Market Newsdesk

MIDDLETOWN, R.I., May 05, 2021 (GLOBE NEWSWIRE) — KVH Industries, Inc., (Nasdaq: KVHI), reported financial results for the quarter ended March 31, 2021 today. The company will hold a conference call to discuss these results at 9:00 a.m. ET today, which can be accessed at investors.kvh.com. Following the call, a replay of the webcast will be available through the company’s website.

First Quarter 2021 Highlights

• Total revenues increased by 16% in the first quarter of 2021 to $42.3 million from $36.6 million in the first quarter of 2020.
• Revenues for AgilePlans, our Connectivity as a Service program for the commercial maritime sector, were up more than 48% compared to the first quarter of 2020.
• AgilePlans amounted to 84% of total commercial maritime mini-VSAT Broadband shipments, and 67% of the total mini-VSAT Broadband shipments for the quarter. AgilePlans now represent 41% of our mini-VSAT Broadband subscriber base.
• Our mini-VSAT Broadband airtime revenue increased $2.2 million, to $21.4 million, or 11%, in the first quarter of 2021 compared to the first quarter of 2020, driven primarily by a 7% increase in subscribers.
• TACNAV product sales increased $4.2 million in the first quarter of 2021 compared to the first quarter of 2020, and fiber optic gyro (FOG) product and OEM product sales increased $0.9 million, or 16%, in the first quarter of 2021 compared to the first quarter of 2020.
• Net loss in the first quarter of 2021 was $4.0 million, or $0.22 per share, compared to a net loss of $6.2 million, or $0.35 per share, in the first quarter of 2020.
• Non-GAAP net loss in the first quarter of 2021 was $0.9 million, or $0.05 per share, compared to a non-GAAP net loss of $4.3 million, or $0.25 per share, in the first quarter of 2020.
• Non-GAAP adjusted EBITDA in the first quarter of 2021 was $1.1 million, compared to a negative $3.7 million in the first quarter of 2020.

Commenting on the quarter, Martin Kits van Heyningen, KVH’s chief executive officer, said, “Despite continuing pandemic-related headwinds, KVH recorded a strong first quarter, with total revenue up 16% over the first quarter of 2020, net loss improved by $2.2 million and adjusted EBITDA was up $4.8 million over the first quarter of 2020. We continued to make progress against our strategic priorities, with shipments for our AgilePlans subscription offering up almost 50%. While AgilePlans shipments do not immediately show up in revenue, they drive future top-line growth and are an important indicator of the robust health of our mobile connectivity business. Airtime revenue, a function of prior shipments, grew at double-digit rates over last year, and gross margin improved as well. We recently introduced the TracPhone V30, an ultra-compact VSAT antenna that is easy to install and will deliver high-performance, affordable Internet at sea, and we believe it will further strengthen our position in this market and drive future growth and profitability. Within the mobile connectivity segment as a whole, revenue was up compared to a year ago, and on the cost side we continue to migrate VSAT customers onto our HTS network as we progress towards an exit of our legacy network by year end.”

“In the inertial navigation segment, we successfully completed a large tactical navigation order that we had announced in the second quarter of last year, which increased TACNAV revenue in the first quarter by $4.2 million over a year ago. Even without the growth in TACNAV, inertial navigation product sales increased by more than 15%, and we made substantial progress in our transition to production of our photonic integrated chip (PIC)-based inertial systems. While uncertainty in our markets continues to complicate any forecasting, we maintain our view that if customer activity returns to a more normal level early in the third quarter we can anticipate full-year revenues to increase by mid-to-high single digits over 2020 revenues and adjusted EBITDA to grow at a faster rate than revenue for the full year.”

The company operates in two segments, mobile connectivity and inertial navigation. In the first quarter of 2021, net sales for the mobile connectivity segment increased by $1.6 million compared to the first quarter of 2020. mini-VSAT Broadband airtime revenue increased by $2.2 million. The increase was offset primarily due to a $0.9 million decrease in our content service sales. In the first quarter of 2021, net sales for our inertial navigation segment increased by $4.1 million, or 54%, compared to the first quarter of 2020. Inertial navigation sales increased primarily due to a $4.2 million increase in the volume of TACNAV product sales and a $0.9 million increase in our FOG and OEM product sales.

Financial Highlights – From Continuing Operations (in millions, except per share data)

		Three Months Ended
		March 31,
		2021				2020
GAAP Results
Revenue		$	42.3			$	36.6
Net loss		$	(4.0	)		$	(6.2	)
Net loss per share		$	(0.22	)		$	(0.35	)
Non-GAAP Results
Net loss		$	(0.9	)		$	(4.3	)
Net loss per share		$	(0.05	)		$	(0.25	)
Adjusted EBITDA		$	1.1			$	(3.7	)

For more information regarding our non-GAAP financial measures, see the tables at the end of this release.

First Quarter Financial Summary

Revenue was $42.3 million for the first quarter of 2021, an increase of 16% compared to $36.6 million in the first quarter of 2020.

Product revenues for the first quarter of 2021 were $18.4 million, an increase of 41% compared to the prior year quarter, primarily due to a $5.0 million increase in inertial navigation product sales and a $0.3 million increase in mobile connectivity product sales. Inertial navigation product sales increased primarily as a result of a $4.2 million increase in the volume of TACNAV product sales and a $0.9 million increase in our FOG and OEM product sales. The increase in mobile connectivity product sales was primarily due to a $0.4 million increase in mini-VSAT Broadband product sales.

Service revenues for the first quarter of 2021 were $23.9 million, an increase of 2% compared to the prior year quarter primarily due to a $1.3 million increase in mobile connectivity service sales, partially offset by a $0.9 million decrease in inertial navigation service sales. Inertial navigation service sales decreased primarily due to lower contract engineering service revenue. Mobile connectivity service sales increased primarily due to a $2.2 million increase in our mini-VSAT Broadband service sales, which resulted in part from a 7% increase in subscribers, primarily as a result of AgilePlans. Partially offsetting this increase was a $0.9 million decrease in our content service sales.

Our operating expenses decreased $0.1 million to $19.3 million for the first quarter of 2021 compared to $19.4 million for the first quarter of 2020. This decrease resulted primarily from a $0.4 million decrease in warranty expenses and a $0.3 million decrease in travel expenses. Partially offsetting this decrease was a $0.7 million increase in professional fees, primarily relating to Board governance matters.

Other Recent Announcements

• KVH Introduces P-series IMUs with PIC Technology and New Accelerometer
• KVH Offers High Performance Ultra-Compact Ku-band V30 VSAT Antenna
• KVH Offers TACNAV 3D with Photonic Integrated Chip Technology
• KVH Industries Names Roger A. Kuebel as New CFO

Please review the corresponding press releases for more details regarding these developments.

Conference Call Details

KVH Industries will host a conference call today at 9:00 a.m. ET through the company’s website. The conference call can be accessed at investors.kvh.com and listeners are welcome to submit questions pertaining to the earnings release and conference call to [email protected]. The audio archive will be available on the company website within three hours of the completion of the call.

Non-GAAP Financial Measures

This release provides non-GAAP financial information, which may include constant-currency revenue, non-GAAP net income (loss), non-GAAP diluted EPS, and non-GAAP adjusted EBITDA, as a supplement to our condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (“GAAP”). Management uses these non-GAAP financial measures internally in analyzing financial results to assess operational performance. Constant-currency revenue is calculated on the basis of local currency results, using foreign currency exchange rates applicable to the earlier comparative period, and management believes that presenting information on a constant-currency basis helps management and investors to isolate the impact of changes in those rates from other factors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. Management generally uses these non-GAAP financial measures to facilitate financial and operational decision-making, including evaluation of our historical operating results, comparison to competitors’ operating results, and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting our business.

Some limitations of non-GAAP net income (loss), non-GAAP diluted EPS, and non-GAAP adjusted EBITDA, include the following:

• Non-GAAP net income (loss) and diluted EPS exclude, as applicable, amortization of intangibles, stock-based compensation expense, goodwill impairment charge, intangible asset impairment charge, transaction-related and other variable irregular legal and advisory fees, variable inventory reserves, other variable costs, foreign exchange transaction gains and losses, the tax effect of the foregoing and certain discrete tax charges, including changes in our valuation allowance and other tax adjustments.
• Non-GAAP adjusted EBITDA represents net income (loss) before, as applicable, interest income, net, income taxes, depreciation, amortization, stock-based compensation expense, goodwill impairment charge, intangible asset impairment charge, transaction-related and other variable legal and advisory fees, variable inventory reserves, other variable costs and foreign exchange transaction gains and losses.

Other companies, including companies in KVH’s industry, may calculate these non-GAAP financial measures differently or not at all, which will reduce their usefulness as a comparative measure.

Because non-GAAP financial measures exclude the effect of items that increase or decrease our reported results of operations, management strongly encourages investors to review our consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.

About KVH Industries, Inc.

KVH Industries, Inc., is a global leader in mobile connectivity and inertial navigation systems, with innovative technology designed to enable a mobile world. A market leader in maritime VSAT, KVH designs, manufactures, and provides connectivity and content services globally. KVH is also a premier manufacturer of high-performance sensors and integrated inertial systems for defense and commercial applications. Founded in 1982, the company is based in Middletown, RI, with research, development, and manufacturing operations in Middletown, RI, and Tinley Park, IL, and more than a dozen offices around the globe.
______________________________________________________________________________________________________

