Market Newsdesk

May 5, 2021 7:04 am

CDW Reports First Quarter 2021 Earnings

CDW Reports First Quarter 2021 Earnings

Reinforces Power of Business Model and Strategy

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–
CDW Corporation (Nasdaq:CDW):

(Dollars in millions, except per share amounts)	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020		% Chg.
Net Sales	$	4,837.5	$	4,389.2	10.2
Average Daily Sales¹	76.8		68.6		12.0
Gross Profit	795.2		756.5		5.1
Operating Income	323.4		245.8		31.6
Net Income	232.6		167.9		38.6
Non-GAAP Operating Income²	367.7		303.9		21.0
Net Income per Diluted Share	$	1.63	$	1.16	40.3
Non-GAAP Net Income per Diluted Share²	$	1.74	$	1.38	26.2
¹There were 63 and 64 selling days for the three months ended March 31, 2021 and 2020, respectively.
²Non-GAAP measures used in this release that are not based on accounting principles generally accepted in the United States of America (“US GAAP”) are each defined and reconciled to the most directly comparable US GAAP measure in the attached schedules.

CDW Corporation (Nasdaq: CDW), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced first quarter 2021 results. CDW also announced the approval by its Board of Directors of a quarterly cash dividend of $0.40 to be paid on June 10, 2021 to all stockholders of record as of the close of business on May 25, 2021.

“The diversity of our customer end markets and our solutions portfolio drove our record first quarter results, and reinforced confidence in our strategy. During the quarter, customers focused on remote enablement and investments for the future. Technology spend rebounded in our channels most impacted last year due to the COVID-19 pandemic,” said Christine A. Leahy, president and chief executive officer, CDW. “I am extremely proud of the commitment, agility and resolve of our coworkers, who continued to successfully deliver customer outcomes and capabilities across the full technology solutions stack and lifecycle.”

“Strong operating results were amplified by share repurchases, delivering a 26 percent increase in Non-GAAP net income per diluted share,” said Collin B. Kebo, chief financial officer, CDW. “Given this quarter’s results and our expectations for the balance of the year, we now expect 2021 constant currency Non-GAAP net income per diluted share growth of low double-digits.”

“We expect to exceed our previous 2021 outlook of outpacing the US IT market growth by 200 to 300 basis points on a constant currency basis. We will continue to execute our strategy, invest in the business, and be laser-focused on meeting the needs of our more than 250,000 customers in the United States, the United Kingdom and Canada and remaining the partner of choice for more than 1,000 leading and emerging technology brands as the technology market continues to evolve,” concluded Leahy.

First Quarter of 2021 Highlights:

Total Net sales in the first quarter of 2021 were $4,838 million, compared to $4,389 million in the first quarter of 2020, an increase of 10.2 percent. There were 63 and 64 selling days for the three months ended March 31, 2021 and 2020, respectively. On an average daily sales basis, Net sales growth increased 12.0 percent and Net sales growth on a constant currency basis increased 10.9 percent. Currency impact to Net sales growth was driven by favorable translation of the British pound and Canadian dollar to US dollar. First quarter Net sales performance, on an average daily sales basis, included:

Total Corporate segment Net sales of $1,806 million, 4.0 percent lower than 2020.
Total Small Business segment Net sales of $433 million, 12.3 percent higher than 2020.
Total Public segment Net sales of $1,922 million, 28.0 percent higher than 2020. Public results were driven by an increase in Net sales to Education customers of 101.2 percent. Net sales to Government and Healthcare customers decreased 7.8 percent and 2.3 percent, respectively.
Net sales for CDW’s UK and Canadian operations, combined as “Other” for financial reporting purposes, were $678 million, 22.6 percent higher than 2020.

Gross profit in the first quarter of 2021 was $795 million, compared to $757 million for the first quarter of 2020, representing an increase of 5.1 percent. Gross profit margin was 16.4 percent in the first quarter of 2021 versus 17.2 percent in the first quarter of 2020. The decrease in Gross profit margin was primarily driven by lower product margin, including notebook mix and rate, and overlapping higher margin configuration services in the prior year, partially offset by an increase in the mix of netted down revenues, primarily Software as a Service.

Total selling and administrative expenses were $472 million in the first quarter of 2021, compared to $511 million in the first quarter of 2020, representing a decrease of 7.6 percent. The decrease was primarily due to lower bad debt expense, lower intangible asset amortization and lower travel and entertainment expenses, partially offset by higher investments in coworkers.

Operating income was $323 million in the first quarter of 2021, compared to $246 million in the first quarter of 2020, representing an increase of 31.6 percent. Non-GAAP operating income was $368 million in the first quarter of 2021, compared to $304 million in the first quarter of 2020, representing an increase of 21.0 percent. The Non-GAAP operating income margin was 7.6 percent for the first quarter of 2021 versus 6.9 percent for the first quarter of 2020.

Net interest expense was $36 million in the first quarter of 2021 compared to $38 million in the first quarter of 2020, representing a decrease of 6.1 percent. The decrease was primarily driven by a lower effective interest rate on the Term Loan in 2021 compared to 2020 and the benefits from the August 2020 senior notes refinancing, partially offset by additional interest expense on the senior notes issued in April 2020.

The effective tax rate was 19.5 percent in the first quarter of 2021 compared to 20.7 percent in the first quarter 2020, which resulted in tax expense of $56 million and $44 million, respectively.

Net income was $233 million in the first quarter of 2021, compared to $168 million in the first quarter of 2020, representing an increase of 38.6 percent. Non-GAAP net income was $249 million in the first quarter of 2021, compared to $200 million in the first quarter of 2020, representing an increase of 24.7 percent.

Weighted average diluted shares outstanding were 143 million for the first quarter of 2021, compared to 145 million for the first quarter of 2020. Net income per diluted share for the first quarter of 2021 was $1.63, compared to $1.16 for the first quarter of 2020, representing an increase of 40.3 percent. Non-GAAP net income per diluted share for the first quarter of 2021 was $1.74, compared to $1.38 for the first quarter of 2020, representing an increase of 26.2 percent.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. These statements relate to analyses and other information, which are based on forecasts of future results or events and estimates of amounts not yet determinable. These statements also relate to our future prospects, developments and business strategies. We claim the protection of The Private Securities Litigation Reform Act of 1995 for all forward-looking statements in this release.

These forward-looking statements are identified by the use of terms and phrases such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “goal,” “intend,” “plan,” “potential,” “predict,” “project,” “target” and similar terms and phrases or future or conditional verbs such as “could,” “may,” “should,” “will,” and “would.” However, these words are not the exclusive means of identifying such statements. Although we believe that our plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those that we expected.

Important factors that could cause actual results or events to differ materially from our expectations, or cautionary statements, are disclosed under the section entitled “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2020 and from time to time in our subsequent Quarterly Reports on Form 10-Q and our other US Securities and Exchange Commission (“SEC”) filings. These factors include, among others, the COVID-19 pandemic and actions taken in response thereto and the associated impact on our business, results of operations, cash flows, financial condition and liquidity; CDW’s relationships with vendor partners and terms of their agreements; continued innovations in hardware, software and services offerings by CDW’s vendor partners; substantial competition that could reduce CDW’s market share; the continuing development, maintenance and operation of CDW’s information technology systems; potential breaches of data security and failure to protect our information technology systems from cybersecurity threats; potential failures to provide high-quality services to CDW’s customers; potential losses of any key personnel; potential adverse occurrences at one of CDW’s primary facilities or customer data centers; increases in the cost of commercial delivery services or disruptions of those services; CDW’s exposure to accounts receivable and inventory risks; future acquisitions or alliances; fluctuations in CDW’s operating results; fluctuations in foreign currency; global and regional economic and political conditions; potential interruptions of the flow of products from suppliers; decreases in spending on technology products and services; potential failures to comply with Public segment contracts or applicable laws and regulations; current and future legal proceedings and audits; changes in laws, including regulations or interpretations thereof; CDW’s level of indebtedness and ability to generate sufficient cash to service such indebtedness; restrictions imposed by agreements relating to CDW’s indebtedness on its operations and liquidity; changes in, or the discontinuation of, CDW’s share repurchase program or dividend payments; and other risk factors or uncertainties identified from time to time in CDW’s filings with the SEC. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements contained in the section entitled “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2020 as well as other cautionary statements that are made from time to time in our other SEC filings and public communications. You should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties.

We caution you that the important factors referenced above may not reflect all of the factors that could cause actual results or events to differ from our expectations. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Non-GAAP Financial Information

Non-GAAP operating income excludes, among other things, charges related to the amortization of acquisition-related intangible assets, equity-based compensation and related payroll taxes, and acquisition and integration expenses. Non-GAAP operating income margin is defined as Non-GAAP operating income as a percentage of Net sales. Non-GAAP income before income taxes and Non-GAAP net income exclude, among other things, charges related to acquisition-related intangible asset amortization, equity-based compensation, acquisition and integration expenses, and the associated tax effects of each. Net sales growth on a constant currency basis is defined as Net sales growth excluding the impact of foreign currency translation on Net sales compared to the prior period.

Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP income before income taxes, Non-GAAP net income, Non-GAAP net income per diluted share and Net sales growth on a constant currency basis are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with US GAAP.

CDW believes these measures provide analysts, investors and management with helpful information regarding the underlying operating performance of CDW’s business, as they remove the impact of items that management believes are not reflective of underlying operating performance. CDW uses these measures to evaluate period-over-period performance as management believes they provide a more comparable measure of the underlying business.

Our annual targets are provided on a Non-GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as currency impacts or interest rates, or reliably predicted because they are not part of CDW’s routine activities, such as refinancing activities or acquisition and integration expenses.

The financial statement tables that accompany this press release include a reconciliation of non-GAAP financial measures to the applicable most comparable US GAAP financial measures. Non-GAAP measures used by CDW may differ from similar measures used by other companies, even when similar terms are used to identify such measures.

About CDW

CDW Corporation (Nasdaq: CDW) is a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. A Fortune 500 company and member of the S&P 500 Index, CDW was founded in 1984 and employs over 10,000 coworkers. For the trailing twelve months ended March 31, 2021, CDW generated Net sales of approximately $19 billion. For more information about CDW, please visit www.CDW.com.

Webcast

CDW Corporation will hold a conference call today, May 5, 2021 at 7:30 a.m. CT/8:30 a.m. ET to discuss its first quarter financial results. The conference call, which will be broadcast live via the Internet, and a copy of this press release along with supplemental slides used during the call, can be accessed on CDW’s website at investor.cdw.com. For those unable to participate in the live call, a replay of the webcast will be available at investor.cdw.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.

CDWPR-FI

CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollars and shares in millions, except per-share amounts) (unaudited)

	Three Months Ended March 31,
	2021			2020			% Change⁽ⁱ⁾

Net sales	$	4,837.5		$	4,389.2		10.2	%
Cost of sales	4,042.3			3,632.7			11.3

Gross profit	795.2			756.5			5.1

Selling and administrative expenses	471.8			510.7			(7.6	)
Operating income	323.4			245.8			31.6

Interest expense, net	(35.6		)	(37.9		)	(6.1	)
Other income, net	1.1			3.9			(74.0	)

Income before income taxes	288.9			211.8			36.4

Income tax expense	(56.3		)	(43.9		)	28.0

Net income	$	232.6		$	167.9		38.6	%

Net income per common share:
Basic	$	1.65		$	1.18		40.1	%
Diluted	$	1.63		$	1.16		40.3	%

Weighted-average common shares outstanding:
Basic	141.1			142.7
Diluted	143.1			144.9

(i)	There were 63 and 64 selling days for the three months ended March 31, 2021 and 2020, respectively.

CDW CORPORATION AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS

CDW has included reconciliations of Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP income before income taxes, Non-GAAP net income, Non-GAAP net income per diluted share and Net sales growth on a constant currency basis for the three months ended March 31, 2021 and 2020 below.

CDW CORPORATION AND SUBSIDIARIES NON-GAAP OPERATING INCOME AND NON-GAAP OPERATING INCOME MARGIN (dollars in millions) (unaudited)

	Three Months Ended March 31,
	2021		% of Net sales		2020		% of Net sales

Operating income, as reported	$	323.4	6.7	%	$	245.8	5.6	%
Amortization of intangibles⁽ⁱ⁾	21.6				44.6
Equity-based compensation	15.8				8.8
Other adjustments⁽ⁱⁱ⁾	6.9				4.7
Non-GAAP operating income	$	367.7	7.6	%	$	303.9	6.9	%

(i)	Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.
(ii)	Includes other expenses such as acquisition and integration expenses, payroll taxes on equity-based compensation and expenses related to the relocation of the downtown Chicago office.

