Market Newsdesk

March 11, 2021 4:08 pm

RBC Global Asset Management Inc. seeks new sub-advisor for RBC Private Overseas Equity Pool

Canada NewsWire

TORONTO, March 11, 2021 /CNW/ – RBC Global Asset Management Inc. (“RBC GAM Inc.”) today announced that it has begun a search to identify a replacement sub-advisor for RBC Private Overseas Equity Pool (“the Pool”). Edinburgh Partners Limited will continue its role as sub-advisor to the Pool until another sub-advisor is identified. RBC GAM Inc. will provide investment management oversight for the Pool to ensure a smooth transition.

Please consult your advisor and read the prospectus or Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. RBC Funds, BlueBay Funds and PH&N Funds are offered by RBC GAM Inc. and distributed through authorized dealers in Canada. RBC GAM Inc. is a member of the RBC GAM group of companies and an indirect wholly-owned subsidiary of Royal Bank of Canada.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 86,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

About RBC Global Asset Management

RBC Global Asset Management
(RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes money managers BlueBay Asset Management and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. The RBC GAM group of companies manage approximately $540 billion in assets and have approximately 1,400 employees located across Canada, the United States, Europe and Asia.

SOURCE RBC Global Asset Management Inc.

March 11, 2021 4:08 pm

DocuSign Announces Fourth Quarter and Fiscal Year 2021 Financial Results

PR Newswire

SAN FRANCISCO, March 11, 2021 /PRNewswire/ — DocuSign, Inc. (NASDAQ: DOCU), which offers the world’s #1 eSignature solution as part of the DocuSign Agreement Cloud, today announced results for its fourth quarter and fiscal year ended January 31, 2021.

“Fiscal 2021 was a milestone year for DocuSign. We became a pillar of the ‘anywhere economy’ that lets people increasingly do anything in life and work from anywhere,” said Dan Springer, CEO of DocuSign. “In the process, we grew our business nearly 50%, reached almost $1.5 billion in revenues, and achieved a record net retention rate of 123%. We believe this performance represents an acceleration of the ongoing trend towards the digital transformation of agreements.”

Fourth Quarter Financial Highlights

Total revenue was $430.9 million, an increase of 57% year-over-year. Subscription revenue was $410.2 million, an increase of 59% year-over-year. Professional services and other revenue was $20.7 million, an increase of 23% year-over-year.
Billings were $534.9 million, an increase of 46% year-over-year.
GAAP gross margin was 76%, compared to 75% in the same period last year. Non-GAAP gross margin was 80% compared to 79% in the same period last year.
GAAP net loss per share was $0.38 on 189 million shares outstanding compared to $0.26 on 181 million shares outstanding in the same period last year.
Non-GAAP net income per diluted share was $0.37 on 209 million shares outstanding compared to $0.12 on 194 million shares outstanding in the same period last year.
Net cash provided by operating activities was $62.2 million compared to $45.5 million in the same period last year.
Free cash flow was $44.0 million compared to $15.5 million in the same period last year. Free cash flow includes a portion of the Q4’21 repayment of convertible senior notes of $75.2 million.
Cash, cash equivalents, restricted cash and investments were $866.5 million at the end of the quarter.

Fiscal 2021 Financial Highlights

Total revenue was $1.5 billion, an increase of 49% year-over-year. Subscription revenue was $1.4 billion, an increase of 50% year-over-year. Professional services and other revenue was $71.7 million, an increase of 29% year-over-year.
Billings were $1.7 billion, an increase of 56% year-over-year.
GAAP gross margin was 75% in both periods. Non-GAAP gross margin was 79% in both periods.
GAAP net loss per share was $1.31 on 186 million shares outstanding compared to $1.18 on 177 million shares outstanding in fiscal 2020.
Non-GAAP net income per diluted share was $0.90 on 204 million shares outstanding compared to $0.31 on 191 million shares outstanding in fiscal 2020.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Other Key Metrics.”

Operational and Other Financial Highlights

Convertible Senior Notes: On January 15, 2021, the company issued $690 million of 0% convertible senior notes due in 2024. The company used a significant portion of the net proceeds, together with shares of DocuSign common stock, to repurchase a majority of its existing convertible senior notes due in 2023 and intends to use the remainder of the proceeds for working capital and other general corporate purposes.
Credit Facility: On January 11, 2021, the company closed a new $500 million, 5-year senior secured revolving credit facility, with an accordion feature allowing for an additional $250 million capacity. The facility will help to further optimize the company’s financial position and provide it with greater balance sheet flexibility to deliver on its growth agenda.

Outlook

The company currently expects the following guidance:

▪ Quarter ending April 30, 2021 (in millions, except percentages):
Total revenue	$432	to	$436
Subscription revenue	$415	to	$419
Billings	$457	to	$467
Non-GAAP gross margin	79%	to	81%
Non-GAAP operating margin	12%	to	14%
Non-GAAP diluted weighted-average shares outstanding	205	to	210

▪ Fiscal year ending January 31, 2022 (in millions, except percentages):
Total revenue	$1,963	to	$1,973
Subscription revenue	$1,886	to	$1,896
Billings	$2,260	to	$2,280
Non-GAAP gross margin	79%	to	81%
Non-GAAP operating margin	13%	to	15%
Provision for income taxes	$8	to	$10
Non-GAAP diluted weighted-average shares outstanding	205	to	210

The company has not reconciled its expectations of non-GAAP financial measures to the corresponding GAAP measures because stock-based compensation expense cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Webcast Conference Call Information

The company will host a conference call on March 11, 2021 at 1:30 p.m. PT (4:30 p.m. ET) to discuss its financial results. A live webcast of the event will be available on the DocuSign Investor Relations website at investor.docusign.com. A live dial-in will be available domestically at 877-407-0784 or internationally at 201-689-8560. A replay will be available domestically at 844-512-2921 or internationally at 412-317-6671 until midnight (ET) March 25, 2021, using the passcode 13716345.

About DocuSign

DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements. As part of the DocuSign Agreement Cloud, DocuSign offers eSignature, the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time. Today, more than 890,000 customers and hundreds of millions of users in over 180 countries use DocuSign to accelerate the process of doing business and to simplify people’s lives.

For more information, visit www.docusign.com, call +1-877-720-2040, or follow @DocuSign on Twitter, LinkedIn, Facebook and Instagram.

Investor Relations:

Annie Leschin

VP Investor Relations
[email protected]

Media Relations:

Adrian Wainwright

Head of Communications
[email protected]

Forward-Looking Statements

This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, among other things, statements under “Outlook” above and any other statements about expected financial metrics, such as revenue, billings, non-GAAP gross margin, non-GAAP diluted weighted-average shares outstanding, and non-financial metrics, such as customer growth, as well as statements related to our expectations regarding the benefits of the DocuSign Agreement Cloud and enhancements to it, additions to the DocuSign Agreement Cloud software suite of products, including as a result of acquisitions, and the anticipated benefits of our issuances of convertible notes and the establishment of our credit facility. They also include statements about our future operating results and financial position, our business strategy and plans, market growth and trends, and our objectives for future operations. These statements are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These risks and uncertainties include, among other things, risks related to our ability to estimate the size of our total addressable market; our expectations regarding the impact of the ongoing COVID-19 pandemic on our business, the results of our operations and our financial condition, as well as our future profitability and growth once the pandemic has abated; our expectations regarding the impact of the ongoing COVID-19 pandemic on the businesses of our customers, partners and suppliers, and the economy; our ability to effectively sustain and manage our growth and future expenses, achieve and maintain future profitability, attract new customers and maintain and expand our existing customer base; our ability to scale and update our platform to respond to customers’ needs and rapid technological change; the effects of increased competition in our market and our ability to compete effectively; our ability to expand use cases within existing customers and vertical solutions; our ability to expand our operations and increase adoption of our platform internationally; our ability to strengthen and foster our relationship with developers; our ability to expand our direct sales force, customer success team and strategic partnerships around the world; our ability to identify targets for and execute potential acquisitions; our ability to successfully integrate the operations of businesses we may acquire, or to realize the anticipated benefits of such acquisitions; our ability to maintain, protect and enhance our brand; the sufficiency of our cash and cash equivalents to satisfy our liquidity needs; limitations on us due to obligations we have under our credit facility or other indebtedness; our failure or the failure of our software suite of services to comply with applicable industry standards, laws and regulations; our ability to maintain, protect and enhance our intellectual property; our ability to successfully defend litigation against us; our ability to attract large organizations as users; our ability to maintain our corporate culture; our ability to offer high-quality customer support; our ability to hire, retain and motivate qualified personnel; our ability to estimate the size and potential growth of our target market; our ability to maintain proper and effective internal controls. Additional risks and uncertainties that could affect our financial results are included in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our quarterly report on Form 10-Q for the quarter ended October 31, 2020 filed on December 4, 2020 with the Securities and Exchange Commission (the “SEC”), and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures and Other Key Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance using a management view, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income per share: We define these non-GAAP financial measures as the respective GAAP measures, excluding expenses related to stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquisition-related intangibles, amortization of debt discount and issuance costs, acquisition-related expenses, loss on extinguishment of debt, tax impact related to an intercompany IP transfer and, as applicable, other special items. The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of the business. When evaluating the performance of our business and making operating plans, we do not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies and over multiple periods.

Free cash flow: We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

Billings: We define billings as total revenues plus the change in our contract liabilities and refund liability less contract assets and unbilled accounts receivable in a given period. Billings reflects sales to new customers plus subscription renewals and additional sales to existing customers. Only amounts invoiced to a customer in a given period are included in billings. We believe billings is a key metric to measure our periodic performance. Given that most of our customers pay in annual installments one year in advance, but we typically recognize a majority of the related revenue ratably over time, we use billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended January 31,				Year Ended January 31,
(in thousands, except per share data)	2021		2020		2021		2020
Revenue:
Subscription	$	410,215	$	258,122	$	1,381,397	$	918,463
Professional services and other	20,683		16,773		71,650		55,508
Total revenue	430,898		274,895		1,453,047		973,971
Cost of revenue:
Subscription	73,347		48,162		259,992		163,931
Professional services and other	28,233		19,913		104,066		79,303
Total cost of revenue	101,580		68,075		364,058		243,234
Gross profit	329,318		206,820		1,088,989		730,737
Operating expenses:
Sales and marketing	221,896		161,326		798,625		591,379
Research and development	80,135		52,094		271,522		185,552
General and administrative	52,184		35,753		192,697		147,315
Total operating expenses	354,215		249,173		1,262,844		924,246
Loss from operations	(24,897)		(42,353)		(173,855)		(193,509)
Interest expense	(7,786)		(7,461)		(30,799)		(29,254)
Loss on extinguishment of debt	(33,752)		—		(33,752)		—
Interest income and other income, net	2,882		3,658		8,914		19,207
Loss before provision for income taxes	(63,553)		(46,156)		(229,492)		(203,556)
Provision for income taxes	8,859		1,251		13,775		4,803
Net loss	$	(72,412)	$	(47,407)	$	(243,267)	$	(208,359)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.38)	$	(0.26)	$	(1.31)	$	(1.18)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted	188,717		180,859		185,760		176,704

Stock-based compensation expense included in costs and expenses:
Cost of revenue—subscription	$	6,138	$	3,951	$	20,793	$	12,882
Cost of revenue—professional services and other	6,510		3,826		21,865		15,703
Sales and marketing	37,190		26,170		131,041		94,863
Research and development	20,328		12,252		65,890		43,211
General and administrative	13,473		9,406		47,288		39,745

DOCUSIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(in thousands, except share and per share data)	January 31, 2021		January 31, 2020
Assets
Current assets
Cash and cash equivalents	$	566,055	$	241,203
Investments—current	207,450		414,939
Accounts receivable, net	323,570		237,841
Contract assets—current	16,883		12,502
Prepaid expenses and other current assets	48,390		37,405
Total current assets	1,162,348		943,890
Investments—noncurrent	92,717		239,729
Property and equipment, net	165,039		128,293
Operating lease right-of-use assets	159,352		149,833
Goodwill	350,151		194,882
Intangible assets, net	121,828		56,500
Deferred contract acquisition costs—noncurrent	260,130		153,333
Other assets—noncurrent	24,942		24,678
Total assets	$	2,336,507	$	1,891,138
Liabilities and Equity
Current liabilities
Accounts payable	$	37,367	$	28,144
Accrued expenses and other current liabilities	66,566		54,344
Accrued compensation	156,158		83,189
Convertible senior notes—current	20,469		—
Contract liabilities—current	779,642		507,560
Operating lease liabilities—current	32,971		20,728
Total current liabilities	1,093,173		693,965
Convertible senior notes, net—noncurrent	693,219		465,321
Operating lease liabilities—noncurrent	165,704		162,432
Contract liabilities—noncurrent	16,492		11,478
Deferred tax liability—noncurrent	6,464		4,920
Other liabilities—noncurrent	32,328		6,695
Total liabilities	2,007,380		1,344,811
Convertible senior notes	3,390		—
Stockholders’ equity
Common stock	19		18
Treasury stock	(1,048)		—
Additional paid-in capital	1,702,254		1,685,167
Accumulated other comprehensive gains (loss)	4,964		(1,673)
Accumulated deficit	(1,380,452)		(1,137,185)
Total stockholders’ equity	325,737		546,327
Total liabilities and equity	$	2,336,507	$	1,891,138

DOCUSIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Three Months Ended January 31,				Year Ended January 31,
(in thousands)	2021		2020		2021		2020
Cash flows from operating activities:
Net loss	$	(72,412)	$	(47,407)	$	(243,267)	$	(208,359)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	19,635		13,266		71,090		50,182
Amortization of deferred contract acquisition and fulfillment costs	28,597		20,387		99,384		69,747
Amortization of debt discount and transaction costs	7,173		6,742		28,001		26,389
Loss on extinguishment of debt	33,752		—		33,752		—
Operating cash flow related to repayments of convertible senior notes	(75,165)		—		(75,165)		—
Non-cash operating lease costs	6,646		5,592		26,728		19,435
Stock-based compensation expense	83,639		55,605		286,877		206,404
Deferred income taxes	(1,360)		1,245		(2,410)		1,287
Other	(1,416)		401		(210)		(1,741)
Changes in operating assets and liabilities
Accounts receivable	(62,484)		(78,377)		(73,913)		(63,293)
Contract assets	5,802		5,715		1,912		(1,508)
Prepaid expenses and other current assets	680		(1,106)		(1,155)		(3,142)
Deferred contract acquisition and fulfillment costs	(63,871)		(37,923)		(208,510)		(115,723)
Other assets	457		612		(6,006)		1,538
Accounts payable	8,473		1,543		12,128		3,849
Accrued expenses and other liabilities	15,203		4,662		37,155		9,353
Accrued compensation	41,033		12,329		64,586		5,636
Contract liabilities	95,230		85,957		267,750		130,266
Operating lease liabilities	(7,379)		(3,738)		(21,773)		(14,624)
Net cash provided by operating activities	62,233		45,505		296,954		115,696
Cash flows from investing activities:
Cash paid for acquisition, net of acquired cash	—		—		(180,370)		—
Purchases of marketable securities	(84,340)		(107,318)		(164,989)		(861,252)
Sales of marketable securities	—		—		28,986		—
Maturities of marketable securities	83,756		166,599		488,538		627,309
Purchases of strategic investments	—		—		(5,300)		(15,500)
Purchases of other investments	—		—		(3,241)		—
Purchases of property and equipment	(18,251)		(29,975)		(82,395)		(72,046)
Net cash (used in) provided by investing activities	(18,835)		29,306		81,229		(321,489)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of initial purchasers’ discounts and transaction costs	677,370		—		677,370		—
Purchase of capped calls related to issuance of convertible senior notes	(31,395)		—		(31,395)		—
Repayments of convertible senior notes	(384,199)		—		(384,199)		—
Payment of revolving credit facility costs	(2,453)		—		(2,453)		—
Payment of tax withholding obligation on RSU settlement and ESPP purchase	(125,186)		(41,216)		(372,463)		(166,504)
Proceeds from exercise of stock options	9,322		9,914		24,305		72,177
Proceeds from employee stock purchase plan	—		—		29,859		23,872
Net cash (used in) provided by financing activities	143,459		(31,302)		(58,976)		(70,455)
Effect of foreign exchange on cash, cash equivalents and restricted cash	4,214		(137)		5,646		(447)
Net increase (decrease) in cash, cash equivalents and restricted cash	191,071		43,372		324,853		(276,695)
Cash, cash equivalents and restricted cash at beginning of period ⁽¹⁾	375,265		198,111		241,483		518,178
Cash, cash equivalents and restricted cash at end of period ⁽¹⁾	$	566,336	$	241,483	$	566,336	$	241,483

(1) $0.3 million of restricted cash was included in Other assets—noncurrent at January 31, 2021 and Prepaid expenses and other current assets at January 31, 2020.

DOCUSIGN, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

Reconciliation of gross profit and gross margin:
	Three Months Ended January 31,						Year Ended January 31,
(in thousands)	2021			2020			2021			2020
GAAP gross profit	$	329,318		$	206,820		$	1,088,989		$	730,737
Add: Stock-based compensation	12,648			7,777			42,658			28,585
Add: Amortization of acquisition-related intangibles	3,196			1,348			11,052			5,704
Add: Employer payroll tax on employee stock transactions	1,454			668			5,904			2,577
Non-GAAP gross profit	$	346,616		$	216,613		$	1,148,603		$	767,603
GAAP gross margin	76		%	75		%	75		%	75		%
Non-GAAP adjustments	4		%	4		%	4		%	4		%
Non-GAAP gross margin	80		%	79		%	79		%	79		%

GAAP subscription gross profit	$	336,868		$	209,960		$	1,121,405		$	754,532
Add: Stock-based compensation	6,138			3,951			20,793			12,882
Add: Amortization of acquisition-related intangibles	3,196			1,348			11,052			5,704
Add: Employer payroll tax on employee stock transactions	679			285			2,862			1,054
Non-GAAP subscription gross profit	$	346,881		$	215,544		$	1,156,112		$	774,172
GAAP subscription gross margin	82		%	81		%	81		%	82		%
Non-GAAP adjustments	3		%	3		%	3		%	2		%
Non-GAAP subscription gross margin	85		%	84		%	84		%	84		%

GAAP professional services and other gross loss	$	(7,550)		$	(3,140)		$	(32,416)		$	(23,795)
Add: Stock-based compensation	6,510			3,826			21,865			15,703
Add: Employer payroll tax on employee stock transactions	775			383			3,042			1,523
Non-GAAP professional services and other gross profit (loss)	$	(265)		$	1,069		$	(7,509)		$	(6,569)
GAAP professional services and other gross margin	(37)		%	(19)		%	(45)		%	(43)		%
Non-GAAP adjustments	36		%	25		%	35		%	31		%
Non-GAAP professional services and other gross margin	(1)		%	6		%	(10)		%	(12)		%


Reconciliation of operating expenses:
	Three Months Ended January 31,						Year Ended January 31,
(in thousands)	2021			2020			2021			2020
GAAP sales and marketing	$	221,896		$	161,326		$	798,625		$	591,379
Less: Stock-based compensation	(37,190)			(26,170)			(131,041)			(94,863)
Less: Amortization of acquisition-related intangibles	(3,390)			(2,911)			(14,566)			(12,013)
Less: Employer payroll tax on employee stock transactions	(3,198)			(1,413)			(14,190)			(7,023)
Less: Acquisition-related expenses	—			—			(186)			—
Non-GAAP sales and marketing	$	178,118		$	130,832		$	638,642		$	477,480
GAAP sales and marketing as a percentage of revenue	51		%	59		%	55		%	61		%
Non-GAAP sales and marketing as a percentage of revenue	41		%	48		%	44		%	49		%

GAAP research and development	$	80,135		$	52,094		$	271,522		$	185,552
Less: Stock-based compensation	(20,328)			(12,252)			(65,890)			(43,211)
Less: Employer payroll tax on employee stock transactions	(2,012)			(636)			(7,329)			(3,524)
Non-GAAP research and development	$	57,795		$	39,206		$	198,303		$	138,817
GAAP research and development as a percentage of revenue	19		%	19		%	19		%	19		%
Non-GAAP research and development as a percentage of revenue	13		%	14		%	14		%	14		%

GAAP general and administrative	$	52,184		$	35,753		$	192,697		$	147,315
Less: Stock-based compensation	(13,473)			(9,406)			(47,288)			(39,745)
Less: Employer payroll tax on employee stock transactions	(2,612)			(540)			(6,619)			(3,596)
Less: Acquisition-related expenses	—			—			(7,776)			—
Non-GAAP general and administrative	$	36,099		$	25,807		$	131,014		$	103,974
GAAP general and administrative as a percentage of revenue	12		%	12		%	13		%	15		%
Non-GAAP general and administrative as a percentage of revenue	9		%	9		%	9		%	11		%


Reconciliation of income (loss) from operations and operating margin:
	Three Months Ended January 31,						Year Ended January 31,
(in thousands)	2021			2020			2021			2020
GAAP loss from operations	$	(24,897)		$	(42,353)		$	(173,855)		$	(193,509)
Add: Stock-based compensation	83,639			55,605			286,877			206,404
Add: Amortization of acquisition-related intangibles	6,586			4,259			25,618			17,717
Add: Employer payroll tax on employee stock transactions	9,276			3,257			34,042			16,720
Add: Acquisition-related expenses	—			—			7,962			—
Non-GAAP income from operations	$	74,604		$	20,768		$	180,644		$	47,332
GAAP operating margin	(6)		%	(15)		%	(12)		%	(20)		%
Non-GAAP adjustments	23		%	23		%	24		%	25		%
Non-GAAP operating margin	17		%	8		%	12		%	5		%


Reconciliation of net income (loss) and net income (loss) per share, basic and diluted:
	Three Months Ended January 31,						Year Ended January 31,
(in thousands, except per share data)	2021			2020			2021			2020
GAAP net loss	$	(72,412)		$	(47,407)		$	(243,267)		$	(208,359)
Add: Stock-based compensation	83,639			55,605			286,877			206,404
Add: Amortization of acquisition-related intangibles	6,586			4,259			25,618			17,717
Add: Employer payroll tax on employee stock transactions	9,276			3,257			34,042			16,720
Add: Acquisition-related expenses	—			—			7,962			—
Add: Amortization of debt discount and issuance costs	7,173			6,742			28,001			26,389
Add: Loss on extinguishment of debt	33,752			—			33,752			—
Add: Tax expense related to intercompany IP transfer⁽¹⁾	9,294			—			9,294			—
Non-GAAP net income	$	77,308		$	22,456		$	182,279		$	58,871

Numerator:
Non-GAAP net income and non-GAAP net income attributable to common stockholders, basic	$	77,308		$	22,456		$	182,279		$	58,871
Add: Interest expense on convertible senior notes	617			—			617			—
Non-GAAP net income attributable to common stockholders, diluted	$	77,925		$	22,456		$	182,896		$	58,871

Denominator:
Weighted-average common shares outstanding, basic	188,717			180,859			185,760			176,704
Effect of dilutive securities	19,797			12,869			17,929			14,094
Non-GAAP weighted-average common shares outstanding, diluted	208,514			193,728			203,689			190,798

GAAP net loss per share, basic and diluted	$	(0.38)		$	(0.26)		$	(1.31)		$	(1.18)
Non-GAAP net income per share, basic	0.41			0.12			0.98			0.33
Non-GAAP net income per share, diluted	0.37			0.12			0.90			0.31

⁽¹⁾Represents net change in tax liabilities related to an intercompany IP transfer


Computation of free cash flow:
	Three Months Ended January 31,						Year Ended January 31,
(in thousands)	2021			2020			2021			2020
Net cash provided by operating activities	$	62,233		$	45,505		$	296,954		$	115,696
Less: Purchases of property and equipment	(18,251)			(29,975)			(82,395)			(72,046)
Non-GAAP free cash flow	43,982			15,530			214,559			43,650
Net cash (used in) provided by investing activities	(18,835)			29,306			81,229			(321,489)
Net cash (used in) provided by financing activities	$	143,459		$	(31,302)		$	(58,976)		$	(70,455)


Computation of billings:
	Three Months Ended January 31,						Year Ended January 31,
(in thousands)	2021			2020			2021			2020
Revenue	$	430,898		$	274,895		$	1,453,047		$	973,971
Add: Contract liabilities and refund liability, end of period	800,940			522,201			800,940			522,201
Less: Contract liabilities and refund liability, beginning of period	(702,691)			(435,898)			(522,201)			(390,887)
Add: Contract assets and unbilled accounts receivable, beginning of period	26,808			20,805			15,082			13,436
Less: Contract assets and unbilled accounts receivable, end of period	(21,021)			(15,082)			(21,021)			(15,082)
Add: Contract assets and unbilled accounts receivable contributed by acquisitions	—			—			6,589			—
Less: Contract liabilities and refund liability contributed by acquisitions	—			—			(9,344)			—
Non-GAAP billings	$	534,934		$	366,921		$	1,723,092		$	1,103,639

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March 11, 2021 4:08 pm

Vail Resorts Reports Fiscal 2021 Second Quarter Results and Provides Outlook for Fiscal 2021 Third Quarter

PR Newswire

BROOMFIELD, Colo., March 11, 2021 /PRNewswire/ — Vail Resorts, Inc. (NYSE: MTN) today reported results for the second quarter of fiscal 2021 ended January 31, 2021 and provided the Company’s ski season-to-date metrics through March 7, 2021, both of which were negatively impacted by COVID-19 and related limitations and restrictions.

