Market Newsdesk

May 5, 2021 7:05 am

Timbercreek Financial Announces 2021 First Quarter Results

TORONTO, May 05, 2021 (GLOBE NEWSWIRE) — Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three months ended March 31, 2021 (“Q1 2021”).

Q1 2021 Highlights

Delivered distributable income of $15.3 million and paid $14.0 million in dividends to shareholders
Generated $0.19 in distributable income per share and delivered a 91.2% distributable income payout ratio
Basic and diluted earnings per share was $0.19 and $0.18, respectively. Adjusted earnings per share was $0.17 for both basic and diluted.
Funded $157.6 million on new and existing mortgages versus repayments of $152.9 million. This maintained portfolio size of net mortgage investments at $1,147.6 million in Q1 2021. The transaction volume resulted in a Q1 turnover ratio of 13.7% versus 19.6% in Q4
Maintained conservative portfolio risk position focused on income-producing commercial real estate
- 90.3% of mortgage investment portfolio are first mortgages
- 86.7% of mortgage investment portfolio is invested in cash-flowing properties
- 68.8% weighted average loan-to-value
- 7.3% quarterly weighted average interest rate on net mortgage investment

We are pleased to report a strong start to 2021 as distributable income reached $0.19 per share, representing a 91.2% dividend payout ratio,” said Blair Tamblyn, CEO of Timbercreek Financial. “This was the highest DI per share over the past five quarters and reflects solid top-line interest income as well as healthy lender fees on both new and renewal transactions. Our portfolio remains well positioned and largely unaffected by COVID, reflecting our focus on income-producing assets and significant multi-family residential exposure. While the market for these multi-family assets remains competitive, Timbercreek is fortunate to have a strong industry presence and deep borrower and broker relationships that continue to provide a strong pipeline of new business as we look ahead in 2021.

Quarterly Comparison

*$ millions*	Q1 2021			Q1 2020			Q4 2020

Net Mortgage Investments	$	1,147.6		$	1,191.1		$	1,143.1
Enhanced Return Portfolio Investments	$	87.4		$	78.0		$	91.6

Net Investment Income	$	22.4		$	24.0		$	24.0
Income from Operations	$	19.4		$	20.3		$	3.9
Net Income and comprehensive Income	$	15.0		$	7.4		$	(1.6	)
–Adjusted Net Income and comprehensive Income	$	14.1		$	13.7		$	13.0
Distributable Income	$	15.3		$	14.4		$	14.6
Dividends to Shareholders	$	14.0		$	14.4		$	14.0

*$ per share*	Q1 2021			Q1 2020			Q4 2020

Dividends per share	$	0.17		$	0.17		$	0.17
Distributable Income per share	$	0.19		$	0.17		$	0.18
Earnings per share	$	0.19		$	0.09		$	(0.02	)
–Adjusted Earnings per share	$	0.17		$	0.16		$	0.16

Payout Ratio on Distributable Income	91.2		%	99.9		%	95.4			%
Payout Ratio on Earnings per share	93.1		%	193.6		%	n/a
–Payout Ratio on Adjusted Earnings per share	98.8		%	104.8		%	107.2			%

*Net Mortgage Investments*	Q1 2021			Q1 2020			Q4 2020

Weighted Average Loan-to-Value	68.8		%	69.6		%	68.5			%
Weighted Average Remaining Term to Maturity	1.0 yr			1.3 yr			1.0 yr
First Mortgages	90.3		%	93.1		%	90.3			%
Cash-Flowing Properties	86.7		%	85.2		%	84.9			%
Rental Apartments	51.2		%	54.2		%	52.3			%
Floating Rate Loans with rate floors (at quarter end)	76.3		%	75.7		%	78.1			%

Weighted Average Interest Rate
For the quarter ended	7.3		%	7.2		%	7.2			%
Weighted Average Lender Fee
New and Renewed	0.9		%	0.8		%	0.7			%
New Net Mortgage Investment Only	1.0		%	1.1		%	1.5			%

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Thursday, May 6, 2021 1:00 p.m. (ET) which will be followed by a question and answer period with analysts. To join the call:

	https://timbercreekfinancial.adobeconnect.com/tfq12021/
	Participant Toll Free Dial-In Number: (855) 223-7310
	Participant International Dial-In Number: (647) 788-4930
	Conference ID Number: 3398999

The playback of the conference call will also be available on www.timbercreekfinancial.com following the call.

About the Company

Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while generating strong risk-adjusted yields for investors. Further information is available on our website, www.timbercreekfinancial.com.

Non-IFRS Measures

The Company prepares and releases financial statements in accordance with IFRS. As a complement to results provided in accordance with IFRS, the Company discloses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS (collectively the “non-IFRS measures”). These non-IFRS measures are further described in Management’s Discussion and Analysis (“MD&A”) available on SEDAR. The Company has presented such non-IFRS measures because the Manager believes they are relevant measures of the Company’s ability to earn and distribute cash dividends to shareholders and to evaluate its performance. The following non-IFRS financial measures should not be construed as alternatives to total net income and comprehensive income or cash flows from operating activities as determined in accordance with IFRS as indicators of the Company’s performance.

Certain statements contained in this news release may contain projections and “forward looking statements” within the meaning of that phrase under Canadian securities laws. When used in this news release, the words “may”, “would”, “should”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “objective” and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Company’s current views, beliefs, assumptions and intentions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, those risks disclosed in the Company’s public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The Company does not intend to nor assumes any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.

SOURCE: Timbercreek Financial

For further information, please contact:

Timbercreek Financial
Blair Tamblyn, CEO
Tracy Johnston, CFO
Karynna Ma, Vice President, Investor Relations

1-844-304-9967
www.timbercreekfinancial.com

May 5, 2021 7:05 am

Hayward Holdings Announces First Quarter Fiscal Year 2021 Financial Results

Hayward Holdings Announces First Quarter Fiscal Year 2021 Financial Results

Continued Strong Demand Drives Sales Growth And Margin Expansion; Structural Trends Support 2021 Guidance And Long-Term Growth Outlook

FIRST QUARTER FISCAL 2021 HIGHLIGHTS

Net sales increased 96% year-over-year to $334.4 million
Net Income improved to $36.9 million from a net loss of $10.4 million year-over-year
Adjusted Net Income increased to $63.6 million from $14.3 million year-over-year
Adjusted EBITDA increased 200% year-over-year to $107.3 million; Adjusted EBITDA margin expanded 1,110 basis points to 32.1%

FULL YEAR FISCAL 2021 GUIDANCE HIGHLIGHTS

Net sales growth of 40% to 45%
Adjusted EBITDA of $360 million to $390 million; up 55% to 68% year-over-year

BERKELEY HEIGHTS, N.J.–(BUSINESS WIRE)–
Hayward Holdings, Inc. (“Hayward”) (NYSE: HAYW), a global designer, manufacturer and marketer of a broad portfolio of pool equipment and associated automation systems, today announced financial results for the first quarter ended April 3, 2021 of its fiscal year 2021.

CEO COMMENTS

“We are very pleased to report exceptional results following our recent initial public offering,” commented Kevin Holleran, Hayward’s Chief Executive Officer. “During the first quarter we experienced tremendous demand for our pool equipment as investment in the outdoor living space remained a focal point for consumers. Hayward’s agile manufacturing capabilities, supply chain advantages, strong competitive positioning and innovative product offering allowed us to accelerate production capacity and to be well positioned to capitalize on the strong demand environment. As we look forward, we believe we will deliver strong results given favorable market dynamics, a strong backlog of new pool builds, a growing installed base, increased usage, impact of current price increases, and product upgrades.”

FIRST QUARTER FISCAL 2021 CONSOLIDATED RESULTS

Net sales increased by 96% to $334.4 million for the first quarter of fiscal 2021. Net sales growth was primarily the result of higher volumes, as residential pool equipment sales continued to benefit from strong demand for pool upgrades and increasing new pool construction, an acceleration of outdoor living trends and increased pricing.

Gross profit increased by 112% to $159.9 million for the first quarter of fiscal 2021. Gross profit margin increased 340 basis points to 47.8%. The increase in gross margin was driven by higher sales volumes, a favorable mix of higher margin sales and manufacturing leverage, partially offset by inflationary cost increases.

Selling, general, and administrative (“SG&A”) expenses increased by 54% to $66.5 million for the first quarter of fiscal 2021. As a percentage of net sales, SG&A decreased 550 basis points to 19.9%, compared to the prior year period. Research, development, and engineering expenses were essentially flat at $4.8 million for the first quarter of fiscal 2021.

Operating income increased by 533% to $79.8 million for the first quarter of fiscal 2021. The increase in operating income was driven by higher net sales and improved operating leverage partially offset by increased SG&A related to volume and IPO costs.

Net interest expense decreased by 7% to $18.3 million for the first quarter of fiscal 2021 due to reduced interest rates on our floating rate debt and a comparative reduction in the use of our ABL Facility in the first quarter of fiscal 2021. Additionally, we incurred $5.8 million of debt extinguishment costs during the first quarter of fiscal 2021, associated with the $356 million debt repayment made on March 19, 2021 with proceeds from our IPO.

During the quarter we incurred an income tax expense of $15.2 million compared to a tax benefit of $3.0 million for the prior year period.

Net Income increased by 455% to $36.9 million for the first quarter of fiscal 2021. Adjusted Net income increased by 344% to $63.6 million.

Adjusted EBITDA increased by 200% to $107.3 million for the first quarter of fiscal 2021. Adjusted EBITDA margin expanded 1,110 basis points to 32.1%. Margin expansion was primarily driven by higher net sales and operating leverage.

Undistributed earnings, used as the numerator in our EPS computation, is reduced by a non-cash charge due to the beneficial conversion feature related to the redemption of Class A shares for common shares. Such non-cash charge is treated as a deemed dividend which in turn reduces undistributed earnings. There is no current or future income statement impact.

FIRST QUARTER FISCAL 2021 SEGMENT RESULTS

North America

Net sales increased by 105% to $271.5 million for the first quarter of fiscal 2021. The increase was driven by higher sales of residential pool equipment and increased pricing.

Segment income increased by 280% to $85.8 million for the first quarter of fiscal 2021. Adjusted segment income increased by 220% to $95.8 million.

Europe & Rest of World

Net sales increased by 66% to $62.9 million for the first quarter of fiscal 2021. The increase was primarily driven by continued strong demand for pool products and a favorable impact from foreign currency exchange.

Segment income increased by 166% to $14.9 million for the first quarter of fiscal 2021. Adjusted segment income increased by 147% to $15.8 million.

BALANCE SHEET and LIQUIDITY

Net debt to Adjusted EBITDA for the last twelve months was 3.3 times compared to 5.2 times as of December 31, 2020. The reduction in total debt and leverage reflects the repayments of our debt using the proceeds from our March 2021 IPO.

As of April 3, 2021, Hayward had cash and cash equivalents of $13.8 million and approximately $183.0 million available for future borrowings under our ABL Facility.

OUTLOOK

Hayward is providing its outlook for the full year fiscal 2021. Hayward expects net sales growth of 40% to 45% year-over-year, and Adjusted EBITDA of $360 million to $390 million, or a growth range of 55% to 68% year-over-year. The financial outlook reflects strong first quarter results, a robust order file providing sales visibility, continued strength across product categories, and sustained market demand for the full year 2021.

Reconciliation for the forward-looking full year fiscal 2021 Adjusted EBITDA outlook is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. Hayward management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to Hayward’s outlook.

CONFERENCE CALL INFORMATION

Hayward will hold a conference call to discuss the results today, Wednesday, May 5, 2021 at 9:00 a.m. (ET).

To access the live conference call, please register for the call in advance by visiting http://www.directeventreg.com/registration/event/8708016. Registration will also be available during the call. After registering, a confirmation e-mail will be sent including dial-in details and a unique conference call code for entry. To ensure you are connected for the full call please register at least 10 minutes before the start of the call.

Interested investors and other parties can also listen to a webcast of the live conference call by logging onto the Investor Relations section of the company’s website at https://investor.hayward.com/events-and-presentations/default.aspx. An earnings presentation will be posted to the Investor Relations section of the company’s website prior to the conference call.

For those unable to listen to the live conference call, a replay will be available approximately two hours after the call through the archived webcast on the Hayward website or by dialing (800) 585-8367 or (416) 621-4642. The conference ID for the replay is 8708016. The replay will be available until 11:59 p.m. Eastern Time on May 19, 2021.

ABOUT HAYWARD HOLDINGS, INC.

Hayward Holdings, Inc. (NYSE: HAYW) is a global designer, manufacturer and marketer of a broad portfolio of pool equipment and associated automation systems. Hayward designs, manufactures and markets a full line of innovative, energy-efficient pool and spa equipment, with brands including AquaVac^®, AquaRite^®, ColorLogic^®, Navigator^®, OmniLogic^®, OmniHub™, TriStar^®, Super Pump^®, TurboCell^®, pHin™, CAT Controllers^®, HCP Pumps and Saline C^® Series.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This earnings release contains forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by, and information currently available to management. These statements include, but are not limited to, statements about the Company’s financial position; business plans and objectives; general economic and industry trends; operating results; and working capital and liquidity and other statements contained in this presentation that are not historical facts. When used in this presentation, words such as “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to us are intended to identify forward-looking statements. These statements reflect management’s current views with respect to future events, are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements.

The Company has based these forward-looking statements largely on management’s current expectations and projections about future events and financial trends that management believes may affect the Company’s business, financial condition and results of operations. Important factors that could affect the Company’s future results and could cause those results or other outcomes to differ materially from those indicated in the forward-looking statements include the following: our ability to execute on our growth strategies and expansion opportunities; our ability to maintain favorable relationships with suppliers; our relationships with and the performance of distributors, builders, buying groups, retailers and servicers who sell our products to pool owners; competition from national and global companies, as well as lower cost manufacturers; impacts on our business from the sensitivity of our business to seasonality and unfavorable economic and business conditions; our ability to identify emerging technological and other trends in our target end markets; our ability to develop, manufacture and effectively and profitably market and sell our new planned and future products; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; our ability to attract and retain senior management and other qualified personnel; regulatory changes and developments affecting our current and future products; volatility in currency exchange rates; our ability to service our existing indebtedness and obtain additional capital to finance operations and our growth opportunities; impacts on our business from political, regulatory, economic, trade, and other risks associated with operating foreign businesses; our ability to establish and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing, misappropriating or otherwise violating the intellectual property rights of others; the impact of material cost and other inflation; the impact of changes in laws, regulations and administrative policy, including those that limit US tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; impacts on our business from the COVID-19 pandemic; and other risks and uncertainties set forth under “Risk Factors” in the prospectus for the Company’s initial public offering.

