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KKR Acquires Five Building Industrial Real Estate Portfolio in Phoenix

KKR Acquires Five Building Industrial Real Estate Portfolio in Phoenix

NEW YORK–(BUSINESS WIRE)–
KKR, a leading global investment firm, today announced the acquisition of a five building industrial portfolio (the “Portfolio”) in Phoenix, Arizona totaling approximately 540,000 square feet for a purchase price of $68.0 million.

The Portfolio consists of five shallow bay, last mile warehouses located in a highly infill submarkets less than 10 miles from downtown Phoenix. The portfolio was 100% leased at acquisition and features an average clear height of 25’ and an average vintage of 1988.

The transaction marks KKR’s second industrial real estate acquisition in the Phoenix market in 2021 and expands KKR’s total Phoenix industrial footprint to approximately 2.5 million square feet.

“The favorable demographic trends in Phoenix that we saw in 2019 and 2020 have continued to accelerate in 2021,” said Ben Brudney, a director in the Real Estate group at KKR. “We are excited to further grow our footprint in the market with the addition of this portfolio. Phoenix is an important market for us as we continue to expand in 2021 and beyond.”

KKR is making the investment through its Americas opportunistic equity real estate strategy. Across its funds, KKR owns over 33 million square feet of industrial property in strategic locations across major metropolitan areas in the U.S.

Since launching a dedicated real estate platform in 2011, KKR has grown its real estate assets under management to approximately $28 billion across the U.S., Europe and Asia Pacific as of December 31, 2020 (pro forma to include Global Atlantic’s assets following KKR’s acquisition of Global Atlantic on February 1, 2021). KKR’s global real estate team consists of approximately 100 dedicated investment professionals, spanning both the equity and credit business, across 11 offices and eight countries.

About KKR

KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Cara Major or Miles Radcliffe-Trenner

212-750-8300

[email protected]

KEYWORDS: Arizona New York United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property

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Augmedix Reports Fourth Quarter and Full Year 2020 Financial Results

SAN FRANCISCO, Calif., March 31, 2021 (GLOBE NEWSWIRE) — Augmedix, Inc. (OTCQX: AUGX), a leading provider of remote medical documentation and live clinical support, today reported financial results for the three months and full year ended December 31, 2020.

“We are very pleased with our strong finish to the year as we made meaningful progress on our operating leverage goals and growth initiatives. And I am particularly proud of the team’s performance given the challenging conditions brought about by the pandemic,” said Manny Krakaris, Chief Executive Officer of Augmedix. “We are uniquely positioned to capitalize on a $6 billion market opportunity, as our intelligent automation approach to the medical note creation process is highly differentiated. We expect our Notes and Live solutions and expanding ancillary services to continue enhancing physician productivity and satisfaction, thereby deepening our relationship with customers and bolstering our value proposition to physician practices and hospitals.”

Fourth Quarter 2020 Financial and Operational Highlights

All comparisons, unless otherwise noted, are to the three months ended December 31, 2019.

  • Total revenue was $4.5 million, an increase of 15% compared to $4.0 million
  • Dollar-based Net Revenue Retention was 108% for our Health Enterprise customers compared to 114% in 3Q20
  • GAAP Gross Margin expanded 980 basis points to 44.2% compared to 34.4%. Cost of revenue decreased by 2.3% as we drove operating efficiency through our platform
  • GAAP Operating Expenses were $5.6 million compared to $5.3 million. Operating Expenses grew wholly due to $0.3 million of reverse merger transaction expenses in 2020
  • GAAP Net Loss was $3.8 million compared to $3.7 million
  • EBITDA losses increased 11.6% to $3.4 million from $3.1 million, driven by the reverse merger transaction expenses
  • Cash and restricted cash as of December 31, 2020 was $23.0 million, which includes the proceeds from our $27.4 million capital raise that closed in the fourth quarter

EBITDA is a Non-GAAP financial measure. See “Non-GAAP Financial Measures”.

Full Year 2020 Financial and Operational Highlights

All comparisons, unless otherwise noted, are to the twelve months ended December 31, 2019.

  • Total revenue was $16.5 million, an increase of 17% compared to $14.1 million
  • Dollar-based Net Revenue Retention was 114% for our Health Enterprise customers compared to 135%
  • GAAP Gross Margin expanded 800 basis points to 41.2% compared to 33.2% as we drove operating efficiency through our platform
  • Adjusted EBITDA losses, which excludes the $1.1 million of expenses related to the reverse merger transaction, decreased 15% to $12.5 million from $14.7 million

Adjusted EBITDA is a Non-GAAP financial measure. See “Non-GAAP Financial Measures”.

Definition of Key Metrics

Dollar-Based Net Revenue Retention: We define a “Health Enterprise” as a company or network of doctors that has at least 50 clinicians currently employed or affiliated that could utilize our services. Dollar-based net revenue retention is determined as the revenue from Health Enterprises as of twelve months prior to such period end as compared to revenue from these same Health Enterprises as of the current period end, or current period revenue. Current period revenue includes any expansion or new products and is net of contraction or churn over the trailing twelve months but excludes revenue from new Health Enterprises in the current period. We believe growth in dollar-based net revenue retention is a key indicator of the performance of our business as it demonstrates our ability to increase revenue across our existing customer base through expansion of users and products, as well as our ability to retain existing customers.

About Augmedix

Augmedix converts natural clinician-patient conversation into medical documentation and provides live support, including referrals, orders, and reminders, so clinicians can focus on what matters most: patient care. The Augmedix platform is powered by a combination of proprietary automation modules and human-expert assistants operating in HIPAA-secure locations to generate accurate, comprehensive, and timely-delivered medical documentation. Augmedix services are compatible with over 37 specialties and are trusted by over one dozen American health systems and hundreds of independent clinicians supporting medical offices, clinics, hospitals and telemedicine. We estimate that our solution saves clinicians 2–3 hours per day, increases productivity by as much as 20%, and increases clinicians’ satisfaction with work-life balance over 49%. To learn more about Augmedix, visit augmedix.com.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted operating expenses, EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

Forward-Looking Statements

This press release contains “forward-looking statements” that involve a number of risks and uncertainties, including but not limited to our Notes and Live offerings and the quotation on the OTC market. Words such as “believes,” “may,” “will,” “estimates,” “potential,” “continues,” “anticipates,” “intends,” “expects,” “could,” “would,” “projects,” “plans,” “targets,” and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations as of the date of this filing and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our Form 10-K filed with the Securities and Exchange Commission on March 31, 2021 as well as other documents that may be filed by us from time to time with the Securities and Exchange Commission. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our expectations regarding changes in regulatory requirements; our ability to interoperate with the electronic health record systems of our customers; our reliance on vendors; our ability to attract and retain key personnel; the competition to attract and retain remote documentation specialists; anticipated trends, growth rates, and challenges in our business and in the markets in which we operate; our ability to further penetrate our existing customer base; our ability to protect and enforce our intellectual property protection and the scope and duration of such protection; developments and projections relating to our competitors and our industry, including competing dictation software providers, third-party, non-real time medical note generators and real time medical note documentation services; the impact of current and future laws and regulations; the impact of the COVID-19 crisis on our business, results of operations and future growth prospects. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investors:

Caroline Paul
Gilmartin Group
[email protected]

Media:

Kaila Grafeman
Augmedix
[email protected]

 
AUGMEDIX, INC.

Condensed Consolidated Statements of Operations

(in thousands)
       
  Three Months Ended   Year Ended
  December 31,

(


1)
 		  December 31,

(


1)
    2020       2019       2020       2019  
Revenue $ 4,543     $ 3,958     $ 16,483     $ 14,108  
Cost of revenue   2,536       2,596       9,689       9,429  
Gross profit   2,006       1,362       6,794       4,679  
               
General and administrative   3,086       2,604       11,567       10,861  
Sales and marketing   1,453       949       4,398       3,583  
Research and development   1,037       1,795       4,522       6,977  
Total operating expenses   5,576       5,348       20,487       21,421  
Operating loss   (3,569 )     (3,987 )     (13,693 )     (16,742 )
               
Other income (expense), net   (221 )     308       (1,911 )     (1,756 )
Net loss $ (3,790 )   $ (3,678 )   $ (15,604 )   $ (18,498 )
               

(1) Financials for the fiscal years presented are audited through December 31, 2020. Quarterly financials presented through December 31, 2020 are unaudited.

 
AUGMEDIX, INC.

Unaudited Reconciliation of GAAP to Non-GAAP Metrics

(Audited, in thousands)
       
  Three Months Ended   Year Ended
  December 31,   December 31,
    2020       2019       2020       2019  
Net loss $ (3,790 )   $ (3,678 )   $ (15,604 )   $ (18,498 )
Interest   256       433       1,453       2,812  
Tax   9       39       108       111  
Depreciation   221       261       867       949  
EBITDA $ (3,304 )   $ (2,946 )     (13,175 )     (14,626 )
Transaction Related Expenses $ 314     $ –     $ 1,067     $ –  
Adjusted EBITDA $ (2,990 )   $ (2,946 )   $ (12,109 )   $ (14,626 )
               
GAAP Operating Expenses $ 5,576     $ 5,348     $ 20,486     $ 21,422  
Transaction Related Expenses $ 314     $ –     $ 1,067     $ –  
Adjusted Operating Expenses $ 5,262     $ 5,348     $ 19,419     $ 21,422  
               



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Affordability Improved Amid Soaring Nominal House Prices, According to First American Real House Price Index

Affordability Improved Amid Soaring Nominal House Prices, According to First American Real House Price Index

—Nominal house prices increased over 13 percent on a year-over-year basis, but house-buying power has grown even faster, increasing by an amazing 19 percent year over year, says Chief Economist Mark Fleming—

SANTA ANA, Calif.–(BUSINESS WIRE)–First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today released the January 2021 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels.Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

Chief Economist Analysis: Soaring Nominal House Prices Don’t Tell Affordability Story

“Soaring nominal house prices dominate recent headlines and for good reason. It is true that nominal house prices are the highest they have ever been, over 22 percent higher than the housing boom peak in 2006, according to the First American Data & Analytics House Price Index,” said Mark Fleming, chief economist at First American. “The acceleration in the pace of annual house price growth began in the summer months of 2020, as potential home buyers emerged from lockdowns armed with record low mortgage rates and were met by historically low housing supply – a perfect storm for rapid nominal house price appreciation.

“By conventional measures of affordability, especially in an environment of modestly rising (in some markets declining) household income, a surge in nominal house prices implies significantly reduced affordability,” said Fleming. “Yet, nominal house price fluctuations alone, or even the relationship between nominal house price growth and income growth, can be a misleading indicator of affordability, and overlooks what matters more to potential buyers – house-buying power — how much home one can buy based on changes in income and interest rates.

“For example, let’s assume you earn $100,000 a year, have a 33 percent debt-to-income ratio, and put down 5 percent on a home. With a 4 percent mortgage rate, your house-buying power is $606,000. But, if rates fell to 3 percent, your house-buying power increases by $80,000. Our Real House Price Index (RHPI) adjusts nominal house prices for purchasing power by considering how income levels and interest rates influence the amount one can borrow,” said Fleming. “The ability of low or declining interest rates to boost house-buying power makes it possible for a housing market to have high or even rising nominal house prices yet remain highly affordable (as measured by the RHPI) and vice versa. Indeed, a walk down house price memory lane shows us that nominal house prices alone are not always a good measure of affordability.”

The 90s Recovery: Low House Prices, Low affordability

“In the chart, nationwide nominal house prices, real house prices, and house-buying power are all indexed to January 1990. From October 1993 through December 1994, a period when the U.S. economy was recovering from the early 1990s recession, housing was considered relatively unaffordable, even though nominal house prices were barely rising (1.0 percent),” said Fleming. “Despite relatively flat nominal house prices, the RHPI increased over 20 percent during this time period because house-buying power fell by 16 percent due to rising mortgage rates. Even though nominal house price growth was low, that was not enough to call the market ‘affordable’ since it was accompanied by declining house-buying power and declining affordability.”

The Housing Boom Era: High House Prices, Low Affordability

“Nominal house prices surged in 2005 and peaked in 2006. From January 2005 through March 2006, nominal house prices jumped nearly 13 percent, while mortgage rates remained relatively steady. During this time, the RHPI also increased dramatically by nearly 15 percent, indicating significantly reduced affordability,” said Fleming. “The reason? Nominal house price appreciation far outpaced house-buying power. During the housing boom era, rising nominal house prices did signal falling affordability, but only because house-buying power did not keep up.”

The Pandemic Era: High House Prices, High Affordability

“In the most recent RHPI report reflecting January 2021 data, nominal house prices increased over 13 percent on a year-over-year basis, but house-buying power has grown even faster, increasing by an amazing 19 percent year over year. The result? Despite rapidly rising nominal house prices, affordability actually improved, with the RHPI falling nearly 5 percent during the same time period,” said Fleming. “In fact, while nominal house prices are now more than 22 percent above the housing boom peak in 2006, real, house-buying power-adjusted, prices are 48 percent below their 2006 housing boom peak. The lesson? In housing, you can’t judge a housing market ‘book’ by its nominal house price ‘cover.’ Affordability is dependent on house-buying power.”

Will Rising Mortgage Rates Signal the End of an Affordable Era?

“Recently, mortgages rates have increased modestly. Does this spell the end of an affordable era? Not quite. As rates rise, affordability may become an issue for some buyers on the margin. As these buyers pull back from the market and sellers adjust their expectations, house price appreciation will adjust,” said Fleming. “But, the improving economic conditions and the ongoing shortage of supply relative to demand continue to support house price growth. The underlying fundamental housing market conditions support a moderation of house price appreciation which, alongside a healthier labor market and still historically low mortgage rates, should keep housing affordable.”

January 2021 Real House Price Index Highlights

  • Real house prices increased 1.2 percent between December 2020 and January 2021.
  • Real house prices declined 4.8 percent between January 2020 and January 2021.
  • Consumer house-buying power, how much one can buy based on changes in income and interest rates, increased 0.4 percent between December 2020 and January 2021, and increased 18.9 percent year over year.
  • Median household income has increased 6.2 percent since January 2020 and 74.8 percent since January 2000.
  • Real house prices are 25.6 percent less expensive than in January 2000.
  • While unadjusted house prices are now 22.2 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 47.8 percent below their 2006 housing boom peak.

January 2021 Real House Price State Highlights

  • The five states with the greatest year-over-year increase in the RHPI are: Wyoming (+3.4 percent), Arizona (+1.5 percent), Oklahoma (+1.1 percent), Ohio (+0.8 percent), and Alaska (+0.1 percent).
  • The five states with the greatest year-over-year decrease in the RHPI are: Louisiana (-8.7 percent), California (-8.4 percent), Illinois (-7.6 percent), Massachusetts (-7.4 percent), and New York (-7.3 percent).

