Market Newsdesk

May 5, 2021 7:34 am

Enbridge Declares Quarterly Dividends

PR Newswire

CALGARY, AB, May 5, 2021 /PRNewswire/ – The Board of Directors of Enbridge Inc. (TSX: ENB) (NYSE: ENB) has declared a quarterly dividend of $0.835 per common share, payable on June 1, 2021 to shareholders of record on May 14, 2021. The amount of the dividend is consistent with the March 1, 2021 dividend.

The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on June 1, 2021 to shareholders of record on May 14, 2021. All amounts shown are in Canadian dollars unless otherwise specified.

Common Shares	$0.835
Preference Shares, Series A	$0.34375
Preference Shares, Series B	$0.21340
Preference Shares, Series C	$0.15501
Preference Shares, Series D	$0.27875
Preference Shares, Series F	$0.29306
Preference Shares, Series H	$0.27350
Preference Shares, Series J	US$0.30540
Preference Shares, Series L	US$0.30993
Preference Shares, Series N	$0.31788
Preference Shares, Series P	$0.27369
Preference Shares, Series R	$0.25456
Preference Shares, Series 1	US$0.37182
Preference Shares, Series 3	$0.23356
Preference Shares, Series 5	US$0.33596
Preference Shares, Series 7	$0.27806
Preference Shares, Series 9	$0.25606
Preference Shares, Series 11	$0.24613
Preference Shares, Series 13	$0.19019
Preference Shares, Series 15	$0.18644
Preference Shares, Series 17	$0.321875
Preference Shares, Series 19	$0.30625

About Enbridge Inc.

Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company’s common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Media
Toll Free: (888) 992-0997
Email: [email protected]

Investment Community

Toll Free: (800) 481-2804
Email: [email protected]

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SOURCE Enbridge Inc.

May 5, 2021 7:34 am

Spirit AeroSystems Reports First Quarter 2021 Results

PR Newswire

WICHITA, Kan., May 5, 2021 /PRNewswire/ —

Delivered 269 shipsets, compared to 324 in Q1 2020 including 29 737 MAX shipsets in Q1 2021 compared to 18 in Q1 2020; expect to deliver about 160 737 MAX shipsets in 2021
$901 million in Q1 2021 revenue, compared to $1,077 million in Q1 2020
Cash used in operations of $(170) million and free cash flow* of $(198) million in Q1 2021 compared to cash used in operations of $(331) million and free cash flow* of $(362) million in Q1 2020
Full-year 2021 cash used in operations is expected to be between $(50) to $(150) million; full-year 2021 free cash flow* is expected to be between $(200) and $(300) million
EPS of $(1.65) in Q1 2021 compared to $(1.57) in Q1 2020; Adjusted EPS* of $(1.22) in Q1 2021 compared to $(0.79) in Q1 2020
Prepaid $300 million of floating rate notes in February 2021

Spirit AeroSystems Holdings, Inc. [NYSE: SPR] (“Spirit” or the “Company”) reported first quarter 2021 financial results.

Table 1. Summary Financial Results (unaudited)
	1st Quarter
($ in millions, except per share data)	2021	2020	Change

Revenues	$901	$1,077	(16%)
Operating Loss	($126)	($168)	**
Operating Loss as a % of Revenues	(14.0%)	(15.5%)	**
Net Loss	($172)	($163)	**
Net Loss as a % of Revenues	(19.0%)	(15.1%)	**
Loss Per Share (Fully Diluted)	($1.65)	($1.57)	**
Adjusted Loss Per Share (Fully Diluted)*	($1.22)	($0.79)	**
Fully Diluted Weighted Avg Share Count	104.1	103.7

** Represents an amount equal to or in excess of 100% or not meaningful.

“A year ago we were grappling with unprecedented disruption and uncertainty,” said Tom Gentile, Spirit AeroSystems President and Chief Executive Officer. “The recovery this year is underway but slower than expected, particularly for international air travel, which is creating headwinds for the widebody programs. We intend to use our excess widebody production capacity to pursue defense program opportunities. While a broader air traffic recovery will continue to take some time, we are encouraged by improving domestic air travel, which is primarily served by narrowbody aircraft. We believe Spirit is well positioned to benefit from this improvement given about 85% of our backlog consists of narrowbody aircraft. We are increasing 737 MAX production rates in line with Boeing’s objective of 31 aircraft per month in 2022, and have started bringing back employees to support our factories.”

“Over the past few months, we have also been performing ongoing 787 engineering analysis and rework to support Boeing’s resumption of deliveries in the first quarter of 2021 which has resulted in a forward loss,” said Gentile. “We are pleased to see that Boeing resumed 787 deliveries in the first quarter.”

Revenue

Spirit’s first quarter of 2021 revenue was $900.8 million, down from the same period of 2020, primarily due to the significantly lower widebody production rates due to reduced international air traffic resulting from the impacts of COVID-19 as well as lower production rates on the Airbus A320 program. First quarter 2021 revenue includes increased revenue from the recently acquired A220 wing and Bombardier programs as well as defense program revenue. Deliveries decreased to 269 shipsets during the first quarter of 2021 compared to 324 shipsets in the same period of 2020, including Boeing 787 deliveries of 15 shipsets compared to 40 shipsets in the same period of the prior year, and 12 Airbus A350 shipset deliveries compared to 26 in the same period of 2020. In the first quarter of 2021, Airbus A320 deliveries were 130 compared to 188 in the first quarter of 2020.

Spirit’s backlog at the end of the first quarter of 2021 was approximately $33 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.

Earnings

Operating loss for the first quarter of 2021 was $125.9 million, as compared to operating loss of $167.5 million in the same period of 2020. The decreased loss was primarily driven by lower restructuring costs, excess capacity, abnormal COVID-19 related production costs and SG&A expense in the first quarter of 2021 compared to the first quarter of 2020, partially offset by additional forward losses on Boeing 787 and Airbus A350 programs. Included in the first quarter 2021 operating loss were pretax $5.8 million of unfavorable cumulative catch-up adjustments and excess capacity costs of $67.6 million. Additionally, the first quarter of 2021 included pretax forward loss charges of $72.4 million, primarily driven by Boeing 787 engineering analysis and rework to support Boeing’s resumption of deliveries and the impact of lower Airbus A350 production rates coupled with higher costs to achieve production quality improvements. In comparison, during the first quarter of 2020, Spirit recorded pretax $8.2 million of unfavorable cumulative catch-up adjustments, excess capacity costs of $73.4 million, $19.7 million of net forward loss charges, restructuring expenses of $42.6 million and abnormal COVID-19 costs of $25.4 million.

Other income for the first quarter 2021 was $12.8 million, compared to a net expense of $49.0 million for the same period in the prior year. The increase in income primarily reflects a net pension loss recognized in the prior year period related to a voluntary retirement program (“VRP”). Interest expense and financing fee amortization for the first quarter of 2021 increased $27.6 million, primarily driven by increased interest expense on more debt as well as higher interest rates on the debt compared to the same period in the prior year.

First quarter EPS was $(1.65), compared to $(1.57) in the same period of 2020. First quarter 2021 adjusted EPS* was $(1.22), which excluded the impacts from the acquisitions, restructuring costs and the incremental $42.3 million deferred tax asset valuation allowance in the first quarter of 2021. During the same period of 2020, adjusted EPS* was $(0.79), which excluded the impact of the Asco and Bombardier acquisitions, restructuring costs and the voluntary retirement program offered during 2020. (Table 1)

Cash

Cash used in operations in the first quarter of 2021 was $(170) million as compared to $(331) million in the same quarter last year, primarily due to positive impacts of working capital and partially offset by $215 million received in the first quarter of 2020 related to the memorandum of agreement with Boeing. Free cash flow* in the first quarter of 2021 was $(198) million as compared to $(362) million in the same period of 2020. Cash balance at the end of the first quarter of 2021 was $1.4 billion. (Table 2)

Table 2. Cash Flow and Liquidity (unaudited)
	1st Quarter
($ in millions)	2021	2020	Change

Cash used in Operations	($170)	($331)	**
Purchases of Property, Plant & Equipment	($28)	($31)	(11%)
Free Cash Flow*	($198)	($362)	**

	April 1,	December 31,
Liquidity	2021	2020
Cash	$1,359	$1,873
Total Debt	$3,565	$3,874

** Represents an amount equal to or in excess of 100% or not meaningful.

2021 Cash Outlook

Full-year 2021 cash used in operations is expected to be between $(50) to $(150) million; full-year 2021 free cash flow* is expected to be between $(200) and $(300) million. Please refer to our Cautionary Statement Regarding Forward-Looking Statements below and Item 1A. “Risk Factors” in our Annual Report on Form 10-K.

Segment Results

Fuselage Systems

Fuselage Systems segment revenue in the first quarter of 2021 decreased 21 percent from the same period last year to $437.1 million, primarily due to lower production volumes on the Boeing 777, 787 and Airbus A350 programs, partially offset by increased revenue from the Boeing 737 and recently acquired Bombardier programs. Operating margin for the first quarter of 2021 increased to (13.7) percent, compared to (15.7) percent during the same period of 2020. This increase was partially due to increased profit on defense programs and Boeing 737 MAX production volumes resulting in decreased excess capacity costs. First quarter 2021 increased profit was also due to lower restructuring expenses and abnormal COVID-19 costs. The increased segment margin was partially offset by increased forward losses recognized on the Boeing 787 and Airbus A350 programs. In the first quarter of 2021, the Fuselage Systems Segment includes restructuring expenses of $1.8 million, excess capacity costs of $42.6 million and abnormal COVID-19 costs of $0.7 million compared to restructuring expenses of $30.1 million, excess capacity costs of $51.2 million and abnormal COVID-19 costs of $15.3 million for the same period in 2020. In the first quarter of 2021, the segment recorded pretax $1.9 million of favorable cumulative catch-up adjustments and $55.1 million of net forward losses. In the first quarter of 2020, the segment recorded pretax $4.0 million of unfavorable cumulative catch-up adjustments and $13.2 million of net forward losses.

Propulsion Systems

Propulsion Systems segment revenue in the first quarter of 2021 increased 1 percent from the same period last year to $226.5 million, primarily due to increased revenue from the 737 MAX program and aftermarket sales, partially offset by decreased revenue from the Boeing 777 and 787 programs. Operating margin for the first quarter of 2021 increased to 7.4 percent, compared to (2.4) percent during the same period of 2020, primarily due to lower restructuring expenses, excess capacity costs and abnormal COVID-19 costs. Increased segment operating margin was offset by margin deterioration on the Boeing 737 MAX and 787 programs. In the first quarter of 2021, the segment recorded $(0.2) million of restructuring costs, decreased excess capacity costs of $7.2 million and $0.1 million of abnormal COVID-19 costs compared to $8.8 million of restructuring expenses, excess capacity costs of $15.8 million, and abnormal COVID-19 costs of $6.2 million in the first quarter of 2020. The segment recorded pretax $5.6 million of unfavorable cumulative catch-up adjustments and $4.7 million of net forward losses in the first quarter of 2021. In comparison, during the same period of the prior year, the segment recorded pretax $1.5 million of unfavorable cumulative catch-up adjustments, and $3.1 million of net forward losses.

Wing Systems

Wing Systems segment revenue in the first quarter of 2021 decreased 23 percent from the same period last year to $223.6 million, primarily due to lower production volumes on the Boeing 787, Airbus A320 and A350 programs, partially offset by revenue from the recently acquired A220 wing program. Operating margin for the first quarter of 2021 decreased to (8.5) percent, compared to 4.7 percent during the same period of 2020, primarily due to increased net forward losses recognized on the Boeing 787 and Airbus A350 programs as well as lower margin recognized due to increased excess capacity costs on the A320 and A220 wing. In the first quarter of 2021, the segment includes $0.5 million of restructuring costs, excess capacity costs of $17.8 million and $1.3 million of abnormal COVID-19 costs compared to the same period the prior year, which included restructuring expenses of $3.7 million, excess capacity costs of $6.4 million pretax and abnormal COVID-19 costs of $3.9 million. In the first quarter of 2021, the segment recorded pretax $2.1 million of unfavorable cumulative catch-up adjustments and $12.6 million of net forward losses. In the first quarter of 2020, the segment recorded pretax $2.7 million of unfavorable cumulative catch-up adjustments and $3.4 million of net forward losses.

Table 4. Segment Reporting (unaudited)
	1st Quarter
($ in millions)	2021	2020	Change

Segment Revenues
Fuselage Systems	$437.1	$551.5	(20.7%)
Propulsion Systems	226.5	225.2	0.6%
Wing Systems	223.6	291.4	(23.3%)
All Other	13.6	9.2	**
Total Segment Revenues	$900.8	$1,077.3	(16.4%)

Segment (Loss) Earnings from Operations
Fuselage Systems	($59.8)	($86.4)	**
Propulsion Systems	16.7	(5.3)	**
Wing Systems	(18.9)	13.6	**
All Other	1.2	1.8	**
Total Segment Operating (Loss) Earnings	($60.8)	($76.3)	**

Unallocated Expense
SG&A	($57.6)	($77.4)	25.6%
Research & Development	(8.2)	(12.3)	33.3%
Cost of Sales	0.7	(1.5)	**
Total (Loss) Earnings from Operations	($125.9)	($167.5)	**

Segment Operating (Loss) Earnings as % of Revenues
Fuselage Systems	(13.7%)	(15.7%)	**
Propulsion Systems	7.4%	(2.4%)	**
Wing Systems	(8.5%)	4.7%	**
All Other	8.8%	19.6%	**
Total Segment Operating (Loss) Earnings as % of Revenues	(6.7%)	(7.1%)	**

Total Operating (Loss) Earnings as % of Revenues	(14.0%)	(15.5%)	**

** Represents an amount equal to or in excess of 100% or not meaningful.

On the web: http:/ /www.spiritaero.com

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” that may involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “goal,” “forecast,” “intend,” “may,” “might,” “model,” “objective,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements are based on circumstances as of the date on which the statements are made and they reflect management’s current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements.

Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following:

the impact of the COVID-19 pandemic on our business and operations, including on the demand for our and our customers’ products and services, on trade and transport restrictions, on the global aerospace supply chain, on our ability to retain the skilled work force necessary for production and development, and generally on our ability to effectively manage the impacts of the COVID-19 pandemic on our business operations;
demand for our products and services and the general effect of economic or geopolitical conditions, or other events, such as pandemics, in the industries and markets in which we operate in the U.S. and globally;
the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft;
our reliance on Boeing and Airbus for a significant portion of our revenues;
the business condition and liquidity of our customers and their ability to satisfy their contractual obligations to the Company;
the certainty of our backlog, including the ability of customers to cancel or delay orders prior to shipment;
our ability to accurately estimate and manage performance, cost, margins, and revenue under our contracts, and the potential for additional forward losses on new and maturing programs;
our accounting estimates for revenue and costs for our contracts and potential changes to those estimates;
our ability to continue to grow and diversify our business, execute our growth strategy, and secure replacement programs, including our ability to enter into profitable supply arrangements with additional customers;
the outcome of product warranty or defective product claims and the impact settlement of such claims may have on our accounting assumptions;
our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components;
our ability and our suppliers’ ability to meet stringent delivery (including quality and timeliness) standards and accommodate changes in the build rates of aircraft;
our ability to maintain continuing, uninterrupted production at our manufacturing facilities and our suppliers’ facilities;
competitive conditions in the markets in which we operate, including in-sourcing by commercial aerospace original equipment manufacturers;
our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing, Airbus and other customers;
our ability to effectively integrate the acquisition of select assets of Bombardier along with other acquisitions that we pursue, and generate synergies and other cost savings therefrom, while avoiding unexpected costs, charges, expenses, and adverse changes to business relationships and business disruptions;
the possibility that our cash flows may not be adequate for our additional capital needs;
any reduction in our credit ratings;
our ability to access the capital markets to fund our liquidity needs, and the costs and terms of any additional financing;
our ability to avoid or recover from cyber or other security attacks and other operations disruptions;
legislative or regulatory actions, both domestic and foreign, impacting our operations, including the effect of changes in tax laws and rates and our ability to accurately calculate and estimate the effect of such changes;
our ability to recruit and retain a critical mass of highly skilled employees;
our relationships with the unions representing many of our employees, including our ability to avoid labor disputes and work stoppages with respect to our union employees;
spending by the U.S. and other governments on defense;
pension plan assumptions and future contributions;
the effectiveness of our internal control over financial reporting;
the outcome or impact of ongoing or future litigation, arbitration, claims, and regulatory actions or investigations, including our exposure to potential product liability and warranty claims;
adequacy of our insurance coverage;
our ability to continue selling certain receivables through our supplier financing programs;
and the risks of doing business internationally, including fluctuations in foreign currency exchange rates, impositions of tariffs or embargoes, trade restrictions, compliance with foreign laws, and domestic and foreign government policies.

These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You should review carefully the section captioned “Risk Factors” in the Company’s Annual Report on Form 10-K for a more complete discussion of these and other factors that may affect our business.