The forward-looking statements in this presentation represent management’s views as of the date of this presentation. Unless required by United States federal securities laws, the Company neither intends nor assumes any obligation to update these forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations.

NON-GAAP FINANCIAL MEASURES

This earnings release includes certain financial measures not presented in accordance with the generally accepted accounting principles in the United States (“GAAP”), including adjusted net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted segment income, adjusted segment income margin and net debt. These financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income (loss) or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Hayward Holdings, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, dollars in millions)

	April 3, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	13.8		$	114.9
Accounts receivable, net of allowances of $1.4 and $1.4, respectively	349.1			140.2
Inventories, net	159.4			145.3
Prepaid expenses	10.8			10.3
Other current assets	14.9			13.7
Total current assets	548.0			424.4
Property, plant, and equipment, net of accumulated depreciation of $56.3 and $51.9, respectively	142.1			142.3
Goodwill	919.4			920.3
Trademark	736.0			736.0
Customer relationships, net	264.0			271.5
Other intangibles, net	103.8			106.7
Other non-current assets	7.0			5.9
Total assets	$	2,720.3		$	2,607.1

Liabilities, Redeemable Stock and Stockholders’ Equity
Current liabilities
Current portion of the long-term debt	$	2.1		$	2.8
Accounts payable	75.0			69.6
Accrued expenses and other liabilities	138.0			141.8
Income taxes payable	19.5			4.4
Total current liabilities	234.6			218.6
Long-term debt, net	991.8			1,300.3
Deferred tax liabilities, net	274.9			273.6
Other non-current liabilities	12.3			10.9
Total liabilities	1,513.6			1,803.4
Commitments and contingencies
Redeemable stock
Class A stock $0.001 par value, no shares authorized, issued, or outstanding at April 3, 2021; 1,500,000 shares authorized, 872,598 issued and 869,823 outstanding at December 31, 2020	—			594.5
Class C stock $0.001 par value, no shares authorized, issued, or outstanding at April 3, 2021 and 100 shares authorized, issued, and outstanding at December 31, 2020	—			—

Stockholders’ equity
Common stock $0.001 par value, 750,000,000 authorized; 231,120,757 issued and outstanding at April 3, 2021; 3,846,960 issued and 2,772,900 outstanding at December 31, 2020	0.2			—
Additional paid-in capital	1,052.7			10.3
Common stock in treasury; 4,698,584 and 4,340,310 at April 3, 2021 and December 31, 2020, respectively	(3.9		)	(3.7		)
Retained earnings	154.4			203.0
Accumulated other comprehensive income (loss)	3.3			(0.4		)
Total stockholders’ equity	1,206.7			209.2
Total liabilities, redeemable stock and stockholders’ equity	$	2,720.3		$	2,607.1

Hayward Holdings, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited, dollars in millions, except per share data)

	Three Months Ended
	April 3, 2021			March 28, 2020
Net sales	$	334.4		$	170.2
Cost of sales	174.5			94.6
Gross profit	159.9			75.6
Selling, general, and administrative expenses	66.5			43.3
Research, development, and engineering	4.8			4.7
Acquisition and restructuring related expense	—			5.5
Amortization of intangible assets	8.8			9.5
Operating income	79.8			12.6
Interest expense, net	18.3			19.6
Loss on extinguishment of debt	5.8			—
Other expense, net	3.6			6.4
Total other expense	27.7			26.0
Income (loss) from operations before income taxes	52.1			(13.4		)
Provision (benefit) for income taxes	15.2			(3.0		)
Net income (loss)	$	36.9		$	(10.4	)

Comprehensive income, net of tax
Net income (loss)	$	36.9		$	(10.4	)
Foreign currency translation adjustments, net of tax expense of $1.1 million and net of tax benefit of $3.1 million, respectively	1.7			(11.1		)
Change in fair value of derivatives, net of tax expense of $.6 million and net of tax benefit of $2.0 million, respectively	1.8			(7.0		)
Comprehensive income (loss)	$	40.5		$	(28.5	)

Income (loss) per common share
Basic	$	(0.85	)	$	(8.80	)
Diluted	$	(0.85	)	$	(8.80	)

Weighted average common shares outstanding
Basic	57,377,822			1,204,555
Diluted	57,377,822			1,204,555

Hayward Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, dollars in millions, except per share data)

	Three Months Ended
	April 3, 2021			March 28, 2020
Cash flows from operating activities
Net income (loss)	$	36.9		$	(10.4	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
Depreciation	4.7			4.6
Amortization of intangible assets	10.4			10.8
Amortization of deferred debt issuance costs	1.4			1.3
Stock-based compensation	10.6			0.7
Deferred income taxes	(0.3		)	1.3
Increase (decrease) in allowance for bad debts	—			(0.1		)
Loss on debt extinguishment	5.8			—
Accounts receivable	(210.0		)	(102.5		)
Inventories	(15.4		)	(6.5		)
Other current and non-current assets	(0.3		)	1.9
Accounts payable and accrued expenses and other liabilities	24.4			1.1
Net cash (used in) provided by operating activities	(131.8		)	(97.8		)

Cash flows from investing activities
Purchases of property, plant, and equipment	(4.8		)	(3.9		)
Purchases of intangibles	(0.2		)	(0.4		)
Proceeds from settlements of investment currency hedge	0.4			0.4
Net cash (used in) provided by investing activities	(4.6		)	(3.9		)

Cash flows from financing activities
Proceeds from issuance of common stock from IPO	377.4			—
IPO stock issuance costs	(25.8		)	—
Proceeds from issuance of Class A common stock	0.3			0.1
Payments of long-term debt	(364.6		)	(3.5		)
Net change in revolving credit facility	48.8			152.9
Payments of capital leases	(0.2		)	—
Purchase of common stock for treasury	(0.2		)	(2.0		)
Net cash (used in) provided by financing activities	35.7			147.5
Effect of exchange rate changes on cash and cash equivalents	(0.4		)	(0.6		)
Change in cash and cash equivalents and restricted cash	(101.1		)	45.2
Cash and cash equivalents and restricted cash, beginning of period	114.9			47.2
Cash and cash equivalents and restricted cash, end of period	$	13.8		$	92.4

Supplemental disclosures of cash flow information
Cash paid-interest	$	16.9		$	12.0
Cash paid-income taxes	$	0.1		$	0.8

Total Segment Income to Income from Operations Reconciliation

The following table presents a reconciliation of segment income to income from operations before income taxes (in millions):

	Three Months Ended
	April 3, 2021		March 28, 2020
Total segment income	$	100.7	$	28.2
Corporate expense, net	12.1		0.6
Acquisition and restructuring related expense	—		5.5
Amortization of intangible assets	8.8		9.5
Operating income	79.8		12.6
Interest expense, net	18.3		19.6
Loss on extinguishment of debt	5.8		—
Other expense, net	3.6		6.4
Total other expense	27.7		26.0
Income (loss) from operations before income taxes	$	52.1	$	(13.4	)

Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
(Non-GAAP Reconciliation)

Following is a reconciliation from net income to adjusted EBITDA (in millions):

	Three Months Ended						Increase (Decrease)			Percentage Change
	April 3, 2021			March 28, 2020			Increase (Decrease)			Percentage Change
Net income (loss)	$	36.9		$	(10.4	)	$	47.3		(454.8	)%
Depreciation	4.7			4.6			0.1			2.2	%
Amortization	10.4			10.9			(0.5		)	(4.6	)%
Interest expense	18.3			19.6			(1.3		)	(6.6	)%
Income taxes	15.2			(3.0		)	18.2			n/m
Loss on extinguishment of debt	5.8			—			5.8			n/m
EBITDA	91.3			21.7			69.6			320.7	%
Stock-based compensation ^(a)	10.6			0.7			9.9			n/m
Sponsor management fees^(b)	0.1			0.2			(0.1		)	(50.0	)%
Currency exchange items ^(c)	3.8			6.1			(2.3		)	(37.7	)%
Acquisition and restructuring related expense, net ^(d)	0.4			7.0			(6.6		)	(94.3	)%
Other^(e)	1.1			0.1			1.0			n/m
Total Adjustments	$	16.0		$	14.1		$	1.9		13.5	%
Adjusted EBITDA	$	107.3		$	35.8		$	71.5		199.7	%
Adjusted EBITDA margin	32.1		%	21.0		%

(a)		Represents non-cash stock-based compensation expense related to equity awards issued and includes the post IPO vesting of certain performance based stock options and restricted stock awards for the three months ended April 3, 2021
(b)		Represents discretionary fees paid to our Sponsors for management services rendered pursuant to a management agreement with the Company. These payments ceased as of the effective date of our initial public offering on March 12, 2021.
(c)		Represents non-cash mark to market gains on foreign currency contracts.
(d)		Adjustments in the three months ended March 28, 2020 primarily include $5.5 million of business restructuring related costs, $0.8 million of severance and retention costs, and $1.3 million of operating losses related to an early stage product business acquired in 2018 that is being phased out in 2021. Adjustments in the three months ended April 3, 2021 is mostly related to the same early stage product business previously mentioned.
(e)		Includes expenses incurred in preparation for our initial public offering and transaction related bonuses for the three months ended April 3, 2021.

Adjusted Segment Income Reconciliation
(Non-GAAP Reconciliation)

Following is a quarterly reconciliation from segment income to adjusted segment income (in millions):

	Three Months Ended
	April 3, 2021			March 28, 2020
Segment income	$	100.7		$	28.2
Depreciation	4.7			4.4
Amortization	1.6			1.3
Stock-based compensation	4.2			0.5
Currency exchange items	—			0.4
Acquisition and restructuring related expense, net ^(a)	0.4			1.9
Other ^(b)	—			(0.4		)
Total Adjustments	10.9			8.1
Adjusted segment income	$	111.6		$	36.3
Adjusted segment income margin	33.4		%	21.3		%

(a)		Includes non-recurring severance expenses, and operating losses of approximately $1.3 million related to an early stage product business acquired in 2018 that Is being phased out in 2021 for the three months ended March 28, 2020, compared to a $0.4 million operating loss for the three months ended April 3, 2021.
(b)		Includes professional fees, additional health and safety expenses related to Covid-19, and other miscellaneous costs we believe are not representative of our ongoing business operations for the three months ended March 28, 2020.

Following is a reconciliation from segment income to adjusted segment income for North America (in millions):

	Three Months Ended
	April 3, 2021			March 28, 2020
Segment income	$	85.8		$	22.6
Depreciation	4.3			4.1
Amortization	1.6			1.3
Stock-based compensation	3.7			0.4
Acquisition and restructuring related expense, net ^(a)	0.4			1.9
Other ^(b)	—			(0.4		)
Total Adjustments	10.0			7.3
Adjusted segment income	$	95.8		$	29.9
Adjusted segment income margin	35.3		%	22.6		%

(a)		Includes non-recurring severance expenses, and operating losses of approximately $1.3 million related to an early stage product business acquired in 2018 that is being phased out in 2021 for the three months ended March 28, 2020, compared to a $0.4 million operating loss for the three months ended April 3, 2021
(b)		Includes professional fees, additional health and safety expenses related to Covid-19, and other miscellaneous costs we believe are not representative of our ongoing business operations for the three months ended March 28, 2020.

Following is a reconciliation from segment income to adjusted segment income for Europe & Rest of World (in millions):

	Three Months Ended
	April 3, 2021			March 28, 2020
Segment income	$	14.9		$	5.6
Depreciation	0.4			0.3
Stock-based compensation	0.5			0.1
Currency exchange items ^(a)	—			0.4
Total Adjustments	0.9			0.8
Adjusted segment income	$	15.8		$	6.4
Adjusted segment income margin	25.1		%	16.9		%

(a)

Represents currency exchange impact.

Adjusted Net Income Reconciliation
(Non-GAAP Reconciliation)

Following is a reconciliation of Net Income to Adjusted Net Income (in millions):

Adjusted Net Income Year over Year Comparison	Three Months Ended
	April 3, 2021			March 28, 2020			$ Change			% Change
Net Income	$	36.9		$	(10.4	)	$	47.3		454.8	%

Adjustments and Amortization:
EBITDA Adjustments		16.0			14.1			1.9		13.5	%
Loss on extinguishment of debt		5.8			0.0			5.8		—	%
Amortization		10.4			10.9			(0.5	)	(4.6	) %
Tax Effect		(9.3	)		(5.6	)		(3.7	)	65.3	%

Pro Forma Adjustment:
Interest Savings		5.4			6.9			(1.5	)	(21.7	) %
Tax Effect		(1.6	)		(1.6	)		0.0		0.9	%
Adjusted Net Income	$	63.6		$	14.3		$	49.3		344.3	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005367/en/

Investor Relations Contact:

Hayward Investor Relations:

908-288-9706

[email protected]

Media Relations Contact:

Lisa Wolford

917-846-0881

[email protected]

KEYWORDS: New Jersey United States North America

INDUSTRY KEYWORDS: Chemicals/Plastics Other Construction & Property Residential Building & Real Estate Manufacturing Construction & Property Other Manufacturing Landscape

MEDIA:

May 5, 2021 7:05 am

BioCryst to Present at Upcoming Investor Conferences

RESEARCH TRIANGLE PARK, N.C., May 05, 2021 (GLOBE NEWSWIRE) — BioCryst Pharmaceuticals, Inc. (Nasdaq:BCRX) today announced that the company will present at the Bank of America 2021 Healthcare Conference on Wednesday, May 12, 2021 at 12:30 p.m. ET and the 2021 RBC Capital Markets Global Healthcare Conference on Wednesday, May 19, 2021 at 1:20 p.m. ET. Both are being conducted as virtual conferences.

Links to a live audio webcast and replay of these presentations may be accessed in the Investors section of BioCryst’s website at http://www.biocryst.com.

About BioCryst Pharmaceuticals

BioCryst Pharmaceuticals discovers novel, oral, small-molecule medicines that treat rare diseases in which significant unmet medical needs exist and an enzyme plays a key role in the biological pathway of the disease. Oral, once-daily ORLADEYO™ (berotralstat) is approved in the United States, European Union, and Japan for the prevention of HAE attacks in adults and pediatric patients 12 years and older, and under regulatory review for approval in the United Kingdom. BioCryst has several ongoing development programs including BCX9930, an oral Factor D inhibitor for the treatment of complement-mediated diseases, BCX9250, an ALK-2 inhibitor for the treatment of fibrodysplasia ossificans progressiva, and galidesivir, a potential treatment for Marburg virus disease and Yellow Fever. RAPIVAB^® (peramivir injection), a viral neuraminidase inhibitor for the treatment of influenza, has received regulatory approval in the U.S., Canada, Australia, Japan, Taiwan and Korea. Post-marketing commitments for RAPIVAB are ongoing. For more information, please visit the company’s website at www.biocryst.com.