This press release contains forward-looking statements that involve risks and uncertainties. For example, forward-looking statements include statements regarding our financial goals for future periods, the success of our new initiatives, our investment plans, our development goals, our anticipated revenue and earnings, and the impact of our future initiatives on revenue, competitive positioning, profitability, and product orders. Actual results could differ materially from the results projected in or implied by the forward-looking statements made in this press release. Factors that might cause these differences include, but are not limited to: the adverse impact of the COVID-19 pandemic, as well as governmental, business and other responses thereto and any resulting economic slowdown, on our revenues, results of operations and financial condition, which could continue to be material (particularly for our media and other travel-related businesses); adverse changes in our business, prospects, financial condition or results of operations that may necessitate staffing or compensation reductions beyond those contemplated by the loan forgiveness provisions of the paycheck protection program (PPP), as a result of which we may not be entitled to any forgiveness; possible SBA determination that all or a portion of our PPP loan is not eligible for forgiveness; unanticipated changes or disruptions in our markets; increased competition, including as a result of industry consolidation; technological breakthroughs by competitors; changes in customer priorities or preferences; potential customer terminations; unanticipated liabilities; the potential that competitors will design around or invalidate our intellectual property rights; a history and expectation of continuing losses as we increase investments in various initiatives; continued fluctuations in quarterly results; the uncertain duration of the initial adverse impact on our overall revenues of our AgilePlans and KVH Watch, under which we recognize no revenue for product sales, either at the time of shipment or over the contract term; potential delays in the development of a market for our IoT services; the need to develop an ecosystem of applications for our new IoT services; higher costs arising from maintaining both the HTS network and our legacy network; potential challenges or delays in the transition of customers from our legacy network to our HTS network, which could result in a material loss of revenue; costs arising from the termination of our legacy network; the uncertain impact of federal budget deficits, Congressional deadlock and the change in administration; the uncertain impact of changes in trade policy, including actual and potential new or higher tariffs and trade barriers, as well as trade wars with other countries; unanticipated obstacles in our photonic chip and other product and service development, cost engineering and manufacturing efforts; delays in anticipated orders for our products and services, including significant orders for TACNAV products, or the potential failure of such orders to occur; adverse impacts of currency fluctuations; our ability to successfully commercialize our new initiatives without unanticipated additional expenses or delays; potential reduced sales to companies in or dependent upon the turbulent oil and gas industry; continued substantial fluctuations in military sales, including to foreign customers; the unpredictability of defense budget priorities as well as the order timing, purchasing schedules, and priorities for defense products, including possible order cancellations; the uncertain impact of potential budget cuts by government customers; the impact of extended economic weakness on the sale and use of marine vessels and recreational vehicles; the potential inability to increase or maintain our market share in the market for airtime services; the need to increase sales of the TracPhone V-HTS series products and related services to maintain and improve airtime gross margins; the need for, or delays in, qualification of products to customer or regulatory standards; potential declines or changes in customer demand, due to economic, weather-related, seasonal, and other factors, particularly with respect to the TracPhone V-HTS series, including with respect to new pricing models; increased price and service competition in the mobile connectivity market; exposure for potential intellectual property infringement; changes in tax and accounting requirements or assessments; and export restrictions, delays in procuring export licenses, and other international risks. These and other factors are discussed in more detail in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2021. Copies are available through our Investor Relations department and website, http://investors.kvh.com. We do not assume any obligation to update our forward-looking statements to reflect new information and developments.

KVH Industries, Inc., has used, registered, or applied to register its trademarks in the USA and other countries around the world, including but not limited to the following marks: KVH, TracPhone, TACNAV, KVH Watch, mini-VSAT Broadband, and AgilePlans. Other trademarks are the property of their respective companies.

KVH INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(in thousands, except per share amounts, unaudited)

		Three months ended March 31,
		2021				2020
Sales:
Product		$	18,432			$	13,094
Service		23,860				23,474
Net sales		42,292				36,568
Costs and expenses:
Costs of product sales		11,220				9,636
Costs of service sales		15,423				15,195
Research and development		4,567				4,287
Sales, marketing and support		7,546				8,700
General and administrative		7,143				6,398
Total costs and expenses		45,899				44,216
Loss from operations		(3,607		)		(7,648		)
Interest income		233				313
Interest expense		18				4
Other (expense) income, net		(789		)		1,502
Loss before income tax (benefit) expense		(4,181		)		(5,837		)
Income tax (benefit) expense		(153		)		377
Net loss		$	(4,028	)		$	(6,214	)
Net loss per common share:
Basic and diluted		$	(0.22	)		$	(0.35	)
Weighted average number of common shares outstanding:
Basic and diluted		17,938				17,529

KVH INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands, unaudited)

		March 31, 2021				December 31, 2020
ASSETS
Cash, cash equivalents and marketable securities		$	39,112			$	37,719
Accounts receivable, net		30,033				33,687
Inventories, net		22,773				24,674
Other current assets and contract assets		5,718				4,980
Total current assets		97,636				101,060
Property and equipment, net		57,111				56,273
Goodwill		6,611				6,592
Intangible assets, net		2,011				2,254
Right of use assets		5,346				6,893
Other non-current assets and contract assets		9,505				10,446
Non-current deferred income taxes		35				73
Total assets		$	178,255			$	183,591
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses		$	26,143			$	27,525
Contract liabilities		4,531				4,445
Current portion of long-term debt		6,152				4,992
Current operating lease liability		2,973				3,826
Total current liabilities		39,799				40,788
Other long-term liabilities		227				674
Long-term operating lease liability		2,500				3,204
Long-term contract liabilities		4,001				4,688
Non-current deferred tax liability		384				418
Long-term debt, excluding current portion		775				1,935
Stockholders’ equity		130,569				131,884
Total liabilities and stockholders’ equity		$	178,255			$	183,591

KVH INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS


(in thousands, except per share amounts, unaudited)

		Three months ended March 31,
		2021				2020
Net loss – GAAP		$	(4,028	)		$	(6,214	)
Amortization of intangibles		276				248
Stock-based compensation expense		932				805
Transaction-related and other variable legal and advisory fees		865				143
Foreign exchange transaction loss (gain)		357				(1,185		)
Tax effect on the foregoing		(524		)		(13		)
Change in valuation allowance and other tax adjustments (a)		1,189				1,904
Net loss – Non-GAAP		$	(933	)		$	(4,312	)
Net loss per common share – Non-GAAP
Basic and diluted		$	(0.05	)		$	(0.25	)
Weighted average number of common shares outstanding
Basic and diluted		17,938				17,529

(a)   Represents a change in the valuation allowance on current year United States net operating losses, research and development tax credits and uncertain tax position adjustments.

KVH INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP EBITDA

AND NON-GAAP ADJUSTED EBITDA


(in thousands, unaudited)

		Three months ended March 31,
		2021				2020
GAAP net loss		$	(4,028	)		$	(6,214	)
Income tax (benefit) expense		(153		)		377
Interest income, net		(215		)		(309		)
Depreciation and amortization		3,350				2,650
Non-GAAP EBITDA		(1,046		)		(3,496		)
Stock-based compensation expense		932				805
Transaction-related and other variable legal and advisory fees		865				143
Foreign exchange transaction loss (gain)		357				(1,185		)
Non-GAAP adjusted EBITDA		$	1,108			$	(3,733	)

KVH INDUSTRIES, INC. AND SUBSIDIARIES

REVENUE AND OPERATING INCOME (LOSS) BY SEGMENT


(in millions except for percentages, unaudited)

Segment Net Sales		Three months ended March 31,
		2021				2020
Mobile connectivity sales
Product		$	6.9			$	6.6
Service		23.6				22.3
Net sales		$	30.5			$	28.9
Inertial navigation sales
Product		$	11.5			$	6.5
Service		0.2				1.2
Net sales		$	11.7			$	7.7

Operating (Loss) Income		Three months ended March 31,
		2021				2020
Mobile connectivity		$	(0.4	)		$	(2.3	)
Inertial navigation		2.1				(0.8		)
		1.7				(3.1		)
Unallocated		(5.3		)		(4.5		)
Loss from operations		$	(3.6	)		$	(7.6	)

		Three months ended March 31,
		2021			2020
		(percentage of total revenue)
Mobile Connectivity Revenue Components
Product sales		16	%		18	%
mini-VSAT Broadband airtime		51	%		53	%
Content service		4	%		7	%
Inertial Navigation Revenue Components
FOG-based products		14	%		14	%
Tactical navigation products		12	%		3	%

Contact:		KVH Industries, Inc. Roger Kuebel 401-608-8945 [email protected]		FTI Consulting Christine Mohrmann 212-850-5600

FORT MYERS, Fla., May 05, 2021 (GLOBE NEWSWIRE) — Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announces financial results for the second quarter of fiscal year 2021 and the six months ended March 31, 2021, the highlights which are as follows:

• Market prices per pound solids have increased in fiscal year 2021, driven by increase in not-from-concentrate orange juice consumption and tighter citrus supply.
• Production of fruit and average pound solids per box are down from the previous year.
• Company modified fixed-rate term debt with Metlife and expects to reduce debt service between $5 million and $6 million per year until maturity in November 2029.
• Company closed a sales transaction with the State of Florida for approximately 5,734 acres and is under contract to sell, or in final negotiations to sell, approximately 15,000 additional acres of the Alico Ranch.
• Company generated approximately $25.6 million of operating cash flow in first six months of fiscal 2021.
• Company updates guidance for net income, EBITDA, adjusted net income and adjusted EBITDA for fiscal year 2021.

Results of Operations

For the six months ended March 31, 2021, the Company recorded net income attributable to Alico common stockholders of approximately $8.7 million and earnings of $1.16 per diluted common share, compared to net income attributable to Alico common stockholders of approximately $4.4 million and earnings of $0.58 per diluted common share in the same period in the prior year. The increase in net income attributable to Alico common stockholders is primarily due to greater revenue being generated from the Alico Citrus segment as a result of the increase in the price per pound solids being greater in the six months ended March 31, 2021, compared to the six months ended March 31, 2020. Partially offsetting this increase, has been a significant reduction in both production and average pound solids per box in the six months ended March 31, 2021 as compared to the same period in the prior year.

When both quarters are adjusted for certain non-recurring items, the Company had adjusted income of $0.43 per diluted common share for the six months ended March 31, 2021, compared to adjusted loss of $0.06 per diluted common share for the six months ended March 31, 2020. Adjusted EBITDA for the six months ended March 31, 2021 and March 31, 2020 was approximately $14.3 million and $9.5 million, respectively.

These financial results reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company’s profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.

The Company reported the following financial results:

(in thousands, except for per share amounts and percentages)
		Three Months Ended March 31,															Six Months Ended March 31,
		2021				2020				Change							2021				2020				Change
Net income attributable to Alico, Inc. common stockholders		$	4,867			$	3,571			$	1,296			36.3	%		$	8,712			$	4,362			$	4,350			99.7	%
EBITDA (1)		$	11,392			$	10,109			$	1,283			12.7	%		$	21,527			$	16,414			$	5,113			31.2	%
Adjusted EBITDA (1)		$	11,548			$	7,435			$	4,113			55.3	%		$	14,268			$	9,548			$	4,720			49.4	%
Earnings per diluted common share		$	0.65			$	0.48			$	0.17			35.4	%		$	1.16			$	0.58			$	0.58			100.0	%
Net cash provided by operating activities		$	30,735			$	17,731			$	13,004			73.3	%		$	25,626			$	11,688			$	13,938			119.3	%

(1) See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures.

Alico Citrus Division Results

Citrus production for the three and six months ended March 31, 2021 and 2020 is summarized in the following table.