CDW CORPORATION AND SUBSIDIARIES NON-GAAP INCOME BEFORE INCOME TAXES, NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER DILUTED SHARE (dollars and shares in millions, except per-share amounts) (unaudited)

	Three Months Ended March 31,
	2021										2020
	Income before Income Taxes		Income Tax Expense⁽ⁱ⁾			Net Income			Effective Tax Rate		Income before Income Taxes		Income Tax Expense⁽ⁱ⁾			Net Income			Effective Tax Rate		Net Income % Change

US GAAP, as reported	$	288.9	$	(56.3	)	$	232.6		19.5	%	$	211.8	$	(43.9	)	$	167.9		20.7	%	38.6	%
Amortization of intangibles⁽ⁱⁱ⁾	21.6		(5.4		)	16.2					44.6		(11.1		)	33.5
Equity-based compensation	15.8		(20.8		)	(5.0		)			8.8		(13.7		)	(4.9		)
Other adjustments⁽ⁱⁱⁱ⁾	7.3		(1.7		)	5.6					4.7		(1.2		)	3.5
Non-GAAP	$	333.6	$	(84.2	)	$	249.4		25.2	%	$	269.9	$	(69.9	)	$	200.0		25.9	%	24.7	%

US GAAP net income per diluted share						$	1.63									$	1.16
Non-GAAP net income per diluted share						$	1.74									$	1.38
Shares used in computing US GAAP and Non-GAAP net income per diluted share						143.1										144.9

(i)	Income tax on non-GAAP adjustments includes excess tax benefits associated with equity-based compensation.
(ii)	Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.
(iii)	Includes other expenses such as acquisition and integration expenses, payroll taxes on equity-based compensation, expenses related to the relocation of the downtown Chicago office and a net loss on extinguishment of long-term debt.

CDW CORPORATION AND SUBSIDIARIES NET SALES GROWTH ON A CONSTANT CURRENCY BASIS (dollars in millions) (unaudited)

	Three Months Ended March 31,
	2021		2020		% Change		Average Daily % Change⁽ⁱ⁾
Net sales, as reported	$	4,837.5	$	4,389.2	10.2	%	12.0	%
Foreign currency translation⁽ⁱⁱ⁾	—		42.2
Net sales, on a constant currency basis	$	4,837.5	$	4,431.4	9.2	%	10.9	%

(i)	There were 63 and 64 selling days for the three months ended March 31, 2021 and 2020, respectively.
(ii)	Represents the effect of translating the prior year results of CDW UK and CDW Canada at the average exchange rates applicable in the current year.

CDW CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions)

	March 31, 2021		December 31, 2020		March 31, 2020
Assets	(unaudited)				(unaudited)

Current assets:
Cash and cash equivalents	$	878.6	$	1,410.2	$	214.4
Accounts receivable, net of allowance for credit losses of $27.0, $29.6, and $35.1 respectively	3,234.1		3,212.6		3,149.4
Merchandise inventory	745.1		760.0		672.1
Miscellaneous receivables	396.6		379.5		442.5
Prepaid expenses and other	215.4		191.2		187.4
Total current assets	5,469.8		5,953.5		4,665.8

Operating lease right-of-use assets	128.3		130.8		129.5
Property and equipment, net	175.5		175.5		331.9
Goodwill	2,812.4		2,595.9		2,529.5
Other intangible assets, net	419.2		445.1		540.2
Other assets	48.3		43.9		25.5
Total assets	$	9,053.5	$	9,344.7	$	8,222.4

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable – trade	$	2,050.8	$	2,088.4	$	1,967.1
Accounts payable – inventory financing	344.8		524.6		345.5
Current maturities of long-term debt	19.6		70.9		33.7
Contract liabilities	326.5		243.7		257.6
Accrued expenses and other current liabilities	967.6		970.7		1,043.3
Total current liabilities	3,709.3		3,898.3		3,647.2

Long-term liabilities:
Debt	3,911.1		3,856.3		3,438.5
Deferred income taxes	29.2		55.3		62.8
Operating lease liabilities	165.1		169.0		129.2
Other liabilities	68.5		68.7		55.0
Total long-term liabilities	4,173.9		4,149.3		3,685.5

Total stockholders’ equity	1,170.3		1,297.1		889.7
Total liabilities and stockholders’ equity	$	9,053.5	$	9,344.7	$	8,222.4

CDW CORPORATION AND SUBSIDIARIES NET SALES DETAIL (dollars in millions) (unaudited)

	Three Months Ended March 31,
	2021		2020		% Change		Average Daily % Change⁽ⁱ⁾

Corporate	$	1,805.6	$	1,911.0	(5.5	)%	(4.0	)%

Small Business	432.7		391.5		10.5		12.3

Public
Government	516.1		568.5		(9.2	)	(7.8	)
Education	943.3		476.2		98.1		101.2
Healthcare	462.3		480.6		(3.8	)	(2.3	)
Total Public	1,921.7		1,525.3		26.0		28.0

Other	677.5		561.4		20.7		22.6

Total Net sales	$	4,837.5	$	4,389.2	10.2	%	12.0	%

(i)	There were 63 and 64 selling days for the three months ended March 31, 2021 and 2020, respectively.

CDW CORPORATION AND SUBSIDIARIES DEBT AND WORKING CAPITAL INFORMATION (dollars in millions)

	March 31, 2021			December 31, 2020			March 31, 2020
	(unaudited)						(unaudited)
Debt and Revolver Availability
Cash and cash equivalents	$	878.6		$	1,410.2		$	214.4
Total debt	3,930.7			3,927.2			3,472.2
Revolver availability	1,260.0			1,059.3			998.6
Cash plus revolver availability	2,138.6			2,469.5			1,213.0

Working Capital⁽ⁱ⁾
Days of sales outstanding	57			57			58
Days of supply in inventory	16			14			14
Days of purchases outstanding	(51		)	(54		)	(52		)
Cash conversion cycle	22			17			20

(i)	Based on a rolling three-month average.

CDW CORPORATION AND SUBSIDIARIES CASH FLOW INFORMATION (dollars in millions) (unaudited)

	Three Months Ended March 31,
	2021			2020

Cash flows provided by operating activities	$	344.6		$	223.0

Capital expenditures⁽ⁱ⁾	(20.7		)	(25.4		)
Acquisition of business, net of cash acquired	(212.9		)	—
Cash flows used in investing activities	(233.6		)	(25.4		)

Net change in accounts payable – inventory financing	(180.3		)	(81.4		)
Financing payments for revenue generating assets	(42.9		)	—
Other cash flows used in financing activities	(420.3		)	(48.6		)
Cash flows used in financing activities	(643.5		)	(130.0		)

Effect of exchange rate changes on cash and cash equivalents	0.9			(7.2		)
Net (decrease) increase in cash and cash equivalents	(531.6		)	60.4
Cash and cash equivalents – beginning of period	1,410.2			154.0
Cash and cash equivalents – end of period	$	878.6		$	214.4

Supplementary disclosure of cash flow information:
Interest paid	$	(19.2	)	$	(28.6	)
Income taxes paid, net	$	(10.1	)	$	(9.9	)

(i)	Includes expenditures for revenue generating assets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005137/en/

Investor Inquiries

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Vice President, Investor Relations and

Financial Planning and Analysis

(847) 968-0238

[email protected]

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(847) 419-7411

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INDUSTRY KEYWORDS: Software Technology Hardware Data Management

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May 5, 2021 7:04 am

Qatar Airways Privilege Club expands partnership with Points to introduce Hotel & Car Rewards

Qatar Airways Privilege Club members can now earn or spend their Qmiles when using the new booking portal

TORONTO, May 05, 2021 (GLOBE NEWSWIRE) — Global leader in powering loyalty commerce, Points (TSX: PTS) (Nasdaq: PCOM) and Qatar Airways announced a new enhancement to the Qatar Privilege Club today. The latest member benefit to be implemented by the Toronto-based company that provides best-in-class solutions to the world’s largest loyalty programs, will offer Qatar Airways Privilege Club members even more value and flexibility as they make future travel plans.

The implementation of Hotel & Car Rewards, a first for the Qatar Airways Privilege Club, offers even more flexibility. Fully customizable, the holistic travel solution powered by Points, provides members with access to up to 350,000 hotels and over 20,000 car rental locations worldwide. With Hotel & Car Rewards, members earn Qmiles at a competitive rate on every cash travel booking they make. They also have the option to spend their Qmiles at no additional cost or make split payments with cash and Qmiles for their hotel or car rental bookings.

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker said: “At Qatar Airways, we are continually striving to enhance Privilege Club and offer our members more value and opportunities to earn and spend Qmiles. We also want to make the experience of earning and spending Qmiles as seamless as when our loyalty members travel with us across the globe. Hotel & Car Rewards provides our members’ convenient ways to spend for hotel stays and car rentals using Qmiles or use a combination of Qmiles with Cash. Hotel & Car Rewards is another example of Privilege Club’s commitment to redefining and enhancing the experience for our loyalty members.”

Rob MacLean, CEO of Points, also welcomed the news, “We are pleased to be expanding our partnership with Qatar Airways Privilege Club since implementing our first product integration just under a year ago and to be providing them with more ways than ever to connect with their members. Our research has shown us that enthusiasm for travel planning has not diminished over the past year. The recently improved Buy, Gift and Transfer offering and now Hotel & Car Rewards, will offer members additional value and convenience as they make their future travel plans for this year and beyond with Qatar Airways.”

Points began a multi-year partnership with Qatar Airways last August with the introduction of the option for members to Buy, Gift or Transfer their Qmiles; further product implementations are planned for the future.

For more information on how Points can help loyalty programs unlock their full potential, visit Points.com.

About Points International

Points
, (TSX: PTS) (NASDAQ: PCOM) is a trusted partner to the world’s leading loyalty programs, leveraging its unique Loyalty Commerce Platform to build, power, and grow a network of ways members can get and use their favourite loyalty currency. Our platform combines insights, technology, and resources to make the movement of loyalty currency simpler and more intelligent for nearly 60 reward programs worldwide. Founded in 2000, Points is headquartered in Toronto with teams operating around the globe.

For more information, visit Points.com.

POINTS CONTACT

Points Media Relations

Rachel Goldrick

[email protected]

+1 416 454 7120

May 5, 2021 7:03 am

Kamada to Announce First Quarter Ended March 31, 2021 Financial Results and Host Conference Call on May 12, 2021

REHOVOT, Israel, May 05, 2021 (GLOBE NEWSWIRE) — Kamada Ltd. (NASDAQ & TASE: KMDA), a plasma-derived biopharmaceutical company, today announced that it will release financial results for the first quarter ended March 31, 2021, prior to the open of the U.S. financial markets on Wednesday, May 12, 2021.

Kamada management will host an investment community conference call on Wednesday, May 12, at 8:30am Eastern Time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 877-407-0792 (from within the U.S.), or 201-689-8263 (International) and entering the conference identification number: 13719388. The call will also be webcast live on the Internet on the Company’s website at www.kamada.com.

The call will also be archived for 90 days on the Company’s website at www.kamada.com.

About Kamada

Kamada Ltd. (the “Company”) is a global specialty plasma-derived biopharmaceutical company with a diverse portfolio of marketed products, a robust development pipeline and industry-leading manufacturing capabilities. The Company’s strategy is focused on driving profitable growth from its current commercial products, its plasma-derived development pipeline and its manufacturing expertise, while evolving into a vertically integrated plasma-derived company. The Company’s two leading commercial products are GLASSIA® and KEDRRAB®. GLASSIA was the first liquid, ready-to-use, intravenous plasma-derived AAT product approved by the FDA. The Company markets GLASSIA in the U.S. through a strategic partnership with Takeda Pharmaceuticals Company Limited (“Takeda”) and in other countries through local distributors. Pursuant to an agreement with Takeda, the Company will continue to produce GLASSIA for Takeda through 2021 and Takeda will initiate its own production of GLASSIA for the U.S. market in 2021, at which point Takeda will commence payment of royalties to the Company until 2040. KEDRAB is an FDA approved anti-rabies immune globulin (Human) for post-exposure prophylaxis treatment. KEDRAB is being marketed in the U.S. through a strategic partnership with Kedrion S.p.A. The Company has additional four plasma-derived products administered by injection or infusion, that are marketed through distributors in more than 15 countries, including Israel, Russia, Brazil, Argentina, India and other countries in Latin America and Asia. The Company has two leading development programs; a plasma-derived hyperimmune immunoglobulin (IgG) product as a potential treatment for coronavirus disease (COVID-19) and an inhaled AAT for the treatment of AAT deficiency for which the Company is currently conducting the InnovAATe clinical trial, a randomized, double-blind, placebo-controlled, pivotal Phase 3 trial. The Company leverages its expertise and presence in the Israeli pharmaceutical market to distribute in Israel more than 20 products that are manufactured by third parties and have recently added nine biosimilar products to its Israeli distribution portfolio, which, subject to EMA and the Israeli MOH approvals, are expected to be launched in Israel between the years 2022 and 2025. FIMI Opportunity Fund, the leading private equity investor in Israel, is the Company’s lead shareholder, beneficially owning approximately 21% of the outstanding ordinary shares.

CONTACTS:

Chaime Orlev
Chief Financial Officer
[email protected]

Bob Yedid
LifeSci Advisors, LLC
646-597-6989
[email protected]

May 5, 2021 7:03 am

Dun & Bradstreet Reports First Quarter 2021 Financial Results

Dun & Bradstreet Reports First Quarter 2021 Financial Results

SHORT HILLS, N.J.–(BUSINESS WIRE)–
Dun & Bradstreet Holdings, Inc. (NYSE: DNB), a leading global provider of business decisioning data and analytics, today announced unaudited financial results for the first quarter ended March 31, 2021. A reconciliation of U.S. generally accepted accounting principles (“GAAP”) to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Use of Non-GAAP Financial Measures.”