January 2021 Real House Price Local Market Highlights

  • Among the Core Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over-year increase in the RHPI are: Kansas City, Mo. (+5.3 percent), Memphis, Tenn. (+4.3 percent), Tampa, Fla. (+3.7 percent), Cleveland (+3.5 percent), and Hartford, Conn. (+3.0 percent).
  • Among the Core Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over-year decrease in the RHPI are: San Francisco (-16.8 percent), San Jose, Calif. (-13.6 percent), Miami (-11.4 percent), Boston (-11.4 percent), and Dallas (-9.1 percent).

Next Release

The next release of the First American Real House Price Index will take place the week of April 26, 2021 for February 2021 data.

Sources

Methodology

The methodology statement for the First American Real House Price Index is available at http://www.firstam.com/economics/real-house-price-index.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2021 by First American. Information from this page may be used with proper attribution.

About First American

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.1 billion in 2020, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2020, First American was named to the Fortune 100 Best Companies to Work For® list for the fifth consecutive year. More information about the company can be found at www.firstam.com.

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

(714) 250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

(714) 250-5214

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Commercial Building & Real Estate Insurance Construction & Property Finance Banking REIT Professional Services Other Construction & Property Residential Building & Real Estate

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Cloud-Native Development Leader Lightbend’s Akka Cloud Platform Now Available on Google Cloud Marketplace

The technology that powers cloud native applications at massive scale for the world’s most recognizable brands is now available on the Google Cloud Platform

SAN FRANCISCO, March 31, 2021 (GLOBE NEWSWIRE) — Lightbend, the company providing cloud-native microservice frameworks for some of the world’s largest brands, today announced its Akka Cloud Platform is now available on Google Cloud Marketplace. As a result, enterprise development teams leveraging Google Cloud Marketplace can take advantage of Akka Cloud Platform’s unique capabilities to quickly build and deploy cloud-native microservices that easily integrate with other services and third-party services, such as Kafka. By doing so, these enterprises can quickly tackle complex digital transformation initiatives such as IoT, real-time financial processes, and modern e-commerce while taking full advantage of the massive scale, high resiliency and low latency the cloud delivers.

Akka Cloud Platform is built on Lightbend’s powerful Akka Platform technology, a leading framework for building large-scale distributed applications. With more than 20 million downloads annually, Akka is one of the most used programming models for cloud-native applications running on containers on Kubernetes. A well-architected solution built on Akka Platform delivers some of the highest possible performance, scalability, and resilience with the lowest possible cloud costs. This is why enterprises such as Starbucks, Verizon, Tubi, and John Deere use Akka to develop microservices-based applications optimized for distributed cloud computing requirements of unlimited scale and infallible resiliency to power their most mission-critical business applications.

“We are thrilled Akka Cloud Platform is now part of the Google Cloud Marketplace,” says James Ward, developer advocate at Google Cloud. “Akka Cloud Platform provides organizations optimized operations with Google Cloud’s advanced market-leading services for helping solve businesses’ toughest challenges.”

“The release of Akka Cloud Platform on the Google Cloud Marketplace is another step forward in Lightbend’s goal of giving every developer the application architecture required to successfully implement their business’s digitally transformative strategies. By easily integrating those applications with relevant Google Cloud services, organizations gain the ability to fully leverage the powerful distributed computing technology of Google Cloud just like many of the world’s most innovative companies,” said Brad Murdoch, EVP Strategy and Product at Lightbend.

Akka Cloud Platform for Google Cloud Marketplace optimizes the capabilities of Akka into the Google Cloud ecosystem, including improved deployment in the Google Kubernetes Engine (GKE). Telemetry and observability provide advanced system monitoring and management and there are simple integration paths for relevant Google Cloud services. Billing is managed through the Google Cloud Marketplace. Lightbend will continue its release of Akka Cloud Platform on additional cloud service providers throughout 2021.


Learn more
 about Akka Cloud Platform.

About Lightbend


Lightbend
 (@Lightbend) is leading the enterprise transformation toward real-time, cloud-native applications and setting the standard for cloud native architectures. Lightbend provides scalable, high-performance microservices frameworks and streaming engines for building data-centric systems that are optimized to run on cloud-native infrastructure like Red Hat OpenShift. Lightbend powers the world’s most innovative companies. For more information, visit www.lightbend.com.

Editorial Contact

Joanne Harris
+1 425 295 1373
[email protected]

Nichols Communications for Lightbend
Jay Nichols
+1 408 772 1551
[email protected]



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Techicorum Holdings Announces Rollout of TheTechLauncher, Spearheading the newest Regulated Crowdfunding Vertical – through Digital Assets

Platform presents opportunity for start-ups to build traction, social, proof, and validation to gain early adopters and loyal advocates

Singapore, March 31, 2021 (GLOBE NEWSWIRE) — (via Blockchain Wire) – What is the fastest way to raise financing for a startup in today’s market? Technicorum Holdings announced today “TheTechLauncher” its new crowdfunding platform that allows founders to pitch a project or business to obtain funding quickly and efficiently. TheTechLauncher enables start-ups to share their USPs (Unique Selling Proposition), get feedback and obtain expert guidance on how to improve their pitches. Companies can now raise funds through the issuance and sale of Digital Payment Tokens, an entirely new category which is the first of its kind, adding to the traditional crowdfunding types such as Charitable, Rewards-Based, Debt and Equity Crowdfunding. 

Early-stage companies focused on building business and attracting seed capital might not be able to spend the time required to pursue traditional financing channels. Compared to applying for a loan or seeking accredited investors, setting up a successful crowdfunding campaign on TheTechLauncher is far more efficient and effective in delivering compelling messages to the right audiences. With TheTechLauncher, companies can share their vision, set up enticing rewards, and benefit from having everything in one centralized location where potential backers can find them.

Despite its growth after a decade where it dominated a new wave of finance, equity crowdfunding is actually still in its infancy. In what seemed like an overnight transformation at the time, crowdfunding changed entire product verticals and industries in only a matter of hours, evidenced by the launch of such products as the Oculus Rift (eventually bought by Facebook for $2 billion) and Pebble smartwatch. GoFundMe, which launched shortly after Kickstarter and Indiegogo, allowed people to position themselves as a product as well by crowdfunding personal donations.

Tech launcher USPs:

  1. Auto Token Creation
  2. User friendly interface
  3. Easy access to blockchain industry (Defi)
  4. Connects Investors with Project Owners
  5. Decentralized Wallet Integration

How can Investors go into the platform and invest? 

Users can easily go to the TechLauncher website and become either an investor or a project owner or both. Investors are able to participate in farming events by new upcoming Defi Blockchain projects as part of their ICO.

As for Project Owners, they can use our features to connect with Users with ease as we have created an easy way for users to interact with the blockchain without having to deploy any smart contracts.  

How can Start-ups go into the platform?

Startups are able to sign up as Project Owners, after completing their KYB they can start creating their own projects, adding whitepaper links, creating farming pools, creating tokens, and adding their company website. Admin integration will be done in phase 2. Our landing page will display for popular projects or upcoming projects that will be launching through techlauncher

Why is TechLauncher different from other crowdfunding platforms?

TechLauncher offers founders a way to create their own farming pools and tokens without the need of any knowledge how to create a farming pool or how to create a token, or how to create an interface for each user.

Use Case
The KingSwap project was the first use-case of TheTechLauncher’s product roll-out, with a Technicorum Group subsidiary incubating and launching the well-known KingSwap project that is a mix of DeFi and NFTs, helping with token minting and creation, and marketing and managing the communities and social media outreach as well as various operational aspects of KingSwap.

KINGSWAP ADVISORY

KingSwap’s advisors include Venture Capitalist Dr. Giampaolo Parigi (PhD); Professor Alex Nascimento (MBA), Faculty and Co-Founder, Blockchain at UCLA; Michael Terpin, Founder and CEO of Transform Group and Co-Founder of BitAngels; Lionel Iruk, Esq.(J.D), Dr. Robert Choi (PhD), Frank D. (MBA), Dr. Anish Mohammed (M.D and PhD) and Malcolm Tan (LLM).

To learn more about KingSwap, join the KingSwap Telegram group or follow the project on Twitter.

ABOUT TECHNICORUM GROUP

Technicorum Group comprises of subsidiaries, a few which are regulated, specializing in various verticals in the Digital Assets space, with a one-stop-shop capability to launch, incubate and bring to the global market any blockchain, digital asset, fintech, NFT, DeFi etc project, and is primarily responsible for the KingSwap project, with references of over 100 ICO’s worked on in the past 3 years through its subsidiaries. 

ABOUT KINGSWAP

KingSwap (https://www.kingswap.io/) is a DeFi project based out of Singapore that is introducing a liquidity pool platform with fiat conversions. KingSwap’s high-yield liquidity platform offers extensive staking rewards, digital collectibles, and fiat conversions. An evolution of Uniswap, KingSwap provides user-friendly features that provide real-time benefits in terms of price curves and contributor rewards.

Websites: 
kingswap.io — kingswap.info — kingswap.exchange — kingswap.shop — kingswap.club

Telegram  TwitterInstagram LinkedinFacebook



Amanda Tan
Email Contact: [email protected]

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Walgreens Boots Alliance Fiscal 2021 Second Quarter Results Exceed Expectations

Walgreens Boots Alliance Fiscal 2021 Second Quarter Results Exceed Expectations

Company Raises Guidance for Fiscal Year

Second quarter results, year-over-year, including discontinued operations

  • Total earnings per share (EPS), including discontinued operations, increased 10.9 percent to $1.19, compared to $1.07 in the year-ago quarter; total adjusted EPS decreased 7.5 percent to $1.40, down 8.2 percent on a constant currency basis

Second quarter results, year-over-year, from continuing operations

  • Sales increased 4.6 percent to $32.8 billion, up 3.5 percent on a constant currency basis, excluding sales from discontinued operations of $4.8 billion
  • EPS from continuing operations increased 8.7 percent to $1.06; continuing operations adjusted EPS decreased 10.1 percent to $1.26, down 10.8 percent on a constant currency basis, reflecting an estimated adverse COVID-19 impact of 40 to 45 cents per share

Additional highlights

  • Net cash provided by operating activities in the first half of fiscal 2021 was $2.6 billion, an increase of $72 million compared with the same period a year ago; Free cash flow was $1.9 billion, up $85 million year-over-year
  • Walgreens has administered more than 8 million COVID-19 vaccines to date, including 4 million in March

Fiscal 2021 outlook

  • Company raised guidance to mid-to-high single digit growth in constant currency adjusted EPS from both total and continuing operations

CEO Transition

  • On March 15, Rosalind Brewer succeeded Stefano Pessina as the company’s chief executive officer and joined the WBA board of directors; Pessina transitioned to the role of executive chairman of the board

$6.5 billion divestiture of Alliance Healthcare on schedule to close before the end of fiscal 2021

  • Financial presentation changes: assets being divested are moved to discontinued operations

DEERFIELD, Ill.–(BUSINESS WIRE)–
Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today announced financial results for the second quarter of fiscal 2021, which ended Feb. 28, 2021.

“Overall, we have achieved a good financial quarter with results well ahead of expectations, despite significant impacts from COVID-19, and we have raised our full-year EPS guidance. I am optimistic about our ability to drive sustainable, long-term value for our shareholders, while acknowledging that there is still work to be done to stabilize the base business,” said Brewer. “I will continue to review closely all our initiatives, strategies and opportunities to capitalize fully on the incredible potential in front of us. Our team will move swiftly and decisively to best serve the needs of our patients, customers and communities around the world, at this critical time and beyond.”

Financial Reporting Revisions for Pending Disposition of Alliance Healthcare Businesses

On Jan. 6, 2021, WBA announced the sale of the majority of the company’s Alliance Healthcare business and a portion of the Retail Pharmacy International segment’s businesses in Europe to AmerisourceBergen for $6.5 billion. Upon closing, the company will account for the transaction as a business disposition. Until closing, the related assets, liabilities and operating results will be reported as discontinued operations and are reflected as such in the company’s second quarter financial results. As a result of the transaction, the company has reorganized its remaining businesses into two reportable operating segments, United States and International. Corporate-related overhead costs are recorded separately and included in consolidated continuing operations.

Overview of Second Quarter Results

WBA had fiscal 2021 second quarter sales from continuing operations of $32.8 billion, an increase of 4.6 percent from the year-ago quarter, and an increase of 3.5 percent on a constant currency basis1, reflecting strong International segment growth, aided by the company’s joint venture in Germany, and the United States segment.

Operating income from continuing operations was $832 million in the second quarter, compared with $1.1 billion in the same quarter a year ago. Adjusted operating income from continuing operations was $1.2 billion, a decrease of 22.5 percent on a reported currency basis and a decrease of 22.9 percent on a constant currency basis. The decreases reflect adverse COVID-19 impacts in the United States and International markets partly offset by cost savings related to the company’s Transformational Cost Management Program.

Total net earnings attributable to WBA, including discontinued operations, increased 8.4 percent compared with the same quarter a year ago to $1.0 billion, reflecting a gain from the sale of a portion of the company’s equity method investment in Option Care Health and a lower effective tax rate driven by discrete items, partly offset by lower operating income. Total adjusted net earnings in constant currency decreased 10.2 percent to $1.2 billion.

Total earnings per share2 (EPS) in the second quarter increased 10.9 percent to $1.19, compared to $1.07 in the year-ago quarter. Total adjusted EPS decreased 7.5 percent to $1.40, down 8.2 percent on a constant currency basis.

Net earnings from continuing operations in the second quarter increased 6.3 percent compared with the same quarter a year ago to $922 million. Adjusted net earnings from continuing operations decreased 12.1 percent to $1.1 billion, down 12.8 percent on a constant currency basis, compared with the same quarter a year ago.

EPS from continuing operations increased 8.7 percent to $1.06. Adjusted EPS from continuing operations was $1.26 compared with $1.41 the same quarter a year ago, a decrease of 10.1 percent on a reported basis and a decrease of 10.8 percent on a constant currency basis.

Net cash provided by operating activities was $1.4 billion in the second quarter and free cash flow was $1.1 billion, a $5 million decrease compared to the year-ago quarter.

Overview of Fiscal 2021 Year-to-Date Results

Sales from continuing operations in the first six months of fiscal 2021 were $64.2 billion, an increase of 4.8 percent from the same period a year ago, and an increase of 4.0 percent on a constant currency basis1.

Operating income from continuing operations in the first six months of fiscal 2021 was $298 million, a decrease of 85.5 percent from the same period a year ago mostly due to a charge in the first quarter from the company’s equity earnings in AmerisourceBergen. Adjusted operating income from continuing operations in the first six months of the fiscal year was $2.4 billion, a decrease of 17.2 percent from the same period a year ago on a reported basis, down 17.6 percent on a constant currency basis.