Spirit Shipset Deliveries
(one shipset equals one aircraft)


	1st Quarter
	2021	2020
B737	29	18
B747	1	2
B767	10	6
B777	5	9
B787	15	40
Total Boeing	60	75

A220	12	15
A320 Family	130	188
A330	5	8
A350	12	26
Total Airbus	159	237

Business/Regional Jet ⁽¹⁾	50	12

Total	269	324


⁽¹⁾Beginning in the fourth quarter of 2020, includes Business/Regional Jet deliveries related to the Bombardier acquisition

Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)

			For the Three Months Ended
			April 1, 2021	April 2, 2020
		($ in millions, except per share data)

Revenue			$900.8	$1,077.3
Operating costs and expenses:
Cost of sales			958.8	1,112.5
Selling, general and administrative			57.6	77.4
Restructuring costs			2.1	42.6
Research and development			8.2	12.3
	Total operating costs and expenses		1,026.7	1,244.8
	Operating loss		(125.9)	(167.5)
Interest expense and financing fee amortization			(59.8)	(32.2)
Other income (expense), net			12.8	(49.0)
	Loss before income taxes and equity in net loss of affiliate		(172.9)	(248.7)
Income tax benefit			1.7	87.2
	Loss before equity in net loss of affiliate		(171.2)	(161.5)
Equity in net loss of affiliate			(0.4)	(1.5)
	Net loss		($171.6)	($163.0)

Loss per share
Basic			($1.65)	($1.57)
Shares			104.1	103.7

Diluted			($1.65)	($1.57)
Shares			104.1	103.7

Dividends declared per common share			$0.01	$0.01

Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
	April 1, 2021	December 31, 2020
	($ in millions)
Assets
Cash and cash equivalents	$1,359.3	$1,873.3
Restricted cash	0.3	0.3
Accounts receivable, net	525.8	484.4
Contract assets, short-term	361.9	368.4
Inventory, net	1,395.8	1,422.3
Other current assets	344.5	336.3
Total current assets	3,987.6	4,485.0
Property, plant and equipment, net	2,457.0	2,503.8
Intangible assets, net	207.0	215.2
Goodwill	583.9	565.3
Right of use assets	70.0	70.6
Contract assets, long-term	5.9	4.4
Pension assets	466.8	455.9
Deferred income taxes	0.3	0.1
Other assets	89.3	83.6
Total assets	$7,867.8	$8,383.9
Liabilities
Accounts payable	$540.8	$558.9
Accrued expenses	383.3	365.6
Profit sharing	14.9	57.0
Current portion of long-term debt	40.2	340.7
Operating lease liabilities, short-term	5.5	5.5
Advance payments, short-term	53.1	18.9
Contract liabilities, short-term	119.3	97.6
Forward loss provision, short-term	244.5	184.6
Deferred revenue and other deferred credits, short-term	15.0	22.2
Other current liabilities	71.4	58.4
Total current liabilities	1,488.0	1,709.4
Long-term debt	3,525.2	3,532.9
Operating lease liabilities, long-term	66.6	66.6
Advance payments, long-term	289.9	327.4
Pension/OPEB obligation	431.8	440.2
Contract liabilities, long-term	348.5	372.0
Forward loss provision, long-term	509.1	561.4
Deferred revenue and other deferred credits, long-term	38.0	38.9
Deferred grant income liability – non-current	27.9	28.1
Deferred income taxes	10.9	13.0
Other non-current liabilities	438.9	437.0
Stockholders’ Equity
Common stock, Class A par value $0.01, 200,000,000 shares authorized, 105,438,110 and 105,542,162 shares issued and outstanding, respectively	1.1	1.1
Additional paid-in capital	1,144.4	1,139.8
Accumulated other comprehensive loss	(150.0)	(154.1)
Retained earnings	2,153.7	2,326.4
Treasury stock, at cost (41,523,470 shares each period, respectively)	(2,456.7)	(2,456.7)
Total stockholders’ equity	692.5	856.5
Noncontrolling interest	0.5	0.5
Total equity	693.0	857.0
Total liabilities and equity	$7,867.8	$8,383.9

Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)

	For the Three Months Ended
	April 1, 2021	April 2, 2020
	($ in millions)
Operating activities
Net loss	($171.6)	($163.0)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization expense	80.3	67.3
Amortization of deferred financing fees	2.3	1.9
Accretion of customer supply agreement	0.6	1.1
Employee stock compensation expense	6.6	9.8
Gain from derivative instruments	(0.1)	–
Loss (gain) from foreign currency transactions	7.2	(6.5)
Loss on disposition of assets	0.3	0.2
Deferred taxes	(0.9)	(61.5)
Long term income tax payable	(1.9)	–
Pension and other post-retirement benefits, net	(15.2)	59.9
Grant liability amortization	(0.4)	(2.4)
Equity in net loss of affiliates	0.4	–
Forward loss provision	(3.5)	(9.0)
Changes in assets and liabilities
Accounts receivable, net	(38.3)	36.1
Contract assets	5.6	144.5
Inventory, net	23.1	(59.4)
Accounts payable and accrued liabilities	(6.4)	(278.6)
Profit sharing/deferred compensation	(42.6)	(66.7)
Advance payments	(0.8)	(19.8)
Income taxes receivable/payable	3.6	(32.8)
Contract liabilities	(1.7)	39.1
Other	(16.8)	8.5
Net cash used in operating activities	($170.2)	($331.3)
Investing activities
Purchase of property, plant and equipment	(27.6)	(31.0)
Equity in assets of affiliate	–	1.5
Acquisition, net of cash acquired	–	(118.1)
Other	1.2	0.3
Net cash used in investing activities	($26.4)	($147.3)
Financing activities
Customer financing	(2.5)	10.0
Principal payments of debt	(9.8)	(7.3)
Payments on term loan	(1.0)	(5.7)
Payments on floating rate notes	(300.0)	–
Taxes paid related to net share settlement awards	(3.3)	(13.1)
Proceeds from issuance of ESPP	1.4	1.3
Debt issuance and financing costs	–	(4.8)
Dividends paid	(1.1)	(12.4)
Other	(0.1)	–
Net cash used in financing activities	($316.4)	($32.0)
Effect of exchange rate changes on cash and cash equivalents	(1.0)	(6.2)
Net decrease in cash, cash equivalents and restricted cash for the period	($514.0)	($516.8)
Cash, cash equivalents, and restricted cash, beginning of the period	1,893.1	2,367.2
Cash, cash equivalents, and restricted cash, end of the period	$1,379.1	$1,850.4

Reconciliation of Cash and Cash Equivalents and Restricted Cash:	April 1, 2021	April 2, 2020
Cash and cash equivalents, beginning of the period	$1,873.3	$2,350.5
Restricted cash, short-term, beginning of the period	0.3	0.3
Restricted cash, long-term, beginning of the period	19.5	16.4
Cash, cash equivalents, and restricted cash, beginning of the period	$1,893.1	$2,367.2

Cash and cash equivalents, end of the period	$1,359.3	$1,833.6
Restricted cash, short-term, end of the period	$0.3	$0.3
Restricted cash, long-term, end of the period	19.5	16.5
Cash, cash equivalents, and restricted cash, end of the period	$1,379.1	$1,850.4

Appendix

In addition to reporting our financial information using U.S. Generally Accepted Accounting Principles (GAAP), management believes that certain non-GAAP measures (which are indicated by * in this report) provide investors with important perspectives into the company’s ongoing business performance. The non-GAAP measures we use in this report are (i) adjusted diluted earnings per share and (ii) free cash flow, which are described further below. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define and calculate the measures differently than we do, limiting the usefulness of the measures for comparison with other companies.

Adjusted Diluted (Loss) Earnings Per Share. To provide additional transparency, we have disclosed non-GAAP adjusted diluted (loss) earnings per share (Adjusted EPS). This metric excludes various items that are not considered to be directly related to our operating performance. Management uses Adjusted EPS as a measure of business performance and we believe this information is useful in providing period-to-period comparisons of our results. The most comparable GAAP measure is diluted earnings per share.

Free Cash Flow. Free Cash Flow is defined as GAAP cash from operating activities (generally referred to herein as “cash used in operations”), less capital expenditures for property, plant and equipment. Management believes Free Cash Flow provides investors with an important perspective on the cash available for stockholders, debt repayments including capital leases, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures. The most comparable GAAP measure is cash provided by operating activities. Management uses Free Cash Flow as a measure to assess both business performance and overall liquidity.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Adjusted EPS

	1st Quarter
	2021		2020



GAAP Diluted Loss Per Share	($1.65)		($1.57)
Costs Related to Acquisitions	0.01	a	0.08	b
Restructuring Costs	0.01	c	0.27	d
Voluntary Retirement Program	–		0.43	e
Deferred Tax Asset Valuation Allowance	0.41	f	–
Adjusted Diluted Loss Per Share	($1.22)		($0.79)

Diluted Shares (in millions)	104.1		103.7


a Represents the three months ended Q1 2021 transaction costs (included in SG&A)

b Represents the three months ended Q1 2020 transaction costs (included in SG&A)

c Represents the three months ended Q1 2021 restructuring expenses for cost-alignment and headcount reductions (included in Restructuring costs)

d Represents the three months ended Q1 2020 restructuring expenses for cost-alignment and headcount reductions (included in Restructuring costs)

e Represents the three months ended Q1 2020 retirement incentive expenses resulting from the VRP offered during the first quarter of 2020 (included in Other expense)

f Represents the three months ended Q1 2021 deferred tax asset valuation allowance (included in Income tax provision)

Free Cash Flow
($ in millions)

	1st Quarter		Guidance
	2021	2020	2021

Cash used in Operations	($170)	($331)	($50) – ($150)
Capital Expenditures	(28)	(31)	(150) – (150)
Free Cash Flow	($198)	($362)	($200 – $300)

* Non-GAAP financial measure, see Appendix for reconciliation

View original content:http://www.prnewswire.com/news-releases/spirit-aerosystems-reports-first-quarter-2021-results-301284316.html

SOURCE Spirit AeroSystems

May 5, 2021 7:34 am

JLL Reports Strong First-Quarter 2021 Results

Diluted earnings per share of $1.97, up from $0.10 last year; adjusted diluted earnings per share1 of $2.10, up from $0.49

PR Newswire

CHICAGO, May 5, 2021 /PRNewswire/ — Jones Lang LaSalle Incorporated (NYSE: JLL) today reported operating performance for the first quarter of 2021.

Consolidated revenue was $4.0 billion and fee revenue¹ was $1.4 billion, decreases of 4% and 7%, respectively

Transaction-based service lines reflected improving economic conditions, highlighted by outstanding rebound in Asia Pacific
Property & Facility Management growth led by continued strength of Americas Corporate Solutions

Overall margin expansion included

Valuation increases to JLL Technologies’ strategic proptech investments
Year-over-year changes in loan loss credit reserves and the fair value of LaSalle’s co-investment portfolio
Cost mitigation benefits partially offsetting pandemic’s impact to revenue

Credit Facility maturity extended to 2026; sustainability commitments incorporated into Facility pricing

“Our strong first-quarter results demonstrated JLL’s commitment to delivering value to stakeholders across our global, scaled platform and reflected our investments in technology growth initiatives while prudently managing expenses,” said Christian Ulbrich, JLL CEO. “While the pandemic continues to cause global disruption, we are encouraged by promising economic signs that indicate 2021 can be a year of strong recovery. More than ever, ‘One JLL,’ which brings together all our global service capabilities, puts us at a competitive advantage as we advise our clients on transitioning to a post-pandemic environment.”

Summary Financial Results ($ in millions, except per share data, “LC” = local currency)	Three months Ended March 31,
	2021		2020		% Change in USD		% Change in LC

Revenue	$	4,037.1	$	4,096.0	(1)	%	(4)	%
Revenue before reimbursements	2,129.6		2,233.0		(5)		(8)
Fee revenue¹	1,442.7		1,505.2		(4)		(7)

Net income attributable to common shareholders	$	103.0	$	5.3	n.m.		n.m.
Adjusted net income attributable to common shareholders¹	109.7		25.8		n.m.		n.m.

Diluted earnings per share	$	1.97	$	0.10	n.m.		n.m.
Adjusted diluted earnings per share¹	2.10		0.49		n.m.		n.m.

Adjusted EBITDA¹	$	190.1	$	95.6	99	%	96	%
Adjusted EBITDA, Real Estate Services	169.2		120.1		41		39
Adjusted EBITDA, LaSalle	20.9		(24.4)		n.m.		n.m.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release.

n.m.: not meaningful, represented by a percentage change of greater than 100%, favorably or unfavorably.

Consolidated First-Quarter 2021 Performance Highlights:

Consolidated ($ in millions, “LC” = local currency)	Three Months Ended March 31,				% Change in USD		% Change in LC
Consolidated ($ in millions, “LC” = local currency)	2021		2020		% Change in USD		% Change in LC
Leasing	$	449.5	$	492.4	(9)	%	(10)	%
Capital Markets	320.4		342.3		(6)		(9)
Property & Facility Management	2,414.0		2,365.8		2		(1)
Project & Development Services	551.8		604.4		(9)		(12)
Advisory, Consulting and Other	210.2		186.2		13		8
Real Estate Services (“RES”) revenue	$	3,945.9	$	3,991.1	(1)	%	(4)	%
LaSalle	91.2		104.9		(13)		(16)
Total revenue	$	4,037.1	$	4,096.0	(1)	%	(4)	%
Reimbursements	(1,907.5)		(1,863.0)		2		—
Revenue before reimbursements	$	2,129.6	$	2,233.0	(5)	%	(8)	%
Gross contract costs¹	(677.2)		(729.4)		(7)		(11)
Net non-cash MSR and mortgage banking derivative activity	(9.7)		1.6		n.m.		n.m.
Total fee revenue¹	$	1,442.7	$	1,505.2	(4)	%	(7)	%
Leasing	429.5		475.2		(10)		(11)
Capital Markets	305.3		334.1		(9)		(11)
Property & Facility Management	304.7		279.9		9		5
Project & Development Services	170.1		188.3		(10)		(13)
Advisory, Consulting and Other	147.8		129.1		14		9
RES fee revenue	1,357.4		1,406.6		(3)		(6)
LaSalle	85.3		98.6		(13)		(17)
Operating income	$	80.7	$	64.6	25	%	23	%
Equity earnings (losses)	$	48.5	$	(28.3)	n.m.		n.m.
Adjusted EBITDA¹	$	190.1	$	95.6	99	%	96	%

n.m. – not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Consolidated Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

The continued impact of the COVID-19 pandemic (the “pandemic”) contributed to lower consolidated RES revenue and fee revenue, compared with the prior-year quarter, as strong growth in Asia Pacific was more than offset by declines in Americas and EMEA. Notably, the consolidated RES revenue decreases in transaction-based service lines were less than the trailing three quarters, with encouraging economic indicators present in many geographies. Corporate Solutions continued to deliver stable fee revenue performance as strength in facilities management offset a decrease in Project & Development Services.

Net income attributable to common shareholders was $103.0 million, compared with $5.3 million last year, and Adjusted EBITDA was $190.1 million, compared with $95.6 million in 2020. Diluted earnings per share were $1.97, up from $0.10 in 2020; adjusted diluted earnings per share were $2.10, compared with $0.49 last year. Notable drivers of year-over-year growth include the following;

A $12.0 million gain recognized on the sale of a business as part of a broader investment made in Roofstock, a marketplace for investing in the dynamic single-family rental sector. This strategic investment enables JLL to offer access to a sector that is increasingly in demand by investor clients. This gain on sale is excluded from adjusted measures.
$34.7 million from valuation increases to JLL Technologies’ investments, reflecting progress in the strategy to invest in early-stage proptech companies. Refer to the Americas segment highlights for additional detail.
LaSalle’s co-investment portfolio, which contributed $13.0 million of equity earnings in 2021 compared with equity losses of $40.3 million in 2020.
An $8.1 million non-cash reduction to loan loss credit reserves recognized in Americas results, compared with a $30.6 million increase in reserves during the prior-year quarter.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 13.2% in USD (13.4% in local currency), compared with 6.4% in 2020. The net margin expansion was primarily due to the year-over-year non-cash changes in loan loss credit reserves and LaSalle equity earnings discussed above. Remaining margin expansion was driven by JLL Technologies’ investments as well as strong contributions from Asia Pacific, partially offset by a decline in EMEA. Refer to the segment performance highlights for additional detail.

Cash Flows and Balance Sheet:

Cash used in operating activities was $461.8 million for the first quarter of 2021, compared with $546.1 million used in the prior year. The decrease in cash used was primarily due to less incentive compensation paid in 2021, compared with 2020, partially offset by lower collections of trade receivables, reflecting higher revenue in 2019 compared with 2020.

Total net debt was $670.3 million as of March 31, 2021, representing an increase of $478.2 million from December 31, 2020, and a decrease of $843.2 million from March 31, 2020. The increase from year end reflected typical seasonality, driven by annual incentive compensation payments made in the first quarter. The decline from March 31, 2020, was driven by substantial cash collections in 2020 as well as lower incentive compensation payments this year, compared with the prior-year quarter.

