Market Newsdesk

TORONTO, May 04, 2021 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) (“RWB” or the “Company”) previously announced that it did not file its audit in advance of the April 30, 2021 deadline. The Company anticipates filing its 2020 audited financial statements on or before May 31, 2021. As a result of today’s announcement, RWB is providing certain 2020 and subsequent financial results:

Certain highlights for 2020 and subsequent to the year end:

• System wide product sales¹ for the Company, which excludes RWB Michigan, RWB Florida and RWB Illinois, in the fourth quarter of 2020 were approximately CDN $26.5 million, an increase of 218% over the third quarter and the first full quarter post-closing of the Platinum Vape (“PV”) acquisition;
• RWB closed its acquisition of Acreage Florida, Inc. which included an approximate 114,000 SF facility for cultivation and 8 leased stores. RWB Florida is licensed to operate medical marijuana dispensaries (MMTCs), a processing facility, and a cultivation facility;
• RWB closed on the acquisition of PV, which is licensed in the State of California and has products available in Michigan and Oklahoma with agreements in place to expand to Arizona;
• RWB closed on the acquisition of Mid-American Growers, owners of 3.6 million square foot glass greenhouse in the State of Illinois. The Company has since entered into a definitive agreement to purchase one of only 21 cannabis licenses and operations in Illinois, for consideration of approximately US$45 million;
• RWB has funded US$75 million to PharmaCo, a Michigan based licensed operator that has acquired 18 provisioning centers (dispensaries) and multiple cultivation centers. PharmaCo sales in 2020 were approximately CDN $70 million with 8 stores operating as of the end of 2020;
• RWB has submitted its applications to regulators in the state of Michigan to complete the acquisition of all the assets of PharmaCo, the closing of which is fully funded;
• The Company has raised in excess of US$110 million, in both debt and equity, between January 1, 2020 and April 30, 2021;
• The Company has completed, or has definitive agreements for, the acquisition of THC licensed entities in Michigan, Illinois, Florida, California, and Massachusetts;  
• Total consideration for completed and pending mergers and acquisitions exceeds US$250 million;
• Once all acquisitions are closed, RWB, and RWB brands will be available in 6 of the top 10 states in the US, measured by cannabis revenue, with sales in 2020 exceeding $8.8B.

Management Commentary

“Despite our frustration with the delay in releasing our results for 2020, we are thrilled with what we have accomplished over the year, and the first few months of 2021. I see a company that has grown from being an arm’s-length investor in Michigan, to a footprint that will see RWB deploy its house of brand strategy in six of the most coveted cannabis markets in the United States,” said Brad Rogers, Chief Executive Officer and Chairman of RWB. “When I reflect on the foundation we’ve set for this company to build on, including our brand strategy, I see a unique approach to the market. In the last 16 months or so we went public, raised over a hundred million dollars, entered into agreements for over a quarter billion dollars of acquisitions, and closed over half of those already. We have a strategy to rapidly build scale in two of the best limited-license markets in the US, and our previous investments in Michigan have already achieved this. In our brand portfolio, we see PV expanding quickly and decisively, while High Times has sold out every time its released in Michigan.”

Mr. Rogers concluded: “I am incredibly proud of the work our team has accomplished in 2020 and subsequently. Together, we will continue to stay focused on going deeper in our core states, the judicious deployment of capital, and growing our business.”

¹System wide product sales is a financial measure that is not determined or defined in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IFRS”). System-wide product sales represents the sum of direct sales and indirect sales of PV branded products as well as hemp and CBD sales. It does not include PharmaCo, RWB Illinois or RWB Florida results.

About Red White & Bloom Brands Inc.
The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets, including Michigan, Illinois, Massachusetts, Arizona and California with respect to cannabis, and the US and internationally for hemp-based CBD products.

For more information about Red White & Bloom Brands Inc., please contact:

Tyler Troup, Managing Director

Circadian Group IR
[email protected]

Visit us on the web: www.RedWhiteBloom.com

Follow us on social media:

Twitter: @rwbbrands
Facebook: @redwhitebloombrands
Instagram: @redwhitebloombrands

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

FORWARD LOOKING INFORMATION

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations.  When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. There is no assurance that these transactions will yield results in line with management expectations. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, market size, and the volatility of the Company’s common share price and volume.  Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.  Investors are cautioned against attributing undue certainty to forward-looking statements.

There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by forward-looking statements and information.  Such factors include, among others, risks related to the Company’s proposed business, such as failure of the business strategy and government regulation; risks related to the Company’s operations, such as additional financing requirements and access to capital, reliance on key and qualified personnel, insurance, competition, intellectual property and reliable supply chains; risks related to the Company and its business generally; risks related to regulatory approvals. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized.  It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. While the Company may elect to, it does not undertake to update this information at any particular time.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

FREMONT, Calif., May 04, 2021 (GLOBE NEWSWIRE) — Corsair Gaming, Inc. (NASDAQ:CRSR) (“Corsair”), a leading global provider and innovator of high-performance gear for gamers and content creators, today announced financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

• Net revenue was $529.4 million, an increase of 71.6% year-over-year. Gamer and creator peripherals segment net revenue was $175.9 million, an increase of 131.9% year-over-year. Gaming components and systems segment net revenue was $353.5 million, an increase of 51.9% year-over-year.
• Gross profit was $160.3 million, an increase of 103.9% year-over-year, with gross margin of 30.3%, an improvement of 480 basis points year-over-year. Gamer and creator peripherals segment gross profit was $68.9 million, an increase of 211.1% year-over-year. Gaming components and systems segment gross profit was $91.5 million, an increase of 61.9% year-over-year.
• Operating income was $67.3 million, an increase of 404.5% year-over-year.
• Adjusted operating income was $80.4 million, an increase of 221.4% year-over-year.
• Net income was $46.7 million, or $0.47 per diluted share, compared to net income of $1.2 million in the same period last year, or $0.01 per diluted share.
• Adjusted net income was $58.2 million, or $0.58 per diluted share, an increase of 420.4% year-over-year compared to adjusted net income of $11.2 million in the same period last year, or $0.13 per diluted share.
• Adjusted EBITDA was $80.4 million, an increase of 196.6% year-over-year, with adjusted EBITDA margin of 15.2%, an improvement of 640 basis points year-over-year.
• As of March 31, 2021, we had cash and restricted cash of $125.6 million, $48.1 million capacity under our revolving credit facility and total long-term debt of $294.3 million.
• Cash flows from operations was $27.8 million, which increased from $2.0 million in the same period last year.

Definitions of the non-GAAP financial measures used in this press release and reconciliations of such measures to their nearest GAAP equivalents are included below under the heading “Use and Reconciliation of Non-GAAP Financial Measures.”

“We are thrilled with our first quarter financial performance and strategic progress. End demand remained strong for our products and our new products such as the K65 mini RGB keyboard and Elgato’s new accessories debuted well. We introduced 29 new products in the first quarter and we expect this blistering pace of new product introduction to continue throughout the year with several brand new products still to come. Supplies of key components remain tight but we have been able to support our plans and will continue to work on this issue for the rest of the year. As a result of our stronger-than-expected first quarter performance and our current views for the rest of the year, we raised our 2021 annual guidance,” stated Andy Paul, Chief Executive Officer of Corsair.

“We were able to convert our strong financial performance in the first quarter into an opportunity to further strengthen our balance sheet. We reduced debt by an additional $28 million with outstanding principal now at $299 million and net debt at $177.3 million. We did this while growing quickly and leaving sufficient resources to help us grow further. We continue to evaluate growth opportunities while still expecting to further reduce our existing debt in 2021,” said Michael G. Potter, Chief Financial Officer of Corsair.

Financial Outlook

The Company is updating guidance for the full-year 2021 as indicated below:

• Raising net revenue to be in the range of $1.9 billion to $2.1 billion from $1.8 billion to $1.95 billion.
• Raising adjusted operating income to be in the range of $235 million to $255 million from $205 million to $220 million.
• Raising adjusted EBITDA to be in the range of $245 million to $265 million from $215 million to $230 million.

Certain non-GAAP measures included in our financial outlook were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis. We are unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. Such items may include stock-based compensation charges, public offering related charges, depreciation and amortization, severance, and other items. The unavailable information could have a significant impact on our GAAP financial results.

The foregoing forward-looking statements reflect our expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. We do not intend to update our financial outlook until our next quarterly results announcement.

Please see “Use and Reconciliation of Non-GAAP Financial Measures” below for a discussion on how we calculate the non-GAAP measures presented herein and a reconciliation to the most directly comparable GAAP measure.