BCRXW

Investors:

John Bluth
+1 919 859 7910
[email protected]

Media:

Catherine Collier Kyroulis
+1 917 886 5586
[email protected]

May 5, 2021 7:05 am

New Senior Announces First Quarter 2021 Results

New Senior Announces First Quarter 2021 Results

NEW YORK–(BUSINESS WIRE)–
New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE: SNR) announced today its results for the quarter ended March 31, 2021.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

Net loss of $7.6 million, or $(0.09) per diluted share
Total same store net operating income (“NOI”) of $30.2 million; total same store cash NOI of $29.5 million
Total same store cash NOI decreased 16.0% versus first quarter 2020
Adjusted Funds from Operations (“AFFO”) of $11.5 million, or $0.14 per diluted share, consistent with the Company’s guidance for the quarter
Normalized Funds Available for Distribution (“Normalized FAD”) of $9.7 million, or $0.11 per diluted share

FIRST QUARTER 2021 & RECENT BUSINESS HIGHLIGHTS

Delivered first quarter 2021 occupancy, cash NOI and AFFO per share results that were in line with the Company’s guidance for the quarter
Vaccine distribution within the Company’s portfolio is now largely complete as 100% of communities have had access to the vaccine
As vaccine distribution has progressed, COVID-19 cases have fallen to near-zero levels with 1 active resident case as of May 3 and only 4 new resident cases reported in April
Sequential occupancy trends improved significantly throughout the first quarter of 2021 – January ending occupancy was down 80bps, February ending occupancy was down 60bps and March ending occupancy was down 20bps
April ending occupancy grew by 40bps versus March, marking the first month of occupancy growth since the pandemic began
Successfully completed the previously announced transition of 21 properties to Atria Senior Living (“Atria”) on April 1
Declared dividend of $0.065 per common share
Issued second quarter 2021 guidance based on latest trends and results

Susan Givens, President & Chief Executive Officer of the Company commented, “More than a year after the pandemic began, we are cautiously optimistic that current trends are signaling the start of a potential recovery. We are encouraged to see COVID-19 cases within our portfolio falling significantly as the vaccine has been widely distributed at our communities. Monthly occupancy trends have improved for three consecutive months, and in April our portfolio had the first month of occupancy growth since the start of the pandemic. After such a challenging year, particularly for the population that our industry serves, we believe that the senior housing industry is well positioned to benefit from a strong recovery.”

FIRST QUARTER 2021 RESULTS

Dollars in thousands, except per share data
	For the Quarter Ended March 31, 2021						For the Quarter Ended March 31, 2020
	Amount		Per Basic Share		Per Diluted Share		Amount		Per Basic Share		Per Diluted Share
GAAP (Unaudited)
Net income (loss) attributable to common stockholders	$	(7,607)	$	(0.09)	$	(0.09)	$	5,239	$	0.06	$	0.06

Non-GAAP (Unaudited)
NOI	$	30,248		N/A		N/A	$	35,525		N/A		N/A
FFO		8,282		0.10		0.10		2,783		0.03		0.03
AFFO		11,541		0.14		0.14		14,099		0.17		0.17
Normalized FFO		9,615		0.12		0.11		13,535		0.16		0.16
Normalized FAD		9,683		0.12		0.11		12,234		0.15		0.15

FIRST QUARTER 2021 GAAP RESULTS

New Senior recorded a GAAP net loss of $7.6 million, or $(0.09) per diluted share, for the first quarter of 2021, compared to a GAAP net income of $5.2 million, or $0.06 per diluted share, for the first quarter of 2020. The year-over-year decrease was primarily driven by the gain on sale of real estate of $20.0 million realized in the first quarter of 2020 as a result of the disposition of the 28 AL/MC properties.

FIRST QUARTER 2021 PORTFOLIO PERFORMANCE

Dollars in thousands

Same Store Cash NOI – First Quarter

Properties

1Q 2020

1Q 2021

YoY

IL Properties

102

$ 33,637

$ 27,967

(16.9%)

CCRC

1,450

1,490

2.7%

Total Portfolio

103

$ 35,087

$ 29,457

(16.0%)

DIVIDEND

Effective May 3, 2021, our board of directors declared a cash dividend on our common stock of $0.065 per share for the quarter ended March 31, 2021. The dividend is payable on June 18, 2021 to stockholders of record on June 4, 2021.

FIRST QUARTER 2021 OVERVIEW

As of March 31, 2021, we owned a portfolio of 102 Independent Living (“IL”) properties and one Continuing Care Retirement Community (“CCRC”). Approximately 10,000 residents live in our 103 properties, which were managed by three different operators and one tenant during the quarter.

COVID-19 Update

Property status
- As the rate of new COVID-19 cases has declined and the vaccine rollout has progressed, our operators have focused on safely lifting restrictions, restoring community services, and increasing resident engagement and activity
- A majority of our properties are operating in a manner largely consistent with the pre-COVID-19 environment, including expanded dining services (up to 75% capacity), full activities programs, and full transportation services

Known cases
- As of May 3, our operators reported 3 active cases across 3 properties (1 resident, 2 associates)
- Only 12 new cases were reported in April, down 95% from the peak of 260 in December; only 4 of the 12 new cases were residents

Vaccine status
- As of May 3, 100% of the properties in our portfolio have had access to the vaccine and 91% have completed all planned vaccine clinics
- Vaccine participation has continued to trend near 80% for residents and 50% for associates

Occupancy

1Q 2020

2Q 2020

3Q 2020

4Q 2020

1Q 2021

Feb-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

Ending Occupancy⁽¹⁾

87.4%

84.9%

83.3%

81.8%

80.2%

88.7%

81.8%

81.0%

80.4%

80.2%

80.8%

Sequential Change

(130bps)

(250bps)

(160bps)

(150bps)

(160bps)

–

(70bps)

(80bps)

(60bps)

(20bps)

40bps

1) Information through March 2021 represents 1Q21 same store portfolio of 102 assets; information for April 2021 represents 2Q21 same store portfolio, which excludes 21 properties transitioned to Atria on 4/1/21. April 2021 ending occupancy for the 1Q21 same store portfolio increased 10bps sequentially.

Occupancy trends for the first quarter of 2021:
- Ending occupancy fell by 160bps versus prior quarter
  - Monthly occupancy trend improved significantly throughout the quarter, consistent with declining COVID-19 cases and progress on the vaccine rollout
- Both leads and move-ins surpassed average 2019 volume in March for the first time since the pandemic began
- Move-outs trended higher during the quarter as increased COVID-19 cases in January and February led to elevated non-controllable move-outs (death and higher level of care)
Occupancy trends for the second quarter of 2021:
- April ending occupancy increased by 40bps sequentially, marking the first positive month since the onset of the pandemic
  - Increase driven by continued improvement in move-in volume and a significant decline in move-outs
- Currently expect ending occupancy in the second quarter of 2021 to increase by 120bps to 150bps sequentially, a significant improvement versus the quarterly declines experienced since the start of the pandemic

Expenses & Margin

In the first quarter of 2021, operating expenses decreased 3.2% versus prior year
- The year-over-year decline was driven by reduced spend on occupancy-related and other controllable expenses such as supplies and maintenance
- Notably, the February winter storms impacting much of the United States drove an increase in utilities and insurance expenses, partially offsetting some of the year-over-year decline in other expense line items
- Operating expenses specifically associated with COVID-19 were approximately $0.3 million (less than 1% of total expenses for the quarter); these expenses were down 46% versus prior year and down 45% versus prior quarter
In the first quarter of 2021, NOI margin was 36.1%, down modestly from 39.1% in the fourth quarter of 2020
- The margin compression was driven by the occupancy declines that have been sustained since the start of the pandemic, as well as the February winter storms
- In the near-term margins are expected to be slightly below historical levels as operators focus on driving occupancy growth. Over time, margins are expected to recover to historical levels as occupancy growth continues

NOI & AFFO

In the first quarter of 2021, total same store cash NOI decreased by 16.0% versus the prior year
- Revenue losses driven by occupancy declines from the COVID-19 pandemic continue to be partially offset by lower expenses
AFFO for the first quarter of 2021 was $11.5 million or $0.14 per diluted share
First quarter 2021 total same store cash NOI and AFFO per diluted share were in line with previously provided first quarter guidance

SECOND QUARTER 2021 GUIDANCE

Due to the ongoing uncertainty caused by the pandemic, New Senior will not be providing full year 2021 guidance at this time. However, based on the Company’s financial results to date, as well as the observations and trends discussed above in “First Quarter 2021 Overview,” New Senior is providing second quarter 2021 guidance for occupancy, total same store cash NOI and AFFO per diluted share as follows:


			Second Quarter 2021 Guidance
Total Same Store Properties			82 Properties (81 IL & 1 NNN)
IL Same Store Ending Occupancy: Sequential Change			Up 120bps to 150bps
Total Same Store Cash NOI: YoY Change			Down approx. 15%
AFFO Per Diluted Share			Approx. $0.13

The estimates above are based on a number of assumptions that are subject to change and many of which are outside of the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results. A reconciliation of the Company’s expectations to its projected GAAP measures is included in this press release.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, including more information regarding the COVID-19 pandemic and its impact on our business, please refer to the Company Update and to the Quarterly Supplement, each of which is posted in the Investor Relations section of New Senior’s website, www.newseniorinv.com.

EARNINGS CONFERENCE CALL

Management will host a conference call on May 5, 2021 at 9:00 A.M. Eastern Time. The conference call may be accessed by dialing (888) 317-6003 (from within the U.S.) or (412) 317-6061 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please use entry number “8283283”. A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newseniorinv.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available approximately two hours following the call’s completion through June 5, 2021 by dialing (877) 344-7529 (from within the U.S.) or (412) 317-0088 (from outside the U.S.); please use access code “10155365.”

ABOUT NEW SENIOR

New Senior Investment Group Inc. (NYSE: SNR) is a publicly-traded real estate investment trust with a diversified portfolio of senior housing properties located across the United States. New Senior is one of the largest owners of senior housing properties, with 103 properties across 36 states. More information about New Senior can be found at www.newseniorinv.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding New Senior’s 2021 strategic priorities and expectations with respect to the potential range of 2021 financial results; the expected impact of the COVID-19 pandemic on our business, liquidity, properties, operators and the health systems and populations that we serve; the cost and effectiveness of measures we have taken to respond to the COVID-19 pandemic, including health and safety protocols and system capacity enhancements that are intended to limit the transmission of COVID-19 at our properties; our expected occupancy rates and operating expenses; and the declaration or amount of any future dividend. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties relating to the continuing impact of COVID-19 on our operations and the operation of our facilities, including ongoing cases at certain of our facilities, the speed, geographic reach and duration of the COVID-19 pandemic; the legal, regulatory and administrative developments that occur at the federal, state and local levels; the efficacy of our operators’ infectious disease protocols and prevention efforts; the broader impact of the pandemic on local economies and labor markets; the overall demand for our communities in the recovery period following the pandemic; our ability to successfully manage the asset management by third parties; and market conditions generally which affect demand and supply for senior housing. We believe that the adverse impact that COVID-19 will have on the future operations and financial results at our communities will depend upon many factors, most of which are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of these and other risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual and quarterly reports filed with the Securities and Exchange Commission, which are available on the Company’s website (www.newseniorinv.com). New risks and uncertainties emerge from time to time, and it is not possible for us to predict or assess the impact of every factor that may cause our results to differ materially from those anticipated by any forward-looking statements. Forward-looking statements contained herein, and all statements made in this press release, speak only as of the date of this press release, and the Company expressly disclaims any duty or obligation to release publicly any updates or revisions to any statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.


Consolidated Balance Sheets
(dollars in thousands, except share data)


	March 31, 2021		December 31, 2020
	(Unaudited)		(Note)
Assets
Real estate investments:
Land	$	134,643	$	134,643
Buildings, improvements and other		1,985,648		1,983,363
Accumulated depreciation		(433,249)		(417,455)
Net real estate property		1,687,042		1,700,551
Acquired lease and other intangible assets		7,642		7,642
Accumulated amortization		(2,684)		(2,595)
Net real estate intangibles		4,958		5,047
Net real estate investments		1,692,000		1,705,598
Cash and cash equivalents		24,749		33,046
Receivables and other assets, net		40,023		34,892
Total Assets	$	1,756,772	$	1,773,536

Liabilities, Redeemable Preferred Stock and Equity
Liabilities
Debt, net	$	1,484,996	$	1,486,164
Accrued expenses and other liabilities		52,896		63,886
Total Liabilities		1,537,892		1,550,050

Redeemable preferred stock, par value $0.01 per share with $100 liquidation preference, 200,000 shares authorized, issued and outstanding as of both March 31, 2021 and December 31, 2020		20,247		20,253

Equity
Preferred stock, par value $0.01 per share, 99,800,000 shares (excluding 200,000 shares of redeemable preferred stock) authorized, none issued or outstanding as of both March 31, 2021 and December 31, 2020		–		–
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 83,819,799 and 83,023,970 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		838		830
Additional paid-in capital		908,976		907,577
Accumulated deficit		(707,371)		(694,194)
Accumulated other comprehensive loss		(3,810)		(10,980)
Total Equity		198,633		203,233
Total Liabilities, Redeemable Preferred Stock and Equity	$	1,756,772	$	1,773,536

Note: The consolidated balance sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.


Consolidated Statements of Operations
(dollars in thousands, except share data)

	Three Months Ended March 31,
	2021			2020
			(unaudited)
Revenues
Resident fees and services	$	78,113		$	85,007
Rental revenue		1,583			1,583
Total revenues		79,696			86,590

Expenses
Property operating expense		49,448			51,065
Depreciation and amortization		15,889			17,536
Interest expense		14,353			17,219
General and administrative expense		6,275			5,846
Acquisition, transaction and integration expense		393			133
Loss on extinguishment of debt		–			5,884
Other expense (income)		615			(105)
Total expenses		86,973			97,578
Loss before income taxes		(7,277)			(10,988)
Income tax expense		34			60
Loss from continuing operations		(7,311)			(11,048)
Discontinued Operations:
Gain on sale of real estate		–			19,992
Loss from discontinued operations		–			(3,107)
Discontinued operations, net		–			16,885
Net income (loss)		(7,311)			5,837
Deemed dividend on redeemable preferred stock		(296)			(598)
Net income (loss) attributable to common stockholders	($	7,607)		$	5,239

Basic and diluted earnings per common share: ^(A)
Loss from continuing operations attributable to common stockholders	($	0.09)		($	0.14)
Discontinued operations, net		–			0.20
Net income (loss) attributable to common stockholders	($	0.09)		$	0.06

Weighted average number of shares of common stock outstanding
Basic and Diluted ^(B)		82,815,790			82,386,622

Dividends declared and paid per share of common stock	$	0.07		$	0.13

(A) Basic earnings per share (“EPS”) is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding. The outstanding shares used to calculate the weighted average basic shares exclude 266,139 and 493,599 restricted stock awards, net of forfeitures, for the three months ended March 31, 2021 and 2020, respectively, as those shares were issued but were not vested and therefore, not considered outstanding for purposes of computing basic EPS. Diluted EPS is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period.