Americas First-Quarter 2021 Performance Highlights:

Americas Real Estate Services ($ in millions, “LC” = local currency)	Three Months Ended March 31,				% Change in USD		% Change in LC
	2021		2020		% Change in USD		% Change in LC
Revenue	$	2,443.9	$	2,523.1	(3)	%	(3)	%
Reimbursements	(1,385.7)		(1,393.5)		(1)		(1)
Revenue before reimbursements	$	1,058.2	$	1,129.6	(6)	%	(6)	%
Gross contract costs¹	(215.8)		(212.8)		1		2
Net non-cash MSR and mortgage banking derivative activity	(9.7)		1.6		n.m.		n.m.
Fee revenue¹	$	832.7	$	918.4	(9)	%	(9)	%
Leasing	351.4		405.6		(13)		(14)
Capital Markets	206.6		246.6		(16)		(16)
Property & Facility Management	146.5		128.7		14		14
Project & Development Services	81.3		93.4		(13)		(13)
Advisory, Consulting and Other	46.9		44.1		6		6
Equity earnings	$	34.5	$	12.7	n.m.		n.m.
Segment income	$	145.0	$	94.6	53	%	53	%
Adjusted EBITDA¹	$	169.0	$	121.3	39	%	39	%

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

The pandemic continued to negatively impact the Americas transaction-based service lines, although the decline in U.S. Leasing was notably less significant than recent quarters. Continued growth in industrial partially offset a decline in office leasing activity, however, U.S. office leasing again outperformed market gross absorption, which was down 45% according to JLL Research. Lower investment sales and debt placement activity drove the decline in Capital Markets revenue while the multifamily business continued to deliver stable revenue performance. Strong revenue and fee revenue growth in Property & Facility Management was attributable to new client wins and expansions of existing Corporate Solutions client relationships.

Equity earnings were entirely driven by valuation increases to JLL Technologies’ investments, as discussed in the Consolidated Performance Highlights, a reflection of subsequent financing rounds at increased per-share values for certain investments. In the prior year, equity earnings were largely attributable to gains by consolidated variable interest entities in which the company held no equity interest, and therefore, these gains had no net impact to Adjusted EBITDA.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 20.3% in USD and local currency, compared with 13.2% in 2020. The equity earnings noted above and year-over-year change in loan loss credit reserves substantially drove the margin expansion. The residual nominal margin improvement reflected savings from cost mitigation efforts during the trailing twelve months which offset the impact of lower revenue.

EMEA First-Quarter 2021 Performance Highlights:

EMEA Real Estate Services ($ in millions, “LC” = local currency)	Three Months Ended March 31,				% Change in USD		% Change in LC
	2021		2020		% Change in USD		% Change in LC
Revenue	$	716.2	$	755.9	(5)	%	(12)	%
Reimbursements	(153.4)		(182.8)		(16)		(23)
Revenue before reimbursements	$	562.8	$	573.1	(2)	%	(9)	%
Gross contract costs¹	(251.3)		(262.6)		(4)		(11)
Fee revenue¹	$	311.5	$	310.5	—	%	(7)	%
Leasing	50.3		47.0		7		(1)
Capital Markets	70.3		68.8		2		(5)
Property & Facility Management	77.0		77.9		(1)		(8)
Project & Development Services	59.2		66.1		(10)		(16)
Advisory, Consulting and Other	54.7		50.7		8		—
Equity earnings	$	—	$	—	n.m.		n.m.
Segment loss	$	(35.8)	$	(20.5)	75		69
Adjusted EBITDA¹	$	(24.8)	$	(10.6)	n.m.		n.m.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the EMEA Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

EMEA’s revenue and fee revenue in 2021 continued to be influenced by the pandemic, particularly on a local currency basis, compared with the prior-year quarter which had not yet been meaningfully impacted. Transaction-based revenues were largely stable as significant growth in certain geographies, highlighted by Switzerland, was offset by geographies that experienced more restrictive lock-down measures, such as Germany and the UK. Lower activity in the fit-out business and significant prior-year project activity in MENA that did not recur this quarter primarily drove the decline in Project & Development Services. A decrease in fee revenue from the UK mobile engineering business impacted Property & Facility Management.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was negative 8.0% in USD (negative 8.4% in local currency), compared with negative 3.4% last year. The decline in revenue as well as a contract loss in the UK mobile engineering business contributed to the lower margin performance, more than offsetting savings resulting from cost mitigation efforts during the trailing twelve months.

Asia Pacific First-Quarter 2021 Performance Highlights:

Asia Pacific Real Estate Services ($ in millions, “LC” = local currency)	Three Months Ended March 31,				% Change in USD		% Change in LC
	2021		2020		% Change in USD		% Change in LC
Revenue	$	785.8	$	712.1	10	%	3	%
Reimbursements	(366.9)		(284.9)		29		19
Revenue before reimbursements	$	418.9	$	427.2	(2)	%	(8)	%
Gross contract costs¹	(205.7)		(249.5)		(18)		(21)
Fee revenue¹	$	213.2	$	177.7	20	%	12	%
Leasing	27.8		22.6		23		16
Capital Markets	28.4		18.7		52		39
Property & Facility Management	81.2		73.3		11		4
Project & Development Services	29.6		28.8		3		(4)
Advisory, Consulting and Other	46.2		34.3		35		24
Equity earnings (losses)	$	1.0	$	(0.7)	n.m.		n.m.
Segment income	$	17.8	$	2.4	n.m.		n.m.
Adjusted EBITDA¹	$	25.0	$	9.4	n.m.		n.m.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Asia Pacific Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Asia Pacific’s double-digit fee revenue increase reflected an outstanding rebound in transaction-based revenue along with continued stability in Corporate Solutions. An increase in large-deal transactions, particularly in Singapore and Australia, drove revenue expansion in Capital Markets. Growth in Leasing was led by a pick-up in office volumes, especially in Greater China. Significant growth in Valuations Advisory, notably in Greater China and Australia, led Advisory, Consulting and Other.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 11.7% in USD (11.3% in local currency), compared with 5.3% in 2020. The significant margin expansion was attributable to growth in transaction-based revenue and savings resulting from cost mitigation efforts during the trailing twelve months.

LaSalle First-Quarter 2021 Performance Highlights:

LaSalle ($ in millions, “LC” = local currency)	Three Months Ended March 31,				% Change in USD		% Change in LC
LaSalle ($ in millions, “LC” = local currency)	2021		2020		% Change in USD		% Change in LC
Revenue	$	91.2	$	104.9	(13)	%	(16)	%
Reimbursements^(a)	(1.5)		(1.8)		(17)		(24)
Revenue before reimbursements	$	89.7	$	103.1	(13)	%	(16)	%
Gross contract costs^(a)	(4.4)		(4.5)		(2)		(3)
Fee revenue¹	$	85.3	$	98.6	(13)	%	(17)	%
Advisory fees^(a)	79.3		82.0		(3)		(8)
Transaction fees & other^(a)	6.0		10.9		(45)		(47)
Incentive fees	—		5.7		(100)		(100)
Equity earnings (losses)	$	13.0	$	(40.3)	n.m.		n.m.
Segment income (loss)	$	19.4	$	(26.1)	n.m.		n.m.
Adjusted EBITDA¹	$	20.9	$	(24.4)	n.m.		n.m.

(a) Gross contract costs are primarily within Advisory fees and Reimbursements are primarily within Other.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the LaSalle Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Lower LaSalle advisory fees were largely attributable to pandemic-driven valuation declines in assets under management over the trailing twelve months. Transaction and Incentive fees reflected decreased acquisition/transaction activity in 2021.

Equity earnings in the current quarter were substantially driven by increases to the estimated fair value of underlying real estate investments within LaSalle’s co-investment portfolio. In the prior year, equity losses were largely driven by the pandemic’s impact on real estate prices which drove lower estimated fair values within the portfolio.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 24.5% in USD (24.7% in local currency), compared with negative 24.8% last year. Margin improvement was attributable to the year-over-year change in equity earnings, partially offset by lower revenue.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.

Connect with us

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https://twitter.com/jll

Live Webcast	Conference Call
Management will offer a live webcast for shareholders, analysts and investment professionals on Wednesday, May 5, 2021, at 9:00 a.m. Eastern. Following the live broadcast, an audio replay will be available for download or stream. The link to the live webcast and audio replay can be accessed at the Investor Relations website: ir.jll.com.	Refer to ir.jll.com for a registration link to receive unique credentials to access the presentation of earnings via phone.

Supplemental Information	Contact
Supplemental information regarding the first quarter 2021 earnings call has been posted to the Investor Relations section of JLL’s website: ir.jll.com.	If you have any questions, please contact Chris Stent, Executive Managing Director of Investor Relations and Corporate Finance:
	Phone:	+1 312 252 8943
	E-mail:	[email protected]

Cautionary Note Regarding Forward-Looking Statements

Statements in this news release regarding, among other things, future financial results and performance, achievements, plans, objectives and shares repurchases may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to, the material adverse effect that the pandemic is having on JLL’s business, which may cause the company’s actual results, performance, achievements, plans, and objectives to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to the company’s business in general, please refer to those factors discussed under “Business,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures about Market Risk,” and elsewhere in the company’s Annual Report on Form 10-K for the year ended December 31, 2020, and other reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, management expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in expectations or results, or any change in events.

JONES LANG LASALLE INCORPORATED
Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
(in millions, except share and per share data)	2021		2020

Revenue before reimbursements	$	2,129.6	$	2,233.0
Reimbursements	1,907.5		1,863.0
Total Revenue	$	4,037.1	$	4,096.0

Operating expenses:
Compensation and benefits	$	1,334.4	$	1,324.5
Operating, administrative and other	644.3		774.8
Reimbursed expenses	1,907.5		1,863.0
Depreciation and amortization	53.0		55.0
Restructuring and acquisition charges³	17.2		14.1
Total operating expenses	3,956.4		4,031.4

Operating income	80.7		64.6

Interest expense, net of interest income	10.4		14.6
Equity earnings (losses)	48.5		(28.3)
Other income	11.8		0.9

Income before income taxes and noncontrolling interest	130.6		22.6
Income tax provision	28.2		5.0
Net income	102.4		17.6

Net (loss) income attributable to noncontrolling interest	(0.6)		12.3

Net income attributable to common shareholders	$	103.0	$	5.3

Basic earnings per common share	$	2.01	$	0.10
Basic weighted average shares outstanding (in 000’s)	51,173		51,612

Diluted earnings per common share	$	1.97	$	0.10
Diluted weighted average shares outstanding (in 000’s)	52,175		52,458


Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited)

	Three Months Ended March 31,
(in millions)	2021		2020
AMERICAS – REAL ESTATE SERVICES
Compensation, operating and administrative expenses	$	914.6	$	1,010.3
Depreciation and amortization	33.1		37.4
Total segment operating expenses, excluding reimbursed	947.7		1,047.7
Gross contract costs¹	(215.8)		(212.8)
Total fee-based segment operating expenses	$	731.9	$	834.9

Segment operating income	$	110.5	$	81.9
Equity earnings	34.5		12.7
Total segment income	145.0		94.6
Add:
Depreciation and amortization	33.1		37.4
Other income	12.0		—
Net (income) loss attributable to noncontrolling interest	0.6		(12.3)
Adjustments:
Net non-cash MSR and mortgage banking derivative activity	(9.7)		1.6
Gain on disposal	(12.0)		—
Adjusted EBITDA¹	$	169.0	$	121.3

EMEA – REAL ESTATE SERVICES
Compensation, operating and administrative expenses	$	587.7	$	584.4
Depreciation and amortization	10.9		9.2
Total segment operating expenses, excluding reimbursed	598.6		593.6
Gross contract costs¹	(251.3)		(262.6)
Total fee-based segment operating expenses	$	347.3	$	331.0

Segment operating loss	$	(35.8)	$	(20.5)
Equity earnings	—		—
Total segment loss	(35.8)		(20.5)
Add:
Depreciation and amortization	10.9		9.2
Other income	0.1		0.8
Net income attributable to noncontrolling interest	—		(0.1)
Adjusted EBITDA¹	$	(24.8)	$	(10.6)

JONES LANG LASALLE INCORPORATED
Selected Segment Financial Data (Unaudited) Continued

	Three Months Ended March 31,
(in millions)	2021		2020
ASIA PACIFIC – REAL ESTATE SERVICES
Compensation, operating and administrative expenses	$	394.8	$	417.5
Depreciation and amortization	7.3		6.6
Total segment operating expenses, excluding reimbursed	402.1		424.1
Gross contract costs¹	(205.7)		(249.5)
Total fee-based segment operating expenses	$	196.4	$	174.6

Segment operating income	$	16.8	$	3.1
Equity earnings (losses)	1.0		(0.7)
Total segment income	17.8		2.4
Add:
Depreciation and amortization	7.3		6.6
Other (expense) income	(0.1)		0.4
Adjusted EBITDA¹	$	25.0	$	9.4

LASALLE
Compensation, operating and administrative expenses	$	81.6	$	87.1
Depreciation and amortization	1.7		1.8
Total segment operating expenses, excluding reimbursed	83.3		88.9
Gross contract costs¹	(4.4)		(4.5)
Total fee-based segment operating expenses	$	78.9	$	84.4

Segment operating income	$	6.4	$	14.2
Equity earnings (losses)	13.0		(40.3)
Total segment income (loss)	19.4		(26.1)
Add:
Depreciation and amortization	1.7		1.8
Other expense	(0.2)		(0.1)
Adjusted EBITDA¹	$	20.9	$	(24.4)

JONES LANG LASALLE INCORPORATED
Summarized Consolidated Statements of Cash Flows (Unaudited)
	Three Months Ended March 31,
(in millions)	2021		2020

Cash used in operating activities	$	(461.8)	$	(546.1)

Cash used in investing activities	(97.8)		(90.5)

Cash provided by financing activities	376.7		883.3

Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	(12.4)		(21.1)

Net change in cash, cash equivalents and restricted cash	$	(195.3)	$	225.6

Cash, cash equivalents and restricted cash, beginning of year	839.8		652.1

Cash, cash equivalents and restricted cash, end of period	$	644.5	$	877.7

Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

March 31,

December 31,

March 31,

December 31,

(in millions, except share and per share data)

2021

2020

2021

2020

ASSETS

(Unaudited)

LIABILITIES AND EQUITY

(Unaudited)

Current assets:

Current liabilities:

Cash and cash equivalents

456.6

574.3

Accounts payable and accrued liabilities

1,108.7

1,229.8

Trade receivables, net of allowance

1,477.4

1,636.1

Reimbursable payables

1,016.6

1,154.5

Notes and other receivables

399.9

469.9

Accrued compensation & benefits

1,031.4

1,433.2

Reimbursable receivables

1,430.1

1,461.3

Short-term borrowings

90.6

62.0

Warehouse receivables

832.1

1,529.2

Short-term contract liability and deferred income

181.0

192.9

Short-term contract assets, net of allowance

264.7

265.8

Short-term acquisition-related obligations

72.4

91.7

Prepaid and other

412.9

517.1

Warehouse facilities

833.5

1,498.4

Total current assets

5,273.7

6,453.7

Short-term operating lease liability

159.1

165.7

Property and equipment, net of accumulated depreciation

682.0

663.9

Other

198.5

299.6

Operating lease right-of-use asset

706.5

707.4

Total current liabilities

4,691.8

6,127.8

Goodwill

4,201.7

4,224.7

Noncurrent liabilities:

Identified intangibles, net of accumulated amortization

687.0

679.8

Credit facility, net of debt issuance costs ^(a)

342.3

(8.7)

Investments in real estate ventures

545.1

430.8

Long-term debt, net of debt issuance costs

684.0

702.0

Long-term receivables

249.7

231.1

Long-term deferred tax liabilities, net

114.6

120.0

Deferred tax assets, net

293.9

296.5

Deferred compensation

461.8

450.0

Deferred compensation plans

480.2

446.3

Long-term acquisition-related obligations

22.7

26.2

Other

186.6

182.3

Long-term operating lease liability

692.4

683.9

Total assets

13,306.4

14,316.5

Other

582.1

597.5

Total liabilities

7,591.7

8,698.7

Redeemable noncontrolling interest

7.8

7.8

Company shareholders’ equity:

Common stock

0.5

0.5

Additional paid-in capital

2,015.5

2,023.3

Retained earnings

4,078.9

3,975.9

Treasury stock

(85.7)

(96.1)

Shares held in trust

(5.4)

(5.6)

Accumulated other comprehensive loss

(383.6)

(377.2)

Total company shareholders’ equity

5,620.2

5,520.8

Noncontrolling interest

86.7

89.2

Total equity

5,706.9

5,610.0

Total liabilities and equity

13,306.4

14,316.5

Please reference accompanying financial statement notes.

^(a) As there was no outstanding balance on the Credit facility as of December 31, 2020, the negative liability reflected unamortized debt issuance costs.