(in thousands, except per box and per pound solids data)
		Three Months Ended															Six Months Ended
		March 31,								Change							March 31,								Change
		2021				2020				Unit				%			2021				2020				Unit				%
Boxes Harvested:
Early and Mid-Season			1,734				2,266				(532	)		(23.5	)%			2,519				3,146				(627	)		(19.9	)%
Valencias			2,043				2,260				(217	)		(9.6	)%			2,043				2,260				(217	)		(9.6	)%
Total Processed			3,777				4,526				(749	)		(16.5	)%			4,562				5,406				(844	)		(15.6	)%
Fresh Fruit			11				108				(97	)		(89.8	)%			59				203				(144	)		(70.9	)%
Total			3,788				4,634				(846	)		(18.3	)%			4,621				5,609				(988	)		(17.6	)%
Pound Solids Produced:
Early and Mid-Season			9,466				13,091				(3,625	)		(27.7	)%			13,598				17,947				(4,349	)		(24.2	)%
Valencias			11,670				13,661				(1,991	)		(14.6	)%			11,670				13,661				(1,991	)		(14.6	)%
Total			21,136				26,752				(5,616	)		(21.0	)%			25,268				31,608				(6,340	)		(20.1	)%
Average Pound Solids per Box
Early and Mid-Season			5.46				5.78				(0.32	)		(5.5	)%			5.40				5.70				(0.30	)		(5.3	)%
Valencias			5.71				6.04				(0.33	)		(5.5	)%			5.71				6.04				(0.33	)		(5.5	)%
Price per Pound Solids:
Early and Mid-Season		$	2.30			$	1.70			$	0.60			35.3	%		$	2.28			$	1.74			$	0.54			31.0	%
Valencias		$	2.40			$	1.89			$	0.51			27.0	%		$	2.40			$	1.89			$	0.51			27.0	%

For the six months ended March 31, 2021, the Company harvested approximately 4.6 million boxes of fruit, a decrease of 17.6% from the same period of the prior fiscal year. The decrease was principally related to there being fewer pieces of fruit available on the citrus trees, as well as greater fruit drop being experienced in the current harvest season, as compared to the prior harvest season. The Company, however, as anticipated, has seen an increase in its average realized/blended price per pound solid rise from $1.81 in the prior fiscal year to $2.34 in the current fiscal year, largely due to increased consumption of not-from-concentrate orange juice by retail consumers since March 2020, as evidenced by published Nielsen data. This has resulted in decreased inventory supply levels at Florida citrus juice processors. Based on the latest published Nielsen data for the twenty-four-week period ended March 20, 2021, consumption of not-from-concentrate orange juice by retail consumers increased by 8.4%, compared to the same period in the prior year.

The Company experienced an overall decrease in the blended average pound solids per box, which was 5.54 for the six months ended March 31, 2021, compared to 5.85 for the six months ended March 31, 2020.

The Company’s harvesting activities to date have not been impacted by the coronavirus pandemic, and there have been no disruptions in delivering fruit to the processors. Additionally, to date, the Company has not experienced any material challenges to its operations from COVID-19.

Land Management and Other Operations Division Results

Land Management and Other Operations include lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties and other miscellaneous income.

Income from operations for the Land Management and Other Operations Division for the six months ended March 31, 2021 improved by $0.5 million, compared to the six months ended March 31, 2020. This improvement was primarily due to the Company no longer pursuing its dispersed water storage project, and therefore incurring no water conservation expenses in the six months ended March 31, 2021. For the six months ended March 31, 2020, the Company incurred approximately $0.5 million of water conservation expenses. On September 10, 2020, the Company sold approximately 10,700 acres on the western part of Alico Ranch to the State of Florida. Because the acreage involved in the sale would have been critical to its planned dispersed water storage project, the Company decided to abandon the permit approval process. The Company anticipates it will have no future water conservation expenses incurred relating to the dispersed water storage project.

Management Comment

John Kiernan, President and Chief Executive Officer, commented, “We are encouraged that consumption of not-from concentrate orange juice by retail consumers has remained strong since March 2020, which has led to improved market pricing for both the Early & Mid-Season and Valencia season fruit.

“As we have continued through the fiscal year 2021 harvest season, we have seen, along with the entire Florida citrus industry, a decrease in processed box production of both the Early & Mid-Season and Valencia crop, as compared to the same period last year. In the latest published USDA citrus forecast report, the USDA now estimates an approximate 23.3% decline of the total orange crop for the current harvest season, as compared to the prior year. While it has been a disappointing year from a crop production perspective, we anticipate our decline will be substantially lower than the USDA’s estimate with Alico expecting its decline to be in the 15-20% range.

“On April 15, 2021, we were pleased to close the sale of approximately 5,734 acres of Alico Ranch to the State of Florida for approximately $14.4 million. Alico is also engaged with multiple parties for ranch land sale transactions for an aggregate of approximately 15,000 acres, which are under contract or in final negotiations. We believe these transactions will close in fiscal 2021.

“Additionally, effective on May 1, 2021, we modified our fixed-rate term loans with Metlife. The interest rate on these loans has been reduced and quarterly principal payments will no longer be required. Prior to executing this arrangement, in April 2021, Alico prepaid approximately $10.3 million towards these existing fixed-rate term loans, bringing the aggregate balance of these loans down to $70 million, and this principal balance is scheduled to remain fixed until these MetLife fixed-rate loans mature in November 2029 or are refinanced. These modifications are expected to reduce our debt service between $5 million and $6 million per year.”

Mr. Kiernan continued, “While market pricing has stayed strong, box production has continued to decline at a greater rate than anticipated and as a result, we are updating our fiscal 2021 guidance to reflect the effects of this steeper decline. We are also updating our guidance to reflect the impact of the sales transaction with the State of Florida and several pending land transactions which are targeted to close in fiscal 2021.”

Other Corporate Financial Information

General and administrative expense for the six months ended March 31, 2021 was approximately $5.2 million, compared to approximately $5.7 million for the six months ended March 31, 2020. The decrease was attributable in large part to (i) a reduction in stock compensation expense of approximately $0.3 million pertaining to certain stock options that vested in January 2020, which in turn resulted in an acceleration of expense in that quarter; (ii) a reduction in payroll expenses for the six months ended March 31, 2021 of approximately $0.2 million relating to one of the senior managers resigning in December 2019; and (iii) a reduction in pension expense related to the Company’s deferred retirement benefit plan of approximately $0.2 million as a result of the Company terminating such plan and paying out each of the plan participants in August 2020 and, therefore, incurring no further pension costs subsequent to August 2020. Partially offsetting this decrease was the Company incurring approximately $0.2 million in corporate advisory fees in the six months ended March 31, 2021.

Other income (expense), net for the six months ended March 31, 2021 and 2020 was approximately $1.1 million and approximately $(0.2) million, respectively. The shift to other income, net from other expense, net is primarily due a decrease in interest expense of approximately $0.7 million for the six months ended March 31, 2021, as compared to the six months ended March 31, 2020, resulting from the reduction of the Company’s long-term debt due to the making of mandatory principal payments. Additionally, in the six months ended March 31, 2021, the Company recorded gains on sale of real estate, property and equipment and assets held for sale of approximately $3.3 million, relating primarily to the sale of approximately 700 acres from the Alico Ranch to several third parties, and the sale of mineral rights to a third party. For the six months ended March 31, 2020, the Company recognized a gain on sale of real estate, property and equipment and assets held for sale of approximately $2.9 million.

During the six months ended March 31, 2021, the Company received approximately $4.3 million of additional proceeds under the Florida Citrus Recovery Block Grant (“Florida CRBG”) program relating to Hurricane Irma. In aggregate, the Company received approximately $24.5 million of proceeds under the Florida CRBG program. The remaining portion of the funds that are due to Alico under the Florida CRBG program relates to certain crop insurance expenses incurred by the Company, which is estimated to be approximately $2.0 million and is expected to be received in part in fiscal 2021 and the remaining portion in fiscal 2022.

Environmental, Social and Governance Initiatives

The Company has joined with its peers in prioritizing its commitment to improving its Environmental, Social and Governance (“ESG”) initiatives. The Board of Directors has recognized ESG improvement as a critical priority. At the direction of the Board, the Alico management team has formed a Sustainability Task Force, will be naming a Chief Sustainability Officer, and has engaged independent consultants to prepare an initial sustainability report and roadmap. Based upon anecdotal feedback from its largest customers, who regularly evaluate their major suppliers using ESG criteria, Alico believes that its policies, programs, and track record are not properly reflected in the scores and ratings compiled by third party agencies. Through the implementation of these planned ESG initiatives, Alico expects these scores and ratings to improve.

Guidance

The Company is updating its guidance for the fiscal year ended September 30, 2021 to reflect the significantly lower anticipated box production this season. In addition, as a result of the sale of ranch land to the State of Florida last month for approximately $14.4 million, along with other pending ranch land sales transactions that are targeted to close before the end of fiscal year 2021, the Company has updated its EBITDA and Net Income guidance to include the gain on this completed sales transaction and the anticipated gain on pending sales transactions.

• The Company is now projecting net income to increase from its initial projection of between $7.5 million and $10 million to between $33 million and $38.5 million.
• Fiscal year 2021 adjusted net income (after adjusting out for certain of the expected non-recurring items, such as the real estate sales) is expected to decrease from the initial projection of $4.5 million and $6.9 million to between $1.3 million and $3.8 million.
• The Company is now projecting EBITDA to increase from its initial projection of $29 million and $33 million to between $64 million and $72 million.
• Fiscal year 2021 adjusted EBITDA (after adjusting out for certain of the expected non-recurring items, such as the real estate sales) is expected to decrease from the initial projection of $25 million and $28.8 million to between $21.7 million and $25.7 million.

See table below for detail of updated guidance.

Dividend

On April 9, 2021, the Company paid a second quarter cash dividend of $0.18 per share on its outstanding common stock to stockholders of record as of March 26, 2021.

Balance Sheet and Liquidity

The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:

• The Company’s working capital was approximately $27.9 million at March 31, 2021, representing a 2.03 to 1.00 ratio.
• The Company maintains a solid and improving debt to equity ratio. At March 31, 2021, September 30, 2020, and September 30, 2019, the ratios were 0.62 to 1.00, 0.68 to 1.00, and 0.82 to 1.00, respectively. Additionally, after March 31, 2021, the Company made a prepayment of approximately $10.3 million on its fixed-rate term loans, which can be expected to have the effect of further improving the Company’s overall debt to equity ratio.