Recent Developments

• On April 13, 2021, Corsair announced the launch of its Corsair One a200 gaming PC powered by the new AMD Ryzen™ 5000-series CPU and the Corsair One i200 powered by a new 11^th Gen Intel® Core™ CPU. These systems come equipped with NVIDIA® GeForce RTX™ 3080 and raise the bar for gaming and streaming-ready compact PCs.
• On April 8, 2021, Corsair under its Elgato brand announced the release of Cam Link Pro, a powerful new PCIe capture card and video mixer that boasts four HDMI inputs to stream or record 4K or 1080p60 Full HD video from DSLR cameras, laptops, tablets, and any other devices that output a clean HDMI signal. From live broadcasting and editing to video conferencing and remote teaching, Cam Link Pro makes multicam production easy for content creators and professionals who engage with audiences online.
• On April 8, 2021, Corsair launched three new products in its CHAMPION SERIES range of competition-grade peripherals, built for and tested by top eSports professionals. Headlining the new launches is the streamlined K70 RGB TKL Mechanical Gaming Keyboard, with 8,000Hz hyper-polling driven by CORSAIR AXON hyper-processing technology in a compact, tenkeyless design, enabling users to take pro performance to the next event. Two new CORSAIR gaming mice also enter the CHAMPION SERIES lineup: the SABRE RGB PRO and SABRE PRO. The first CORSAIR mice to also utilize AXON hyper-processing technology and 8,000Hz polling, the SABRE RGB PRO and SABRE PRO deliver lightning-fast inputs, along with a comfortable ergonomic shape and ultra-light weight for superior agility and control.
• On March 31, 2021, Corsair launched a new pair of RGB gaming keyboards: the CORSAIR K55 RGB PRO and K55 RGB PRO XT. These latest entries in the K55 family offer dynamic RGB backlighting, and include six dedicated macro keys with Elgato Stream Deck software integration for one-button actions and shortcuts. The K55 RGB PRO features five zones of RGB lighting with six preset onboard lighting effects, while the K55 RGB PRO XT kicks things up a notch with per-key RGB backlighting, offering ten onboard lighting effects and near-limitless customization through CORSAIR iCUE software.
• On March 16, 2021, Corsair launched a new series of 11th-Gen Intel®-powered VENGEANCE i7200 gaming PCs. Now equipped with a cutting-edge 11th Gen Intel® Core™ CPU, these powerful systems deliver blazing-fast frequencies and the processing power to push the limits of gaming, streaming, and more. Available in configurations with up to an Intel Core™ i9 11900K CPU, the new CORSAIR VENGEANCE i7200 Series can power through complex content creation, extreme gaming, and demanding applications with ease. Fantastic 3D rendering and content creation performance is driven by the incredible power of NVIDIA® GeForce RTX™ 3000-Series graphics, up to a GeForce RTX 3090, for amazingly lifelike visuals. NVIDIA DLSS 2.0 AI technology boosts frame rates, producing silky-smooth image quality even when playing at maximum detail at 4K settings. VENGEANCE i7200 systems are completed with a full array of award-winning CORSAIR components in an airflow-optimized CORSAIR 4000D AIRFLOW mid-tower case.
• On March 16, 2021, Corsair launched its first 60% mechanical gaming keyboard, the CORSAIR K65 RGB MINI, alongside a full range of CORSAIR PBT DOUBLE-SHOT PRO Keycap Mod Kits to unlock a huge new range of keyboard personalization. Packing massive features into its impressively small size, the K65 RGB MINI boasts 100% CHERRY MX mechanical keyswitches, dynamic per-key RGB backlighting, CORSAIR AXON Hyper-Processing Technology with 8,000Hz polling, and a detachable USB Type-C cable. Launching alongside the K65 RGB MINI, the new CORSAIR PBT DOUBLE-SHOT PRO Keycap Mod Kits offer five additional colors with which to customize the K65 RGB MINI or compatible keyboard. Together, K65 RGB MINI and the new PBT DOUBLE-SHOT PRO Keycaps offer a powerful, personal, and portable CORSAIR keyboard experience in the smallest form-factor yet.
• On March 4, 2021, Corsair under its Elgato brand launched two new product lines to help creators personalize their home studios and streaming setups – Elgato Light Strip and Elgato Wave Panels. Elgato Light Strip offers convenient app-controlled ambient lighting with RGBWW LEDs capable of displaying 16 million colors, with a wide brightness and color temperature range to create the perfect look for any setup. Elgato Wave Panels feature two-layer foam construction to reduce room echo and reverberation, easily mounting to the wall in modular hexagonal panels. With the release of both Elgato Light Strip and Wave Panels, content creators now have more options available to customize and set their studio apart from the rest.
• On February 25, 2021, Corsair launched a new ultra-light gaming mouse, the KATAR PRO XT. At a weight of just 73g and equipped with a drag-reducing paracord cable, the KATAR PRO XT is extremely agile and well-suited for fast-paced FPS and MOBA gameplay. The KATAR PRO XT is also the first CORSAIR mouse to implement new CORSAIR QUICKSTRIKE buttons, pre-tensioned to reduce button travel to a minimum, meaning every click from the KATAR PRO XT registers faster than ever.
• On February 16, 2021, Corsair announced the acquisition of Visuals by Impulse (VBI), a premium design platform for creators, which will join CORSAIR under its existing Elgato brand. Founded in 2015, VBI provides professional design for creators on Twitch, YouTube and Facebook Gaming. Streamers around the world use VBI overlays, alerts, and widgets to customize their broadcasts and grow their fanbases. VBI is a trusted partner for over 200,000 creators — and the industry’s go-to resource for free graphics, premium animations, and online streaming tools. Thanks to VBI technology and design, anyone can create stylish, personalized live-streaming content.

Conference Call and Webcast Information

We will host a conference call to discuss the first quarter 2021 financial results on May 4, 2021, at 5:30 a.m. PT. The conference call can be accessed live over the phone by dialing 1-877-407-0784, or for international callers 1-201-689-8560. A replay will be available from 8:30 a.m. PT on May 4, 2021 through May 11, 2021, by dialing 1-844-512-2921, or for international callers 1-412-317-6671. The replay passcode is 13718830.

The call will also be webcast live from our investor relations website at https://ir.corsair.com. Following completion of the call, a recorded replay of the webcast will be available on the website.

About Corsair Gaming, Inc.

Corsair Gaming, Inc. (NASDAQ:CRSR) is a leading global developer and manufacturer of high-performance gear and technology for gamers, content creators, and PC enthusiasts. From award-winning PC components and peripherals to premium streaming equipment and smart ambient lighting, Corsair delivers a full ecosystem of products that work together to enable everyone, from casual gamers to committed professionals, to perform at their very best.

Corsair also sells gear under our Elgato brand, which provides premium studio equipment and accessories for content creators, SCUF Gaming brand, which builds custom-designed controllers for competitive gamers, and ORIGIN PC brand, a builder of custom gaming and workstation desktop PCs and laptops.

Forward Looking Statements

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, our estimated full year 2021 net revenue, adjusted operating income and adjusted EBITDA; our belief that our pace of new product introduction will continue throughout the year; whether we will be successful in managing inventory; whether we will be able to grow further; and whether we will continue to reduce our existing debt. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: our ability to build and maintain the strength of our brand among gaming and streaming enthusiasts and our ability to continuously develop and successfully market new gear and improvements; the introduction and success of new third-party high-performance computer hardware, particularly graphics processing units and central processing units as well as sophisticated new video games; the risk that we are not able to compete with competitors and/or that the gaming industry, including streaming and eSports, does not grow as expected or declines; the loss or inability to attract and retain key management; delays or disruptions at our or third-parties’ manufacturing and distribution facilities; currency exchange rate fluctuations or international trade disputes resulting in our gear becoming relatively more expensive to our overseas customers or resulting in an increase in our manufacturing costs; the impact of the coronavirus on our business; general economic conditions that adversely effect, among other things, consumer confidence and spending; and the other factors described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 to be filed with the Securities and Exchange Commission (SEC) on or about the date hereof and our subsequent filings with the SEC. Copies of each filing may be obtained from us or the SEC. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter ended March 31, 2021 are not necessarily indicative of our operating results for any future periods.

Use and Reconciliation of Non-GAAP Financial Measures

To supplement the financial results presented in accordance with GAAP, this earnings release presents certain non-GAAP financial information, including Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Per Share. These are important financial performance measures for us, but are not financial measures as defined by GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Per Share to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in such non-GAAP measures. Accordingly, we believe that Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Per Share provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making. We also present these non-GAAP financial performance measures because we believe investors, analysts and rating agencies consider them useful in measuring our ability to meet our debt service obligations.

Our use of these terms may vary from that of others in our industry. These non-GAAP financial measures should not be considered as an alternative to revenues, operating income, net income, cash provided by operating activities or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules.

We calculate these non-GAAP financial measures as follows:

• Adjusted operating income, non-GAAP, is determined by adding back to GAAP operating income the acquisition accounting impact related to recognizing acquired inventory at fair value, change in fair value of contingent consideration for business acquisition, stock-based compensation, intangible asset amortization, certain acquisition-related and integration-related expenses, non-deferred costs associated with the IPO, secondary offering costs, and debt modification costs.
• Adjusted net income, non-GAAP, is determined by adding back to GAAP net income the acquisition accounting impact related to recognizing acquired inventory at fair value, change in fair value of contingent consideration for business acquisition, stock-based compensation, intangible asset amortization, certain acquisition-related and integration-related expenses, non-deferred costs associated with the IPO, secondary offering costs, debt modification costs, loss on extinguishment of debt, and the related tax effects of each of these adjustments.
• Adjusted net income per diluted share, non-GAAP, is determined by dividing adjusted net income, non-GAAP by the respective weighted average shares outstanding, inclusive of the impact of other dilutive securities.
• Adjusted EBITDA is determined by adding back to GAAP net income the acquisition accounting impact related to recognizing acquired inventory at fair value, change in fair value of contingent consideration for business acquisition, stock-based compensation, certain acquisition-related and integration-related expenses, non-deferred costs associated with the IPO, secondary offering costs, debt modification costs, intangible asset amortization, depreciation and amortization, interest expense (including loss on extinguishment of debt) and tax expense.
• Adjusted EBITDA margin is determined by dividing adjusted EBITDA by net revenue for the respective periods.

We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.

Source: Corsair Gaming, Inc.

Investor Relations Contact:

Ronald van Veen
[email protected]
510-578-1407

Media Contact:

Adrian Bedggood
[email protected]
510-657-8747
+44-7989-258827

Corsair Gaming, Inc.

