributed taxable income as required. There was no undistributed taxable income carried forward from 2020.

Portfolio and Investment Activity for the Fourth Quarter and Subsequent Period*

($’s in millions)	Three Months Ended December 31, 2020		Three Months Ended December 31, 2019		Year Ended December 31, 2020		Year Ended December 31, 2019
Investment deployments	$59.9		$73.0		$143.5		$303.5
Investment exits	$193.2		$38.1		$277.6		$176.7
Number of portfolio company investments at the end of period	55		47		55		47
Weighted average yield of debt and income producing equity securities, at fair market value	8.9%		10.9%		8.9%		10.9%
% of Portfolio invested in Secured debt, at fair market value	77%		57%		77%		57%
% of Portfolio invested in Unsecured debt, at fair market value	13%		22%		13%		22%
% of Portfolio invested in Equity, at fair market value	10%		21%		10%		21%
Average investment by portfolio company, at amortized cost (excluding investments below $5.0 million)	$17.3		$21.9		$17.3		$21.9

*Balance sheet amounts and yield information above are as of period end

• We deployed $59.9 million during the quarter while exits and repayments totaled $193.2 million, resulting in a $133.3 million net decrease in our portfolio primarily due to progress made in reducing exposure in non-core and other junior capital investments previously mentioned.
  • Our deployments primarily consisted of seven new portfolio companies and three investments into existing portfolio companies, which are outlined as follows:
    • New Portfolio Companies
      • $25.0 million L + 9.00% first lien term loan and $8.1 million unfunded delayed draw term loan to Callodine Commercial Finance, LLC, as part of the previously disclosed GBFC transaction;
      • $7.8 million L + 6.25% first lien term loan to Paula’s Choice Holdings, Inc., a well-established direct-to-consumer skincare brand;
      • $5.8 million L + 9.00% second lien term loan to Team Services Group, LLC, a leading provider of homecare assistance for the elderly and people with disabilities;
      • $4.7 million L + 7.00% first lien term loan and $3.1 million unfunded delayed draw term loan to Thras.io, LLC, a consolidator of small to medium sized brands that sell through Amazon’s third-party platform;
      • $4.7 million L + 8.00% second lien term loan to Syndigo, LLC, a provider of digital content and retail optimization solutions for the consumer goods industry;
      • $1.8 million L + 6.25% first lien term loan and $0.3 million revolving term loan ($0.1 million unfunded) to IT Parent, LLC, a sales automation software platform designed for insurance carriers and distributors; and
      • $1.5 million L + 7.00% first lien term loan and $3.5 million unfunded delayed draw term loan to Sonny’s Enterprises, LLC, a manufacturer and provider of car wash equipment, parts, chemicals and controls software;
    • Incremental Investments
      • $3.0 million of incremental L + 6.76% first lien term loan to Live Auctioneers, LLC;
      • $2.3 million of incremental L + 8.50% second lien term loan to AmeriLife Holdings, LLC; and
      • $1.3 million of incremental L + 7.00% second lien term loan to NEP II, Inc.
  • Our sales, exits, and repayments were primarily concentrated in seven portfolio company exits, three partial repayments, two partial sales, and one partial return of capital:
    • $87.4 million partial repayment of our unsecured debt in GBFC;
    • $23.0 million partial return of capital from our equity investment in SLP;
    • $17.5 million full repayment of Vertellus Holdings, LLC first lien term loan;
    • $11.9 million full repayment of Cambrex Corporation second lien term loan;
    • $9.4 million full repayment of CB-HDT Holdings, Inc. unsecured debt, a non-core legacy position;
    • $9.1 million of proceeds from our partial sale of Zest Acquisition Corp. second lien term loan;
    • $8.4 million full repayment of P&L Development, LLC first lien term loan;
    • $6.2 million partial repayment of Red Apple Stores Inc. second lien term loan, a non-core legacy position;
    • $5.1 million full repayment of ECI Macola/Max Holding, LLC second lien term loan;
    • $4.9 million of proceeds from our partial sale of Midwest Physician Administrative Services, LLC second lien term loan;
    • $3.5 million partial repayment of Outcomes Group Holdings, Inc. second lien term loan;
    • $2.7 million full repayment of Pulse Secure, LLC first lien term loan; and
    • $2.4 million full repayment of Marketlive, LLC (Kibo) first lien term loan.
• As of December 31, 2020, there were four non-accrual investment positions, representing approximately 6.5% and 17.8% of total debt and preferred stock investments, at fair value and cost, respectively, as compared to four non-accrual investment positions of approximately 2.4% and 6.9% of total debt and preferred stock investments at fair value and cost, respectively, at December 31, 2019. As previously disclosed, the Company’s unsecured debt investment in GBFC became a new non-accrual investment during the quarter after the sale of GBFC’s loan portfolio. As described earlier, the remaining investment stands to benefit from recovery on the interests retained by GBFC. The average internal investment rating of the portfolio at fair market value at December 31, 2020 was 1.90 as compared to 1.78 as of the prior quarter end. As of February 23, 2021, there were three non-accrual investment positions, representing approximately 5.4% of total debt and preferred stock investments, at fair value.
• During the quarter ended December 31, 2020, net realized and unrealized gains were $2.6 million, primarily attributable to net appreciation in portfolio valuations during the quarter.

Liquidity and Capital Resources

• At December 31, 2020, we had $23.3 million in cash and cash equivalents and $261.2 million of availability under our credit facility, subject to leverage restrictions, resulting in approximately $284.5 million of availability for portfolio company investments. Committed but unfunded portfolio obligations at December 31, 2020 were $20.0 million (excluding the $4.2 million LP commitment to SLP, which is completely discretionary). We believe there is sufficient liquidity to meet all of the Company’s obligations and selectively deploy new capital.
• Net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, was 0.51x at quarter-end, and our 271% asset coverage ratio provided the Company with available debt capacity under its asset coverage requirements of $220.7 million. As of February 23, 2021, after accounting for portfolio activity subsequent to the quarter, net leverage declined to approximately 0.43x. Further, as of December 31, 2020, approximately 82% of our assets were invested in qualifying assets, exceeding the 70% regulatory requirement of a business development company.
• On December 30, 2020, the Company paid a dividend of $0.10 per share, or $7.23 million, to stockholders of record on November 18, 2020, as announced on November 4, 2020. Of the total $7.23 million dividend, approximately $1.45 million was paid in cash and $5.78 million was paid in approximately 2.16 million shares of the Company’s common stock issued at a price of $2.684 per share (representing the average closing stock price for the Company’s stock on the five trading days beginning on December 16, 2020 and ending on December 22, 2020 (both days inclusive)). Due to the portion of dividends paid in common stock, our NAV has increased by approximately $5.78 million on December 30, 2020.
• For the first quarter of 2021, BCIC declared an all cash dividend of $0.10 per share, payable on April 7, 2021 to stockholders of record at the close of business on March 17, 2021.