As of March 31, 2021, the Company had long-term debt, including lines of credit, net of cash and cash equivalents and restricted cash, of approximately $132.5 million.

About Alico

Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Alico’s current expectations about future events and can be identified by terms such as “plans,” “expect,” “may,” “anticipate,” “intend,” “should be,” “will be,” “is likely to,” “believes,” and similar expressions referring to future periods.

Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance, or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to:
changes in laws, regulation and rules, including tax laws and tax rates; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their by-products; increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; market pricing of citrus; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest rates; availability of refinancing; availability of financing for land development activities and other growth and corporate opportunities; onetime events; acquisitions and divestitures
ability to make strategic acquisitions or divestitures; ability to redeploy proceeds from divestitures; ability to consummate selected land acquisitions; ability to take advantage of tax deferral options; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in agricultural land values; impact of the COVID-19 outbreak and coronavirus pandemic on our agriculture operations, including without limitation demand for product, supply chain, health and availability of our labor force, the labor force of contractors we engage, and the labor force of our competitors; other risks related to the duration and severity of the COVID-19 outbreak and coronavirus pandemic and its impact on Alico’s business; the impact of the COVID-19 outbreak and coronavirus pandemic on the U.S. and global economies and financial markets; access to governmental loans and incentives; any reduction in the public float resulting from repurchases of common stock by Alico; changes in equity awards to employees; whether the Company’s dividend policy, including its recent increased dividend amounts, is continued; whether the Company’s cash flow can support and sustain the Company’s dividend policy, including any future increases in dividend amounts; expressed desire of certain of our shareholders to liquidate their shareholdings by virtue of past market sales of common stock, by sales of common stock or by way of future transactions; political changes and economic crises; ability to implement ESG initiatives; competitive actions by other companies; increased competition from international companies; changes in environmental regulations and their impact on farming practices; the land ownership policies of governments; changes in government farm programs and policies and international reaction to such programs; changes in pricing calculations with our customers; fluctuations in the value of the U.S. dollar, interest rates, inflation and deflation rates; length of terms of contracts with customers; impact of concentration of sales to one customer; impact of concentration of sales to one customer; changes in and effects of crop insurance programs, global trade agreements, trade restrictions and tariffs; soil conditions, harvest yields, prices for commodities, and crop production expenses. Other risks and uncertainties include those that are described in Alico’s SEC filings, which are available on the SEC’s website at http://www.sec.gov. Alico undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.

This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.

Investor Contact:

Investor Relations
(646) 277-1254
[email protected]

Richard Rallo
Senior Vice President and Chief Financial Officer
(239) 226-2000
[email protected]

ALICO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts)
		March 31,				September 30,
		2021				2020
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	10,371			$	3,163
Accounts receivable, net			11,009				4,347
Inventories			30,035				40,855
Income tax receivable		—					781
Assets held for sale			2,048				1,366
Prepaid expenses and other current assets			1,443				1,387
Total current assets			54,906				51,899
Restricted cash			—				16,524
Property and equipment, net			369,036				350,061
Goodwill			2,246				2,246
Other non-current assets			2,595				3,207
Total assets		$	428,783			$	423,937
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	11,811			$	3,533
Accrued liabilities			5,118				7,095
Long-term debt, current portion			8,410				9,145
Income taxes payable			888				—
Other current liabilities			761				1,385
Total current liabilities			26,988				21,158
Long-term debt:
Principal amount, net of current portion			134,464				139,106
Less: deferred financing costs, net			(1,068	)			(1,151	)
Long-term debt less current portion and deferred financing costs, net			133,396				137,955
Lines of credit			—				2,942
Deferred income tax liabilities, net			39,728				39,728
Other liabilities			268				372
Total liabilities			200,380				202,155
Commitments and Contingencies (Note 12)
Stockholders’ equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued			—				—
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,513,413 and 7,492,524 shares outstanding at March 31, 2021 and September 30, 2020, respectively			8,416				8,416
Additional paid in capital			19,759				19,685
Treasury stock, at cost, 902,732 and 923,621 shares held at March 31, 2021 and September 30, 2020, respectively			(30,223	)			(30,779	)
Retained earnings			225,028				219,019
Total Alico stockholders’ equity			222,980				216,341
Noncontrolling interest			5,423				5,441
Total stockholders’ equity			228,403				221,782
Total liabilities and stockholders’ equity		$	428,783			$	423,937

ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts)
		Three Months Ended March 31,								Six Months Ended March 31,
		2021				2020				2021				2020
Operating revenues:
Alico Citrus		$	55,268			$	49,801			$	68,194			$	59,976
Land Management and Other Operations			676				714				1,482				1,544
Total operating revenues			55,944				50,515				69,676				61,520
Operating expenses:
Alico Citrus			45,518				43,518				53,665				48,358
Land Management and Other Operations			200				380				388				931
Total operating expenses			45,718				43,898				54,053				49,289
Gross profit			10,226				6,617				15,623				12,231
General and administrative expenses			2,653				2,953				5,181				5,713
Income from operations			7,573				3,664				10,442				6,518
Other (expense) income, net:
Interest expense			(1,089	)			(1,452	)			(2,278	)			(2,996	)
(Loss) gain on sale of real estate, property and equipment and assets held for sale			(17	)			2,838				3,347				2,863
Other income (expense), net			2				12				12				(64	)
Total other (expense) income, net			(1,104	)			1,398				1,081				(197	)
Income before income taxes			6,469				5,062				11,523				6,321
Income tax provision			1,579				1,496				2,829				1,857
Net income			4,890				3,566				8,694				4,464
Net (income) loss attributable to noncontrolling interests			(23	)			5				18				(102	)
Net income attributable to Alico, Inc. common stockholders		$	4,867			$	3,571			$	8,712			$	4,362
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic		$	0.65			$	0.48			$	1.16			$	0.58
Diluted		$	0.65			$	0.48			$	1.16			$	0.58
Weighted-average number of common shares outstanding:
Basic			7,513				7,480				7,508				7,478
Diluted			7,513				7,496				7,508				7,494
Cash dividends declared per common share		$	0.18			$	0.09			$	0.36			$	0.18

ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
		Six Months Ended March 31,
		2021				2020
Net cash provided by operating activities:
Net income		$	8,694			$	4,464
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization			7,708				7,199
Deferred income tax benefit		—					(827	)
Gain on sale of real estate, property and equipment and assets held for sale			(3,347	)			(2,863	)
Impairment of right-of-use asset		—					87
Loss on disposal of long-lived assets			1,200				723
Stock-based compensation expense			630				790
Other		—					(36	)
Changes in operating assets and liabilities:
Accounts receivable			(6,662	)			(3,672	)
Inventories			10,820				11,640
Prepaid expenses			(259	)			(234	)
Income tax receivable			781				—
Other assets			278				(387	)
Accounts payable and accrued liabilities			5,623				(2,061	)
Income taxes payable			888				(2,876	)
Other liabilities			(728	)			(259	)
Net cash provided by operating activities			25,626				11,688
Cash flows from investing activities:
Purchases of property and equipment			(10,336	)			(9,960	)
Acquisition of citrus grove			(18,230	)			—
Net proceeds from sale of real estate, property and equipment and assets held for sale			3,442				2,994
Change in deposits on purchase of citrus trees			240				(57	)
Advances on notes receivables, net			271				87
Other			15				(25	)
Net cash used in investing activities			(24,598	)			(6,961	)
Cash flows from financing activities:
Repayments on revolving lines of credit			(45,247	)			(18,805	)
Borrowings on revolving lines of credit			42,305				85,519
Principal payments on term loans			(5,377	)			(9,820	)
Treasury stock purchases		—					(238	)
Dividends paid			(2,025	)			(1,120	)
Deferred financing costs		—					(23	)
Net cash (used in) provided by financing activities			(10,344	)			55,513
Net (decrease) increase in cash and cash equivalents and restricted cash			(9,316	)			60,240
Cash and cash equivalents and restricted cash at beginning of the period			19,687				23,838
Cash and cash equivalents and restricted cash at end of the period		$	10,371			$	84,078

Non-GAAP Financial Measures

Adjusted EBITDA

(in thousands)

	Three Months Ended March 31,								Six Months Ended March 31,
	2021				2020				2021				2020
Net income attributable to common stockholders	$	4,867			$	3,571			$	8,712			$	4,362
Interest expense		1,089				1,452				2,278				2,996
Income tax provision		1,579				1,496				2,829				1,857
Depreciation, depletion, and amortization		3,857				3,590				7,708				7,199
EBITDA		11,392				10,109				21,527				16,414
Adjustments for non-recurring items:
Impairment of right-of-use asset		—				—				—				87
Employee stock compensation expense (1)		101				327				186				435
Separation agreement expense (2)		—				—				—				104
Corporate advisory fees		201				—				201				—
Federal relief proceeds – Hurricane Irma		(163	)			(163	)			(4,299	)			(4,629	)
Loss (gain) on sale of real estate, property and equipment and assets held for sale		17				(2,838	)			(3,347	)			(2,863	)
Adjusted EBITDA	$	11,548			$	7,435			$	14,268			$	9,548

(1) Includes stock compensation expense for current executives and senior management.
(2) Includes separation expenses for a former senior manager.

Adjusted Net Income (Loss) Per Diluted Common Share

(in thousands)

	Three Months Ended March 31,								Six Months Ended March 31,
	2021				2020				2021				2020
Net income attributable to common stockholders	$	4,867			$	3,571			$	8,712			$	4,362
Adjustments for non-recurring items:
Impairment of right-of-use asset		—				—				—				87
Employee stock compensation expense (1)		101				327				186				435
Separation agreement expense (2)		—				—				—				104
Corporate advisory fees		201				—				201				—
Federal relief proceeds – Hurricane Irma		(163	)			(163	)			(4,299	)			(4,629	)
Loss (gain) on sale of real estate, property and equipment and assets held for sale		17				(2,838	)			(3,347	)			(2,863	)
Tax impact		(49	)			842				1,785				2,044
Adjusted net income (loss) attributable to common stockholders	$	4,974			$	1,739			$	3,238			$	(460	)
Diluted common shares		7,513				7,496				7,508				7,494
Adjusted net income (loss) per diluted common share	$	0.66			$	0.23			$	0.43			$	(0.06	)

(1) Includes stock compensation expense for current executives and senior management.
(2) Includes separation expenses for a former senior manager.

Alico utilizes the non-GAAP measures EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss) per Diluted Common Share among other measures, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA and Adjusted Net Income (Loss) per Diluted Common Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Adjusted Net Income (Loss) per Diluted Common Share is defined as net income adjusted for non-recurring transactions divided by diluted common shares.