GAAP Revenue for the first quarter of 2021 was $504.5 million, an increase of 27.5% as reported and 26.6% on a constant currency basis compared to the first quarter of 2020; which includes the net impact of lower deferred revenue purchase accounting adjustments of $17.2 million.

Adjusted Revenue for the first quarter of 2021 was $509.1 million, an increase of 28.6%, or 27.7% on a constant currency basis. Excluding the net impact of the Bisnode acquisition, organic revenue, before the effect of foreign exchange, was $420.4 million, an increase of 5.7% compared to first quarter of 2020, which also included a 4.4 percentage point impact from the net impact of lower deferred revenue purchase accounting adjustments of $17.2 million.

Net loss for the first quarter of 2021 was $25.0 million, or diluted loss per share of $0.06, compared to a net income of $41.9 for the prior year quarter, and adjusted net income of $97.8 million, or adjusted diluted earnings per share of $0.23.

Adjusted EBITDA for the first quarter of 2021 was $185.6 million, up 37.4% compared to the first quarter of 2020, and adjusted EBITDA margin of 36.5%, an increase of 240 basis points; which includes the net impact of lower deferred revenue purchase accounting adjustments of $17.2 million. Excluding the net impact of the Bisnode acquisition, consolidated adjusted EBITDA margin was 39.1% for the three months ended March 31, 2021, an improvement of 500 basis points compared to the prior year quarter, partially due to the lower net purchase accounting deferred revenue adjustments of $17.2 million which had an impact of 280 basis points on the year over year margin improvement.

“We are off to a strong start as we continue with our transformation and the execution of our near-term and long-term objectives. We finished the first quarter with solid financial results and made significant progress with the integration of Bisnode,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer.

Segment Results

North America

For the first quarter of 2021, North America revenue was $339.4 million, a decrease of $2.1 million or 0.6% as reported and 0.7% on a constant currency basis compared to the first quarter of 2020. North America revenue was negatively impacted by the acquisition of Bisnode with post acquisition sales treated as intercompany revenue. Excluding the positive impact of foreign exchange of $0.4 million and the negative impact of the Bisnode acquisition of $1.3 million, North America organic revenue decreased less than 1%.

Finance and Risk revenue for the first quarter of 2021 was $190.5 million, a decrease of $2.3 million or 1.2% as reported and 1.4% on a constant currency basis compared to the first quarter of 2020. Revenues decreased primarily due to lower revenue attributable to the impact of COVID-19, partially offset by new business from our Government solutions and Risk and Compliance solutions.

Sales and Marketing revenue for the first quarter of 2021 was $148.9 million, an increase of $0.2 million or less than 1% both as reported and on a constant currency basis compared to the first quarter of 2020. The increase was primarily due to increases in Sales and Marketing solution data sales, partially offset by lower royalty revenues from the Data.com legacy partnership.

North America adjusted EBITDA for the first quarter of 2021 was $151.0 million, an increase of 4.5%, with adjusted EBITDA margin of 44.5%, an increase of 220 basis points both compared to the first quarter of 2020.

International

International revenue for the first quarter of 2021 was $169.9 million, an increase of $98.3 million or 137.3% as reported and 130.9% on a constant currency basis compared to the first quarter of 2020. Excluding the net impact of the Bisnode acquisition, organic revenue before the effect of foreign exchange increased 9%.

Finance and Risk revenue for the first quarter of 2021 was $107.4 million, an increase of $48.8 million or 83.2% as reported, and 78.0% on a constant currency basis compared to the first quarter of 2020. Organic revenue before the effect of foreign exchange increased 7%, driven by growth across all markets, including higher revenue due to increased cross border data sales and growth from our Greater China market related to risk and compliance solutions and newly introduced API offerings.

Sales and Marketing revenue for the first quarter of 2021 was $62.5 million, an increase of $49.5 million or 381.9% as reported and 369.2% on a constant currency basis compared to the first quarter of 2020. Organic revenue before the effect of foreign exchange increased 18%, attributable to higher revenue from new solution sales in our U.K. market and increased revenue from WWN product royalties.

International adjusted EBITDA increased $27.5 million, or 114.4%, for the three months ended March 31, 2021, compared to the three months ended March 31, 2020. Adjusted EBITDA margin decreased 320 basis points for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Excluding the net impact of the Bisnode acquisition, adjusted EBITDA margin was 37.8% for the three months ended March 31, 2021, an increase of 430 basis points versus prior year’s margin.

Balance Sheet

As of March 31, 2021, we had cash and cash equivalents of $173.4 million and total principal amount of debt of $3,674.0 million. We had the full capacity available on our $850 million revolving credit facility as of March 31, 2021.

On January 27, 2021 we refinanced our term loan and reduced the spread by 50 basis points, from 375 basis points to 325 basis points which will save us approximately $14 million of annual interest.

Business Outlook

Dun & Bradstreet is reiterating its previously provided full year 2021 outlook as follows:

Adjusted Revenues are expected to be in the range of $2,145 million to $2,175 million.

Adjusted EBITDA is expected to be in the range of $840 million to $855 million.

Adjusted EPS is expected to be in the range of $1.02 to $1.06.

The foregoing forward-looking statements reflect Dun & Bradstreet’s expectations as of today’s date and Revenue assumes constant foreign currency rates. Dun & Bradstreet does not present a qualitative reconciliation of its forward-looking non-GAAP financial measures to the most directly comparable GAAP measure due to the inherent difficulty, without unreasonable efforts, in forecasting and quantifying with reasonable accuracy significant items required for this reconciliation. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Dun & Bradstreet does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.

Earnings Conference Call and Audio Webcast

Dun & Bradstreet will host a conference call to discuss the first quarter 2021 financial results on May 5, 2021 at 8:00 a.m. ET. The conference call can be accessed live over the phone by dialing 833-350-1376, or for international callers 647-689-6655 and enter conference ID: 4595457. The conference call replay will be available from 11:00 a.m. ET on May 5, 2021, through May 12, 2021, by dialing 800-585-8367, or for international callers 416-621-4642. The replay passcode will be 4595457.

The call will also be webcast live from Dun & Bradstreet’s investor relations website at https://investor.dnb.com. Following the completion of the call, a recorded replay of the webcast will be available on the website.

About Dun & Bradstreet

Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet’s Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk, and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity. For more information on Dun & Bradstreet, please visit www.dnb.com.

Use of Non-GAAP Financial Measures

In addition to reporting GAAP results, we evaluate performance and report our results on the non-GAAP financial measures discussed below. We believe that the presentation of these non-GAAP measures provides useful information to investors and rating agencies regarding our results, operating trends and performance between periods. These non-GAAP financial measures include adjusted revenue, organic revenue, adjusted earnings before interest, taxes, depreciation and amortization (‘‘adjusted EBITDA’’), adjusted EBITDA margin, adjusted net income and adjusted net earnings per diluted share. Adjusted results are non-GAAP measures that adjust for the impact due to purchase accounting application and divestitures, restructuring charges, equity-based compensation, acquisition and divestiture-related costs (such as costs for bankers, legal fees, due diligence, retention payments and contingent consideration adjustments) and other non-core gains and charges that are not in the normal course of our business (such as gains and losses on sales of businesses, impairment charges, effect of significant changes in tax laws and material tax and legal settlements). We exclude amortization of recognized intangible assets resulting from the application of purchase accounting because it is non-cash and not indicative of our ongoing and underlying operating performance. Recognized intangible assets arise from acquisitions, or primarily the Take-Private Transaction (refer to Note 5 to the condensed consolidated financial statements for the three months ended March 31, 2021 included in the Quarterly Report on Form 10-Q for the first quarter of 2021) and the recent Bisnode acquisition. We believe that recognized intangible assets by their nature are fundamentally different from other depreciating assets that are replaced on a predictable operating cycle. Unlike other depreciating assets, such as developed and purchased software licenses or property and equipment, there is no replacement cost once these recognized intangible assets expire and the assets are not replaced. Additionally, our costs to operate, maintain and extend the life of acquired intangible assets and purchased intellectual property are reflected in our operating costs as personnel, data fee, facilities, overhead and similar items. Management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of recognized intangible assets will recur in future periods until such assets have been fully amortized. In addition, we isolate the effects of changes in foreign exchange rates on our revenue growth because we believe it is useful for investors to be able to compare revenue from one period to another, both after and before the effects of foreign exchange rate changes. The change in revenue performance attributable to foreign currency rates is determined by converting both our prior and current periods’ foreign currency revenue by a constant rate. As a result, we monitor our adjusted revenue growth both after and before the effects of foreign exchange rate changes. We believe that these supplemental non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance and comparability of our operating results from period to period. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the factors management uses in planning for and forecasting future periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to our reported results prepared in accordance with GAAP.

Our non-GAAP or adjusted financial measures reflect adjustments based on the following items, as well as the related income tax.

Adjusted Revenue

We define adjusted revenue as revenue adjusted to include a revenue adjustment due to the timing of the completion of the Bisnode acquisition. Management uses this measure to evaluate ongoing performance of the business period over period. In addition, we isolate the effects of changes in foreign exchange rates on our revenue growth because we believe it is useful for investors to be able to compare revenue from one period to another, both after and before the effects of foreign exchange rate changes. The change in revenue performance attributable to foreign currency rates is determined by converting both our prior and current periods’ foreign currency revenue by a constant rate.

Organic Revenue

We define organic revenue as adjusted revenue before the effect of foreign exchange excluding revenue from the acquired company for the first twelve months. We believe the organic measure provides investors and analysts with useful supplemental information regarding the Company’s underlying revenue trends by excluding the impact of acquisitions.

Adjusted EBITDA and Adjusted EBITDA Margin

We define adjusted EBITDA as net income (loss) attributable to Dun & Bradstreet Holdings, Inc. excluding the following items:

depreciation and amortization;

interest expense and income;

income tax benefit or provision;

other expenses or income;

equity in net income of affiliates;

net income attributable to non-controlling interests;

dividends allocated to preferred stockholders;

other incremental or reduced expenses and revenue from the application of purchase accounting (e.g. commission asset amortization) and acquisitions;

equity-based compensation;

restructuring charges;

merger and acquisition-related operating costs;

transition costs primarily consisting of non-recurring incentive expenses associated with our synergy program;

legal reserve and costs associated with significant legal and regulatory matters; and

asset impairment.

We calculate adjusted EBITDA margin by dividing adjusted EBITDA by adjusted revenue.

Adjusted Net Income

We define adjusted net income as net income (loss) attributable to Dun & Bradstreet Holdings, Inc. adjusted for the following items:

incremental amortization resulting from the application of purchase accounting. We exclude amortization of recognized intangible assets resulting from the application of purchase accounting because it is non-cash and is not indicative of our ongoing and underlying operating performance. The Company believes that recognized intangible assets by their nature are fundamentally different from other depreciating assets that are replaced on a predictable operating cycle. Unlike other depreciating assets, such as developed and purchased software licenses or property and equipment, there is no replacement cost once these recognized intangible assets expire and the assets are not replaced. Additionally, the Company’s costs to operate, maintain and extend the life of acquired intangible assets and purchased intellectual property are reflected in the Company’s operating costs as personnel, data fee, facilities, overhead and similar items;

other incremental or reduced expenses and revenue from the application of purchase accounting (e.g. commission asset amortization) and acquisitions;

equity-based compensation;

restructuring charges;

merger and acquisition-related operating costs;

transition costs primarily consisting of non-recurring incentive expenses associated with our synergy program;

legal reserve and costs associated with significant legal and regulatory matters;

change in fair value of the make-whole derivative liability associated with the Series A Preferred Stock;

asset impairment;

dividends allocated to preferred stockholders;

merger, acquisition and divestiture-related non-operating costs;

debt refinancing and extinguishment costs; and

tax effect of the non-GAAP adjustments and the impact resulting from the enactment of the CARES Act.

Adjusted Net Earnings per Diluted Share

We calculate adjusted net earnings per diluted share by dividing adjusted net income (loss) by the weighted average number of common shares outstanding for the period plus the dilutive effect of common shares potentially issuable in connection with awards outstanding under our stock incentive plan.