Conference Call

BlackRock Capital Investment Corporation will host a webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday, March 4, 2021, to discuss its fourth quarter 2020 financial results. All interested parties are welcome to participate. You can access the teleconference by dialing, from the United States, (800) 458-4121 or from outside the United States, +1(313) 209-6672, 10 minutes before 10:00 a.m. and referencing the BlackRock Capital Investment Corporation Conference Call (ID Number 8535673). A live, listen-only webcast will also be available via the Investor Relations section of www.blackrockbkcc.com. This teleconference can also be accessed using Microsoft Edge, Google Chrome, or Firefox via this link: BlackRock Capital Investment Corporation Fourth Quarter 2020 Earnings Call. Once clicked-on, please enter your information to be connected. Please note that the link becomes active fifteen minutes prior to the scheduled start time.

Both the teleconference and webcast will be available for replay by 1:00 p.m. on Thursday, March 4, 2021 and ending at 1:00 p.m. on Thursday, March 18, 2021. To access the replay of the teleconference, callers from the United States should dial (888) 203-1112 and callers from outside the United States should dial +1(719) 457-0820 and enter the Conference ID Number 8535673. To access the webcast, please visit the investor relations section of www.blackrockbkcc.com.

Prior to the webcast/teleconference, an investor presentation that complements the earnings conference call will be posted to BlackRock Capital Investment Corporation’s website within the Presentations section of the Investors page (https://www.blackrockbkcc.com/investors/news-and-events/disclaimer).

About BlackRock Capital Investment Corporation

BlackRock Capital Investment Corporation is a business development company that provides debt and equity capital to middle-market companies.

The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in middle-market companies in the form of senior debt securities and loans, and our investment portfolio may include junior secured and unsecured debt securities and loans, each of which may include an equity component.

BlackRock Capital Investment Corporation

Consolidated Statements of Assets and Liabilities

	December 31, 2020		December 31, 2019
Assets
Investments at fair value:
Non-controlled, non-affiliated investments (cost of $369,079,320 and $389,156,775)	$354,957,936		$377,136,394
Non-controlled, affiliated investments (cost of $20,927,907 and $65,825,475)	13,099,313		22,473,524
Controlled investments (cost of $216,768,227 and $400,561,551)	110,968,227		350,249,163
Total investments at fair value (cost of $606,775,454 and $855,543,801)	479,025,476		749,859,081
Cash and cash equivalents	23,332,831		14,678,878
Receivable for investments sold	5,439,507		1,871,435
Interest, dividends and fees receivable	2,138,304		5,708,324
Prepaid expenses and other assets	1,783,472		1,945,709
Total Assets	$511,719,590		$774,063,427
Liabilities
Debt (net of deferred financing costs of $1,360,356 and $2,298,004)	$179,798,037		$313,569,694
Interest and credit facility fees payable	502,682		757,472
Distributions payable	—		9,637,075
Base management fees payable	2,313,447		3,251,194
Incentive management fees payable	1,849,597		1,849,597
Payable for investments purchased	9,193,917		7,312,500
Accrued administrative services	389,064		372,407
Other accrued expenses and payables	2,662,569		1,704,507
Total Liabilities	196,709,313		338,454,446
Net Assets
Common stock, par value $.001 per share, 200,000,000 common shares authorized, 84,478,251 and 77,861,287 issued and 74,466,665 and 68,836,255 outstanding	84,478		77,861
Paid-in capital in excess of par	866,720,809		849,240,398
Distributable earnings (losses)	(485,498,151)		(351,040,023)
Treasury stock at cost, 10,011,586 and 9,025,032 shares held	(66,296,859)		(62,669,255)
Total Net Assets	315,010,277		435,608,981
Total Liabilities and Net Assets	$511,719,590		$774,063,427
Net Asset Value Per Share	$4.23		$6.33