JONES LANG LASALLE INCORPORATED

Financial Statement Notes

1. Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following:

(i) Fee revenue and Fee-based operating expenses,

(ii) Adjusted EBITDA attributable to common shareholders (“Adjusted EBITDA”) and Adjusted EBITDA margin,

(iii) Adjusted net income attributable to common shareholders and Adjusted diluted earnings per share, and

(iv) Percentage changes against prior periods, presented on a local currency basis.

However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with U.S. generally accepted accounting principles (“GAAP”). Any measure that eliminates components of a company’s capital structure, cost of operations or investments, or other results has limitations as a performance measure. In light of these limitations, management also considers GAAP financial measures and does not rely solely on non-GAAP financial measures. Because the company’s non-GAAP financial measures are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures used by other companies.

Adjustments to GAAP Financial Measures Used to Calculate non-GAAP Financial Measures

Gross Contract Costs
represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses with the equal amount of corresponding fees in Revenue before reimbursements. Consistent with the treatment of directly reimbursed expenses, excluding gross contract costs from both Fee revenue and Fee-based operating expenses more accurately reflects how the company manages its expense base and operating margins and also enables a more consistent performance assessment across a portfolio of contracts with varying payment terms and structures, including those with direct versus indirect reimbursement of such costs.

Net Non-Cash Mortgage Servicing Rights (“MSR”) and Mortgage Banking Derivative Activity
consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets service line of the Americas segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how the company manages and evaluates performance because the excluded activity is non-cash in nature.

Restructuring and Acquisition Charges
primarily consist of: (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore not a line item in the segments’ reconciliation to Adjusted EBITDA.

Amortization of Acquisition-Related Intangibles
, primarily composed of the estimated fair value ascribed at closing of an acquisition to assets such as acquired management contracts, customer backlog and relationships, and trade name, is more notable following the company’s increase in acquisition activity in recent years. Such non-cash activity is excluded as the change in period-over-period activity is generally the result of longer-term strategic decisions and therefore not necessarily indicative of core operating results.

Gain on Disposition
reflects the gain recognized on the sale of a business within Americas. Given the low frequency of business disposals by the company historically, the gain directly associated with such activity is excluded as it is not considered indicative of core operating performance.

Reconciliation of Non-GAAP Financial Measures

Below are reconciliations of (i) Revenue to Fee revenue and (ii) Operating expenses to Fee-based operating expenses:

	Three months Ended March 31,
($ in millions)	2021		2020

Revenue	$	4,037.1	$	4,096.0
Reimbursements	(1,907.5)		(1,863.0)
Revenue before reimbursements	2,129.6		2,233.0
Gross contract costs	(677.2)		(729.4)
Net non-cash MSR and mortgage banking derivative activity	(9.7)		1.6
Fee revenue	$	1,442.7	$	1,505.2

Operating expenses	$	3,956.4	$	4,031.4
Reimbursed expenses	(1,907.5)		(1,863.0)
Gross contract costs	(677.2)		(729.4)
Fee-based operating expenses	$	1,371.7	$	1,439.0

Below is (i) a reconciliation of Net income attributable to common shareholders to EBITDA and Adjusted EBITDA, (ii) the Net income margin attributable to common shareholders (against Revenue before reimbursements), and (iii) the Adjusted EBITDA margin (presented on a local currency and on a fee-revenue basis). Following this is the (i) reconciliation to adjusted net income and (ii) components of adjusted diluted earnings per share.

	Three months Ended March 31,
($ in millions)	2021			2020

Net income attributable to common shareholders	$	103.0		$	5.3
Add:
Interest expense, net of interest income	10.4			14.6
Provision for income taxes	28.2			5.0
Depreciation and amortization	53.0			55.0
EBITDA	$	194.6		$	79.9
Adjustments:
Restructuring and acquisition charges³	17.2			14.1
Gain on disposition	(12.0)			—
Net non-cash MSR and mortgage banking derivative activity	(9.7)			1.6
Adjusted EBITDA	$	190.1		$	95.6
Net income margin attributable to common shareholders	4.8		%	0.2		%
Adjusted EBITDA margin	13.4		%	6.4		%

	Three months Ended March 31,
(In millions, except share and per share data)	2021		2020

Net income attributable to common shareholders	$	103.0	$	5.3
Diluted shares (in thousands)	52,175		52,458
Diluted earnings per share	$	1.97	$	0.10

Net income attributable to common shareholders	$	103.0	$	5.3
Adjustments:
Restructuring and acquisition charges³	17.2		14.1
Net non-cash MSR and mortgage banking derivative activity	(9.7)		1.6
Amortization of acquisition-related intangibles	13.0		14.5
Gain on disposition	(12.0)		—
Tax impact of adjusted items^(a)	(1.8)		(9.7)
Adjusted net income attributable to common shareholders	$	109.7	$	25.8
Diluted shares (in thousands)	52,175		52,458
Adjusted diluted earnings per share	$	2.10	$	0.49


(a)	For the first quarter of 2021, the tax impact of adjusted items was calculated using the consolidated effective tax rate as this was deemed to approximate the tax impact of adjusted items calculated using applicable statutory tax rates. The tax impact of adjusted items for the first quarter of 2020 was calculated using the applicable statutory rates by tax jurisdiction.

Operating Results – Local Currency

In discussing operating results, the company reports Adjusted EBITDA margins and refers to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. Management believes this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations.

The following table reflects the reconciliation to local currency amounts for consolidated (i) revenue, (ii) fee revenue, (iii) operating income and (iv) Adjusted EBITDA.

	Three Months Ended March 31,
($ in millions)	2021		% Change
Revenue:
At current period exchange rates	$	4,037.1	(1)	%
Impact of change in exchange rates	(110.2)		n/a
At comparative period exchange rates	$	3,926.9	(4)	%

Fee revenue:
At current period exchange rates	$	1,442.7	(4)	%
Impact of change in exchange rates	(40.5)		n/a
At comparative period exchange rates	$	1,402.2	(7)	%

Operating income:
At current period exchange rates	$	80.7	25	%
Impact of change in exchange rates	(1.3)		n/a
At comparative period exchange rates	$	79.4	23	%

Adjusted EBITDA:
At current period exchange rates	$	190.1	99	%
Impact of change in exchange rates	(2.6)		n/a
At comparative period exchange rates	$	187.5	96	%

2. Each geographic segment offers the company’s full range of RES businesses consisting primarily of (i) tenant representation and agency leasing, (ii) capital markets, (iii) property management and facilities management, (iv) project and development services, and (v) advisory, consulting and valuations services. LaSalle provides investment management services to institutional investors and high-net-worth individuals.

3. Restructuring and acquisition charges are excluded from the company’s measure of segment operating results, although they are included within consolidated Operating income calculated in accordance with GAAP. For purposes of segment operating results, the allocation of restructuring and acquisition charges to the segments is not a component of management’s assessment of segment performance.

The table below shows restructuring and acquisition charges, including the portion related to the acquisition and integration of HFF (retention and severance expense, early lease termination costs, and other integration expenses).

	Three Months Ended March 31,
(in millions)	2021		2020
Severance and other employment-related charges	$	1.8	$	1.3
Restructuring, pre-acquisition and post-acquisition charges	15.5		21.0
Fair value adjustments that resulted in a net decrease to earn-out liabilities from prior-period acquisition activity	(0.1)		(8.2)
Total restructuring & acquisition charges	$	17.2	$	14.1
Portion of total restructuring & acquisition charges related to the acquisition and integration of HFF	$	11.5	$	21.3

4. The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the company’s Form 10-Q for the three months ended March 31, 2021, to be filed with the SEC in the near future.

5. As of March 31, 2021, LaSalle had $70.9 billion of real estate assets under management (AUM), composed of $36.3 billion invested in separate accounts, $30.0 billion invested in fund management vehicles and $4.6 billion invested in public securities. The geographic distribution of separate accounts and fund management investments was $22.2 billion in North America, $13.5 billion in the UK, $11.8 billion in Asia Pacific and $13.1 billion in continental Europe. The remaining $5.7 billion relates to Global Partner Solutions which is a global business line.

AUM increased 3% in USD (0% in local currency) from $68.9 billion as of December 31, 2021. The AUM increase resulted from (i) $1.9 billion of foreign currency increases, (ii) $1.1 billion of acquisitions, and (iii) $0.9 billion of net valuation increases, partially offset by $1.9 billion dispositions and withdrawals.

Assets under management data for separate accounts and fund management amounts are reported on a one-quarter lag. In addition, LaSalle raised $1.0 billion in private equity capital for the quarter ended March 31, 2021.

LaSalle’s results for the three months ended March 31, 2021, included approximately $4 million of deferred compensation expense associated with the run-off of a previous compensation program.

6. EMEA: Europe, Middle East and Africa. MENA: Middle East and North Africa. Greater China: China, Hong Kong, Macau and Taiwan.

7. n.m.: “not meaningful”, represented by a percentage change of greater than 100%, favorably or unfavorably.

Appendix: Revenue, Revenue before Reimbursements and Fee Revenue by Service Line

	Three months Ended March 31, 2021						Three months Ended March 31, 2020
(in millions)	Americas		EMEA	Asia Pacific	Total		Americas		EMEA	Asia Pacific	Total
Revenue
Leasing	$	363.7	54.4	31.4	$	449.5	$	418.9	48.1	25.4	$	492.4
Capital Markets	216.9		74.2	29.3	320.4		247.4		73.2	21.7	342.3
Property & Facility Management	1,494.8		344.1	575.1	2,414.0		1,458.8		375.0	532.0	2,365.8
Project & Development Services	269.8		183.7	98.3	551.8		306.4		203.2	94.8	604.4
Advisory, Consulting and Other	98.7		59.8	51.7	210.2		91.6		56.4	38.2	186.2
RES revenue	$	2,443.9	716.2	785.8	$	3,945.9	$	2,523.1	755.9	712.1	$	3,991.1
LaSalle					91.2						104.9
Consolidated revenue					$	4,037.1					$	4,096.0

Revenue before reimbursements
Leasing	$	359.9	54.4	31.4	$	445.7	$	414.9	48.0	25.4	$	488.3
Capital Markets	217.2		74.1	28.7	320.0		246.0		73.1	20.5	339.6
Property & Facility Management	294.5		213.8	239.8	748.1		267.9		210.6	266.1	744.6
Project & Development Services	106.1		161.5	68.3	335.9		121.3		186.0	77.3	384.6
Advisory, Consulting and Other	80.5		59.0	50.7	190.2		79.5		55.5	37.9	172.9
RES revenue before reimbursements	$	1,058.2	562.8	418.9	$	2,039.9	$	1,129.6	573.1	427.2	$	2,130.0
LaSalle					89.7						103.1
Consolidated revenue before reimbursements					$	2,129.6					$	2,233.0

Fee revenue
Leasing	$	351.4	50.3	27.8	$	429.5	$	405.6	47.0	22.6	$	475.2
Capital Markets	206.6		70.3	28.4	305.3		246.6		68.8	18.7	334.1
Property & Facility Management	146.5		77.0	81.2	304.7		128.7		77.9	73.3	279.9
Project & Development Services	81.3		59.2	29.6	170.1		93.4		66.1	28.8	188.3
Advisory, Consulting and Other	46.9		54.7	46.2	147.8		44.1		50.7	34.3	129.1
RES fee revenue	$	832.7	311.5	213.2	$	1,357.4	$	918.4	310.5	177.7	$	1,406.6
LaSalle					85.3						98.6
Consolidated fee revenue					$	1,442.7					$	1,505.2

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SOURCE JLL-IR

May 5, 2021 7:34 am

Applied Materials Introduces Materials Engineering Solutions for DRAM Scaling

New Draco™ hard mask material co-optimized with Sym3
^®
Y etcher to accelerate DRAM capacitor scaling
DRAM makers adopting Black Diamond
^®
, the low-k dielectric material pioneered by Applied Materials to overcome interconnect scaling challenges in logic
High-k metal gate transistors now being introduced in advanced DRAM designs to boost performance and reduce power while shrinking the periphery logic to improve area and cost

SANTA CLARA, Calif., May 05, 2021 (GLOBE NEWSWIRE) — Applied Materials, Inc. today announced materials engineering solutions that give its memory customers three new ways to further scale DRAM and accelerate improvements in chip performance, power, area, cost and time to market (PPACt).

The digital transformation of the global economy is generating record demand for DRAM. The Internet of Things is creating hundreds of billions of new computing devices at the edge which are driving an exponential increase in data transmitted to the cloud for processing. The industry urgently needs breakthroughs that can allow DRAM to scale to reduce area and cost while also operating at higher speeds and using less power.

Applied Materials is working with DRAM customers to commercialize three materials engineering solutions that create new ways to shrink as well as improve performance and power. The solutions target three areas of DRAM chips: storage capacitors, interconnect wiring and logic transistors. They are now ramping into high volume and are expected to significantly increase Applied’s DRAM revenue over the next several years.

Introducing Draco™ Hard Mask for Capacitor Scaling

Since over 55 percent of a DRAM chip’s die area is occupied by the memory arrays, increasing the density of these cells is the biggest lever for reducing cost per bit. Data is stored as charges in cylindrical, vertically arranged capacitors that need as much surface area as possible to hold adequate numbers of electrons. As DRAM makers narrow the capacitors, they also elongate them to maximize surface area. A new technology challenge to DRAM scaling has emerged: the etching of the deep capacitor holes threatens to exceed the limits of the “hard mask” material that acts as a stencil to determine where each cylinder is placed. If the hard mask is etched through, the pattern is ruined. Taller hard masks are not viable because as the combined depth of the hard masks and capacitor holes exceeds certain limits, etch byproducts remain and cause bending, twisting and uneven depths.

The solution is Draco™, a new hard mask material that has been co-optimized to work with Applied’s Sym3^® Y etch system in a process monitored by Applied’s PROVision^® eBeam metrology and inspection system that can take nearly half a million measurements per hour. The Draco hard mask increases etch selectivity by more than 30 percent which enables a shorter mask. Draco hard mask and Sym3 Y co-optimization includes advanced RF pulsing which synchronizes etching with byproduct removal to enable patterning holes that are perfectly cylindrical, straight and uniform. The PROVision eBeam system gives customers massive, immediate actionable data on hard mask critical dimension uniformity which is the key to capacitor uniformity. Applied’s solution provides customers with a 50-percent improvement in local critical dimension uniformity and reduces bridge defects by 100X, thus increasing yields.

“The best way to quickly solve materials engineering challenges with our customers is to co-optimize adjacent steps and use massive measurements and AI to optimize process variables,” said Dr. Raman Achutharaman, group vice president, Semiconductor Products Group at Applied Materials.

Bringing Black Diamond

^®

Low-k Dielectric to the DRAM Market

A second key lever of DRAM scaling is reducing the die area needed by the interconnect wiring that routes signals to and from the memory arrays. Each of the metal lines is surrounded by an insulating dielectric material to prevent interference between data signals. For the past 25 years, DRAM makers have used one of two silicon oxides – silane and tetraethoxysilane (TEOS) – as the dielectric material. Continual thinning of the dielectric layers has reduced DRAM die sizes but created a new technology challenge: the dielectrics are now too thin to prevent capacitive coupling in the metal lines whereby signals interfere with one another causing higher power consumption, slower performance, increased heat and reliability risks.

The solution is Black Diamond^®, a low-k dielectric material first used in advanced logic. With DRAM designs now experiencing similar scaling challenges, Applied is adapting Black Diamond to the DRAM market and making it available on the highly productive Producer^® GT platform. Black Diamond for DRAM enables smaller, more compact interconnect wires that can move signals through the chips at multi-gigahertz speeds without interference and at lower power consumption.

High-k Metal Gate Transistors Bring PPAC Improvements to DRAM

A third key lever of DRAM scaling is improving the performance, power, area and cost of the transistors used in the periphery logic of the chip to help drive the input-output (I/O) operations needed in high-performance DRAM like those based on the new DDR5 specification.

Until today, DRAM used transistors based on polysilicon-oxide which were phased out in foundry-logic by the 28-nanometer node because extreme thinning of the gate dielectric allowed electrons to leak, thereby wasting power and limiting performance. Logic makers adopted high-k metal gate (HKMG) transistors, replacing the polysilicon with a metal gate and the dielectric with hafnium oxide, a material that improves gate capacitance, leakage and performance. Now memory makers are designing HKMG transistors into advanced DRAM designs to improve performance, power, area and cost. In DRAM as in logic, HKMG will increasingly replace polysilicon transistors over time.

This technology inflection in DRAM creates growth opportunities for Applied Materials. The more complex and delicate HKMG materials stack is challenging to manufacture, and in-vacuum processing of adjacent steps using Applied’s Endura^® Avenir™ RFPVD system has become the industry’s preferred solution. HKMG transistors also benefit from Applied’s epitaxial deposition technologies such as Centura^® RP Epi along with film treatments including RadOx™ RTP, Radiance^® RTP and DPN which are used to fine-tune the transistor characteristics for optimum performance.