Condensed Combined Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

	Three Months Ended March 31,
	2021				2020
Net revenue	$	529,414			$	308,518
Cost of revenue		369,086				229,896
Gross profit		160,328				78,622
Operating expenses:
Sales, general and administrative		77,853				53,729
Product development		15,186				11,556
Total operating expenses		93,039				65,285
Operating income		67,289				13,337
Other (expense) income:
Interest expense		(4,946	)			(9,374	)
Other expense, net		(2,425	)			(63	)
Total other expense, net		(7,371	)			(9,437	)
Income before income taxes		59,918				3,900
Income tax expense		(13,195	)			(2,683	)
Net income	$	46,723			$	1,217
Net income per share:
Basic	$	0.51			$	0.01
Diluted	$	0.47			$	0.01
Weighted-average shares used to compute net income per share
Basic		91,951				84,079
Diluted		100,211				86,070

Corsair Gaming, Inc.

Segment Information

(Unaudited, in thousands, except percentages)

	Three Months Ended March 31,
	2021				2020
Net revenue:
Gamer and Creator Peripherals	$	175,912			$	75,861
Gaming Components and Systems		353,502				232,657
Total Net Revenue	$	529,414			$	308,518
Gross Margin:
Gamer and Creator Peripherals		39.1	%			29.2	%
Gaming Components and Systems		25.9	%			24.3	%
Total Gross Margin		30.3	%			25.5	%

Corsair Gaming, Inc.

Condensed Combined Consolidated Balance Sheets

(Unaudited, in thousands)

	March 31, 2021				December 31, 2020
Assets
Current assets:
Cash and restricted cash	$	125,351			$	133,338
Accounts receivable, net		304,174				293,629
Inventories		234,611				226,007
Prepaid expenses and other current assets		47,508				37,997
Total current assets		711,644				690,971
Property and equipment, net		15,320				16,475
Goodwill		314,089				312,760
Intangible assets, net		252,243				259,317
Restricted cash, noncurrent		231				230
Other assets		39,900				34,362
TOTAL ASSETS	$	1,333,427			$	1,314,115
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	272,251			$	299,636
Other liabilities and accrued expenses		227,019				205,745
Total current liabilities		499,270				505,381
Debt, net		294,254				321,393
Deferred tax liabilities		30,350				29,752
Other liabilities, noncurrent		21,846				20,199
TOTAL LIABILITIES		845,720				876,725
Stockholders’ Equity:
Common stock and additional paid-in capital		442,329				438,676
Retained earnings (accumulated deficit)		43,910				(2,813	)
Accumulated other comprehensive income		1,468				1,527
Total Stockholders’ Equity		487,707				437,390
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,333,427			$	1,314,115

Corsair Gaming, Inc.

Condensed Combined Consolidated Statements of Cash Flows

(Unaudited, in thousands)

	Three Months Ended March 31,
	2021				2020
Cash flows from operating activities:
Net income	$	46,723			$	1,217
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		3,076				1,105
Depreciation		2,436				2,158
Amortization of intangible assets		8,702				8,447
Debt issuance costs amortization		537				579
Loss on debt extinguishment		439				—
Deferred income taxes		(3,005	)			6
Other		1,316				502
Changes in operating assets and liabilities:
Accounts receivable		(13,416	)			37,432
Inventories		(13,508	)			145
Prepaid expenses and other assets		(4,419	)			6,312
Accounts payable		(26,988	)			(43,533	)
Other liabilities and accrued expenses		25,875				(12,370	)
Net cash provided by operating activities		27,768				2,000
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(1,684	)			—
Payment of deferred and contingent consideration		(4,353	)			—
Purchase of property and equipment		(2,036	)			(1,847	)
Net cash used in investing activities		(8,073	)			(1,847	)
Cash flows from financing activities:
Repayment of debt		(28,000	)			(1,194	)
Payment of other offering costs		—				(115	)
Proceeds from exercise of stock options		185				—
Net cash used in financing activities		(27,815	)			(1,309	)
Effect of exchange rate changes on cash		134				(308	)
Net decrease in cash and restricted cash		(7,986	)			(1,464	)
Cash and restricted cash at the beginning of the period		133,568				51,947
Cash and restricted cash at the end of the period	$	125,582			$	50,483

Corsair Gaming, Inc.

GAAP to Non-GAAP Reconciliations

Non-GAAP Operating Income Reconciliations

(Unaudited, in thousands, except percentages)

	Three Months Ended March 31,
	2021				2020
Operating Income – GAAP	$	67,289			$	13,337
Acquisition accounting impact related to recognizing acquired inventory at fair value		–				421
Change in fair value of contingent consideration for business acquisition		72				–
Stock-based compensation		3,076				1,105
Intangible asset amortization		8,702				8,447
Acquisition-related and integration-related costs		208				976
Non-deferred IPO and secondary offering costs		1,031				438
Debt modification costs		–				288
Adjusted Operating Income – Non-GAAP	$	80,378			$	25,012
As a % of net revenue – GAAP		12.7	%			4.3	%
As a % of net revenue – Non-GAAP		15.2	%			8.1	%

Non-GAAP Net Income and Net Income Per Share Reconciliations

(Unaudited, in thousands, except per share amounts and percentages)

	Three Months Ended March 31,
	2021				2020
Net Income – GAAP	$	46,723			$	1,217
Acquisition accounting impact related to recognizing acquired inventory at fair value		–				421
Change in fair value of contingent consideration for business acquisition		72				–
Stock-based compensation		3,076				1,105
Intangible asset amortization		8,702				8,447
Acquisition-related and integration-related costs		208				976
Non-deferred IPO and secondary offering costs		1,031				438
Debt modification costs		–				288
Loss on debt extinguishment		439				–
Non-GAAP income tax adjustment		(2,089	)			(1,715	)
Adjusted Net Income – Non-GAAP	$	58,162			$	11,177
Diluted Net income per share:
GAAP	$	0.47			$	0.01
Adjusted, Non-GAAP	$	0.58			$	0.13
Shares used to compute diluted net income per share:
GAAP		100,211				86,070
Adjusted, Non-GAAP		100,211				86,070

Corsair Gaming, Inc.

Adjusted EBITDA Reconciliations

(Unaudited, in thousands, except percentages)

	Three Months Ended March 31,
	2021				2020
Net Income – GAAP	$	46,723			$	1,217
Acquisition accounting impact related to recognizing acquired inventory at fair value		–				421
Change in fair value of contingent consideration for business acquisition		72				–
Stock-based compensation		3,076				1,105
Acquisition-related and integration-related costs		208				976
Non-deferred IPO and secondary offering costs		1,031				438
Debt modification costs		–				288
Intangible asset amortization		8,702				8,447
Depreciation		2,436				2,158
Interest expense (includes loss on debt extinguishment)		4,946				9,371
Tax expense		13,195				2,683
Adjusted EBITDA – Non-GAAP	$	80,389			$	27,104
Adjusted EBITDA margin – Non-GAAP		15.2	%			8.8	%

BOCA RATON, Fla., May 04, 2021 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCMKTS: JUSHF), a vertically integrated, multi-state cannabis operator, announced that it has closed on its previously announced acquisition of 100% of the equity of Organic Solutions of the Desert, LLC (“OSD”), an operating dispensary located in Palm Springs, California and approximately 78% of the equity of a retail license holder located in Grover Beach, California with the option to acquire the remaining equity in the future. Jushi will be implementing its best-in-class, customer focused retail approach that includes the introduction of its online reservation ordering platform and express pick-up options at the Palm Springs dispensary. The Company expects to complete the build out of the BEYOND / HELLO™ Grover Beach location in Q3 2021. The two new locations expand Jushi’s footprint beyond its first California dispensary, BEYOND / HELLO™ Santa Barbara, which opened in October 2020. Jushi also plans to add an additional California location in Culver City, which is expected to open by Q2 2022, subject to state and regulatory approvals.

“We are thrilled to close these acquisitions and build depth in California with our second and third retail locations in the state,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “Palm Springs and Grover Beach offer premier locations for our expansion as we continue to build our strategic footprint and target limited license market opportunities within the state. We look forward to introducing our BEYOND / HELLO™ retail brand and experience to the locals and visitors of Palm Springs, Grover Beach and Culver City.”

Palm Springs Dispensary
With more than 14 million tourists per year, Palm Springs is an attractive market and luxury travel destination. Currently operating and conveniently located at 4765 E Ramon Road, one of the busiest streets in the city, OSD has been the leading revenue generator in the city of Palm Springs since the inception of Palm Springs adult-use cannabis program in 2017. OSD is well positioned across from Palm Springs International Airport (over 2.5 million travelers in 2019) and has ample dedicated parking spots. The location will be open Monday through Saturday from 9:00 a.m. to 6:00 p.m. and on Sunday from 10:00 a.m. to 6:00 p.m.

Grover Beach Dispensary

Grover Beach is located between Oceano and Pismo Beach, and approximately 80 miles north of the Company’s BEYOND / HELLO™ Santa Barbara location. Grover Beach is a limited license market with a maximum of four retail licenses permitted and, therefore, offers strong barriers to entry that align with the Company’s expansion strategy. Further, it is a prime location for delivery because the cities surrounding Grover Beach currently prohibit retail cannabis dispensaries and is bolstered by an annual tourist population of approximately 2.2 million. Upon completion of the build out of the new BEYOND / HELLO™ in Q3 2021, this location will be the fourth and final retail dispensary permitted in the city.

The Palm Springs and Grover Beach locations are expected to carry a variety of high-quality cannabis brands and products, including flower, extracts, edibles, vapes, topicals, tinctures, sublinguals, and merchandise. Expertly trained staff will also be available during normal store hours to help customers identify and select the best cannabis products with the goal of meeting their various needs and desires. The licensed storefronts are LGBTQ+ friendly and offer a standing 10% discount to seniors, veterans, and active military servicepeople with identification as well as will be ADA accessible. For more information, visit jushico.com/ or BEYOND / HELLO™ on Instagram and Facebook.