Forward-Looking Statements

The statements contained in this release that are not purely historical are forward-looking statements, including statements regarding expectations, hopes, intentions or strategies regarding the future. Forward-looking statements are based on Dun & Bradstreet’s management’s beliefs, as well as assumptions made by, and information currently available to, them. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. It is not possible to predict or identify all risk factors. Consequently, the risks and uncertainties listed below should not be considered a complete discussion of all of our potential trends, risks and uncertainties. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

The risks and uncertainties that forward-looking statements are subject to include, but are not limited to: (i) an outbreak of disease, global or localized health pandemic or epidemic, or the fear of such an event (such as the COVID-19 global pandemic), including the global economic uncertainty and measures taken in response; (ii) the short- and long-term effects of the COVID-19 global pandemic, including the pace of recovery or any future resurgence; (iii) our ability to implement and execute our strategic plans to transform the business; (iv) our ability to develop or sell solutions in a timely manner or maintain client relationships; (v) competition for our solutions; (vi) harm to our brand and reputation; (vii) unfavorable global economic conditions; (viii) risks associated with operating and expanding internationally; (ix) failure to prevent cybersecurity incidents or the perception that confidential information is not secure; (x) failure in the integrity of our data or systems; (xi) system failures and personnel disruptions, which could delay the delivery of our solutions to our clients; (xii) loss of access to data sources; (xiii) failure of our software vendors and network and cloud providers to perform as expected or if our relationship is terminated; (xiv) loss or diminution of one or more of our key clients, business partners or government contracts; (xv) dependence on strategic alliances, joint ventures and acquisitions to grow our business; (xvi) our ability to protect our intellectual property adequately or cost-effectively; (xvii) claims for intellectual property infringement; (xviii) interruptions, delays or outages to subscription or payment processing platforms; (xix) risks related to acquiring and integrating businesses and divestitures of existing businesses; (xx) our ability to retain members of the senior leadership team and attract and retain skilled employees; (xxi) compliance with governmental laws and regulations; (xxii) risks associated with our structure and status as a “controlled company;” and (xxiii) the other factors described under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note Regarding Forward-Looking Statements” and other sections of our Annual Report on Form 10-K and filed with the Securities and Exchange Commission on February 25, 2021.

Dun & Bradstreet Holdings, Inc.
Condensed Consolidated Statements of Operations
(Amounts in millions, except per share data)
(Unaudited)

	Three months ended March 31,
	2021		2020 (1)
Revenue	$	504.5	$	395.7
Operating expenses	160.9		138.6
Selling and administrative expenses	179.8		125.1
Depreciation and amortization	149.7		134.4
Restructuring charges	5.8		4.8
Operating costs	496.2		402.9
Operating income (loss)	8.3		(7.2)
Interest income	0.1		0.3
Interest expense	(48.9)		(83.0)
Other income (expense) – net	6.8		89.3
Non-operating income (expense) – net	(42.0)		6.6
Income (loss) before provision (benefit) for income taxes and equity in net income of affiliates	(33.7)		(0.6)
Less: provision (benefit) for income taxes	(9.8)		(74.2)
Equity in net income of affiliates	0.6		0.7
Net income (loss)	(23.3)		74.3
Less: net (income) loss attributable to the non-controlling interest	(1.7)		(0.4)
Less: Dividends allocated to preferred stockholders	—		(32.0)
Net income (loss) attributable to Dun & Bradstreet Holdings, Inc.	$	(25.0)	$	41.9

Basic earnings (loss) per share of common stock attributable to Dun & Bradstreet Holdings, Inc.	$	(0.06)	$	0.13
Diluted earnings (loss) per share of common stock attributable to Dun & Bradstreet Holdings, Inc.	$	(0.06)	$	0.13
Weighted average number of shares outstanding-basic	428.5		314.5
Weighted average number of shares outstanding-diluted	428.5		314.5

(1)

Revised to reflect the elimination of the international lag reporting. See further details in Note 1 to the condensed consolidated financial statements for the three months ended March 31, 2021, included in the Quarterly Report on Form 10-Q for the first quarter of 2021.

Dun & Bradstreet Holdings, Inc. Condensed Consolidated Balance Sheets (Amounts in millions, except share data and per share data) (Unaudited)

	March 31, 2021		December 31, 2020 (1)
Assets
Current assets
Cash and cash equivalents	$	173.4	$	352.3
Accounts receivable, net of allowance of $14.6 at March 31, 2021 and $11.4 at December 31, 2020	366.8		319.3
Other receivables	8.9		7.5
Prepaid taxes	69.6		130.4
Other prepaids	48.4		37.9
Other current assets	6.1		27.0
Total current assets	673.2		874.4
Non-current assets
Property, plant and equipment, net of accumulated depreciation of $22.2 at March 31, 2021 and $14.3 at December 31, 2020	27.9		25.7
Computer software, net of accumulated amortization of $148.2 at March 31, 2021 and $125.6 at December 31, 2020	508.1		437.0
Goodwill	3,318.2		2,857.9
Deferred income tax	14.9		14.1
Other intangibles	5,157.7		4,814.8
Deferred costs	87.2		83.8
Other non-current assets	137.7		112.6
Total non-current assets	9,251.7		8,345.9
Total assets	$	9,924.9	$	9,220.3
Liabilities
Current liabilities
Accounts payable	$	76.0	$	60.1
Accrued payroll	78.3		110.5
Accrued income tax	22.6		3.9
Short-term debt	28.1		25.3
Other accrued and current liabilities	156.9		151.1
Deferred revenue	634.4		477.2
Total current liabilities	996.3		828.1
Long-term pension and postretirement benefits	334.1		291.5
Long-term debt	3,548.0		3,255.8
Liabilities for unrecognized tax benefits	18.9		18.9
Deferred income tax	1,202.4		1,106.6
Other non-current liabilities	147.0		135.5
Total liabilities	6,246.7		5,636.4
Commitments and contingencies

Equity
Common Stock, $0.0001 par value per share, authorized—2,000,000,000 shares; 431,915,923 shares issued and 431,444,207 shares outstanding at March 31, 2021 and 423,418,131 shares issued and 422,952,228 shares outstanding at December 31, 2020	—		—
Capital surplus	4,475.2		4,310.1
Accumulated deficit	(718.9)		(693.9)
Treasury Stock, 471,716 shares at March 31, 2021 and 465,903 shares at December 31, 2020	(0.3)		—
Accumulated other comprehensive loss	(138.4)		(90.6)
Total stockholder equity	3,617.6		3,525.6
Non-controlling interest	60.6		58.3
Total equity	3,678.2		3,583.9
Total liabilities and stockholder equity	$	9,924.9	$	9,220.3

(1)

Dun & Bradstreet Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Tabular amounts in millions) (Unaudited)

	Three months ended March 31,
	2021		2020 (1)
Cash flows provided by (used in) operating activities:
Net income (loss)	$	(23.3)	$	74.3
Reconciliation of net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	149.7		134.4
Amortization of unrecognized pension loss (gain)	0.5		(0.1)
Equity-based compensation expense	7.9		3.8
Restructuring charge	5.8		4.8
Restructuring payments	(3.3)		(6.0)
Change in fair value of make-whole derivative liability	—		(69.8)
Changes in deferred income taxes	(26.1)		(12.0)
Changes in prepaid and accrued income taxes	11.0		(71.0)
Changes in operating assets and liabilities: (2)
(Increase) decrease in accounts receivable	9.9		17.4
(Increase) decrease in other current assets	60.2		(4.4)
Increase (decrease) in deferred revenue	78.7		85.3
Increase (decrease) in accounts payable	(2.1)		(2.1)
Increase (decrease) in accrued liabilities	(61.5)		(99.0)
Increase (decrease) in other accrued and current liabilities	(20.9)		(28.6)
(Increase) decrease in other long-term assets	(2.6)		(8.2)
Increase (decrease) in long-term liabilities	(23.9)		(15.7)
Net, other non-cash adjustments (3)	8.2		2.0
Net cash provided by (used in) operating activities	168.2		5.1
Cash flows provided by (used in) investing activities:
Acquisitions of businesses, net of cash acquired (4)	(617.0)		(15.8)
Cash settlements of foreign currency contracts	23.3		1.6
Capital expenditures	(1.2)		(1.4)
Additions to computer software and other intangibles	(42.4)		(18.4)
Other investing activities, net	(0.6)		—
Net cash provided by (used in) investing activities	(637.9)		(34.0)
Cash flows provided by (used in) financing activities:
Payments of dividends	—		(32.0)
Proceeds from borrowings on Credit Facility	50.0		337.1
Proceeds from borrowings on Term Loan Facilities	300.0		—
Payments of borrowings on Credit Facility	(50.0)		(137.1)
Payments of borrowing on Term Loan Facility	(7.0)		—
(Payments) proceeds of borrowings on Bridge Loan	—		(63.0)
Payment of debt issuance costs	(2.6)		(0.8)
Other financing activities, net	(0.3)		(0.3)
Net cash provided by (used in) financing activities	290.1		103.9
Effect of exchange rate changes on cash and cash equivalents	0.7		(1.3)
Increase (decrease) in cash and cash equivalents	(178.9)		73.7
Cash and Cash Equivalents, Beginning of Period	352.3		84.4
Cash and Cash Equivalents, End of Period	$	173.4	$	158.1
Supplemental Disclosure of Cash Flow Information:
Cash Paid for:
Income Taxes, Net of Refunds	$	(57.4)	$	8.8
Interest	$	63.0	$	103.1

(1)		Revised to reflect the elimination of the international lag reporting. See further details in Note 1 to the condensed consolidated financial statements for the three months ended March 31, 2021, included in the Quarterly Report on Form 10-Q for the first quarter of 2021.
(2)		Net of the effect of acquisitions.
(3)		Includes non-cash amortization of deferred debt issuance cost and discount of $4.7 million and $11.9 million for the three months ended March 31, 2021 and 2020, respectively.
(4)		In connection with the Bisnode acquisition, we also issued 6,237,087 shares of common stock of the Company in a private placement valued at $158.9 million based on the stock closing price on January 8, 2021.

Dun & Bradstreet Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (Amounts in millions) Reconciliation of Revenue to Adjusted Revenue and Organic Revenue

	Three months ended March 31,
	2021		2020
Revenue	$	504.5	$	395.7
Revenue adjustment due to the Bisnode acquisition close timing	4.6		—
Adjusted revenue (a)	509.1		395.7
Foreign currency impact	(1.0)		2.1
Adjusted revenue before the effect of foreign currency (a)	$	508.1	$	397.8
Net revenue from Bisnode acquisition – before the effect of foreign currency	(87.7)		—
Organic revenue – before the effect of foreign currency (a)	$	420.4	$	397.8

North America	$	339.4	$	341.5
International	169.9		71.6
Segment revenue	$	509.3	$	413.1
Corporate and other (a)	(0.2)		(17.4)
Foreign currency impact	(1.0)		2.1
Adjusted revenue before the effect of foreign currency (a)	$	508.1	$	397.8
Net revenue from Bisnode acquisition – before the effect of foreign currency	(87.7)		—
Organic revenue – before the effect of foreign currency (a)	$	420.4	$	397.8

(a) Includes deferred revenue purchase accounting adjustments	$	(0.2)	$	(17.4)

Reconciliation of Net Income (Loss) to Adjusted EBITDA

	Three months ended March 31,
	2021			2020
Net income (loss) attributable to Dun & Bradstreet Holdings, Inc.	$	(25.0)		$	41.9
Depreciation and amortization	149.7			134.4
Interest expense – net	48.8			82.7
(Benefit) provision for income tax – net	(9.8)			(74.2)
EBITDA	163.7			184.8
Other income (expense) – net	(6.8)			(89.3)
Equity in net income of affiliates	(0.6)			(0.7)
Net income (loss) attributable to non-controlling interest	1.7			0.4
Dividends allocated to preferred stockholders	—			32.0
Other incremental or reduced expenses and revenue from the application of purchase accounting and acquisitions	(0.7)			(4.9)
Equity-based compensation	7.9			3.8
Restructuring charges	5.8			4.8
Merger and acquisition-related operating costs	3.1			2.5
Transition costs	0.6			1.6
Legal reserve associated with significant legal and regulatory matters	9.9			—
Asset impairment	1.0			0.1
Adjusted EBITDA	$	185.6		$	135.1

North America	$	151.0		$	144.5
International	51.5			24.0
Corporate and other (a)	(16.9)			(33.4)
Adjusted EBITDA (a)	$	185.6		$	135.1
Adjusted EBITDA Margin (a)	36.5		%	34.1		%
(a) Including impact of deferred revenue purchase accounting adjustments:
Impact to adjusted EBITDA	$	(0.2)		$	(17.4)
Impact to adjusted EBITDA margin	—		%	(2.8)		%

Dun & Bradstreet Holdings, Inc. Segment Revenue and Adjusted EBITDA (Unaudited) (Amounts in millions)

	Three months ended March 31, 2021
	North America			International			Corporate and Other (a)		Total
Adjusted revenue	$	339.4		$	169.9		$	(0.2)	$	509.1
Total operating costs	201.0			121.2			18.9		341.1
Operating income (loss)	138.4			48.7			(19.1)		168.0
Depreciation and amortization	12.6			2.8			2.2		17.6
Adjusted EBITDA	$	151.0		$	51.5		$	(16.9)	$	185.6

Adjusted EBITDA margin	44.5		%	30.3		%	N/A		36.5		%

	Three months ended March 31, 2020
	North America			International			Corporate and Other (a)		Total
Adjusted revenue	$	341.5		$	71.6		$	(17.4)	$	395.7
Total operating costs	201.7			48.7			24.5		274.9
Operating income (loss)	139.8			22.9			(41.9)		120.8
Depreciation and amortization	4.7			1.1			8.5		14.3
Adjusted EBITDA	$	144.5		$	24.0		$	(33.4)	$	135.1

Adjusted EBITDA margin	42.3		%	33.5		%	N/A		34.1		%

(a) Includes deferred revenue purchase accounting adjustments.