“Draco hard mask and Black Diamond low-k dielectric are being adopted by leading DRAM customers, and the first HKMG DRAMs are now being introduced,” added Dr. Achutharaman. “Applied Materials projects billions of dollars in revenue growth as these DRAM inflections play out over the next several years.”

Additional information about the growth outlook for these technologies is being provided at Applied’s 2021 Memory Master Class being held later today. For more information, please visit the investor page of our website at https://ir.appliedmaterials.com.

Forward-Looking Statements

This release contains forward-looking statements, including those regarding anticipated growth and trends in our revenues, businesses and markets, industry outlooks and demand drivers, technology transitions, new products and technologies, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements are described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible the technology shaping the future. Learn more at www.appliedmaterials.com.

Contact:

Ricky Gradwohl (editorial/media) 408.235.4676
Michael Sullivan (financial community) 408.986.7977

Photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7f8f3e74-0805-4334-937e-ac39f4dcceb7

The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress.

May 5, 2021 7:34 am

Amerigo Reports Strong Net Income & Operating Cash Flow in Q1-2021

(Amounts in U.S. dollars except indicated otherwise)

VANCOUVER, British Columbia, May 05, 2021 (GLOBE NEWSWIRE) — Amerigo Resources Ltd. (TSX: ARG; ARREF:OTC) (“Amerigo” or the “Company”) is pleased to announce financial results for the three months ended March 31, 2021 (“Q1-2021”).

Amerigo posted net income of $10.9 million, earnings per share (“EPS”) of $0.06, EBITDA¹of $23.3 million and quarterly operating cash flow before changes in working capital of $20.0 million.

“We are pleased to report again strong operational and financial results at Amerigo Resources. At an average quarterly copper price of $4.08 per pound, the Company generated $20.0 million in operating cash flow, improving its ending cash position to $38.6 million while continuing to reduce debt. As of the date of this news release, the Company’s cash position now exceeds total debt outstanding”, said Aurora Davidson, Amerigo’s President and CEO.

The information and data contained in this news release should be read in conjunction with Amerigo’s interim consolidated financial statements and Management’s Discussion and Analysis (“MD&A) for the quarter ended March 31, 2021, available at the Company’s website at www.amerigoresources.com and at www.sedar.com.


	31-Mar-21	31-Dec-20	Q1-2021	Q1-2020
Revenue ($ millions)			48.9	15.6
Net income (loss) ($ millions)			10.9	(4.0)
EPS (LPS) ($)			0.06	(0.02)
EBITDA¹ ($ millions)			23.3	(4.2)
Operating cash flow before changes in working capital ($ millions)			20.0	(4.1)
Cash and cash equivalents ($ millions)	38.6	14.1
Bank debt ($ millions)	41.5	46.5

Highlights and Significant Items

Q1-2021 net income was $10.9 million (Q1-2020: net loss of $4.0 million), due to higher production, higher metal prices and $5.0 million in positive fair value adjustments to Q4-2020 copper receivables.
Q1-2021 EPS was $0.06 (Q1-2020: loss per share (“LPS”) of $0.02).
The Company generated quarterly operating cash flow before changes in non-cash working capital of $20.0 million (Q1-2020: negative operating cash flow $4.1 million). Q1-2021 net operating cash flow was $28.1 million (Q1-2020: negative net operating cash flow of $1.4 million).

Q1-2021 production from Amerigo’s Minera Valle Central (“MVC”) tailings processing facility in Chile was 15.5 million pounds of copper (Q1-2020: 12.1 million pounds) including 8.5 million pounds from Cauquenes (Q1-2020: 5.7 million pounds) and 7.0 million pounds from fresh tailings (Q1-2020: 5.1 million pounds). In Q1-2020, 1.2 million pounds of copper were produced from slag processing.
Molybdenum production during Q1-2021 was 0.4 million pounds (Q1-2020: 0.2 million pounds).
Q1-2021 cash cost² (a non-GAAP measure equal to the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits, decreased 3% to $1.88 per pound (“/lb”) (Q1-2020: $1.94/lb).
In Q1-2021, MVC’s average quarterly copper price was $4.08/lb, 74% higher than the Q1-2020 average quarterly copper price of $2.35/lb. MVC’s average quarterly molybdenum price was $10.88/lb, 18% higher than the Q1-2020 average quarterly price of $9.20/lb.
Revenue during Q1-2021 was $48.9 million (Q1-2020: $15.6 million), including copper tolling revenue of $45.4 million (Q1-2020: $13.3 million) and molybdenum revenue of $3.5 million (Q1-2020: $1.7 million). In Q1-2020 slag processing revenue was $0.7 million.
Copper tolling revenue is calculated from MVC’s gross value of copper produced during Q1-2021 of $58.1 million (Q1-2020: $27.2 million) and fair value adjustments to settlement receivables of $8.5 million (Q1-2020: (negative $5.3 million)), less notional items including DET royalties of $16.0 million (Q1-2020: $5.2 million), smelting and refining of $4.7 million (Q1-2020: $3.0 million) and transportation of $0.5 million (Q1-2020: $0.3 million). The Q1-2021 settlement adjustments included $5.0 million in settlement adjustments in respect of Q4-2020 production, which are final adjustments.
MVC’s financial performance is very sensitive to changes in copper prices. MVC’s Q1-2021 provisional copper price was $4.08/lb, and final prices for January, February, and March sales will be the average London Metal Exchange (“LME”) prices for April, May, and June respectively. A 10% increase or decrease from the $4.08/lb provisional price used at March 31, 2021 would result in a $6.2 million change in revenue in Q2-2021 in respect of Q1-2021 production.
At March 31, 2021, the Company’s cash balance was $38.6 million (December 31, 2020: $14.1 million) and the Company had working capital of $11.5 million (December 31, 2020: working capital deficiency of $6.1 million).
In Q1-2021, the Company received $3.9 million in proceeds from the sale of investments.
In Q1-2021, the Company made scheduled debt payments of $6.5 million (Q1-2020: $4.7 million) and paid $0.6 million for plant and equipment (Q1-2020: $0.5 million). MVC’s debt balance with banks at March 31, 2021 was $41.5 million.

Summary Consolidated Statements of Financial Position
	March 31,	December 31,
	2021	2020
	$ thousands	$ thousands
Cash and cash equivalents	38,643	14,085
Property plant and equipment	181,090	184,805
Other assets	29,751	38,685

Total assets	249,484	237,575

Total liabilities	128,664	126,893
Shareholders’ equity	120,820	110,682
Total liabilities and shareholders’ equity	249,484	237,575

Summary Consolidated Statements of Income and Comprehensive Income
	Q1-2021	Q1-2020
	$ thousands	$ thousands
Revenue	48,907	15,638
Tolling and production costs	(30,029)	(24,569)
Other (expenses) gains	(2,837)	4,036
Finance expense	(856)	(2,833)
Income tax (expense) recovery	(4,260)	3,699
Net income (loss)	10,925	(4,029 )
Other comprehensive income	(699)	(623)
Comprehensive income (loss)	10,226	(4,652)

Earnings (loss) per share – basic & diluted	0.06	(0.02)

Summary Consolidated Statements of Cash Flows
	Q1-2021	Q1-2020
	$ thousands	$ thousands
Cash flows from (used in) operating activities	20,040	(4,132)
Changes in non-cash working capital	8,096	2,754
Net cash from (used in) operating activities	28,136	(1,378)
Net cash received from (used in) investing activities	3,289	(393)
Net cash used in financing activities	(6,892)	(4,779)
Net increase (decrease) in cash	24,533	(6,550)
Effect of foreign exchange rates on cash	25	(42)
Cash and cash equivalents, beginning of period	14,085	7,164
Cash and cash equivalents, end of period	38,643	572

Investor Conference Call on May 6, 2021

Amerigo’s quarterly investor conference call will take place on Thursday, May 6, 2021 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

To join the call, please dial 1-888-664-6392 (Toll-Free North America) and enter confirmation number 84376564 to participate in the Amerigo Resources conference call.

The analyst and investment community are welcome to ask questions to management. Media can attend on a listen-only basis.

About Amerigo and MVC

Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile (“Codelco”), the world’s largest copper producer.

Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.

The information and data contained in this news release should be read in conjunction with Amerigo’s Condensed Interim Consolidated Financial Statements (unaudited) and MD&A for the three months ended March 31, 2021 and the Audited Consolidated Financial Statements and MD&A for the year ended December 31, 2020, available at the Company’s website at www.amerigoresources.com and at www.sedar.com.

For further information, please contact:

Aurora Davidson	Graham Farrell
President and CEO	Investor Relations
(604) 697 6207	(416) 842-9003
[email protected]	[email protected]

Alternative Performance Measures

Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this news release because they provide key performance measures used by management to monitor performance, assess corporate performance, and to plan and assess the overall effectiveness and efficiency of Amerigo’s operations. These performance measures do not have any standardized meaning within IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

Cautionary Statement on Forward-Looking Information

This news release contains certain forward-looking information and statements as defined in applicable securities laws (collectively referred to as “forward-looking statements”). These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These forward-looking statements include but are not limited to, statements concerning:

forecasted production, reductions in operating costs and an increase in recoveries;
our strategies and objectives;
our estimates of the availability and quantity of tailings, and the quality of our mine plan estimates;
prices and price volatility for copper and other commodities and of materials we use in our operations;
the demand for and supply of copper and other commodities and materials that we produce, sell and use;
sensitivity of our financial results and share price to changes in commodity prices;
our projection of being in net cash positive territory by the end of Q2-2021;
our financial resources and our expected ability to meet our obligations for the next 12 months;
interest and other expenses;
domestic and foreign laws affecting our operations;
our tax position and the tax rates applicable to us;
our ability to comply with our loan covenants;
the production capacity of our operations, our planned production levels and future production;
potential impact of production and transportation disruptions;
hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage, claims by third parties and suspension of operations
estimates of asset retirement obligations and other costs related to environmental protection;
our future capital and production costs, including the costs and potential impact of complying with existing and proposed environmental laws and regulations in the operation and closure of our operations;
repudiation, nullification, modification or renegotiation of contracts;
our financial and operating objectives;
our environmental, health and safety initiatives;
the outcome of legal proceedings and other disputes in which we may be involved;
the outcome of negotiations concerning metal sales, treatment charges and royalties;
disruptions to the Company’s information technology systems, including those related to cybersecurity;
our dividend policy; and
general business and economic conditions.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions, process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns, including COVID-19, and the inability of employees to access sufficient healthcare; government or regulatory actions or inactions; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco’s Division El Teniente’s current production and historic tailings from tailings deposits; risks with respect to the ability of the Company to draw down funds from bank facilities and lines of credit and the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Notwithstanding the efforts of the Company and MVC, there can be no guarantee that the Company’s or MVC’s staff will not contract COVID-19 or that the Company’s and MVC’s measures to protect staff from COVID-19 will be effective. Many of these risks and uncertainties apply not only to the Company and its operations, but also to Codelco and its operations. Codelco’s ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production, therefore these risks and uncertainties may also affect their operations and in turn have a material effect on the Company.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about:

general business and economic conditions;
interest rates;
changes in commodity and power prices;
acts of foreign governments and the outcome of legal proceedings;
the supply and demand for, deliveries of, and the level and volatility of prices of copper and other commodities and products used in our operations;
the ongoing supply of material for processing from Codelco’s current mining operations;
the ability of the Company to profitably extract and process material from the Cauquenes tailings deposit;
the timing of the receipt of and retention of permits and other regulatory and governmental approvals;
our costs of production and our production and productivity levels, as well as those of our competitors;
changes in credit market conditions and conditions in financial markets generally;
our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis;
the availability of qualified employees and contractors for our operations;
our ability to attract and retain skilled staff;
the satisfactory negotiation of collective agreements with unionized employees;
the impact of changes in foreign exchange rates and capital repatriation on our costs and results;
engineering and construction timetables and capital costs for our expansion projects;
costs of closure of various operations;
market competition;
the accuracy of our preliminary economic assessment (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based;
tax benefits and tax rates;
the outcome of our copper concentrate sales and treatment and refining charge negotiations;
the resolution of environmental and other proceedings or disputes;
the future supply of reasonably priced power;
rainfall in the vicinity of MVC continuing to trend towards normal levels;
average recoveries for fresh tailings and Cauquenes tailings;
our ability to obtain, comply with and renew permits and licenses in a timely manner; and
our ongoing relations with our employees and entities with which we do business.

Future production levels and cost estimates assume there are no adverse mining or other events which significantly affect budgeted production levels. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements.

We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. You should also carefully consider the matters discussed under Risk Factors in the Company`s Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news release and except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.

¹ This is a non-GAAP financial performance measure. Refer to “Alternative Performance Measures” at the end of this press release.

² This is a non-GAAP financial performance measure. Refer to “Alternative Performance Measures” at the end of this press release.

May 5, 2021 7:34 am

Progenity Provides Key Update Regarding its Preecludia™ Test for Preeclampsia

Pre-validation study demonstrates commercial laboratory systems readiness; data show strong performance consistent with verification study

SAN DIEGO, May 05, 2021 (GLOBE NEWSWIRE) — Progenity, Inc. (Nasdaq: PROG), a biotechnology company with an established track record of success in developing and commercializing molecular testing products, today announced another key update regarding its Preecludia preeclampsia rule-out test. The company reported that its systems and processes necessary for commercial launch, including information systems, laboratory equipment, SOP finalization, and laboratory personnel training, all demonstrated commercial readiness as part of a pre-validation test. Additionally, data from this new, independent, prospective, naïve cohort examined as part of the pre-validation process showed test performance in the intended use population that was consistent with the verification study results presented April 30th at the 2021 American College of Obstetricians and Gynecologists (ACOG) Annual Meeting. The company recently announced it is in the clinical validation testing phase for the Preecludia test, with a targeted commercial launch expected in the second half of 2021.

Preeclampsia is the second most common cause of maternal mortality, with more than 700,000 women presenting each year with signs and symptoms of possible preeclampsia. It is characterized as a hypertensive disorder, but it is often difficult to clinically differentiate from other hypertensive conditions in pregnancy, making diagnosis and management difficult. Ultimately, left undiagnosed and improperly managed, preeclampsia can result in impaired organ function, seizures, stroke, and death in the mother, and may require pre-term delivery of the baby. Preeclampsia can result in both poor health outcomes and significant costs.

The new data, generated with the original locked algorithm from the verification study, came from a cohort of more than 300 blinded samples equally distributed across gestational ages collected during the PRO-104 protocol, and examined as part of the pre-validation process. Analysis of these samples from the intended use population showed test performance consistent with the Preecludia verification study, indicating further de-risking of the program. The pre-validation test performance showed sensitivity greater than 87% and a negative predictive value (NPV) greater than 97% at a prevalence of 11%, and a rule out window of up to 14 days from sample collection. A similar level of performance, if observed in the larger PRO-104 validation study, would provide clinicians, especially OB/GYNs, with a new tool for their assessment of women at risk for preeclampsia. Preecludia is expected to result in a materially superior approach to the existing standard of care which offers an NPV of 83%, at best.

“We are very encouraged by the performance of the Preecludia test as evidenced in these data and prior studies. This portends well for the future performance of Preecludia in our validation study and for when we reach the commercial market,” said Harry Stylli, PhD, CEO, chairman of the board and co-founder of Progenity. “We have completed analytical testing and are initiating data analysis of the full set of patient samples from our validation study with over 1,300 patients. We plan to share the performance data from this validation study within the June/July timeframe. With these data in hand, we plan to begin a targeted launch of Preecludia in the second half of 2021 by leveraging our existing OBGYN/MFM channel.”

Progenity’s Preecludia is a preeclampsia rule-out test, not a diagnostic predictive test for preeclampsia. It has the potential to be the first-of-its-kind test in the United States to help healthcare providers evaluate patients who have signs and symptoms of possible preeclampsia. This laboratory developed test (LDT) is a novel multi-analyte protein biomarker assay designed to examine markers from multiple pathophysiological pathways of preeclampsia to assess risk. It is run from a simple blood draw and is designed to address the unmet need for tools to aid in the assessment and management of preeclampsia. The US market opportunity for Preecludia is estimated at up to $3 billion, with additional global market opportunities.

The ACOG poster presentation of the verification study results is available on the Progenity website.

For more information about Progenity’s products and pipeline visit www.progenity.com, or follow the company on LinkedIn or Twitter.

About Progenity

Progenity, Inc. is a biotechnology company with an established track record of success in developing and commercializing molecular testing products, as well as innovating in the field of precision medicine. Progenity provides in vitro molecular tests designed to improve lives by providing actionable information that helps guide patients and physicians in making medical decisions during key life stages. The company applies a multi-omics approach, combining genomics, epigenomics, proteomics, and metabolomics to its molecular testing products and to the development of a suite of investigational ingestible devices designed to provide precise diagnostic sampling and drug delivery solutions. Progenity’s vision is to transform healthcare to become more precise and personal by improving diagnoses of disease and improving patient outcomes through localized treatment with targeted therapies. For additional information about Progenity, please visit the company’s website at www.progenity.com.