About Jushi Holdings Inc.

We are a vertically integrated cannabis company led by an industry-leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis ecosystem. For more information, please visit jushico.com or our social media channels, Instagram, Facebook, Twitter, and LinkedIn.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, involve estimates, projections, plans, goals, forecasts, and assumptions that may prove to be inaccurate. As a result, actual results could differ materially from those expressed by such forward-looking statements and such statements should not be relied upon. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or may contain statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “will continue,” “will occur” or “will be achieved”.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has certain expectations and has made certain assumptions. Expectations, assumptions, and risk factors are more fully described in the Company’s Management, Discussion and Analysis for the three months ended September 30, 2020, and other filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Not for distribution to United States newswire services or for dissemination in the United States.

For further information, please contact:

Investor Relations Contact:

Michael Perlman
Executive Vice President of Investor Relations and Treasury
561-281-0247
[email protected]

Media Contact:

Ellen Mellody
MATTIO Communications
570-209-2947
[email protected]

CHICAGO, May 04, 2021 (GLOBE NEWSWIRE) — R1 RCM Inc (NASDAQ: RCM), a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers, today announced results for the three months ended March 31, 2021.

First Quarter 2021 Results:

• Revenue of $342.6 million, up $22.1 million or 6.9% compared to the same period last year
   
• GAAP net income of $25.8 million, up $7.6 million or 41.8% compared to the same period last year
   
• Adjusted EBITDA of $80.4 million, up $18.8 million or 30.5% compared to the same period last year

“Our first quarter results reflect continued strong execution by the R1 team, as well as dividends from our investments in digitization,” said Joe Flanagan, President and Chief Executive Officer of R1. “I am encouraged by the demand we see for our solutions and we remain focused on enhancing our capabilities to deliver incremental value to our customers.”

“We are pleased to report another strong quarter, with results ahead of our expectations,” added Rachel Wilson, Chief Financial Officer and Treasurer. “We look forward to maintaining the momentum generated in the first quarter as the year progresses, given the strong fundamentals of the business.”

Outlook

For 2021, R1 continues to expect to generate:

• Revenue of between $1,410 million and $1,460 million
• GAAP operating income of $135 million to $155 million
• Adjusted EBITDA of $315 million to $330 million

Conference Call and Webcast Details

R1’s management team will host a conference call today at 8:00 a.m. Eastern Time to discuss its financial results and business outlook. To participate, please dial 833-968-2190 (778-560-2796 outside the U.S. and Canada) using conference code number 8749855. A live webcast and replay of the call will be available at the Investor Relations section of the Company’s web site at ir.r1rcm.com.

Non-GAAP Financial Measures

In order to provide a more comprehensive understanding of the information used by R1’s management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain non-GAAP financial performance measures, including adjusted EBITDA and net debt. Adjusted EBITDA is defined as GAAP net income before net interest income/expense, income tax provision/benefit, depreciation and amortization expense, share-based compensation expense, strategic initiatives costs, and certain other items. Net debt is defined as debt less cash and cash equivalents, inclusive of restricted cash.

Our board of directors and management team use adjusted EBITDA as (i) one of the primary methods for planning and forecasting overall expectations and for evaluating actual results against such expectations and (ii) a performance evaluation metric in determining achievement of certain executive incentive compensation programs, as well as for incentive compensation programs for employees.

Tables 4 through 9 present a reconciliation of GAAP financial measures to non-GAAP financial measures, including adjusted EBITDA. Adjusted EBITDA should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP.

Forward Looking Statements

This press release includes information that may constitute “forward-looking statements,” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future, not past, events and often address our expected future growth, plans and performance or forecasts. These forward-looking statements are often identified by the use of words such as “anticipate,” “believe,” “designed,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “will,” or “would,” and similar expressions or variations, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about the potential impacts of the COVID-19 pandemic, our strategic initiatives, our capital plans, our costs, our ability to successfully implement new technologies, our future financial performance, and our liquidity. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. We do not undertake to update our forward-looking statements except to the extent required by applicable law. Readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements included herein are expressly qualified in their entirety by these cautionary statements. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to, the severity, magnitude and duration of the COVID-19 pandemic; responses to the pandemic by the government and healthcare providers and the direct and indirect impacts of the pandemic on our customers and personnel; the disruption of national, state and local economies as a result of the pandemic; the impact of the pandemic on our financial results, including possible lost revenue and increased expenses; and the factors discussed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2020 and any other periodic reports that the Company files with the Securities and Exchange Commission.

About R1 RCM

R1 is a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. To learn more, visit: r1rcm.com

Contact:

R1 RCM Inc.

Investor Relations:

Atif Rahim
312-324-5476
[email protected]

Media Relations:

Natalie Joslin
678-585-1206
[email protected]

Table 1
R1 RCM Inc.
Consolidated Balance Sheets
(In millions)
		(Unaudited)
		March 31,				December 31,
		2021				2020
Assets
Current assets:
Cash and cash equivalents		$	103.5			$	173.8
Accounts receivable, net of $3.8 million and $3.7 million allowance		97.6				91.3
Accounts receivable, net of $0.1 million and $0.1 million allowance – related party		31.8				30.9
Prepaid expenses and other current assets		65.7				59.4
Total current assets		298.6				355.4
Property, equipment and software, net		89.0				93.7
Operating lease right-of-use assets		59.8				57.8
Intangible assets, net		166.7				171.1
Goodwill		375.5				375.3
Non-current deferred tax assets		68.5				73.7
Non-current portion of restricted cash equivalents		0.5				1.0
Other assets		75.9				61.0
Total assets		$	1,134.5			$	1,189.0
Liabilities
Current liabilities:
Accounts payable		$	22.8			$	18.2
Current portion of customer liabilities		23.0				16.7
Current portion of customer liabilities – related party		10.6				15.3
Accrued compensation and benefits		61.2				51.9
Current portion of operating lease liabilities		11.8				12.2
Current portion of long-term debt		35.5				32.3
Other accrued expenses		56.6				59.7
Total current liabilities		221.5				206.3
Non-current portion of customer liabilities – related party		15.4				16.3
Non-current portion of operating lease liabilities		68.7				71.0
Long-term debt		510.2				519.7
Other non-current liabilities		35.1				36.3
Total liabilities		850.9				849.6
Preferred Stock		—				251.5
Stockholders’ equity:
Common stock		2.8				1.4
Additional paid-in capital		562.1				393.7
Accumulated deficit		(135.7		)		(161.5		)
Accumulated other comprehensive loss		(6.4		)		(6.5		)
Treasury stock		(139.2		)		(139.2		)
Total stockholders’ equity		283.6				87.9
Total liabilities and stockholders’ equity		$	1,134.5			$	1,189.0

Table 2
R1 RCM Inc.
Consolidated Statements of Operations (Unaudited)
(In millions, except share and per share data)
		Three Months Ended March 31,
		2021				2020
Net operating fees		$	286.1			$	280.9
Incentive fees		29.0				16.8
Other		27.5				22.8
Net services revenue		342.6				320.5
Operating expenses:
Cost of services		267.2				253.9
Selling, general and administrative		25.6				25.5
Other expenses		13.0				8.7
Total operating expenses		305.8				288.1
Income from operations		36.8				32.4
Net interest expense		3.9				3.8
Income before income tax provision		32.9				28.6
Income tax provision		7.1				10.4
Net income		$	25.8			$	18.2
Net income (loss) per common share:
Basic		$	(2.37	)		$	0.06
Diluted		$	(2.37	)		$	0.05
Weighted average shares used in calculating net income (loss) per common share:
Basic		239,290,145				114,441,043
Diluted		239,290,145				169,620,178

Basic:
Net income		$	25.8			$	18.2
Less dividends on preferred shares		(592.3		)		(5.4		)
Less income allocated to preferred shareholders		—				(6.2		)
Net income (loss) available/allocated to common shareholders – basic		$	(566.5	)		$	6.6
Diluted:
Net income		$	25.8			$	18.2
Less dividends on preferred shares		(592.3		)		(5.4		)
Less income allocated to preferred shareholders		—				(5.0		)
Net income (loss) available/allocated to common shareholders – diluted		$	(566.5	)		$	7.8

Table 3
R1 RCM Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
		Three Months Ended March 31,
		2021				2020
Operating activities
Net income		$	25.8			$	18.2
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		17.9				15.7
Amortization of debt issuance costs		0.3				0.2
Share-based compensation		12.7				4.8
Loss on disposal and right-of-use asset write-downs		0.6				—
Provision for credit losses		0.1				0.8
Deferred income taxes		4.9				8.9
Non-cash lease expense		2.9				2.9
Change in value of contingent consideration		0.5				—
Changes in operating assets and liabilities:
Accounts receivable and related party accounts receivable		(7.3		)		(12.5		)
Prepaid expenses and other assets		(19.4		)		(5.2		)
Accounts payable		5.2				2.8
Accrued compensation and benefits		9.4				(46.6		)
Lease liabilities		(4.1		)		(2.6		)
Other liabilities		(4.2		)		16.0
Customer liabilities and customer liabilities – related party		0.7				(2.8		)
Net cash provided by operating activities		46.0				0.6
Investing activities
Purchases of property, equipment, and software		(9.6		)		(13.3		)
Net cash used in investing activities		(9.6		)		(13.3		)
Financing activities
Borrowings on revolver		—				50.0
Repayment of senior secured debt		(6.5		)		(4.1		)
Repayments on revolver		—				(20.0		)
Inducement of preferred stock conversion		(105.0		)		—
Exercise of vested stock options		4.4				3.1
Finance lease payments		—				(0.6		)
Net cash (used in) provided by financing activities		(107.1		)		28.4
Effect of exchange rate changes in cash, cash equivalents and restricted cash		(0.1		)		(1.2		)
Net (decrease) increase in cash, cash equivalents and restricted cash		(70.8		)		14.5
Cash, cash equivalents and restricted cash, at beginning of period		174.8				92.5
Cash, cash equivalents and restricted cash, at end of period		$	104.0			$	107.0