Dun & Bradstreet Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (Amounts in millions) Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

	Three months ended March 31,
	2021		2020
Net income (loss) attributable to Dun & Bradstreet Holdings, Inc.	$	(25.0)	$	41.9
Dividends allocated to preferred stockholders	—		32.0
Incremental amortization of intangible assets resulting from the application of purchase accounting	132.1		120.1
Other incremental or reduced expenses and revenue from the application of purchase accounting and acquisitions	(0.7)		(4.9)
Equity-based compensation	7.9		3.8
Restructuring charges	5.8		4.8
Merger and acquisition-related operating costs	3.1		2.5
Transition costs	0.6		1.6
Legal expense and costs associated with significant legal and regulatory matters	9.9		—
Change in fair value of make-whole derivative liability	—		(69.8)
Asset impairment	1.0		0.1
Merger and acquisition-related non-operating costs	2.3		—
Debt refinancing and extinguishment costs	1.1		7.0
Tax impact of the CARES Act	(0.4)		(55.6)
Tax effect of the non-GAAP adjustments	(39.9)		(34.0)
Adjusted net income (loss) attributable to Dun & Bradstreet Holdings, Inc. (a)	$	97.8	$	49.5
Adjusted diluted earnings (loss) per share of common stock	$	0.23	$	0.16
Weighted average number of shares outstanding – diluted	429.0		314.5

(a) Including impact of deferred revenue purchase accounting adjustments:
Pre-tax impact	$	(0.2)	$	(17.4)
Tax impact	—		4.5
Net impact to adjusted net income (loss) attributable to Dun & Bradstreet Holdings, Inc.	$	(0.2)	$	(12.9)
Net impact to adjusted diluted earnings (loss) per share of common stock	$	—	$	(0.04)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005369/en/

Media:

Lisette Kwong

973-921-6263

[email protected]

Investors:

Debra McCann

973-921-6008

[email protected]

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Professional Services Marketing Data Management Communications Technology Software Consulting

MEDIA:

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May 5, 2021 7:03 am

New Data Demonstrate that 99% of Surveyed Patients Diagnosed With Uveal Melanoma Gain Value From DecisionDx-UM Test

New Data Demonstrate that 99% of Surveyed Patients Diagnosed With Uveal Melanoma Gain Value From DecisionDx-UM Test

Study Also Shows that Patients’ Decision Regret Levels Do Not Vary According To Low- Or High-Risk DecisionDx-UM Test Result

FRIENDSWOOD, Texas–(BUSINESS WIRE)–
Castle Biosciences, Inc. (Nasdaq: CSTL), a skin cancer diagnostics company providing personalized genomic information to improve cancer treatment decisions, presented data on its 15-gene expression profile (15-GEP) test, DecisionDx^®-UM, at the Association for Research in Vision and Ophthalmology (ARVO) 2021: Revolutionary Eye and Vision Research Meeting.

The virtual poster is entitled “Uveal Melanoma Patient Attitudes Towards Prognostic Testing Using Gene Expression Profiling.”

DecisionDx-UM, the test highlighted in the poster, is Castle’s prognostic 15-GEP test for patients with uveal melanoma, a rare cancer of the eye that carries a high risk of spreading (metastasizing). The DecisionDx-UM test is designed to accurately identify patients who are at low risk (Class 1) or high risk (Class 2) of metastasis based on the unique biology of their primary tumor and is the current standard of care in the management of uveal melanoma at the majority of U.S. ocular oncology practices.

“Up to half of patients diagnosed with uveal melanoma will experience metastatic disease, and prior studies show that newly diagnosed patients have overwhelmingly been in favor of learning their prognoses,” said first author Basil K. Williams, M.D., assistant professor and director of Ocular Oncology at the University of Cincinnati College of Medicine. “This study demonstrated that uveal melanoma patients were satisfied with their decisions to pursue prognostic information through GEP testing, and they found particular value in DecisionDx-UM’s ability to help them understand their individual metastatic risk.”

Study methods and findings:

The objective of the patient-based study was to understand uveal melanoma patients’ experiences following testing with DecisionDx-UM compared to patients with alternative or no prognostic testing.
An online questionnaire was distributed by the Melanoma Research Foundation’s CURE OM (Ocular Melanoma) initiative that captured de-identified information regarding patient-reported experiences. Patients were asked questions regarding the decision to undergo prognostic testing and the extent to which they felt regret about their decisions.
Of the 177 survey participants, 159 (90%) reported wanting prognostic information at diagnosis.
Of patients tested with DecisionDx-UM, the vast majority (80/81 respondents, 99%) reported gaining value from their test result, including:
- Increased knowledge and understanding
- More personalized treatment options
- Information relevant to life planning
- A sense of relief from uncertainty about the future
Of the patients who received prognostic testing with DecisionDx-UM, decision regret levels did not differ depending on whether they received a low or high-risk test result (Kruskal-Wallis; n=28, 23, 30 for 1A, 1B, 2; p=0.13).
Patients who received prognostic testing experienced lower levels of decision regret than those who opted out of testing, independent of which prognostic tests were used (Wilcoxon Rank-Sum tests: DecisionDx-UM vs. alternative tests: p=0.89, DecisionDx-UM vs. opt-out: p=0.0002, alternative tests vs. opt-out: p=0.003).

About DecisionDx-UM

DecisionDx-UM is a 15-gene expression profile (GEP) test that uses an individual patient’s tumor biology to predict individual risk of metastasis. DecisionDx-UM is the standard of care in the management of uveal melanoma in the majority of ocular oncology practices in the United States. Since 2009, the American Joint Committee on Cancer (AJCC; v7 and v8) Staging Manual for UM has specifically identified the GEP test as a prognostic factor that is recommended for collection as a part of clinical care. Further, the National Comprehensive Cancer Network (NCCN) guidelines for uveal melanoma include the DecisionDx-UM test result as a prognostic method for determining risk of metastasis and recommended differential surveillance regimens based on a Class 1A, 1B, and 2 result. DecisionDx-UM is the only prognostic test for uveal melanoma that has been validated in prospective, multi-center studies, and it has been shown to be a superior predictor of metastasis compared to other prognostic factors, such as chromosome 3 status, mutational status, AJCC stage and cell type.

It is estimated that nearly 8 in 10 patients diagnosed with uveal melanoma in the U.S. receive the DecisionDx-UM test as part of their diagnostic workup. More information about the test and disease can be found at www.CastleTestInfo.com.

About Castle Biosciences

Castle Biosciences (Nasdaq: CSTL) is a commercial-stage dermatologic cancer company focused on providing physicians and their patients with personalized, clinically actionable genomic information to make more accurate treatment decisions. The Company currently offers tests for patients with cutaneous melanoma (DecisionDx^®-Melanoma, DecisionDx^®-CMSeq), cutaneous squamous cell carcinoma (DecisionDx^®-SCC), suspicious pigmented lesions (DecisionDx^®DiffDx™-Melanoma) and uveal melanoma (DecisionDx^®-UM, DecisionDx^®-PRAME and DecisionDx^®-UMSeq). For more information about Castle’s gene expression profile tests, visit www.CastleTestInfo.com. Castle also has active research and development programs for tests in other dermatologic diseases with high clinical need. Castle Biosciences is based in Friendswood, Texas (Houston), and has laboratory operations in Phoenix, Arizona. For more information, visit www.CastleBiosciences.com.

DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, DecisionDx DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq are trademarks of Castle Biosciences, Inc.

Forward-Looking Statements

The information in this press release contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning the ability of DecisionDx-UM test results to optimize diagnostic treatment decisions and provide value to patients regarding their diagnoses. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the effects of the COVID-19 pandemic on our business and our efforts to address its impact on our business, subsequent study results and findings that contradict earlier study results and findings, our products’ ability to provide the aforementioned benefits to patients and the risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005289/en/

Investor and Media Contact:

Camilla Zuckero

832-835-5158

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Oncology Health Genetics Clinical Trials Pharmaceutical Biotechnology

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May 5, 2021 7:03 am

LENSAR Reports First Quarter 2021 Financial Results and Provides Business Update

LENSAR Reports First Quarter 2021 Financial Results and Provides Business Update

First Quarter 2021 Procedure Volumes Increase 21.1% over First Quarter 2020

Cash and Cash Equivalents of $35.9 Million as of March 31, 2021

ORLANDO, Fla.–(BUSINESS WIRE)–
LENSAR, Inc. (Nasdaq: LNSR) (“LENSAR” or “the Company”), a global medical technology company focused on advanced femtosecond laser surgical solutions for the treatment of cataracts, today announced financial results for the first quarter ended March 31, 2021 and provided an update on key strategic and operational initiatives.

“2021 is off to an encouraging start as we have continued to build on the positive trends seen in the second half of last year and achieved growth in both total revenues and procedures sold in the first quarter of 2021 compared to the first quarter of 2020,” said Nick Curtis, Chief Executive Officer of LENSAR. “While we still face challenges resulting from the COVID-19 pandemic, especially outside the U.S., we are seeing favorable signs toward a return of premium cataract procedures to pre-pandemic levels in the United States. In addition, we continue to make good progress on our next-generation system, ALLY™. Feedback from the ophthalmic community has been extremely enthusiastic. We look forward to showcasing ALLY at the ASCRS Annual Meeting, which is currently scheduled to take place in-person in July 2021.”

First Quarter 2021 Financial Results

Total revenue for the quarter ended March 31, 2021 was $7.0 million, an increase of 19.3%, or $1.1 million, compared to total revenue of $5.9 million for the quarter ended March 31, 2020. The increase was primarily driven by sales of LENSAR Laser Systems and increased procedure licenses, particularly in the United States, where sales volumes exceeded pre-COVID levels.

Selling, general and administrative expenses for the quarter ended March 31, 2021 were $6.0 million, an increase of $1.3 million, or 26.3%, compared to $4.8 million for the first quarter of 2020. The increase was primarily due to increased personnel expenses, which was largely due to stock-based compensation expense.

Research and development expenses were $2.7 million and $1.6 million for the quarters ended March 31, 2021 and 2020, respectively. The $1.2 million increase was primarily due to additional costs for the continued development of ALLY in anticipation of a 510(k) filing with the U.S. Food and Drug Administration in the first quarter of 2022, as well as increased personnel expenses.

Net loss for the quarter ended March 31, 2021 was $5.2 million, or ($0.56) per share, compared to net loss of $3.7 million, or ($3.44) per share, in the first quarter of 2020. Total stock-based compensation expense recorded for the quarters ended March 31, 2021 and 2020 was $2.3 million and $85,000, respectively.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the first quarter of 2021 was ($4.6) million, compared with ($2.3) million in the first quarter of 2020. The decrease in EBITDA between the quarters was related to the above-mentioned increase in stock-based compensation expense. Excluding the effect of this non-cash item, Adjusted EBITDA was ($2.2) million in both the first quarter of 2021 and first quarter of 2020. EBITDA and Adjusted EBITDA are non-GAAP financial measures, and a reconciliation of these measures to net loss is set forth below in this press release.

As of March 31, 2021, the Company had cash and cash equivalents of $35.9 million as compared to $40.6 million at December 31, 2020. Cash utilized in the first quarter of 2021 was $4.7 million. Based on its cash position and operational forecasts, the Company believes it has sufficient cash to fund operations through the filing of its 510(k) application and expected launch of ALLY in 2022.

Conference Call:

LENSAR management will host a conference call and live webcast to discuss the fourth quarter results and provide a business update today, May 5, 2021 at 8:30 a.m. ET.

To participate by telephone, please dial (844) 200-6205 (Domestic) or (646) 904-5544 (International). The conference ID number is 760694. The live webcast can be accessed under “Events & Presentations” in the Investor Relations section of the company’s website at https://ir.lensar.com. Please log in approximately 5-10 minutes prior to the call to register and to download and install any necessary software. The call and webcast replay will be available until May 19, 2021.

About LENSAR

LENSAR is a commercial-stage medical device company focused on designing, developing and marketing an advanced femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. Its LENSAR Laser System incorporates a range of proprietary technologies designed to assist the surgeon in obtaining better visual outcomes, efficiency and reproducibility by providing advanced imaging, simplified procedure planning, efficient design and precision.

Forward-looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s development and the future market potential of ALLY. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “should,” “could,” “target,” “potential,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.

Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements. Important factors that could impair the value of the Company’s assets and business include, without limitation, its history of operating losses and ability to generate revenue; its ability to maintain, grow market acceptance of and enhance its LENSAR Laser System; the impact of the COVID-19 pandemic and the Company’s ability to grow revenues to the pre-COVID-19 level; the Company’s ability to obtain the necessary clearances or approvals for ALLY; the willingness of patients to pay the price difference for LENSAR products; its ability to grow a U.S. sales and marketing organization; its ability to meet its future capital needs; the impact of any material disruption to the supply or manufacture of the LENSAR Laser System; the ability of the Company to compete against competitors that have longer operating histories and more established products than the Company; the Company’s ability to address numerous international business risks; and the other important factors that are disclosed under the heading “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in its other filings with the SEC, including, but not limited to, its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 to be filed with the SEC, each accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://ir.lensar.com. All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing LENSAR’s views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

The Company prepares and analyzes operating and financial data and non-GAAP measures to assess the performance of its business, make strategic and offering decisions and build its financial projections. The key non-GAAP measures it uses are EBITDA and Adjusted EBITDA.