BlackRock Capital Investment Corporation

Consolidated Statements of Operations

		Three Months Ended December 31, 2020 (Unaudited)		Three Months Ended December 31, 2019 (Unaudited)		Year Ended December 31, 2020		Year Ended December 31, 2019
Investment Income:
Non-controlled, non-affiliated investments:
Cash interest income		$8,160,377		$8,370,290		$31,426,192		$29,292,857
PIK interest income		1,268,636		1,226,151		5,026,084		2,085,016
Fee income		543,312		89,829		620,705		1,444,113
Total investment income from non-controlled, non- affiliated investments		9,972,325		9,686,270		37,072,981		32,821,986
Non-controlled, affiliated investments:
Cash interest income		117,138		128,895		474,862		3,493,487
PIK interest income		121,049		116,575		461,367		245,197
PIK dividend income		—		—		—		220,480
Fee income		(7,377)		1,451		(3,055)		3,055
Total investment income from non-controlled, affiliated investments		230,810		246,921		933,174		3,962,219
Controlled investments:
Cash interest income		3,184,893		5,105,807		19,794,470		22,832,830
PIK interest income		—		759,254		1,053,664		2,776,671
Cash dividend income		1,220,030		3,389,999		8,190,499		15,562,959
Fee income		3,186		3,186		70,712		131,485
Total investment income from controlled investments		4,408,109		9,258,246		29,109,345		41,303,945
Other income		—		—		—		30,371
Total investment income		14,611,244		19,191,437		67,115,500		78,118,521
Expenses:
Base management fees		2,313,447		3,251,193		10,799,832		12,425,101
Incentive management fees		1,278,947		2,122,796		6,304,333		8,751,521
Interest and credit facility fees		3,344,257		4,091,942		15,584,214		15,558,648
Professional fees		432,544		309,728		1,964,252		2,093,064
Administrative services		389,064		372,407		1,457,979		1,403,419
Director fees		157,500		176,500		652,250		729,750
Investment advisor expenses		87,500		87,500		350,000		350,000
Other		578,667		288,190		2,083,486		1,800,932
Total expenses, before incentive management fee waiver		8,581,926		10,700,256		39,196,346		43,112,435
Incentive management fee waiver		(1,278,947)		(1,145,894)		(6,304,333)		(6,901,924)
Expenses, net of incentive management fee waiver		7,302,979		9,554,362		32,892,013		36,210,511
Net Investment Income		7,308,265		9,637,075		34,223,487		41,908,010
Realized and Unrealized Gain (Loss):
Net realized gain (loss):
Non-controlled, non-affiliated investments		(612,107)		(264,342)		(12,941,524)		(23,660,181)
Non-controlled, affiliated investments		(77,952)		(879,673)		(43,851,965)		(1,225,060)
Controlled investments		—		—		(59,194,744)		—
Net realized gain (loss)		(690,059)		(1,144,015)		(115,988,233)		(24,885,241)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments		5,978,376		953,491		(2,123,600)		21,084,787
Non-controlled, affiliated investments		848,530		(1,733,802)		35,523,356		(24,529,889)
Controlled investments		(3,870,607)		(9,423,322)		(55,623,040)		(20,798,389)
Foreign currency translation		325,302		136,690		135,427		333,982
Net change in unrealized appreciation (depreciation)		3,281,601		(10,066,943)		(22,087,857)		(23,909,509)
Net realized and unrealized gain (loss)		2,591,542		(11,210,958)		(138,076,090)		(48,794,750)
Net Increase (Decrease) in Net Assets Resulting from Operations		$9,899,807		$(1,573,883)		$(103,852,603)		$(6,886,740)
Net Investment Income Per Share—basic		$0.10		$0.14		$0.49		$0.61
Earnings (Loss) Per Share—basic		$0.14		$(0.02)		$(1.49)		$(0.10)
Average Shares Outstanding—basic		72,358,355		68,836,255		69,801,849		68,836,590
Net Investment Income Per Share—diluted		$0.10		$0.14		$0.49		$0.59
Earnings (Loss) Per Share—diluted		$0.14		$(0.02)		$(1.49)		$(0.10)
Average Shares Outstanding—diluted		89,352,092		85,829,992		86,795,585		85,830,326
Distributions Declared Per Share		$0.10		$0.14		$0.44		$0.64

Supplemental Information

The Company reports its financial results on a generally accepted accounting principles (“GAAP”) basis; however, management believes that evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of the Company’s financial performance over time. The Company’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Incentive management fees based on income have been calculated for each calendar quarter and are paid on a quarterly basis if certain thresholds are met. The Company records its liability for incentive management fees based on capital gains by performing a hypothetical liquidation at the end of each reporting period. The accrual of this hypothetical capital gains incentive management fee is required by GAAP, but it should be noted that a fee so calculated and accrued is not due and payable until the end of the measurement period, or every June 30. The incremental incentive management fees disclosed for a given period are not necessarily indicative of actual full year results. Changes in the economic environment, financial markets and other parameters used in determining such estimates could cause actual results to differ and such differences could be material. For the period July 1, 2019 through December 31, 2020, BCIA had voluntarily and partially waived incentive fees. For a more detailed description of the Company’s incentive management fee, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, on file with the Securities and Exchange Commission (“SEC”).

Computations for the periods below are derived from the Company’s financial statements as follows:

	Three Months Ended December 31, 2020		Three Months Ended December 31, 2019		Year Ended December 31, 2020		Year Ended December 31, 2019
GAAP Basis:
Net Investment Income	$7,308,265		$9,637,075		$34,223,487		$41,908,010
Net Investment Income per share	0.10		0.14		0.49		0.61
Addback: GAAP incentive management fee expense based on Gains	—		—		—		—
Addback: GAAP incentive management fee expense based on Income net of incentive management fee waiver	—		976,902		—		1,849,597
Pre-Incentive Fee1:
Net Investment Income	$7,308,265		$10,613,977		$34,223,487		$43,757,607
Net Investment Income per share	0.10		0.15		0.49		0.64
Less: Incremental incentive management fee expense based on Income net of incentive management fee waiver	—		(976,902)		—		(1,849,597)
As Adjusted2:
Net Investment Income	$7,308,265		$9,637,075		$34,223,487		$41,908,010
Net Investment Income per share	0.10		0.14		0.49		0.61

Note: The NII amounts for the three months and year ended December 31, 2020 are net of incentive management fees based on income and an incentive management fee waiver in the amount of $1,278,947 and $6,304,333, respectively. Additionally, please note that the NII amounts for the three months and year ended December 31, 2019 are net of incentive management fees based on income and a corresponding incentive management fee waiver in the amounts of $1,145,894 and $6,901,924, respectively. For the periods shown, there is no difference between the GAAP and as adjusted figures; however, there may be a difference in future periods.

¹ Pre-Incentive Fee: Amounts are adjusted to remove all incentive management fees. Such fees are calculated but not necessarily due and payable at this time.

² As Adjusted: Amounts are adjusted to remove the incentive management fee expense based on gains, as required by GAAP, and to include only the incremental incentive management fee expense based on Income. Incentive management fee expense based on income has been calculated for each calendar quarter and may be paid on a quarterly basis if certain thresholds are met. Amounts reflect the Company’s ongoing operating results and reflect the Company’s financial performance over time.

Forward-looking statements

This press release, and other statements that BlackRock Capital Investment Corporation may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock Capital Investment Corporation’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock Capital Investment Corporation cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and BlackRock Capital Investment Corporation assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in BlackRock Capital Investment Corporation’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment advisor to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment advisor or its affiliates; (13) the ability of our investment advisor to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.

BlackRock Capital Investment Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC identifies additional factors that can affect forward-looking statements.