For the first six months of fiscal 2021, total net earnings attributable to WBA, including discontinued operations, decreased 59.9 percent compared with the same period a year earlier, to $718 million. Total adjusted net earnings in constant currency decreased 12.2 percent to $2.3 billion.

Total EPS2, including discontinued operations, decreased 58.8 percent to $0.83. Total adjusted EPS decreased 9.3 percent to $2.62, down 9.8 percent on a constant currency basis.

In the same time period, net earnings from continuing operations decreased 67.5 percent compared with the same period a year earlier, to $531 million. Adjusted net earnings from continuing operations decreased 13.7 percent compared with the same period a year ago, to $2.0 billion, down 14.3 percent on a constant currency basis.

EPS from continuing operations for the first six months of fiscal 2021 decreased 66.7 percent to $0.61, compared with the same period a year ago. Adjusted EPS from continuing operations was $2.36, a decrease of 11.4 percent on a reported basis and a decrease of 12.0 percent on a constant currency basis reflecting adverse COVID-19 impacts of 70 to 75 cents per share.

Net cash provided by operating activities was $2.6 billion in the first six months of fiscal 2021, an increase of $72 million from the same period last year, and free cash flow was $1.9 billion, an increase of $85 million from the same period a year ago.

Company Outlook

The company raised fiscal 2021 guidance to mid-to-high single digit growth in constant currency adjusted EPS from both total and continuing operations. Previous guidance was for low single-digit growth. The revised guidance reflects first-half performance above expectations and anticipated strong growth in the second half of the fiscal year. The situation continues to be fluid in the second half due to COVID-19.

Fighting the Pandemic

Walgreens and Boots UK pharmacists continue to play a critical role on the front lines of the pandemic, including the following examples through March to date.

  • Walgreens has administered more than 8 million COVID-19 vaccinations including 4 million in March, and has provided some 5 million COVID-19 tests.
  • Working closely with the National Health Service (NHS), Boots UK has supported more than 2.6 million COVID-19 tests at 66 sites and has launched 25 major vaccination hubs at Boots stores.

Selected Highlights of Progress on Strategic Priorities:

  • Creating neighborhood health destinations around a more modern pharmacy
    • WBA established internally a technology-enabled healthcare startup, aimed at developing an integrated digital and physical consumer-centric healthcare delivery model.
    • Walgreens is on track to open 40 Village Medical at Walgreens locations by the end of the summer.
  • Accelerating digitalization
    • Walgreens digitally initiated retail sales increased 78 percent in the second quarter compared with the year-ago quarter.
    • WBA made a majority investment in pharmacy automation solutions company iA to support its expansion and further development, aiming to improve pharmacy efficiency and free up pharmacists’ time.
    • Walgreens Find Care platform use increased to nearly 70 million visits in the second quarter, mostly driven by COVID-19 testing and vaccinations.
  • Transforming and restructuring the company’s retail offering
    • MyWalgreens membership grew to 56 million, an increase of more than 40 percent since the start of the calendar year.
    • As part of its continued focus on creating alternative profit streams, Walgreens expanded its financial services business strategy, announcing it will launch a range of services including credit cards and a digital bank account with debit card access.
    • Walgreens launched nationwide rollout of same-day delivery with Instacart.
    • More than 4 million orders have been completed since the launch of Walgreens same-day pick-up.
    • Boots UK online sales doubled in the second quarter.
  • Driving the Transformational Cost Management Program
    • The company is on track to deliver in excess of $2 billion in annual cost savings by fiscal 2022.

Business Segments

United States:

The United States segment had second quarter sales of $27.3 billion, an increase of 0.4 percent from the year-ago quarter, including the adverse impact of store optimization programs and the 2020 leap day. Comparable sales increased 2.0 percent from the year-ago quarter reflecting a 4.5 percent increase in comparable pharmacy sales and a 3.5 percent decline in comparable retail sales.

Within comparable sales, prescriptions filled in the second quarter decreased 1.1 percent from a year earlier, including a combined negative impact of 480 basis points from an exceptionally weak cough, cold and flu season and reduced doctor visits. Total prescriptions filled in the quarter decreased 2.8 percent, compared with the same quarter a year earlier. The number of prescriptions filled was 288.5 million, including immunizations, adjusted to 30-day equivalents. Pharmacy sales, which accounted for 74.9 percent of the segment’s sales in the quarter, increased 3.0 percent compared with the year-ago quarter.

The segment’s retail prescription market share on a 30-day adjusted basis in the second quarter decreased approximately 30 basis points over the year-ago quarter to 20.9 percent, as reported by IQVIA, including the impact of store optimization programs.

Retail sales decreased 6.6 percent in the second quarter compared with the year-ago period, including adverse impacts from the store optimization programs and the 2020 leap day.

Comparable retail sales decreased 3.5 percent compared with the same quarter a year ago, reflecting the weaker cough, cold and flu season, which negatively impacted growth by 350 basis points. Comparable retail sales, excluding tobacco and e-cigarettes, decreased 2.7 percent. Within comparable retail sales, discretionary categories continued to decline, with beauty decreasing 8.8 percent. Excluding the impact of seasonal flu, sales in the health and wellness category increased 9.1 percent.

Gross profit decreased 2.2 percent compared with the same quarter a year ago and adjusted gross profit decreased 3.2 percent, in both cases primarily driven by pharmacy reimbursement pressure, retail volume and pharmacy volume, partly offset by pharmacy procurement, COVID-19 vaccines and testing, and retail margin.

Second quarter SG&A increased by 3.3 percent, and adjusted SG&A increased by 2.1 percent, reflecting COVID-19 related costs, including approximately $80 million of costs relating to roll-out of the vaccination program, as well as higher growth investments. These increases were partly offset by cost savings related to the Transformational Cost Management Program.

Operating income in the second quarter decreased 21.8 percent to $828 million from the year-ago quarter. Adjusted operating income decreased 18.2 percent, to $1.2 billion, reflecting COVID-19 related impacts and pharmacy reimbursement pressure, partly offset by pharmacy procurement and cost savings from the Transformational Cost Management Program.

International:

The International segment had second quarter sales of $5.4 billion, an increase of 32.6 percent from the year-ago quarter, including a favorable currency impact of 8.7 percent. Sales increased 23.9 percent on a constant currency basis, entirely due to the company’s new joint venture in Germany, which was consolidated as of November 2020. Excluding incremental sales from the joint venture, International segment sales on a constant currency basis declined 9.9 percent, mainly due to a 17.8 percent decrease in Boots UK sales resulting from COVID-19 related impacts.

Boots UK comparable pharmacy sales increased 3.2 percent compared to the year-ago quarter, reflecting favorable timing of National Health Service (NHS) reimbursement, and stronger pharmacy services, which mitigated the impact of lower prescription volume.

Boots UK comparable retail sales decreased 17.9 percent compared to the year-ago quarter. COVID-19 continued to impact footfall, particularly in major high streets, and in train stations and airports. The recovery in footfall trends seen in early autumn was set back by the re-introduction of stricter restrictions beginning in November. However, Boots.com continued to perform very strongly with sales up 105 percent compared with the year-ago quarter, partially offsetting the reduced footfall.

Boots UK continued to gain market share in the beauty category, but restrictions due to the pandemic impacted all other categories, reflecting the shift in buying habits to one-stop grocery shopping.

Gross profit decreased 9.2 percent compared with the same quarter a year ago, including a favorable currency impact of 4.2 percent. Adjusted gross profit decreased 13.4 percent on a constant currency basis reflecting lower UK retail sales and pharmacy volumes, partly offset by the favorable timing of NHS reimbursement and by incremental gross profit associated with the Germany joint venture.

SG&A in the quarter decreased 7.2 percent from the prior year quarter to $973 million, including an adverse currency impact of 4.2 percent. On a constant currency basis, adjusted SG&A decreased 9.6 percent. Both decreases reflect short-term cost mitigation actions and cost savings from the Transformational Cost Management Program, partly offset by higher SG&A associated with the formation of the Germany joint venture.

Operating income decreased 24.0 percent to $106 million, including a favorable currency impact of 4.4 percent. On a constant currency basis, adjusted operating income decreased 31.8 percent, reflecting strict COVID-19 restrictions in the UK, partly offset by decisive cost management actions and strong Boots.com performance.

Conference Call

WBA will hold a conference call to discuss the second quarter results beginning at 8:30 a.m. Eastern time today, March 31, 2021. The conference call will be simulcast through the WBA investor relations website at: http://investor.walgreensbootsalliance.com. A replay of the conference call will be archived on the website for 12 months after the call.

The replay also will be available from 11:30 a.m. Eastern time, March 31 through April 7, 2021, by calling +1 800 585 8367 within the U.S. and Canada, or +1 416 621 4642 outside the U.S. and Canada, using replay code 1550649.

1 Please see the “Supplemental Information (Unaudited) Regarding Non-GAAP Financial Measures” at the end of this press release for more detailed information regarding non-GAAP financial measures used, including all measures presented as “adjusted” or on a “constant currency” basis, and free cash flow.

2 All references to net earnings are to net earnings attributable to WBA and all references to EPS are to diluted EPS attributable to WBA.

Cautionary Note Regarding Forward-Looking Statements: All statements in this release that are not historical including, without limitation, those regarding estimates of and goals for future operating, financial and tax performance and results (including those under “Company Outlook” and “Selected Highlights of Progress on Strategic Priorities” above), the expected execution and effect of our business strategies, the potential impacts on our business of the spread and effects of the COVID-19 pandemic, including the estimated impacts herein, the closing of the sale of our Alliance Healthcare business to AmerisourceBergen, our cost-savings and growth initiatives, pilot programs, strategic partnerships and initiatives, and restructuring activities and the amounts and timing of their expected impact and the delivery of annual cost savings are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “pilot,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “goal,” “guidance,” “target,” “aim,” “continue,” “sustain,” “synergy,” “transform,” “accelerate,” “model,” “long-term,” “on track,” “on schedule,” “headwind,” “tailwind,” “believe,” “seek,” “estimate,” “anticipate,” “upcoming,” “to come,” “may,” “possible,” “assume,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated, including, but not limited to, those relating to the spread and impacts of COVID-19, any mutations thereof or future pandemic and the acceptance and effectiveness of any therapies or vaccines related thereto, our ability to access therapies and vaccines on time and in quantities to meet consumer demand and our ability to process and distribute such therapies and vaccines efficiently, the impact of private and public third-party payers’ efforts to reduce prescription drug reimbursements, including the timing and amount of reimbursements for COVID-19 vaccinations, fluctuations in foreign currency exchange rates, the timing and magnitude of the impact of branded to generic drug conversions and changes in generic drug prices, our ability to realize synergies and achieve operating, financial and tax results in the amounts and at the times anticipated, the inherent risks, challenges and uncertainties associated with forecasting financial results of large, complex organizations in rapidly evolving industries, particularly over longer time periods, and during periods with increased volatility and uncertainties, our supply, commercial and framework arrangements and transactions with AmerisourceBergen and their possible effects, the risks associated with the company’s equity method investment in AmerisourceBergen, circumstances that could give rise to the termination, cross-termination or modification of any of our contractual obligations, the amount of costs, fees, expenses and charges incurred in connection with strategic transactions, whether the costs and charges associated with restructuring initiatives will exceed estimates, our ability to realize expected savings and benefits from cost-savings initiatives, restructuring activities and acquisitions and joint ventures in the amounts and at the times anticipated, the timing and amount of any impairment or other charges, the timing and severity of cough, cold and flu season, risks associated with the withdrawal of the United Kingdom from the European Union, risks relating to looting and vandalism in regions in which we operate and the scope and magnitude of any property damage, inventory loss or other adverse impacts, risks related to pilot programs and new business initiatives and ventures generally, including the risks that anticipated benefits may not be realized, changes in management’s plans and assumptions, the risks associated with governance and control matters, the ability to retain key personnel, changes in economic and business conditions generally or in particular markets in which we participate, changes in financial markets, credit ratings and interest rates, the risks relating to the terms, timing, and magnitude of any share repurchase activity, the risks associated with international business operations, including international trade policies, tariffs, including tariff negotiations between the United States and China, and relations, the risks associated with cybersecurity or privacy breaches related to customer information, changes in vendor, customer and payer relationships and terms, including changes in network participation and reimbursement terms and the associated impacts on volume and operating results, risks related to competition, including changes in market dynamics, participants, product and service offerings, retail formats and competitive positioning, risks associated with new business areas and activities, risks associated with acquisitions, divestitures, joint ventures and strategic investments, including those relating to the asset acquisition from Rite Aid and the sale of our Alliance Healthcare business to AmerisourceBergen, the risks associated with the integration of complex businesses, the impact of regulatory restrictions and outcomes of legal and regulatory matters, and risks associated with changes in laws, including those related to tax law changes, regulations or interpretations thereof. These and other risks, assumptions and uncertainties are described in Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal year ended August 31, 2020 and in other documents that we file or furnish with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All forward-looking statements we make or that are made on our behalf are qualified by these cautionary statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.

We do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Please refer to the supplemental information presented below for reconciliations of the non-GAAP financial measures used in this release to the most comparable GAAP financial measure and related disclosures.

Notes to Editors:

About Walgreens Boots Alliance

Walgreens Boots Alliance (Nasdaq: WBA) is a global leader in retail and wholesale pharmacy, touching millions of lives every day through dispensing and distributing medicines, its convenient retail locations, digital platforms and health and beauty products. The company has more than 100 years of trusted health care heritage and innovation in community pharmacy and pharmaceutical wholesaling.

Including equity method investments, WBA has a presence in more than 25 countries, employs more than 450,000 people and has more than 21,000 stores.

WBA’s purpose is to help people across the world lead healthier and happier lives. The company is proud of its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable marketplace. WBA is a Participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. WBA is included in FORTUNE’s 2021 list of the World’s Most Admired Companies.* This is the 28th consecutive year that WBA or its predecessor company, Walgreen Co., has been named to the list

More company information is available at www.walgreensbootsalliance.com.

*© 2021, Fortune Media IP Limited. Used under license.