(B) Dilutive share equivalents and options were excluded for the three months ended March 31, 2021 and 2020 as their inclusion would have been anti-dilutive given our loss position.


Reconciliation of NOI to Net Income (unaudited)
(dollars in thousands)
	For the Quarter Ended
	March 31, 2021
Total revenues	$	79,696
Property operating expense		(49,448	)
NOI		30,248

Depreciation and amortization		(15,889	)
Interest expense		(14,353	)
General and administrative expense		(6,275	)
Acquisition, transaction and integration expense		(393	)
Other expense		(615	)
Income tax expense		(34	)
Net loss		(7,311	)
Deemed dividend on redeemable preferred stock		(296	)
Net loss attributable to common stockholders	$	(7,607	)


Reconciliation of Net Income to FFO, Normalized FFO, AFFO and Normalized FAD (unaudited)
(dollars and shares in thousands, except per share data)

	For the Quarter Ended
	March 31, 2021
Net loss attributable to common stockholders	$	(7,607)
Adjustments:
Depreciation and amortization		15,889
FFO	$	8,282
FFO per basic share	$	0.10
FFO per diluted share	$	0.10
Acquisition, transaction and integration expense		393
Compensation expense related to transition awards		325
Other expense^(A)		615
Normalized FFO	$	9,615
Normalized FFO per basic share	$	0.12
Normalized FFO per diluted share	$	0.11
Straight-line rental revenue		(95)
Amortization of equity-based compensation		1,760
Amortization of deferred financing costs		957
Amortization of deferred community fees and other		(696)
AFFO	$	11,541
AFFO per basic share	$	0.14
AFFO per diluted share	$	0.14
Routine capital expenditures		(1,858)
Normalized FAD	$	9,683
Normalized FAD per basic share	$	0.12
Normalized FAD per diluted share	$	0.11

Weighted average basic shares outstanding		82,816
Weighted average diluted shares outstanding^(B)		85,389

(A) Primarily includes insurance recoveries and casualty related charges.
(B) Diluted share amounts have been calculated using the treasury stock method.


Reconciliation of Year-over-Year Cash NOI (unaudited)
(dollars in thousands)

	For the Quarter Ended	For the Quarter Ended
	March 31, 2021	March 31, 2020
Total Same Store Cash NOI	$ 29,457	$ 35,087
Straight-line rental revenue	95	134
Amortization of deferred community fees and other	696	304
Total NOI	30,248	35,525

Depreciation and amortization	(15,889)	(17,536)
Interest expense	(14,353)	(17,219)
General and administrative expense	(6,275)	(5,846)
Loss on extinguishment of debt	—	(5,884)
Acquisition, transaction & integration expense	(393)	(133)
Other income (expense)	(615)	105
Income tax expense	(34)	(60)
Loss from continuing operations	(7,311)	(11,048)
Discontinued operations:
Gain on sale of real estate	—	19,992
Loss from discontinued operations	—	(3,107)
Discontinued operations, net	—	16,885
Net income (loss)	(7,311)	5,837
Deemed dividend on redeemable preferred stock	(296)	(598)
Net income (loss) attributable to common stockholders	$ (7,607)	$ 5,239




Reconciliation of Quarter-over-Quarter Cash NOI (unaudited)
(dollars in thousands)

	For the Quarter Ended	For the Quarter Ended
	March 31, 2021	December 31, 2020
Total Same Store Cash NOI	$ 29,457	$ 32,501
Straight-line rental revenue	95	95
Amortization of deferred community fees and other	696	1,118
Total NOI	30,248	33,714

Depreciation and amortization	(15,889)	(15,769)
Interest expense	(14,353)	(14,522)
General and administrative expense	(6,275)	(5,373)
Acquisition, transaction & integration expense	(393)	(272)
Other expense	(615)	(944)
Income tax expense	(34)	(22)
Net loss	(7,311)	(3,188)
Deemed dividend on redeemable preferred stock	(296)	(601)
Net loss attributable to common stockholders	$ (7,607)	$ (3,789)


Second Quarter 2021 Guidance Reconciliation
Reconciliation of Net Loss to FFO, Normalized FFO and AFFO (unaudited)

		Per Diluted Share
Net loss attributable to common stockholders		$(0.11)
Depreciation & amortization		0.18
FFO		$0.07

Acquisition, transaction & integration expense		0.03
Normalized FFO		$0.10

Amortization of deferred financing costs		0.01
Amortization of equity-based compensation		0.02
AFFO		$0.13

ROUNDING

Throughout this Press Release, totals and subtotals of certain tables may not sum due to rounding.

NON-GAAP FINANCIAL MEASURES

The tables above set forth reconciliations of non-U.S. generally accepted accounting principles (“GAAP”) measures to net income (loss), which is the most directly comparable GAAP financial measure.

A non-GAAP financial measure is a measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are not excluded from or included in the most directly comparable GAAP measure. We consider certain non-GAAP financial measures to be useful supplemental measures of our operating performance for management and investors. GAAP accounting for real estate assets assumes that the value of real estate assets diminishes predictably over time, even though real estate values historically have risen or fallen with market conditions. As a result, many industry investors look to non-GAAP financial measures for supplemental information about real estate companies.

You should not consider non-GAAP measures as alternatives to GAAP net (loss) income, which is an indicator of our financial performance, or as alternatives to GAAP cash flow from operating activities, which is a liquidity measure. Additionally, non-GAAP measures are not intended to be a measure of our ability to satisfy our debt and other cash requirements. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP measures in conjunction with GAAP net (loss) income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this press release. Moreover, the comparability of non-GAAP financial measures across companies may be limited as a result of differences in the manner in which real estate companies calculate such measures.

Below is a description of the non-GAAP financial measures presented herein.

NOI, Cash NOI and Cash Interest Expense

Net operating income (“NOI”) and Cash NOI are non-GAAP financial measures used to evaluate the performance of our properties. We consider NOI and Cash NOI important supplemental measures used to evaluate the operating performance of our properties because they allow investors, analysts and our management to assess our unleveraged property-level operating results and to compare our operating results between periods and to the operating results of other real estate companies on a consistent basis. We define NOI as total revenues less property level operating expenses, which include property management fees and travel cost reimbursements. We define Cash NOI as NOI excluding the effects of straight-line rental revenue, amortization of above/ below market lease intangibles and the amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives.

Same store NOI and same store cash NOI include only properties owned for the entirety of comparable periods. Properties acquired, sold, transitioned to other operators or between segments, or classified as held for sale or discontinued operations during the comparable periods are excluded from the same store amounts. Please see the Company’s most recent quarterly report filed with the Securities and Exchange Commission for more information.

Cash interest expense is defined as interest expense excluding the amortization of deferred financing costs and includes the interest expense on debt repaid upon the sale of the AL/MC portfolio (classified as discontinued operations).

FFO and Other Non-GAAP Measures

We use Funds From Operations (“FFO”) and Normalized FFO as supplemental measures of our operating performance. We use the National Association of Real Estate Investment Trusts (“NAREIT”) definition of FFO. NAREIT defines FFO as GAAP net income (loss) attributable to common stockholders, which includes loss from discontinued operations, excluding gains (losses) from sales of depreciable real estate assets and impairment charges of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and joint ventures to reflect FFO on the same basis. FFO does not account for debt principal payments and is not intended as a measure of a REIT’s ability to satisfy such payments or any other cash requirements.

Normalized FFO, as defined below, measures the financial performance of our portfolio of assets excluding items that, although incidental to, are not reflective of the day-to-day operating performance of our portfolio of assets. We believe that Normalized FFO is useful because it facilitates the evaluation of our portfolio’s operating performance (i) between periods on a consistent basis and (ii) to the operating performance of other real estate companies. However, comparability may be limited because our calculation of Normalized FFO may differ significantly from that of other companies or because of features of our business that are not present in other companies.

We define Normalized FFO as FFO excluding the following income and expense items, as applicable: (a) acquisition, transaction and integration related expenses; (b) the write off of unamortized discounts, premiums, deferred financing costs, or additional costs, make whole payments and penalties or premiums incurred as the result of early repayment of debt (collectively “Gain (Loss) on extinguishment of debt”); (c) incentive compensation to affiliate recognized as a result of sales of real estate; (d) the remeasurement of deferred tax assets; (e) valuation allowance on deferred tax assets, net; (f) termination fee to affiliate; (g) gain on lease termination; (h) compensation expense related to transition awards; (i) litigation proceeds; and (j) other items that we believe are not indicative of operating performance, generally reported as “Other expense (income)” in our Consolidated Statements of Operations.

We also use Adjusted FFO (“AFFO”) and Normalized FAD as supplemental measures of our operating performance. We believe AFFO is useful because it facilitates the evaluation of (i) the current economic return on our portfolio of assets between periods on a consistent basis and (ii) our portfolio versus those of other real estate companies that report AFFO. However, comparability may be limited because our calculation of AFFO may differ significantly from that of other companies, or because of features of our business that are not present in other companies.

We define AFFO as Normalized FFO excluding the impact of the following: (a) straight-line rental revenue; (b) amortization of above / below market lease intangibles; (c) amortization of deferred financing costs; (d) amortization of premium or discount on mortgage notes payable; (e) amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives, and (f) amortization of equity-based compensation expense.

We define Normalized FAD as AFFO less routine capital expenditures, which we view as a cost associated with the current economic return. Normalized FAD, which does not reflect debt principal payments and certain other expenses, does not represent cash available for distribution to shareholders. We believe Normalized FAD is useful because it fully reflects the additional economic costs of maintaining the condition of the portfolio.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005321/en/

Jane Ryu

(646) 822-3700

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: REIT Finance Professional Services Residential Building & Real Estate Construction & Property

MEDIA:

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May 5, 2021 7:05 am

MediWound Reports First Quarter 2021 Financial Results

First Quarter Revenues of $5.8 Million, an Increase of 32% Year-over-Year

Conference call begins today at 8:30 am ET

YAVNE, Israel, May 05, 2021 (GLOBE NEWSWIRE) — MediWound Ltd. (Nasdaq: MDWD), a fully-integrated biopharmaceutical company focused on next-generation bio-therapeutics solutions for tissue repair and regeneration, today announced financial results for the first quarter ended March 31, 2021.

First Qua
rter and recent weeks Financial and Business Highlights:

Total revenues for the first quarter of 2021 were $5.8 million, an increase of 32% compared with the first quarter of 2020, primarily driven by the procurement of NexoBrid^®by the Biomedical Advanced Research and Development Authority (BARDA)

Cash and short-term investments of $17.9 million as of March 31, 2021, compared with $21.6 million as of December 31, 2020

Hosted an Analyst Day on March 30 highlighting EscharEx^® as an enzymatic debridement agent for chronic wounds featuring presentations by key opinion leaders.

Enrolled the first patient in phase 2 pharmacology study of EscharEx, with data expected in the second half of 2021

Submitted a protocol to the U.S. Food and Drug Administration (FDA) for a phase I/II clinical study of MWPC005 for the treatment of basal cell carcinoma; study initiation is planned for the second quarter of 2021

Received marketing approval for NexoBrid in Chile and the Republic of China (Taiwan) and continue global expansion strategy with new distribution agreements in Europe and Asia

“This quarter was one of continued progress across the board, highlighted by the continued revenue growth and NexoBrid global expansion, the enrollment of the first patient in our phase 2 pharmacology study of EscharEx, and the initiation of a new clinical program in non-melanoma skin cancer,” said Sharon Malka, Chief Executive Officer of MediWound. “We were proud to host an analyst day webinar in March on EscharEx, featuring four prominent key opinion leaders who discussed the current U.S. wound debridement practices and how EscharEx, upon approval, has the potential to change current standard of practice and care of chronic wounds. We continue to advance our U.S. phase 2 adaptive design study of EscharEx for the treatment of venous leg ulcers and look forward to an interim assessment later this year. Finally, we remain focused on continuing to drive revenue growth and further strengthen our company.”

First
Quarter Financial Results

Revenues for the first quarter of 2021 were $5.8 million, compared with $4.4 million for the first quarter of 2020, an increase of 32%. Revenues from products and licenses in the first quarter of 2021 were $2.9 million, an increase of 300% compared to the first quarter of 2020, primarily driven by the procurement of NexoBrid by BARDA for emergency response preparedness and sales increase outside the U.S.

Gross profit for the first quarter of 2021 was $2.4 million, or 41% of net revenues, compared to a gross profit of $1.2 million, or 28% of net revenues for the first quarter of 2020.

Research and development expenses for the first quarter of 2021, were $2.2 million, compared with $1.7 million for the first quarter of 2020. The increase was a result of EscharEx clinical development program.

Selling, general and administrative expenses for the first quarter of 2021 were $2.1 million, compared with $1.7 million in the first quarter of 2020 as a result of directors and officer’s insurance cost increase. As a percentage of revenues, selling, general and administrative expenses for the first quarter decreased from 39% in the first quarter of 2020 to 36% for the first quarter of 2021.

Operating loss for the first quarter of 2021 was $1.9 million, reflecting a 13% decrease in operating loss compared to the $2.2 million in the first quarter of 2020.

The Company posted a net loss of $2.9 million, or $0.10 per share, for the first quarter of 2021 compared with a net loss of $2.5 million, or $0.09 per share, for the first quarter of 2020.

Adjusted EBITDA, as defined below, for the first quarter of 2021 was a loss of $1.3 million, compared with a loss of $1.8 million for the first quarter of 2020, reflecting a decrease in adjusted EBIDTA loss of 28%.

Balance Sheet Highlights

As of March 31, 2021, MediWound had $17.9 million in cash and short-term investments, compared with $21.6 million as of December 31, 2020, and no debt. MediWound remained on budget, utilizing $3.7 million in the first quarter of 2021 for its operational activities. The Company expects cash use for 2021 to be in the range of $5.0 to $7.0 million.