Available Information

BlackRock Capital Investment Corporation’s filings with the SEC, press releases, earnings releases and other financial information are available on its website at www.blackrockbkcc.com. The information contained on our website is not a part of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005886/en/

Investors:

Nik Singhal

212.810.5427

Press:

Brian Beades

212.810.5596

KEYWORDS: New York United States North America

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Posted on March 3, 2021 4:05 pm

Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2021 Financial Results

Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2021 Financial Results

Cloud ARR Growth Accelerates to 83%; Total ARR up 41%

SAN FRANCISCO–(BUSINESS WIRE)–Splunk Inc. (NASDAQ: SPLK), provider of the Data-to-Everything Platform, today announced results for its fiscal fourth quarter and full year ended January 31, 2021.

Fourth Quarter 2021 Financial Highlights

• Cloud ARR was $810 million, up 83% year-over-year.
• Total ARR was $2.36 billion, up 41% year-over-year.
• Cloud revenue was $171 million, up 72% year-over-year.
• Total revenues were $745 million, down 6% year-over-year.
• 510 customers with ARR greater than $1 million, up 44% year-over-year.

Full Year 2021 Financial Highlights

• Cloud revenue was $554 million, up 77% year-over-year.
• Total revenues were $2.23 billion, down 5% year-over-year.
• GAAP operating loss was $780 million; GAAP operating margin was negative 35%.
• Non-GAAP operating loss was $85 million; non-GAAP operating margin was negative 3.8%.
• GAAP loss per share was $5.68; non-GAAP loss per share was $0.55.
• Operating cash flow was negative $191 million with free cash flow of negative $228 million.

“Just three years ago, we set out to radically transform Splunk to better help our customers put data at the heart of their own organizations and strategy,” said Doug Merritt, President and CEO, Splunk. “I’ve been incredibly proud of our progress through our transformation, and this quarter’s performance is no exception.”

“The market’s demand for data-driven solutions that enable digital and cloud transformation has never been higher,” Merritt continued. “We now have more than 500 customers investing over $1 million annually in our platform and solutions. At our size, Splunk is one of the fastest growing companies in the history of enterprise software.”

“With Total ARR growing 41% year-over-year and $810M of Cloud ARR accelerating to 83% growth, we are extremely proud of the team’s execution and the company’s business fundamentals, both of which remain strong,” said Jason Child, chief financial officer, Splunk. “As organizations continue to reinvent towards the cloud, I’m confident that our ability to support them across IT, Security and Developer operations positions Splunk for long-term success.”

Fiscal Year 2021 & Recent Business Highlights:

New and Expansion Customers Include: California Pizza Kitchen, Cornerstone OnDemand, Europcar (France), Ghana International Bank, Lockheed Martin Space, Nationwide Building Society (United Kingdom), NATO Communications and Information Agency (Belgium), The New York City Fire Department (FDNY), Nvidia, Okta, Shopify, Strava, Tesco (United Kingdom), Tide, United States Census Bureau

• Splunk’s Data-to-Everything Platform Helps Customers Thrive in the Data Age: New enhancements to Splunk Cloud and Splunk Enterprise power Splunk’s Data-to-Everything Platform, allowing customers to bring data to every decision, question and action across IT, Security and Observability. With updates to Splunk Data Stream Processor,Splunk Connected Experiences and Splunk’s Machine Learning Environment (SMLE), organizations around the world can improve the speed, scale and flexibility of Splunk, with new search and mobile capabilities that enable faster cloud transformation.
• Splunk’s Industry-Leading IT & Security Platforms Accelerate the Cloud Journey: Splunk announced a series of cloud-centric updates to its market-shaping IT and Security offerings, Splunk IT Service Intelligence (ITSI) and Splunk Enterprise Security. New updates to Splunk Mission Control helps security teams unify and modernize security operations in the cloud; while the latest version of Splunk IT Service Intelligence gives teams end-to-end visibility, operational efficiency and business intelligence so organizations can predict incidents before they impact customers.
• Splunk Customers Go All-In On Cloud: Parallel to Splunk’s significant Cloud products transformation, businesses using Splunk around the world are embracing Splunk Cloud to modernize their data strategies and embrace The Data Age. Across 2020, Splunk’s cloud business represented nearly half of the company’s software bookings, enabling organizations to migrate workloads and applications to the cloud, manage colossal spikes in data volume or increase visibility into cloud security risks.
• Splunk Launches the World’s Most Comprehensive Observability Suite: Announced at .conf20, Splunk’s Observability Suite combines the power of Splunk’s Data-to-Everything Platform with acquired technologies including SignalFx, Ominition, Streamlio, Plumbr, Rigor and Flowmill. By aligning best-in-class solutions for infrastructure monitoring, application performance monitoring, digital experience monitoring, log investigation and incident response into a single, tightly integrated suite of products, Splunk’s Observability Suite helps IT and DevOps teams tackle new monitoring challenges that other tools simply can’t effectively address.
• Splunk’s World-Renowned Partners Help Fuel Digital Transformation Initiatives: Spawned by the world’s rapidly accelerating shift to the cloud, Splunk’s Splunk Partner+ ecosystem continued to expand, helping customers bring data to everything. This year, Splunk Cloud launched on Google Cloud, helping organizations achieve actionable insights from their data that enable fast decisions and real-time visibility across the enterprise. Splunk also built on its strong partnership and demonstrated increased mutual investment and resourcing with AWS by signing a new 3-year strategic collaboration agreement.
• Splunk Recognized Globally as a Career-Defining, Destination Workplace: In spite of the ongoing COVID-19 pandemic, Splunk continued to grow its global workforce to over 6,000 Splunkers, united in one mission to turn data into doing. Throughout the year, the company was recognized as a leader in corporate culture, being named by Fortune as a Most Admired Company, Future 50 Company, Best Workplace for Women and Best Workplace for Millennials, amongst other technology and workplace awards.

Financial Outlook

The company is providing the following guidance for its fiscal first quarter 2022 (ending April 30, 2021):

• Total ARR is expected to be between $2.42 billion and $2.44 billion.
• Total revenues are expected to be between $480 million and $500 million.
• Non-GAAP operating margin is expected to be approximately negative 30%.

All forward-looking non-GAAP financial measures contained in this section “Financial Outlook” exclude estimates for stock-based compensation and related employer payroll tax, acquisition-related adjustments, amortization of intangible assets and capitalized software costs.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future. The company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fiscal fourth quarter and full year 2021 non-GAAP results included in this press release.