Forward Looking Statements

This press release contains “forward-looking statements,” which statements are subject to substantial risks and uncertainties and are based on estimates and assumptions. All statements, other than statements of historical facts included in this press release, including statements concerning the development progress of our preeclampsia rule-out test, its future use by providers to rule out preeclampsia, the performance of the rule-out test in an upcoming validation study, the completion of our upcoming validation study, and our efforts and intent to commercialize the Preecludia test and address an unmet medical need, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual results to differ materially from the forward-looking statements expressed or implied in this press release, including our ability to develop and commercialize our testing products, the size and growth potential of the markets for our products and our ability to serve those markets, the rate and degree of market acceptance and clinical utility of our products and coverage and rates of reimbursement for our products, regulatory developments in the United States and foreign countries, our ability to obtain and maintain regulatory approval or clearance of our products on expected timelines or at all, our ability to improve and enhance our products, the development, regulatory approval, efficacy, and commercialization of competing products, the loss or retirement of key scientific or management personnel, our expectations regarding our ability to obtain and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing the intellectual property rights of others, the ongoing COVID-19 pandemic and associated impact on our business, and those risks described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 18, 2021, and other subsequent documents we file with the SEC. We claim the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:

Robert Uhl
Managing Director, Westwicke ICR
[email protected]
(619) 228-5886

Media Contact:

Angela Salerno-Robin
dna Communications
[email protected]
(212) 445-8219

May 5, 2021 7:34 am

Auxly Appoints First Chief People Officer

TORONTO, May 05, 2021 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX – XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”), a leading consumer packaged goods company in the cannabis products market, is pleased to announce that it has hired Andrea Fraser as Chief People Officer. In this new role, Ms. Fraser will lead all aspects of the Company’s human resources, including crafting talent acquisition strategies, promoting inclusion in the workplace and further developing and evaluating career paths to meet the Company’s business goals. Ms. Fraser will also manage Auxly’s ongoing response to the impacts of COVID-19 as it relates to its employees and office spaces.

Ms. Fraser brings extensive experience and deep knowledge of leading People and Culture strategy and initiatives for multinational CPG and digital marketing companies, most recently working as Director, Global Human Resources at Tilray.

“We are delighted to welcome Andrea to the Auxly Family,” said Hugo Alves, CEO of Auxly. “We believe she is the right leader to help us continue building an engaged, inclusive and high-performing culture at Auxly.”

Ms. Fraser commented, “I couldn’t be more excited to be joining Auxly as its new Chief People Officer. The highly engaged culture that Auxly has created is truly special and I look forward to helping them take these strengths to a new level of performance and success.”

ON BEHALF OF THE BOARD
“Hugo Alves” CEO

About Auxly Cannabis Group Inc. (TSX: XLY)

Auxly is a leading Canadian cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading research and development infrastructure in order to create trusted products and brands in an expanding global market.

Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.

Investor Relations:

For investor enquiries please contact our Investor Relations Team:
Email: [email protected]
Phone: 1.833.695.2414

Media Enquiries (only):

For media enquiries or to set up an interview please contact:
Email: [email protected]

Notice Regarding Forward Looking Information:

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the Company’s response to the COVID-19 pandemic; future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting the Company in particular and the cannabis industry generally.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. Readers should not place undue reliance on forward-looking information contained in this release. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

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

May 5, 2021 7:34 am

Sinclair Reports First Quarter 2021 Financial Results

Sinclair Reports First Quarter 2021 Financial Results

BALTIMORE–(BUSINESS WIRE)–
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three months ended March 31, 2021.

First Quarter Highlights

Consolidated total revenue decreased 6% to $1,511 million as compared to the first quarter of 2020.
Consolidated operating income of $35 million, including $32 million of non-recurring costs for transaction and transition services, COVID, legal, and regulatory costs (“Adjustments”) decreased compared to operating income in the first quarter of 2020 of $327 million, which included $20 million of Adjustments. Excluding the Adjustments, operating income of $67 million decreased $280 million compared to the first quarter of 2020.
Net loss attributable to the Company was $12 million versus net income of $123 million in the prior year period. Excluding the Adjustments, the Company had net income of $13 million.
Consolidated Adjusted EBITDA, which excludes the Adjustments, of $182 million, decreased 35% versus the first quarter of 2020.

CEO Comment:

“Results for the quarter were much better than expected and reflect a strong recovery in the core advertising market, cost controls and timing of games played,” said Chris Ripley, Sinclair’s President & Chief Executive Officer. “We are optimistic that the rebound in advertising spending bodes well for the rest of the year, where we are lapping easy comparisons to the prior year, which was significantly impacted by the pandemic.”

Ripley continued, “At the end of the quarter, Sinclair entered a new era of sports viewing with the rebranding of our RSNs with the Bally Sports name. The roll-out went off without a hitch, thanks to the tireless efforts of our entire sports marketing team. The feedback has been very positive across all stakeholders, as the rebrand was a significant upgrade to the product’s graphics, and we are energized to be bringing local sports viewers the very best experience to root for their favorite hometown sports teams. With the recent launch of our new Bally Sports App, the stage is set to elevate sports viewing to a whole new level, allowing a more interactive and personalized experience.”

Ripley concluded, “We continue to focus on initiatives to create a more dynamic viewing experience across all our platforms, creating live interactive programming, building our gamification offerings, deploying NEXTGEN TV, and developing our direct to consumer platforms, to improve the consumer experience and engagement.”

Recent Company Developments:

Content and Distribution:

In March, the Company rebranded its acquired regional sports networks (RSNs) under the Bally Sports name, ushering in a new era in the way people watch and interact with live sports.
In April, the new Bally Sports app for authenticated users was launched, allowing viewers to watch the entire programming line-up of their local RSN, 24 hours a day, including live games, with a significantly greater amount of functionality and features compared to the app it replaced.
In February, the Miami Marlins and the Company entered into a binding term sheet for a multi-year media rights agreement, beginning with the 2021 Major League Baseball season, for Bally Sports Florida to continue as the television home of the Marlins.
In April, the Company signed a multi-year enterprise partnership agreement with Operative Media to enable Sinclair to consolidate all its sellable advertising assets across its platforms into a single ad sales system. The framework will enable Sinclair to offer its customers a simplified and optimized solution to buying from its extensive ad inventory across all platforms.
In April, Sinclair agreed to an over-arching distribution deal with Samsung TV for much of Sinclair’s content to be accessible to Samsung TV viewers via apps. Sinclair content to be included includes free streaming platform STIRR, premium networks Tennis Channel (via TVE for authenticated subscribers) and Tennis Channel Plus (SVOD), as well as networks Comet TV and Charge!. Additional networks are expected to be available in the future, including the Bally Sports RSNs (via TVE for authenticated subscribers) and NewsOn.
In March, fuboTV Inc. and Marquee Sports Network announced a carriage agreement to bring Chicago Cubs game coverage to the fuboTV platform.
In April, the Company entered into a multi-year retransmission renewal with Cox for the carriage of Sinclair stations, Tennis Channel and Sinclair’s national networks on its platforms and extended carriage of the Bally Sports RSNs and YES Network.

Community:

In April, the Company announced that for the third year in a row, a Sinclair station was the winner of a prestigious Investigative Reporters & Editors (IRE) award for its investigative reporting. The Company’s Portland, ME station, WGME (CBS), received the 2020 award for its excellent investigative coverage of a flaw in the Veterans Crisis Line, which it identified and helped spur legislative action to correct it.
In April, Sinclair’s first television station, WBFF (Fox) in Baltimore MD, celebrated its 50th anniversary on the air.

Governance

In April, the Company named Laurie R. Beyer to serve as its newest independent board member.

NEXTGEN Broadcasting (ATSC 3.0):

As of April, the Company has launched NEXTGEN TV in 14 cities, including Columbus, OH, Syracuse, NY, and Buffalo, NY, which launched since year-end 2020.
In April, CAST.ERA, a media technology joint venture between Sinclair and SK Telecom, announced it will launch a next generation broadcast solution this year that boosts television content quality utilizing SK Telecom’s 5G cloud and AI technology.

Three Months Ended March 31, 2021 Consolidated Financial Results:

Total revenues decreased 6% to $1,511 million versus $1,609 million in the prior year period. Media revenues decreased 5% to $1,497 million versus $1,574 million in the same period a year ago.
Total advertising revenues of $371 million decreased 7% versus $400 million in the prior year period, due to the absence of political revenues, as 2021 is a non-political year. Core advertising revenues, which excludes political revenues, in the first quarter of $367 million were up 3% versus $358 million in the first quarter of 2020, benefiting from more local sports games taking place in the quarter compared to the same period a year ago.
Distribution revenues were $1,109 million versus $1,156 million in the same period a year ago, with the decrease driven by certain distributors that dropped carriage of the RSNs, as well as higher subscriber churn in the Pay TV industry in the quarter compared to the same period a year ago.
Operating income of $35 million, included Adjustments of $32 million versus operating income of $327 million in the prior year period, which included $20 million of Adjustments. Operating income when excluding the Adjustments decreased to $67 million from $347 million for the same prior-year period.
Net loss attributable to the Company was $12 million versus net income of $123 million in the prior year period. Excluding Adjustments, the Company had net income of $13 million. Adjusted EBITDA, which excludes Adjustments, decreased 35% to $182 million from $281 million in the prior year period.
Diluted loss per common share was $(0.16) as compared to diluted earnings per common share of $1.35 in the prior year period. The impact of Adjustments in the three months ending March 31, 2021, on a diluted per-share basis, was $(0.34) and the impact of Adjustments in the three months ending March 31, 2020 was $(0.18).

Consolidated and Segment Highlights

The below highlights include the launch of Marquee Sports Network (February 22, 2020), the divestiture of the non-license assets in Harlingen, TX (January 27, 2020), the divestiture of WDKY in Lexington, KY (September 17, 2020), the divestiture of WDKA and KBSI in the Cape Girardeau MO/Paducah KY market (February 1, 2021), and the acquisition of ZypMedia (February 5, 2021).

Segment financial information is included in the following tables for the periods presented. The Broadcast segment consists primarily of broadcast television stations, which the Company owns, operates or to which the Company provides services. The Local Sports segment consists primarily of the RSNs. The Other segment includes corporate, original networks and content, including Tennis Channel, non-broadcast digital and internet solutions, technical services, and other non-media investments.

Three months ended March 31, 2021	Broadcast			Local Sports			Corporate, Other & Elimination			Consolidated
*($ in millions)*	Broadcast			Local Sports			Corporate, Other & Elimination			Consolidated
*Revenue Highlights:*
Distribution revenue	$	361		$	698	^(a)	$	50		$	1,109
Advertising revenue	267			65			39			371
Other media revenue	37		^(b)	5			(25)		^(b)	17
Media revenues	$	665		$	768		$	64		$	1,497
Non-media revenue	—			—			14			14
Total revenues	$	665		$	768		$	78		$	1,511

*Expense Highlights:*
Media programming & production expenses and media selling, general and administrative expenses	$	478		$	722	^(b)	$	36	^(b)	$	1,236
Sports rights amortization included in media production expenses	—			552			—			552
Non-media expenses	—			—			17			17
Corporate general and administrative expenses	55			3			3			61

*Other Highlights:*
Sports rights payments	—			607		^(a)	—			607
Program contract payments	22			—			3			25
Capital expenditures^(c)	6			7			3			16
Interest expense (net)^(d)	1			100			41			142
Adjusted EBITDA^(e)										182

(a)		Local Sports distribution revenue includes $19 million for the reversal of previously accrued rebates to distributors tied to minimum game guarantees. Sports rights payments includes approximately $67 million of lower payments to and rebates from teams for sports rights overpayments tied to minimum game guarantees.
(b)		For the quarter ended March 31, 2021, Broadcast includes $27 million of revenue for services provided by the Broadcast segment to the Local Sports and Other segments, the Local Sports segment includes $26 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Local Sports segment, and the Other segment includes $1 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Other segment. Such amounts are eliminated in consolidation.
(c)		Capital expenditures exclude $4 million of repack capital expenditures expected to be reimbursed in the future from the TV Broadcaster Relocation Fund administered by the FCC.
(d)		Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.
(e)		Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction and transition service, COVID, legal, litigation and regulatory costs, as well as certain non-cash items such as stock-based compensation expense and sports rights amortization; less sports rights payments and program contract payments. Refer to the reconciliation on the last page of this press release and the Company’s website.

Three months ended March 31, 2020	Broadcast			Local Sports			Corporate, Other & Elimination			Consolidated
*($ in millions)*	Broadcast			Local Sports			Corporate, Other & Elimination			Consolidated
*Revenue Highlights:*
Distribution revenue	$	355		$	752		$	49		$	1,156
Advertising revenue	310			55			35			400
Other media revenue	36		^(a)	5			(23)		^(a)	18
Media revenues	$	701		$	812		$	61		$	1,574
Non-media revenue	—			—			35			35
Total revenues	$	701		$	812		$	96		$	1,609

*Expense Highlights:*
Media programming & production expenses and media selling, general and administrative expenses	$	456		$	535	^(a)	$	47	^(a)	$	1,038
Sports rights amortization included in Media production expenses	—			391			—			391
Non-media expenses	—			—			30			30
Corporate general and administrative expenses	44			2			3			49

*Other Highlights:*
Sports rights payments	—			612			—			612
Program contract payments	23			—			—			23
Capital expenditures^(b)	21			4			—			25
Interest expense (net)^(c)	1			111			52			164
Adjusted EBITDA^(d)										281

(a)		For the quarter ended March 31, 2020, Broadcast includes $24 million of revenue for services provided by the Broadcast segment to the Local Sports and Other segments, the Local Sports segment includes $23 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Local Sports segment, and the Other segment includes $1 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Other segment. Such amounts are eliminated in consolidation.
(b)		Capital expenditures exclude $21 million of repack capital expenditures expected to be reimbursed in the future from the TV Broadcaster Relocation Fund administered by the FCC.
(c)		Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.
(d)		Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction, legal, litigation and regulatory costs, as well as certain non-cash items such as stock-based compensation expense and sports rights amortization; less sports rights payments and programming payments. Refer to the reconciliation on the last page of this press release and the Company’s website.

Consolidated Balance Sheet and Cash Flow Highlights:

Total Company debt as of March 31, 2021 was $12,540 million, which includes Diamond Sports Group LLC (DSG) debt of $8,121 million.

Cash and cash equivalents for the Company as of March 31, 2021 was $941 million, which includes $415 million held at DSG.

As of March 31, 2021, 51.1 million Class A common shares and 24.2 million Class B common shares were outstanding, for a total of 75.3 million common shares.

In April, the Company’s wholly-owned subsidiary, Sinclair Television Group, Inc. (STG), entered into a new term loan in an aggregate amount of $740 million, the proceeds of which were used to refinance a portion of STG’s existing 2024 term loan B-1 tranche. The new term loan matures on April 1, 2028.

In March, the Company paid a $0.20 per share quarterly cash dividend to its shareholders.

Routine capital expenditures in the first quarter of 2021 were $16 million with another $4 million related to the spectrum repack.

The Local Sports segment’s media production expense included $552 million of sports rights amortization, while sports rights payments in the quarter were $607 million.

Notes:

Certain reclassifications have been made to prior years’ financial information to conform to the presentation in the current year.

Outlook:

The Company currently expects to achieve the following results for the three months ending June 30, 2021 and the twelve months ending December 31, 2021.

The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, including how it has and will continue to impact its advertisers, distributors, and professional sports leagues. The Company is currently unable to predict the extent of the impact that the COVID-19 pandemic will have on its financial condition, results of operations and cash flows in future periods due to numerous uncertainties. For additional discussion of how the COVID-19 pandemic has impacted the Company’s business, please see the section titled The Impact of COVID-19 on our Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which will be updated in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

For the three months ending June 30, 2021 ($ in millions)	Broadcast		Local Sports		Corporate and Other and Elimination		Consolidated
*Revenue Highlights:*
Core advertising revenue							$470 to 497
Political revenue							4 to 5
Advertising revenue	$270 to 286		$155 to 167		$49		$474 to 502
Distribution revenue	358 to 360		659 to 661		50		1,067 to 1,071
Other media revenue	46	^(a)	7 to 9		(25)	^(a)	28 to 30
Media revenues	674 to 692		821 to 836		74		1,569 to 1,602
Non-media revenue	—		—		14		14
Total revenues	$674 to 692		$821 to 836		$87		$1,582 to 1,616

*Expense Highlights:*					—
Media programming & production expenses and media selling, general and administrative expenses	$474 to 478		$1,084 to 1,085	^(a)	$70	^(a)	$1,629 to 1,633
Sports rights amortization included in media production expenses	—		844	^(b)	—		844
Non-media expenses	—		—		19		19
Corporate overhead			2				35
Stock-based compensation and non-recurring costs for transaction, legal, litigation and regulatory fees included in corporate and media expenses above			22				41
Depreciation, intangible & programming amortization			79				170

*Other Highlights:*
Sports rights payments	—		$409	^(b)	—		$409
Program contract payments							27
Interest expense (net)^(c)			101				144
Income tax benefit							Approximately 16% effective tax rate
Net cash tax refunds							Approximately $33 million
Payments to noncontrolling interest holders, including preferred dividend^(d)			11				12
Total capital expenditures, including repack			10				38
Repack capital expenditures							6
Adjusted EBITDA^(e)			$192 to 206				$349 to 378

Note: Certain amounts may not summarize to totals due to rounding differences.
(a)		The Broadcast segment includes $27 million of revenue for services provided by the Broadcast segment to the Local Sports and Other segments and the Local Sports segment includes $27 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Local Sports segment. Such amounts are eliminated in the Consolidated column.
(b)		Includes approximately $42 million of lower payments to and rebates from teams for sports rights overpayments tied to minimum game guarantees carried over from 2020.
(c)		Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.
(d)		Preferred dividend is expected to be paid in-kind in the quarter ending June 30, 2021.
(e)		Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, plus impairment loss and non-recurring transaction and transition service, COVID, legal, litigation and regulatory costs, as well as certain non-cash items such as stock-based compensation expense and sports rights amortization; less sports rights payments and programming payments. Refer to the reconciliation on the last page of this release and the Company’s website.