Updated Fiscal Year 2021 Guidance
(in thousands)
Updated Adjusted Net Income
	Fiscal Year End
	September 30, 2021
	Revised Projected Range
Net Income attributable to common stockholders	$33,000 – $38,500
Gains on sale of real estate, property and equipment and assets held for sale	$(38,000) – $(42,000)
Federal relief proceeds – Hurricane Irma	$(4,300) – $(4,300)
Tax Impact	$10,600 – $11,600
Adjusted Net Income attributable to common stockholders	$1,300 – $3,800
Updated Adjusted EBITDA
	Fiscal Year End
	September 30, 2021
	Revised Projected Range
Net Income attributable to common stockholders	$33,000 – $38,500
Interest expense	$4,500 – $4,700
Income tax provision	$11,200 – $13,200
Depreciation, depletion and amortization	$15,300 – $15,600
EBITDA	$64,000 – $72,000
Gains on sale of real estate, property and equipment and assets held for sale	$(38,000) – $(42,000)
Federal relief proceeds – Hurricane Irma	$(4,300) – $(4,300)
Adjusted EBITDA	$21,700 – $25,700

 

WOODCLIFF LAKE, N.J. , May 05, 2021 (GLOBE NEWSWIRE) — PowerFleet, Inc. (Nasdaq: PWFL), a global leader and provider of subscription-based wireless IoT and M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, reported results for the first quarter ended March 31, 2021.

First Quarter
2021 Financial Highlights

• Total revenue was $29.0 million.
• High margin, recurring and services revenue was $17.6 million, or 61% of total revenue.
• Services gross margin was 64%, an improvement from 62% in the same year-ago period.
• At quarter end, cash and cash equivalents totaled $41.0 million and $53.2 million of working capital.

First Quarter
2021 and Recent Operational Highlights

• Provided Comasco with an IoT solution for real-time tracing and inventory management of their rented crane parts.
• Pointer by PowerFleet Argentina formed a strategic alliance with Edenred along with its collaboration with BP gas stations to develop and offer comprehensive services for fleet operators.
• Selected by Panhandle Transportation Group (PTG) to monitor and remotely manage refrigerated trailers and cargo through PowerFleet’s reefer solution, the LV-400.
• Chosen by Nucor Tubular Products to improve safety, compliance, and utilization by using PowerFleet’s telematics solutions.
• Signed a deal with McGuire Transportation, a regional dry van trucking company, to upgrade its trailer management solution for its U.S.-based operations.
• Shipped initial 1,000 weight on axle sensor units to American Intermodal Management.
• Commenced migration of 4,500 legacy industrial units to the company’s next-gen hardware platforms and recurring revenue model for one of the world’s largest automotive companies.

Management Commentary
“During the first quarter of 2021 we continued to execute on our strategic roadmap, which is focused on expanding our high-value solution offerings, growing our business in our targeted markets, and continuously increasing our high-margin recurring services revenues,” said Chris Wolfe, PowerFleet CEO. “While we delivered consistent financial results in the quarter, our revenues would have been $1.8 million dollars higher had we not experienced a temporarily supply issue due to a third-party electrical component supplier, which impacted some of our product lines as well as many industries globally. Fortunately, our supply chain acted swiftly to remediate the issue and we have built and shipped many of the impacted products, but not in time to be recognized in Q1.

“From a sales and deployment standpoint, we saw a measurable pick-up in new sales activity across our geographic regions during Q1 and we have a significant backlog and meaningful opportunity pipeline over the near- and mid-term. This recovery is reflected by the several new deals we secured in the first quarter, including NuCor Tubular, Panhandle Transportation Group, and McGuire Transportation. In addition to these wins, we deployed more than 2,000 units for a major container fleet operator. A key initiative this year is to transition our more than 30,000 non-subscription units from our legacy ‘industrial’ solution to our next-gen hardware platforms and onto our recurring revenue model. One major migration we commenced in Q1 was with one of the world’s largest automotive companies, where we began migrating their 4,500 units across 40 sites worldwide.

“Looking forward, our global end markets, legacy product migration efforts, and opportunity pipeline are building momentum. While we are still facing certain headwinds related to the pandemic and electrical subcomponent supply issues, we remain confident in our growth prospects in 2021 and beyond. As the global economy recovers and countries reopen, our robust balance sheet enables us to accelerate our growth initiatives. We are making great strides toward the realization of our long-term financial goals and our vision, which is for PowerFleet to be a major force in the multibillion-dollar global industrial IoT market.”

First Quarter
2021
Financial Results

Total revenue was $29.0 million, compared to $30.8 million in the same year-ago period. The decrease in revenue was related to the reduction in product revenue from Avis, the impact from COVID-19, and temporary product shipment delays related to third-party electrical component issues.

Services revenue was $17.6 million (61% of total revenue), compared to $17.6 million (57% of total revenue) in the same year-ago period. Product revenue, which drives future services revenue, was $11.4 million (39% of total revenue), compared to $13.2 million (43% of total revenue) in the same year-ago period.

Gross profit was $14.5 million (50% of total revenue), compared to $14.9 million (48% of total revenue) in the same year-ago period. Service gross profit was $11.2 million (64% of total service revenue), compared to $11.0 million (62% of total service revenue) in the same year-ago period. Product gross profit was $3.2 million (29% of total product revenue), compared to $3.9 million (30% of total product revenue) in the same year-ago period.

Selling, general and administrative expenses were $13.6 million, compared to $15.1 million in the same year-ago period. Research and development expenses were $2.7 million, compared to $3.2 million in the same year-ago period.

Net loss attributable to common stockholders totaled $3.0 million or $(0.09) per basic and diluted share (based on 33.3 million weighted average shares outstanding), compared to net loss attributable to common stockholders of $4.5 million or $(0.16) per basic and diluted share in the same year-ago period (based on 29.0 million weighted average shares outstanding).

Non-GAAP net income totaled $61,000 or $0.00 per basic and diluted share (based on 33.3 million weighted average basic shares outstanding and 41.8 million weighted average diluted shares outstanding), an improvement compared to non-GAAP net loss of $1.3 million or $(0.05) per basic and diluted share (based on 29.0 million weighted average basic and diluted shares outstanding) in the same year-ago period (See the section below titled “Non-GAAP Financial Measures” for more information about non-GAAP net income and its reconciliation to GAAP net income/loss).

Adjusted EBITDA, a non-GAAP metric, totaled $1.4 million, compared to adjusted EBITDA of $152,000 in the same year-ago period (See the section below titled “Non-GAAP Financial Measures” for more information about adjusted EBITDA and its reconciliation to GAAP net income/loss).

At quarter-end, the company had $41.0 million in cash and cash equivalents. The Company’s working capital position at quarter-end was $53.2 million.

Investor Conference Call

PowerFleet management will discuss these results and business outlook on a conference call today (Wednesday, May 5, 2021) at 8:00 a.m. Eastern time (5:00 a.m. Pacific time).

PowerFleet management will host the presentation, followed by a question-and-answer session.

U.S. dial-in: 888-506-0062
International dial-in: 973-528-0011
Passcode: 156793

The conference call will be broadcast simultaneously and available for replay in the investor section of the company’s website at ir.powerfleet.com.

If you have any difficulty connecting with the conference call, please contact PowerFleet’s investor relations team at (949) 574-3860.

Non-GAAP Financial Measures

To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), PowerFleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net income (loss), non-GAAP net income (loss) per basic and diluted share and adjusted EBITDA. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors’ overall understanding of PowerFleet’s current financial performance. Specifically, PowerFleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternate to net income or cash flow from operating activities as an indicator of operating performance or liquidity. Because PowerFleet’s method for calculating the non-GAAP measures may differ from other companies’ methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the nearest GAAP measures can be found in the financial tables included in this press release.

PowerFleet, Inc. and Subsidiaries
Reconciliation of GAAP to Adjusted EBITDA Financial Measures
(Unaudited)
	Three Months Ended
	March 31,
	2020				2021
Net loss attributable to common stockholders	$	(4,549,000	)		$	(2,983,000	)
Non-controlling interest		(15,000	)			–
Preferred stock dividend and accretion		1,123,000				1,196,000
Interest (income) expense, net		735,000				458,000
Other (income) expense, net		(2,000	)			–
Income tax (benefit) expense		193,000				473,000
Depreciation and amortization		2,067,000				2,141,000
Stock-based compensation		1,109,000				1,097,000
Foreign currency translation		(642,000	)			(1,019,000	)
Impact of the fair value mark-up of acquired inventory		133,000				–
Adjusted EBITDA	$	152,000			$	1,363,000

PowerFleet, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Net Income (Loss) Financial Measures
(Unaudited)
	Three Months Ended
	March 31,
	2020				2021
Net loss attributable to common stockholders	$	(4,549,000	)		$	(2,983,000	)
Preferred stock dividend and accretion		1,123,000				1,196,000
Other (income) expense, net		(2,000	)			–
Intangible assets amortization expense		1,332,000				1,299,000
Stock-based compensation		1,109,000				1,097,000
Foreign currency translation		(642,000	)			(1,019,000	)
Non-cash portion of income tax expense		188,000				471,000
Impact of the fair value mark-up of acquired inventory		133,000				–
Non-GAAP net income (loss)	$	(1,308,000	)		$	61,000
Non-GAAP net income (loss) – basic	$	(0.05	)		$	0.00
Non-GAAP net income (loss) – diluted	$	(0.05	)		$	0.00
Weighted average common shares outstanding – basic		29,034,000				33,259,000
Weighted average common shares outstanding – diluted		29,034,000				41,771,000

About PowerFleet

PowerFleet® Inc. (NASDAQ: PWFL; TASE: PWFL) is a global leader and provider of subscription-based wireless IoT and M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicles and truck fleets. The company is headquartered in Woodcliff Lake, New Jersey, with offices located around the globe. PowerFleet’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability. Our offerings are sold under the global brands PowerFleet, Pointer, and Cellocator. For more information, please visit www.powerfleet.com, the content of which does not form a part of this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to PowerFleet’s beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond PowerFleet’s control, and which may cause its actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. For example, forward-looking statements include statements regarding prospects for additional customers; potential contract values; market forecasts; projections of earnings, revenues, synergies, accretion, or other financial information; emerging new products; and plans, strategies, and objectives of management for future operations, including growing revenue, controlling operating costs, increasing production volumes, and expanding business with core customers. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the ability to recognize the anticipated benefits of the acquisition of Pointer, which may be affected by, among other things, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for PowerFleet’s products to continue to develop, the possibility that PowerFleet may not be able to integrate successfully the business, operations and employees of I.D. Systems and Pointer, the inability to protect PowerFleet’s intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in PowerFleet’s filings with the Securities and Exchange Commission, including PowerFleet’s annual report on Form 10-K for the year ended December 31, 2019. These risks could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, PowerFleet. Unless otherwise required by applicable law, PowerFleet assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether a result of new information, future events, or otherwise.