(WBA-ER)

WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(UNAUDITED)

(in millions, except per share amounts)
 

 

 

Three months ended

 

Six months ended

 

 

February 28,

2021

 

February 29,

2020

 

February 28,

2021

 

February 29,

2020

Sales

 

$

32,779

 

 

$

31,336

 

 

$

64,217

 

 

$

61,247

 

Cost of sales

 

25,998

 

 

24,318

 

 

50,806

 

 

47,453

 

Gross profit

 

6,781

 

 

7,017

 

 

13,411

 

 

13,794

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

6,029

 

 

5,909

 

 

11,820

 

 

11,778

 

Equity earnings (loss) in AmerisourceBergen

 

80

 

 

28

 

 

(1,293

)

 

41

 

Operating income

 

832

 

 

1,136

 

 

298

 

 

2,057

 

 

 

 

 

 

 

 

 

 

Other income

 

251

 

 

28

 

 

313

 

 

64

 

Earnings before interest and tax

 

1,083

 

 

1,164

 

 

611

 

 

2,121

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

137

 

 

156

 

 

272

 

 

315

 

Earnings before tax

 

946

 

 

1,008

 

 

339

 

 

1,806

 

Income tax provision (benefit)

 

42

 

 

149

 

 

(165

)

 

172

 

Post tax earnings (loss) from other equity method investments

 

13

 

 

12

 

 

29

 

 

(1

)

Net earnings from continuing operations

 

918

 

 

870

 

 

532

 

 

1,633

 

Net earnings from discontinued operations

 

107

 

 

81

 

 

194

 

 

160

 

Net earnings

 

1,025

 

 

952

 

 

726

 

 

1,793

 

Net earnings (loss) attributable to noncontrolling interests – continuing operations

 

(4

)

 

3

 

 

1

 

 

(3

)

Net earnings attributable to noncontrolling interests – discontinued operations

 

3

 

 

2

 

 

7

 

 

5

 

Net earnings attributable to Walgreens Boots Alliance, Inc.

 

1,026

 

 

946

 

 

718

 

 

1,791

 

Net earnings attributable to Walgreens Boots Alliance, Inc.:

 

 

 

 

 

 

 

 

Continuing operations

 

$

922

 

 

$

867

 

 

$

531

 

 

$

1,636

 

Discontinued operations

 

104

 

 

79

 

 

187

 

 

155

 

Total

 

$

1,026

 

 

$

946

 

 

$

718

 

 

$

1,791

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.07

 

 

$

0.98

 

 

$

0.61

 

 

$

1.84

 

Discontinued operations

 

0.12

 

 

0.09

 

 

0.22

 

 

0.17

 

Total

 

$

1.19

 

 

$

1.07

 

 

$

0.83

 

 

$

2.02

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.06

 

 

$

0.98

 

 

$

0.61

 

 

$

1.84

 

Discontinued operations

 

0.12

 

 

0.09

 

 

0.22

 

 

0.17

 

Total

 

$

1.19

 

 

$

1.07

 

 

$

0.83

 

 

$

2.01

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

864.2

 

 

884.5

 

 

864.7

 

 

887.9

 

Diluted

 

865.6

 

 

885.5

 

 

865.7

 

 

889.1

 

WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(UNAUDITED)

(in millions)
 

 

 

February 28, 2021

 

August 31, 2020

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,030

 

 

$

469

 

Accounts receivable, net

 

4,878

 

 

4,110

 

Inventories

 

8,541

 

 

7,917

 

Other current assets

 

796

 

 

598

 

Assets of discontinued operations – current

 

10,839

 

 

4,979

 

Total current assets

 

26,084

 

 

18,073

 

 

 

 

 

 

Non-current assets:

 

 

 

 

Property, plant and equipment, net

 

12,588

 

 

12,796

 

Operating lease right-of-use assets

 

21,908

 

 

21,453

 

Goodwill

 

12,468

 

 

12,013

 

Intangible assets, net

 

10,486

 

 

10,072

 

Equity method investments

 

6,202

 

 

7,204

 

Other non-current assets

 

1,183

 

 

581

 

Assets of discontinued operations – non-current

 

—

 

 

4,983

 

Total non-current assets

 

64,836

 

 

69,101

 

Total assets

 

$

90,920

 

 

$

87,174

 

 

 

 

 

 

Liabilities, redeemable noncontrolling interest and equity

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$

5,161

 

 

$

3,265

 

Trade accounts payable

 

11,009

 

 

10,145

 

Operating lease obligation

 

2,360

 

 

2,358

 

Accrued expenses and other liabilities

 

6,400

 

 

5,861

 

Income taxes

 

89

 

 

95

 

Liabilities of discontinued operations – current

 

6,228

 

 

5,347

 

Total current liabilities

 

31,246

 

 

27,070

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

Long-term debt

 

10,998

 

 

12,203

 

Operating lease obligation

 

22,134

 

 

21,765

 

Deferred income taxes

 

1,232

 

 

1,367

 

Other non-current liabilities

 

3,374

 

 

3,222

 

Liabilities of discontinued operations – non-current (see note 2)

 

—

 

 

412

 

Total non-current liabilities

 

37,739

 

 

38,968

 

 

 

 

 

 

Redeemable noncontrolling interest

 

309

 

 

—

 

Total equity

 

21,625

 

 

21,136

 

Total liabilities, redeemable noncontrolling interest and equity

 

$

90,920

 

 

$

87,174

 

WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in millions)

 

 

Six months ended

 

 

February 28,

2021

 

February 29,

2020

Cash flows from operating activities:

 

 

 

 

Net earnings

 

$

726

 

 

$

1,793

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

948

 

 

969

 

Deferred income taxes

 

(264

)

 

(45

)

Stock compensation expense

 

70

 

 

67

 

Equity (earnings) loss from equity method investments

 

1,253

 

 

(47

)

Gain on sale of equity method investment

 

(191

)

 

—

 

Other

 

(104

)

 

37

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

(556

)

 

(324

)

Inventories

 

(248

)

 

(242

)

Other current assets

 

(9

)

 

56

 

Trade accounts payable

 

743

 

 

555

 

Accrued expenses and other liabilities

 

254

 

 

139

 

Income taxes

 

(53

)

 

(355

)

Other non-current assets and liabilities

 

(12

)

 

(119

)

Net cash provided by operating activities

 

2,556

 

 

2,484

 

Cash flows from investing activities:

 

 

 

 

Additions to property, plant and equipment

 

(692

)

 

(705

)

Proceeds from sale-leaseback transactions

 

452

 

 

333

 

Proceeds from sale of other assets

 

269

 

 

37

 

Business, investment and asset acquisitions, net of cash acquired

 

(1,314

)

 

(286

)

Other

 

(71

)

 

3

 

Net cash used for investing activities

 

(1,356

)

 

(617

)

Cash flows from financing activities:

 

 

 

 

Net change in short-term debt with maturities of 3 months or less

 

350

 

 

(655

)

Proceeds from debt

 

6,538

 

 

9,860

 

Payments of debt

 

(6,503

)

 

(9,465

)

Stock purchases

 

(110

)

 

(913

)

Proceeds related to employee stock plans

 

21

 

 

28

 

Cash dividends paid

 

(808

)

 

(857

)

Other

 

(134

)

 

(82

)

Net cash used for financing activities

 

(647

)

 

(2,085

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

13

 

 

(1

)

Changes in cash, cash equivalents and restricted cash:

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

566

 

 

(218

)

Cash, cash equivalents and restricted cash at beginning of period

 

746

 

 

1,207

 

Cash, cash equivalents and restricted cash at end of period

 

$

1,311

 

 

$

988

 

WALGREENS BOOTS ALLIANCE, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

REGARDING NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts)

The following information provides reconciliations of the supplemental non-GAAP financial measures, as defined under SEC rules, presented in this press release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). The company has provided the non-GAAP financial measures in the press release, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Please refer to the notes to the “Net Earnings and Diluted Net Earnings (Loss) Per Share” reconciliation table on page 14 for definitions of non-GAAP financial measures and related adjustments presented in this press release.

These supplemental non-GAAP financial measures are presented because management has evaluated the company’s financial results both including and excluding the adjusted items or the effects of foreign currency translation, as applicable, and believes that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the company’s business from period to period and trends in the company’s historical operating results. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Company Outlook” above) where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Constant currency

The company also presents certain information related to current period operating results in “constant currency,” which is a non-GAAP financial measure. These amounts are calculated by translating current period results at the foreign currency exchange rates used in the comparable period in the prior year. The company presents such constant currency financial information because it has significant operations outside of the United States reporting in currencies other than the U.S. dollar and this presentation provides a framework to assess how its business performed excluding the impact of foreign currency exchange rate fluctuations.

Comparable sales

For the company’s United States and International segments, comparable sales are defined as sales from stores that have been open for at least 12 consecutive months without closure for seven or more consecutive days, including due to looting or store damage, and without a major remodel or being subject to a natural disaster in the past 12 months as well as e-commerce sales. E-commerce sales include digitally initiated sales online or through mobile applications. Relocated stores are not included as comparable stores for the first 12 months after the relocation. Acquired stores are not included as comparable sales for the first 12 months after acquisition or conversion, when applicable, whichever is later. Comparable sales, comparable pharmacy sales, comparable retail sales, comparable number of prescriptions and comparable number of 30-day equivalent prescriptions refer to total sales, pharmacy sales, retail sales, number of prescriptions and number of 30-day equivalent prescriptions, respectively. Comparable retail sales for previous periods have been restated to include e-commerce sales. The method of calculating comparable sales varies across the retail industry. As a result, the company’s method of calculating comparable sales may not be the same as other retailers’ methods.

With respect to the International segment, comparable sales, comparable pharmacy sales and comparable retail sales, are presented on a constant currency basis, which is a non-GAAP financial measure. Refer to the discussion above in “Constant currency” for further details on constant currency calculations.

Key Performance Indicators

The company considers certain metrics, including all comparable metrics, number of prescriptions, number of 30-day equivalent prescriptions and number of locations at period end, to be key performance indicators because the company’s management has evaluated its results of operations using these metrics and believes that these key performance indicators presented provide additional perspective and insights when analyzing the core operating performance of the company from period to period and trends in its historical operating results. These key performance indicators should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented herein. These measures may not be comparable to similarly-titled performance indicators used by other companies.

NET EARNINGS (LOSS) AND DILUTED NET EARNINGS (LOSS) PER SHARE

 

 

Three months ended

 

Six months ended

 

 

February 28, 2021

 

February 29, 2020

 

February 28, 2021

 

February 29, 2020

Net earnings attributable to Walgreens Boots Alliance, Inc. – continuing operations (GAAP)

 

$

922

 

 

$

867

 

 

$

531

 

 

$

1,636

 

 

 

 

 

 

 

 

 

 

Adjustments to operating income:

 

 

 

 

 

 

 

 

Adjustments to equity earnings (loss) in AmerisourceBergen1

 

45

 

 

73

 

 

1,526

 

 

152

 

Transformational cost management2

 

178

 

 

118

 

 

278

 

 

198

 

Acquisition-related amortization3

 

114

 

 

98

 

 

209

 

 

197

 

Certain legal and regulatory accruals and settlements4

 

60

 

 

—

 

 

60

 

 

—

 

LIFO provision5

 

2

 

 

28

 

 

35

 

 

61

 

Acquisition-related costs6

 

(5

)

 

99

 

 

16

 

 

223

 

Store optimization2

 

—

 

 

30

 

 

—

 

 

39

 

Total adjustments to operating income

 

393

 

 

445

 

 

2,124

 

 

869

 

 

 

 

 

 

 

 

 

 

Adjustments to other income:

 

 

 

 

 

 

 

 

Net investment hedging (gain) loss7

 

(7

)

 

7

 

 

1

 

 

(4

)

Gain on sale of equity method investment8

 

(191

)

 

—

 

 

(191

)

 

(1

)

Total adjustments to other income

 

(199

)

 

6

 

 

(190

)

 

(5

)

 

 

 

 

 

 

 

 

 

Adjustments to income tax provision (benefit):

 

 

 

 

 

 

 

 

U.S. tax law changes9

 

—

 

 

—

 

 

—

 

 

(6

)

Tax impact of adjustments9

 

(52

)

 

(90

)

 

(113

)

 

(170

)

Equity method non-cash tax9

 

20

 

 

1

 

 

(326

)

 

(1

)

Total adjustments to income tax provision (benefit)

 

(33

)

 

(89

)

 

(439

)

 

(177

)

 

 

 

 

 

 

 

 

 

Adjustments to post tax equity earnings from other equity method investments:

 

 

 

 

 

 

 

 

Adjustments to equity earnings in other equity method investments10

 

24

 

 

15

 

 

37

 

 

43

 

Total adjustments to post tax equity earnings from other equity method investments

 

24

 

 

15

 

 

37

 

 

43

 

 

 

 

 

 

 

 

 

 

Adjustments to net earnings (loss) attributable to noncontrolling interests:

 

 

 

 

 

 

 

 

Transformational cost management2

 

3

 

 

—

 

 

2

 

 

—

 

LIFO provision5

 

(3

)

 

—

 

 

(6

)

 

—

 

Acquisition-related amortization3

 

(12

)

 

—

 

 

(16

)

 

—

 

Total adjustments to net earnings (loss) attributable to noncontrolling interests

 

(13

)

 

—

 

 

(20

)

 

—

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. – continuing operations (Non-GAAP measure)

 

$

1,095

 

 

$

1,246

 

 

$

2,043

 

 

$

2,367

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to Walgreens Boots Alliance, Inc. – discontinued operations (GAAP)

 

$

104

 

 

$

79

 

 

$

187

 

 

$

155

 

Acquisition-related amortization3

 

7

 

 

$

19

 

 

28

 

 

$

38

 

Acquisition-related costs6

 

8

 

 

$

—

 

 

10

 

 

$

—

 

Transformational cost management2

 

4

 

 

$

5

 

 

9

 

 

$

11

 

Tax impact of adjustments9

 

(6

)

 

$

(7

)

 

(11

)

 

$

(7

)

Total adjustments to net earnings attributable to Walgreens Boots Alliance, Inc. – discontinued operations

 

$

14

 

 

$

17

 

 

$

36

 

 

$

42

 

Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. – discontinued operations (Non-GAAP measure)

 

$

119

 

 

$

97

 

 

$

223

 

 

$

198

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. – (Non-GAAP measure)

 

$

1,214

 

 

$

1,343

 

 

$

2,266

 

 

$

2,565

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per common share – continuing operations (GAAP)

 

$

1.06

 

 

$

0.98

 

 

$

0.61

 

 

$

1.84

 

Adjustments to operating income

 

0.45

 

 

0.50

 

 

2.45

 

 

0.98

 

Adjustments to other income

 

(0.23

)

 

0.01

 

 

(0.22

)

 

(0.01

)

Adjustments to income tax provision (benefit)

 

(0.04

)

 

(0.10

)

 

(0.51

)

 

(0.20

)

Adjustments to equity earnings in other equity method investments10

 

0.03

 

 

0.02

 

 

0.04

 

 

0.05

 

Adjustments to net earnings (loss) attributable to noncontrolling interests

 

(0.01

)

 

—

 

 

(0.02

)

 

—

 

Adjusted diluted net earnings per common share – continuing operations (Non-GAAP measure)

 

$

1.26

 

 

$

1.41

 

 

$

2.36

 

 

$

2.66

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per common share – discontinued operations (GAAP)

 

$

0.12

 

 

$

0.09

 

 

$

0.22

 

 

$

0.17

 

Total adjustments to net earnings (loss) attributable to Walgreens Boots Alliance, Inc. – discontinued operations

 

0.02

 

 

0.02

 

 

0.04

 

 

0.05

 

Adjusted diluted net earnings per common share – discontinued operations (Non-GAAP measure)

 

$

0.14

 

 

$

0.11

 

 

$

0.26

 

 

$

0.22

 

 

 

 

 

 

 

 

 

 

Adjusted diluted net earnings per common share (Non-GAAP measure)

 

$

1.40

 

 

$

1.52

 

 

$

2.62

 

 

$

2.88

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted (in millions)

 

865.6

 

 

885.5

 

 

865.7

 

 

889.1

 

1

Adjustments to equity earnings (loss) in AmerisourceBergen consist of the Company’s proportionate share of non-GAAP adjustments reported by AmerisourceBergen consistent with the Company’s non-GAAP measures. The Company recognized equity losses in AmerisourceBergen of $1,373 million during the three months ended November 30, 2020. These equity losses are primarily due to AmerisourceBergen recognition of $5.6 billion, net of tax, charges related to its ongoing opioid litigation in its financial statements for the three months period ended September 30, 2020.