EBITDA is defined as net loss before interest expense, income tax expense, interest income, depreciation and amortization expenses. EBITDA is a non-GAAP financial measure. EBITDA is specifically disclosed because the Company believes that EBITDA provides meaningful supplemental information for investors regarding the performance of its business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Adjusted EBITDA is also a non-GAAP financial measure. The Company believes Adjusted EBITDA, which excludes stock-based compensation expense, provides meaningful supplemental information for investors when evaluating its results and comparing it to peer companies as stock-based compensation expense is a significant non-cash charge due to the recapitalization of the Company. It uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in its underlying business from quarter to quarter. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance and, therefore, any non-GAAP measures it use may not be directly comparable to similarly titled measures of other companies.

A reconciliation of EBITDA and Adjusted EBITDA to their most comparable GAAP financial measure are set forth below.

	Three Months Ended March 31,
*(Dollars in thousands)*	2021		2020
Net loss	$	(5,182)	$	(3,686)
Add: Interest expense		—		604
Less: Interest income		(18)		(17)
Add: Depreciation expense		328		477
Add: Amortization expense		313		317
EBITDA		(4,559)		(2,305)
Add: Stock-based compensation expense		2,320		85
Adjusted EBITDA	$	(2,239)	$	(2,220)

LENSAR, Inc.
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

	Three Months Ended March 31,
	2021		2020
Revenue
Product	$	5,158	$	4,103
Lease		1,111		976
Service		774		827
Total revenue		7,043		5,906
Cost of revenue (exclusive of amortization)
Product		2,090		1,206
Lease		251		416
Service		808		716
Total cost of revenue		3,149		2,338
Operating expenses
Selling, general and administrative expenses		6,035		4,779
Research and development expenses		2,746		1,571
Amortization of intangible assets		313		317
Operating loss		(5,200)		(3,099)
Other income (expense)
Interest expense		—		(604)
Other income, net		18		17
Net loss attributable to common stockholders	$	(5,182)	$	(3,686)
Net loss per share attributable to common stockholders
Basic and diluted	$	(0.56)	$	(3.44)
Weighted-average number of shares used in calculation of net loss per share:
Basic and diluted		9,187		1,070

LENSAR, Inc.
BALANCE SHEETS
(In thousands, except per share amounts)

	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	35,866	$	40,599
Accounts receivable, net of allowance of $21 and $19, respectively		2,105		2,012
Notes receivable, net of allowance of $9 and $9, respectively		427		444
Inventories		13,021		13,473
Prepaid and other current assets		1,824		1,857
Total current assets		53,243		58,385
Property and equipment, net		744		832
Equipment under lease, net		3,773		3,583
Notes and other receivables, long-term, net of allowance of $7 and $9, respectively		364		452
Intangible assets, net		11,797		12,110
Other assets		3,622		3,758
Total assets	$	73,543	$	79,120
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,702	$	2,481
Accrued liabilities		2,761		4,570
Deferred revenue		967		923
Other current liabilities		498		493
Total current liabilities		5,928		8,467
Long-term operating lease liabilities		3,189		3,314
Other long-term liabilities		97		129
Total liabilities		9,214		11,910
Stockholders’ equity:
Preferred stock, par value $0.01 per share, 10,000 shares authorized at March 31, 2021 and December 31, 2020; no shares issued and outstanding at March 31, 2021 and December 31, 2020		—		—
Common stock, par value $0.01 per share, 150,000 shares authorized at March 31, 2021 and December 31, 2020; 10,933 shares issued and outstanding at March 31, 2021 and December 31, 2020		109		109
Additional paid-in capital		127,395		125,094
Accumulated deficit		(63,175)		(57,993)
Total stockholders’ equity		64,329		67,210
Total liabilities and stockholders’ equity	$	73,543	$	79,120

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005251/en/

Thomas R. Staab, II, CFO

[email protected]

Lee Roth / Cameron Radinovic

Burns McClellan for LENSAR

[email protected] / [email protected]

KEYWORDS: United States North America Florida

INDUSTRY KEYWORDS: Medical Devices Health Technology Surgery Hardware Optical

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May 5, 2021 7:03 am

BayFirst Financial Corp. Declares 3:2 Common Stock Split and Increases Quarterly Cash Dividend

BayFirst Financial Corp. Declares 3:2 Common Stock Split and Increases Quarterly Cash Dividend

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–
The board of directors of BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) (OTCQX: FHBI) (“BayFirst” or the “Company”), parent company of First Home Bank, announced today that it has declared a 3:2 common stock split effective May 10, 2021. Pursuant to the split, common shareholders of record as of May 10, 2021 will receive three common shares of the Company’s common stock for every two shares owned as of the record date.

The Company’s board of directors also declared a second quarter cash dividend of 7 cents per common share, payable on June 15, 2021 to shareholders of record as of May 15, 2021. The cash dividend represents a 5% increase in the cash dividend paid to common shareholders over the previous quarter and the 20 consecutive quarters in which BayFirst has paid a cash dividend.

About BayFirst

BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) is a registered bank holding company which commenced operations on September 1, 2000. Its primary source of income is from its wholly owned subsidiary, First Home Bank, which commenced business operations on February 12, 1999. First Home Bank is a Federal Reserve member and a state-chartered banking institution. The Bank operates six full-service office locations, 29 mortgage loan production offices, and is a top nation-wide SBA lender.

BayFirst Financial Corp., through the bank, offers a broad range of commercial and consumer banking services including various types of deposit accounts and loans for businesses and individuals. As of March 31, 2021, Bay First Financial Corp. had $1.7 billion in total assets, of which $967 million consisted of loans made under the Payroll Protection Program.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005017/en/

Anthony N. Leo

Chief Executive Officer

727.399.5678

Jeffrey M. Hunt

Chief Strategy Officer

727.399.5687

KEYWORDS: United States North America Florida

INDUSTRY KEYWORDS: Banking Professional Services Finance

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May 5, 2021 7:03 am

Surgery Partners, Inc. Announces First Quarter 2021 Results; Completes Refinancing Transactions

BRENTWOOD, Tenn., May 05, 2021 (GLOBE NEWSWIRE) — Surgery Partners, Inc. (NASDAQ:SGRY) (“Surgery Partners” or the “Company”), a leading provider of surgical services, today announced results for the first quarter ended March 31, 2021.

Revenues increased 16.2% from the prior year period to $512.4 million
- Days adjusted same-facility revenues increased 17.1% from the prior year period
- Days adjusted same-facility case volume increased 8.8% from the prior year period
Net loss attributable to common stockholders was $31.3 million
- Adjusted EBITDA increased to $72.9 million, growth of approximately 57% over the prior year period
- Adjusted EBITDA excluding the benefit from CARES Act grant recognition increased to $62.2 million, growth of approximately 34% over the prior year period
- 2021 Full year Adjusted EBITDA guidance increased to at least $320 million

Completes refinancing and amendment of Credit Agreement
- Refinances $119 million of incremental term loans incurred in April 2020
- Extends maturity of existing Credit Agreement until August 2026

Wayne DeVeydt, Executive Chairman of the Board of Surgery Partners, stated, “Our results continue to demonstrate the value our short-stay facilities provide during these unique times. The Board of Directors could not be more proud of our execution as we continue to provide exceptional patient experience and clinical quality in a low-cost environment. Based on our first quarter 2021 results and our strong liquidity position, this morning we increased our 2021 Adjusted EBITDA guidance to at least $320 million, which would represent nearly 25% growth over 2020 performance.”

Eric Evans, Chief Executive Officer, stated, “Our facilities remain a safe-haven for outpatient surgeries and are increasingly recognized for the value we provide to physicians, patients, health systems and health plans, who appreciate the quality, access and value of our model. Over the past few years, we have been investing in our facilities and new ones to capture this anticipated growth in higher acuity procedures in the outpatient setting.”

“The momentum of our physician recruiting efforts have continued in 2021, as we added more than 25% more physicians at our facilities in the first quarter as compared to last year. Our intentional focus on recruiting the right physicians over the past two years is especially evident in our same-facility revenue, which increased approximately 17% in the first quarter as well as in our expansion of total joint procedures, which grew 122% in our ASCs during the first quarter.”

Tom Cowhey, Chief Financial Officer, commented, “Our operations teams have been busy in 2021 executing on our growth goals, while our corporate teams have been enhancing our liquidity profile. Our February equity offering gives us ample capital to continue making investments across our business into existing and new lines of service, including investments in robotics, the expansion of our total joint and cardiology programs and, importantly, our development activities. Further, our recently completed refinancing transactions have lowered fixed charges and extended maturities, providing additional financial flexibility for our enterprise as we continue to execute on our Adjusted EBITDA growth goals.”

First Quarter 2021 Results

Revenues for the first quarter of 2021 increased 16.2% to $512.4 million from $441.0 million for the first quarter of 2020. Days adjusted Same-facility Revenues for the first quarter of 2021 increased 17.1% from the same period last year, with increases in revenue per case and same-facility cases of 7.6% and 8.8%, respectively. For the first quarter of 2021, the Company’s net loss attributable to common stockholders and Adjusted EBITDA, was $31.3 million and $72.9 million, respectively, compared to $37.0 million and $46.5 million for the same period last year. Adjusted EBITDA benefited from the recognition of $10.7 million of CARES Act grants inside the quarter. Excluding CARES Act grants, Adjusted EBITDA would have been $62.2 million.

2021 Outlook

The Company continues to project that it will be able to grow 2021 revenues by 18% to 20% over 2020 results and now projects 2021 Adjusted EBITDA of at least $320 million.

Liquidity

Surgery Partners had cash and cash equivalents of $541.9 million and $162.5 million of borrowing capacity under its revolving credit facility at March 31, 2021. Cash flows from operating activities was $50.2 million in the first quarter of 2021, an increase of 71.9% compared to the prior year quarter. Net operating cash inflows, defined as operating cash flows less distributions to non-controlling interests, was $18.9 million for the first quarter of 2021. The Company’s ratio of total net debt to EBITDA, as calculated under the Company’s credit agreement, was 6.1x at the end of the first quarter of 2021. Excluding approximately $120 million of cash advanced under the Medicare advance payments program (see below), the Company’s ratio of total net debt to EBITDA, as calculated under the Company’s credit agreement, would have been 6.4x at the end of the first quarter of 2021.

The Company received approximately $7 million of the grant funds distributed under the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act, and other governmental assistance programs during the three months ended March 31, 2021. Payments received from these grants are not required to be repaid provided the recipients attest to and comply with certain terms and conditions, including limitations on balance billing and not using funds received from the grants to reimburse expenses or losses that other sources are obligated to reimburse. During the first quarter, the Company updated its estimate of grant funds received that qualified for recognition, resulting in approximately $15.1 million being recognized as a reduction in operating expenses, representing $10.7 million of Adjusted EBITDA, after accounting for non-controlling interests.

Following the end of the first quarter, on April 1, 2021, the Company made the final $30.7 million payment plus interest to the United States Department of Justice in relation to the settlement in April 2020 involving a toxicology lab and pain management medical practice based in Tampa, Florida. The Company ceased operations at its toxicology lab in the third quarter of 2020.

On April 20, 2021, the Company provided notice to BCPE Seminole Holdings LP (“Bain Capital) of its intention to convert Series A preferred stock into 22.609 million common shares. The intent is to convert all of the outstanding 10.00% Series A Convertible Perpetual Participating Preferred Stock on May 17, 2021, based on meeting all the criteria for a conversion at the election of the Company, including achieving a volume weighted average closing price in excess of $42.00 per share for 20 out of the prior 30 trading days as of April 15, 2021.

Refinancing Transactions

On May 3, 2021, the Company refinanced $1.55 billion of term loans to extend the maturity until August of 2026 (subject to the Company refinancing, repaying or redeeming of at least half of the Company’s 6.750% senior unsecured notes due 2025 by April 1, 2025). In connection with this transaction, the Company is also in the process of entering into new LIBOR fixed rate swap arrangements through March of 2025. The Company expects that these transactions, in the aggregate, will save the Company over $7 million of annual cash interest.

Conference Call Information

Surgery Partners will hold a conference call today, May 5, 2021 at 8:30 a.m. (Eastern Time). The conference call can be accessed live over the phone by dialing 1-877-451-6152, or for international callers, 1-201-389-0879. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13718535. The replay will be available until May 19, 2021.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company’s website at www.surgerypartners.com. The replay will also be available on this same website for a limited time following the call.

To learn more about Surgery Partners, please visit the Company’s website at www.surgerypartners.com. Surgery Partners uses its website as a channel of distribution for material Company information. Financial and other material information regarding Surgery Partners is routinely posted on the Company’s website and is readily accessible.