PowerFleet Company Contact

Ned Mavrommatis, CFO 
[email protected]
(201) 996-9000 

PowerFleet Investor Contact 
Matt Glover
Gateway Investor Relations
[email protected]  
(949) 574-3860

PowerFleet, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations Data

	Three Months Ended
	March 31,
	2020				2021
	(Unaudited)				(Unaudited)
Revenue:
Products	$	13,208,000			$	11,420,000
Services		17,591,000				17,571,000
		30,799,000				28,991,000
Cost of revenue:
Cost of products		9,302,000				8,152,000
Cost of services		6,631,000				6,369,000
		15,933,000				14,521,000
Gross Profit		14,866,000				14,470,000
Operating expenses:
Selling, general and administrative expenses		15,103,000				13,608,000
Research and development expenses		3,172,000				2,745,000
		18,275,000				16,353,000
Loss from operations		(3,409,000	)			(1,883,000	)
Interest income		14,000				12,000
Interest expense		(750,000	)			(470,000	)
Foreign currency translation of debt		895,000				1,027,000
Other (expense) income, net		2,000				–
Net loss before income taxes		(3,248,000	)			(1,314,000	)
Income tax benefit (expense)		(193,000	)			(473,000	)
Net loss before non-controlling interest		(3,441,000	)			(1,787,000	)
Non-controlling interest		15,000				–
Net loss		(3,426,000	)			(1,787,000	)
Accretion of preferred stock		(168,000	)			(168,000	)
Preferred stock dividend		(955,000	)			(1,028,000	)
Net loss attributable to common stockholders	$	(4,549,000	)		$	(2,983,000	)
Net loss per share – basic and diluted	$	(0.16	)		$	(0.09	)
Weighted average common shares outstanding – basic
and diluted		29,034,000				33,259,000

PowerFleet, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet Data

	As of
	December 31, 2020			March 31, 2021
				(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	18,127,000		$	40,951,000
Restricted cash		308,000			308,000
Accounts receivable, net		24,147,000			26,564,000
Inventory, net		12,873,000			13,160,000
Deferred costs – current		3,128,000			2,960,000
Prepaid expenses and other current assets		6,184,000			6,538,000
Total current assets		64,767,000			90,481,000
Deferred costs – less current portion		2,233,000			1,677,000
Fixed assets, net		8,804,000			8,465,000
Goodwill		83,344,000			83,344,000
Intangible assets, net		31,276,000			29,977,000
Right of use asset		9,700,000			9,809,000
Severance payable fund		4,056,000			3,890,000
Deferred tax asset		1,506,000			889,000
Other assets		3,115,000			3,068,000
Total assets	$	208,801,000		$	231,600,000
LIABILITIES
Current liabilities:
Short-term bank debt and current maturities of long-term debt	$	5,579,000		$	5,658,000
Accounts payable and accrued expenses		20,225,000			20,923,000
Deferred revenue – current		7,339,000			8,356,000
Lease liability – current		2,755,000			2,303,000
Total current liabilities		35,898,000			37,240,000
Long-term debt, less current maturities		23,179,000			20,956,000
Deferred revenue – less current portion		6,006,000			5,554,000
Lease liability – less current portion		7,050,000			7,630,000
Accrued severance payable		4,714,000			4,505,000
Other long-term liabilities		674,000			640,000
Total liabilities		77,521,000			76,525,000
MEZZANINE EQUITY
Convertible redeemable Preferred stock: Series A		51,992,000			52,160,000
STOCKHOLDERS’ EQUITY		–			–
Total Powerfleet, Inc. stockholders’ equity		79,213,000			102,842,000
Non-controlling interest		75,000			73,000
Total equity		79,288,000			102,915,000
Total liabilities and stockholders’ equity	$	208,801,000		$	231,600,000

PowerFleet, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flow Data

	Three Months Ended March 31,
	2020				2021
					(Unaudited)
Cash flows from operating activities (net of net assets acquired):
Net loss	$	(3,426,000	)		$	(1,787,000	)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Non-controlling interest		(15,000	)			–
Inventory reserve		63,000				74,000
Stock based compensation expense		1,109,000				1,357,000
Depreciation and amortization		2,067,000				2,144,000
Right-of-use assets, non-cash lease expense		731,000				768,000
Bad debt expense		262,000				268,000
Other non-cash items		(8,000	)			88,000
Deferred taxes		193,000				473,000
Changes in:
Operating assets and liabilities		1,781,000				(2,601,000	)
Net cash (used in) provided by operating activities		2,757,000				784,000
Cash flows from investing activities:
Proceeds from sale of property and equipment		16,000				–
Capital expenditures		(471,000	)			(597,000	)
Net cash used in investing activities		(455,000	)			(597,000	)
Cash flows from financing activities:
Net proceeds from stock offering		–				26,867,000
Payment of preferred stock dividend		–				(1,028,000	)
Repayment of long-term debt		(479,000	)			(1,315,000	)
Short-term bank debt, net		104,000				91,000
Proceeds from exercise of stock options		127,000				70,000
Purchase of treasury stock upon vesting of restricted stock		(232,000	)			(347,000	)
Net cash (used in) provided by financing activities		(480,000	)			24,338,000
Effect of foreign exchange rate changes on cash and cash equivalents		(1,611,000	)			(1,701,000	)
Net increase in cash, cash equivalents and restricted cash		211,000				22,824,000
Cash, cash equivalents and restricted cash – beginning of period		16,703,000				18,435,000
Cash, cash equivalents and restricted cash – end of period	$	16,914,000			$	41,259,000

 

BERKELEY HEIGHTS, N.J., May 05, 2021 (GLOBE NEWSWIRE) — Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; “Cyclacel” or the “Company”), a biopharmaceutical company developing innovative medicines based on cancer cell biology, will announce first quarter financial results and provide a business update on Wednesday, May 12, 2021. The company will host a conference call and live webcast at 4:30 p.m. Eastern Daylight Time on the same day.

Conference call information:

Conference ID: 2763358

US/Canada call: (877) 493-9121 / international call: (973) 582-2750 

US/Canada archive: (800) 585-8367 / international archive: (404) 537-3406 

Code for live and archived conference call is 2763358 Webcast link.

For the live and archived webcast, please visit the Corporate Presentations page on the Cyclacel website at www.cyclacel.com.

 About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, transcriptional regulation and mitosis biology. The transcriptional regulation program is evaluating fadraciclib, a CDK2/9 inhibitor, and the anti-mitotic program CYC140, a PLK1 inhibitor, in patients with both solid tumors and hematological malignancies. Cyclacel’s strategy is to build a diversified biopharmaceutical business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information, please visit www.cyclacel.com.

Forward-looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, the efficacy, safety and intended utilization of Cyclacel’s product candidates, the conduct and results of future clinical trials, plans regarding regulatory filings, future research and clinical trials and plans regarding partnering activities. Factors that may cause actual results to differ materially include the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated with reliance on outside financing to meet capital requirements, and the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts
Company:	Paul McBarron, (908) 517-7330, [email protected]
Investor Relations:	LifeSci Advisors, LLC, Irina Koffler, (646) 970-4681, [email protected]

© Copyright 2021 Cyclacel Pharmaceuticals, Inc. All Rights Reserved. The Cyclacel logo and Cyclacel® are trademarks of Cyclacel Pharmaceuticals, Inc. 

NEW YORK, May 05, 2021 (GLOBE NEWSWIRE) — IN8bio, Inc. (“IN8bio” or “the Company”), a clinical-stage biopharmaceutical company focused on discovery and development of innovative gamma-delta T cell therapies utilizing its DeltEx platform, announced that the Company’s co-founder and Chief Scientific Officer, Lawrence Lamb, Ph.D., Scientist, Lei Ding, Ph.D., and Vice President, Operations and Innovation, Kate Rochlin, Ph.D., will be participating in the following virtual scientific conferences.

Event:	Multi-Functional Cell Therapies Summit
Date:	Wednesday, May 5th
Presentation:	Oral presentation – Using the DNA Damage Response as a Mechanism of Cell Targeting with Alkylating Agents, Gamma-Delta T Cells, and Logical Additions to Combination Therapy
Presenter:	Dr. Lawrence Lamb
Time:	10:00 to 10:30 a.m. EDT

Event:	Cancer Progress 2021 – Cello Health
Date:	Wednesday, May 5th
Presentation:	Panel discussion – Validating New Platforms: Clinical Pain, Commercial Gain
Presenter:	Dr. Lawrence Lamb
Time:	3:00 to 4:15 p.m. EDT

Event:	Frontiers in Cancer Immunotherapy 2021 – New York Academy of Sciences
Date:	May 14th
Presentation:	Poster presentation – Chemotherapy Resistant Gamma-Delta T cells Therapy (DeltEx DRI) for the Treatment of Solid Tumor
Presenter:	Dr. Kate Rochlin
Time:	1:44 p.m. EDT

Event:	Advanced Therapies 2021
Date:	Wednesday, May 19th
Presentation:	Panel discussion – CAR-T model for gamma-delta T cell therapy for GBM
Presenter:	Dr. Lei Ding
Time:	11:30 a.m. EDT
Date:	Wednesday, May 19th
Presentation:	Panel discussion – Stratification of patients for immunotherapy and CAR-T
Presenter:	Dr. Lawrence Lamb
Time:	12:30 p.m. EDT

About IN8bio

IN8bio is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of gamma-delta T cell product candidates for solid and liquid tumors. Gamma-delta T cells embody properties of both the innate and adaptive immune systems and can intrinsically differentiate between healthy and diseased tissue. IN8bio’s DeltEx platform employs allogeneic, autologous and genetically modified approaches to develop cell therapies, designed to effectively identify and eradicate tumor cells. IN8bio is currently conducting two investigator-initiated Phase 1 clinical trials for its lead gamma-delta T cell product candidates: INB-200 for the treatment of newly diagnosed glioblastoma and INB-100 for the treatment of patients with leukemia undergoing hematopoietic stem cell transplantation. IN8bio also has a broad portfolio of preclinical programs focused on addressing other solid tumor types. For more information about IN8bio and its programs, please visit www.IN8bio.com.