Table 4
R1 RCM Inc.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA (Unaudited)
(In millions)
		Three Months Ended March 31,								2021 vs. 2020 Change
		2021				2020				Amount				%
Net income		$	25.8			$	18.2			$	7.6			42	%
Net interest expense		3.9				3.8				0.1				3	%
Income tax provision		7.1				10.4				(3.3		)		(32	)%
Depreciation and amortization expense		17.9				15.7				2.2				14	%
Share-based compensation expense		12.7				4.8				7.9				165	%
Other expenses		13.0				8.7				4.3				49	%
Adjusted EBITDA (non-GAAP)		$	80.4			$	61.6			$	18.8			31	%

                        

Table 5
R1 RCM Inc.
Reconciliation of GAAP Cost of Services to Non-GAAP Cost of Services (Unaudited)
(In millions)
		Three Months Ended March 31,
		2021				2020
Cost of services		$	267.2			$	253.9
Less:
Share-based compensation expense		7.3				1.9
Depreciation and amortization expense		17.1				14.4
Non-GAAP cost of services		$	242.8			$	237.6

Table 6
R1 RCM Inc.
Reconciliation of GAAP Selling, General and Administrative to Non-GAAP Selling, General and Administrative (Unaudited)
(In millions)
		Three Months Ended March 31,
		2021				2020
Selling, general and administrative		$	25.6			$	25.5
Less:
Share-based compensation expense		5.4				2.9
Depreciation and amortization expense		0.8				1.3
Non-GAAP selling, general and administrative		$	19.4			$	21.3

Table 7
R1 RCM Inc.
Consolidated Non-GAAP Financial Information (Unaudited)
(In millions)
		Three Months Ended March 31,
		2021				2020
Net operating fees		$	286.1			$	280.9
Incentive fees		29.0				16.8
Other		27.5				22.8
Net services revenue		342.6				320.5
Operating expenses:
Cost of services (non-GAAP)		242.8				237.6
Selling, general and administrative (non-GAAP)		19.4				21.3
Sub-total		262.2				258.9
Adjusted EBITDA		$	80.4			$	61.6

Table 8
R1 RCM Inc.
Reconciliation of GAAP Operating Income Guidance to Non-GAAP Adjusted EBITDA Guidance (Unaudited)
(In millions)
	2021
GAAP Operating Income Guidance	$135-155
Plus:
Depreciation and amortization expense	$70-80
Share-based compensation expense	$55-60
Strategic initiatives, severance and other costs	$50-55
Adjusted EBITDA Guidance	$315-330

Table 9
R1 RCM Inc.
Reconciliation of Total Debt to Net Debt (Unaudited)
(In millions)
		March 31,				December 31,
		2021				2020
Senior Revolver		$	70.0			$	70.0
Senior Term Loan		478.1				484.6
Total debt		548.1				554.6
Less:
Cash and cash equivalents		103.5				173.8
Non-current portion of restricted cash equivalents		0.5				1.0
Net Debt		$	444.1			$	379.8

BOSTON, May 04, 2021 (GLOBE NEWSWIRE) — Imara Inc. (Nasdaq: IMRA), a clinical-stage biopharmaceutical company dedicated to developing and commercializing novel therapeutics to treat patients suffering from rare inherited genetic disorders of hemoglobin, today announced that the company will host a conference call and live webcast on Tuesday, May 11, 2021 at 8:30 a.m. ET to discuss its financial results for the quarter ended March 31, 2021 and review recent business highlights.

A live webcast will be available under “Events and Presentations” in the Investors section of the company’s website. The conference call can be accessed by dialing 1 (833) 519-1307 (U.S. domestic) or +1 (914) 800-3873 (international) and referring to conference ID 7598753. A replay of the webcast will be archived on the Imara website following the presentation.

About Imara

Imara Inc. is a clinical-stage biotechnology company dedicated to developing and commercializing novel therapeutics to treat patients suffering from rare inherited genetic disorders of hemoglobin. Imara is currently advancing IMR-687, a highly selective, potent small molecule inhibitor of PDE9 that is an oral, once-a-day, potentially disease-modifying treatment for sickle cell disease and beta-thalassemia. IMR-687 is being designed to have a multimodal mechanism of action that acts on red blood cells, white blood cells, adhesion mediators and other cell types. For more information, please visit www.imaratx.com.

Media Contact:

Gina Nugent
Ten Bridge Communications
617-460-3579
[email protected]

Investor Contact:

Michael Gray
617-835-4061
[email protected]

SAN MATEO, Calif., May 04, 2021 (GLOBE NEWSWIRE) — In an industry first, Farsight Security, Inc., a leading cybersecurity provider of DNS Intelligence, provides an unprecedented snapshot of the use and popularity of top-level domains over a ten-year-period in a research report entitled, “A Decade of Passive DNS: A Snapshot of Top-Level Domain Traffic.” The report, which you can download here, examines more than 1500 IANA (Internet Assigned Numbers Authority)-recognized domains, including classic generic top-level domains (gTLDs), country-code top-level domains (ccTLDs), new generic top-level domains (gTLDs), and internationalized domain names (IDNs), from 2010 to 2019.

“This report reveals an important inflection point in Internet history. Over the last decade, the Domain Name System (DNS) experienced an explosive growth period, with the introduction of generic and IDN top-level domains among other industry changes. While millions of corporations have used these assets to help establish and build their brands, our study reveals that traditional top-level domains dominate the newer top-level domains in use and popularity. Every organization should read this report to gain actionable intelligence about their brand’s top-level domain,” said Dr. Paul Vixie, Chairman, CEO and Cofounder of Farsight Security, Inc.

The report findings are based on what Farsight Security has seen in passive DNS from 2010-2019 based on a ten-year data rollup from DNSDB, excluding DNSSEC-related records. Farsight DNSDB is the world’s largest historical passive DNS database, with more than 130 billion DNS records. Starting with a suspicious domain name or IP address or even just a keyword, cybersecurity professionals can use DNSDB to map malicious infrastructure as well as uncover possible new cyberthreats to their organizations.       

In detailed charts included in “A Decade of Passive DNS,” Farsight reports findings for each of the 1,576 IANA-recognized TLDs using the following four measures: unique RRsets; unique fully qualified domain names (FQDNs); 2^nd-level domains; and sum of counts or total number of cache misses. Below represent the total number of each of these metrics:

• The total number of unique RRsets (unique combinations of RRname, RRtype, Rdata, Bailiwick, sensor or zone data): 130 Billion
• The total number of unique fully qualified domain names (FQDNs) seen: 51 Billion
• The total number of unique effective 2nd-level domains (or “delegation points”) seen: 1 Billion
• The sum of counts, or total number of cache misses: 42 Billion

Farsight also provides RRtype distributions for each of the IANA-recognized TLDs, including:

• “A” records (IPv4 address records): 64 Billion (49.4%)
• “AAAA” records (IPv6 address records): 9 Billion (6.7%)
• “CNAME” records (aliases from one name to another): 17 Billion (13.0%)
• “MX” records (SMTP server for a domain): 871 Million (0.67%)
• “NS” records (name servers for a domain): 3 Billion (2.66%)
• “SOA” records (start of authority records for the domain): 28 Billion (21.6%)
• “TXT” records (text records with arbitrary content): 3 Billion (2.3%)

Availability

The complete report, “A Decade of Passive DNS: A Snapshot of Top-Level Domain Traffic,” is available now for download here. For more information about the report, please contact Farsight Security at [email protected].

About Farsight Security, Inc.

Farsight Security, Inc. is the world’s largest provider of historical and real-time passive DNS data. We enable security teams to qualify, enrich and correlate all sources of threat data and ultimately save time when it is most critical – during an attack or investigation. Our solutions provide enterprise, government and security industry personnel and platforms with unmatched global visibility, context and response. Farsight Security is headquartered in San Mateo, California, USA. Learn more about how we can empower your threat platform and security team with Farsight Security passive DNS solutions at https://www.farsightsecurity.com/ or follow us on Twitter: @FarsightSecInc.

Karen Burke
Director of Corporate Communications
Farsight Security, Inc.
[email protected]

NEW HAVEN, Conn., May 04, 2021 (GLOBE NEWSWIRE) — Arvinas, Inc. (Nasdaq: ARVN), a clinical-stage biopharmaceutical company creating a new class of drugs based on targeted protein degradation, today reported financial results for the first quarter ended March 31, 2021 and provided a corporate update.

“Last quarter we reinforced our leadership position in the targeted protein degradation space by sharing the discovery and chemical structures of ARV-110 and ARV-471 at the American Association for Cancer Research (AACR) Annual Meeting, the first such disclosure of our clinical-stage PROTAC degraders,” said John Houston, Ph.D., President and Chief Executive Officer at Arvinas. “We look forward to further demonstrating the potential of our PROTAC platform to change the lives of patients with few or no therapeutic options.”