Highlights

Net income attributable to Vail Resorts, Inc. was $147.8 million for the second fiscal quarter of 2021, a decrease of 28.4% compared to the second fiscal quarter of 2020, primarily as a result of the negative impacts of COVID-19.
Resort Reported EBITDA was $276.1 million for the second fiscal quarter of 2021, compared to a Resort Reported EBITDA of $378.3 million for the second fiscal quarter of 2020, primarily as a result of the negative impacts from capacity restrictions related to COVID-19 and challenging early season conditions, partially offset by disciplined cost management.
Results continued to improve in January and February following the peak holiday period, with season-to-date total skier visits down 8.2% and total lift revenue down 8.9% through March 7, 2021 compared to the prior year season-to-date period through March 8, 2020. Our ski school, food and beverage and retail/rental businesses continue to be more significantly impacted by the significant capacity and operating restrictions associated with COVID-19.
The Company issued guidance for the nine months ended April 30, 2021 and expects Resort Reported EBITDA to be between $560 million and $600 million assuming current regulations, health and safety precautions and that levels of demand and normal conditions persist through the spring, consistent with current levels.
We continue to maintain significant liquidity with $1.4 billion of cash on hand as of February 28, 2021 and $597 million of availability under our U.S. and Whistler Blackcomb revolving credit facilities.

Commenting on the Company’s fiscal 2021 second quarter results, Rob Katz, Chief Executive Officer, said, “Given the challenging operating environment as a result of COVID-19, we are very pleased with our results through this point in the 2020/2021 ski season across our 34 North American resorts. We have welcomed guests to each of our resorts with no major ongoing disruptions, which has been enabled by our focus on prioritizing the health and safety of our guests, employees and communities. While our results for the second quarter continued to be negatively impacted by COVID-19, total visitation across our North American destination mountain resorts and regional ski areas was only down approximately 5% compared to the same period in the prior year. The strong visitation for the quarter highlights the underlying resiliency of our business, the loyalty of our guests and the strong appeal of skiing in guests’ leisure travel plans. As we moved past the peak holiday period, which was constrained by capacity limitations driven by both COVID-19 and below average snow conditions, we saw improved results in January, particularly with lift ticket sales. While visitation trends improved throughout the quarter, our ancillary lines of business continued to be negatively impacted by COVID-19 related capacity constraints and limitations, particularly in food and beverage and ski school.

“We experienced strong results in the quarter from both our local and destination guests, with local visitation up slightly compared to the same period in the prior year and destination visitation proving more stable than we expected. Destination guests, including international visitors, modestly declined to 53% of our U.S. destination mountain resort skier visits (excluding complimentary access) despite the travel challenges associated with COVID-19, which compares to 57% in the same period in the prior year. International visitation, as expected, decreased significantly due to COVID-19 related travel restrictions. Results at Whistler Blackcomb were disproportionately impacted throughout the second fiscal quarter due to the Canadian border remaining closed to international guests (including guests from the U.S.), with destination guests, including international visitors, declining to 15% of Whistler Blackcomb visits (excluding complimentary access), which compares to 48% in the same period in the prior year.”

Katz continued, “Our season pass unit sales growth of 20% for fiscal year 2021 created a strong baseline of demand heading into the season across our local and destination audience and will be one of the most important drivers of our performance and relative stability for this season. For the fiscal 2021 second quarter, 71% of our visitation came from season pass holders compared to 59% of visitation in the same period in the prior year. Our growth in pass holders this past year also positions us well as we head into the 2021/2022 season. We remain even more committed to the benefits advanced commitment offers our Company and intend to remain aggressive in providing the best value to skiers and riders who purchase in advance of the season and continuing our strategy to move lift ticket purchasers into our pass program. We are excited to launch our 2021/2022 lineup of Epic Pass products on March 23, 2021.

“We maintained disciplined cost controls throughout the quarter as we operated the business at reduced capacity. Resort Reported EBITDA margin for the fiscal 2021 second quarter was 40.3% compared to the prior year period of 40.9%, while Resort net revenue decreased $240.1 million over the same period. These results reflect our rigorous approach to cost management and we exceeded our expectations for profitability at these revenue levels, relative to the illustrative model previously outlined in our September 2020 earnings release.”

Season-to-Date Metrics through March 7, 2021 & Interim Results Commentary

The Company reported certain ski season metrics for the comparative periods from the beginning of the ski season through March 7, 2021, and for the prior year period through March 8, 2020. The reported ski season metrics are for our North American destination mountain resorts and regional ski areas, and exclude the results of our Australian ski areas in both periods. The reported ski season metrics include growth for season pass revenue based on estimated fiscal year 2021 North American season pass revenue compared to fiscal year 2020 North American season pass revenue. Fiscal year 2020 season pass revenue was adjusted to exclude the impact of the deferral of pass product revenue as a result of pass holder credits offered to 2019/2020 North American pass holders. Fiscal year 2021 season pass revenue does not include the pass product revenue recognized in the first quarter of fiscal year 2021 as a result of unutilized pass holder credits. This approach results in a year over year comparison of season pass revenue exclusive of the impact of discounts provided to our 2019/2020 pass holders. The metrics include all North American destination mountain resorts and regional ski areas and are adjusted to eliminate the impact of foreign currency by applying current period exchange rates to the prior period for Whistler Blackcomb’s results. The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments.

Season-to-date total skier visits were down 8.2% compared to the prior year season-to-date period.
Season-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period, was down 8.9% compared to the prior year season-to-date period.
Season-to-date ski school revenue was down 43.2% and dining revenue was down 56.9% compared to the prior year season-to-date period. Retail/rental revenue for North American resort and ski area store locations was down 31.6% compared to the prior year season-to-date period.

Commenting on the season-to-date metrics, Katz said, “Our results continued to improve in January and February as we expanded capacity with more open terrain as conditions improved and as certain COVID-19 related restrictions eased. Additionally, as more reservations became available after the peak holiday period, we have seen a significant improvement in lift ticket purchases. Our ski school, food and beverage and retail/rental businesses continue to be more significantly impacted than visitation due to the significant capacity and operating restrictions associated with COVID-19. While our U.S. resorts saw material improvements in financial performance since the peak holiday period, Whistler Blackcomb’s financial performance continues to be severely impacted by the continued closure of Canadian borders to international travel, a trend that will likely continue through the rest of the season.”

Operating Results

A more complete discussion of our operating results can be found within the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the Company’s Form 10-Q for the second fiscal quarter ended January 31, 2021, which was filed today with the Securities and Exchange Commission. The following are segment highlights:

Mountain Segment

Total lift revenue decreased $53.6 million, or 11.1%, compared to the same period in the prior year, to $430.8 million for the three months ended January 31, 2021, primarily due to limitations and restrictions on our North American operations due to the impacts of COVID-19, which resulted in a decrease in non-pass visitation. Ski school revenue decreased $46.4 million, or 45.1%, dining revenue decreased $43.9 million, or 58.0%, and retail/rental revenue decreased $43.6 million, or 32.6%, all primarily as a result of COVID-19 related limitations, restrictions for our North American resorts.
Operating expense decreased $113.6 million, or 24.0%, primarily due to cost discipline efforts associated with lower levels of operations and limitations and restrictions on our North American winter operations resulting from COVID-19.
Mountain Reported EBITDA decreased $89.5 million, or 24.0%, for the second quarter compared to the same period in the prior year, which includes $5.5 million of stock-based compensation expense for the three months ended January 31, 2021 compared to $4.6 million in the same period in the prior year. Results were negatively impacted by COVID-19 related limitations and restrictions, partially offset by disciplined cost management.

Lodging Segment

Lodging segment net revenue (excluding payroll cost reimbursements) for the three months ended January 31, 2021 decreased $34.6 million, or 45.8%, as compared to the same period in the prior year, primarily due to the operational restrictions and limitations of our North American lodging properties as a result of COVID-19.
Lodging Reported EBITDA for the three months ended January 31, 2021 decreased $12.8 million, or 242.2%, for the second quarter compared to the same period in the prior year, which includes $1.0 million of stock-based compensation expense for the three months ended January 31, 2021 compared to $0.9 million in the same period in the prior year. Results were impacted by operational restrictions and limitations of our North American lodging properties as a result of COVID-19.

Resort – Combination of Mountain and Lodging Segments

Resort net revenue was $684.3 million for the three months ended January 31, 2021, a decrease of $240.1 million as compared to resort net revenue of $924.4 million for the same period in the prior year.
Resort Reported EBITDA was $276.1 million for the three months ended January 31, 2021, a decrease of $102.3 million, or 27.0%, compared to the same period in the prior year.

Total Performance

Total net revenue decreased $240.0 million, or 26.0%, to $684.6 million for the three months ended January 31, 2021 as compared to the same period in the prior year.
Net income attributable to Vail Resorts, Inc. was $147.8 million, or $3.62 per diluted share, for the second quarter of fiscal 2021 compared to net income attributable to Vail Resorts, Inc. of $206.4 million, or $5.04 per diluted share, in the second fiscal quarter of the prior year.

Calendar Year 2021 Capital Expenditures

Regarding calendar year 2021 capital expenditures, Katz said, “We remain committed to reinvesting in our resorts, creating an experience of a lifetime for our guests and generating strong returns for our shareholders. We plan to maintain a disciplined approach to capital investments, keeping our core capital at reduced levels given the continued uncertainty due to COVID-19. We have increased our core capital plan by approximately $5 million based on our updated outlook and now expect to invest approximately $115 million to $120 million excluding one-time items associated with integrations of $5 million and $12 million of reimbursable investments, as well as real estate related capital.

“As previously announced, the calendar year 2021 capital plan includes several signature investments, which were previously deferred from calendar year 2020 as a result of COVID-19 and are subject to regulatory approvals. In Colorado, we are moving forward with the 250-acre lift-served terrain expansion in the signature McCoy Park area of Beaver Creek, further differentiating the resort’s high-end, family focused experience. We also plan to add a new four-person high speed lift at Breckenridge to serve the popular Peak 7, replace the Peru lift at Keystone with a six-person high speed chairlift, and replace the Peachtree lift at Crested Butte with a new three-person fixed-grip lift.

“At Okemo, we plan to complete a transformational investment including upgrading the Quantum lift from a four-person to a six-person high speed chairlift, relocating the existing four-person Quantum lift to replace the Green Ridge three-person fixed-grip chairlift. These investments will greatly improve uplift capacity, further enhance the guest experience and complete our $35 million capital plan for Triple Peaks.

“We remain highly focused on investments that will further our company-wide technology enhancements to support our data driven approach, guest experience and corporate infrastructure, including investing in a number of upgrades to the infrastructure of our guest contact centers and bring a best-in-class approach to how we service our guests through those channels. We will also continue to invest in ongoing maintenance capital to support our infrastructure across our resorts.

“Including one-time items associated with integrations of $5 million and $12 million of reimbursable investments, as well as real estate related capital, we expect our total capital plan to be approximately $135 million to $140 million.”

Liquidity

The Company continues to maintain significant liquidity. Our total cash and revolver availability as of February 28, 2021 was approximately $2.0 billion, with $1.4 billion of cash on hand, $419 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $179 million of revolver availability under the Whistler Credit Agreement. As of January 31, 2021, our Net Debt was 4.2 times trailing twelve months Total Reported EBITDA. As previously announced, the Company raised $575 million of 0.0% convertible notes in December 2020, which provides added flexibility in terms of our ability to pursue high-impact acquisitions as well as reinvest in our resort portfolio. We remain confident in the strong cash flow generation and stability of our business model, and we will continue to be disciplined stewards of our capital with a focus on high-return capital projects, continuous investment in our people and strategic acquisition opportunities. While we are not reinstating the dividend this quarter, we remain committed to returning capital to shareholders, and our Board of Directors will continue to closely monitor the economic and public health outlook on a quarterly basis to assess the appropriate time to reinstate the dividend.”