Conference Call and Webcast

Splunk’s executive management team will host a conference call today beginning at 1:30 p.m. PT (4:30 p.m. ET) to discuss the company’s financial results and business highlights. Interested parties may access the call by dialing (866) 501-1535. International parties may access the call by dialing (216) 672-5582. A live audio webcast of the conference call will be available through Splunk’s Investor Relations website at http://investors.splunk.com/events-presentations. A replay of the call will be available through March 10, 2021 by dialing (855) 859-2056 and referencing Conference ID 1086748.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding Splunk’s total ARR, revenue and non-GAAP operating margin targets for the company’s fiscal first quarter in the paragraphs under “Financial Outlook” above and other statements regarding our market opportunity, including the impact of the COVID-19 pandemic on the business environment, such as the pace of customer digital and cloud transformation and the importance of data; the growth of our cloud business; the market for data-related products and trends in this market, future growth and related targets, including trends in our cloud software business mix, customer renewals, momentum, growth rate, strategy, technology and product innovation; expectations for our industry and business, such as our business model, customer demand, our partner relationships, customer success and feedback, expanding use of Splunk by customers, and expected benefits and scale of our products. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with Splunk’s rapid growth, particularly outside of the United States; Splunk’s inability to realize value from its significant investments in its business, including product and service innovations and through acquisitions; Splunk’s shift from sales of perpetual licenses in favor of sales of term licenses and subscription agreements for our cloud services which impact the timing of revenue, cash collections and margins; a shift from sales of term licenses in favor of sales of subscription agreements for our cloud services which impact the timing of revenue and margins; Splunk’s transition to a multi-product software and services business; Splunk’s inability to successfully integrate acquired businesses and technologies, such as Plumbr, Rigor and Flowmill; Splunk’s inability to service its debt obligations or other adverse effects related to our convertible notes; the impact of the COVID-19 pandemic and related public health measures on our business, as well as the impact of the COVID-19 pandemic on the overall economic environment, including customer buying capacity, urgency and patterns; and general market, political, economic, business and competitive market conditions.

Additional information on potential factors that could affect Splunk’s financial results is included in the company’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2020, which is on file with the U.S. Securities and Exchange Commission (“SEC”) and Splunk’s other filings with the SEC. Splunk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About Splunk Inc.

Splunk Inc. (NASDAQ: SPLK) turns data into doing with the Data-to-Everything Platform. Splunk technology is designed to investigate, monitor, analyze and act on data at any scale.

Splunk, Splunk>, Data-to-Everything, D2E and Turn Data Into Doing are trademarks and registered trademarks of Splunk Inc. in the United States and other countries. All other brand names, product names, or trademarks belong to their respective owners. © 2021 Splunk Inc. All rights reserved.

Splunk Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
		Three Months Ended January 31,								Fiscal Year Ended January 31,
			2021				2020				2021				2020
Revenues
License		$	405,954			$	517,542			$	971,378			$	1,373,367
Cloud services			171,396				99,413				554,132				312,358
Maintenance and services			167,728				174,227				703,875				673,201
Total revenues			745,078				791,182				2,229,385				2,358,926
Cost of revenues
License			4,315				6,702				20,864				24,116
Cloud services			75,718				52,985				252,290				161,510
Maintenance and services			69,863				68,151				274,191				244,162
Total cost of revenues			149,896				127,838				547,345				429,788
Gross profit			595,182				663,344				1,682,040				1,929,138
Operating expenses
Research and development			211,383				197,513				791,026				619,800
Sales and marketing			369,999				367,116				1,336,056				1,263,873
General and administrative			100,398				106,484				335,144				332,602
Total operating expenses			681,780				671,113				2,462,226				2,216,275
Operating loss			(86,598	)			(7,769	)			(780,186	)			(287,137	)
Interest and other income (expense), net
Interest income			1,412				8,769				13,850				54,142
Interest expense			(34,519	)			(24,722	)			(123,076	)			(96,249	)
Other income (expense), net			(16,169	)			(999	)			(11,636	)			(2,407	)
Total interest and other income (expense), net			(49,276	)			(16,952	)			(120,862	)			(44,514	)
Loss before income taxes			(135,874	)			(24,721	)			(901,048	)			(331,651	)
Income tax provision (benefit)			3,674				(1,993	)			6,932				5,017
Net loss		$	(139,548	)		$	(22,728	)		$	(907,980	)		$	(336,668	)
Basic and diluted net loss per share		$	(0.86	)		$	(0.15	)		$	(5.68	)		$	(2.22	)
Weighted-average shares used in computing basic and diluted net loss per share			162,009				155,915				159,744				151,949

Splunk Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
		January 31, 2021				January 31, 2020
Assets
Current assets
Cash and cash equivalents		$	1,771,064			$	778,653
Investments, current			87,847				976,508
Accounts receivable, net			1,114,199				838,743
Prepaid expenses and other current assets			162,939				129,839
Deferred commissions, current			136,331				99,072
Total current assets			3,272,380				2,822,815
Investments, non-current			13,728				35,370
Accounts receivable, non-current			347,202				468,934
Operating lease right-of-use assets			356,296				267,086
Property and equipment, net			182,780				156,928
Intangible assets, net			206,153				238,415
Goodwill			1,334,888				1,292,840
Deferred commissions, non-current			69,637				88,990
Other assets			85,422				68,093
Total assets		$	5,868,486			$	5,439,471
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	9,319			$	18,938
Accrued compensation			281,986				286,159
Accrued expenses and other liabilities			202,959				177,822
Deferred revenue, current			1,030,484				829,377
Total current liabilities			1,524,748				1,312,296
Convertible senior notes, net			2,302,635				1,714,630
Operating lease liabilities			330,970				235,631
Deferred revenue, non-current			110,418				176,832
Other liabilities, non-current			5,710				653
Total non-current liabilities			2,749,733				2,127,746
Total liabilities			4,274,481				3,440,042
Stockholders’ equity
Common stock			163				157
Accumulated other comprehensive loss			(592	)			(5,312	)
Additional paid-in capital			4,063,885				3,566,055
Accumulated deficit			(2,469,451	)			(1,561,471	)
Total stockholders’ equity			1,594,005				1,999,429
Total liabilities and stockholders’ equity		$	5,868,486			$	5,439,471