Forward Looking Statements

Certain statements herein concerning the Company’s future expectations, plans and prospects, including without limitation, the Company’s current expectations regarding the advancement of its product candidates through preclinical studies and clinical trials and the prospects for such candidates and underlying technology, constitute forward-looking statements. The use of words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “future,” “potential,” or “continue,” the negative of these and other similar expressions are intended to identify such forward looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company’s control. Consequently, actual future results may differ materially from the anticipated results expressed in such statements. Specific risks which could cause actual results to differ materially from the Company’s current expectations include: scientific, regulatory and technical developments; failure to demonstrate safety, tolerability and efficacy; final and quality controlled verification of data and the related analyses; expense and uncertainty of obtaining regulatory approval, including from the U.S. Food and Drug Administration; and the Company’s reliance on third parties, including licensors and clinical research organizations. Do not place undue reliance on any forward-looking statements included herein, which speak only as of the date hereof and which the Company is under no obligation to update or revise as a result of any event, circumstances or otherwise, unless required by applicable law.

Company Contact:

IN8bio, Inc.
Kate Rochlin, Ph.D.
+1 646.600.6GDT (6438)
[email protected]

Investors:

Solebury Trout
Julia Balanova
+ 1 646.378.2936
[email protected]

Media:

Burns McClellan, Inc.
Ryo Imai / Robert Flamm, Ph.D.
+1 212.213.0006 – ext. 315 / 364
[email protected] / [email protected]

CHESTERBROOK, Pa., May 05, 2021 (GLOBE NEWSWIRE) — Trevena, Inc. (Nasdaq: TRVN), a biopharmaceutical company focused on the development and commercialization of novel medicines for patients with central nervous system (CNS) disorders, today announced that it will release its financial results for the first quarter ended March 31, 2021, prior to the market open on Thursday, May 6, 2021.

Company management will host a conference call and webcast to discuss its financial results and provide a general business update at 8:00 a.m. ET on the same day, featuring remarks by Carrie Bourdow, President and Chief Executive Officer, Bob Yoder, SVP and Chief Commercial Officer, Mark Demitrack, SVP and Chief Medical Officer, and Barry Shin, SVP and Chief Financial Officer.

Title:	Trevena First Quarter 2021 Financial Results Conference Call & Webcast
Date:	Thursday, May 6, 2021
Time:	8:00 a.m. ET
Conference  Call Details:	Toll-Free: 855-465-0180 International: 484-756-4313 Conference ID: 3884579
The conference call will be webcast live from the company’s website and will be available via the following links:
Webcast:	https://www.trevena.com/investors/events-presentations/ir-calendar
	https://edge.media-server.com/mmc/p/7iphx7qe

The webcast should be accessed 15 minutes prior to the conference call start time. A replay of the webcast will be available following the conclusion of the live broadcast and will be accessible on the company’s website.

About Trevena

Trevena, Inc. is a biopharmaceutical company focused on the development and commercialization of innovative medicines for patients with CNS disorders. The Company has one approved product in the United States, OLINVYK™ (oliceridine) injection, indicated in adults for the management of acute pain severe enough to require an intravenous opioid analgesic and for whom alternative treatments are inadequate. The Company’s novel pipeline is based on Nobel Prize winning research and includes four differentiated investigational drug candidates: TRV250 for the acute treatment of migraine, TRV734 for maintenance treatment of opioid use disorder, TRV045 for epilepsy and chronic neuropathic pain, and TRV027 for acute respiratory distress syndrome and abnormal blood clotting in COVID-19 patients.

For more information, please visit www.Trevena.com.

Investor Contact:

Dan Ferry
Managing Director
LifeSci Advisors, LLC
[email protected]
(617) 430-7576

PR & Media Contact:

Sasha Bennett
Director
Clyde Group
[email protected]
(239) 248-3409

NEW YORK, May 05, 2021 (GLOBE NEWSWIRE) — Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”) today issued the following statement in response to a report issued on May 4, 2021, by self-proclaimed short seller Culper Research:

A recent report by Culper Research contains numerous false and misleading statements about our company. It seems clear to us that this report is an attempt by a short seller to negatively impact and manipulate Aterian’s share price solely for its own benefit. We caution shareholders from making investment decisions based on this report.

We are proud of our track record of building and acquiring brands, our successful M&A strategy, our proprietary AIMEE platform and our financial performance. The report contains many mischaracterizations and factual inaccuracies regarding our Company, including but not limited to those addressed below:

Healing Solutions Revenue. Our investment thesis for the Healing Solutions acquisition excluded revenue from hand sanitizer products, as we had previously announced at closing. Our purchase agreement, which was filed with the SEC and is readily available to all shareholders, stated that hand sanitizers were deemed to be “Excluded SKU Inventory” which we were given the option to purchase. Furthermore hand sanitizer products represented approximately $11 million in net revenue for 2020 for Healing Solutions rather than the $40.2 million claimed by the short seller. We remain excited about and focused on the core opportunity with Healing Solutions moving forward.

Technology. Aterian has developed a leading technology-enabled software platform, AIMEE, that together with the Company’s dedicated and talented team, continues to drive strong financial and operational performance for our business. The significant investments that we have made in AIMEE over the past seven years have allowed the Company to reduce its ratio of fixed costs as a percentage of revenue from 44% in 2016 to 12.8% in 2020, and increase its revenue per employee from $0.3 million in 2016 to $1.2 million in 2020.

Business Performance. Over the past seven years, we have established a strong track record of organically launching and scaling brands and products. By relentlessly focusing on growth while improving our products’ contribution margin, we achieved a CAGR of 79% since 2016 and delivered positive adjusted EBITDA in the second quarter of 2020 (and for the calendar year 2020). Building on this strong organic track record and proof that we could scale revenue efficiently through our platform, we accelerated our M&A strategy with confidence. To that end, we have acquired over $150 million in revenue since the third quarter of 2020 while absorbing minimal fixed costs from those acquisitions. We continue to reinvest portions of the cash flow generated by new acquisitions into all parts of our business as we believe the opportunity to grow and scale our Company on a global scale is paramount to delivering long-term value to shareholders.

M&A Diligence and Governance. We have a comprehensive approach to M&A and due diligence and stand behind our robust process for our acquisitions, which have continued to perform within our projected financial ranges and metrics. We conduct extensive financial, legal and other due diligence, including background checks, on our targets. Although we identified the historical legal concerns raised in the report, they were unrelated to the acquired businesses. Our focus was and continues to be on acquiring high performing businesses that offer opportunities for growth. In addition, these transactions were structured as asset purchases only and therefore the founders did not become employees of Aterian. To further limit any influence, we entered into voting agreements with the shareholders from the 9830 Macarthur LLC acquisition (“the Smash Acquisition”) and the Healing Solutions acquisition, which both require they vote their shares in accordance with the recommendations of the Company’s Board of Directors. As part of the Company’s IPO, we also entered into a voting agreement with Mr. Yaney. Mr. Yaney is neither an employee nor an affiliate of the Company.

Marketing Practices. Our mission is to create and acquire best-in-class products and brands that are available to customers across the world’s largest marketplaces. Similar to other consumer product companies, discounts, rebates, coupons and other promotions are an important part of our marketing strategy but success is predicated on much more. Success on marketplaces requires understanding of the market data, high quality sourcing, agile supply chain, digital marketing expertise and strong customer service. Our investment in technology is designed to streamline each of these moving parts efficiently. Aterian’s product launch strategy includes discounts, rebates, sweepstakes and promotions on social media and other channels. Our 2020 spend on promotions and discounts was approximately equal to 3.5% of the Company’s net revenue.

Required Audited Financials for the Smash Acquisition. As it relates to the Smash Acquisition, the Company expects to file the audited financial statements and required pro-forma disclosures on Form 8-K/A with the Securities Exchange Commission on or before May 21, 2021. The Company anticipates the audited results to be in line with the previously disclosed financial results for the Smash Acquisition.

About Aterian, Inc.

Aterian, Inc. (Nasdaq: ATER) is a leading technology-enabled consumer products platform that builds, acquires, and partners with best-in-class e-commerce brands by harnessing proprietary software and an agile supply chain to create top selling consumer products. The Company’s cloud-based platform, Artificial Intelligence Marketplace Ecommerce Engine (AIMEE™), leverages machine learning, natural language processing and data analytics to streamline the management of products at scale across the world’s largest online marketplaces, including Amazon, Shopify and Walmart. Aterian has thousands of SKUs across 12 owned and operated brands and sells products in multiple categories, including home and kitchen appliances, health and wellness, beauty and consumer electronics.

Forward Looking Statements

All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our prospects, technology and strategies and expectations regarding the audited and pro forma financial statements for the Smash Acquisition.

These forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, those related to the impact of the COVID-19 pandemic including its impact on consumer demand, our cash flows, financial condition and revenue growth rate; auditing delays; our supply chain including sourcing, manufacturing, warehousing and fulfillment, including with respect to existing disruptions we are experiencing due to the COVID- 19 pandemic; our ability to manage expenses, working capital and capital expenditures efficiently; our business model and our technology platform; our ability to disrupt the consumer products industry; our ability to grow market share in existing and new product categories, our ability to successfully complete PPE transactions; our ability to generate profitability and stockholder value; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety and regulatory concerns; reliance on third party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and our ability to integrate any such companies and technologies with our business; and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), all of which you may obtain for free on the SEC’s website at www.sec.gov.

Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Investor Contact:

Ilya Grozovsky
Director of Investor Relations & Corp. Development
Aterian, Inc.
[email protected]
917-905-1699

Media Contact:

Andrew Blecher
Communications
[email protected]

Company reports first quarter total revenue of $12.0 million

First quarter 2021 XHANCE net revenue of $11.0 million increased 55% compared to first quarter 2020

Conference call and webcast to be held today at 8:00 a.m. Eastern Time

YARDLEY, Pa., May 05, 2021 (GLOBE NEWSWIRE) — Optinose (NASDAQ:OPTN), a pharmaceutical company focused on patients treated by ear, nose and throat (ENT) and allergy specialists, today reported financial results for the quarter ended March 31, 2021, and provided operational updates.

“XHANCE net revenues increased 55% in the first quarter of 2021 compared to first quarter 2020,” stated CEO Peter Miller. “We believe this is strong growth, particularly in the context of the continuing impact of the COVID-19 pandemic on the number of patients visiting physician offices and pandemic-related restrictions that continue to limit in-person detailing of physician offices by our territory managers. Improvement to the business environment is just one factor that we believe will support XHANCE growth in the remainder of 2021. XHANCE growth and the completion of our clinical trials evaluating it for treatment of chronic sinusitis are the two most important objectives for our company right now and we are focused on achieving those as a team.”