For the twelve months ending December 31, 2021 ($ in millions)	Broadcast	Local Sports		Corporate and Other and Elimination		Consolidated
*Revenue Highlights:*
Media revenues		$3,066 to 3,249	^(a)
Non-media revenue				70		70

*Expense Highlights:*
Media programming & production expenses and media selling, general and administrative expenses	$1,915 to 1,924	$3,127 to 3,132	^(b)	$241 to 243	^(b)	$5,283 to 5,299
Sports rights amortization included in media production expenses	—	2,357	^(c)	—		2,357
Non-media expenses	—	—		81		81
Corporate overhead		9				160
Stock-based compensation and non-recurring costs for transaction, legal, litigation and regulatory fees included in corporate and media expenses above		58				159
Depreciation, intangible & programming amortization		320				686

*Other Highlights:*
Sports rights payments	—	1,887	^(c)	—		1,887
Program contract payments						103
Interest expense (net)^(d)		405				576
Income tax benefit						Approximately 18% effective tax rate
Net cash tax refunds						Approximately $211 million
Payments to noncontrolling interest holders, including preferred dividend^(e)		81 to 92				86 to 98
Total capital expenditures, including repack		37				135 to 145
Repack capital expenditures						20
Adjusted EBITDA^(f)		$458 to 637

Note: Certain amounts may not summarize to totals due to rounding differences.
(a)		Includes approximately $19 million for the reversal of previously accrued rebates to distributors tied to minimum game guarantees.
(b)		The Local Sports segment includes approximately $110 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Local Sports segment.
(c)		Includes approximately $109 million of lower payments to and rebates from teams of sports rights payments tied to minimum game guarantees.
(d)		Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.
(e)		Preferred dividend is expected to be paid in-kind in the quarters ending June 30, 2021, September 30, 2021, and December 31, 2021.
(f)		Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, plus impairment loss and non-recurring transaction and transition service, COVID, legal, litigation and regulatory costs, as well as certain non-cash items such as stock-based compensation expense and sports rights amortization; less sports rights payments and programming payments. Refer to the reconciliation on the last page of this release and the Company’s website.

Sinclair Conference Call:

The senior management of Sinclair will hold a conference call to discuss its first quarter 2021 results on Wednesday, May 5, 2021, at 9:00 a.m. ET. The call will be webcast live and can be accessed at www.sbgi.net under “Investors/ Webcasts.” After the call, an audio replay will remain available at www.sbgi.net. The press and the public will be welcome on the call in a listen-only mode. The dial-in number is (877) 407-8033.

About Sinclair:

Sinclair is a diversified media company and leading provider of local sports and news. The Company owns and/or operates 21 regional sports network brands; owns, operates and/or provides services to 186 television stations in 87 markets; is a leading local news provider in the country; owns multiple national networks; and has TV stations affiliated with all the major broadcast networks. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital platforms. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Sinclair Broadcast Group, Inc. and Subsidiaries
Preliminary Unaudited Consolidated Statements of Operations
(In millions, except share and per share data)

	Three Months Ended March 31,
	2021			2020
REVENUES:
Media revenues	$	1,497		$	1,574
Non-media revenues	14			35
Total revenues	1,511			1,609

OPERATING EXPENSES:
Media programming and production expenses	1,023			828
Media selling, general and administrative expenses	213			210
Amortization of program contract costs	23			23
Non-media expenses	17			30
Depreciation of property and equipment	28			24
Corporate general and administrative expenses	61			49
Amortization of definite-lived intangible and other assets	125			150
Gain on asset dispositions and other, net of impairment	(14		)	(32		)
Total operating expenses	1,476			1,282
Operating income	35			327

OTHER INCOME (EXPENSE):
Interest expense including amortization of debt discount and deferred financing costs	(151		)	(180		)
Gain on extinguishment of debt	—			2
Income (loss) from equity method investments	9			(6		)
Other income (expense), net	124			(4		)
Total other expense, net	(18		)	(188		)
Income before income taxes	17			139
INCOME TAX BENEFIT	9			12
NET INCOME	26			151
Net income attributable to the redeemable noncontrolling interests	(4		)	(20		)
Net income attributable to the noncontrolling interests	(34		)	(8		)
NET (LOSS) INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP	$	(12	)	$	123
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
Basic (loss) earnings per share	$	(0.16	)	$	1.36
Diluted (loss) earnings per share	$	(0.16	)	$	1.35
Basic weighted average common shares outstanding (in thousands)	74,389			90,609
Diluted weighted average common and common equivalent shares outstanding (in thousands)	74,389			91,226

The Company considers Adjusted EBITDA to be an indicator of the operating performance of its assets. The Company also believes that Adjusted EBITDA is frequently used by industry analysts, investors and lenders as a measure of valuation.

Non-GAAP measures are not formulated in accordance with GAAP, are not meant to replace GAAP financial measures and may differ from other companies’ uses or formulations. The Company does not provide reconciliations on a forward-looking basis. Further discussions and reconciliations of the Company’s non-GAAP financial measures to comparable GAAP financial measures can be found on its website www.SBGI.net.

Sinclair Broadcast Group, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measurements – Unaudited
*All periods reclassified to conform with current year GAAP presentation*
(in millions)

	Three Months Ended March 31,
	2021			2020
Adjusted EBITDA
Net (loss) income attributable to Sinclair Broadcast Group	$	(12	)	$	123
Add: Income from redeemable noncontrolling interests	4			20
Add: Income from noncontrolling interests	34			8
Add: Income tax benefit	(9		)	(12		)
Add: Other (income) expense	(1		)	5
Add: (Income) loss from equity method investments	(9		)	6
Add: (Income) loss from other investments and impairments	(123		)	2
Add: Gain on extinguishment of debt/insurance proceeds	—			(3		)
Add: Interest expense	151			180
Less: Interest income	—			(2		)
Less: Gain on asset dispositions and other, net of impairment	(14		)	(32		)
Add: Amortization of intangible assets & other assets	125			150
Add: Depreciation of property & equipment	28			24
Add: Stock-based compensation	33			13
Add: Amortization of program contract costs	23			23
Less: Cash film payments	(25		)	(23		)
Add: Amortization of sports programming rights	552			391
Less: Cash sports programming rights payments	(607		)	(612		)
Add: Transaction and transition service, COVID, legal and other non-recurring expense	32			20
Adjusted EBITDA	$	182		$	281

Forward-Looking Statements:

The matters discussed in this news release, particularly those in the section labeled “Outlook,” include forward-looking statements regarding, among other things, future operating results. When used in this news release, the words “outlook,” “intends to,” “believes,” “anticipates,” “expects,” “achieves,” “estimates,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including and in addition to the assumptions set forth therein, but not limited to, the potential impacts of the COVID-19 pandemic on our business operations, financial results and financial position and on the world economy, the impact of changes in national and regional economies, the significant disruption to the operations of the professional sports leagues and the macroeconomy caused by COVID-19 may result in the recognition of further impairment charges on our goodwill and definite-lived intangible assets, our ability to generate cash to service our substantial indebtedness, the completion of the FCC spectrum repack, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, the successful execution of retransmission consent agreements, the successful execution of network and MVPD affiliation agreements, the successful execution of media rights agreements with professional sports teams, the impact of OTT and other emerging technologies and their potential impact on cord-cutting, the impact of MVPDs, vMVPDs, and OTT distributors offering “skinny” programming bundles that may not include all programming of our networks, our ability to identify and consummate acquisitions and investments and to achieve anticipated returns on those investments once consummated, the impact of pending and future litigation claims against the Company, the impact of FCC and other regulatory proceedings against the Company, uncertainties associated with potential changes in the regulatory environment affecting our business and growth strategy, and any risk factors set forth in the Company’s recent reports on Form 10-Q and/or Form 10-K, as filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005524/en/

Investor Contacts:

Steve Zenker, VP, Investor Relations

Billie-Jo McIntire, Director, Investor Relations

(410) 568-1500

Media Contact:

Michael Padovano, 5W, [email protected]

KEYWORDS: United States North America Maryland

INDUSTRY KEYWORDS: Other Entertainment TV and Radio General Entertainment Entertainment

MEDIA:

Logo

May 5, 2021 7:34 am

Copper Lake Finalizes Exploration Plans and Priorities for Marshall Lake Copper-Zinc-Silver Property, Ontario

TORONTO, May 05, 2021 (GLOBE NEWSWIRE) — Copper Lake Resources Ltd. (TSX-V: CPL, Frankfurt: WOL, OTC: WTCZF) (“Copper Lake” of the “Company”) is pleased to provide an update on exploration priorities as well as upcoming work, to be completed on its Marshall Lake volcanogenic copper-zinc-silver massive sulphide (“VMS”) property (the “Property”) in 2021. The Property is located 250 km northeast of the City of Thunder Bay, in northern Ontario and is accessible by an all-weather gravel road leading from Highway 11 (Trans Canada Highway), providing good access year-round.

An ongoing compilation of historic data has identified the following targets as highest priority, for upcoming exploration work to be completed during the summer of 2021.

Main Billiton Zone:

The Main Billiton Zone contains a historical resource of 2.2 million tonnes at a grade of 1.3% copper, 4.2% zinc and 2.5 oz/t silver¹. It comprises a minimum of 5 stacked lenses of heavily disseminated to massive sulphides, traced by drilling over a 600-metre strike length and to a maximum depth of 150 metres below surface. Highlights from historical drilling include the following high-grade intercepts:

3.0% Cu, 11.0% Zn & 219.7 g/t Ag, 7.9% CuEq² over 7.4 metres (GGM-78-230)
2.3% Cu, 9.8% Zn & 124.4 g/t Ag, 6.1% CuEq² over 5.5 metres (NWT-68-83)
1.8% Cu, 9.4% Zn & 164.2 g/t Ag, 5.8% CuEq² over 3.6 metres (ML-82-07)

¹

Cautionary note: the resources described above are considered historic under NI 43-101 guidelines and have not been verified by an independent Qualified Person and therefore should not be relied upon. The Company is not treating the historic resource as a current resource.

²
Copper Equivalent (
CuEq
) is based on prices of US$4.00/lb for
copper, US
$1.20/lb for zinc & US$20/oz for silver

The Main Billiton Zone is hosted in the ‘Marshall Mineralized Band’, an altered and mineralized sequence of chemical sediments interbedded with massive felsic volcanic rock. Alteration zones associated with the sulphide mineralization, contain biotite, garnet and actinolite.

Growing geological evidence suggests that all of the North Diabase, Adnarod, Swamp and South Billiton occurrences, are hosted within the same folded rock sequence as the Main Billiton Zone; i.e. within the Marshall Mineralized Band (see Map 1).

The North Diabase occurrence has yielded zinc values as high as 5.4% in drilling, while the Adnarod, Swamp and South Billiton occurrences yielded historical drill intercepts of 2.2% Cu, 3.0% Zn & 242.0 g/t Ag over 5.1 metres, 0.31% Cu, 5.4% Zn over 1.8 metres and 1.7% Cu, 9.7% Zn over 1.5 metres, respectively. The high-grade copper assays obtained in the North Copper Zone(4.0% Cu over 0.7 metres, 3.4% Cu over 2.0 metres) are interpreted to be stringer copper intercepts situated in the footwall below the Marshall Mineralized Band.

A ground MT (Magnetotelluric) survey is scheduled this summer for the Main Billiton Zone locale, to assist in mapping the configuration and extent of the Marshall Mineralized Band, in view of its significant strike extent on surface, wide-spread alteration and mineral endowment containing very good base & precious-metal grades (Map 1). MT is a ground geophysical survey that measures subsurface resistivity, an important parameter given its sensitivity to sulphide minerals (particularly massive sulphide) and hydrothermal alteration. MT has evolved in recent years with improved instrumentation and the development of 3D inversion programs, that generate 3D models of the subsurface resistivity. Current MT technology can measure and model resistivity in 3D at shallow depth & to depths of greater than 1 kilometre below surface.

The MT survey array will also permit the reading and integration of 3D IP data to depths of up to 500 metres. Notably, very shallow historic IP surveys completed in the Main Billiton Zone locale (less than 100-metre depths) correlate well with the Marshall Mineralized Band and contained mineral deposits. This augurs well for the prospects of defining additional drill targets in the deep IP survey, both along strike and at depth. In addition, the survey may help define fold closures which is often where the thickest massive sulphide zones are found in folded VMS stratigraphy such as Marshall Lake.

The MT/IP survey for the Main Billiton Zone locale is slated to commence in early to mid-June and finish within a 3-week period from its start.

Deeds Island Target:

Compilation of historical data has generated a highly prospective target located 6 km to the east of the Main Billiton Zone area, in an area of the Property that has seen minimal exploration and drilling. The Deeds Island target occurs higher in the rock sequence relative to the Main Billiton Zone, where most of the historical work was completed. Of note, many base-metal producing districts contain stacked horizons or multiple rock sequences hosting massive sulphide deposits, including the Rouyn-Noranda and Mattagami districts in Quebec.

The Deeds Island target comprises an 800-metre long geochemical anomaly yielding up to 1000 ppm zinc in rock chip sampling (Map 2). The zinc anomaly is coincident and underlain by a widespread zone of intense garnet-actinolite alteration (iron enrichment) within felsic tuff breccias. Garnet-actinolite is an alteration assemblage closely associated with copper-zinc-silver mineralization in the Main Billiton Zone. The zinc anomaly and garnet-actinolite alteration zone occur immediately below the Deeds Island Tuff. Massive sulphide deposits commonly form below such exhalative or tuff caps, in underlying rocks that are characterized by higher permeability (tuff breccias) and by higher temperatures (garnet-actinolite alteration and zinc mineralization).

Two airborne VTEM conductors (ML_VTEM_020-01 & ML_VTEM_021-01) also occur within the Deeds Island Tuff, adding further attraction to the target area.

A ground electromagnetic (EM) survey will be completed this summer to better locate and define the airborne EM conductors. The geophysical surveys will be followed-up by a series of diamond drill holes, collectively testing the conductors, the zinc anomaly and the garnet-actinolite alteration zone for the presence of massive sulphides.

Terry MacDonald, CEO of Copper Lake stated: “The completion of the MT/IP survey at Marshall Lake is an obvious choice given that this is new technology and that MT has never been completed on the Property. We are confident that the survey will generate several high-quality resistivity targets within the Marshall Mineralized Band that is clearly prospective for the discovery of additional copper-zinc-silver massive sulphide deposits.”

Results of the MT survey will be released as they as they become available.

Qualified Person

The technical content of this news release has been reviewed and approved by Donald Hoy, M.Sc., P.Geo, as the qualified person.

About Copper Lake Resources

Copper Lake Resources Ltd. is a publicly traded Canadian company currently focused on advancing properties located in Ontario, Canada.

The Marshall Lake high-grade VMS copper, zinc, silver and gold property, located just north of Geraldton, Ontario, comprises an area of approximately 104 square km and is accessible by all-season road. Copper Lake has an option to increase its interest to 87.5% from its current 75% interest.

In addition to the original Marshall Lake property above, Marshall Lake also includes the Sollas Lake and Summit Lake properties, which are 100% owned by the Company and are not subject to any royalties. The Sollas Lake property consists of 20 claim cells comprising an area of 4 square km on the east side of the Marshall Lake property where historical EM airborne geophysical surveys have outlined strong conductors on the property hosted within the same favourable felsic volcanic units. The Summit Lake property currently consists of 100 claim cells comprising an area of 20.5 square km, is accessible year round, and is located immediately west of the original Marshall Lake property.

Copper Lake has a 71.41% interest in the Norton Lake nickel, copper, cobalt, PGM property, located in the southern Ring of Fire area, is approximately 100 km north of the Marshall Lake Property, and has a NI 43-101 compliant measured and indicated resource of 2.26 million tonnes @ 0.67% Ni, 0.61% Cu, 0.03% Co and 0.46 g/t Pd.