Conference Call

MediWound management will host a conference call for investors today, Wednesday, May 5, 2021 beginning at 8:30 a.m. Eastern Time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 877-602-7189 (in the U.S.) 1 809 315 362 (Israel), or 678-894-3057 (outside the U.S. & Israel) and entering passcode 3496059. The call also will be webcast live on the Company’s website at http://ir.mediwound.com/events-and-presentations.

A replay of the call will be available on the Company website for 90 days at www.mediwound.com.

Non-IFRS Financial Measures

To supplement consolidated financial statements prepared and presented in accordance with IFRS, the Company has provided a supplementary non-IFRS measure to consider in evaluating the Company’s performance. Management uses Adjusted EBITDA, which it defines as earnings before interest, taxes, depreciation and amortization, impairment, one-time expenses, restructuring and share-based compensation expenses.

Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with IFRS, we believe the non-IFRS financial measures we present provide meaningful supplemental information regarding our operating results primarily because they exclude certain non-cash charges or items that we do not believe are reflective of our ongoing operating results when budgeting, planning and forecasting and determining compensation, and when assessing the performance of our business with our senior management.

However, investors should not consider these measures in isolation or as substitutes for operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with IFRS. In addition, because Adjusted EBITDA is not calculated in accordance with IFRS, it may not necessarily be comparable to similarly titled measures employed by other companies. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.

About MediWound Ltd.

MediWound is a biopharmaceutical company that develops, manufactures and commercializes novel, cost effective, bio-therapeutic solutions for tissue repair and regeneration. Our strategy is centered around our validated enzymatic platform technology, focused on next-generation bio-active therapies for burn and wound care and biological medicinal products for tissue repair.

NexoBrid, our first commercialized biological product for non-surgical and rapid eschar removal of deep, partial and full-thickness thermal burns without harming viable tissue, is currently marketed in the European Union and other International markets. On June 29, 2020, a biologics license application (BLA) was submitted to the U.S. FDA and was assigned a Prescription Drug User Fee Act (PDUFA) target date of June 29, 2021. NexoBrid is supported by U.S. Biomedical Advanced Research and Development Authority (BARDA).

EscharEx, our next-generation bioactive topical therapeutic under development in the U.S. for debridement of chronic and hard to heal wounds. In two Phase 2 studies, EscharEx was well-tolerated and has demonstrated safety and efficacy in the debridement of various chronic and other hard-to-heal wounds, within a few daily applications. MediWound’s third innovative product candidate, MWPC005, is a topical drug under development for the treatment of non-melanoma skin cancer. Committed to innovation, we are dedicated to improving quality of care and patient lives. For more information, please visit www.mediwound.com.

About BARDA

Funding and technical support for development of NexoBrid including the expanded access treatment protocol (NEXT), the pivotal Phase 3 pediatric clinical study (CIDS) and the marketing approval registration process for NexoBrid in the U.S. is provided by the Biomedical Advanced Research and Development Authority (BARDA), under the Assistant Secretary for Preparedness and Response (ASPR), within the U.S. Department of Health and Human Services (HHS), under ongoing USG Contract No. HHSO100201500035C. Additional projects for evaluation of NexoBrid funded under the BARDA contract include randomized, controlled pivotal clinical trial for use in adults population, establishment of a pre-emergency use data package and development of the health economic model to evaluate the cost savings impact to enable market adoption in the United States and readiness for emergencies. For more information, refer to www.phe.gov/about/BARDA.

Cautio
nary Note Regarding Forward-Looking Statements

MediWound caution you that all statements other than statements of historical fact 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. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to ri
sks, assumptions, uncertainties, and factors, all of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from those expressed or implied by the forward-looking statements in this press release. Th
ese statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,” “target,” “future,” “potential,” “goals” and similar wo
rds or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions.

Specifically, this press release contains forward-looking statements concerning the anticipated progress, development, study design, o
bjectives anticipated timelines, expectations and commercial potential of our products and product candidates. Among the factors that may cause results to be materially different from those stated herein are the inherent uncertainties associated with the u
ncertain, lengthy and expensive nature of the product development process; the timing and conduct of our studies of our products and product candidates, including the timing, progress and results of current and future clinical studies, and our research and
development programs; our ability to obtain marketing approval of our products and product candidates in the U.S. or other markets; the clinical utility, potential advantages and timing or likelihood of regulatory filings and approvals of our products and
products; our expectations regarding future growth, including our ability to develop new products; risks related to
our contracts with BARDA; market acceptance of our products and product candidates; our ability to maintain adequate protection of our inte
llectual property; competition risks; the need for additional financing; the impact of government laws and regulations and the impact of the COVID-19 pandemic. For example, we are unable to predict how the pandemic will affect the overall healthcare infra
structure, including the ability to recruit patients, the ability to conduct the studies in medical sites and the pace with which governmental agencies, such as the FDA, will review and approve regulatory submissions. Additional government-imposed quaranti
nes and requirements to “shelter at home” or other incremental mitigation efforts also may impact our ability to source supplies for our operations or our ability or capacity to manufacture, sell and support the use of our products and product candidates i
n the future.

These and other significant factors are discussed in greater detail in MediWound’s
annual report on Form 20-F for the year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2021, Quarterly Reports on Form 6-K and other filings with the SEC from time-to-time. These forward-looking stateme
nts reflect MediWound’s current views as of the date hereof and MediWound undertakes, and specifically disclaims, any obligation to update any of these forward-looking statements to reflect a change in their respective views or events or circumstances that
occur after the date of this release except as required by law.

Contacts:		Jeremy Feffer
Boaz Gur-Lavie		Managing Director
Chief Financial Officer		LifeSci Advisors
MediWound Ltd.		212-915-2568
[email protected]		[email protected]

MediWound, Ltd.

CONDENSED CONSOLIDATED BALANCE
SHEETS

U.S. dollars in thousands

	March 31,			December 31,
		2021	2020	2020
	Un-audited			Audited
Cash, cash equivalents and short term deposits		17,862	27,311	21,584
Accounts and other receivable		5,574	3,540	3,229
Inventories		1,470	2,004	1,380
Total current assets		24,906	32,855	26,193

Property, plant and equipment, net		2,694	2,339	2,630
Right of use assets, net		1,747	2,191	1,884
Intangible assets, net		347	413	363
Total long term assets		4,788	4,943	4,877

Total assets		29,694	37,798	31,070

Current maturities of long-term liabilities		1,884	1,417	1,750
Trade payables and accrued expenses		3,258	3,423	2,992
Other payables		5,172	5,843	3,524
Total current liabilities		10,314	10,683	8,266

Deferred revenues		693	1,018	1,234
Liabilities in respect of Israeli Innovation Authority grants net of current maturities		7,275	6,942	7,267
Liabilities in respect of purchase of shares net of current maturities		4,733	4,097	4,998
Lease liabilities, net of current maturities		1,590	1,905	1,741
Severance pay liability, net		273	264	292
Total long term liabilities		14,564	14,226	15,532

Shareholders’ equity		4,816	12,889	7,272
Total liabilities & shareholder equity		29,694	37,798	31,070

MediWound, Ltd.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (UNAUDITED)

U.S. dollars in thousands

	Three months ended
	March 31,
		2021		2020

Revenues		5,847		4,438
Cost of revenues		3,431		3,208
Gross profit		2,416		1,230
Operating expenses:
Research and development		2,242		1,719
Selling, general and administrative		2,095		1,717
Operating loss		(1,921	)	(2,206	)
Financial income		11		239
Financial expense		(941	)	(494	)
Loss for the period		(2,851	)	(2,461	)

Foreign currency translation adjustments		11		8
Total comprehensive loss		(2,840	)	(2,453	)

Basic and diluted loss per share:
Net loss per share		(0.10	)	(0.09	)
Weighted average number of ordinary shares used in the computation of basic and diluted loss per share:		27,237		27,211

ADJUSTED EBITDA

U.S. dollars in thousands

	Three months ended
	March 31,
		2021		2020
Loss for the period		(2,851	)	(2,461	)
Adjustments:
Financial expenses, net		(930	)	(255	)
Depreciation and amortization		(273	)	(268	)
Share-based compensation expenses		(384	)	(173	)
Total adjustments		(1,587	)	(696	)
Adjusted EBITDA		(1,264	)	(1,765	)

MediWound, Ltd.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED)

U.S. dollars in thousands

	Three months ended
	March 31,
		2021		2020
Cash Flows from Operating Activities:
Net loss		(2,851	)	(2,461	)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Adjustments to profit and loss items:
Depreciation and amortization		273		268
Share-based compensation		384		173
Revaluation of liabilities in respect of IIA grants		275		198
Revaluation of liabilities in respect of purchase of shares		152		152
Revaluation of lease liabilities		(44	)	(36	)
Increase (decrease) in severance liability, net		(10	)	21
Financing income		(11	)	(110	)
Unrealized foreign currency (gain) loss		256		79
		1,275		745
Changes in asset and liability items:
Decrease (increase) in trade receivables		(2,407	)	897
Increase in inventories		(45	)	(391	)
Decrease in other receivables		37		99
Increase (decrease) in trade payables & accrued expenses		272		(645	)
Increase (decrease) in other payables & deferred revenues		806		(47	)
		(1,337	)	(87	)
Net cash used in operating activities		(2,913	)	(1,803	)

Cash Flows from Investment Activities:
Purchase of property and equipment		(218	)	(144	)
Interest received		35		3
Proceeds from short term bank deposits, net of investments		4,006		2,992
Net cash provided by investing activities		3,823		2,851
Cash Flows from Financing Activities:
Repayment of lease liabilities		(131	)	(160	)
Repayment of IIA grants		(180	)	(66	)
Net cash used in financing activities		(311	)	(226	)

Exchange rate differences on cash and cash equivalent balances		(291	)	(83	)
Increase in cash and cash equivalents		308		739
Balance of cash and cash equivalents at the beginning of the period		17,376		7,242
Balance of cash and cash equivalents at the end of the period		17,684		7,981

May 5, 2021 7:05 am

Reynolds Consumer Products Reports First Quarter 2021 Financial Results

Reynolds Consumer Products Reports First Quarter 2021 Financial Results

Q1 net revenues grow 4%

Continued earnings growth

Increasing forecast for topline growth

Pricing to offset higher costs

LAKE FOREST, Ill.–(BUSINESS WIRE)–
Reynolds Consumer Products Inc. (“Reynolds,” “RCP” or the “Company”) (Nasdaq: REYN)today reported results for the first quarter 2021 ended March 31, 2021.

First Quarter 2021 Highlights

Net Revenues of $757 million, up 4% over Q1 prior year net revenues

Net Income of $74 million; Adjusted Net Income of $76 million

Earnings Per Share of $0.35; Adjusted Earnings Per Share of $0.36

Adjusted EBITDA of $140 million, up 4% over Q1 prior year Adjusted EBITDA

Net revenues increased 4%, driven by price increases and lower levels of trade promotion. We saw an estimated two percentage point impact to first quarter net revenues due to February’s storms, which primarily impacted the Hefty Waste & Storage and Presto Products business segments. Adjusted EBITDA also increased 4%, driven by the increase in net revenues, partially offset by higher material, manufacturing and logistics costs.

“We delivered another quarter of strong top-line and bottom-line growth as the strength of our brands and continued momentum in our business enabled us to navigate the headwinds from February storms and unprecedented commodity cost increases,” said Lance Mitchell, President and Chief Executive Officer. “We are increasing our forecast for even stronger topline growth over the balance of the year, reflecting planned additional price increases, increasing consumption, innovation, and replenishment at retail. Our first quarter results and rest of the year revenue forecast demonstrate RCP’s business model for sustained growth.”

Segment Results

Reynolds Cooking & Baking

Net revenues increased $29 million, or 12%

Adjusted EBITDA increased $13 million, or 33%

Net revenues increased 12%, driven by lower levels of trade promotion and increases in volume, in addition to price increases. Adjusted EBITDA increased 33%, primarily driven by the increase in net revenues, partially offset by higher material, manufacturing and logistics costs.

We launched and expanded distribution of multiple new products in the quarter, contributing to strong category and branded share growth for foil, parchment and other Reynolds Kitchens products.

Hefty Waste & Storage

Net revenues increased $2 million, or 1%

Adjusted EBITDA decreased $11 million, or -20%

Net revenues increased 1%, driven by price increases and lower levels of trade promotion, while volume was negatively impacted by storm-related disruptions in February. We estimate February’s storms had a 3% negative impact to net revenues for the quarter. Adjusted EBITDA decreased 20%, primarily driven by higher material, manufacturing and logistics costs, partially offset by lower discretionary costs.

We implemented price increases across the Hefty waste and storage product portfolio, and our brands continued to perform very well. Based on survey data, household consumption of waste and food bags also continues at rates well above pre-pandemic levels.

Hefty Tableware

Net revenues decreased $8 million, or -4%

Adjusted EBITDA decreased $1 million, or -3%

Net revenues decreased 4% as lower levels of trade promotion were more than offset by lower volume, which was driven by fewer social gatherings, which we believe were not fully offset by increased everyday use occasions. Adjusted EBITDA decreased 3%, primarily driven by higher material and manufacturing costs.

We expanded distribution of ECOSAVE™ tableware, cited by Product of the Year USA as 2021 disposable tableware product of the year, as well as expanded distribution of multiple new products in the quarter, contributing to dollar share gains in party cups and disposable dishes.

Presto Products

Net revenues decreased $1 million, or -1%

Adjusted EBITDA decreased $5 million, or -22%

Net revenues decreased 1% as price increases were more than offset by the volume impact of storm-related disruptions in February. We estimate February’s storms had a 6% negative impact to net revenues for the quarter. Adjusted EBITDA decreased 22%, primarily driven by higher material and manufacturing costs.

The Presto Products business unit has expanded distribution for several major store brands, and we believe the business is positioned to make additional gains.

Balance Sheet and Cash Flow Highlights

At March 31, 2021, our cash and cash equivalents were $144 million, and our outstanding debt was $2,127 million, resulting in net debt of $1,983 million.

Capital expenditures were $23 million for each of the quarters ended March 31, 2021 and 2020.

Fiscal Year and Second Quarter Outlook

The Company is updating its previously-disclosed outlook.

Building on strong first quarter net revenue growth and pricing actions, the Company is increasing its full year revenue outlook, expecting high single digit revenue growth underpinned by anticipated continued elevated consumption, innovation, retail replenishment, and pricing.

The Company is facing estimated in-year cost pressures exceeding $300 million from increases in commodity and logistics rates, compounded by global supply chain challenges. Price increases have been implemented and a second round is underway, with planning for a third round to be implemented in the third quarter.