Business Highlights and Recent Developments

• Presented preclinical data describing the discovery of Arvinas’ two clinical-stage PROTAC degraders, ARV-110 and ARV-471, including the first disclosures of their structures at AACR

Anticipated Milestones and Expectations

ARV-471

• Completion of the Phase 1 dose escalation (1H21)
• Presentation of completed Phase 1 dose escalation data (2H21)
• Interim review of safety and dose finding data from the Phase 1b trial in combination with Ibrance® (palbociclib) (2H21)
• Initiation of a window of opportunity study in early breast cancer (2H21)
• Initiation of a combination trial of ARV-471 and another targeted therapy in 2L/3L metastatic breast cancer (2H21)

ARV-110

• Completion of the Phase 1 dose escalation (1H21)
• Presentation of completed Phase 1 dose escalation data (2H21)
• Presentation of interim data from the ARDENT Phase 2 dose expansion at 420 mg (2H21)
• Initiation of combination trial(s) with standard(s)-of-care (2021)

Other Clinical Milestones

• Initiation of first-in-human study of ARV-766, an androgen receptor (AR) degrader with a differentiated profile from ARV-110, in patients with metastatic castration-resistant prostate cancer (1H21)

Financial Guidance

Based on its current operating plan, Arvinas expects its cash, cash equivalents, and marketable securities will be sufficient to fund its planned operating expenses and capital expenditures into 2024.

First Quarter Financial Results

Cash, Cash Equivalents and Marketable Securities Position: As of March 31, 2021, cash, cash equivalents and marketable securities were $651.3 million as compared with $688.5 million as of December 31, 2020. The decrease primarily related to cash used to fund operations of $43.9 million, cash used to purchase fixed assets and leasehold improvements of $1.0 million and unrealized losses of $0.8 million, partially off-set by proceeds from two collaborators of $4.0 million and proceeds from the exercise of stock options of $4.5 million.

Research and Development Expenses: Research and development expenses were $34.9 million for the quarter ended March 31, 2021 as compared with $21.7 million for the quarter ended March 31, 2020. The increase in research and development expenses for the quarter of $13.2 million primarily related to Arvinas’ continued investment in its platform, exploratory and lead optimization programs of $8.3 million, its AR program of $1.5 million and estrogen receptor program (ER) of $3.4 million.

General and Administrative Expenses: General and administrative expenses were $12.3 million for the quarter ended March 31, 2021 as compared with $7.9 million for the quarter ended March 31, 2020. The increase in general and administrative expenses for the quarter of $4.4 million related to an increase of $3.6 million in personnel and facility related costs, including $1.8 million related to stock compensation expense, and insurance, taxes and professional fees of $0.8 million.

Revenues: Revenues were $5.5 million for the quarter ended March 31, 2021 as compared with $6.2 million for the quarter ended March 31, 2020 and was generated from the license and rights to technology fees and research and development activities related to the collaboration and license agreement with Bayer that was initiated in July 2019, the collaboration and license agreement with Pfizer that was initiated in January 2018, and the amended and restated option, license and collaboration agreement with Genentech that was initiated in November 2017. The decrease in collaboration revenue of $0.7 million for the quarter was primarily related to a collaborator adding new targets that extended the period of revenue recognition for that collaboration agreement.   

Net Loss: Net loss was $41.0 million for the quarter ended March 31, 2021 as compared with $21.7 million for the quarter ended March 31, 2020. The increase in net loss for the quarter ended March 31, 2021 of $19.3 million primarily related to Arvinas’ continued investment in its platform, exploratory and lead optimization programs, its AR program, its ER program, and an increase in general and administrative costs.

About ARV-110

ARV-110 is an investigational orally bioavailable PROTAC® protein degrader designed to selectively target and degrade the androgen receptor (AR). ARV-110 is being developed as a potential treatment for men with metastatic castration-resistant prostate cancer.

ARV-110 has demonstrated activity in preclinical models of AR mutation or overexpression, both common mechanisms of resistance to currently available AR-targeted therapies.

About ARV-471

ARV-471 is an investigational orally bioavailable PROTAC® protein degrader designed to specifically target and degrade the estrogen receptor (ER) for the treatment of patients with locally advanced or metastatic ER+/HER2- breast cancer.

In preclinical studies, ARV-471 demonstrated near-complete ER degradation in tumor cells, induced robust tumor shrinkage when dosed as a single agent in multiple ER-driven xenograft models, and showed superior anti-tumor activity when compared to a standard of care agent, fulvestrant, both as a single agent and in combination with a CDK4/6 inhibitor.

About ARV-766

ARV-766 is an investigational orally bioavailable PROTAC® protein degrader designed to selectively target and degrade AR. In preclinical studies, ARV-766 degraded all resistance-driving point mutations of AR, including L702H, a mutation associated with treatment with abiraterone and other AR-pathway therapies.

ARV-766 is being developed as a potential treatment for men with metastatic castration-resistant prostate cancer, and ARV-766 may also have applicability in other AR-driven diseases both in and outside oncology. ARV-766 has demonstrated activity in preclinical models of resistance to currently available AR-targeted therapies.

About Arvinas

Arvinas is a clinical-stage biopharmaceutical company dedicated to improving the lives of patients suffering from debilitating and life-threatening diseases through the discovery, development, and commercialization of therapies that degrade disease-causing proteins. Arvinas uses its proprietary PROTAC® Discovery Engine platform to engineer proteolysis targeting chimeras, or PROTAC® targeted protein degraders, that are designed to harness the body’s own natural protein disposal system to selectively and efficiently degrade and remove disease-causing proteins. In addition to its robust preclinical pipeline of PROTAC® protein degraders against validated and “undruggable” targets, the company has two clinical-stage programs: ARV-110 for the treatment of men with metastatic castrate-resistant prostate cancer; and ARV-471 for the treatment of patients with locally advanced or metastatic ER+/HER2- breast cancer. For more information, visit www.arvinas.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements regarding the development and regulatory status of our product candidates, including the timing of data from our clinical trials for ARV-110 and ARV-471, the potential advantages and therapeutic potential of our product candidates and the sufficiency of cash resources. All statements, other than statements of historical facts, contained in this press release, including statements regarding our strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make as a result of various risks and uncertainties, including but not limited to: whether we will be able to successfully conduct Phase 1/2 clinical trials for ARV-110 and ARV-471 or conduct a Phase 1 clinical trial for ARV-766, complete our clinical trials for our other product candidates, and receive results from our clinical trials on our expected timelines, or at all, whether our cash resources will be sufficient to fund our foreseeable and unforeseeable operating expenses and capital expenditure requirements on our expected timeline and other important factors discussed in the “Risk Factors” sections contained in our quarterly and annual reports on file with the Securities and Exchange Commission. The forward-looking statements contained in this press release reflect our current views with respect to future events, and we assume no obligation to update any forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this release.

Contacts for Arvinas

Investors

Will O’Connor, Stern Investor Relations
[email protected]

Media

Kirsten Owens, Arvinas Communications
[email protected]

Arvinas, Inc.
Consolidated Statement of Operations (Unaudited)
	Three Months Ended March 31,
		2021				2020
Revenue	$	5,539,365			$	6,239,628
Operating expenses:
Research and development		34,866,882				21,726,686
General and administrative		12,318,713				7,925,005
Total operating expenses		47,185,595				29,651,691
Loss from operations		(41,646,230	)			(23,412,063	)
Interest and other income		681,939				1,672,892
Net loss		(40,964,291	)			(21,739,171	)
Net loss per common share, basic and diluted		(0.84	)			(0.56	)
Weighted average common shares outstanding, basic and diluted		48,621,663				38,548,483

Arvinas, Inc.
Consolidated Balance Sheet (Unaudited)
	March 31,
		2021				2020
Assets
Current assets:
Cash and cash equivalents	$	346,068,406			$	588,373,232
Marketable securities		305,203,086				100,157,618
Account receivable		—				1,000,000
Other receivables		5,175,378				7,443,654
Prepaid expenses and other current assets		8,209,888				6,113,122
Total current assets		664,656,758				703,087,626
Property, equipment and leasehold improvements, net		12,210,324				12,259,515
Operating lease right of use assets		4,876,584				1,992,669
Other assets		28,777				28,777
Total assets	$	681,772,443			$	717,368,587
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	9,002,938			$	7,121,879
Accrued expenses		8,001,201				18,859,840
Deferred revenue		22,150,861				22,150,861
Current portion of operating lease liabilities		1,216,914				952,840
Total current liabilities		40,371,914				49,085,420
Deferred revenue		20,400,518				22,938,233
Long term debt, net of current portion		2,000,000				2,000,000
Operating lease liabilities		3,701,991				1,087,422
Total liabilities		66,474,423				75,111,075
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value, 48,785,692 and 48,455,741 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		48,786				48,455
Accumulated deficit		(532,853,201	)			(491,888,910	)
Additional paid-in capital		1,148,345,190				1,133,537,171
Accumulated other comprehensive income		(242,755	)			560,796
Total stockholders’ equity		615,298,020				642,257,512
Total liabilities and stockholders’ equity	$	681,772,443			$	717,368,587

Clinton Township, Michigan, May 04, 2021 (GLOBE NEWSWIRE) — Resgreen Group International (OTCPINK: RGGI), a leading mobile robot company, announces testing of an enhanced service to monitor Wanda SD fleets by implementing Open Source MQTT (Message Queuing Telemetry Transport) Broker.

MQTT is an open source publish-subscribe messaging software capable of communicating large amounts of data quickly and efficiently between client devices in a low bandwidth environment. The result is elimination of ques and lag time, making communication instantaneous and a lot more efficient.

The MQTT Broker will add enhanced monitoring efforts between publishers and subscribers on the network regarding all functions of the mobile robot. The software will be essential in validation of UVC-Ozone lamp operations, which is a key component of Wanda SD.

“The MQTT implementation enables Wanda SD to provide nimble messaging reliably to customers with fragile and low bandwidth networks. The message featuring minimized data packets will reach its destination in real-time due to its size, structure, and intelligent use of the network stack.” said Parsh Patel, CEO of RGGI.