Outlook

Katz said, “As we approach the end of the North American ski season, we are providing guidance for the nine month period ending April 30, 2021. We expect net income attributable to Vail Resorts, Inc. to be between $204 million and $247 million and Resort Reported EBITDA is expected to be between $560 million and $600 million, assuming current regulations, health and safety precautions and that levels of demand and normal conditions persist through the spring, consistent with current levels. Given the ongoing uncertainty of COVID-19, we will not be providing full year guidance for fiscal 2021 at this time as we continue to evaluate the potential economic and operational impacts of COVID-19 on our fiscal 2021 fourth quarter results, particularly for our three resorts in Australia and our primary summer operations in North America, which we currently anticipate fully opening around our typical opening dates with certain capacity constraints associated with COVID-19.”

The following table reflects the forecasted guidance range for the Company’s nine months ending April 30, 2021, for Reported EBITDA (after stock-based compensation expense) and reconciles such Reported EBITDA guidance to net income attributable to Vail Resorts, Inc.

	Fiscal 2021 Guidance
	(In thousands)
	For the Nine Months Ending
	April 30, 2021 ⁽⁶⁾
	Low End		High End
	Range		Range
Net income attributable to Vail Resorts, Inc.	$	204,000	$	247,000
Net income (loss) attributable to noncontrolling interests	1,000		(1,000)
Net income	205,000		246,000
Provision for income taxes ⁽¹⁾	46,000		57,000
Income before provision for income taxes	251,000		303,000
Depreciation and amortization	191,000		187,000
Interest expense, net	114,000		112,000
Other ⁽²⁾	—		(4,000)
Total Reported EBITDA	$	556,000	$	598,000

Mountain Reported EBITDA ⁽³⁾	$	579,000	$	617,000
Lodging Reported EBITDA ⁽⁴⁾	(21,000)		(15,000)
Resort Reported EBITDA ⁽⁵⁾	560,000		600,000
Real Estate Reported EBITDA	(4,000)		(2,000)
Total Reported EBITDA	$	556,000	$	598,000

⁽¹⁾The provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards are in-the-money.
⁽²⁾Our guidance includes certain known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material.
⁽³⁾Mountain Reported EBITDA also includes approximately $15 million of stock-based compensation.
⁽⁴⁾Lodging Reported EBITDA also includes approximately $3 million of stock-based compensation.
⁽⁵⁾ The Company provides Reported EBITDA ranges for the Mountain and Lodging segments, as well as for the two combined. The low and high of the expected ranges provided for the Mountain and Lodging segments, while possible, do not sum to the high or low end of the Resort Reported EBITDA range provided because we do not expect or assume that we will hit the low or high end of both ranges.
⁽⁶⁾Guidance estimates are predicated on an exchange rate of $0.79 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.79 between the Australian Dollar and U.S. Dollar, related to the operations of our Australian ski areas.

Earnings Conference Call

The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial results. The call will be webcast and can be accessed at www.vailresorts.com in the Investor Relations section, or dial (800) 289-0438 (U.S. and Canada) or (323) 794-2423 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through March 25, 2021, at 8:00 p.m. eastern time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international), pass code 9341015. The conference call will also be archived at www.vailresorts.com.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts, Inc., through its subsidiaries, is the leading global mountain resort operator. Vail Resorts’ subsidiaries operate 37 destination mountain resorts and regional ski areas, including Vail, Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow, and Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in Pennsylvania; Alpine Valley, Boston Mills, Brandywine and Mad River in Ohio; Hidden Valley and Snow Creek in Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mt. Brighton in Michigan; and Paoli Peaks in Indiana. Vail Resorts owns and/or manages a collection of casually elegant hotels under the RockResorts brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. Vail Resorts Development Company is the real estate planning and development subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com.

Forward-Looking Statements

Certain statements discussed in this press release and on the conference call, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws, including our expectations regarding our liquidity; the effects of the COVID-19 pandemic on, among other things, our operations expectations related to our season pass products; our expectations regarding our performance for the nine month period ending April 30, 2021 (and the assumptions related thereto), including our expected net income and Resort Reported EBITDA; our expectations regarding our summer operations; our planned capital expenditures for calendar year 2021; and our expectations regarding our ancillary lines of business. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include but are not limited to the ultimate duration of COVID-19 and its short-term and long-term impacts on consumer behaviors, the economy generally and our business and results of operations, including the ultimate amount of refunds that we would be required to refund to our pass product holders for qualifying circumstances under our recently launched Epic Coverage program; prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure related industries; willingness or ability of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases (such as the current outbreak of COVID-19), and the cost and availability of travel options and changing consumer preferences; unfavorable weather conditions or the impact of natural disasters; risks related to our reliance on information technology, including our failure to maintain the integrity of our customer or employee data and our ability to adapt to technological developments or industry trends; risks related to cyber-attacks; the seasonality of our business combined with adverse events that occur during our peak operating periods; competition in our mountain and lodging businesses; high fixed cost structure of our business; our ability to fund resort capital expenditures; risks related to a disruption in our water supply that would impact our snowmaking capabilities and operations; our reliance on government permits or approvals for our use of public land or to make operational and capital improvements; risks associated with obtaining governmental or third party approvals; risks related to federal, state, local and foreign government laws, rules and regulations; risks related to changes in security and privacy laws and regulations which could increase our operating costs and adversely affect our ability to market our products and services effectively; risks related to our workforce, including increased labor costs; loss of key personnel and our ability to hire and retain a sufficient seasonal workforce; adverse consequences of current or future legal claims; a deterioration in the quality or reputation of our brands, including our ability to protect our intellectual property and the risk of accidents at our mountain resorts; our ability to successfully integrate acquired businesses, or that acquired businesses may fail to perform in accordance with expectations, including Falls Creek, Hotham, Peak Resorts or future acquisitions; our ability to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, with respect to acquired businesses; risks associated with international operations; fluctuations in foreign currency exchange rates where the Company has foreign currency exposure, primarily the Canadian and Australian dollars; changes in accounting judgments and estimates, accounting principles, policies or guidelines or adverse determinations by taxing authorities as well as risks associated with uncertainty of the impact of tax reform legislation in the United States; risks related to our indebtedness and our ability to satisfy our debt service requirements under our outstanding debt including our unsecured senior notes, which could reduce our ability to use our cash flow to fund our operations, capital expenditures, future business opportunities and other purposes; a materially adverse change in our financial condition; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020, which was filed on September 24, 2020.

All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All guidance and forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forecast or forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by law.

Statement Concerning Non-GAAP Financial Measures

When reporting financial results, we use the terms Resort Reported EBITDA, Total Reported EBITDA, Resort EBITDA Margin, Net Debt and Net Real Estate Cash Flow, which are not financial measures under accounting principles generally accepted in the United States of America (“GAAP”). Resort Reported EBITDA, Total Reported EBITDA, Net Debt and Net Real Estate Cash Flow should not be considered in isolation or as an alternative to, or substitute for, measures of financial performance or liquidity prepared in accordance with GAAP. In addition, we report segment Reported EBITDA (i.e. Mountain, Lodging and Real Estate), the measure of segment profit or loss required to be disclosed in accordance with GAAP. Accordingly, these measures may not be comparable to similarly-titled measures of other companies. Additionally, with respect to discussion of impacts from currency, the Company calculates the impact by applying current period foreign exchange rates to the prior period results, as the Company believes that comparing financial information using comparable foreign exchange rates is a more objective and useful measure of changes in operating performance.

Reported EBITDA (and its counterpart for each of our segments) has been presented herein as a measure of the Company’s performance. The Company believes that Reported EBITDA is an indicative measurement of the Company’s operating performance, and is similar to performance metrics generally used by investors to evaluate other companies in the resort and lodging industries. The Company believes that Net Debt is an important measurement of liquidity as it is an indicator of the Company’s ability to obtain additional capital resources for its future cash needs. Additionally, the Company believes Net Real Estate Cash Flow is important as a cash flow indicator for its Real Estate segment. See the tables provided in this release for reconciliations of our measures of segment profitability and non-GAAP financial measures to the most directly comparable GAAP financial measures.

Vail Resorts, Inc.
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
Net revenue:
Mountain and Lodging services and other	$	597,110	$	753,758	$	701,384	$	933,789
Mountain and Lodging retail and dining	87,219		170,674		114,477		254,233
Resort net revenue	684,329		924,432		815,861		1,188,022
Real Estate	315		206		569		4,386
Total net revenue	684,644		924,638		816,430		1,192,408
Segment operating expense:
Mountain and Lodging operating expense	293,971		387,842		448,108		616,552
Mountain and Lodging retail and dining cost of products sold	37,366		67,135		54,498		104,870
General and administrative	78,121		91,302		137,150		166,357
Resort operating expense	409,458		546,279		639,756		887,779
Real Estate operating expense	1,615		1,505		3,065		6,798
Total segment operating expense	411,073		547,784		642,821		894,577
Other operating (expense) income:
Depreciation and amortization	(62,663)		(63,812)		(125,291)		(121,657)
Gain on sale of real property	—		—		—		207
Change in estimated fair value of contingent consideration	(1,000)		(1,600)		(1,802)		(2,736)
(Loss) gain on disposal of fixed assets and other, net	(2,192)		(709)		(2,761)		1,558
Income from operations	207,716		310,733		43,755		175,203
Mountain equity investment income, net	1,180		169		5,166		1,360
Investment income and other, net	167		361		510		638
Foreign currency gain (loss) on intercompany loans	5,135		(798)		5,675		(438)
Interest expense, net	(37,847)		(26,134)		(73,254)		(48,824)
Income (loss) before (provision) benefit from income taxes	176,351		284,331		(18,148)		127,939
(Provision) benefit from income taxes	(27,221)		(67,313)		10,257		(20,750)
Net income (loss)	149,130		217,018		(7,891)		107,189
Net (income) loss attributable to noncontrolling interests	(1,332)		(10,648)		1,923		(7,294)
Net income (loss) attributable to Vail Resorts, Inc.	$	147,798	$	206,370	$	(5,968)	$	99,895
Per share amounts:
Basic net income (loss) per share attributable to Vail Resorts, Inc.	$	3.67	$	5.12	$	(0.15)	$	2.48
Diluted net income (loss) per share attributable to Vail Resorts, Inc.	$	3.62	$	5.04	$	(0.15)	$	2.44
Cash dividends declared per share	$	—	$	1.76	$	—	$	3.52
Weighted average shares outstanding:
Basic	40,288		40,316		40,268		40,329
Diluted	40,809		40,941		40,268		40,973

Vail Resorts, Inc.
Consolidated Condensed Statements of Operations – Other Data
(In thousands)
(Unaudited)

	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
Other Data:
Mountain Reported EBITDA	$	283,577	$	373,028	$	196,185	$	293,043
Lodging Reported EBITDA	(7,526)		5,294		(14,914)		8,560
Resort Reported EBITDA	276,051		378,322		181,271		301,603
Real Estate Reported EBITDA	(1,300)		(1,299)		(2,496)		(2,205)
Total Reported EBITDA	$	274,751	$	377,023	$	178,775	$	299,398
Mountain stock-based compensation	$	5,461	$	4,612	$	10,262	$	8,965
Lodging stock-based compensation	1,037		873		1,928		1,720
Resort stock-based compensation	6,498		5,485		12,190		10,685
Real Estate stock-based compensation	81		53		143		104
Total stock-based compensation	$	6,579	$	5,538	$	12,333	$	10,789

Vail Resorts, Inc.
Mountain Segment Operating Results
(In thousands, except ETP)
(Unaudited)