On behalf of the Board of Directors,

Copper Lake Resources Ltd.

Terry MacDonald, CEO
(416) 561-3626
[email protected]

www.copperlakeresources.com

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

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/8f080c98-f4d1-4bcb-aca6-2be7064b44d9

https://www.globenewswire.com/NewsRoom/AttachmentNg/89b91440-2d93-40aa-9dad-eedb295742a6

May 5, 2021 7:34 am

Madison Square Garden Sports Corp. Reports Fiscal 2021 Third Quarter Results

Madison Square Garden Sports Corp. Reports Fiscal 2021 Third Quarter Results

NEW YORK–(BUSINESS WIRE)–
Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal third quarter ended March 31, 2021.

In February, the New York Knicks (“Knicks”) and the New York Rangers (“Rangers”) welcomed fans back to home games at the Madison Square Garden Arena (“The Garden”), marking the first time fans have returned to The Garden since March 2020. While attendance has been restricted to 10% capacity since February, New York State recently announced that arenas, including The Garden, will be permitted to increase capacity up to 30% beginning May 19, 2021.

During the fiscal 2021 third quarter, the Knicks played nine home games with limited attendance and 12 home games without any fans, as compared to 17 home games with no attendance restrictions in the prior year period. The Rangers played seven home games with limited attendance and 10 home games without any fans during the quarter, as compared to 16 home games with no attendance restrictions in the prior year period. As a reminder, the fiscal 2020 third quarter was impacted by the suspensions of the 2019-20 NBA and NHL seasons in mid-March 2020.

For the fiscal 2021 third quarter, financial results reflect fan attendance restrictions at The Garden and the compressed timing of the shortened 2020-21 NBA and NHL regular seasons. The Company generated revenues of $183.0 million, a decrease of $84.6 million, as compared to the prior year period. In addition, the Company generated operating income of $8.1 million, a decrease of $2.5 million, and adjusted operating income of $30.0 million, an increase of $2.3 million, both as compared to the prior year quarter.⁽¹⁾⁽²⁾

Madison Square Garden Sports Corp. President and CEO Andrew Lustgarten said, “Both our Company and our overall industry have seen significant momentum. We are grateful for the overwhelming support from Knicks and Rangers fans this season and are also pleased with their response to our 2021-22 season ticket outreach. On a broader scale, the importance and value of live sports content was once again reaffirmed with the NHL’s recent national media rights agreements. And looking ahead, the recent legalization of mobile sports gaming in New York presents a meaningful opportunity for fan engagement, sponsorship and the value of our teams.”

Results from Operations

Results for the three and nine months ended March 31, 2021 and 2020 are as follows:

	Three Months Ended									Nine Months Ended
	March 31,				Change					March 31,						Change
$ millions	2021		2020		$			%		2021			2020			$			%
Revenues	$	183.0	$	267.6	$	(84.6	)	(32	)%	$	268.8		$	610.3		$	(341.5	)	(56	)%
Operating income (loss)⁽¹⁾	$	8.1	$	10.6	$	(2.5	)	(24	)%	$	(57.7	)	$	(48.9	)	$	(8.8	)	(18	)%
Adjusted operating income (loss)⁽²⁾	$	30.0	$	27.8	$	2.3		8	%	$	(6.7	)	$	6.1		$	(12.8	)	NM

Note: Does not foot due to rounding

(1)		For the three and nine months ended March 31, 2020, the reported financial results of the Company reflect the results of the MSG Entertainment business segment and the sports booking business, previously owned and operated by the Company through its MSG Sports business segment, as discontinued operations. In addition, results from continuing operations for the same period include certain corporate overhead expenses that the Company did not incur in the period after the completion of the spin-off of Madison Square Garden Entertainment Corp. (“MSG Entertainment”) and does not expect to incur in future periods, but which did not meet the criteria for inclusion in discontinued operations. The reported financial results of the Company for the three and nine months ended March 31, 2021 reflect the Company’s results on a standalone basis, including the Company’s actual corporate overhead.
(2)		See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.

Summary of Reported Results from Continuing Operations

For the fiscal 2021 third quarter, the Company generated revenues of $183.0 million, as compared to revenues of $267.6 million in the prior year period, a decrease of 32%. The decrease in revenues was primarily driven by declines in pre/regular season ticket-related revenues, suite license fee revenue and pre/regular season food, beverage and merchandise sales. This was partially offset by an increase in local media rights fees from MSG Networks Inc. (“MSG Networks”) and league distribution revenues.

Pre/regular season ticket-related revenues decreased $87.8 million, suite license fee revenue decreased $25.3 million and pre/regular season food, beverage and merchandise sales declined $16.4 million, all as compared to the prior year period, primarily as a result of the impact of government-mandated capacity restrictions at The Garden. In addition, after the spin-off of MSG Entertainment, food and beverage revenue reflects 50% of the net profits of food and beverage sales during Knicks and Rangers games at The Garden compared to 100% of gross sales prior to the spin-off.

Local media rights fees from MSG Networks increased $22.8 million and league distribution revenues increased $22.5 million, both as compared to the prior year period, primarily due to the compressed timing of the NBA and NHL 2020-21 seasons and the impact of the suspended 2019-20 regular seasons in the prior year period. The increase in local media rights fees was partially offset by the impact of the reduced NHL 2020-21 regular season schedule.

Direct operating expenses of $126.5 million decreased $34.9 million, or 22%, as compared with the prior year period. Net provisions for league revenue sharing expense (net of escrow) and NBA luxury tax decreased $54.8 million, as compared to the prior year period, primarily due to the impact of the COVID-19 pandemic. Pre/regular season expenses associated with food, beverage and merchandise sales decreased $8.4 million, as compared to the prior year period, largely due to the Company recognizing food and beverage sales on a net basis subsequent to the spin-off of MSG Entertainment, compared to recognizing 100% of the cost of sales prior to the spin-off. These decreases were partially offset by the inclusion of $20.4 million of rent expense, including deferred rent, under the Arena License Agreements with MSG Entertainment and a $11.9 million increase in team personnel compensation, as compared to the prior year period, primarily due to the compressed timing of the NBA and NHL 2020-21 regular seasons and the impact of the suspended 2019-20 regular seasons in the prior year period, partially offset by lower player compensation.

Selling, general and administrative expenses of $46.8 million decreased $43.2 million, or 48%, as compared to the prior year period. This was primarily due to lower corporate overhead costs, which in the prior year period included certain corporate expenses that the Company has not incurred since the spin-off of MSG Entertainment and does not expect to incur in future periods, but which did not meet the criteria for inclusion in discontinued operations (see note 1 on previous page). This decrease in selling, general and administrative expenses was slightly offset by fees related to the Company’s sponsorship sales and service representation agreements with MSG Entertainment.

Operating income of $8.1 million decreased $2.5 million, as compared with the prior year period, primarily due to the decrease in revenues, largely offset by lower selling, general and administrative expenses, direct operating expenses and, to a lesser extent, a decrease in depreciation and amortization. Adjusted operating income of $30.0 million increased by $2.3 million, as compared with the prior year period, primarily as a result of lower direct operating expenses and selling, general and administrative expenses, largely offset by the decrease in revenues.

Other Matters

As of March 31, 2021, the Company had $289.1 million of liquidity, comprised of the following components:

$69.1 million of cash and cash equivalents, which includes $30 million from the NBA, which the league provided to each team in December 2020, and $30 million advanced from the NHL during the quarter;⁽³⁾
$55 million in borrowing capacity under the Knicks senior secured revolving credit facility;
$90 million in borrowing capacity under the Rangers senior secured revolving credit facility; and
$75 million available under the Knicks Holdings unsecured revolving credit facility.

As of March 31, 2021, total debt outstanding was $410 million, comprised of $380 million under the Company’s Knicks and Rangers senior secured revolving credit facilities and $30 million advanced from the NHL.⁽³⁾ The Company’s deferred revenue obligations as of the end of the fiscal 2021 third quarter were approximately $133 million, net of billed, but not yet collected deferred revenue, as compared to approximately $206 million as of December 31, 2020. The decrease was primarily due to the recognition of local and national media rights revenue during the fiscal third quarter. The majority of the deferred revenue balance was comprised of tickets, suites and local and national media rights, which will be addressed through games played and, to the extent necessary, through make-goods, credits and/or refunds, as well as the $30 million from the NBA.

(3)

All borrowings under the 2021 Rangers NHL Advance Agreement bear interest at 3.0% annually and are classified as current debt on the balance sheet as they are payable to the NHL upon demand. It is expected that the advancement amount will be set off against funds that would otherwise be paid, distributed or transferred by the NHL to the Rangers.

About Madison Square Garden Sports Corp.

Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes: the New York Knicks (NBA) and the New York Rangers (NHL); two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL); and esports teams through Counter Logic Gaming, a leading North American esports organization, and Knicks Gaming, an NBA 2K League franchise. MSG Sports also operates two professional sports team performance centers – the MSG Training Center in Greenburgh, NY and the CLG Performance Center in Los Angeles, CA. More information is available at www.msgsports.com.

Non-GAAP Financial Measures

We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) deferred rent expense under the Arena License Agreements with MSG Entertainment, (ii) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (iii) share-based compensation expense or benefit, (iv) restructuring charges or credits, (v) gains or losses on sales or dispositions of businesses, and (vi) the impact of purchase accounting adjustments related to business acquisitions. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. We believe that given the length of the Arena License Agreements and resulting magnitude of the difference in deferred rent expense and the cash rent payments, the exclusion of deferred rent expense provides investors with a clearer picture of the Company’s operating performance.

We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this release.

Forward-Looking Statements

This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates, the impact of the COVID-19 pandemic and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2021			2020			2021			2020
Revenues	$	183,010		$	267,631		$	268,819		$	610,279
Direct operating expenses	126,510			161,388			182,957			377,590
Selling, general and administrative expenses	46,803			90,045			138,708			266,283
Depreciation and amortization	1,573			5,573			4,840			15,338
Operating income (loss)	8,124			10,625			(57,686		)	(48,932		)
Other income (expense):
Interest income	9			165			9			691
Interest expense	(2,939		)	(867		)	(7,415		)	(2,240		)
Miscellaneous expense, net	(46		)	(142		)	(236		)	(316		)
Income (loss) from continuing operations before income taxes	5,148			9,781			(65,328		)	(50,797		)
Income tax benefit (expense)	(53		)	(5,598		)	275			11,132
Income (loss) from continuing operations	5,095			4,183			(65,053		)	(39,665		)
Loss from discontinued operations, net of taxes	—			(145,249		)	—			(89,718		)
Net income (loss)	5,095			(141,066		)	(65,053		)	(129,383		)
Less: Net loss attributable to nonredeemable noncontrolling interests from continuing operations	(373		)	(785		)	(1,479		)	(1,700		)
Less: Net loss attributable to redeemable noncontrolling interests from discontinued operations	—			(22,447		)	—			(23,851		)
Less: Net income attributable to nonredeemable noncontrolling interests from discontinued operations	—			195			—			37
Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders	$	5,468		$	(118,029	)	$	(63,574	)	$	(103,869	)

Basic
Continuing operations	$	0.23		$	0.20		$	(2.64	)	$	(1.58	)
Discontinued operations	—			(5.12		)	—			(2.76		)
Basic income (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	0.23		$	(4.92	)	$	(2.64	)	$	(4.34	)

Diluted
Continuing operations	$	0.22		$	0.20		$	(2.64	)	$	(1.58	)
Discontinued operations	—			(5.12		)	—			(2.76		)
Diluted income (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders	$	0.22		$	(4.92	)	$	(2.64	)	$	(4.34	)

Basic weighted-average number of common shares outstanding	24,156			24,004			24,120			23,914
Diluted weighted-average number of common shares outstanding	24,344			24,004			24,120			23,914

MADISON SQUARE GARDEN SPORTS CORP.

ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO

ADJUSTED OPERATING INCOME (LOSS)

The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating income (loss) as described in this earnings release:

Deferred rent. This adjustment eliminates the impact of the non-cash portion of rent expense associated with the Arena License Agreements with MSG Entertainment.
Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods.
Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company’s employee stock plan and non-employee director plan in all periods.
Restructuring charges. This adjustment eliminates costs related to termination benefits provided to employees as part of the Company’s workforce reduction in August 2020.
Purchase accounting adjustments. This adjustment eliminates the impact of various purchase accounting adjustments related to the CLG acquisition.

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021			2020
Operating income (loss)	$	8,124	$	10,625	$	(57,686	)	$	(48,932	)
Deferred rent	16,478		—		18,280			—
Depreciation and amortization ⁽¹⁾	1,573		5,573		4,840			15,338
Share-based compensation	3,867		11,508		26,193			39,559
Restructuring charges	—		—		1,644			—
Other purchase accounting adjustments	—		50		—			150
Adjusted operating income (loss)	$	30,042	$	27,756	$	(6,729	)	$	6,115

_________________

(1)

Includes depreciation and amortization related to purchase accounting adjustments.

MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)

	March 31, 2021		June 30, 2020
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	69,128	$	77,852
Restricted cash	8,896		12,821
Accounts receivable, net	82,518		7,403
Net related party receivables	5,048		135
Prepaid expenses	25,598		20,634
Other current assets	11,176		9,433
Total current assets	202,364		128,278
Property and equipment, net of accumulated depreciation and amortization of $42,406 and $38,361 as of March 31, 2021 and June 30, 2020, respectively	35,955		39,597
Right-of-use lease assets	707,323		718,051
Amortizable intangible assets, net	1,959		2,754
Indefinite-lived intangible assets	112,144		112,144
Goodwill	226,955		226,955
Other assets	17,740		6,019
Total assets	$	1,304,440	$	1,233,798

MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data)

	March 31, 2021			June 30, 2020
	(Unaudited)
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	1,554		$	2,301
Net related party payables	20,700			17,952
Debt	30,000			—
Accrued liabilities:
Employee related costs	70,993			71,451
Other accrued liabilities	61,587			33,071
Operating lease liabilities, current	34,329			39,131
Deferred revenue	129,390			126,348
Total current liabilities	348,553			290,254
Long-term debt	380,000			350,000
Operating lease liabilities, noncurrent	692,243			679,053
Defined benefit and other postretirement obligations	6,544			7,014
Other employee related costs	41,977			50,027
Deferred tax liabilities, net	57,446			57,721
Deferred revenue, noncurrent	31,978			2,014
Other liabilities	1,000			1,150
Total liabilities	1,559,741			1,437,233
Commitments and contingencies
Madison Square Garden Sports Corp. Stockholders’ Equity:
Class A Common stock, par value $0.01, 120,000 shares authorized; 19,587 and 19,466 shares outstanding as of March 31, 2021 and June 30, 2020, respectively	204			204
Class B Common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of March 31, 2021 and June 30, 2020	45			45
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of March 31, 2021 and June 30, 2020	—			—
Additional paid-in capital	19,327			5,940
Treasury stock, at cost, 861 and 982 shares as of March 31, 2021 and June 30, 2020, respectively	(146,734		)	(167,431		)
Accumulated deficit	(128,518		)	(43,605		)
Accumulated other comprehensive loss	(2,062		)	(2,139		)
Total Madison Square Garden Sports Corp. stockholders’ equity	(257,738		)	(206,986		)
Nonredeemable noncontrolling interests	2,437			3,551
Total equity	(255,301		)	(203,435		)
Total liabilities and equity	$	1,304,440		$	1,233,798

MADISON SQUARE GARDEN SPORTS CORP. SELECTED CASH FLOW INFORMATION (Dollars in thousands) (Unaudited)

	Nine Months Ended
	March 31,
	2021			2020⁽¹⁾
Net cash (used in) provided by operating activities	$	(54,367	)	$	111,133
Net cash used in investing activities	(437		)	(494,631		)
Net cash provided by financing activities	42,155			306,818
Effect of exchange rates on cash, cash equivalents and restricted cash	—			3,916
Net decrease in cash, cash equivalents and restricted cash	(12,649		)	(72,764		)
Cash, cash equivalents and restricted cash from continuing operations, beginning of period	90,673			25,836
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period	—			1,092,065
Cash, cash equivalents and restricted cash at beginning of period	90,673			1,117,901
Cash, cash equivalents and restricted cash from continuing operations, end of period	78,024			23,289
Cash, cash equivalents and restricted cash from discontinued operations, end of period	—			1,021,848
Cash, cash equivalents and restricted cash at end of period	$	78,024		$	1,045,137

_________________

(1)

The selected cash flow information for the nine months ended March 31, 2020 includes results related to the MSG Entertainment business segment and the sports booking business previously owned and operated by the Company through its MSG Sports business segment through the MSG Entertainment spin-off date. These results have been classified as discontinued operations and, as permitted under ASU 2014-08, the Company has elected not to adjust the consolidated statement of cash flows for the nine months ended March 31, 2020 to exclude cash flows attributable to discontinued operations.

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Kimberly Kerns

Communications

(212) 465-6442

Ari Danes, CFA

Investor Relations

(212) 465-6072

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Other Sports Basketball Sports Hockey

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