On an annualized basis, aggregated pricing actions are expected to cover the increases in input costs, but the Company is lowering expected full year earnings to reflect the short-term implications of pricing in an environment when costs are still increasing. As we anticipate pricing to catch up to increased input costs through the rest of the year, margins are expected to expand sequentially in the third and fourth quarters.

The Company now expects the following results for its fiscal year ending December 31, 2021:

Net revenues to grow high single digits on $3,263 million in the prior year

Net Income to be in the range of $372 million to $395 million; Adjusted Net Income to be in the range of $384 million to $407 million

Earnings Per Share to be in the range of $1.77 to $1.88 per share; Adjusted Earnings Per Share to be in the range of $1.83 to $1.94 per share

Adjusted EBITDA to be in the range of $670 million to $700 million

Net Debt to be approximately $1.8 billion at December 31, 2021

With additional price increases going into effect during the second quarter, the Company is expecting high single digit revenue growth in its second quarter.

Despite the expected revenue growth over the prior year quarter, the Company expects short-term earnings pressure in the second quarter, reflecting increases in commodity and logistics costs that precede price increases as well as continuing impacts from February’s storms.

The Company expects the following results for its second quarter ending June 30, 2021:

Net revenues to grow high single digits on $822 million in the prior year

Net Income to be in the range of $73 million to $80 million; Adjusted Net Income to be in the range of $76 million to $83 million

Earnings Per Share to be in the range of $0.35 to $0.38 per share; Adjusted Earnings Per Share to be in the range of $0.36 to $0.39 per share

Adjusted EBITDA to be in the range of $140 million to $150 million

“We expect 2021 to be another year of record net revenues and volume and are using all available tools, including additional pricing and expanded Reyvolution cost savings, in our plans to offset increased commodity, logistics and related costs,” said Michael Graham, Chief Financial Officer. “Our first round of price increases went into effect as planned, and a second round is underway with plans for a third round in the third quarter. However, there is a difference between the impact of recent cost increases and the timing of related price increases. We therefore expect considerable margin pressure in the second quarter, followed by sequential margin improvement in the third and fourth quarters as higher prices go into effect.”

Quarterly Dividend

The Company’s Board of Directors has approved a quarterly dividend of $0.23 per common share. The Company expects to pay this dividend on May 27, 2021, to shareholders of record as of May 13, 2021.

Conference Call and Webcast Presentation

The Company will host a conference call to discuss these results at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) on Wednesday May 5, 2021. Investors interested in participating in the live call can dial 877-423-9813 from the U.S. and 201-689-8573 internationally. A telephone replay will be available approximately two hours after the call concludes through Wednesday, May 19, 2021, by dialing 844-512-2921 from the U.S., or 412-317-6671 from international locations, and entering confirmation code 13717992.

There will also be a simultaneous, live webcast available on the Investors section of the Company’s website at www.reynoldsconsumerproducts.com. The webcast will be archived for 30 days.

About Reynolds Consumer Products Inc.

RCP’s mission is to simplify daily life so consumers can enjoy what matters most. RCP is a market-leading consumer products company with a presence in 95% of households across the United States. RCP produces and sells products across three broad categories: cooking products, waste & storage products and tableware that are sold under iconic brands such as Reynolds and Hefty, as well as under store brands that are strategically important to RCP’s customers. Overall, across both branded and store brand offerings, RCP holds the #1 or #2 U.S. market share position in the majority of product categories in which it participates.

Note to Investors Regarding Forward Looking Statements

This press release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including our second quarter and fiscal year 2021 guidance. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “outlook,” “forecast”, “committed,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “model”, “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and other strategies and anticipated trends in our business, including expected levels of increases in commodity costs. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K.

For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

REYN-F

Reynolds Consumer Products Inc.

Condensed Consolidated Statements of Income

(amounts in millions, except for per share data)

(Unaudited)

For the Three Months Ended

March 31,

2021

2020

Net revenues

$

732

$

691

Related party net revenues

25

39

Total net revenues

757

730

Cost of sales

(565

)

(541

)

Gross profit

192

189

Selling, general and administrative expenses

(78

)

(82

)

Other expense, net

(3

)

(15

)

Income from operations

111

92

Interest expense, net

(12

)

(27

)

Income before income taxes

99

65

Income tax expense

(25

)

(39

)

Net income

$

74

$

26

Earnings per share:

Basic

$

0.35

$

0.14

Diluted

$

0.35

$

0.14

Weighted average shares outstanding:

Basic

209.7

188.8

Effect of dilutive securities

0.1

0.2

Diluted

209.8

189.0

Reynolds Consumer Products Inc.

Condensed Consolidated Balance Sheets

(amounts in millions, except for per share data)

(Unaudited)

As of March 31,

2021

As of

December 31,

2020

Assets

Cash and cash equivalents

$

144

$

312

Accounts receivable (net of allowance for doubtful accounts of $1 and $1)

283

292

Other receivables

5

9

Related party receivables

10

8

Inventories

507

419

Other current assets

22

13

Total current assets

971

1,053

Property, plant and equipment (net of accumulated depreciation of $710 and $692)

611

612

Operating lease right-of-use assets, net

62

61

Goodwill

1,879

1,879

Intangible assets, net

1,084

1,092

Other assets

32

25

Total assets

$

4,639

$

4,722

Liabilities

Accounts payable

$

203

$

185

Related party payables

36

41

Current portion of long-term debt

25

25

Income taxes payable

34

6

Accrued and other current liabilities

126

175

Total current liabilities

424

432

Long-term debt

2,102

2,208

Long-term operating lease liabilities

52

51

Deferred income taxes

322

326

Long-term postretirement benefit obligation

54

53

Other liabilities

42

37

Total liabilities

$

2,996

$

3,107

Stockholders’ equity

Common stock, $0.001 par value; 2,000 shares authorized; 210 shares issued and

outstanding

—

—

Additional paid-in capital

1,380

1,381

Accumulated other comprehensive income

4

1

Retained earnings

259

233

Total stockholders’ equity

1,643

1,615

Total liabilities and stockholders’ equity

$

4,639

$

4,722

Reynolds Consumer Products Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in millions)

(Unaudited)

Three Months Ended

March 31,

2021

2020

Cash provided by (used in) operating activities

Net income

$

74

$

26

Adjustments to reconcile net income to operating cash flows:

Depreciation and amortization

26

24

Deferred income taxes

(6

)

28

Unrealized losses on derivatives

—

4

Stock compensation expense

2

1

Change in assets and liabilities:

Accounts receivable, net

9

(303

)

Other receivables

4

(1

)

Related party receivables

(2

)

9

Inventories

(88

)

(16

)

Accounts payable

23

10

Related party payables

(4

)

(20

)

Related party accrued interest payable

—

(18

)

Income taxes payable

29

11

Accrued and other current liabilities

(50

)

(7

)

Other assets and liabilities

(8

)

(3

)

Net cash provided by (used in) operating activities

9

(255

)

Cash used in investing activities

Acquisition of property, plant and equipment

(23

)

(23

)

Net cash used in investing activities

(23

)

(23

)

Cash (used in) provided by financing activities

Repayment of long-term debt

(106

)

—

Dividends paid

(48

)

—

Proceeds from long-term debt, net of discounts

—

2,472

Repayments of PEI Group Credit Agreement

—

(8

)

Advances from related parties

—

240

Repayments to related parties

—

(3,627

)

Deferred debt transaction costs

—

(28

)

Proceeds from IPO settlement facility

—

1,168

Repayment of IPO settlement facility

—

(1,168

)

Issuance of common stock

—

1,410

Equity issuance costs

—

(69

)

Net transfers to Parent

—

(14

)

Net cash (used in) provided by financing activities

(154

)

376

Effect of exchange rate on cash and cash equivalents

—

—

Net (decrease) increase in cash and cash equivalents

(168

)

98

Cash and cash equivalents at beginning of period

312

102

Cash and cash equivalents at end of period

$

144

$

200

Reynolds Consumer Products Inc.

Segment Results

(amounts in millions)

Reynolds

Cooking &

Baking

Hefty

Waste &

Storage

Hefty

Tableware

Presto

Products

Unallocated

Total

Reynolds

Consumer

Products

Revenues

Three months ended March 31, 2021

$

272

$

194

$

170

$

126

$

(5

)

$

757

Three months ended March 31, 2020

243

192

178

127

(10

)

730

Adjusted EBITDA

Three months ended March 31, 2021

$

53

$

44

$

34

$

18

$

(9

)

$

140

Three months ended March 31, 2020

40

55

35

23

(18

)

135

Use of Non-GAAP Financial Measures

We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share”, and “Net Debt” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, depreciation and amortization and further adjusted to exclude, as applicable, unrealized gains and losses on commodity derivatives and IPO and separation-related costs. We define Adjusted Net Income and Adjusted Earnings Per Share as Net Income and Earnings Per Share calculated in accordance with GAAP, plus, as applicable, the sum of IPO and separation-related costs, the impact of a tax legislation change under the CARES Act enacted March 27, 2020 and any unrealized gains or losses on commodity derivatives. We define Net Debt as the current portion of long term debt plus long term debt less cash and cash equivalents.

We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted Earnings Per Share as supplemental metrics to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. Accordingly, we believe presenting these metrics provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.

Guidance for fiscal year and second quarter 2021, where adjusted, is provided on a non-GAAP basis, which the Company will continue to identify as it reports its future financial results. The Company cannot reconcile its expected Adjusted EBITDA to expected Net Income under “Fiscal Year and Second Quarter Outlook” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results. In addition, the Company cannot reconcile its expected Net Debt to expected total debt without reasonable effort because certain items that impact total debt and other reconciling metrics are out of the Company’s control and/or cannot be reasonable predicted at this time, which unavailable information could have a significant impact on the Company’s GAAP financial results.

Please see reconciliations of Non-GAAP measures used in this release (with the exception of our second quarter and full year 2021 Adjusted EBITDA outlook and our 2021 Net Debt outlook, as described above) to the most directly comparable GAAP measures, beginning on the following page.

Reynolds Consumer Products Inc.

Reconciliation of Net Income to Adjusted EBITDA

(amounts in millions)

Three Months Ended March 31,

2021

2020

Net income – GAAP

$

74

$

26

Income tax expense

25

39

Interest expense, net

12

27

Depreciation and amortization

26

24

IPO and separation-related costs

3

14

Unrealized losses on derivatives

—

4

Other

—

1

Adjusted EBITDA (Non-GAAP)

$

140

$

135

Reynolds Consumer Products Inc.

Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS

(amounts in millions, except per share data)

Three Months Ended March 31, 2021

Three Months Ended March 31, 2020

Net Income

Diluted Shares

Diluted EPS

Net Income

Diluted Shares

Diluted EPS

As Reported – GAAP

$

74

210

$

0.35

$

26

189

$

0.14

Assume full period impact of IPO shares ⁽¹⁾

—

—

—

—

21

—

Total

$

74

210

$

0.35

$

26

210

$

0.12

Adjustments:

IPO and separation costs ⁽²⁾

2

210

0.01

11

210

0.05

Impact of tax legislation change from the CARES Act

—

—

—

23

210

0.11

Unrealized losses on derivatives ⁽²⁾

—

—

—

3

210

0.02

Adjusted (Non-GAAP)

$

76

210

$

0.36

$

63

210

$

0.30

(1)
Represents incremental shares required to adjust the weighted average shares outstanding for the period to the actual shares outstanding as of March 31, 2020. We utilize the shares outstanding at period end as if they had been outstanding for the full period rather than weighted average shares outstanding over the course of the period as it is a more meaningful calculation that provides consistency in comparability.

(2)
Amounts are after tax, calculated using a tax rate of 25.0% and 24.7% for the three months ended March 31, 2021 and 2020, respectively, which is our effective tax rate excluding the 2020 one-time discrete expense associated with the legislation change from the CARES Act.

Reynolds Consumer Products Inc.

Reconciliation of Net Debt to Total Debt

(amounts in millions)

As of

March 31, 2021

Current Portion of Long-Term Debt

$

25

Long-Term Debt

2,102

Total Debt

$

2,127

Cash and Cash Equivalents

(144

)

Net Debt (Non-GAAP)

$

1,983

Reynolds Consumer Products Inc.

Reconciliation of Q2 2021 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance

(amounts in millions, except per share data)

Net Income

Diluted shares

outstanding

Diluted Earnings Per Share

low

high

low

high

Q2 2021 – Guidance

$

73

$

80

210

$

0.35

$

0.38

Adjustments:

IPO and separation-related costs ⁽¹⁾

3

3

210

$

0.01

$

0.01

Q2 2021 – Adjusted Guidance

$

76

$

83

210

$

0.36

$

0.39

Reynolds Consumer Products Inc.

Reconciliation of 2021 Net Income and EPS Guidance to Adjusted Net Income and Adjusted EPS Guidance

(amounts in millions, except per share data)

Net Income

Diluted shares

outstanding

Diluted Earnings Per Share

low

high

low

high

Fiscal Year 2021 – Guidance

$

372

$

395

210

$

1.77

$

1.88

Adjustments:

IPO and separation-related costs ⁽¹⁾

12

12

210

$

0.06

$

0.06

Fiscal Year 2021 – Adjusted Guidance

$

384

$

407

210

$

1.83

$

1.94

⁽¹⁾ Amounts are after tax calculated using a tax rate of 25%, which is the Company’s expected tax rate for Q2 and FY 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005320/en/

Investors

Mark Swartzberg

[email protected]

(847) 482 – 4081

Media

Kate Ottavio Kent

[email protected]

203-682-8276

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS: Men Women Consumer

MEDIA:

Posted on May 5, 2021 7:05 am
Amicus Therapeutics Announces Upcoming Presentations at the American Society of Gene & Cell Therapy 24th Annual Meeting

PHILADELPHIA, May 05, 2021 (GLOBE NEWSWIRE) — Amicus Therapeutics (Nasdaq: FOLD), today announced the acceptance of two abstracts for presentation at the American Society of Gene & Cell Therapy 24th Annual Meeting being held virtually, May 11-14, 2021. Accepted abstracts will highlight preclinical data from the Company’s Fabry and Pompe gene therapy programs, which Amicus is developing with the Gene Therapy Program of the Perelman School of Medicine at the University of Pennsylvania.