Splunk Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Three Months Ended January 31,								Fiscal Year Ended January 31,
			2021				2020				2021				2020
Cash flows from operating activities
Net loss		$	(139,548	)		$	(22,728	)		$	(907,980	)		$	(336,668	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			26,397				21,582				93,666				67,661
Amortization of deferred commissions			42,878				29,275				142,095				104,353
Amortization of investment premiums (accretion of discounts), net			223				(1,584	)			(667	)			(9,553	)
Loss on strategic investment			4,500				–				4,500				–
Amortization of debt discount and issuance costs			27,322				20,679				98,977				80,156
Gain on extinguishment of convertible senior notes			–				–				(6,952	)			–
Repurchase of convertible senior notes attributable to the accreted interest related to debt discount			–				–				(22,149	)			–
Non-cash operating lease costs			9,627				(6,313	)			25,410				1,198
Stock-based compensation			166,174				166,496				618,655				545,424
Disposal of property and equipment			64				1,974				1,045				1,974
Deferred income taxes			(1,581	)			(5,722	)			(3,590	)			(6,120	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net			(344,617	)			(365,503	)			(153,724	)			(679,891	)
Prepaid expenses and other assets			(31,020	)			(37,027	)			(45,476	)			(69,575	)
Deferred commissions			(60,230	)			(64,965	)			(160,001	)			(149,426	)
Accounts payable			(3,903	)			(4,312	)			(9,082	)			(5,441	)
Accrued compensation			(4,115	)			71,719				(3,805	)			58,898
Accrued expenses and other liabilities			17,311				(13,011	)			3,814				(10,392	)
Deferred revenue			266,752				150,609				134,402				119,766
Net cash used in operating activities			(23,766	)			(58,831	)			(190,862	)			(287,636	)
Cash flows from investing activities
Purchases of investments			–				(270,632	)			(87,135	)			(1,086,317	)
Maturities of investments			252,558				274,841				995,878				1,080,812
Acquisitions, net of cash acquired			(44,625	)			(18,574	)			(56,383	)			(594,870	)
Purchases of property and equipment			(8,800	)			(47,595	)			(37,107	)			(101,119	)
Capitalized software development costs			(3,899	)			(2,589	)			(14,602	)			(2,589	)
Other investment activities			–				(148	)			(3,461	)			(3,898	)
Net cash provided by (used in) investing activities			195,234				(64,697	)			797,190				(707,981	)
Cash flows from financing activities
Proceeds from the exercise of stock options			389				2,919				3,473				3,543
Proceeds from employee stock purchase plan			35,735				25,901				79,949				60,383
Proceeds from the issuance of convertible senior notes, net of issuance costs			–				–				1,246,544				–
Purchase of capped calls			–				–				(137,379	)			–
Partial repurchase of convertible senior notes			–				–				(668,929	)			–
Taxes paid related to net share settlement of equity awards			(91,541	)			–				(140,776	)			(164,160	)
Net cash provided by (used in) financing activities			(55,417	)			28,820				382,882				(100,234	)
Effect of exchange rate changes on cash and cash equivalents			2,750				(109	)			3,201				(1,661	)
Net increase (decrease) in cash and cash equivalents			118,801				(94,817	)			992,411				(1,097,512	)
Cash and cash equivalents at beginning of period			1,652,263				873,470				778,653				1,876,165
Cash and cash equivalents at end of period		$	1,771,064			$	778,653			$	1,771,064			$	778,653

Splunk Inc.

Operating Metrics

Total Annual Recurring Revenue (“Total ARR”) represents the annualized revenue run-rate of active subscription, term license, and maintenance contracts at the end of a reporting period. Cloud Annual Recurring Revenue (“Cloud ARR”) represents the annualized revenue run-rate of active subscription contracts at the end of a reporting period. Contracts are annualized by dividing the total contract value by the number of days in the contract term and then multiplying by 365.

Non-GAAP Financial Measures and Reconciliations

To supplement Splunk’s condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Splunk provides investors with the following non-GAAP financial measures: cloud services cost of revenues, cloud services gross margin, cost of revenues, gross margin, research and development expense, sales and marketing expense, general and administrative expense, operating income (loss), operating margin, income tax provision (benefit), net income (loss), net income (loss) per share and free cash flow (collectively the “non-GAAP financial measures”). These non-GAAP financial measures exclude all or a combination of the following (as reflected in the following reconciliation tables): expenses related to stock-based compensation and related employer payroll tax, amortization of intangible assets, restructuring and facility exit charges, acquisition-related adjustments, capitalized software development costs, a legal settlement charge, non-cash interest expense related to convertible senior notes, a gain on extinguishment of convertible senior notes and a strategic investment impairment. The non-GAAP financial measures are also adjusted for Splunk’s estimated tax rate on non-GAAP income (loss). To determine the estimated non-GAAP tax rate, Splunk evaluates financial projections based on its non-GAAP results and the tax effect of those projections. The estimated non-GAAP tax rate takes into account many factors including our operating structure and tax positions. The non-GAAP tax rate applied to the three and twelve months ended January 31, 2021 was 20%. The applicable fiscal 2020 tax rates are noted in the reconciliations. In addition, non-GAAP financial measures include free cash flow, which represents operating cash flow less purchases of property and equipment. Splunk considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated or used by the business.

Splunk excludes stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding Splunk’s operational performance and allows investors the ability to make more meaningful comparisons between Splunk’s operating results and those of other companies. Splunk excludes employer payroll tax expense related to employee stock plans in order for investors to see the full effect that excluding that stock-based compensation expense had on Splunk’s operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of Splunk’s common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of Splunk’s business. Splunk also excludes amortization of intangible assets, restructuring and facility exit charges, acquisition-related adjustments, capitalized software development costs, a legal settlement charge, non-cash interest expense related to convertible senior notes, a gain on extinguishment of convertible senior notes and a strategic investment impairment from the applicable non-GAAP financial measures because these adjustments are considered by management to be outside of Splunk’s core operating results.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by Splunk’s competitors and exclude expenses that may have a material impact upon Splunk’s reported financial results. Further, stock-based compensation expense has been and will continue to be, for the foreseeable future, a significant recurring expense in Splunk’s business and an important part of the compensation provided to Splunk’s employees. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Splunk uses these non-GAAP financial measures for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Splunk believes that these non-GAAP financial measures provide useful information about Splunk’s operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. In addition, these non-GAAP financial measures facilitate comparisons to competitors’ operating results. The non-GAAP financial measures are meant to supplement and be viewed in conjunction with GAAP financial measures.