First Quarter 2021 and Recent Highlights

Total and New XHANCE Prescriptions

The number of XHANCE^® (fluticasone propionate) prescriptions increased by 30% from 56,100 in the first quarter 2020 to 72,600 in the first quarter 2021.

The number of new prescriptions for XHANCE increased by 16% from 22,300 in the first quarter of 2020 to 25,900 in the first quarter of 2021.

First Quarter 2021 Financial Results

Total revenues

The Company generated $11.0 million in net product revenues from sales of XHANCE during the three-month period ended March 31, 2021. In addition, the Company generated $1.0 million of licensing revenue during the three-month period ended March 31, 2021. Total revenue for the three-month period ended March 31, 2021 was $12.0 million.

Costs and expenses and net loss

For the three-month period ended March 31, 2021, research and development expenses were $5.2 million and selling, general and administrative expenses were $27.2 million. The net loss for the period was $26.1 million, or $0.49 per share (basic and diluted).

Cash

The Company had cash and cash equivalents of $116.0 million as of March 31, 2021.

Corporate Guidance

XHANCE Net Revenue and Average Net Revenue per Prescription

The Company expects XHANCE net revenues for the full year of 2021 to be at least $80 million. In addition, the Company expects full year 2021 XHANCE net revenue per prescription to increase compared to full year 2020 XHANCE net revenue per prescription of $185.

Operating Expenses

The Company expects total GAAP operating expenses (selling, general & administrative expenses and research & development expenses) for 2021 to be in the range of $137 – $142 million, of which the Company expects stock-based compensation to be approximately $10 million.

Chronic Sinusitis Clinical Trials

The Company now expects to complete enrollment in the first of its clinical trials evaluating XHANCE as a potential treatment for Chronic Sinusitis in third quarter 2021 with top line results in first quarter 2022. The Company expects top line results from the other trial in the first half of 2022.

OPN-019

In March 2021, the Company announced its plan to conduct a randomized, proof of concept study in subjects who have tested positive for SARS-CoV-2 infection, are recently infected, and who have mild or no symptoms. This pilot study will evaluate both the magnitude and duration of viral load reduction after a single dose of OPN-019. Regulatory approval to initiate the pilot study is pending. The Company expects top-line results from this study in second quarter 2021.

The Company is focused on supporting the initial stages of OPN-019 development within its current operating expense guidance and intends to seek grants, partnerships, and/or other sources of capital to fund future development.

Company to Host Conference Call

Members of the Company’s leadership team will host a conference call and presentation to discuss financial results and corporate updates beginning at 8:00 a.m. Eastern Time today.

To participate on the conference call, please dial (866) 916-4761 from the U.S. or +1 (409) 216-6496 from outside the U.S. In addition, following the completion of the call, a telephone replay will be accessible until May 12, 2021 by dialing (855) 859-2056 from the U.S. or +1 (404) 537-3406 from outside the U.S. and entering conference ID #5283136. A simultaneous webcast of the call and presentation can be accessed by visiting the Investors section of Optinose’s website at www.optinose.com. In addition, a replay of the webcast will be available on the Company website for 60 days following the event.

OptiNose, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except share and per share data)
(Unaudited)
	Three Months Ended
	March 31,
	2021				2020
Revenues:
Net product revenues	$	10,960			$	7,062
Licensing revenues	$	1,000			—
Total revenues	11,960				7,062
Costs and expenses:
Cost of product sales	1,740				1,356
Research and development	5,225				4,932
Selling, general and administrative	27,184				27,060
Total costs and expenses	34,149				33,348
Loss from operations	(22,189		)		(26,286		)
Other expense	3,864				2,570
Net loss	$	(26,053	)		$	(28,856	)
Net loss per share of common stock, basic and diluted	$	(0.49	)		$	(0.63	)
Weighted average common shares outstanding, basic and diluted	52,997,730				45,906,162

OptiNose, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands)
	March 31,				December 31,
	2021				2020
	(unaudited)
Cash and cash equivalents	$	115,984			$	144,156
Other assets	41,962				44,657
Total assets	$	157,946			$	188,813
Total current liabilities	$	44,781			$	52,172
Long-term debt, net	125,584				125,202
Other liabilities	4,248				4,651
Total stockholders’ equity	(16,667		)		6,788
Total liabilities and stockholders’ equity	$	157,946			$	188,813

About Optinose

Optinose is a specialty pharmaceutical company focused on serving the needs of patients cared for by ear, nose and throat (ENT) and allergy specialists. Optinose has offices in the U.S. and Norway. To learn more, please visit www.optinose.com or follow us on Twitter and LinkedIn.

Cautionary Note on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements that are not historical facts are hereby identified as forward-looking statements for this purpose and include, among others, statements relating to the potential for continued or increased XHANCE prescription and net revenue growth and potential growth drivers; the Company’s plans to seek approval for a follow-on indication for XHANCE for the treatment of chronic sinusitis and the potential benefits of such indication; the expectation of completing enrollment in the first of its chronic sinusitis trials in the third quarter of 2021 with top-line results in the first quarter of 2022 and top line results from the second trial in the first half of 2022; projected average net revenue per prescription for full year 2021; projected XHANCE net revenue for full year 2021; projected Company GAAP operating expenses and stock-based compensation for 2021; development, timing of data, and funding plans for OPN-019 and the potential benefits of OPN-019; and other statements regarding the Company’s future operations, financial performance, financial position, prospects, objectives and other future events. Forward-looking statements are based upon management’s current expectations and assumptions and are subject to a number of risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements including, among others: impact of, and uncertainties caused by the COVID-19 pandemic; physician and patient acceptance of XHANCE; the Company’s ability to maintain adequate third-party reimbursement for XHANCE (market access); market opportunities for XHANCE may be smaller than expected; the Company’s ability to grow XHANCE prescriptions and net revenues; uncertainties and delays relating to the enrollment, completion, and results of clinical trials; unanticipated costs and expenses; the Company’s ability to satisfy the conditions for an additional draw under the Pharmakon note purchase agreement and its ability to comply with the covenants and other terms of the agreement; risks and uncertainties relating to intellectual property; and the risks, uncertainties and other factors discussed under the caption “Item 1A. Risk Factors” and elsewhere in the Company’s most recent Form 10-K and Form 10-Q filings with the Securities and Exchange Commission – which are available at www.sec.gov. As a result, you are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements made in this press release speak only as of the date of this press release, and the Company undertakes no obligation to update such forward-looking statements, whether as a result of new information, future developments or otherwise.

Optinose Investor Contact

Jonathan Neely
[email protected]
267.521.0531

WATERLOO, Ontario, May 05, 2021 (GLOBE NEWSWIRE) — Plum, the talent management platform provider that reveals the potential in every employee, today announced the upcoming release of its latest module. Known as the Plum Match Criteria Catalog, it brings enterprise scalability to Plum’s proprietary Match Criteria, which provides a scientific method for companies to accurately identify – and continuously update – the behavioral requirements of each job. Using a streamlined 8-minute survey, the Plum Match Criteria automates the behavioral job analysis process and scientifically identifies the “soft skills” required for any job in an organization using proven Industrial/Organizational (I/O) psychology.

The new Match Criteria Catalog centralizes all of an organization’s Match Criteria into one readily searchable database so that enterprises always have access to up-to-date behavioral competency profiles for any given job. This new paradigm for job match criteria streamlines the talent management of full and part-time jobs, as well as gig and contract positions while ensuring the best-fit candidates can be considered for every role.

Historically, job descriptions with lists of credentials, such as years of experience in certain titles, were used as the primary basis of matching talent to opportunities. These job descriptions are usually outdated, arbitrary and even overtly biased. For example, filtering candidates for a job based on having a four-year degree from a university eliminates diverse candidates who might otherwise be qualified and have the potential to succeed in the role.

With the Plum Match Criteria, job descriptions are bolstered by objective data that predict each individual’s potential to succeed in a role. As experienced during the pandemic, certain behavioral characteristics, such as the ability to work autonomously in a remote setting, can be crucial to productivity, and ultimately, success. Without Plum’s Match Criteria, traditional job descriptions lack scientific support for the behaviors, such as communication, innovation and teamwork, that will predict an individual’s ability to fully thrive in a job.

“Job descriptions have been broken for a long time,” said Plum CEO Caitlin MacGregor. “They aren’t designed to taking a forward-looking view of talent. In a world of constant disruption, organizations need a way to scientifically quantify the behaviors required for roles so that they can more accurately assess talent for opportunities, as business needs continue to evolve rapidly. The lockdown of 2020 has upended labor models, making the ability to predict talent potential far more important than relying on a rear-view mirror approach.”

By clearly articulating the behavioral requirements for every role, Plum’s Match Criteria allow organizations to easily match talent to opportunities throughout the employee lifecycle – from hiring to internal mobility and succession planning.

“With Plum’s Match Criteria, relevant organizational stakeholders are able to align on the behavioral competencies that are needed for every role and update them in real-time,” said Rosa Venditti, HR Development Coordinator, Guillevin International. “As our business adapts to new ways of working, roles inevitably change. Using Plum’s Match Criteria, we can get clear on what we need in a successful candidate, making it easier to surface qualified candidates and help us put the right person in the role.”

Madeline Laurano, founder of Aptitude Research, a research-based analyst firm, said, “Job descriptions form the basis of so many talent decisions, and yet many organizations struggle with keeping them relevant, accurate and useful. Being able to identify and continuously update which behavioral traits are required for a job gives HR professionals a powerful new tool in their toolbelt to tackle an age-old problem and create better talent outcomes.”

For more information about the Plum Match Criteria module and Plum’s Talent Resilience Platform, please visit https://www.plum.io.

About Plum

At Plum, we believe in identifying and cultivating the unique potential that exists within every employee. We help innovative enterprise organizations use data-driven insights to make unbiased talent decisions across the employee lifecycle and unlock potential deep within their workforces. Our Talent Resilience Platform is the only talent management platform that applies the science of Industrial/Organizational (I/O) psychology to the entire workforce at scale to quantify human potential while enabling organizations to identify the key behavioral indicators required to be successful in any given role. With these insights at their fingertips, customers can quickly and accurately map people to jobs where they’ll thrive, so their businesses can thrive too.

Note to editors: Trademarks and registered trademarks referenced herein remain the property of their respective owners.

Media Contact:
Kate Achille
The Devon Group for Plum
[email protected]