About Surgery Partners

Headquartered in Brentwood, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 180 locations in 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities. For additional information, visit www.surgerypartners.com.

Forward-Looking Statements

This press release contains forward-looking statements, including those regarding growth, our anticipated operating results for future periods and other similar statements. These statements can be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “continues,” “estimates,” “predicts,” “projects,” “forecasts,” “may,” “could,” and similar expressions. All forward looking statements are based on current expectations and beliefs as of the date of this release and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those discussed in, or implied by, the forward-looking statements, including but not limited to, (i) the duration and severity of the COVID-19 outbreak in the United States and specifically in the regions in which we operate, the impact to the state and local economies of prolonged restrictive orders and the pandemic generally, our ability to respond nimbly to challenging economic conditions, the unpredictability of our case volume both in the current environment and as restrictions are eased, our ability to preserve or raise sufficient funds to continue operations throughout this period of uncertainty, the impact of our cost-cutting measures on our future performance, our ability to cause distributions from our subsidiaries, the responsiveness of our payors, including Medicaid and Medicare, to the challenging operating conditions, including their willingness and ability to continue paying in a timely manner and to advance payments in a timely manner, if at all, (ii) our ability to execute on our operational and strategic initiatives, (iii) the timing and impact of our portfolio optimization efforts, (iv) our ability to continue to improve same-facility volume and revenue growth on the timeline anticipated, if at all, (v) our ability to successfully integrate acquisitions, (vi) the anticipated impact and timing of our ongoing efficiency efforts, as well as our ongoing procurement and revenue cycle efforts, (vii) potential reductions to payments we receive from third-party payors, including government health care programs and private insurance organizations, (viii) the impact of adverse weather conditions and other events outside of our control, and (ix) the other risks identified and discussed from time to time in the Company’s reports filed with the SEC, including in Item 1A under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events or circumstances.

Use of Non-GAAP Financial Measures

In addition to the results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) provided throughout this press release, Surgery Partners has presented the following non-GAAP financial measures: Adjusted net gain (loss) attributable to common stockholders, Adjusted net gain (loss) per share attributable to common stockholders, Adjusted EBITDA and Adjusted EBITDA excluding grant funds, which exclude various items detailed in the attached “Reconciliation of Non-GAAP Financial Measures”.

These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as supplemental measures of the Company’s performance that management believes may enhance the evaluation of the Company’s ongoing operating results. These non-GAAP financial measures are not presented in accordance with GAAP, and the Company’s computation of these non-GAAP financial measures may vary from similar measures used by other companies. These measures have limitations as an analytical tool and should not be considered in isolation or as a substitute or alternative to revenue, net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance, liquidity or indebtedness derived in accordance with GAAP.

SURGERY PARTNERS, INC.

Selected Consolidated Financial Data

(Dollars in millions, except per share amounts, shares in thousands)

	Three Months Ended March 31,
	2021			2020

Revenues	$	512.4		$	441.0
Operating expenses:
Salaries and benefits	151.7			140.4
Supplies	147.3			129.3
Professional and medical fees	55.5			46.8
Lease expense	22.8			21.3
Other operating expenses	31.6			28.4
Cost of revenues	408.9			366.2
General and administrative expenses	26.8			22.8
Depreciation and amortization	25.7			21.8
Income from equity investments	(2.6		)	(2.0		)
(Gain) loss on disposals and deconsolidations, net	(0.9		)	3.5
Transaction and integration costs	5.3			5.5
Grant funds	(15.1		)	—
Litigation settlement	—			1.2
Other income	—			(1.5		)
Total operating expenses	448.1			417.5
Operating income	64.3			23.5
Interest expense, net	(53.3		)	(47.1		)
Income (loss) before income taxes	11.0			(23.6		)
Income tax expense (benefit)	0.2			(15.2		)
Net income (loss)	10.8			(8.4		)
Less: Net income attributable to non-controlling interests	(31.8		)	(19.1		)
Net loss attributable to Surgery Partners, Inc.	(21.0		)	(27.5		)
Less: Amounts attributable to participating securities	(10.3		)	(9.5		)
Net loss attributable to common stockholders	$	(31.3	)	$	(37.0	)

Net loss per share attributable to common stockholders
Basic	$	(0.57	)	$	(0.76	)
Diluted ⁽¹⁾	$	(0.57	)	$	(0.76	)
Weighted average common shares outstanding
Basic	54,773			48,472
Diluted ⁽¹⁾	54,773			48,472

⁽¹⁾The impact of potentially dilutive securities for all periods presented was not considered because the effect would be anti-dilutive in those periods.

SURGERY PARTNERS, INC.

Selected Financial and Operating Data

(Dollars in millions, except per case and per share amounts)

	March 31, 2021		December 31, 2020
Balance Sheet Data (at period end):
Cash and cash equivalents	$	541.9	$	317.9
Total current assets	1,017.8		801.5
Total assets	5,639.0		5,413.2

Current maturities of long-term debt	61.2		64.4
Total current liabilities	574.8		556.8
Long-term debt, less current maturities	2,789.5		2,792.4
Total liabilities	3,785.8		3,789.8

Non-controlling interests—redeemable	308.2		306.8
Redeemable preferred stock	439.7		434.5

Total Surgery Partners, Inc. stockholders’ equity	336.5		115.6
Non-controlling interests—non-redeemable	768.8		766.5
Total stockholders’ equity	1,105.3		882.1

	Three Months Ended March 31,
	2021			2020
Cash Flow Data:
Net cash provided by (used in):
Operating activities	$	50.2		$	29.2
Investing activities	(14.3		)	(7.7		)
Capital expenditures	(14.5		)	(11.8		)
Payments for acquisitions, net of cash acquired	(2.1		)	(5.5		)
Financing activities	187.8			80.4
Distributions to non-controlling interests	(31.3		)	(24.0		)

	Three Months Ended March 31,
	2021				2020
Other Data:
Number of surgical facilities as of the end of period	127				127
Number of consolidated surgical facilities as of the end of period	107				107

Cases	125,127				115,552
Revenue per case	$	4,095			$	3,816
Adjusted EBITDA ⁽¹⁾	$	72.9			$	46.5
Adjusted EBITDA excluding grant funds ⁽¹⁾	$	62.2			$	46.5
Adjusted EBITDA margin ⁽²⁾	14.2			%	10.5			%
Adjusted net loss per share attributable to common stockholders – Basic ⁽¹⁾	$	(0.30	)		$	(0.34	)
Adjusted net loss per share attributable to common stockholders – Diluted ⁽¹⁾	$	(0.30	)		$	(0.34	)

⁽¹⁾A reconciliation of these non-GAAP financial measures appears below.

⁽²⁾Defined as Adjusted EBITDA as a % of Revenues.

SURGERY PARTNERS, INC.

Supplemental Information

(Dollars in millions, except per case amounts)

	Three Months Ended March 31,
	2021			2020
Same-facility Information ⁽¹⁾ :
Cases	135,690			126,641
Case growth	7.1		%	N/A
Revenue per case	$	3,749		$	3,484
Revenue per case growth	7.6		%	N/A
Number of work days in the period	63			64
Case growth (days adjusted)	8.8		%	N/A
Revenue growth (days adjusted)	17.1		%	N/A

⁽¹⁾ Same-facility information includes cases and revenues from our consolidated and non-consolidated surgical facilities (excluding facilities acquired in new markets or divested during the current and prior periods).

	Three Months Ended March 31,
	2021		2020
Segment Revenues:
Surgical facility services	$	495.8	$	423.2
Ancillary services	16.6		17.0
Optical services	—		0.8
Total revenues	$	512.4	$	441.0

	Three Months Ended March 31,
	2021			2020
Adjusted EBITDA:
Surgical facility services	$	95.0		$	67.2
Ancillary services	(0.9		)	(2.0		)
Optical services	—			0.4
All other	(21.2		)	(19.1		)
Total Adjusted EBITDA	$	72.9		$	46.5

SURGERY PARTNERS, INC.

Reconciliation of Non-GAAP Financial Measures

(Dollars in millions)

The following table reconciles Adjusted EBITDA to income (loss) before income taxes in the reported condensed consolidated financial information, the most directly comparable GAAP financial measure:

	Three Months Ended March 31,
	2021			2020

Income (loss) before income taxes	$	11.0		$	(23.6	)

Net income attributable to non-controlling interests	(31.8		)	(19.1		)
Depreciation and amortization	25.7			21.8
Interest expense, net	53.3			47.1
Equity-based compensation expense	5.2			3.5
Transaction, integration and acquisition costs ⁽¹⁾	9.4			12.6
(Gain) loss on disposals and deconsolidations, net	(0.9		)	3.5
Litigation settlement and other litigation costs ⁽²⁾	1.0			1.5
Gain on escrow release ⁽³⁾	—			(0.8		)
Adjusted EBITDA ⁽⁴⁾	$	72.9		$	46.5
Less: Impact of grant funds ⁽⁵⁾	(10.7		)	—
Adjusted EBITDA excluding grant funds	$	62.2		$	46.5

⁽¹⁾ This amount includes transaction and integration costs of $5.3 million and $5.5 million for the three months ended March 31, 2021 and 2020, respectively. This amount further includes start-up costs related to a de novo surgical hospital of $4.1 million and $7.1 million for the three months ended March 31, 2021 and 2020, respectively.

⁽²⁾ This amount includes other litigation costs of $1.0 million for the three months ended March 31, 2021. This amount includes litigation settlement costs of $1.2 million and other litigation costs of $0.3 million for the three months ended March 31, 2020.

⁽³⁾Included in other income in the condensed consolidated statement of operations for the three months ended March 31, 2020, with no comparable gain in the same 2021 period.

⁽⁴⁾We use Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by management to assess operating performance, make business decisions and allocate resources. Non-controlling interests represent the interests of third parties, such as physicians, and in some cases, healthcare systems that own an interest in surgical facilities that we consolidate for financial reporting purposes. We believe that it is helpful to investors to present Adjusted EBITDA as defined above because it excludes the portion of net income attributable to these third-party interests and clarifies for investors our portion of Adjusted EBITDA generated by our surgical facilities and other operations. Adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered in isolation or as a substitute for net income, operating income or any other measure calculated in accordance with GAAP. The items excluded from Adjusted EBITDA are significant components in understanding and evaluating our financial performance. We believe such adjustments are appropriate, as the magnitude and frequency of such items can vary significantly and are not related to the assessment of normal operating performance. Our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

⁽⁵⁾Represents the impact of grant funds recognized, net of amounts attributable to non-controlling interests.

SURGERY PARTNERS, INC.

Reconciliation of Non-GAAP Financial Measures

(Dollars in millions, except per share amounts, shares in thousands)

From time to time, the Company incurs certain non-recurring gains or losses that are normally non-operational in nature and that it does not consider relevant in assessing its ongoing operating performance. When significant, Surgery Partners’ management and Board of Directors typically exclude these gains or losses when evaluating the Company’s operating performance and in certain instances when evaluating performance for incentive compensation purposes. Additionally, the Company believes that certain investors and equity analysts exclude these or similar items when evaluating the Company’s current or future operating performance and in making informed investment decisions regarding the Company. Accordingly, the Company provides adjusted net loss attributable to common stockholders and adjusted net loss per share attributable to common stockholders as supplements to the comparable GAAP financial measures. Adjusted net loss attributable to common stockholders and adjusted net loss per share attributable to common stockholders should not be considered measures of financial performance under GAAP, and the items excluded from such measures are significant components in understanding and assessing financial performance. These measures should not be considered in isolation or as an alternative to the comparable GAAP financial measures as presented in the consolidated financial statements.

The following table reconciles net income (loss) income as reflected in the consolidated statements of operations to adjusted net loss used to calculate adjusted net loss per share attributable to common stockholders:

	Three Months Ended March 31,
	2021			2020
Consolidated Statements of Operations Data:
Net income (loss)	$	10.8		$	(8.4	)
Plus (minus):
Net income attributable to non-controlling interests	(31.8		)	(19.1		)
Amounts attributable to participating securities	(10.3		)	(9.5		)
Equity-based compensation expense	5.2			3.5
Transaction, integration and acquisition costs	9.4			12.6
(Gain) loss on disposals and deconsolidations, net	(0.9		)	3.5
Litigation settlement and other litigation costs	1.0			1.5
Gain on escrow release	—			(0.8		)
Adjusted net loss attributable to common stockholders	$	(16.6	)	$	(16.7	)

Adjusted net loss per share attributable to common stockholders
Basic	$	(0.30	)	$	(0.34	)
Diluted ⁽¹⁾	$	(0.30	)	$	(0.34	)
Weighted average common shares outstanding
Basic	54,773			48,472
Diluted ⁽¹⁾	54,773			48,472

⁽¹⁾ The impact of potentially dilutive securities for all periods presented was not considered because the effect would be anti-dilutive in those periods.