2

Transformational Cost Management Program and Store Optimization Program charges are costs associated with a formal restructuring plan. These charges are primarily recorded within selling, general and administrative expenses. These costs do not reflect current operating performance and are impacted by the timing of restructuring activity.

3

Acquisition-related amortization includes amortization of acquisition-related intangible assets and inventory valuation adjustments. Amortization of acquisition-related intangible assets includes amortization of intangibles assets such as customer relationships, trade names, trademarks and contract intangibles. Intangible asset amortization excluded from the related non-GAAP measure represents the entire amount recorded within the company’s GAAP financial statements, the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP measures. Amortization expense, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. These charges are primarily recorded within selling, general and administrative expenses. Business combination accounting principles require us to measure acquired inventory at fair value. The fair value of the inventory reflects cost of acquired inventory and a portion of the expected profit margin. The acquisition-related inventory valuation adjustments excludes the expected profit margin component from cost of sales recorded under the business combination accounting principles.

4

Certain legal and regulatory accruals and settlements relate to significant charges associated with certain legal proceedings. The Company excludes these charges when evaluating operating performance because it does not incur such charges on a predictable basis and exclusion of such charges enables more consistent evaluation of the Company’s operating performance. These charges are recorded within selling, general and administrative expenses.

5

The company’s United States segment inventory is accounted for using the last-in-first-out (“LIFO”) method. This adjustment represents the impact on cost of sales as if the United States segment inventory is accounted for using first-in first-out (“FIFO”) method. The LIFO provision is affected by changes in inventory quantities, product mix, and manufacturer pricing practices, which may be impacted by market and other external influences. Therefore, the company cannot control the amounts recognized or timing of these items.

6

Acquisition-related costs are transaction and integration costs associated with certain merger, acquisition and divestitures related activities. These costs include all charges incurred on certain mergers, acquisition and divestitures related activities, for example, including costs related to integration efforts for successful merger, acquisition and divestitures activities. These charges are primarily recorded within selling, general and administrative expenses. These costs are significantly impacted by the timing and complexity of the underlying merger, acquisition and divestitures related activities and do not reflect the company’s current operating performance.

7

Gain or loss on certain derivative instruments used as economic hedges of the company’s net investments in foreign subsidiaries. These charges are recorded within other income (expense). We do not believe this volatility related to mark-to-market adjustment on the underlying derivative instruments reflects the company’s operational performance.

8

Includes significant gain on sale of equity method investment. During the three months ended February 28, 2021, the Company recorded a gain of $191 million in Other income due to a partial sale of its equity method investment in Option Care Health.

9

Adjustments to income tax provision include adjustments to the GAAP basis tax provision commensurate with non-GAAP adjustments and certain discrete tax items including U.S. tax law changes and equity method non-cash tax. These charges are recorded within income tax provision (benefit).

10

Adjustments to post tax equity earnings from other equity method investments consist of the proportionate share of certain equity method investees’ non-cash items or unusual or infrequent items consistent with the company’s non-GAAP adjustments. These charges are recorded within post tax earnings (loss) from other equity method investments. Although the company may have shareholder rights and board representation commensurate with its ownership interests in these equity method investees, adjustments relating to equity method investments are not intended to imply that the company has direct control over their operations and resulting revenue and expenses. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all revenue and expenses of these equity method investees.

NON-GAAP RECONCILIATIONS BY SEGMENT

 

 

Three months ended February 28, 2021

 

 

United States1

 

International

 

Corporate and

Other

 

Walgreens Boots

Alliance, Inc.

Sales

 

$

27,344

 

 

$

5,425

 

 

$

10

 

 

$

32,779

 

Gross profit (GAAP)

 

$

5,702

 

 

$

1,079

 

 

$

—

 

 

$

6,781

 

Transformational cost management

 

1

 

 

(1

)

 

—

 

 

—

 

LIFO provision

 

2

 

 

—

 

 

—

 

 

2

 

Adjusted gross profit (Non-GAAP measure)

 

$

5,704

 

 

$

1,078

 

 

$

—

 

 

$

6,783

 

Selling, general and administrative expenses (GAAP)

 

$

4,954

 

 

$

973

 

 

$

102

 

 

$

6,029

 

Transformational cost management

 

(140

)

 

(21

)

 

(17

)

 

(178

)

Acquisition-related amortization

 

(96

)

 

(17

)

 

—

 

 

(114

)

Certain legal and regulatory accruals and settlements

 

(60

)

 

—

 

 

—

 

 

(60

)

Acquisition-related costs

 

9

 

 

(2

)

 

(2

)

 

5

 

Adjusted selling, general and administrative expenses (Non-GAAP measure)

 

$

4,667

 

 

$

933

 

 

$

83

 

 

$

5,683

 

Operating income (loss) (GAAP)

 

$

828

 

 

$

106

 

 

$

(102

)

 

$

832

 

Adjustments to equity earnings (loss) in AmerisourceBergen

 

45

 

 

—

 

 

—

 

 

45

 

Transformational cost management

 

140

 

 

21

 

 

17

 

 

178

 

Acquisition-related amortization

 

96

 

 

17

 

 

—

 

 

114

 

Certain legal and regulatory accruals and settlements

 

60

 

 

—

 

 

—

 

 

60

 

LIFO provision

 

2

 

 

—

 

 

—

 

 

2

 

Acquisition-related costs

 

(9

)

 

2

 

 

2

 

 

(5

)

Adjusted operating income (loss) (Non-GAAP measure)

 

$

1,163

 

 

$

146

 

 

$

(83

)

 

$

1,225

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

20.9

%

 

19.9

%

 

 

 

20.7

%

Adjusted gross margin (Non-GAAP measure)

 

20.9

%

 

19.9

%

 

 

 

20.7

%

Selling, general and administrative expenses percent to sales (GAAP)

 

18.1

%

 

17.9

%

 

 

 

18.4

%

Adjusted selling, general and administrative expenses percent to sales (Non-GAAP measure)

 

17.1

%

 

17.2

%

 

 

 

17.3

%

Operating margin2

 

2.7

%

 

2.0

%

 

 

 

2.3

%

Adjusted operating margin (Non-GAAP measure)2

 

3.8

%

 

2.7

%

 

 

 

3.4

%

1

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two month reporting lag, operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020 and the period of July 1, 2020 through December 31, 2020, respectively. Operating income for the three and six month period ended February 29, 2020 includes AmerisourceBergen equity earnings for the period of October 1, 2019 through December 31, 2019, and the period of July 1, 2019 through December 31, 2019, respectively.

2

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

 

 

Three months ended February 29, 2020

 

 

United States1

 

International

 

Corporate and

Other

 

Walgreens Boots

Alliance, Inc.

Sales

 

$

27,245

 

 

$

4,091

 

 

$

—

 

 

$

31,336

 

Gross profit (GAAP)

 

$

5,827

 

 

$

1,188

 

 

$

3

 

 

$

7,017

 

Transformational cost management

 

3

 

 

—

 

 

—

 

 

3

 

LIFO provision

 

28

 

 

—

 

 

—

 

 

28

 

Acquisition-related costs

 

32

 

 

—

 

 

—

 

 

32

 

Store optimization

 

1

 

 

—

 

 

—

 

 

1

 

Adjusted gross profit (Non-GAAP measure)

 

$

5,890

 

 

$

1,188

 

 

$

3

 

 

$

7,081

 

Selling, general and administrative expenses (GAAP)

 

$

4,796

 

 

$

1,048

 

 

$

65

 

 

$

5,909

 

Transformational cost management

 

(53

)

 

(44

)

 

(18

)

 

(115

)

Acquisition-related amortization

 

(79

)

 

(19

)

 

—

 

 

(98

)

Acquisition-related costs

 

(66

)

 

—

 

 

(1

)

 

(67

)

Store optimization

 

(29

)

 

—

 

 

—

 

 

(29

)

Adjusted selling, general and administrative expenses (Non-GAAP measure)

 

$

4,569

 

 

$

985

 

 

$

45

 

 

$

5,600

 

Operating income (GAAP)

 

$

1,059

 

 

$

140

 

 

$

(62

)

 

$

1,136

 

Adjustments to equity earnings (loss) in AmerisourceBergen

 

73

 

 

—

 

 

—

 

 

73

 

Transformational cost management

 

56

 

 

44

 

 

18

 

 

118

 

Acquisition-related amortization

 

79

 

 

19

 

 

—

 

 

98

 

LIFO provision

 

28

 

 

—

 

 

—

 

 

28

 

Acquisition-related costs

 

98

 

 

—

 

 

1

 

 

99

 

Store optimization

 

30

 

 

—

 

 

—

 

 

30

 

Adjusted operating income (Non-GAAP measure)

 

$

1,422

 

 

$

203

 

 

$

(43

)

 

$

1,582

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

21.4

%

 

29.0

%

 

 

 

22.4

%

Adjusted gross margin (Non-GAAP measure)

 

21.6

%

 

29.0

%

 

 

 

22.6

%

Selling, general and administrative expenses percent to sales (GAAP)

 

17.6

%

 

25.6

%

 

 

 

18.9

%

Adjusted selling, general and administrative expenses percent to sales (Non-GAAP measure)

 

16.8

%

 

24.1

%

 

 

 

17.9

%

Operating margin2

 

3.8

%

 

3.4

%

 

 

 

3.5

%

Adjusted operating margin (Non-GAAP measure)2

 

4.8

%

 

5.0

%

 

 

 

4.7

%

1

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two month reporting lag, operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020 and the period of July 1, 2020 through December 31, 2020, respectively. Operating income for the three and six month period ended February 29, 2020 includes AmerisourceBergen equity earnings for the period of October 1, 2019 through December 31, 2019, and the period of July 1, 2019 through December 31, 2019, respectively.

2

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

 

 

Six months ended February 28, 2021

 

 

United States1

 

International

 

Corporate and

Other

 

Walgreens Boots

Alliance, Inc.

Sales

 

$

54,507

 

 

$

9,709

 

 

$

—

 

 

$

64,217

 

Gross profit (GAAP)

 

$

11,341

 

 

$

2,069

 

 

$

1

 

 

$

13,411

 

Transformational cost management

 

—

 

 

(1

)

 

—

 

 

—

 

LIFO provision

 

35

 

 

—

 

 

—

 

 

35

 

Adjusted gross profit (Non-GAAP measure)

 

$

11,375

 

 

$

2,069

 

 

$

1

 

 

$

13,445

 

Selling, general and administrative expenses (GAAP)

 

$

9,723

 

 

$

1,925

 

 

$

172

 

 

$

11,820

 

Transformational cost management

 

(201

)

 

(48

)

 

(29

)

 

(278

)

Certain legal and regulatory accruals and settlements

 

(60

)

 

—

 

 

—

 

 

(60

)

Acquisition-related amortization

 

(173

)

 

(36

)

 

—

 

 

(209

)

Acquisition-related costs

 

1

 

 

(4

)

 

(13

)

 

(16

)

Adjusted selling, general and administrative expenses (Non-GAAP measure)

 

$

9,291

 

 

$

1,837

 

 

$

129

 

 

$

11,257

 

Operating income (loss) (GAAP)

 

$

324

 

 

$

145

 

 

$

(172

)

 

$

298

 

Adjustments to equity earnings (loss) in AmerisourceBergen

 

1,526

 

 

—

 

 

—

 

 

1,526

 

Transformational cost management

 

201

 

 

47

 

 

29

 

 

278

 

Acquisition-related amortization

 

173

 

 

36

 

 

—

 

 

209

 

Certain legal and regulatory accruals and settlements

 

60

 

 

—

 

 

—

 

 

60

 

LIFO provision

 

35

 

 

—

 

 

—

 

 

35

 

Acquisition-related costs

 

(1

)

 

4

 

 

13

 

 

16

 

Adjusted operating income (loss) (Non-GAAP measure)

 

$

2,318

 

 

$

232

 

 

$

(129

)

 

$

2,422

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

20.8

%

 

21.3

%

 

 

 

20.9

%

Adjusted gross margin (Non-GAAP measure)

 

20.9

%

 

21.3

%

 

 

 

20.9

%

Selling, general and administrative expenses percent to sales (GAAP)

 

17.8

%

 

19.8

%

 

 

 

18.4

%

Adjusted selling, general and administrative expenses percent to sales (Non-GAAP measure)

 

17.0

%

 

18.9

%

 

 

 

17.5

%

Operating margin2

 

3.0

%

 

1.5

%

 

 

 

2.5

%

Adjusted operating margin (Non-GAAP measure)2

 

3.8

%

 

2.4

%

 

 

 

3.4

%

1

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two month reporting lag, operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020 and the period of July 1, 2020 through December 31, 2020, respectively. Operating income for the three and six month period ended February 29, 2020 includes AmerisourceBergen equity earnings for the period of October 1, 2019 through December 31, 2019, and the period of July 1, 2019 through December 31, 2019, respectively.

2

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

 

 

Six months ended February 29, 2020

 

 

United States1

 

International

 

Corporate and

Other

 

Walgreens Boots

Alliance, Inc.