	Three Months Ended January 31,				Percentage Increase		Six Months Ended January 31,				Percentage Increase
	2021		2020		(Decrease)		2021		2020		(Decrease)
Net Mountain revenue:
Lift	$	430,775	$	484,348	(11.1)	%	$	463,866	$	526,177	(11.8)	%
Ski school	56,390		102,743		(45.1)	%	58,434		111,277		(47.5)	%
Dining	31,810		75,719		(58.0)	%	34,878		97,348		(64.2)	%
Retail/rental	90,126		133,713		(32.6)	%	112,432		181,628		(38.1)	%
Other	32,354		49,022		(34.0)	%	66,559		109,947		(39.5)	%
Total Mountain net revenue	641,455		845,545		(24.1)	%	736,169		1,026,377		(28.3)	%
Mountain operating expense:
Labor and labor-related benefits	144,844		195,224		(25.8)	%	210,142		286,699		(26.7)	%
Retail cost of sales	28,067		41,985		(33.1)	%	40,693		65,264		(37.6)	%
Resort related fees	26,356		38,368		(31.3)	%	28,892		42,814		(32.5)	%
General and administrative	65,766		77,975		(15.7)	%	115,721		142,644		(18.9)	%
Other	94,025		119,134		(21.1)	%	149,702		197,273		(24.1)	%
Total Mountain operating expense	359,058		472,686		(24.0)	%	545,150		734,694		(25.8)	%
Mountain equity investment income, net	1,180		169		598.2	%	5,166		1,360		279.9	%
Mountain Reported EBITDA	$	283,577	$	373,028	(24.0)	%	$	196,185	$	293,043	(33.1)	%

Total skier visits	6,716		7,096		(5.4)	%	7,003		8,030		(12.8)	%
ETP	$	64.14	$	68.26	(6.0)	%	$	66.24	$	65.53	1.1	%

Vail Resorts, Inc.
Lodging Operating Results
(In thousands, except Average Daily Rate (“ADR”) and Revenue per Available Room (“RevPAR”))
(Unaudited)

	Three Months Ended January 31,				Percentage Increase		Six Months Ended January 31,				Percentage Increase
	2021		2020		(Decrease)		2021		2020		(Decrease)
Lodging net revenue:
Owned hotel rooms	$	6,708	$	11,251	(40.4)	%	$	14,073	$	31,197	(54.9)	%
Managed condominium rooms	20,336		31,500		(35.4)	%	29,665		46,240		(35.8)	%
Dining	2,865		11,111		(74.2)	%	3,958		29,254		(86.5)	%
Transportation	2,947		7,725		(61.9)	%	2,947		10,076		(70.8)	%
Golf	—		—		—	%	8,562		10,543		(18.8)	%
Other	8,000		13,855		(42.3)	%	17,266		27,699		(37.7)	%
	40,856		75,442		(45.8)	%	76,471		155,009		(50.7)	%
Payroll cost reimbursements	2,018		3,445		(41.4)	%	3,221		6,636		(51.5)	%
Total Lodging net revenue	42,874		78,887		(45.7)	%	79,692		161,645		(50.7)	%
Lodging operating expense:
Labor and labor-related benefits	23,167		33,929		(31.7)	%	43,144		71,544		(39.7)	%
General and administrative	12,355		13,327		(7.3)	%	21,429		23,713		(9.6)	%
Other	12,860		22,892		(43.8)	%	26,812		51,192		(47.6)	%
	48,382		70,148		(31.0)	%	91,385		146,449		(37.6)	%
Reimbursed payroll costs	2,018		3,445		(41.4)	%	3,221		6,636		(51.5)	%
Total Lodging operating expense	50,400		73,593		(31.5)	%	94,606		153,085		(38.2)	%
Lodging Reported EBITDA	$	(7,526)	$	5,294	(242.2)	%	$	(14,914)	$	8,560	(274.2)	%

Owned hotel statistics:
ADR	$	275.33	$	265.15	3.8	%	$	240.84	$	247.92	(2.9)	%
RevPAR	$	97.07	$	143.15	(32.2)	%	$	75.03	$	155.22	(51.7)	%
Managed condominium statistics:
ADR	$	415.97	$	404.14	2.9	%	$	346.25	$	313.72	10.4	%
RevPAR	$	87.47	$	144.85	(39.6)	%	$	58.02	$	100.40	(42.2)	%
Owned hotel and managed condominium statistics (combined):
ADR	$	382.40	$	371.45	2.9	%	$	317.42	$	291.74	8.8	%
RevPAR	$	88.98	$	144.56	(38.4)	%	$	60.89	$	111.59	(45.4)	%

Key Balance Sheet Data
(In thousands)
(Unaudited)

	As of January 31,
	2021		2020
Real estate held for sale and investment	$	96,801	$	96,944
Total Vail Resorts, Inc. stockholders’ equity	$	1,460,703	$	1,425,482
Long-term debt, net	$	2,768,015	$	1,817,058
Long-term debt due within one year	112,796		63,556
Total debt	2,880,811		1,880,614
Less: cash and cash equivalents	1,301,003		126,793
Net debt	$	1,579,808	$	1,753,821

Reconciliation of Measures of Segment Profitability and Non-GAAP Financial Measures

Presented below is a reconciliation of net income (loss) attributable to Vail Resorts, Inc. to Total Reported EBITDA for the three and six months ended January 31, 2021 and 2020.

	(In thousands) (Unaudited)				(In thousands) (Unaudited)
	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
Net income (loss) attributable to Vail Resorts, Inc.	$	147,798	$	206,370	$	(5,968)	$	99,895
Net income (loss) attributable to noncontrolling interests	1,332		10,648		(1,923)		7,294
Net income (loss)	149,130		217,018		(7,891)		107,189
Provision (benefit) from income taxes	27,221		67,313		(10,257)		20,750
Income (loss) before provision (benefit) from income taxes	176,351		284,331		(18,148)		127,939
Depreciation and amortization	62,663		63,812		125,291		121,657
Loss (gain) on disposal of fixed assets and other, net	2,192		709		2,761		(1,558)
Change in fair value of contingent consideration	1,000		1,600		1,802		2,736
Investment income and other, net	(167)		(361)		(510)		(638)
Foreign currency (gain) loss on intercompany loans	(5,135)		798		(5,675)		438
Interest expense, net	37,847		26,134		73,254		48,824
Total Reported EBITDA	$	274,751	$	377,023	$	178,775	$	299,398

Mountain Reported EBITDA	$	283,577	$	373,028	$	196,185	$	293,043
Lodging Reported EBITDA	(7,526)		5,294		(14,914)		8,560
Resort Reported EBITDA*	276,051		378,322		181,271		301,603
Real Estate Reported EBITDA	(1,300)		(1,299)		(2,496)		(2,205)
Total Reported EBITDA	$	274,751	$	377,023	$	178,775	$	299,398

* Resort represents the sum of Mountain and Lodging

Presented below is a reconciliation of net loss attributable to Vail Resorts, Inc. to Total Reported EBITDA calculated in accordance with GAAP for the twelve months ended January 31, 2021.

	(In thousands) (Unaudited)
	Twelve Months Ended
	January 31, 2021
Net loss attributable to Vail Resorts, Inc.	$	(7,030)
Net income attributable to noncontrolling interests	1,005
Net loss	(6,025)
Benefit from income taxes	(23,629)
Loss before benefit from income taxes	(29,654)
Depreciation and amortization	253,206
Loss on disposal of fixed assets and other, net	3,481
Asset impairments	28,372
Change in fair value of contingent consideration	(3,898)
Investment income and other, net	(1,177)
Foreign currency gain on intercompany loans	(2,883)
Interest expense, net	131,151
Total Reported EBITDA	$	378,598

Mountain Reported EBITDA	$	403,222
Lodging Reported EBITDA	(20,205)
Resort Reported EBITDA*	383,017
Real Estate Reported EBITDA	(4,419)
Total Reported EBITDA	$	378,598

* Resort represents the sum of Mountain and Lodging

The following table reconciles long-term debt, net to Net Debt and the calculation of Net Debt to Total Reported EBITDA for the twelve months ended January 31, 2021.

	(In thousands) (Unaudited)
	As of January 31, 2021
Long-term debt, net	$	2,768,015
Long-term debt due within one year	112,796
Total debt	2,880,811
Less: cash and cash equivalents	1,301,003
Net debt	$	1,579,808
Net debt to Total Reported EBITDA	4.2x

The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and six months ended January 31, 2021 and 2020.

	(In thousands) (Unaudited)				(In thousands) (Unaudited)
	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
Real Estate Reported EBITDA	$	(1,300)	$	(1,299)	$	(2,496)	$	(2,205)
Non-cash Real Estate cost of sales	195		—		383		3,684
Non-cash Real Estate stock-based compensation	81		53		143		104
Change in real estate deposits and recovery of previously incurred project costs/land basis less investments in real estate	(20)		(17)		(22)		138
Net Real Estate Cash Flow	$	(1,044)	$	(1,263)	$	(1,992)	$	1,721

The following table reconciles Resort net revenue to Resort EBITDA Margin for the three months ended January 31, 2021 and 2020.

	(In thousands) (Unaudited)			(In thousands) (Unaudited)
	Three Months Ended January 31, 2021			Three Months Ended January 31, 2020
Resort net revenue ⁽¹⁾	$	684,329		$	924,432
Resort Reported EBITDA ⁽¹⁾	$	276,051		$	378,322
Resort EBITDA margin	40.3		%	40.9		%

⁽¹⁾ Resort represents the sum of Mountain and Lodging

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SOURCE Vail Resorts, Inc.

March 11, 2021 4:08 pm

SYNNEX Corporation to Announce First Quarter Fiscal 2021 Results on March 22, 2021

PR Newswire

FREMONT, Calif., March 11, 2021 /PRNewswire/ — SYNNEX Corporation (NYSE: SNX), a leading provider of distribution, systems design and integration services for the technology industry, will announce its financial results for the first quarter of fiscal 2021 after market close on Monday, March 22, 2021. An earnings call will be held at 2:00 PM (PT) / 5:00 PM (ET) the same day, hosted by SYNNEX executive management including Dennis Polk, CEO and Marshall Witt, CFO.

The quarterly earnings press release and a live audio webcast of the earnings call will be accessible at ir.synnex.com, and a replay of the webcast will be available following the call.

About SYNNEX
SYNNEX Corporation (NYSE: SNX) is a Fortune 200 corporation and a leading provider of a comprehensive range of distribution, systems design and integration services for the technology industry to a wide range of enterprises. Founded in 1980, SYNNEX Corporation operates in numerous countries throughout North and South America, Asia-Pacific and Europe. Additional information about SYNNEX may be found online at synnex.com.

Safe Harbor Statement
Statements in this news release that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to be materially different from any future performance that may be suggested in this release. The Company assumes no obligation to update any forward-looking statements contained in this release

Copyright 2021 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX and the SYNNEX Logo Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

Investor Contact:
Liz Morali
Investor Relations
SYNNEX Corporation
[email protected]
(510) 668-8436

SNX-G

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SOURCE SYNNEX Corporation

March 11, 2021 4:08 pm

Poseida Therapeutics Reports Program Updates and Financial Results for the Fourth Quarter and Full Year 2020

PR Newswire

SAN DIEGO, March 11, 2021 /PRNewswire/ — Poseida Therapeutics, Inc. (Nasdaq: PSTX), a clinical-stage biopharmaceutical company utilizing proprietary genetic engineering platform technologies to create cell and gene therapeutics with the capacity to cure, today announced program updates and financial results for the fourth quarter and full year ended December 31, 2020.

“2020 was a transformative year for Poseida, as we completed our IPO and became a public company all while advancing multiple programs and substantially expanding the application of our core technologies, enabling us to engineer a portfolio of product candidates designed to overcome the limitations of current cell and gene therapeutics,” said Eric Ostertag, M.D., Ph.D., Chief Executive Officer of Poseida. “This important progress was on display in late February, when we hosted our first R&D Day, showcasing the wide breadth of our capacity in cell and gene therapies and introducing a potential new product candidate for the in vivo treatment of hemophilia A to our gene therapy pipeline. We look forward to achieving important milestones in 2021 as we continue to move our programs and platform forward.”

Program Updates

BCMA Program
P-BCMA-101 is an autologous CAR-T product candidate in an ongoing Phase 1 dose expansion trial and Phase 2 trial in development for the treatment of relapsed/refractory multiple myeloma. The Company provided an update on the P-BCMA-101 program during an oral presentation at the 2020 American Society of Hematology (ASH) Annual Meeting on December 5, 2020. The interim results showed that patients treated with equivalent doses of product manufactured with a modified nanoplasmid process in the expanded Phase 1 trial achieved increases in the depth and rate of responses while maintaining the potentially best-in-class P-BCMA-101 safety profile seen with product manufactured with the Company’s legacy plasmid. Additionally, at the Company’s R&D Day, patient case studies were presented that clinically demonstrated the value of products with a high percentage of stem cell memory T cells (T_scm), potentially leading to better duration of response and the ability to re-respond to relapse without re-administration of product. Phase 1 dose expansion enrollment continues, with an expected update on this program later in 2021.