Amazon Web Services (AWS) provides heavy support of MQTT with its IoT (Internet of Things) Core. AWS IoT Core works mutually with MQTT’s software to create and facilitate a secure and reliable collection and transfer of data within a network.

MQTT’s abilities to increase security of client connections, ease of scalability between multitude of devices, and reduction in strain on network resources will enhance the efficiency and effectiveness of Wanda SD fleets.

About Resgreen Group International, Inc. (RGGI)

RGGI is a leading developer of Artificial Intelligence Robotics (AIRs), Autonomous Mobile Robots (AMRs), and Automatic Guided Vehicles (AGVs). RGGI’s highly skilled engineers have years of experience in the material handling and robotics industries, which has led to significant intellectual property for the company.

RGGI also provides consulting services including backend operational oversight, material handling assessment, work-flow analysis, and steady state yield management using artificial intelligence, technology and management systems. For more information visit http://resgreenint.com.

Sarah Carlson
[email protected]
248.755.7680

or

ResGreen Group International, Inc.
Parashar (Parsh) Patel, President and CEO
[email protected]

LONDON, UNITED KINGDOM, May 04, 2021 (GLOBE NEWSWIRE) — Tekcapital Plc (AIM: TEK), (OTCQB: TEKCF), the UK intellectual property investment group focused on creating valuable products from investing in university technologies that can improve quality of life, is pleased to announce that portfolio company Guident has demonstrated its low-latency, vehicle control software to power its Remote Monitoring and Control Center.

Guident Ltd, the developer of software for improving the safety of autonomous vehicles (AVs) and delivery robots, announces the successful demonstration of its remote-control technology. This will be used in its first remote monitoring and control center (RMCC) for AVs, to be launched later this year in Boca Raton, Florida. The RMCC will be able to monitor multiple vehicles from a remote, secure monitoring centre, akin to air traffic control.

Also known as teleoperations, the remote-control robotics software leverages a secure, low-latency connection. The RMCC’s goal is to rapidly track the location, monitor the surroundings and when necessary, take over control of AVs in the event of an accident or mishap. Guident believes this center will provide last mile delivery fleet operators with an additional level of safety, whilst complying with Florida law, which requires a remote monitoring and control centre for AV’s that do not have drivers or safety operators within the vehicles.

The company has unveiled its new capabilities via a video demonstration. Guident’s RMCC is covered by six U.S. patents several with foreign counterparts and proprietary software designed to enhance the safety of autonomous deliveries.

The Market

According to Triton Market Research ^“the last mile AV delivery market autonomous vehicle market is expected to reach $41.7 billion by 2028 with a CAGR of 19%. Contactless or “touch-free” delivery is in high-demand since the COVID-19 pandemic and Guident believes this increased demand will accelerate the roll-out of land-based delivery drones for food and medicines to improve their availability and reduce the costs of these deliveries.

“We are incredibly pleased to announce the successful introduction of our secure software platform designed to power our RMCC. This system is device-agnostic, works with any 5G public mobile or private LTE network and has reduced signal latency when compared with traditional telemetric video monitoring and control systems,” says Harald Braun, Chairman & CEO of Guident Ltd.

“Its exciting to see the significant and rapid progress of
Guident,” said Dr Clifford M. Gross, Executive Chairman of Tekcapital.

About Guident

Guident commercializes new technology to enhance the safety, efficiency and utility of autonomous vehicles and ground-based drones using its proprietary IP & software apps for remote monitoring and control. To learn more please visit www.guident.co

About Tekcapital plc

Tekcapital creates value from investing in new, university-developed intellectual properties and provides a range of IP investment services to make it easy for organisations to commercialise university-developed technology. Tekcapital is quoted on the AIM market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in Oxford, in the UK. For more information, please visit www.tekcapital.com

LEI: 213800GOJTOV19FIFZ85

Tekcapital owns 100% of the share capital of Guident Ltd.

Guident Ltd’s RMCC in Boca Raton, FL

Forward Looking Statements
This press release is for informational purposes only. The information herein does not constitute investment advice nor an offer to invest and may contain statements related to our future business and financial performance and future events or developments involving Guident or Tekcapital that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to customers, stakeholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements may be based on the current expectations and certain assumptions of Guident’ and/or Tekcapital’s management. Please note that these are subject to a number of risks, uncertainties and factors, including, but not limited to those described in various disclosures. Should one or more of these risks or uncertainties materialise, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Guident or Tekcapital may vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Neither Guident nor Tekcapital intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

Guident Ltd’s RMCC in Boca Raton, FL

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Tekcapital Plc Via Flagstaff IR
Clifford M. Gross, Ph.D.

SP Angel Corporate Finance LLP
(Nominated Adviser and Joint Broker)
+44 (0) 20 3470 0470
Richard Morrison / Charlie Bouverat (Corporate Finance)
Abigail Wayne (Corporate Broking)

Flagstaff Strategic and Investor Communications 
+44 (0)207 129 1474
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Skyline Corporate Communications Group, LLC (U.S.)
+1 646 893 5835
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	Conference Call and Webcast Today, May 4, 2021 at 11:00 a.m. ET 334-323-0501, conference ID 7158599 orwww.bbgi.com
	Replay information provided below

NAPLES, Fla., May 04, 2021 (GLOBE NEWSWIRE) — Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (“Beasley” or the “Company”), a multi-platform media company, today announced operating results for the three-month period ended March 31, 2021.

Summary of First Quarter Results

In millions, except per share data	Three Months Ended March 31,
		2021		2020
Net revenue	$48.2			$57.7
Operating loss	$(2.5)			$(7.1	)
Net loss attributable to BBGI stockholders 1	$(10.6)			$(8.8	)
Net loss per diluted share 1	$(0.36)			$(0.32	)
Station operating income (SOI – non-GAAP)	$5.2			$6.7

1. Operating loss, net loss attributable to BBGI stockholders and net loss per diluted share reflect $1.1 million in other operating expenses in the three months ended March 31, 2021. Net loss attributable to BBGI stockholders and net loss per diluted share reflect a $5.0 million loss on extinguishment of long-term debt in the three months ended March 31, 2021. Operating loss, net loss attributable to BBGI stockholders and net loss per diluted share reflect $6.8 million of non-cash impairment losses in the three months ended March 31, 2020.

Net revenue during the three months ended March 31, 2021 reflects a year-over-year decrease in commercial advertising revenue and a lack of non-traditional revenue (“NTR”) and event revenue primarily related to the impact of the COVID-19 pandemic, in addition to lower cyclical political advertising revenue, partially offset by a year-over-year increase in digital revenue.

Beasley reported an operating loss of $2.5 million in the first quarter of 2021 compared to an operating loss of $7.1 million in the first quarter of 2020, which included a $6.8 million non-cash impairment charge in the first quarter of 2020 resulting from the impact of the COVID-19 pandemic. In addition, the first quarter of 2021 had lower corporate and operating expenses, partially offset by higher depreciation and amortization expense, and $1.1 million in other operating expenses.

Beasley reported a net loss attributable to BBGI stockholders of $10.6 million, or $0.36 per diluted share, in the three months ended March 31, 2021, compared to a net loss attributable to BBGI stockholders of $8.8 million, or $0.32 per diluted share, in the three months ended March 31, 2020. The year-over-year increase is primarily due to lower revenue, higher interest expense and the loss on extinguishment of long-term debt resulting from the issuance of secured notes on February 2, 2021 and the use of proceeds to repay existing debt.

SOI decreased $1.5 million in the first quarter of 2021 compared to the first quarter of 2020. The year-over-year decrease is primarily attributable to lower commercial advertising revenue and the lack of NTR and event revenue in the first quarter of 2021 related to the impact of the COVID-19 pandemic, as well as the year-over-year decline in political revenue.

Please refer to the “Calculation of SOI” and “Reconciliation of Net Loss to SOI” tables at the end of this announcement for a discussion regarding SOI calculations.

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “Beasley reported 2021 first quarter financial results consistent with the expectations we outlined when we reported the 2020 fourth quarter, as our strong revenue growth in the first two months of the comparable 2020 period, prior to the onset of the pandemic, created a difficult year-over-year comparison. Though we continued to experience challenges related to the COVID-19 pandemic during the first quarter, I am pleased to report that we began to see a strong recovery. As a result, we expect Beasley to return to top-line revenue growth beginning in the second quarter of 2021.

“During the first quarter, we continued to advance our digital transformation and revenue diversification initiatives across the Company. In this regard, Beasley generated digital revenue growth of approximately 10% on a year-over-year basis, with digital accounting for approximately 12% of total first quarter revenue, compared to 9.3% of total revenue in the prior year period. Consumer demand for digital audio content remains strong and with our ongoing emphasis on digital innovation, Beasley continues attracting new business by successfully targeting the sale of non-radio products to non-radio advertisers. With the continued strong growth of our digital business, Beasley will report digital revenue as a separate segment going forward. We believe this milestone represents an important inflection point in the ongoing evolution of our operating model and clearly highlights the value of our revenue diversification strategies.

“The actions we have taken over the last year to realign our cost structure and improve efficiencies across the organization drove a year-over-year reduction in first quarter operating and corporate expenses of 15.6% and 13.5%, respectively. We believe our ability to extract meaningful expense savings out of the business provided us with the ability to make strategic investments in our commercial sales infrastructure, which will enable us to maintain our market competitiveness so we are best positioned to deliver on our revenue goals as we move deeper into the recovery phase of the pandemic.