Sales

 

$

53,377

 

 

$

7,870

 

 

$

—

 

 

$

61,247

 

Gross profit (GAAP)

 

$

11,541

 

 

$

2,252

 

 

$

2

 

 

$

13,794

 

Transformational cost management

 

3

 

 

3

 

 

—

 

 

6

 

LIFO provision

 

61

 

 

—

 

 

—

 

 

61

 

Acquisition-related costs

 

60

 

 

—

 

 

—

 

 

60

 

Store optimization

 

1

 

 

—

 

 

—

 

 

1

 

Adjusted gross profit (Non-GAAP measure)

 

$

11,666

 

 

$

2,254

 

 

$

2

 

 

$

13,922

 

Selling, general and administrative expenses (GAAP)

 

$

9,605

 

 

$

2,060

 

 

$

113

 

 

$

11,778

 

Transformational cost management

 

(118

)

 

(54

)

 

(20

)

 

(192

)

Acquisition-related amortization

 

(156

)

 

(41

)

 

—

 

 

(197

)

Acquisition-related costs

 

(160

)

 

(1

)

 

(2

)

 

(163

)

Store optimization

 

(38

)

 

—

 

 

—

 

 

(38

)

Adjusted selling, general and administrative expenses (Non-GAAP measure)

 

$

9,134

 

 

$

1,964

 

 

$

91

 

 

$

11,189

 

Operating income (GAAP)

 

$

1,977

 

 

$

191

 

 

$

(111

)

 

$

2,057

 

Transformational cost management

 

121

 

 

57

 

 

20

 

 

198

 

Acquisition-related amortization

 

156

 

 

41

 

 

—

 

 

197

 

LIFO provision

 

61

 

 

—

 

 

—

 

 

61

 

Acquisition-related costs

 

220

 

 

1

 

 

2

 

 

223

 

Store optimization

 

39

 

 

—

 

 

—

 

 

39

 

Adjustments to equity earnings (loss) in AmerisourceBergen

 

152

 

 

—

 

 

—

 

 

152

 

Adjusted operating income (Non-GAAP measure)

 

$

2,725

 

 

$

290

 

 

$

(89

)

 

$

2,926

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

21.6

%

 

28.6

%

 

 

 

22.5

%

Adjusted gross margin (Non-GAAP measure)

 

21.9

%

 

28.6

%

 

 

 

22.7

%

Selling, general and administrative expenses percent to sales (GAAP)

 

18.0

%

 

26.2

%

 

 

 

19.2

%

Adjusted selling, general and administrative expenses percent to sales (Non-GAAP measure)

 

17.1

%

 

25.0

%

 

 

 

18.3

%

Operating margin2

 

3.6

%

 

2.4

%

 

 

 

3.3

%

Adjusted operating margin (Non-GAAP measure)2

 

4.7

%

 

3.7

%

 

 

 

4.5

%

1

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two month reporting lag, operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020 and the period of July 1, 2020 through December 31, 2020, respectively. Operating income for the three and six month period ended February 29, 2020 includes AmerisourceBergen equity earnings for the period of October 1, 2019 through December 31, 2019, and the period of July 1, 2019 through December 31, 2019, respectively.

2

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

EQUITY EARNINGS (LOSS) IN AMERISOURCEBERGEN

 

 

Three months ended

 

Six months ended

 

 

February 28, 2021

 

February 29, 2020

 

February 28, 2021

 

February 29, 2020

Equity earnings in AmerisourceBergen (GAAP)

 

$

80

 

 

$

28

 

 

$

(1,293

)

 

$

41

 

Litigation settlements and other

 

16

 

 

8

 

 

1,564

 

 

44

 

Acquisition-related amortization

 

30

 

 

31

 

 

60

 

 

61

 

New York State Opioid Stewardship Act

 

—

 

 

—

 

 

3

 

 

—

 

Asset Impairment

 

—

 

 

29

 

 

3

 

 

29

 

Certain discrete tax benefits

 

(6

)

 

—

 

 

—

 

 

—

 

PharMEDium remediation costs

 

—

 

 

3

 

 

—

 

 

6

 

Anti-Trust

 

—

 

 

(2

)

 

—

 

 

(2

)

LIFO provision

 

(6

)

 

3

 

 

(13

)

 

14

 

Tax reform

 

11

 

 

—

 

 

(90

)

 

—

 

Adjusted equity earnings in AmerisourceBergen (Non-GAAP measure)

 

$

125

 

 

$

101

 

 

$

234

 

 

$

193

 

 

 

 

 

 

 

 

 

 

ADJUSTED EFFECTIVE TAX RATE

 

 

Three months ended February 28, 2021

 

Three months ended February 29, 2020

 

 

Earnings

before

income tax

provision

 

Income tax

provision

 

Effective

tax rate

 

Earnings

before

income tax

provision

 

Income tax

provision

 

Effective

tax rate

Effective tax rate (GAAP)

 

$

946

 

 

$

42

 

 

4.4

%

 

$

1,008

 

 

$

149

 

 

14.8

%

Impact of non-GAAP adjustments

 

194

 

 

31

 

 

 

 

452

 

 

84

 

 

 

Equity method non-cash tax

 

—

 

 

(20

)

 

 

 

—

 

 

(1

)

 

 

Adjusted tax rate true-up

 

—

 

 

21

 

 

 

 

—

 

 

6

 

 

 

Subtotal

 

$

1,141

 

 

$

75

 

 

 

 

$

1,460

 

 

$

238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exclude adjusted equity earnings in AmerisourceBergen

 

(125

)

 

—

 

 

 

 

(101

)

 

—

 

 

 

Adjusted effective tax rate excluding adjusted equity earnings in AmerisourceBergen (Non-GAAP measure)

 

$

1,015

 

 

$

75

 

 

7.3

%

 

$

1,359

 

 

$

238

 

 

17.5

%

 

 

Six months ended February 28, 2021

 

Six months ended February 29, 2020

 

 

Earnings

(loss)

before

income tax

provision

 

Income tax

 

Effective

tax rate

 

Earnings

before

income tax

provision

 

Income tax

 

Effective

tax rate

Effective tax rate (GAAP)

 

$

339

 

 

$

(165

)

 

(48.6

)%

 

$

1,806

 

 

$

172

 

 

9.5

%

Impact of non-GAAP adjustments

 

1,934

 

 

86

 

 

 

 

864

 

 

163

 

 

 

Equity method non-cash tax

 

—

 

 

326

 

 

 

 

—

 

 

1

 

 

 

Adjusted tax rate true-up

 

—

 

 

28

 

 

 

 

—

 

 

7

 

 

 

U.S. tax law changes

 

—

 

 

—

 

 

 

 

—

 

 

6

 

 

 

Subtotal

 

$

2,273

 

 

$

275

 

 

 

 

$

2,670

 

 

$

349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exclude adjusted equity earnings in AmerisourceBergen

 

(234

)

 

—

 

 

 

 

(193

)

 

—

 

 

 

Adjusted effective tax rate excluding adjusted equity earnings in AmerisourceBergen (Non-GAAP measure)

 

$

2,040

 

 

$

275

 

 

13.5

%

 

$

2,477

 

 

$

349

 

 

14.1

%

FREE CASH FLOW

 

 

Three months ended

 

Six months ended

 

 

February 28, 2021

 

February 29, 2020

 

February 28, 2021

 

February 29, 2020

Net cash provided by operating activities (GAAP)

 

$

1,361

 

 

$

1,423

 

 

$

2,556

 

 

$

2,484

 

Less: Additions to property, plant and equipment – as reported

 

(261)

 

 

(318)

 

 

(692)

 

 

(705)

 

Free cash flow – (Non-GAAP measure)1

 

$

1,100

 

 

$

1,105

 

 

$

1,864

 

 

$

1,779

 

1

Free cash flow is defined as net cash provided by operating activities in a period less additions to property, plant and equipment (capital expenditures) made in that period. This measure does not represent residual cash flows available for discretionary expenditures as the measure does not deduct the payments required for debt service and other contractual obligations or payments for future business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statements of cash flows.

 

Media Relations

U.S. / Morry Smulevitz, +1 847 315 0517

International, +44 (0)20 7980 8585

Investor Relations

Gerald Gradwell and Jay Spitzer, +1 847 315 2922

KEYWORDS: Europe United States United Kingdom North America Illinois

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AYRO Announces Year-End 2020 Financial Results and Provides Corporate Update

Earnings conference call to be held Wednesday, March 31, 2021 at 8:30 a.m. ET

AUSTIN, TX, March 31, 2021 (GLOBE NEWSWIRE) — AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), a designer and manufacturer of light-duty, short-haul, and last-mile delivery electric vehicles (EVs), today announced financial results for its fiscal year ended 12/31/20.


Fiscal Year 2020 Financial Highlights:

  ● Revenue of $1.6 million (+80% YOY) in FY2020 vs. $0.9 million for FY2019
  ● Net Loss Attributable to Common Stockholders of ($11.2) million in FY2020 vs. ($8.6) million in FY2019
  ● Adjusted EBITDA loss of ($7.8) million for FY 2020 vs. ($4.4) million for FY2019
  ● Total Cash of $36.5 million as of December 31, 2020 vs. $0.6 million as of December 31, 2019
  ● Total debt of $0.02 million as of December 31, 2020 vs. $1.3 million as of December 31, 2019


Recent Corporate Highlights:

  ● Completed a reverse merger with DropCar, Inc. in May 2020
  ● Established strategic manufacturing, engineering, and design partnership with Karma Automotive’s Innovation and Customization Center (KICC) with a targeted production capacity of 20,000 light-duty trucks and electric delivery vehicles over the next three years
  ● Completed expansion of Austin manufacturing facility from 10,000 square feet to 24,000 square feet to increase production capacity from 200 EVs per month to 600 per month
  ● Announced an agreement with Element Fleet Management (“Element”), the world’s largest pure-play automotive fleet manager, to support the deployment of large fleets of AYRO electric delivery vehicles over the next four years
  ● Announced an industry-first electric vaccine vehicle (EVV) with partners Element, Club Car, and Gallery Carts to expand access to COVID-19 vaccination and testing
  ● Raised a total of $39.75 million in in gross proceeds from the sale of common stock through four registered direct offerings during 2019

“As pleased as I am that revenue in fiscal 2020 showed an increase of 80% over fiscal 2019 and that the fourth quarter of 2020 marked the fifth consecutive quarter of year-over-year revenue increase, I know that we are still in the very early stages of the EV cycle,” commented AYRO Chief Executive Officer Rod Keller.

“Much of our corporate activities in 2020 and thus far in 2021 are necessary developmental steps in establishing the foundation for AYRO to be successful in the quarters and years ahead in our effort to sell fleets of vehicles at a time to commercial fleet customers, which is far different than selling one vehicle at a time to a typical consumer. We are a B2B company, not B2C. Expanding our manufacturing capacity in Austin, establishing the strategic partnership with Karma Automotive for future mass production capacity, nurturing our strategic relationships with Club Car and Gallery Carts and, as recently announced, now with Element Fleet Management, the world’s largest pure-play fleet manager, and fortifying our balance sheet are all designed to position us for future growth.

“Our ‘ecosystem’ strategy bears repeating, as it makes us unique in the EV industry. No other EV manufacturer appears to be building the necessary infrastructure around their EV offerings the way AYRO is. Commercial customers looking to buy 10, 20, or even 50 or more vehicles at a time need financing solutions to acquire a fleet of EVs. They then need a way to insure these cars, which is not as easy a process for EVs as it is for traditional gasoline-powered vehicles. Other concerns like storing the EVs, repairs and servicing, and re-selling on the back end of a lease are real-world issues that commercial customers want and need answers to given the novelty of managing an EV fleet. In Element, we have a partner that has one million vehicles under management and over 5,500 clients, so they have the answers and solutions that potential commercial customers need. We could not be happier to be partnering with Element, and we expect them to be a significant part of our ecosystem.

“Moreover, the announcement of the electric vaccine vehicle, or EVV, is a great demonstration of the value of our ecosystem, as it also brings us together with our partners Element, Club Car, and Gallery Carts to offer the industry’s first EV focused on helping to deliver COVID-19 vaccines to the public. This is a new venture for us all, but we are collectively thrilled at the possibility of offering critical healthcare assistance to hospitals and to local, state, and federal governments. There are numerous benefits the EVV can offer the healthcare community in accelerating the COVID-19 vaccine rollout, and we are quite enthusiastic at its potential.

“Finally, in addition to the launch of the industry-first EVV in the near-term, we also expect to launch our 411x light-duty EV truck in 2021 and unveil our 311x later this year, too, with scaled production for the 311x expected to begin in the first half of 2022. The 311x is our next-generation vehicle targeted at the restaurant delivery market.

We are thankful for our shareholder support and look forward to sharing additional progress and corporate milestones with investors. Our goal remains to be the leader in purpose-built EVs,” concluded Mr. Keller.


Conference Call Today:

Rod Keller, CEO and Curt Smith, CFO will be conducting a conference call this morning at 8:30 a.m. ET in which they will lead a discussion of year-end financial results with a Q&A session to follow. To listen to the conference call, interested parties should dial 1-877-270-2148 (domestic) or 1-412-902-6510 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the AYRO, Inc. conference call.

The conference call will also be available through a live webcast that can be accessed at https://services.choruscall.com/links/ayro210331.html or via the Company’s website at https://ir.ayro.com/news-events/ir-calendar.

The webcast replay will be available until June 30, 2021 and can be accessed through the above links. A telephonic replay will be available until April 14, 2021 by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 10153583.

About AYRO, Inc.

Texas-based AYRO, Inc. engineers and manufactures purpose-built electric vehicles to enable sustainable fleets. With rapid, customizable deployments that meet specific buyer needs, AYRO’s agile EVs are an eco-friendly microdistribution alternative to gasoline vehicles. The AYRO 411 Club Car is the only zero-emission, light duty EV known to AYRO that can be optimized for the needs of any sustainable fleet. AYRO innovates with speed, discipline, and agility and was founded in 2017 by entrepreneurs, investors, and executives with a passion for creating sustainable urban electric vehicle solutions for micromobility. For more information, visit: www.ayro.com.