P-BCMA-ALLO1, the Company’s first allogeneic CAR-T product candidate, is in development for the treatment of relapsed/refractory multiple myeloma and is designed to be fully allogeneic, with genetic edits designed to reduce or eliminate both host-vs-graft and graft-vs-host alloreactivity. The program is proceeding toward an IND filing, which is expected in the first half 2021.

PSMA Program
P-PSMA-101 is a solid tumor autologous CAR-T product candidate being developed to treat patients with metastatic castrate resistant prostate cancer (mCRPC) currently in an ongoing Phase 1 dose escalation trial. The Company’s R&D Day included a case study of a patient with mCRPC treated with P-PSMA-101 in the low dose cohort of 0.25 x 10e6 cells/kg (~20 x 10e6 total cells) who showed a marked decrease in prostate specific antigen (PSA) expression levels of more than 50% in the first three weeks post treatment and is continuing on trial. The patient was reported to have Grade 1 CRS in the second week which was treated to resolution. The Company intends to provide an additional update on this program later in 2021.

MUC1-C Program
P-MUC1C-ALLO1 is an allogeneic CAR-T product candidate in preclinical development with the potential to treat a wide range of solid tumors, including breast and ovarian cancers. P-MUC1C-ALLO1 is proceeding, with an anticipated IND filing and initiation of Phase 1 clinical trial by the end of 2021.

Liver Directed Gene Therapy Programs
P-OTC-101 is the Company’s first liver-directed gene therapy program for the in vivo treatment of urea cycle disease caused by congenital mutations in the ornithine transcarbamylase (OTC) gene, a condition characterized by high unmet medical need. The program is progressing and the Company expects an IND submission and initiation of a Phase 1 clinical trial in 2022.

P-FVIII-101, a liver directed gene therapy currently in development for the in vivo treatment of hemophilia A, was introduced at the Company’s R&D Day. P-FVIII-101 utilizes piggyBac gene modification delivered via lipid nanoparticle, resulting in stable and sustained Factor VIII expression in animal models. Preclinical studies are ongoing that will inform the development plan and timeline to IND.

Platforms and Emerging Discovery Programs
At the R&D Day, the Company also reviewed its core platform technologies and introduced a number of emerging discovery programs. The presentation is currently available on the Company’s website and included discussions on the following:

TCR-T: This platform combines the Company’s technologies to generate effective and functional off-the-shelf TCR-T product candidates with a high percentage of highly desirable T_scm cells.
Anti-cKit CAR-T: Non-genotoxic conditioning regimens that are safer than the current standard of care are potentially possible with the Company’s anti-cKit CAR-T program for hematopoietic stem cell (HSC) conditioning.
Genetically Modified HSCs: HSCs can be modified via the piggyBac DNA Delivery System and/or the Cas-CLOVER Site-Specific Gene Editing System. CAR-HSC has the potential to be a highly effective CAR-T approach.
iPSCs: The Cas-CLOVER System is efficient for creating knock-outs and knock-ins in induced pluripotent stem cells (iPSCs).
Genetically Modified NK Cells: Cas-CLOVER can also be used to efficiently edit natural killer (NK) cells, or CAR-NK cells, while piggyBac can be used to effectively deliver large therapeutic transgenes to activated or un-activated peripheral blood NK cells.

For discovery programs, the Company may seek partnerships or collaborations to move those applications forward in the near term.

Financial Results for the Fourth Quarter and Full Year 2020

Research and Development Expenses
Research and development expenses were $27.9 million for the fourth quarter ended December 31, 2020, compared to $19.2 million for the same period in 2019. For the full year ended December 31, 2020, research and development expenses were $103.5 million, compared to $60.4 million for the same period in 2019. The increase in both periods was primarily due to increased headcount, external costs related to preclinical programs and clinical stage programs, including the ongoing enrollment and manufacturing associated with our P-BCMA-101 and P-PSMA-101 clinical trials, and internal costs related to facilities development.

General and Administrative Expenses
General and administrative expenses were $7.5 million for the fourth quarter ended December 31, 2020, compared to $4.0 million for the same period in 2019. General and administrative expenses were $23.0 million for the full year ended December 31, 2020, compared to $18.5 million for the same period in 2019. The increase in both periods was primarily due to increased headcount and professional fees associated with becoming a publicly traded company.

Net Losses
Net losses were $129.8 million and $86.5 million for the full year ended December 31, 2020 and 2019, respectively.

Cash Position
As of December 31, 2020, cash, cash equivalents and marketable securities were $309.2 million.

About Poseida Therapeutics, Inc.
Poseida Therapeutics is a clinical-stage biopharmaceutical company dedicated to utilizing our proprietary genetic engineering platform technologies to create next generation cell and gene therapeutics with the capacity to cure. We have discovered and are developing a broad portfolio of product candidates in a variety of indications based on our core proprietary platforms, including our non-viral piggyBac^® DNA Delivery System, Cas-CLOVER™ site-specific gene editing system and nanoparticle- and AAV-based gene delivery technologies. Our core platform technologies have utility, either alone or in combination, across many cell and gene therapeutic modalities and enable us to engineer our wholly-owned portfolio of product candidates that are designed to overcome the primary limitations of current generation cell and gene therapeutics. To learn more, visit www.poseida.com and connect with us on Twitter and LinkedIn.

Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the potential benefits of Poseida’s technology platforms and product candidates, Poseida’s plans and strategy with respect to developing its technologies and product candidates, and anticipated timelines and milestones with respect to Poseida’s development programs. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon Poseida’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with development and regulatory approval of novel product candidates in the biopharmaceutical industry and the other risks described in Poseida’s filings with the Securities and Exchange Commission. All forward-looking statement contained in this press release speak only as of the date on which they were made. Poseida undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Poseida Therapeutics, Inc. Selected Financial Data (In thousands, except share amounts)

STATEMENTS OF OPERATIONS

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2020		2019		2020		2019
	(unaudited)
Operating expenses:
Research and development	$	27,884	$	19,212	$	103,520	$	60,401
General and administrative		7,476		4,000		23,029		18,449
Increase in contingent consideration		—		—		—		6,683
Total operating expenses		35,360		23,212		126,549		85,533
Loss from operations		(35,360)		(23,212)		(126,549)		(85,533)
Other income (expense):
Interest expense		(852)		(920)		(3,506)		(3,553)
Other income, net		64		519		280		2,559
Net loss before income tax		(36,148)		(23,613)		(129,775)		(86,527)
Income tax benefit		—		—		—		—
Net loss	$	(36,148)	$	(23,613)	$	(129,775)	$	(86,527)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.58)	$	(1.79)	$	(3.61)	$	(6.86)
Weighted-average shares of common stock, basic and diluted		61,826,180		13,195,330		35,996,901		12,618,413

SELECTED BALANCE SHEET DATA

	December 31, 2020		December 31, 2019
Cash, cash equivalents and short-term investments	$	309,152	$	125,318
Total assets		371,484		146,996
Total liabilities		109,516		74,334
Convertible preferred stock		–		222,173
Total stockholders’ equity (deficit)		261,968		(149,511)

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SOURCE Poseida Therapeutics, Inc.

March 11, 2021 4:08 pm

SHAREHOLDER ALERT: WeissLaw LLP Investigates Frank’s International N.V.

PR Newswire

NEW YORK, March 11, 2021 /PRNewswire/ — WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Frank’s International N.V. (“Frank’s” or the “Company”) (NYSE: FI) in connection with the proposed acquisition of the Company by Expro Group (“Expro”). Under the terms of the merger agreement, Expro shareholders will receive 7.272 Frank’s shares per Expro share they own. Upon consummation of the transaction, the Company’s shareholders will own approximately 35% of the combined entity, with Expro shareholders owning approximately 65%.

If you own Frank’s shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, visit our website:

http://www.weisslawllp.com/FI/

Or please contact:

Joshua Rubin, Esq.

WeissLaw LLP
1500 Broadway, 16^th Floor
New York, NY 10036
(212) 682-3025
(888) 593-4771
[email protected]

WeissLaw LLP is investigating whether Frank’s board acted in the best interest of Frank’s public shareholders in agreeing to the proposed transaction, whether the board was fully informed as to the valuation of Expro, and whether all information regarding the process undertaken by the board and the valuation of the transaction will be fully and fairly disclosed to Frank’s public shareholders.

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/shareholder-alert-weisslaw-llp-investigates-franks-international-nv-301245944.html

SOURCE WeissLaw LLP

March 11, 2021 4:08 pm

Akerna to Announce Financial Results for the Quarter Ended December 31, 2020

PR Newswire

DENVER, March 11, 2021 /PRNewswire/ — Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), will report financial results for the quarter ended December 31, 2020, on Monday, March 22, 2021.

Akerna will host a conference call at 8:30 a.m. Eastern Time on Tuesday, March 23, 2021 to discuss its financial results and business highlights.

Interested parties may listen to the call by dialing:

Toll-Free: 1-877-407-3982

Toll / International: 1-201-493-6780

Conference ID: 13717601

The conference call will also be available via a live, listen-only webcast and can be accessed through the Investor Relations section of Akerna’s website, https://ir.akerna.com/

To be included on the Company’s email distribution list, please sign up at https://ir.akerna.com/news-events/email-alerts

About Akerna

Akerna (Nasdaq: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. The company’s cornerstone technology, MJ Platform, the world’s leading infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators.

For more information, visit https://www.akerna.com/.

View original content to download multimedia:http://www.prnewswire.com/news-releases/akerna-to-announce-financial-results-for-the-quarter-ended-december-31-2020-301245848.html

SOURCE Akerna

March 11, 2021 4:08 pm

CalciMedica Announces $21 Million Series D Financing

Round led by Quark Venture LP and Global Health Sciences (GHS) Fund
Funds to support advancement of anti-inflammatory therapy, Auxora
^TM
, currently being evaluated in severe and critical COVID-19 pneumonia and acute pancreatitis with SIRS
Zafi Avnur, Ph.D., chief scientific officer and partner at Quark Venture, joins Board of Directors

LA JOLLA, Calif., March 11, 2021 (GLOBE NEWSWIRE) — CalciMedica Inc. (“CalciMedica” or the “Company”), a clinical-stage biotechnology company targeting calcium release-activated calcium (CRAC) channels for the treatment of severe acute and chronic inflammatory diseases, today announced it has secured a $21 million Series D financing led by Quark Venture LP and GHS Fund (Quark Venture LP and GF Securities) and joined by previous investors, Valence Life Sciences and Sanderling Ventures. In conjunction with the financing, Zafi Avnur, Ph.D., chief scientific officer and partner at Quark Venture, will join the company’s board of directors. Proceeds from the financing will support the clinical development of CalciMedica’s portfolio of CRAC channel inhibitors including Auxora^TM which is being evaluated in an ongoing blinded placebo-controlled clinical trial in severe and critical COVID-19 pneumonia, with over 200 patients randomized to date, and in a Phase 2b trial in acute pancreatitis that will start enrolling patients in the coming weeks. The private financing will be completed in multiple closings.

“We thank GHS Fund and Quark Venture for its financial support and welcome Dr. Avnur to the board of directors,” said Rachel Leheny, Ph.D., chief executive officer of CalciMedica. “Her extensive and diverse experience in life sciences that spans three decades working with advanced clinical compounds will be critical as we continue to asses and advance our pipeline which includes Auxora in severe and critical COVID-19 pneumonia, acute pancreatitis, and other inflammatory indications.”

Karimah Es Sabar, CEO and partner, Quark Venture added, “We are pleased to invest in CalciMedica and provide support for the further development of the company’s promising CRAC channel inhibitors platform. We believe in Auxora’s potential to be a critical component of treatment for COVID-19 and other acute inflammatory indications. Our investment in CalciMedica reflects our strong commitment to enabling innovative companies developing life-saving therapies.”

Prior to joining Quark Venture, Dr. Avnur was the Global Head of Academic Innovation, Roche Partnering 2009 – 2016. She was responsible for creating relationships with the world’s leading academic institutions and world class innovators, gaining Roche early access to innovation. Dr. Avnur was named Distinguished Scientist, the highest scientific appointment at Roche. Prior to her partnering roles, she worked in pharmaceuticals and diagnostics research and development for nearly 20 years and she participated in global committees at Roche that managed the research drug discovery portfolios for both Inflammatory and Viral Diseases. Dr. Avnur has created eleven startup companies.