Digital Poster Session: Tuesday, May 11, 8:00 – 10:00 a.m. ET

Pompe Disease:

Title: Post-Symptomatic Reversal of Muscle Pathology in a Model of Pompe Disease Using Gene Therapy

Session title: Metabolic, Storage, Endocrine, Liver and Gastrointestinal Diseases

Abstract number: 518

Presenter: Ali Ramezani, Ph.D., Senior Research Investigator, Project Lead, Translational Research, Gene Therapy Program, University of Pennsylvania

Fabry Disease:

Title: Efficacy of Adeno-Associated Viruses Expressing an Engineered Alpha-Galactosidase A Transgene in a Mouse Model of Fabry Disease

Session title: Metabolic, Storage, Endocrine, Liver and Gastrointestinal Diseases

Abstract number: 519

Presenter: CJ (Chunjuan) Song, Ph.D., DABT, Research Director, Translational Research, Gene Therapy Program, University of Pennsylvania

The posters will be made available on the Amicus website following their respective presentations at the meeting.

For more information on the American Society of Gene & Cell Therapy 24^th Annual Meeting, please visit https://annualmeeting.asgct.org/.

About Amicus Therapeutics

Amicus Therapeutics (Nasdaq: FOLD) is a global, patient-dedicated biotechnology company focused on discovering, developing and delivering novel high-quality medicines for people living with rare metabolic diseases. With extraordinary patient focus, Amicus Therapeutics is committed to advancing and expanding a robust pipeline of cutting-edge, first- or best-in-class medicines for rare metabolic diseases. For more information please visit the company’s website at www.amicusrx.com, and follow us on Twitter and LinkedIn.

CONTACT:

Investors:
Andrew Faughnan
Sr. Director, Investor Relations
[email protected]
(609) 662-3809

Media:
Diana Moore
Head of Global Corporate Communications
[email protected]
(609) 662-5079

FOLD–G

Posted on May 5, 2021 7:05 am
Movado Group Issues Corporate Responsibility Report, Providing Transparency Into Its Environmental, Social, and Governance (ESG) Programs

Movado Group Issues Corporate Responsibility Report, Providing Transparency Into Its Environmental, Social, and Governance (ESG) Programs

PARAMUS, N.J.–(BUSINESS WIRE)–
Movado Group, Inc. (NYSE: MOV) today announced the release of its Corporate Responsibility Report, providing transparency into and driving accountability for its environmental, social, and governance (ESG) programs. The Report follows the disclosure and reporting requirements of the Global Reporting Initiative (GRI), an international reporting framework focused on ESG concerns.

The Report is being published following a year characterized by a global health crisis and corporate disruption. During this time, Movado Group drew upon its commitment to behave ethically, to manage responsibly, and to improve the quality of life of those within its influence.

“We believe that trust, respect, passion, teamwork, and collaboration are the foundation to achieving results. These principles helped us navigate over the past year, and they will help us as we emerge from this period with a renewed sense of purpose,” says Chairman and CEO Efraim Grinberg.

The Report includes information about Movado Group’s historical approach to ESG, highlights some of its actions from the fiscal year ended January 31, 2020, and discusses how Movado Group increased its ESG momentum during the fiscal year ended January 31, 2021. Movado Group sees this as an important step toward establishing goals that align with its renewed corporate purpose and creating the framework for a sustainable future. Highlights include:

Diversity & Inclusion: The Report provides Movado Group’s diversity data breakdowns across all associates, management, executives, and Board members and discusses plans to increase diversity, equity, inclusion and belonging across Movado Group.

Environmental Stewardship: The Report details actions Movado Group is taking to reduce environmental impacts and to be a better steward of the planet’s natural resources.

Social Responsibility: The Report describes Movado Group’s commitment to its communities and to the issues that impact them. This commitment extends to those within Movado Group’s influence, such as members of its value chain.

“I am gratified by the performance and progress made by our teams during a time of unprecedented uncertainty,” said Grinberg. “As we move along our Corporate Responsibility journey, we are committed to continuing to learn, evolve, and grow as a company and as responsible corporate citizens.”

For more information and to download Movado Group’s Corporate Responsibility Report, visit www.movadogroup.com/corporate-responsibility.

ABOUT MOVADO GROUP

Movado Group, Inc. designs, sources, and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, COACH®, TOMMY HILFIGER®, HUGO BOSS®, LACOSTE®, and SCUDERIA FERRARI® watches worldwide, and operates Movado Company Stores in the United States and Canada.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005301/en/

ICR, Inc.

Rachel Schacter/Allison Malkin

203-682-8200

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Fashion Other Retail Luxury Retail Specialty

MEDIA:

Posted on May 5, 2021 7:05 am
Prelude Therapeutics Announces Presentation at BofA Securities 2021 Virtual Health Care Conference

WILMINGTON, Del., May 05, 2021 (GLOBE NEWSWIRE) — Prelude Therapeutics Inc. (“Prelude”, “the Company”, “we”, “our”) (Nasdaq: PRLD), a clinical-stage precision oncology company, today announced that Kris Vaddi, PhD, Chief Executive Officer, will present at the BofA Securities 2021 Virtual Health Care Conference on Wednesday, May 12 at 5:00 p.m. ET.

A live webcast of the presentation chat can be accessed under “Events & Presentations” in the Investor Section of the Company’s website, https://investors.preludetx.com/news-and-events/events-and-presentations, where a replay of the presentation will also be available for a limited time.

About Prelude Therapeutics

Prelude Therapeutics is a clinical-stage precision oncology company developing innovative drug candidates targeting critical cancer cell pathways. The Company’s lead product candidates are designed to be oral, potent, and selective inhibitors of PRMT5. Prelude’s first clinical candidate, PRT543, is in Phase 1 development for advanced solid tumors and select myeloid malignancies. Prelude is also advancing PRT811, a second PRMT5 inhibitor optimized for high brain exposure, in a Phase 1 clinical trial including glioblastoma multiforme (GBM). The Company’s pipeline also includes its third clinical candidate, PRT1419, an orally available MCL1 inhibitor in Phase 1 development for patients with relapsed/refractory hematologic malignancies, and its two most advanced preclinical candidates, PRT2527, a CDK9 inhibitor, and PRT-SCA2, a SMARCA2 protein degrader.

Contact

Investors: Melissa Forst
Media: Deborah Elson
Argot Partners
212.600.1902
[email protected]

Posted on May 5, 2021 7:05 am
CHIMERA INVESTMENT CORPORATION REPORTS 1ST QUARTER 2021 EARNINGS

CHIMERA INVESTMENT CORPORATION REPORTS 1ST QUARTER 2021 EARNINGS

1ST QUARTER GAAP NET INCOME OF $0.54 PER COMMON SHARE

1ST QUARTER CORE EARNINGS⁽¹⁾ OF $0.36 PER COMMON SHARE

GAAP BOOK VALUE OF $11.44 PER COMMON SHARE

BOARD INCREASED SECOND QUARTER DIVIDEND BY 10% TO $0.33 PER SHARE OF COMMON STOCK

NEW YORK–(BUSINESS WIRE)–
Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the first quarter ended March 31, 2021. The Company’s GAAP net income for the first quarter was $139 million, or $0.54 per common share. Core earnings⁽¹⁾ for the first quarter ended March 31, 2021 was $87 million, or $0.36 per common share.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210505005262/en/

“This quarter we took many proactive steps towards portfolio optimization and the expansion of Chimera’s core earnings. Through re-securitization activity, we lowered the financing cost and freed up capital for future accretive investments”, said Mohit Marria, Chimera’s CEO and Chief Investment Officer. “Securitization of our mortgage assets provides Chimera with low-cost, long-term, non-recourse financing. We expect the re-securitizations from this quarter to benefit our portfolio for a long period of time.”

(1) Core earnings per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 5.

Other Information

Chimera Investment Corporation is a publicly traded real estate investment trust, or REIT, that is primarily engaged in the business of investing directly or indirectly through our subsidiaries, on a leveraged basis, in a diversified portfolio of mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate related securities.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands, except share and per share data)

(Unaudited)

March 31, 2021

December 31, 2020

Cash and cash equivalents

$

317,489

$

269,090

Non-Agency RMBS, at fair value (net of allowance for credit losses of $54 thousand and $180 thousand, respectively)

2,013,478

2,150,714

Agency RMBS, at fair value

86,354

90,738

Agency CMBS, at fair value

1,355,289

1,740,368

Loans held for investment, at fair value

12,808,012

13,112,129

Accrued interest receivable

77,562

81,158

Other assets

41,078

78,822

Total assets ⁽¹⁾

$

16,699,262

$

17,523,019

Liabilities:

Secured financing agreements ($5.7 billion and $6.7 billion pledged as collateral, respectively)

$

4,045,912

$

4,636,847

Securitized debt, collateralized by Non-Agency RMBS ($479 million and $505 million pledged as collateral, respectively)

107,367

113,433

Securitized debt at fair value, collateralized by loans held for investment ($12.1 billion and $12.4 billion pledged as collateral, respectively)

8,734,372

8,711,677

Long term debt

51,772

51,623

Payable for investments purchased

76,534

106,169

Accrued interest payable

24,855

40,950

Dividends payable

77,355

77,213

Accounts payable and other liabilities

14,597

5,721

Total liabilities ⁽¹⁾

$

13,132,764

$

13,743,633

Stockholders’ Equity:

Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:

8.00% Series A cumulative redeemable: 5,800,000 shares issued and outstanding, respectively ($145,000 liquidation preference)

$

58

$

58

8.00% Series B cumulative redeemable: 13,000,000 shares issued and outstanding, respectively ($325,000 liquidation preference)

130

130

7.75% Series C cumulative redeemable: 10,400,000 shares issued and outstanding, respectively ($260,000 liquidation preference)

104

104

8.00% Series D cumulative redeemable: 8,000,000 shares issued and outstanding, respectively ($200,000 liquidation preference)

80

80

Common stock: par value $0.01 per share; 500,000,000 shares authorized, 230,553,340 and 230,556,760 shares issued and outstanding, respectively

2,306

2,306

Additional paid-in-capital

4,320,419

4,538,029

Accumulated other comprehensive income

493,651

558,096

Cumulative earnings

4,039,485

3,881,894

Cumulative distributions to stockholders

(5,289,735

)

(5,201,311

)

Total stockholders’ equity

$

3,566,498

$

3,779,386

Total liabilities and stockholders’ equity

$

16,699,262

$

17,523,019

(1) The Company’s consolidated statements of financial condition include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Chimera Investment Corporation). As of March 31, 2021, and December 31, 2020, total assets of consolidated VIEs were $11,736,522 and $12,165,017, respectively, and total liabilities of consolidated VIEs were $8,113,248 and $8,063,110, respectively.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except share and per share data)

(Unaudited)

For the Quarters Ended

March 31, 2021

March 31, 2020

Net interest income:

Interest income ⁽¹⁾

$

243,127

$

300,266

Interest expense ⁽²⁾

108,066

142,083

Net interest income

135,061

158,183

Increase/(decrease) in provision for credit losses

(126

)

6,314

Other investment gains (losses):

Net unrealized gains (losses) on derivatives

—

201,000

Realized gains (losses) on terminations of interest rate swaps

—

(463,966

)

Net realized gains (losses) on derivatives

—

(41,086

)

Net gains (losses) on derivatives

—

(304,052

)

Net unrealized gains (losses) on financial instruments at fair value

270,012

(260,887

)

Net realized gains (losses) on sales of investments

37,796

75,854

Gains (losses) on extinguishment of debt

(237,137

)

—

Total other gains (losses)

70,671

(489,085

)

Other expenses:

Compensation and benefits

13,439

12,934

General and administrative expenses

5,198

5,137

Servicing and asset manager fees

9,281

10,530

Transaction expenses

16,437

4,906

Total other expenses

44,355

33,507

Income (loss) before income taxes

161,503

(370,723

)

Income taxes

3,912

32

Net income (loss)

$

157,591

$

(370,755

)

Dividends on preferred stock

18,438

18,438

Net income (loss) available to common shareholders

$

139,153

$

(389,193

)

Net income (loss) per share available to common shareholders:

Basic

$

0.60

$

(2.08

)

Diluted

$

0.54

$

(2.08

)

Weighted average number of common shares outstanding:

Basic

230,567,231

187,018,602

Diluted

261,435,081

187,018,602

(1) Includes interest income of consolidated VIEs of $158,100 and $174,681 for the quarters ended March 31, 2021 and 2020, respectively.

(2) Includes interest expense of consolidated VIEs of $65,205 and $64,629 for the quarters ended March 31, 2021 and 2020, respectively.

CHIMERA INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(dollars in thousands, except share and per share data)

(Unaudited)

For the Quarters Ended

March 31, 2021

March 31, 2020

Comprehensive income (loss):

Net income (loss)

$

157,591

$

(370,755

)

Other comprehensive income:

Unrealized gains (losses) on available-for-sale securities, net

(38,652

)

(199,204

)

Reclassification adjustment for net realized losses (gains) included in net income

(25,793

)

(6,641

)

Other comprehensive income (loss)

(64,445

)

(205,845

)

Comprehensive income (loss) before preferred stock dividends

$

93,146

$

(576,600

)

Dividends on preferred stock

$

18,438

$

18,438

Comprehensive income (loss) available to common stock shareholders

$

74,708

$

(595,038

)

Core earnings

Core earnings is a non-GAAP measure and is defined as GAAP net income excluding unrealized gains on the aggregate portfolio, provision for credit losses, interest expense on long term debt, impairment losses, realized gains on sales of investments, realized gains or losses on futures, realized gains or losses on swap terminations, gain on deconsolidation, extinguishment of debt and expenses incurred in relation to securitizations. In addition, stock compensation expense charges incurred on awards to retirement eligible employees is reflected as an expense over a vesting period (36 months) rather than reported as an immediate expense.

As defined, core earnings include interest income and expense, as well as periodic cash settlements on interest rate swaps used to hedge interest rate risk and other expenses. Core earnings is inclusive of preferred dividend charges, compensation and benefits (adjusted for awards to retirement eligible employees), general and administrative expenses, servicing fees, as well as income tax expenses incurred during the period. Management believes that the presentation of core earnings provides investors with a useful measure but has important limitations. We believe core earnings as described above helps us evaluate our financial performance period over period without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, core earnings should not be viewed in isolation and is not a substitute for net income or net income per basic share computed in accordance with GAAP. In addition, our methodology for calculating core earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and accordingly, our reported core earnings may not be comparable to the core earnings reported by other REITs.