Forward-Looking Statements

This press release may contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any expected future results, performance, or achievements. Words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “may,” “plan,” “project,” “target,” “will,” “would” and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: we have a history of losses and has never been profitable, and we expect to incur additional losses in the future and may never be profitable; the market for our products is developing and may not develop as expected; our business is subject to general economic and market conditions, including trade wars and tariffs; our business, results of operations and financial condition may be adversely impacted by public health epidemics, including the recent COVID-19 outbreak; our limited operating history makes evaluating our business and future prospects difficult and may increase the risk of any investment in our securities; we may experience lower-than-anticipated market acceptance of our vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially adverse effect on the demand for our electric vehicles; the markets in which we operate are highly competitive, and we may not be successful in competing in these industries; a significant portion of our revenues are derived from a single customer; we rely on and intend to continue to rely on a single third-party supplier located in China for the sub-assemblies in semi-knocked-down state for all of our current vehicles; we may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims; the range of our electric vehicles on a single charge declines over time, which may negatively influence potential customers’ decisions whether to purchase our vehicles; increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, could harm our business; we may be required to raise additional capital to fund our operations, and such capital raising may be costly or difficult to obtain and could dilute our stockholders’ ownership interests, and our long-term capital requirements are subject to numerous risks; we may fail to comply with environmental and safety laws and regulations; and we are subject to governmental export and import controls that could impair our ability to compete in international market due to licensing requirements and subject us to liability if we are not in compliance with applicable laws. A discussion of these and other factors is set forth in our most recently quarterly report on Form 10-Q and subsequent reports on Form 10-K and Form 10-Q. Forward-looking statements speak only as of the date they are made and we disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For media inquiries: For investor inquiries:
Liz Crumpacker Joseph Delahoussaye III
for AYRO, Inc. for AYRO Inc.
[email protected] [email protected]

AYRO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

    December 31,  
    2020     2019  
ASSETS            
Current assets:                
Cash   $ 36,537,097     $ 641,822  
Accounts receivable, net     765,850       71,146  
Inventory, net     1,173,254       1,118,516  
Prepaid expenses and other current assets     1,608,762       164,399  
Total current assets     40,084,963       1,995,883  
                 
Property and equipment, net     611,312       489,366  
Intangible assets, net     143,845       244,125  
Operating lease – right-of-use asset     1,098,819       –  
Deposits and other assets     22,491       48,756  
Total assets   $ 41,961,430     $ 2,778,130  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities:                
Accounts payable   $ 767,205     $ 772,077  
Accrued expenses     665,068       612,136  
Contract liability     24,000       –  
Current portion long-term debt, net     7,548       1,006,947  
Current portion lease obligation – operating lease     123,139       –  
Total current liabilities     1,586,960       2,391,160  
                 
Long-term debt, net     14,060       318,027  
Lease obligation – operating lease, net of current portion     1,002,794       –  
Total liabilities     2,603,814       2,709,187  
                 
Commitments and contingencies                
                 
Stockholders’ equity:                
Preferred Stock, (authorized – 20,000,000 shares)     –       –  
Convertible Preferred Stock Series H, ($0.0001 par value; authorized – 8,500 shares; issued and outstanding – 8 and zero shares, respectively)     –       –  
Convertible Preferred Stock Series H-3, ($.0001 par value; authorized – 8,461 shares; issued and outstanding – 1,234 and zero shares, respectively)     –       –  
Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 50 and zero shares, respectively)     –       –  
Convertible Seed Preferred Stock, ($1.00 par value; authorized – zero shares; issued and outstanding – zero and 7,360,985 shares, respectively)     –       9,025,245  
Common Stock, ($0.0001 par value; authorized – 100,000,000 shares; issued and outstanding – 27,088,584 and 3,948,078 shares, respectively)     2,709       395  
Additional paid-in capital     64,509,724       5,001,947  
Accumulated deficit     (25,154,817 )     (13,958,644 )
Total stockholders’ equity     39,357,616       68,943  
Total liabilities and stockholders’ equity   $ 41,961,430     $ 2,778,130  

AYRO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    Years Ended December 31,  
    2020     2019  
Revenue   $ 1,604,069     $ 890,152  
Cost of goods sold     1,770,552       691,843  
Gross (loss)/profit     (166,483 )     198,309  
                 
Operating expenses:                
Research and development     1,920,548       714,281  
Sales and marketing     1,415,282       1,300,120  
General and administrative     6,603,935       6,678,310  
Total operating expenses     9,939,765       8,692,711  
                 
Loss from operations     (10,106,248 )     (8,494,402 )
                 
Other (expense) income:                
Other income     236,923       2,188  
Interest expense     (327,196 )     (172,479 )
Loss on extinguishment of debt     (566,925 )     –  
Other (expense) income, net     (657,198 )     (170,291 )
                 
Net loss   $ (10,763,446 )   $ (8,664,693 )
                 
Deemed dividend on modification of Series H-5 warrants     (432,727 )     –  
Net loss Attributable to Common Stockholders   $ (11,196,173 )   $ (8,664,693 )
                 
Net loss per share, basic and diluted   $ (0.73 )   $ (2.95 )
                 
Basic and diluted weighted average Common Stock outstanding     15,336,617       2,940,975  

AYRO, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

    Years Ended December 31,  
    2020     2019  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss   $ (10,763,446 )   $ (8,664,693 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     447,283       722,566  
Stock-based compensation     1,827,008       3,372,726  
Amortization of debt discount     236,398       152,243  
Loss on extinguishment of debt     566,925       –  
Amortization of right-of-use asset     111,861       –  
Provision for bad debt expense     37,745       29,099  
Debt Forgiveness (PPP loan)     (218,000 )     –  
Change in operating assets and liabilities:                
Accounts receivable     (732,449 )     159,986  
Inventories     (4,967 )     532,089  
Prepaid expenses and other current assets     (1,444,363 )     4,656  
Deposits     26,265       (6,917 )
Accounts payable     (59,489 )     (715,267 )
Accrued expenses     10,631       319,225  
Contract liability     24,000       (9,999 )
Lease obligations – operating leases     (84,747 )     –  
Net cash used in operating activities     (10,019,344 )     (4,104,286 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchase of property and equipment     (504,332 )     (469,834 )
Disposal of property and equipment     –       90,747  
Purchase of intangible assets     (14,388 )     (35,559 )
Disposal of intangible assets     –       40,294  
Proceeds from merger with ABC Merger Sub, Inc.     3,060,740       –  
Net cash provided by (used in) investing activities     2,542,020       (374,352 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from issuance debt     1,318,000       2,675,000  
Repayments of debt     (1,744,676 )     (116,392 )
Proceeds from exercise of warrants     3,926,818       –  
Proceeds from exercise of stock options     16,669       –  
Proceeds from issuance of Common Stock, net of fees and expenses     39,855,788       4,234  
Proceeds from issuance of Preferred Stock     –       2,518,375  
Net cash provided by financing activities     43,372,599       5,081,217  
                 
Net change in cash     35,895,275       602,579  
                 
Cash, beginning of period     641,822       39,243  
                 
Cash, end of period   $ 36,537,097     $ 641,822  
                 
Supplemental disclosure of cash and non-cash transactions:                
Cash paid for interest   $ 102,911     $ 32,786  
Conversion of Notes Payable to Preferred Stock   $ –     $ 1,136,363  
Conversion of Accounts Payable to Preferred Stock   $ –     $ 1,100,000  
Conversion of Accounts Payable to Notes Payable             137,729  
Discount on Debt from issuance of Common Stock   $ –     $ 493,553  
Interest forgiven on PPP loan   $ 1,363     $ –  
Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets   $ 1,210,680     $ –  
Conversion of debt to Common Stock   $ 1,000,000     $ –  
Conversion of Preferred Stock to Common Stock   $ 9,025,245     $ –  
Cashless exercise of 77,000 H-5 Warrants   $ 192,500     $ –  
Discount on debt with related party   $ 462,013     $ –  
Deemed divided on modification of Series H-5 warrants   $ 432,727     $ –  
Restricted Stock for service, vested not issued   $ 42,300     $ –  
Offering cost included in accounts payable, not paid   $ 54,617     $ –  


Non-GAAP Financial Measures

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance, and we believe it may be used by certain investors as a measure of our operating performance. Adjusted EBITDA is defined as income (loss) from operations before interest income and expense, income taxes, depreciation, amortization of intangible assets, amortization of discount on debt, impairment of long-lived assets, stock-based compensation expense and certain non-recurring expenses.

Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.

Adjusted EBITDA may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider Adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.

Below is a reconciliation of Adjusted EBITDA to net loss to common stockholders for the 12 months ended December 31, 2020 and 2019:

    Years Ended December 31,  
    2020     2019  
Net loss to common stockholders   $ (10,763,446 )   $ (8,664,693 )
Depreciation and amortization     447,283       722,566  
Stock-based compensation expense     1,827,008       3,372,726  
Amortization of discount on debt     236,398       152,243  
Interest expense     90,798       (16,096 )
Loss on extinguishment of debt     566,925       —  
Gain on debt forgiveness (PPP loan)     (219,363 )     —  
Adjusted EBITDA   $ (7,814,397 )   $ (4,433,254 )



Posted on

Verde Delivers 97% Gross Profit Growth With 62% Gross Margin for 2020, and First Full Year Profit

Verde Delivers 97% Gross Profit Growth With 62% Gross Margin for 2020, and First Full Year Profit

(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in 2020: C$1.00 = R$3.84)

BELO HORIZONTE, Brazil–(BUSINESS WIRE)–Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the fourth quarter (“Q4 2020”) and full year ended December 31, 2020 (“FY 2020”).

Q4 2020 Financials

  • Sales increased by 76% with 56,585 tonnes sold, compared to 32,221 tonnes in the fourth quarter of 2019 (“Q4 2019”).
  • Gross margin increased to 59% in Q4 2020, compared to 36% in Q4 2019.
  • The Company recognised revenue of $2,209,000, an increase of 48% compared to $1,491,000 in Q4 2019 despite a 14% decline in the price of potash delivered to Brazil.
  • In Brazilian Real (“R$”), revenue increased by 92%, to R$8,489,000 compared to R$4,429,000 in Q4 2019.
  • The Company recorded a net loss of $192,000, compared to a net loss of $11,000 in Q4 2019.
  • Cash held by the Company increased by 236%, to a total of $2,237,000, compared to $666,000 in Q4 2019.

FY 2020 Financials

  • Sales increased by 103% with 243,707 tonnes sold, compared to 119,809 tonnes in the year ended December 31,2019 (“FY 2019”).
  • Gross margin increased to 62% in FY 2020, compared to 48% in FY 2019.
  • The Company recorded a gross profit of $5,652,000, compared to a $2,863,000 gross profit in FY 2019, an increase of 97%.
  • Revenue increased by 52%, with a total of $9,167,000, compared to $6,029,000 in 2019, despite a 27% decline in the price of potash delivered to Brazil.
  • In R$, revenue increased by 97%, to R$35,232,000, compared to R$17,913,000 in FY 2019.
  • Revenue per tonne was $38, compared to $50 in FY 2019. The Product price is based on the current US Dollar (“US$”) Potassium Chloride price. Therefore, the reduction of the average revenue per tonne was mainly due to the decline of the Potassium Chloride CFR (Brazil) price.
  • Production costs were $14, compared to $26 in FY 2019. The production cost reduction of 45% was due to enhanced production efficiency and the devaluation of the Brazilian Real by 29% against the Canadian Dollar.
  • The Company recorded an operating profit of $1,126,000 and net profit of $550,000 after taxes, compared to an operating loss of $784,000 and net loss of $1,107,000 after taxes in FY 2019. 2020 was therefore the first year that the Company recorded a net profit.

Subsequent Events

  • In February 2021, the Company has been certified as a Great Place to Work® (“GPTW“). The GPTW acknowledgment is an annual certification granted to companies that have most of its employees with a positive perception of its work environment.
  • In March 2021, 1,385,057 warrants issued pursuant to the March 2019 private placement were exercised generating $1,385,057 proceeds for the Company.

“Thanks to Verde’s team, we achieved both our sales and revenue targets for 2020. This continues our trend of strong operating and financial performance, as aligned with our strategic plan and financial objectives, as we continue to pursue development and growth opportunities in our target markets,” said Cristiano Veloso, Verde’s Founder, President, CEO and Chairman.

“We are very proud of our employees’ hard work during the year of 2020 for their dedication and professionalism during these challenging times. The Company remains committed to operating safely and abiding by the most stringent COVID-19 health and safety protocols so that our operations can continue to perform well despite all the challenges,” Mr Veloso concluded.

2021 Guidance

As stated in the press release disclosed on November 15, 2020, the Company’s target for 2021 is to achieve R$50 million revenue in 2021. Product sales target for full year 2021 is 350,000 tonnes, which represents 44% growth, compared to FY 2020 sales.

Pre-Feasibility Study:

Verde’s new product BAKS® will potentially enable the Company to increase its share of the Brazilian potash and sulfur markets, with further upside from other nutrients.​

As stated in the press release filed on SEDAR on March 01, 2021, a new Pre-Feasibility Study (“PFS”) will be elaborated by the Company in 2021. It is expected to be finished by the end of the year.

The new PSF has the objective of correctly assessing sulfur’s potential market in Brazil and the opportunities that it opens up, as well as updating the information disclosed in the NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project filed by the Company on SEDAR in 2017, which was based on the following assumptions:

  • Potassium Chloride (“KCl”) price of US$250 CIF Brazil as reference for the product pricing, versus a current average of US$312 price (Acerto Limited Report).
  • US$-R$ exchange rate of US$1.00 = R$3.28, versus a current rate of US$1.00 = R$5.771.

Verde’s Key Objectives for 2021:

  • Achieving 10% of the Company’s total sales as BAKS®.
  • Launching a new technology in the second quarter of 2021.
  • Getting ISO 9001 and ISO 14001 certified.
  • Obtaining the Mining Concession for 2.5M tonnes per year (“tpy”) for Mine Pit 2, a milestone in our path to achieving the target of 25M tonnes annual production, which represents a NPV per share of $49.78, based on the previous SEDAR filed Pre-Feasibility Study2 considering a KCl price of US$250, instead of US$312 currently negotiated.
  • Initiating the construction of Plant 2, with the completion of the necessary infrastructure for its development, such as the plant’s power grid connection, access routes improvement and preliminary civil construction.
______________________

1 As of March 29, 2021.

2 Based on $2.607 billion NPV after tax divided by 50,364,858 shares outstanding as of December 31, 2020. Estimated Net Present Value after tax of US$1.99 billion, with 8% discount rate and Internal Rate of Return of 287% (see NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, MG, Brazil, page 207). Currency exchange: US$1.00 = C$1.26.

Selected Annual Financial Information

The table below summarizes Q4 and FY 2020 financial results compared to Q4 and FY 2019.

$’000

Q4 2020

Q4 2019

FY 2020

FY 2019

Tonnes sold ‘000

57

32

244

120

Revenue per tonne sold $

39

47

38

50

Production cost per tonne sold $

(16)

(30)

(14)

(26)

Gross Profit per tonne sold $

23

17

23

24

Gross Margin

59%

36%

62%

48%

 

 

 

 

 

Revenue

2,209

1,491

9,167

6,029

Production costs

(912)

(960)

(3,515)

(3,166)

Gross Profit

1,297

531

5,652

2,863

Gross Margin

59%

36%

62%

48%

Sales and product delivery freight expenses

(673)

(202)

(2,270)

(1,303)

General and administrative expenses

(588)

(381)

(1,791)

(1,535)

Operating Profit/(Loss) before non-cash events

36

(52)

1,591

25

Share Based and Bonus Payments / (Non-Cash Event) *

(18)

113

(425)

(787)

Depreciation and Amortisation *

(4)

(2)

(23)

(22)

Loss on disposal of plant and equipment *

–

–

(17)

–

Operating Profit/(Loss) after non-cash events

14

59

1,126

(784)

Corporation tax**

(79)

(41)

(330)

(186)

Interest Income/Expense

(127)

(29)

(246)

(137)

Net Profit / (Loss)

(192)

(11)

550

(1,107)

* – Included in General and Administrative expenses in financial statements

** – The Company companies in Brazil are currently under “presumed profit” taxation method, which is the most efficient method at this time. Under “presumed profit” method, it is not possible to utilise prior period losses to reduce corporation tax. When the Company switches to “real profit” method, these losses can be utilised.