Auxora is currently under evaluation in a blinded, placebo-controlled clinical trial enrolling up to 400 patients with severe and critical COVID-19 pneumonia. To date over 200 patients have been randomized. Patients are receiving either Auxora or matched lipid nano-emulsion placebo in addition to standard of care, which includes dexamethasone and may include remdesivir. For more information about the clinical trial, visit clinicaltrials.gov.

About CalciMedica, Inc.

CalciMedica is a privately-held, clinical-stage biotechnology company with a platform focused on CRAC channel drug discovery and development for the treatment of severe acute and chronic inflammatory diseases, including acute pancreatitis, chronic pancreatitis, COVID-19 pneumonia and acute respiratory distress syndrome (ARDS). The company has a portfolio of potent and selective small molecule CRAC channel inhibitors, including its lead product Auxora, that prevent CRAC channel overactivation that can cause organ injury in numerous settings, including endothelial apoptosis, pancreatic necrosis, tissue fibrosis and diffuse alveolar damage. Data from both a Phase 2a acute pancreatitis trial and a Phase 2 COVID-19 pneumonia trial suggest that Auxora prevents organ tissue damage and allows for rapid restoration of organ function. CalciMedica is headquartered in San Diego, CA. For more information, please visit the company website at www.calcimedica.com.

CalciMedica Contact:

Rachel Leheny, Ph.D.
Chief Executive Officer
[email protected]
858-952-5500

Media Contact:

Gloria Gasaatura
LifeSci Communications
[email protected]
646-970-4688

March 11, 2021 4:08 pm

Sientra Reports Fourth Quarter and Full Year 2020 Financial Results

SANTA BARBARA, Calif., March 11, 2021 (GLOBE NEWSWIRE) — Sientra, Inc. (NASDAQ: SIEN) (“Sientra” or the “Company”), a medical aesthetics company uniquely focused on plastic surgeons, today announced its audited financial results for the fourth quarter and full year ended December 31, 2020.

Ron Menezes, President and Chief Executive Officer of Sientra, stated, “We continue to build on our strong fourth quarter results, which were driven primarily by our investment and market outperformance in our core breast products segment. While the augmentation channel remains a key performance driver, we were also able to gain market share in the hospital channel despite pandemic related challenges faced by the reconstruction market. Ahead of further market normalization in 2021, we remain hyper focused on expanding our hospital account base by continuing to capitalize on customer receptivity to the technical differentiation and compelling safety profile of our tissue expander portfolio, grounded by AlloX2^®. We also expect to benefit in 2021 from targeted digital efforts directed towards patients and surgeons, an expanded and more productive sales force, and educational peer to peer initiatives that will add new accounts and drive continued share gains.”

Mr. Menezes continued, “Our 2021 performance will also be driven by our commitment to establish a culture of focus and accountability, with disciplined investment and execution on commercial, product development and manufacturing initiatives designed to drive revenue and operating leverage. Meanwhile, we expect to reach our goal to achieve break-even contribution margin from miraDry in 2021, as we evaluate the strategic alternatives for the business.”

Mr. Menezes concluded, “Given our progress to date on each of these initiatives, we currently expect breast product segment net sales to grow in excess of 30% in the first quarter 2021 compared to the first quarter 2020.”

Fourth Quarter 2020 Financial Results

Total net sales for the fourth quarter 2020 were $22.6 million, a decrease of 2% compared to total net sales of $23.2 million for the same period in 2019.
Net sales for the Breast Products segment totaled $17.9 million in the fourth quarter 2020, an increase of 40% compared to $12.8 million for the same period in 2019 and 17% sequential growth over the quarter ending September 30, 2020.
Net sales for the miraDry segment totaled $4.8 million in the fourth quarter 2020, a 54% decrease compared to $10.4 million for the same period in 2019 and 22% sequential growth over the quarter ending September 30, 2020.
Gross profit for the fourth quarter 2020 was $11.1 million, or 48.9% of sales, compared to gross profit of $14.2 million, or 61.3% of sales, for the same period in 2019.
Operating expenses for the fourth quarter 2020 decreased by 13.1% to $28.2 million from $32.4 million, excluding $1.1 million of restructuring charges related to Sientra’s organizational efficiency initiative, in the same period in 2019.
Net loss for the fourth quarter 2020 was ($21.2) million, or ($0.42) per share, compared to a net loss of ($20.2) million, or ($0.41) per share, for the same period in 2019.
On a non-GAAP basis, adjusted EBITDA loss for the fourth quarter 2020 decreased by 24.6% to ($10.5) million from ($14.0) million for the same period in 2019.

Full Year 2020 Financial Results

Total net sales for the full year 2020 were $71.2 million, a decrease of 14.9% compared to total net sales of $83.7 million for the same period in 2019.
Net sales for the Breast Products segment totaled $55.0 million in the full year 2020, an increase of 18.6% compared to $46.4 million for the full year 2019.
Net sales for the miraDry segment totaled $16.2 million in the full year 2020, a 56.5% decrease compared to $37.3 million for the full year 2019.
Gross profit for the full year 2020 was $38.9 million, or 54.7% of sales, compared to gross profit of $50.7 million, or 60.6% of sales, for the full year 2019.
Operating expenses for the full year 2020 decreased by 29.2% to $109.2 million from $154.3 million for the full year 2019.
Net loss for the full year 2020 was ($89.9) million, or ($1.79) per share, compared to a net loss of ($106.8) million, or ($2.63) per share, for the full year 2019.
On a non-GAAP basis, adjusted EBITDA loss for the full year 2020 decreased by 35.4% to ($47.0) million from ($72.8) million for the full year 2019.
Net cash and cash equivalents as of December 31, 2020 were $55.0 million, compared to $63.5 million as of September 30, 2020. The cash balance as of December 31, 2020 does not include net proceeds from the closing of the Company’s public offering of common stock on February 11, 2021 of approximately $39.1 million.

Full Year 2021 Financial Outlook

For full year 2021, the Company expects to achieve total net sales of $78 million to $84 million, representing growth of 10% to 18% compared to net sales of $71.2 million in 2020.

Anticipates Breast Products net sales of $70 to $74 million, representing growth of 27% to 35% over 2020; and
Anticipates miraDry net sales of $8 to $10 million.

Conference Call

Sientra will hold a conference call today, March 11, 2021 at 4:30 pm ET to discuss third quarter results. The dial-in numbers are 844-464-3933 for domestic callers and 765-507-2612 for international callers. The conference ID is 3371629. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website at www.sientra.com. The webcast will be archived on the website following the completion of the call.

Use of Non-GAAP Financial Measures

Sientra has supplemented its US GAAP net income (loss) with a non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the Company, facilitates a more meaningful comparison of results for current periods with previous operating results, and assists management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation of non-GAAP Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, is provided in the schedule below.

There are limitations in using this non-GAAP financial measure because it is not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. This non-GAAP financial measure should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with Sientra’s financial statements prepared in accordance with GAAP and the reconciliations of the non-GAAP financial measure provided in the schedule below.

About Sientra

Headquartered in Santa Barbara, California, Sientra is a medical aesthetics company uniquely focused on plastic surgeons. The Company offers a suite of products designed to make a difference in patients’ lives by enhancing their body image, growing their self-esteem, and restoring their confidence. Sientra has developed a broad portfolio of products with technologically differentiated characteristics, supported by independent laboratory testing and strong clinical trial outcomes. The Company’s Breast Products Segment includes its Sientra round and shaped breast implants, the first fifth generation breast implants approved by the FDA for sale in the United States, its ground-breaking Allox2® breast tissue expander with patented dual-port and integral drain technology, and BIOCORNEUM® the #1 performing, preferred and recommended scar gel of plastic surgeons(*). The Company’s miraDry Segment, comprised of its miraDry® system, is approved for sale in over 56 international markets and is the only non-surgical, FDA-cleared device indicated for the permanent reduction of underarm sweat and hair and may also reduce odor.

Sientra uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Sientra is routinely posted and is accessible on the Company’s investor relations website at www.sientra.com.

^(*)
Data on file

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are made only as of the date of this release. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Forward-looking statements may include information concerning the impact of the COVID-19 pandemic on the Company and its operations, the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, profitability, anticipated growth rates, market outlook, impact of marketing programs and overall business strategy. Such statements are subject to risks and uncertainties, including the scope and duration of the COVID-19 pandemic, the Company’s ability to recapture delayed procedures resulting from the COVID-19 pandemic, the positive reaction from plastic surgeons and their patients to Sientra’s Breast Products, the positive reaction from plastic surgeons and patients to Sientra’s marketing, sales and educational programs, the ability to execute on the Company’s commercial, product development and manufacturing initiatives, the ability of the Company to drive revenue and operating leverage, the ability to meet consumer demand, the growth of the sale of bioTips in its miraDry segment, and the Company’s ability to manage its operating expenses and cash balance. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Sientra’s public filings with the Securities and Exchange Commission. All statements other than statements of historical fact are forward-looking statements. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, and such estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business.

Contact

Investor Relations
805-679-8885

Sientra, Inc.
Consolidated Statements of Operations
(In thousands, except per share and share amounts)
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2020			2019			2020			2019
Net sales	$	22,644		$	23,210		$	71,241		$	83,699
Cost of goods sold		11,569			8,971			32,302			33,012
Gross profit		11,075			14,239			38,939			50,687
Operating expenses:
Sales and marketing		14,939			19,202			52,553			80,189
Research and development		2,564			4,011			10,311			13,537
General and administrative		10,691			9,233			38,191			46,771
Restructuring		(87	)		1,083			1,762			1,083
Impairment		—			—			6,432			12,674
Total operating expenses		28,107			33,529			109,249			154,254
Loss from operations		(17,032	)		(19,290	)		(70,310	)		(103,567	)
Other income (expense), net:
Interest income		3			323			206			1,406
Interest expense		(2,162	)		(1,292	)		(9,451	)		(4,568	)
Change in fair value of derivative liability		(2,050	)		—			(10,470	)		—
Other income (expense), net		37			46			111			(55	)
Total other income (expense), net		(4,172	)		(923	)		(19,604	)		(3,217	)
Loss before income taxes		(21,204	)		(20,213	)		(89,914	)		(106,784	)
Income tax		33			34			33			34
Net loss	$	(21,237	)	$	(20,247	)	$	(89,947	)	$	(106,818	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.42	)	$	(0.41	)	$	(1.79	)	$	(2.63	)
Weighted average outstanding common shares used for net loss per share attributable to common stockholders:
Basic and diluted		50,462,124			49,506,169			50,233,175			40,654,272

Sientra, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	December 31,			December 31,
	2020			2019
Assets
Current assets:
Cash and cash equivalents	$	54,967		$	87,608
Accounts receivable, net		23,503			27,548
Inventories, net		48,648			39,612
Prepaid expenses and other current assets		2,154			2,489
Total current assets		129,272			157,257
Property and equipment, net		13,106			12,314
Goodwill		9,202			9,202
Other intangible assets, net		9,387			17,390
Other assets		8,011			8,241
Total assets	$	168,978		$	204,404
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	4,670		$	6,508
Accounts payable		6,504			9,352
Accrued and other current liabilities		32,389			32,551
Customer deposits		17,905			13,943
Sales return liability		9,192			8,116
Total current liabilities		70,660			70,470
Long-term debt, net of current portion		60,500			38,248
Derivative liability		26,570			—
Deferred and contingent consideration		2,350			5,177
Warranty reserve and other long-term liabilities		9,455			8,627
Total liabilities		169,535			122,522
Stockholders’ equity:
Total stockholders’ equity		(557	)		81,882
Total liabilities and stockholders’ equity	$	168,978		$	204,404

Sientra, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)