The following tables reconcile Splunk’s GAAP results to Splunk’s non-GAAP results included in this press release.

SPLUNK INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Reconciliation of Cash Used in Operating Activities to Free Cash Flow
	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2021			2020			2021			2020
Net cash used in operating activities	$	(23,766	)	$	(58,831	)	$	(190,862	)	$	(287,636	)
Less purchases of property and equipment		(8,800	)		(47,595	)	$	(37,107	)		(101,119	)
Free cash flow (non-GAAP)	$	(32,566	)	$	(106,426	)	$	(227,969	)	$	(388,755	)
Net cash provided by (used in) investing activities	$	195,234		$	(64,697	)	$	797,190		$	(707,981	)
Net cash provided by (used in) financing activities	$	(55,417	)	$	28,820		$	382,882		$	(100,234	)

Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended January 31, 2021
	GAAP				Stock-based compensation and related employer payroll tax				Amortization of intangible assets				Acquisition- related adjustments				Restructuring and facility exit charges				Capitalized software development costs				Non-cash interest expense related to convertible senior notes				Impairment of strategic investment				Income tax adjustment (2)				Non-GAAP
Cloud services cost of revenues	$	75,718			$	(3,105	)		$	(7,163	)		$	–			$	257			$	–			$	–			$	–			$	–			$	65,707
Cloud services gross margin		55.8	%			1.8	%			4.2	%			–	%			(0.1	)%			–	%			–	%			–	%			–	%			61.7	%
Cost of revenues		149,896				(15,947	)			(9,862	)			–				257				(594	)			–				–				–				123,750
Gross margin		79.9	%			2.1	%			1.3	%			–	%			–	%			0.1	%			–	%			–	%			–	%			83.4	%
Research and development		211,383				(74,640	)			–				–				(2,972	)			3,899				–				–				–				137,670
Sales and marketing		369,999				(48,789	)			(4,746	)			–				–				–				–				–				–				316,464
General and administrative		100,398				(30,669	)			–				(1,119	)			–				–				–				–				–				68,610
Operating income (loss)		(86,598	)			170,045				14,608				1,119				2,715				(3,305	)			–				–				–				98,584
Operating margin		(11.6	)%			22.7	%			1.9	%			0.2	%			0.4	%			(0.4	)%			–	%			–	%			–	%			13.2	%
Income tax provision		3,674				–				–				–				–				–				–				–				12,552				16,226
Net income (loss)	$	(139,548	)		$	170,045			$	14,608			$	1,119			$	2,715			$	(3,305	)		$	27,322			$	4,500			$	(12,552	)		$	64,904
Net income (loss) per share (1)	$	(0.86	)																																		$	0.38

___________________________
(1)		GAAP net loss per share calculated based on 162,009 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 168,711 diluted weighted-average shares of common stock, which includes 6,702 potentially dilutive shares related to employee stock awards and conversion spread on our convertible notes. GAAP to non-GAAP net income (loss) per share is not reconciled due to the difference in the number of shares used to calculate basic and diluted weighted-average shares of common stock.
(2)		Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.

Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended January 31, 2020
	GAAP				Stock-based compensation and related employer payroll tax				Amortization of intangible assets				Restructuring and facility exit charges				Capitalized software development costs				Legal settlement charge				Non-cash interest expense related to convertible senior notes				Income tax adjustment (2)				Non-GAAP
Cloud services cost of revenues	$	52,985			$	(2,756	)		$	(4,488	)		$	–			$	–			$	–			$	–			$	–			$	45,741
Cloud services gross margin		46.7	%			2.8	%			4.5	%			–	%			–	%			–	%			–	%			–	%			54.0	%
Cost of revenues		127,838				(13,136	)			(9,854	)			–				–				–				–				–				104,848
Gross margin		83.8	%			1.7	%			1.2	%			–	%			–	%			–	%			–	%			–	%			86.7	%
Research and development		197,513				(59,865	)			(25	)			(5,628	)			2,589				–				–				–				134,584
Sales and marketing		367,116				(68,156	)			(4,333	)			–				–				–				–				–				294,627
General and administrative		106,484				(29,733	)			–				(482	)			–				(10,000	)			–				–				66,269
Operating income (loss)		(7,769	)			170,890				14,212				6,110				(2,589	)			10,000				–				–				190,854
Operating margin		(1.0	)%			21.5	%			1.8	%			0.8	%			(0.3	)%			1.3	%			–	%			–	%			24.1	%
Income tax provision (benefit)		(1,993	)			–				–				–				–				–				–				40,910				38,917
Net income (loss)	$	(22,728	)		$	170,890			$	14,212			$	6,110			$	(2,589	)		$	10,000			$	20,679			$	(40,910	)		$	155,664
Net income (loss) per share (1)	$	(0.15	)																														$	0.96

___________________________
(1)		GAAP net loss per share calculated based on 155,915 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 161,389 diluted weighted-average shares of common stock, which includes 5,474 potentially dilutive shares related to employee stock awards. GAAP to non-GAAP net income (loss) per share is not reconciled due to the difference in the number of shares used to calculate basic and diluted weighted-average shares of common stock.
(2)		Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.

Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal Year Ended January 31, 2021
	GAAP				Stock-based compensation and related employer payroll tax				Amortization of intangible assets				Acquisition -related adjustments				Restructuring and facility exit charges					Capitalized software development costs				Non-cash interest expense related to convertible senior notes					Impairment of strategic investment				Income tax adjustment (4)				Non-GAAP
Cloud services cost of revenues	$	252,290			$	(11,026	)		$	(23,169	)		$	–			$	28				$	–			$	–				$	–			$	–			$	218,123
Cloud services gross margin		54.5	%			2.0	%			4.1	%			–	%			–	%				–	%			–	%				–	%			–	%			60.6	%
Cost of revenues		547,345				(58,828	)			(40,245	)			–				(240	)				(1,188	)			–					–				–				446,844
Gross margin		75.4	%			2.6	%			1.9	%			–	%			–	%				0.1	%			–	%				–	%			–	%			80.0	%
Research and development		791,026				(278,677	)			(25	)			–				(5,856	)				14,602				–					–				–				521,070
Sales and marketing		1,336,056				(206,380	)			(17,745	)			–				(1,168	)				–				–					–				–				1,110,763
General and administrative		335,144				(95,545	)			–				(3,342	)			(518	)				–				–					–				–				235,739
Operating loss		(780,186	)			639,430				58,015				3,342				7,782					(13,414	)			–					–				–				(85,031	)
Operating margin		(35.0	)%			28.7	%			2.7	%			0.1	%			0.3	%				(0.6	)%			–	%				–	%			–	%			(3.8	)%
Income tax provision (benefit)		6,932				–				–				–				–					–				–					–				(28,711	)			(21,779	)
Net loss	$	(907,980	)		$	639,430			$	58,015			$	3,342			$	8,258		(2	)	$	(13,414	)		$	92,024		(3	)	$	4,500			$	28,711			$	(87,114	)
Net loss per share (1)	$	(5.68	)		$	4.00			$	0.35			$	0.02			$	0.05				$	(0.08	)		$	0.58				$	0.03			$	0.18			$	(0.55	)

___________________________
(1)		Calculated based on 159,744 weighted-average shares of common stock.
(2)		Includes a $0.5 million loss on disposal of property, plant and equipment.
(3)		Includes non-cash interest expense of $99.0 million and a $7.0 million non-recurring gain on extinguishment of convertible senior notes.
(4)		Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.

Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal Year Ended January 31, 2020
	GAAP				Stock-based compensation and related employer payroll tax				Amortization of intangible assets				Acquisition -related adjustments				Restructuring and facility exit charges				Capitalized software development costs				Legal settlement charge				Non-cash interest expense related to convertible senior notes				Income tax adjustment (2)				Non-GAAP
Cloud services cost of revenues	$	161,510			$	(7,465	)		$	(7,822	)		$	–			$	–			$	–			$	–			$	–			$	–			$	146,223
Cloud services gross margin		48.3	%			2.4	%			2.5	%			–	%			–	%			–	%			–	%			–	%			–	%			53.2	%
Cost of revenues		429,788				(46,478	)			(29,516	)			–				–				–				–				–				–				353,794
Gross margin		81.8	%			1.9	%			1.3	%			–	%			–	%			–	%			–	%			–	%			–	%			85.0	%
Research and development		619,800				(190,404	)			(697	)			(12	)			(5,628	)			2,589				–				–				–				425,648
Sales and marketing		1,263,873				(223,812	)			(8,324	)			(172	)			–				–				–				–				–				1,031,565
General and administrative		332,602				(101,939	)			–				(7,408	)			(482	)			–				(10,000	)			–				–				212,773
Operating income (loss)		(287,137	)			562,633				38,537				7,592				6,110				(2,589	)			10,000				–				–				335,146
Operating margin		(12.2	)%			23.9	%			1.6	%			0.3	%			0.3	%			(0.1	)%			0.4	%			–	%			–	%			14.2	%
Income tax provision		5,017				–				–				–				–				–				–				–				69,141				74,158
Net income (loss)	$	(336,668	)		$	562,633			$	38,537			$	7,592			$	6,110			$	(2,589	)		$	10,000			$	80,157			$	(69,141	)		$	296,631
Net income (loss) per share (1)	$	(2.22	)																																		$	1.88

___________________________
(1)		GAAP net loss per share calculated based on 151,949 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 157,815 diluted weighted-average shares of common stock, which includes 5,866 potentially dilutive shares related to employee stock awards. GAAP to non-GAAP net income (loss) per share is not reconciled due to the difference in the number of shares used to calculate basic and diluted weighted-average shares of common stock.
(2)		Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005849/en/

Media Contact

Bill Bode

Splunk Inc.

[email protected]

Investor Contact

Ken Tinsley

Splunk Inc.

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Networks Internet Data Management Technology Software

MEDIA:

Posted on March 3, 2021 4:05 pm

RADA Announces Proposed Public Offering of Ordinary Shares

NETANYA, Israel, March 03, 2021 (GLOBE NEWSWIRE) — RADA Electronic Industries Ltd. (“RADA”) (NASDAQ and TASE: RADA), a global defense technology company, today announced that it intends to offer and sell its ordinary shares in an underwritten public offering. RADA also expects to grant to the underwriters a 30-day option to purchase up to an additional 15% of its ordinary shares sold in the offering on the same terms and conditions.  There can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the offering.

RADA intends to use the net proceeds from this offering for general corporate purposes.

Jefferies LLC, Baird and Canaccord Genuity are acting as joint bookrunners for this offering. A.G.P./Alliance Global Partners is acting as lead manager in the offering.

The offering is being made pursuant to an effective shelf registration statement (File No. 333-252015) declared effective by the Securities and Exchange Commission on January 21, 2021. A prospectus supplement and accompanying base prospectus relating to the offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from the Securities and Exchange Commission at http://www.sec.gov, Alternatively, copies of the prospectus supplement and accompanying base prospectus may be obtained from Jefferies LLC Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone at (877) 821-7388 or by email at [email protected]; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 East Wisconsin Avenue, Milwaukee, WI 53202, by telephone at (800) 792-2473 or by email at [email protected]; and Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, Suite 1200, Boston, MA 02110, by email at [email protected].

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

About RADA

RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications.

Safe Harbor Statement

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995, including statements regarding RADA’s expectations with respect to its proposed offering and its intended use of proceeds from the offering. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in RADA’s business, including, but not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in RADA’s Annual Report on Form 20-F for the year ended December 31, 2020, and other filings with the Securities and Exchange Commission.

Company Contact: Avi Israel, CFO Tel: +972-765-386-200         [email protected] www.rada.com

Investor Relations Contact: GK Investor Relations Ehud Helft Tel: 1 646 688 3559 [email protected]