Q4 and FY 2020 compared with Q4 and FY 2019

The Company generated a net loss for Q4 2020 of $192,000, an increase of $181,000 compared to Q4 2019. The loss per share was $0.003, compared to zero for Q4 2019.

For FY 2020, the Company reported a net profit of $550,000 compared to a net loss of $1,107,000, an increase of $1,657,000 for the year. The increase was due to the continued growth of the Company. 2020 was the first year that the Company recorded a net profit.

Product Sales

In Q4 2020, the Company sold 56,585 tonnes, an increase of 76% in comparison to Q4 2019.

For FY 2020, the Company sold 243,707 an increase of 103% in comparison to FY 2019 as the Company’s product continues to grow in the market.

Revenue

Revenue from sales for Q4 2020 was $2,209,000 from the sale of 56,585 tonnes of the Product, at $39 per tonne sold. Average revenue per tonne was lower than Q4 2019 ($46 per tonne sold). The Product price is based on the current US$ Potassium Chloride price. Therefore, the reduction of the average revenue per tonne was mainly due to the decline of the Potassium Chloride CFR (Brazil) price, from US$290 per tonne in Q4 2019 to US$250 per tonne in Q4 2020 (Acerto Limited Report).

For FY 2020, total Revenue from sales was $9,167,000 an increase of 52% compared to FY 2019.

Production costs

Production costs include all costs directly from mining, processing, logistics from the mine to the factory and supply chain salaries, which are paid in R$. Cost per tonne for the quarter was $16 compared to $30 for the same period in 2019. The reduction of 46% was due to cost efficiency enhancement of 17% and as a result of devaluation of the R$ by 29% against the Canadian Dollar in Q4 2020 compared to Q4 2019.

For FY 2020, production costs per tonne were $14, compared to $26 in FY 2019, a reduction of 45%. This was due to cost efficiency improvements and the devaluation of the Brazilian Real against the Canadian Dollar.

Sales Expenses

CAD $’000

Q4 2020

Q4 2019

FY 2020

FY 2019

Sales and marketing expenses

(195)

(57)

(1,137)

(932)

Product delivery freight expenses

(478)

(145)

(1,133)

(371)

Total

(673)

(202)

(2,270)

(1,303)

Sales and marketing expenses

Sales and marketing expenses include sales and marketing salaries, the promotion of the Product such as fees paid to sales agents, marketing events, car rentals, travel within Brazil, hotel expenses and Customer Relationship Management (CRM) Software licenses. Expenses increased by $139,000 in Q4 2020 compared to Q4 2019 mainly due to additional sales and marketing staff to support the Company growth from an average of 13 employees in 2019 to an average of 32 employees in 2020, along with increased commissions paid to consultants.

Product delivery freight expenses

Product delivery freight expenses were $333,000 higher in Q4 2020 compared to the same quarter last year.

For FY 2020, the costs have increased by $762,000 compared to FY 2019 as the Company has increased significantly the volume sold as CIF (Cost Insurance and Freight), from 2% of total sales in 2019 to 13% in 2020.

General and Administrative Expenses

CAD $’000

Q4 2020

Q4 2019

FY 2020

FY 2019

General administrative expenses

(494)

(227)

(1,149)

(901)

Legal, professional, consultancy and audit costs

(75)

(91)

(520)

(496)

IT/Software expenses

(23)

(33)

(98)

(79)

Taxes and licenses fees

4

(30)

(24)

(59)

Total

(588)

(381)

(1,791)

(1,535)

General administrative expenses

These costs include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of the executives and administrative staff in Brazil. The costs have increased by $266,000 in Q4 2020 compared to Q4 2019. For FY 2020, the costs have increased by $248,000 compared to FY 2019 as they include management bonuses at the year end.

Legal, professional, consultancy and audit costs

Legal and professional fees include legal, professional, consultancy fees along with accountancy, audit and regulatory costs. Consultancy fees are consultants employed in Brazil, such as accounting services, patent process, lawyer’s fee and regulatory consultants.

The costs in Q4 2020 are comparable with Q4 2019 and for FY 2020, the figures were $24,000 higher than in FY 2019. This is due to increased consultancy support as the Company continues to grow.

IT/Software expenses

IT/Software expenses include software licenses such as Microsoft Office and enterprise resource planning (ERP). In Q4 2020 expenses were $23,000, a decrease of $10,000 compared to the same period last year. For FY 2020, expenses were $98,000 an increase of $19,000 compared to FY 2019 due to increased third party computing services provided in Brazil.

Taxes and licences

Taxes and licence expenses include general taxes, product branding and licence costs. In Q4 2020, expenses were credit $4,000 compared to $30,000 expense in Q4 2019. During Q4 2020, an amount of $15,000 was credited to licence costs for the reversal expenses which should have been capitalised in a previous quarter. For FY 2020, expenses were $24,000 compared to $59,000 in FY 2019, a decrease of $35,000. The decrease is a result of reduced general taxes.

Share Based and Bonus Payments/ (Non-Cash Event)

These costs represent the expense associated with stock options granted to employees and directors along with non-cash bonuses paid to the board to exercise share options.

The amount for Q4 2020 was $18,000, compared to a credit of $113,000 in Q4 2019. The credit in Q4 2019 related to an over calculated share based payment charge in an earlier period.

For FY 2020, the charge was $425,000 compared to $787,000 in 2019. The decrease is a result of less options vesting in the year.

Investors Newsletter

Subscribe to receive the Company’s monthly updates at: http://cloud.marketing.verde.ag/InvestorsSubscription

The last edition of the newsletter can be accessed at: http://bit.ly/InvestorsNL-February2021

Q4 and FY 2020 Results Conference Call

The Company will host a conference call on Wednesday, April 7, 2021 at 11:00 pm Eastern Time (4:00 pm Greenwich Mean Time), to discuss Q4 and FY 2020 results and provide an update. Subscribe using the link below and receive the conference details by email.

Date:

Wednesday, April 7, 2021

Time:

11:00 am Eastern Time (4:00 pm Greenwich Mean Time)

Subscription link:

http://bit.ly/VerdeAgriTechQ4-FY-2020

The Company’s full year and fourth quarter financial statements and related notes for the period ended December 31, 2020 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.

About Verde AgriTech

Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

Cautionary Language and Forward-Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. The Cautionary Language and Forward-Looking Statements can be accessed at this link.

www.investor.verde.ag | www.supergreensand.com | www.verde.ag

Cristiano Veloso, President & Chief Executive Officer

Tel: +55 (31) 3245 0205; Email: [email protected]

KEYWORDS: South America Brazil

INDUSTRY KEYWORDS: Agriculture Natural Resources Environment Mining/Minerals

MEDIA:

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Posted on

Goodfood to Report Results for the Second Quarter of Fiscal Year 2021

MONTREAL, March 31, 2021 (GLOBE NEWSWIRE) — Goodfood Market Corp. (“Goodfood” or “the Company”) (TSX: FOOD), a leading online grocery company in Canada, will release its financial results for the second quarter of Fiscal 2021 on Wednesday, April 7, 2021, before markets open. Jonathan Ferrari, Chief Executive Officer and Neil Cuggy, President and Chief Operating Officer, will hold a conference call to review the results at 8:00 a.m. (ET) on the same day.


Details of the Earnings Conference Call:

When: April 7, 2021 at 8:00 a.m. ET
Dial in number: 1-877-223-4471 or 1-647-788-4922

Conference call replay available until April 14, 2021:
1-800-585-8367 or 1-416-621-4642

To access the webcast and view the slide presentation, click on this link:
https://www.makegoodfood.ca/en/investisseurs/evenements

The conference ID is 3447425.

ABOUT GOODFOOD

Goodfood (TSX:FOOD) is a leading online grocery company in Canada, delivering fresh meal solutions and grocery items that make it easy for members from across Canada to enjoy delicious meals at home every day. Goodfood’s vision is to be in every kitchen every day by enabling members to complete their grocery shopping and meal planning in minutes. Goodfood members have access to a unique selection of online products as well as exclusive pricing made possible by its world class direct-to-consumer infrastructure and technology that eliminate food waste and costly retail overhead. The Company’s main production facility and administrative offices are based in Montreal, Québec, with five additional production facilities located in the provinces of Québec, Ontario, Alberta, and British Columbia. A seventh production facility located in the province of Ontario is currently under construction. As at February 28, 2021, Goodfood had 319,000 active subscribers. www.makegoodfood.ca

For further information:

Investors and Media  
   
Philippe Adam
Chief Financial Officer
(855) 515-5191
[email protected]

 Roslane Aouameur
Senior Director, Financial Planning and
Investor Relations
(855) 515-5191
[email protected]

FORWARD-LOOKING INFORMATION

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. This forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, and “continue”, as well as the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Forward-looking information is provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such information may not be appropriate for other purposes.

Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the following risk factors which are discussed in greater detail under “Risk Factors” in the Company’s Annual Information Form for the year ended August 31, 2020 available on SEDAR at www.sedar.com: limited operating history, negative operating cash flow, food industry, quality control and health concerns, regulatory compliance, regulation of the industry, public safety issues, product recalls, damage to Goodfood’s reputation, transportation disruptions, product liability, ownership and protection of intellectual property, evolving industry, unionization activities, reliance on management, factors which may prevent realization of growth targets, competition, availability and quality of raw materials, environmental and employee health and safety regulations, online security breaches and disruption, reliance on data centers, open source license compliance, future capital requirements, operating risk and insurance coverage, management of growth, limited number of products, conflicts of interest, litigation, catastrophic events, risks associated with payments from customers and third parties, being accused of infringing intellectual property rights of others and, climate change and environmental risks. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, and customer demand. In addition, information and expectations set forth herein are subject to and could change materially in relation to developments regarding the COVID-19 pandemic and its impact on product demand, labour mobility, supply chain continuity and other elements beyond our control. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law. 



Posted on

Lattice Announces Strategic Advisory Board

Lattice Announces Strategic Advisory Board

BELGRADE, Mont.–(BUSINESS WIRE)–
Lattice Biologics Ltd. (TSX-V: LBL) (OTCBB: LBLTF) (“Lattice” or the “Company”), an emerging leader in psilocybin research and cannabis company, today announced the formation of its Strategic Advisory Board, a group of respected business leaders that will provide guidance to Lattice’s executive team as it continues to build and strengthen the Company’s portfolio of cannabis and psilocybin related brands and products

“We have assembled a group of outstanding individuals with exceptional track records in the cannabis field to advise Management going forward,” said Guy Cook, President and CEO of Lattice Biologics. “The Strategic Advisory Board will play an important role in providing guidance and insight to Lattice as we pursue our growth strategy. Together, we look forward to building maximum shareholder value.

Inaugural members of Lattice’s Strategic Advisory Board include:

Chris Jones – Mr. Jones is the President and Founder of CANNABIS XPRESS, which is leading a roll out of quick-service cannabis retail stores across Ontario. Prior to founding CANNABIS XPRESS, Chris was the Founder and President of an early chain of several cannabis retail stores in Ontario, and had a successful exit via a public and private share sale and also served in Corporate Development for Origin House (acquired by Cresco Labs). Chris’s varied background; in entrepreneurship, finance, retail sales, fund-raising, and retail store management, provides an excellent resource for Lattice’s growth strategy. “I’m excited to be part of Lattice’s new venture, and look forward to working with Guy and the rest of the team,” said Chris Jones, President of CANNABIS XPRESS.

Ian Kerwin – Mr. Kerwin is a founder of Thrive California Industries; the sole owner of an Operating Cannabis Manufacturer and Distributor in California. He is the Chief Operating Officer and co-founder of Canadian Hemp Coalition; Industrial Hemp growers and processors. He was instrumental in the growth and cultivation of over 6000 acres of Industrial Hemp in Canada for extraction and processing.

Mr. Kerwin has a background in engineering, construction, manufacturing and design for healthcare and cannabis, he has been instrumental in raising millions for and building of many licensed operations globally.

Additionally, he has successfully executed applications, designs and construction for Health Canada regulated Psilocybin research and Dealer licenses.

“I’m excited to explore the new horizons with Lattice and to enhance the company’s vision into multi-state Cannabis and Psilocybin markets.”

Danielle O’Beirne– Danielle is a strategy and sales executive with experience in pharmaceuticals and regulated health and wellness sectors. She has successfully brought over 200 products and services to market for over a dozen companies and recently launched one of the most successful Cannabis 2.0 portfolios across Canada. Previously, Danielle spent several years at Shoppers Drug Mart, playing a key role on the cannabis and health and wellness strategy team. She also gained pharmaceutical marketing experience from her time at GSK where she supported several blockbuster drugs.

“I look forward to supporting the commercialization of Lattices portfolio of cannabis and psilocybin brands and products.”

About Lattice Biologics Ltd.:

Lattice Biologics is traded on the TSX-V under the symbol: LBL.

Lattice is focused on the research and commercialization of psychedelic products in combination with its stem cell based regenerative compounds to create new and patentable technologies and medicines that improve health and alleviate suffering. Lattice Biologics maintains its headquarters, laboratory and manufacturing facilities in Belgrade, Montana.

Lattice Biologics is discontinuing its Biologics business which develops and manufactures biologic products to domestic and international markets. The products are used in a variety of surgical applications.

Lattice Biologics maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement on Forward-Looking Information:

Certain information contained in this news release constitutes “forward-looking statements” within the meaning of the ‘safe harbour’ provisions of Canadian securities laws. All statements herein, other than statements of historical fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “planned”, “potential”, “future”, “expected”, “could”, “possible”, “goal”, “intends”, “will” or similar expressions. Forward-looking statements in this news release include, without limitation: information pertaining to the Company’s strategy, plans, or future financial performance, such as statements with respect to the Transaction, and other statements that express management’s expectations or estimates of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lattice to be materially different from those expressed or implied by such forward-looking statements.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management as of the date such statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions that could prove to be incorrect, include, but are not limited to: that market prices will be consistent with expectations, the continued availability of capital and financing, and that general economic, market and business conditions will be consistent with expectations. The forward-looking statements are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

United States Advisory: The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the U.S. Securities Act) unless an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.

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Media Contact:

Guy Cook, CEO

Lattice Biologics Ltd.

(TSX-V: LBL) (OTCBB: LBLTF)

512 E. Madison Ave. Suite#A1

Belgrade, MT 59714

480-563-0800 Office

[email protected]

www.LatticeBiologics.com

KEYWORDS: United States North America Canada Montana

INDUSTRY KEYWORDS: Retail Health Tobacco Research Pharmaceutical Science

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