“In addition to our expense reduction and revenue diversification initiatives, Beasley also remained committed to enhancing financial flexibility through capital structure improvements. In the first quarter, we completed our offering of $300.0 million in aggregate principal amount of 8.625% senior secured notes due 2026. The net proceeds of the offering were used to repay in full existing indebtedness under the Company’s senior secured credit facilities and other debt, with the remaining proceeds added to our balance sheet for general corporate purposes. In addition, and due to future economic uncertainty, in early February we applied for and were subsequently approved for a $10 million Paycheck Protection Program loan. Together, these transactions improve our liquidity profile, while providing growth capital to support the continued investment in our business.

“In summary, we believe our first quarter financial performance demonstrates that our digital transformation continues to gain momentum and our recent capital structure initiatives have positioned us to further leverage the highest growth areas of our business and capitalize on the many synergies between our broadcast, digital and e-sports divisions, which we believe will drive increased and more diversified cash flows in future periods. Looking ahead, our strategic priorities remain focused on delivering exceptional content and services to our listeners, advertisers, online users and esports fans, while diversifying our revenue, growing our cash flow and maintaining a solid and flexible balance sheet with liquidity at current or higher levels. We believe that this approach, positions Beasley well for near- and long-term success and the enhancement of stockholder value.”

Conference Call and Webcast Information
The Company will host a conference call and webcast today, May 4, 2021, at 11:00 a.m. ET to discuss its financial results and operations. To access the conference call, interested parties may dial 334-323-0501, conference ID 7158599 (domestic and international callers). Participants can also listen to a live webcast of the call at the Company’s website at www.bbgi.com. Please allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the webcast can be accessed for five days on the Company’s website, www.bbgi.com.

Questions from analysts, institutional investors and debt holders may be e-mailed to [email protected] at any time up until 9:00 a.m. ET on Tuesday, May 4, 2021. Management will answer as many questions as possible during the conference call and webcast (provided the questions are not addressed in their prepared remarks).

About Beasley Broadcast Group

Celebrating its 60th anniversary this year, the Company was founded in 1961 by George G. Beasley, who remains the Company’s Chairman of the Board. The Company owns and operates 62 stations (47 FM and 15 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text, apps and email. The Company recently acquired a majority interest in the Overwatch League’s Houston Outlaws esports team and owns BeasleyXP, a national esports content hub. For more information, please visit www.bbgi.com. 

Definitions

Station Operating Income (SOI) consists of net revenue less station operating expenses. We define station operating expenses as cost of services and selling, general and administrative expenses.

Free Cash Flow (FCF) consists of SOI less corporate expenses, interest expense, current income tax expense and capital expenditures plus stock-based compensation expense, net proceeds from dispositions, amortization of debt issuance costs and interest income.

SOI and FCF are measures widely used in the radio broadcast industry. The Company recognizes that because SOI and FCF are not calculated in accordance with GAAP, they are not necessarily comparable to similarly titled measures employed by other companies. However, management believes that SOI and FCF provide meaningful information to investors because they are important measures of how effectively we operate our business (i.e., operate radio stations) and assist investors in comparing our operating performance with that of other radio companies.

Note Regarding Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based upon current expectations and assumptions, and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as “intends,” “believes,” “expects,” “seek,” “we remain optimistic that” or variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Key risks are described in the Company’s reports filed with the Securities and Exchange Commission (“SEC”) including its annual report on Form 10-K and quarterly reports on Form 10-Q. Readers should note that forward-looking statements are subject to change and to inherent risks and uncertainties and may be impacted by several factors, including:

• the effects of the COVID-19 pandemic, including its potential effects on the economic environment and our results of operations, liquidity and financial condition, and the increased risk of impairments of our Federal Communications Commission (“FCC”) licenses and/or goodwill, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic;
• external economic forces that could have a material adverse impact on our advertising revenues and results of operations;
• the ability of our radio stations to compete effectively in their respective markets for advertising revenues;
• our ability to develop compelling and differentiated digital content, products and services;
• audience acceptance of our content, particularly our radio programs;
• our ability to respond to changes in technology, standards and services that affect the radio industry;
• our dependence on federally issued licenses subject to extensive federal regulation;
• actions by the FCC or new legislation affecting the radio industry;
• our dependence on selected market clusters of radio stations for a material portion of our net revenue;
• credit risk on our accounts receivable;
• the risk that our FCC licenses and/or goodwill could become impaired;
• our substantial debt levels and the potential effect of restrictive debt covenants on our operational flexibility and ability to pay dividends;
• the potential effects of hurricanes on our corporate offices and radio stations;
• the failure or destruction of the internet, satellite systems and transmitter facilities that we depend upon to distribute our programming;
• disruptions or security breaches of our information technology infrastructure;
• the loss of key personnel;
• our ability to integrate acquired businesses and achieve fully the strategic and financial objectives related thereto and their impact on our financial condition and results of operations;
• the fact that we are controlled by the Beasley family, which creates difficulties for any attempt to gain control of the Company; and
• other economic, business, competitive, and regulatory factors affecting the businesses of the Company, including those set forth in the Company’s filings with the SEC.

Our actual performance and results could differ materially because of these factors and other factors discussed in our SEC filings, including but not limited to our annual reports on Form 10-K or quarterly reports on Form 10-Q, copies of which can be obtained from the SEC, www.sec.gov, or our website, www.bbgi.com. All information in this release is as of May 4, 2021, and we undertake no obligation to update the information contained herein to actual results or changes to our expectations.

-tables follow-

BEASLEY BROADCAST GROUP, INC. Consolidated Statements of Operations (Unaudited)
	Three months ended
	March 31,
		2021			2020
Net revenue	$	48,212,040		$	57,650,426
Operating expenses:
Operating expenses (including stock-based compensation and excluding
depreciation and amortization shown separately below)		42,967,871			50,900,477
Corporate expenses (including stock-based compensation)		3,905,289			4,513,092
Other operating expenses		1,100,000			–
Depreciation and amortization		2,951,901			2,576,475
Impairment losses		–			6,804,412
Gain on dispositions		(191,988	)		–
Total operating expenses		50,733,073			64,794,456
Operating loss		(2,521,033	)		(7,144,030	)
Non-operating income (expense):
Interest expense		(5,778,071	)		(4,184,811	)
Loss on extinguishment of long term debt		(4,996,731	)		–
Other income (expense), net		38,413			26,425
Loss before income taxes		(13,257,422	)		(11,302,416	)
Income tax benefit		(2,602,886	)		(2,417,780	)
Loss before equity in earnings of unconsolidated affiliates		(10,654,536	)		(8,884,636	)
Equity in earnings of unconsolidated affiliates, net of tax		(30,105	)		(61,527	)
Net loss		(10,684,641	)		(8,946,163	)
Earnings attributable to noncontrolling interest		129,249			109,602
Net loss attributable to BBGI stockholders	$	(10,555,392	)	$	(8,836,561	)
Basic and diluted net loss per share	$	(0.36	)	$	(0.32	)
Basic common shares outstanding		29,302,799			27,947,577
Diluted common shares outstanding		29,302,799			27,947,577

Selected Balance Sheet Data – Unaudited (in thousands)
	March 31,			December 31,
	2021			2020
Cash and cash equivalents	$	56,211		$	20,759
Working capital		64,216			37,065
Total assets		762,099			738,614
Long term debt, net of unamortized debt issuance costs		302,649			258,345
Stockholders’ equity	$	252,740		$	267,727

Selected Statement of Cash Flows Data – Unaudited
	Three months ended
	March 31,
		2021			2020
Net cash provided by operating activities	$	2,354,007		$	1,953,723
Net cash used in investing activities		(666,768	)		(4,193,430	)
Net cash provided by financing activities		33,763,934			2,070,737
Net increase (decrease) in cash and cash equivalents	$	35,451,173		$	(168,970	)

Calculation of SOI – Unaudited
	Three months ended
	March 31,
		2021			2020
Net revenue	$	48,212,040		$	57,650,426
Operating expenses		(42,967,871	)		(50,900,477	)
SOI	$	5,244,169		$	6,749,949

Reconciliation of Net Loss Attributable to BBGI Stockholders to SOI
		2021			2020
Net loss attributable to BBGI stockholders		(10,555,392	)	$	(8,836,561	)
Corporate expenses		3,905,289			4,513,092
Other operating expenses		1,100,000			–
Depreciation and amortization		2,951,901			2,576,475
Impairment losses		–			6,804,412
Gain on dispositions		(191,988	)		–
Interest expense		5,778,071			4,184,811
Loss on extinguishment of long-term debt		4,996,731			–
Other income (expense), net		(38,413	)		(26,425	)
Income tax benefit		(2,602,886	)		(2,417,780	)
Equity in earnings of unconsolidated affiliates, net of tax		30,105			61,527
Earnings attributable to noncontrolling interest		(129,249	)		(109,602	)
SOI	$	5,244,169		$	6,749,949

Reconciliation of Net Revenue to FCF
	Three months ended
	March 31,
		2021			2020
Net revenue	$	48,212,040		$	57,650,426
Operating expenses		(42,967,871	)		(50,900,477	)
Corporate expenses		(3,905,289	)		(4,513,092	)
Net proceeds from dispositions		362,500			–
Stock-based compensation expense		520,801			266,439
Interest expense		(5,778,071	)		(4,184,811	)
Amortization of debt issuance costs		411,363			483,983
Interest income		2,589			15,947
Current income tax expense		–			–
Capital expenditures		(1,029,268	)		(3,443,430	)
FCF	$	(4,171,206	)	$	(4,625,015	)

CONTACT:
B. Caroline Beasley                                                 Chief Executive Officer                                              Beasley Broadcast Group, Inc.   239/263-5000 or [email protected]	Joseph Jaffoni, Jennifer Neuman JCIR 212/835-8500 or [email protected]