	Year Ended December 31,
	2020			2019
Cash flows from operating activities:
Net loss	$	(89,947	)	$	(106,818	)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment		6,432			12,674
Depreciation and amortization		4,094			3,524
Provision for doubtful accounts		4,423			2,298
Provision for warranties		1,271			929
Provision for inventory		3,601			2,626
Fair value adjustments to derivative liability		10,470			—
Fair value adjustments of other liabilities held at fair value		96			969
Amortization of debt discount and issuance costs		4,347			359
Stock-based compensation expense		8,344			12,478
Payments of contingent consideration liability in excess of acquisition-date fair value		—			(1,968	)
Other non-cash adjustments		375			290
Changes in assets and liabilities:
Accounts receivable		(378	)		(7,320	)
Inventories		(12,808	)		(10,921	)
Prepaid expenses, other current assets and other assets		935			(8,513	)
Accounts payable, accrueds, and other liabilities		(6,420	)		6,694
Customer deposits		3,961			4,008
Sales return liability		1,077			2,068
Legal settlement payable		—			(410	)
Net cash used in operating activities		(60,127	)		(87,033	)
Cash flows from investing activities:
Purchase of property and equipment		(4,037	)		(4,071	)
Business acquisitions, net of cash and restricted cash acquired		—			(17,943	)
Net cash used in investing activities		(4,037	)		(22,014	)
Cash flows from financing activities:
Proceeds from option exercises and employee stock purchase plan		865			1,341
Net proceeds from issuance of common stock		263			107,734
Payments related to tax witholding on vested restricted stock units (RSUs)		(1,791	)		(3,064	)
Gross borrowings under the Term Loan		—			5,000
Repayments under the Term Loan		(25,000	)		—
Gross borrowings under the PPP loan		6,652			—
Gross borrowings under the Revolving Loan		—			22,296
Repayment of the Revolving Loan		(6,508	)		(15,788	)
Net proceeds from issuance of the Convertible Note		60,000			—
Payments of contingent consideration up to acquisition-date fair value		—			(5,766	)
Deferred financing costs		(2,958	)		(1,997	)
Net cash provided by financing activities		31,523			109,756
Net increase (decrease) in cash, cash equivalents and restricted cash		(32,641	)		709
Cash, cash equivalents and restricted cash at:
Beginning of period		87,951			87,242
End of period	$	55,310		$	87,951

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	54,967		$	87,608
Restricted cash included in other assets		343			343
Total cash, cash equivalents and restricted cash	$	55,310		$	87,951

Sientra, Inc.
Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
Dollars, in thousands	2020			2019			2020			2019
Net loss, as reported	$	(21,237	)	$	(20,247	)	$	(89,947	)	$	(106,818	)
Adjustments to net loss:
Interest (income) expense and other, net		2,122			923			9,134			3,217
Provision for income taxes		33			34			33			34
Depreciation and amortization		1,098			986			4,094			3,524
Fair value adjustments to contingent consideration		68			454			135			1,044
Fair value adjustments to derivative liability		2,050			—			10,470			—
Stock-based compensation		2,879			2,797			8,344			12,478
Restructuring		(87	)		1,083			1,762			1,083
One-time severance charges		2,539			—			2,539			—
Impairment		—			—			6,432			12,674
Total adjustments to net loss		10,702			6,277			42,943			34,054
Adjusted EBITDA	$	(10,535	)	$	(13,970	)	$	(47,004	)	$	(72,764	)



	Three Months Ended						Year Ended
	December 31,						December 31,
As a Percentage of Revenue**	2020			2019			2020			2019
Net loss, as reported		(93.8	%)		(87.2	%)		(126.3	%)		(127.6	%)
Adjustments to net loss:
Interest (income) expense and other, net		9.4	%		4.0	%		12.8	%		3.8	%
Provision for income taxes		0.1	%		0.1	%		0.0	%		0.0	%
Depreciation and amortization		4.8	%		4.2	%		5.7	%		4.2	%
Fair value adjustments to contingent consideration		0.3	%		2.0	%		0.2	%		1.2	%
Fair value adjustments to derivative liability		9.1	%		0.0	%		14.7	%		0.0	%
Stock-based compensation		12.7	%		12.1	%		11.7	%		14.9	%
Restructuring		(0.4	%)		4.7	%		2.5	%		1.3	%
One-time severance charges		11.2	%		0.0	%		3.6	%		0.0	%
Impairment		0.0	%		0.0	%		9.0	%		15.1	%
Total adjustments to net loss		47.3	%		27.0	%		60.3	%		40.7	%
Adjusted EBITDA		(46.5	%)		(60.2	%)		(66.0	%)		(86.9	%)

** Adjustments may not add to the total figure due to rounding

March 11, 2021 4:08 pm

Zosano Pharma Reports Fourth Quarter and Fiscal Year 2020 Financial Results

FREMONT, Calif., March 11, 2021 (GLOBE NEWSWIRE) — Zosano Pharma Corporation (NASDAQ:ZSAN), a clinical-stage biopharmaceutical company, today announced financial results for the fourth quarter and year ended December 31, 2020, as well as business highlights.

“Over this past year, we made important progress in advancing Qtrypta^TM towards the market,” said Steven Lo, president and chief executive officer of Zosano. “We expect to receive the FDA’s feedback on our pharmacokinetic study protocol shortly, and if supportive of our proposal, we are prepared to initiate this study quickly. Our clear priority is to resubmit our NDA as soon as possible so that patients suffering from debilitating migraines have access to Qtrypta, if approved. Separately, last year we also executed feasibility study agreements with Mitsubishi Tanabe Pharma Corporation and two other partners to explore additional potential therapeutic applications of our transdermal microneedle system technology.”

Select Business Highlights

Completed a Type A meeting with the U.S. Food and Drug Administration (“FDA”) Division of Neurology II (the “Division”) on January 29, 2021 regarding the requirements for resubmission of the Qtrypta (zolmitriptan transdermal microneedle system) 505(b)(2) New Drug Application (“NDA”) following the Complete Response Letter received on October 20, 2020
- Company plans to conduct an additional pharmacokinetic study that incorporates a patient skin assessment for inclusion in an NDA resubmission package, pending review of the study protocol by the FDA
Presented a post-hoc retrospective analysis of data from the ZOTRIP trial at the January 2021 Annual Headache Cooperative of the Pacific Winter Conference that suggested that Qtrypta™ conferred therapeutic benefit at 30 minutes consistent with recently published criteria for early onset of action, and that those patients who were pain free at 30 minutes were still pain free at 2 hours
Entered into three feasibility study agreements including one with Mitsubishi Tanabe Pharma Corporation. Under these agreements, Zosano plans to evaluate the feasibility of formulating each partner’s pharmaceutical agent for administration with its proprietary transdermal microneedle system technology
Partnered with EVERSANA, a leading provider of commercial services to the life science industry, to commercialize and distribute Qtrypta™, if approved, in the United States

Financial Results for the Fourth Quarter Ended December 31, 2020

Zosano reported a net loss for the fourth quarter of 2020 of $8.1 million, or $0.08 per share on a basic and diluted basis, compared with a net loss of $8.9 million, or $0.46 per share on a basic and diluted basis, for the same quarter in 2019.

Research and development expenses for the fourth quarter of 2020 were $5.4 million, compared with $5.6 million for the same quarter in 2019. The decrease of $0.2 million was due to $0.4 million of lower employee and consulting expenses partially offset by higher depreciation expense.

General and administrative expenses for the fourth quarter of 2020 were $2.6 million, compared with $3.1 million for the same quarter in 2019. The decrease of $0.5 million was primarily due to lower employee related expenses and professional service fees.

As of December 31, 2020, cash and cash equivalents were $35.3 million, compared with $6.3 million as of December 31, 2019.

Financial Results for the Fiscal Year Ended December 31, 2020

Zosano reported a net loss for the full year 2020 of $33.4 million, or $0.49 per share on a basic and diluted basis, compared with a net loss of $37.6 million, or $2.29 per share on a basic and diluted basis, for the full year 2019.

Research and development expenses for the full year 2020 were $21.6 million, compared with $25.4 million in 2019. The decrease of $3.8 million was primarily due to a decrease in pre-clinical and clinical trial costs, related to the completion of the Qtrypta™ long-term safety study, partially offset by an increase in costs associated with the scale up and technology transfer to our commercial manufacturing organizations.

General and administrative expenses for the full year 2020 were $11.2 million, compared with $11.8 million in 2019. The decrease of $0.6 million primarily resulted from lower employee related expenses.

About Zosano Pharma

Zosano Pharma Corporation is a clinical-stage biopharmaceutical company focused on developing products where rapid administration of approved molecules with established safety and efficacy profiles may provide substantial benefit to patients, in markets where patients remain underserved by existing therapies. The company’s transdermal microneedle system technology consists of titanium microneedles coated with drug that are designed to enable rapid systemic administration of therapeutics to patients. Zosano’s lead product candidate is Qtrypta™ (M207), which is a proprietary formulation of zolmitriptan designed to be delivered via its transdermal microneedle system technology, as an acute treatment for migraine. Learn more at www.zosanopharma.com.

Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the company’s plans to conduct an additional pharmacokinetic study that incorporates a patient skin assessment for inclusion in an NDA resubmission package, the timing with respect to the FDA’s feedback on the pharmacokinetic study protocol, plans for resubmission of the company’s Qtrypta NDA to the FDA, plans to evaluate and explore additional potential therapeutic applications of the company’s transdermal microneedle system technology under feasibility study agreements, the potential benefits of Qtrypta for patients and other future events and expectations described in this press release. Readers are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “might,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” “approximately” or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict, and actual outcomes may differ materially. These include risks and uncertainties, without limitation, associated with the company’s ability to obtain additional cash resources to continue operations, the process of discovering, developing and commercializing products that are safe and effective for use as human therapeutics, risks inherent in the effort to build a business around such products and other risks and uncertainties described under the heading “Risk Factors” in the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Although Zosano believes that the expectations reflected in these forward-looking statements are reasonable, Zosano cannot in any way guarantee that the future results, level of activity, performance or events and circumstances reflected in forward-looking statements will be achieved or occur. All forward-looking statements are based on information currently available to Zosano and Zosano assumes no obligation to update any such forward-looking statements.

Zosano Contacts:

Christine Matthews
Chief Financial Officer
510-745-1200

Zosano PR:

Sylvia Wheeler or Alexandra Santos
[email protected] or [email protected]

ZOSANO PHARMA CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2020			2019			2020			2019
	(unaudited)			(unaudited)
Service revenue	$	224		$	—		$	224		$	—
Operating expenses:
Cost of service revenue	171			—			171			—
Research and development	5,352			5,643			21,622			25,385
General and administrative	2,637			3,103			11,189			11,812
Total operating expenses	8,160			8,746			32,982			37,197
Loss from operations	(7,936		)	(8,746		)	(32,758		)	(37,197		)
Other income (expense):
Interest income	1			4			18			207
Interest expense	(158		)	(166		)	(719		)	(523		)
Other income (expense), net	(5		)	(32		)	90			(76		)
Loss before provision for income taxes	(8,098		)	(8,940		)	(33,369		)	(37,589		)
Provision for income taxes	—			—			—			—
Net loss	$	(8,098	)	$	(8,940	)	$	(33,369	)	$	(37,589	)

Net loss per common share – basic and diluted	$	(0.08	)	$	(0.46	)	$	(0.49	)	$	(2.29	)
Weighted-average shares used in computing net loss per common share – basic and diluted	102,066			19,409			67,907			16,384

ZOSANO PHARMA CORPORATION

CONDENSED BALANCE SHEETS

(in thousands, except par value and share amounts)

	December 31, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	35,263		$	6,316
Prepaid expenses and other current assets	453			497
Total current assets	35,716			6,813
Restricted cash	455			455
Property and equipment, net	30,909			24,636
Operating lease right-of-use assets	4,928			5,763
Other long-term assets	3			3
Total assets	$	72,011		$	37,670
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,884		$	4,356
Accrued compensation	2,294			2,015
Build-to-suit obligation, current portion	4,779			4,554
Operating lease liabilities, current portion	1,378			1,140
Paycheck Protection Program loan, current portion	809			—
Other accrued liabilities	3,367			4,172
Total current liabilities	14,511			16,237
Build-to-suit obligation, long-term portion, net of debt issuance costs and discount	4,359			6,095
Operating lease liabilities	4,687			5,931
Paycheck Protection Program loan, long-term portion	812			—
Other liabilities	127			15
Total liabilities	24,496			28,278

Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized; none issued and outstanding as of December 31, 2020 and 2019	—			—
Common stock, $0.0001 par value; 250,000,000 shares authorized as of December 31, 2020 and 2019, respectively; 102,066,218 and 23,503,214 shares issued and outstanding as of December 31, 2020 and 2019, respectively	10			2
Additional paid-in capital	379,695			308,211
Accumulated deficit	(332,190		)	(298,821		)
Total stockholders’ equity	47,515			9,392
Total liabilities and stockholders’ equity	$	72,011		$	37,670