The following table provides GAAP measures of net income and net income per diluted share available to common stockholders for the periods presented and details with respect to reconciling the line items to core earnings and related per average diluted common share amounts. Core earnings is presented on an adjusted dilutive shares basis. The adjusted dilutive shares used for core earnings is a non-GAAP measure which includes the GAAP dilutive shares of 261 million, adjusted for the dilutive effect of approximately 20 million shares on warrants issued in second quarter of 2020. We exclude the dilutive effect of the warrants as the warrant holders do not participate in dividends. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

For the Quarters Ended

March 31, 2021

December 31, 2020

September 30, 2020

June 30, 2020

March 31, 2020

(dollars in thousands, except per share data)

GAAP Net income available to common stockholders

$

139,153

$

128,797

$

348,891

$

(73,393

)

$

(389,193

)

Adjustments:

Interest expense on long term debt

1,076

1,197

1,495

4,391

—

Increase (decrease) in provision for credit losses

(126

)

13

(1,650

)

(4,497

)

6,314

Net unrealized (gains) losses on derivatives

—

—

—

—

(201,000

)

Net unrealized (gains) losses on financial instruments at fair value

(270,012

)

(61,379

)

(260,766

)

171,921

260,887

Net realized (gains) losses on sales of investments

(37,796

)

329

(65,041

)

(26,380

)

(75,854

)

(Gains) losses on extinguishment of debt

237,137

(919

)

55,794

(459

)

—

Realized (gains) losses on terminations of interest rate swaps

—

—

—

—

463,966

Net realized (gains) losses on Futures⁽¹⁾

—

—

—

—

34,700

Transaction expenses

16,437

3,827

1,624

4,710

4,906

Stock Compensation expense for retirement eligible awards

661

(225

)

(275

)

(273

)

1,189

Core Earnings

$

86,530

$

71,640

$

80,072

$

76,020

$

105,915

GAAP net income per diluted common share

$

0.54

$

0.49

$

1.32

$

(0.37

)

$

(2.08

)

Core earnings per adjusted diluted common share ⁽²⁾

$

0.36

$

0.29

$

0.33

$

0.32

$

0.56

(1) Included in net realized gains (losses) on derivatives in the Consolidated Statements of Operations.

(2) We note that core and taxable earnings will typically differ, and may materially differ, due to differences on realized gains and losses on investments and related hedges, credit loss recognition, timing differences in premium amortization, accretion of discounts, equity compensation and other items.

The following tables provide a summary of the Company’s MBS portfolio at March 31, 2021 and December 31, 2020.

March 31, 2021

Principal or

Notional Value

at Period-End

(dollars in

thousands)

Weighted

Average

Amortized

Cost Basis

Weighted

Average

Fair Value

Weighted

Average

Coupon

Weighted

Average Yield at

Period-End ⁽¹⁾

Non-Agency RMBS

Senior

$

1,498,212

$

50.29

80.26

4.5%

17.1%

Subordinated

857,925

65.62

69.26

3.8%

6.5%

Interest-only

4,850,934

4.74

4.47

1.6%

14.7%

Agency RMBS

Interest-only

1,199,688

9.52

7.20

1.6%

1.1%

Agency CMBS

Project loans

1,196,682

101.72

111.40

4.2%

4.1%

Interest-only

1,114,212

1.79

1.99

0.6%

7.8%

(1) Bond Equivalent Yield at period end.

December 31, 2020

Principal or

Notional Value

at Period-End

(dollars in

thousands)

Weighted

Average

Amortized

Cost Basis

Weighted

Average

Fair Value

Weighted

Average

Coupon

Weighted

Average Yield at

Period-End ⁽¹⁾

Non-Agency RMBS

Senior

$

1,560,135

$

50.65

$

81.90

4.5%

16.9%

Subordinated

905,674

62.46

67.43

3.8%

6.3%

Interest-only

5,628,240

4.43

4.66

1.5%

16.2%

Agency RMBS

Interest-only

1,262,963

9.41

7.18

1.7%

1.6%

Agency CMBS

Project loans

1,527,621

101.81

112.23

4.1%

3.8%

Interest-only

1,326,665

1.78

1.95

0.6%

8.4%

(1) Bond Equivalent Yield at period end.

At March 31, 2021 and December 31, 2020, the secured financing agreements collateralized by MBS and Loans held for investment had the following remaining maturities and borrowing rates.

March 31, 2021

December 31, 2020

(dollars in thousands)

Principal ⁽¹⁾

Weighted

Average

Borrowing

Rates

Range of

Borrowing Rates

Principal ⁽¹⁾

Weighted

Average

Borrowing

Rates

Range of

Borrowing Rates

Overnight

$

—

NA

NA

$

—

NA

NA

1 to 29 days

1,460,163

1.46%

0.10% – 7.97%

1,521,134

0.38%

0.20% – 2.72%

30 to 59 days

315,543

2.03%

1.95% – 2.44%

481,257

4.35%

2.42% – 6.61%

60 to 89 days

314,203

2.37%

1.15% – 2.61%

352,684

2.78%

1.34% – 6.30%

90 to 119 days

431,222

3.28%

1.76% – 4.50%

301,994

7.97%

7.97% – 7.97%

120 to 180 days

370,538

2.06%

1.60% – 2.40%

595,900

5.29%

2.40% – 6.26%

180 days to 1 year

44,344

2.36%

2.36% – 2.36%

345,204

3.60%

3.25% – 4.50%

1 to 2 years

746,478

4.11%

2.86% – 4.38%

—

NA

NA

2 to 3 years

—

NA

NA

642,696

4.91%

1.65% – 7.00%

Greater than 3 years

363,421

5.56%

5.56% – 5.56%

395,978

5.56%

5.56% – 5.56%

Total

$

4,045,912

2.69%

$

4,636,847

3.41%

(1) The values for secured financing agreements in the table above is net of $4 million and $8 million of deferred financing cost as of March 31, 2021 and December 31, 2020, respectively.

The following table summarizes certain characteristics of our portfolio at March 31, 2021 and December 31, 2020.

March 31, 2021

December 31, 2020

GAAP Leverage at period-end

3.6:1

3.6:1

GAAP Leverage at period-end (recourse)

1.1:1

1.2:1

March 31, 2021

December 31, 2020

March 31, 2021

December 31, 2020

Portfolio Composition

Amortized Cost

Fair Value

Non-Agency RMBS

10.3%

10.2%

12.4%

12.6%

Senior

5.0%

5.0%

7.4%

7.5%

Subordinated

3.8%

3.6%

3.7%

3.6%

Interest-only

1.5%

1.6%

1.3%

1.5%

Agency RMBS

0.8%

0.7%

0.5%

0.5%

Pass-through

—%

—%

—%

—%

Interest-only

0.8%

0.7%

0.5%

0.5%

Agency CMBS

8.2%

10.0%

8.3%

10.2%

Project loans

8.1%

9.9%

8.2%

10.0%

Interest-only

0.1%

0.1%

0.1%

0.2%

Loans held for investment

80.7%

79.1%

78.8%

76.7%

Fixed-rate percentage of portfolio

95.0%

94.9%

93.6%

93.2%

Adjustable-rate percentage of portfolio

5.0%

5.1%

6.4%

6.8%

Economic Net Interest Income

Our “Economic net interest income” is a non-GAAP financial measure, that equals interest income, less interest expense and realized losses on our interest rate swaps. Realized losses on our interest rate swaps are the periodic net settlement payments made or received. For the purpose of computing economic net interest income and ratios relating to cost of funds measures throughout this section, interest expense includes net payments on our interest rate swaps, which is presented as a part of Realized gains (losses) on derivatives in our Consolidated Statements of Operations and Comprehensive Income. Interest rate swaps are used to manage the increase in interest paid on repurchase agreements in a rising rate environment. Presenting the net contractual interest payments on interest rate swaps with the interest paid on interest-bearing liabilities reflects our total contractual interest payments. We believe this presentation is useful to investors because it depicts the economic value of our investment strategy by showing actual interest expense and net interest income. Where indicated, interest expense, including interest payments on interest rate swaps, is referred to as economic interest expense. Where indicated, net interest income reflecting interest payments on interest rate swaps, is referred to as economic net interest income.

The following table reconciles the GAAP and non-GAAP measurements reflected in the Management’s Discussion and Analysis of Financial Condition and Results of Operations.

GAAP

Interest

Income

GAAP

Interest

Expense

Net

Realized

(Gains)

Losses on

Interest

Rate

Swaps

Interest

Expense

on Long

Term

Debt

Economic

Interest

Expense

GAAP Net

Interest

Income

Net

Realized

Gains

(Losses)

on Interest

Rate

Swaps

Other⁽¹⁾

Economic

Net

Interest

Income

For the Quarter Ended March 31, 2021

$

243,127

$

108,066

$

—

$

(1,076

)

$

106,990

$

135,061

$

—

$

1,065

$

136,126

For the Quarter Ended December 31, 2020

$

236,156

$

120,285

$

—

$

(1,197

)

$

119,088

$

115,871

$

—

$

1,177

$

117,048

For the Quarter Ended September 30, 2020

$

247,905

$

124,557

$

—

$

(1,495

)

$

123,062

$

123,348

$

—

$

1,487

$

124,835

For the Quarter Ended June 30, 2020

$

245,922

$

129,256

$

—

$

(4,391

)

$

124,865

$

116,666

$

—

$

4,358

$

121,024

For the Quarter Ended March 31, 2020

$

300,266

$

142,083

$

6,385

$

—

$

148,468

$

158,183

$

(6,385

)

$

(1,266

)

$

150,532

(1) Primarily interest expense on Long term debt and interest income on cash and cash equivalents.

The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income, and net interest rate spread for the periods presented.

For the Quarter Ended

March 31, 2021

March 31, 2020

(dollars in thousands)

(dollars in thousands)

Average

Balance

Interest

Average

Yield/Cost

Average

Balance

Interest

Average

Yield/Cost

Assets:

Interest-earning assets ⁽¹⁾:

Agency RMBS

$

116,517

$

317

1.1%

$

4,652,843

$

42,663

3.7%

Agency CMBS

1,360,895

26,607

7.8%

2,204,435

20,698

3.8%

Non-Agency RMBS

1,577,137

55,800

14.2%

1,883,781

61,014

13.0%

Loans held for investment

12,253,034

160,392

5.2%

13,716,833

174,625

5.1%

Total

$

15,307,583

$

243,116

6.4%

$

22,457,892

$

299,000

5.3%

Liabilities and stockholders’ equity:

Interest-bearing liabilities:

Secured financing agreements collateralized by:

Agency RMBS

$

66,951

$

149

0.9%

$

4,406,106

$

27,114

2.5%

Agency CMBS

1,236,361

580

0.2%

2,112,244

12,361

2.3%

Non-Agency RMBS

1,002,935

12,479

5.0%

1,384,095

9,666

2.8%

Loans held for investment

2,253,811

24,216

4.3%

3,852,347

32,890

3.4%

Securitized debt

8,588,423

69,566

3.2%

8,079,597

66,437

3.3%

Total

$

13,148,481

$

106,990

3.3%

$

19,834,389

$

148,468

3.0%

Economic net interest income/net interest rate spread

$

136,126

3.1%

$

150,532

2.3%

Net interest-earning assets/net interest margin

$

2,159,102

3.6%

$

2,623,503

2.7%

Ratio of interest-earning assets to interest bearing liabilities

1.16

1.13

(1) Interest-earning assets at amortized cost

(2) Interest includes net cash paid/received on swaps

The table below shows our Net Income and Economic Net Interest Income as a percentage of average stockholders’ equity and Core Earnings as a percentage of average common stockholders’ equity. Return on average equity is defined as our GAAP net income (loss) as a percentage of average equity. Average equity is defined as the average of our beginning and ending stockholders’ equity balance for the period reported. Economic Net Interest Income and Core Earnings are non-GAAP measures as defined in previous sections

Return on

Average Equity

Economic Net

Interest

Income/Average

Equity *

Core

Earnings/Average

Common Equity

(Ratios have been annualized)

For the Quarter Ended March 31, 2021

17.16%

14.82%

12.62%

For the Quarter Ended December 31, 2020

15.76%

12.53%

10.21%

For the Quarter Ended September 30, 2020

41.43%

14.08%

12.24%

For the Quarter Ended June 30, 2020

(6.62)%

14.58%

12.72%

For the Quarter Ended March 31, 2020

(41.21)%

16.73%

15.88%

* Includes effect of realized losses on interest rate swaps and excludes long term debt expense.

The following table presents changes to Accretable Discount (net of premiums) as it pertains to our Non-Agency RMBS portfolio, excluding premiums on IOs, during the previous five quarters.

For the Quarters Ended

(dollars in thousands)

Accretable Discount (Net of Premiums)

March 31, 2021

December 31, 2020

September 30, 2020

June 30, 2020

March 31, 2020

Balance, beginning of period

$

409,690

$

422,981

$

410,447

$

438,232

$

494,255

Accretion of discount

(24,023

)

(21,281

)

(20,045

)

(22,508

)

(24,784

)

Purchases

—

758

2,096

—

(4,336

)

Sales and deconsolidation

(41,651

)

98

—

(23,425

)

438

Transfers from/(to) credit reserve, net

14,546

7,134

30,483

18,148

(27,341

)

Balance, end of period

$

358,562

$

409,690

$

422,981

$

410,447

$

438,232

Disclaimer

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our business and investment strategy; our ability to accurately forecast the payment of future dividends on our common and preferred stock, and the amount of such dividends; our ability to determine accurately the fair market value of our assets; availability of investment opportunities in real estate-related and other securities, including our valuation of potential opportunities that may arise as a result of current and future market dislocations; effect of the novel coronavirus (or COVID-19) pandemic on real estate market, financial markets and our Company, including the impact on the value, availability, financing and liquidity of mortgage assets; how COVID-19 may affect us, our operations and our personnel; our expected investments; changes in the value of our investments, including negative changes resulting in margin calls related to the financing of our assets; changes in interest rates and mortgage prepayment rates; prepayments of the mortgage and other loans underlying our mortgage-backed securities, or RMBS, or other asset-backed securities, or ABS; rates of default, delinquencies or decreased recovery rates on our investments; general volatility of the securities markets in which we invest; our ability to maintain existing financing arrangements and our ability to obtain future financing arrangements; our ability to effect our strategy to securitize residential mortgage loans; interest rate mismatches between our investments and our borrowings used to finance such purchases; effects of interest rate caps on our adjustable-rate investments; the degree to which our hedging strategies may or may not protect us from interest rate volatility; the impact of and changes to various government programs, including in response to COVID-19; impact of and changes in governmental regulations, tax law and rates, accounting guidance, and similar matters; market trends in our industry, interest rates, the debt securities markets or the general economy; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; availability of qualified personnel; our ability to maintain our classification as a real estate investment trust, or, REIT, for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended, or 1940 Act; our expectations regarding materiality or significance; and the effectiveness of our disclosure controls and procedures.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

Readers are advised that the financial information in this press release is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by the Company’s independent auditors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005262/en/

Investor Relations

888-895-6557

www.chimerareit.com

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Residential Building & Real Estate Construction & Property REIT

MEDIA:

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