Contact

Surgery Partners Investor Relations
(615) 234-8940
[email protected]

May 5, 2021 7:03 am

Agrify to Host First Quarter 2021 Results Conference Call

BURLINGTON, Mass., May 05, 2021 (GLOBE NEWSWIRE) — Agrify Corporation (NasdaqCM:AGFY) (“Agrify” or the “Company”), a developer of highly advanced and proprietary precision hardware and software cultivation solutions for the indoor agriculture marketplace, today announced it will host a conference call to review its financial results for the first quarter ended March 31, 2021 on May 18, 2021 at 8:30 a.m. Eastern Time (ET). The call will be hosted by Raymond Chang, Chief Executive Officer and Niv Krikov, Chief Financial Officer. All interested parties are invited to attend. The Company will report its financial results for the first quarter in advance of the call.

DATE:	Tuesday, May 18, 2021
TIME:	8:30 a.m. ET
DIAL-IN NUMBER:	(833) 919-0714
CONFERENCE ID:	3871522
REPLAY:	(855) 859-2056 or (404) 537-3406 Available until 11:59 p.m. ET Tuesday, June 1, 2021 Replay Code: 3871522

About Agrify (NasdaqCM:AGFY)

We are a developer of premium grow solutions for the indoor agriculture marketplace. We use data, science, and technology to empower our customers to be more efficient, more productive, and more intelligent about how they run their businesses. Our highly advanced and proprietary hardware and software solutions have been designed to help our customers achieve the highest quality, consistency, and yield, all at the lowest possible cost. For more information, please visit our website at www.agrify.com.

Company Contacts:

Agrify

Niv Krikov
Chief Financial Officer
[email protected]
(617) 896-5240

Investor Relations

Rob Kelly
[email protected]
(416) 992-4539

Media Contact

Renee Cotsis
[email protected]

May 5, 2021 7:03 am

Vericel Reports First Quarter 2021 Financial Results and Raises Full-Year 2021 Revenue Guidance

First Quarter Total Net Revenue Increased 30% to $34.6 Million

Full-Year 2021 Revenue Guidance Raised to $165-$168 Million

Conference Call Today at 8:30am Eastern Time

CAMBRIDGE, Mass., May 05, 2021 (GLOBE NEWSWIRE) — Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, today reported financial results and business highlights for the first quarter ended March 31, 2021.

First Quarter 2021 Financial Highlights

Total net revenue increased 30% to $34.6 million, compared to $26.7 million in the first quarter of 2020
MACI^® net revenue of $23.8 million, Epicel^® net revenue of $9.8 million and NexoBrid^® revenue of $0.9 million related to the U.S. Biomedical Advanced Research and Development Authority (BARDA) procurement for emergency response preparedness
Gross margin of 66%, compared to 63% in the first quarter of 2020
Net loss of $3.3 million, or $0.07 per share, compared to $4.7 million, or $0.10 per share, in the first quarter of 2020
Non-GAAP adjusted EBITDA of $4.6 million, or 13% of net revenue, compared to adjusted EBITDA loss of $0.7 million in the first quarter of 2020
Operating cash flow of $10.1 million
As of March 31, 2021, the Company had $110 million in cash and investments, compared to $100 million as of December 31, 2020, and no debt

Business Highlights and Updates

MACI implant and biopsy growth of more than 20% compared to the first quarter of 2020
Epicel net revenue growth of 54% compared to the first quarter of 2020, with record monthly volume in February and the second highest quarterly Epicel revenue in history
Expansion of UnitedHealthcare’s MACI medical policy to include patella and multiple cartilage defects in the knee
Joined the S&P SmallCap 600^®

“We entered 2021 with a great deal of momentum and delivered another quarter of strong results across both our sports medicine and burn care franchises,” said Nick Colangelo, President and CEO of Vericel. “Our first quarter results demonstrate the strength of the Company’s financial profile as we continue to generate strong revenue growth and increase profitability and cash flow. Based on these results and our strong underlying business fundamentals, we remain on track for significant growth across both of our franchises and have raised our full-year 2021 revenue and adjusted EBITDA guidance.”

Full-Year 2021 Financial Guidance

Total net revenue now expected to be in the range of $165-$168 million, compared to previous guidance of approximately $161-$164 million
Adjusted EBITDA margin now expected to be in the range of 21.5% to 23.5%, compared to previous guidance of 21 to 23%
Gross margin guidance of 70% to 71% and estimated operating expenses of approximately $115 million maintained

First Quarter 2021 Results

Total net revenue for the quarter ended March 31, 2021 increased 30% to $34.6 million, compared to $26.7 million in the first quarter of 2020. Total net product revenue for the quarter included $23.8 million of MACI (autologous cultured chondrocytes on porcine collagen membrane) net revenue and $9.8 million of Epicel (cultured epidermal autografts) net revenue, compared to $20.3 million of MACI net revenue and $6.4 million of Epicel net revenue, respectively, in the first quarter of 2020. Total net revenue for the quarter also included $0.9 million of revenue related to the procurement of NexoBrid (concentrate of proteolytic enzymes enriched in bromelain) by BARDA for emergency response preparedness.

Gross profit for the quarter ended March 31, 2021 was $23.0 million, or 66% of net revenue, compared to $16.8 million, or 63% of net revenue, for the first quarter of 2020.

Total operating expenses for the quarter ended March 31, 2021 were $26.3 million, compared to $21.8 million for the same period in 2020. The increase in operating expenses was primarily due to an increase in stock-based compensation expense driven by share price appreciation over the past year.

Net loss for the quarter ended March 31, 2021 was $3.3 million, or $0.07 per share, compared to $4.7 million, or $0.10 per share, for the first quarter of 2020.

Non-GAAP adjusted EBITDA for the quarter ended March 31, 2021 was $4.6 million, or 13% of net revenue, compared to an adjusted EBITDA loss of $0.7 million in the first quarter of 2020. A table reconciling non-GAAP measures is included in this press release for reference.

As of March 31, 2021, the Company had $110 million in cash and investments, compared to $100 million as of December 31, 2020, and no debt.

Conference Call Information

Today’s conference call will be available live at 8:30am Eastern Time and can be accessed through the Investor Relations section of the Vericel website at http://investors.vcel.com/events-presentations. A slide presentation with highlights from today’s conference call will be available on the webcast and in the Investor Relations section of the Vericel website. Please access the site at least 15 minutes prior to the scheduled start time in order to download the required audio software, if necessary. To participate in the live call by telephone, please call (877) 312-5881 and reference Vericel Corporation’s first quarter 2021 investor conference call. If calling from outside the U.S., please use the international phone number (253) 237-1173.

If you are unable to participate in the live call, the webcast will be available at http://investors.vcel.com/events-presentations until May 5, 2022. A replay of the call will also be available until 11:30am (EDT) on May 12, 2021 by calling (855) 859-2056, or from outside the U.S. by calling (404) 537-3406. The conference ID is 9036676.

About Vericel Corporation

Vericel is a leader in advanced therapies for the sports medicine and severe burn care markets. The Company markets two cell therapy products in the United States. MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of patients with deep dermal or full-thickness burns greater than or equal to 30% of total body surface area. The Company also holds an exclusive license for North American rights to NexoBrid, a registration-stage biological orphan product for debridement of severe thermal burns. For more information, please visit the Company’s website at www.vcel.com.

GAAP v. Non-GAAP Measures

Vericel’s reported earnings are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and represent earnings as reported to the Securities and Exchange Commission. Vericel has provided in this release certain financial information that has not been prepared in accordance with GAAP. Vericel’s management believes that the non-GAAP adjusted EBITDA described in the release, which includes adjustments for specific items that are generally not indicative of our core operations, provides additional information that is useful to investors in understanding Vericel’s underlying performance, business and performance trends, and helps facilitate period-to-period comparisons and comparisons of its financial measures with other companies in Vericel’s industry. However, the non-GAAP financial measures that Vericel uses may differ from measures that other companies may use. Non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.

Epicel^® and MACI^® are registered trademarks of Vericel Corporation. NexoBrid^® is a registered trademark of MediWound Ltd. and is used under license to Vericel Corporation. © 2021 Vericel Corporation. All rights reserved.

Forward-Looking Statements

Vericel cautions 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 risks, assumptions, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Our actual results may differ materially from those expressed or implied by the forward-looking statements in this press release. These 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 words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions.

Among the
factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, uncertainties associated with our expectations regarding future revenue, growth in revenue, market penetration for MACI and Epicel, growth in profit, gross margins and operating margins, the ability to achieve or sustain profitability, contributions to adjusted EBITDA, the expected target surgeon audience
,
potential fluctuations in sales and volumes and our results of operations over the course of the year,
timing and conduct of clinical trial and product development activities, timing or likelihood of approval by the U.S. Food & Drug Administration of the NexoBrid Biologics License Application (BLA) for treatment of severe burns in the United States or other North American markets, the estimate of the commercial growth potential of our products and product candidates, availability of funding from BARDA under its agreement with MediWound Ltd. for use in connection with NexoBrid development activities,
competitive developments, changes in third-party coverage and reimbursement, our ability to supply or meet customer demand for our products, and the wide-ranging impacts of the COVID-19 pandemic on our business or the economy generally.

With respect to COVID-19, we are currently unable to reasonably estimate the specific extent, or duration of the impact of the COVID-19 pandemic on our business, financial and operating results. We are also unable to predict whether a resurgence of COVID-19 infections or the spread of COVID-19 variants, which may limit the effectiveness of approved vaccines, will result in future restrictions on the performance of elective surgical procedures or affect the availability of physicians and/or their treatment prioritizations, the willingness or ability of patients to seek treatment, or heighten the impact of the outbreak on the overall healthcare infrastructure.
Other disruptions or potential disruptions include restrictions on the ability of Company personnel to travel and access customers for training, promotion and case support, delays in product development efforts, and additional government-imposed quarantines and requirements to “shelter at home” or other incremental mitigation efforts or initiatives that 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. With respect to FDA’s review of the pending NexoBrid BLA, the COVID-19 pandemic may impact the FDA’s response times to regulatory submissions, its ability to monitor our clinical trials, and/or conduct necessary reviews or inspections of manufacturing facilities involved in the production of NexoBrid, any or all of which may result in timelines being materially delayed, which could affect the development and ultimate commercialization of NexoBrid. The total impact of these disruptions could have a material impact on the Company’s financial condition, cash flows and results of operations.

These and other significant factors are discussed in greater detail in Vericel’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 24, 2021, Vericel’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed with the SEC on May 5, 2021, and in other filings with the SEC. These forward-looking statements reflect our views as of the date hereof and Vericel does not assume and specifically disclaims any obligation to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.

Investor Contact:

Eric Burns
[email protected]
+1 (734) 418-4411

VERICEL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands)

	March 31,			December 31,
	2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	58,154		$	33,620
Short-term investments	25,402			42,187
Accounts receivable (net of allowance for doubtful accounts of $121 and $143, respectively)	29,122			34,504
Inventory	10,322			9,356
Other current assets	4,213			3,893
Total current assets	127,213			123,560
Property and equipment, net	9,076			7,633
Restricted cash	211			211
Right-of-use assets	48,943			50,105
Long-term investments	26,021			24,099
Total assets	$	211,464		$	205,608
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,826		$	6,755
Accrued expenses	9,965			11,293
Current portion of operating lease liabilities	4,398			4,394
Other liabilities	41			41
Total current liabilities	23,230			22,483
Operating lease liabilities	47,968			48,789
Other long-term liabilities	57			76
Total liabilities	$	71,255		$	71,348
COMMITMENTS AND CONTINGENCIES
Shareholders’ equity:
Common stock, no par value; shares authorized — 75,000; shares issued and outstanding 46,225 and 45,804, respectively	$	519,360		$	510,061
Accumulated other comprehensive income (loss)	(47		)	14
Accumulated deficit	(379,104		)	(375,815		)
Total shareholders’ equity	140,209			134,260
Total liabilities and shareholders’ equity	$	211,464		$	205,608

VERICEL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three Months Ended March 31,
	2021			2020
Product sales, net	$	33,627		$	26,678
Other revenue	941			—
Total revenue	34,568			26,678
Cost of product sales	11,583			9,922
Gross profit	22,985			16,756
Research and development	3,630			3,763
Selling, general and administrative	22,660			18,069
Total operating expenses	26,290			21,832
Loss from operations	(3,305		)	(5,076		)
Other income (expense):
Interest income	76			306
Interest expense	(1		)	(2		)
Other income	84			67
Total other income	159			371
Net loss before tax provision	$	(3,146	)	$	(4,705	)
Tax provision	(143		)	—
Net loss	$	(3,289	)	$	(4,705	)
Net loss per share attributable to common shareholders (Basic and diluted)	$	(0.07	)	$	(0.10	)
Weighted average number of common shares outstanding (Basic and diluted)	45,984			44,924

RECONCILIATION OF REPORTED NET LOSS (GAAP)
TO ADJUSTED EBITDA (NON-GAAP MEASURE) – UNAUDITED

	Three Months Ended March 31,
(In thousands)	2021			2020
Net loss	$	(3,289	)	$	(4,705	)
Stock compensation expense	7,019			3,768
Depreciation and amortization	811			533
Net interest income	(75		)	(304		)
Income tax provision	143			—
Adjusted EBITDA (Non-GAAP)	$	4,609		$	(708	)