Market Newsdesk

May 3, 2021 4:18 pm

Westlake Chemical Partners LP Announces First Quarter 2021 Distribution

Westlake Chemical Partners LP Announces First Quarter 2021 Distribution

$0.4714 cents per unit distribution declared payable on May 27, 2021

HOUSTON–(BUSINESS WIRE)–
The Board of Directors of Westlake Chemical Partners GP LLC, the general partner of Westlake Chemical Partners LP (the “Partnership”) (NYSE:WLKP), has declared a distribution by the Partnership of $0.4714 per unit. This is the 27th consecutive quarterly distribution announced by the Partnership since its initial public offering. The distribution will be payable on May 27, 2021, to unit holders of record on May 13, 2021.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of the Partnership’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

About Westlake Chemical Partners LP

Westlake Chemical Partners is a limited partnership formed by Westlake Chemical Corporation to operate, acquire and develop ethylene production facilities and other qualified assets. Headquartered in Houston, the Partnership owns a 22.8% interest in Westlake Chemical OpCo LP. Westlake Chemical OpCo LP’s assets include three facilities in Calvert City, Kentucky, and Lake Charles, Louisiana which process ethane and propane into ethylene, and an ethylene pipeline. For more information about Westlake Chemical Partners LP, please visit http://www.wlkpartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005553/en/

Media Inquiries:

Westlake Chemical Corp.

Ben Ederington, 1-713-960-9111

Investor Inquiries:

Westlake Chemical Corp.

Steve Bender, 1-713-960-9111

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Manufacturing Other Manufacturing Energy Other Energy Chemicals/Plastics

MEDIA:

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May 3, 2021 4:18 pm

Fabrinet Announces Third Quarter Fiscal Year 2021 Financial Results

Fabrinet Announces Third Quarter Fiscal Year 2021 Financial Results

Record Third Quarter Revenue of $479.3 Million Exceeds Guidance

BANGKOK–(BUSINESS WIRE)–
Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its third fiscal quarter ended March 26, 2021.

Seamus Grady, Chief Executive Officer of Fabrinet, said, “For the third quarter in a row, we delivered record revenue that exceeded our guidance. Notably, we saw sequential revenue growth from all the end markets that we track combined with improving operating margins, both of which helped generate record net income.”

Grady continued, “Based on our current outlook and continued demand, we expect another record performance in the fourth quarter and we remain well-positioned to continue to deliver strong results over the longer-term.”

Third Quarter Fiscal Year 2021 Financial Highlights

GAAP Results

Revenue for the third quarter of fiscal year 2021 was $479.3 million, compared to $411.2 million in the third quarter of fiscal year 2020.
GAAP net income for the third quarter of fiscal year 2021 was $37.5 million, compared to GAAP net income of $28.3 million for the third quarter of fiscal year 2020.
GAAP net income per diluted share for the third quarter of fiscal year 2021 was $1.00, compared to GAAP net income per diluted share of $0.75 for the third quarter of fiscal year 2020.

Non-GAAP Results

Non-GAAP net income for the third quarter of fiscal year 2021 was $45.4 million, compared to non-GAAP net income of $34.8 million for the third quarter of fiscal year 2020.
Non-GAAP net income per diluted share for the third quarter of fiscal year 2021 was $1.21, compared to non-GAAP net income per diluted share of $0.92 for the third quarter of fiscal year 2020.

Business Outlook

Based on information available as of May 3, 2021, Fabrinet is issuing guidance for its fourth fiscal quarter ending June 25, 2021, as follows:

Fabrinet expects fourth quarter revenue to be in the range of $475 million to $495 million.
GAAP net income per diluted share is expected to be in the range of $1.02 to $1.09, based on approximately 37.6 million fully diluted shares outstanding.
Non-GAAP net income per diluted share is expected to be in the range of $1.18 to $1.25, based on approximately 37.6 million fully diluted shares outstanding.

Conference Call Information

What:		Fabrinet Third Quarter Fiscal Year 2021 Financial Results Call
When:		Monday, May 3, 2021
Time:		5:00 p.m. ET
Live Call:		(888) 357-3694, domestic
		(253) 237-1137, international
		Passcode: 2790505
Replay:		(855) 859-2056, domestic
		(404) 537-3406, international
		Passcode: 2790505
Webcast:		http://investor.fabrinet.com/ (live and replay)

This press release and any other information related to the call will also be posted on Fabrinet’s website at http://investor.fabrinet.com. A recorded version of this webcast will be available approximately two hours after the call and will be archived on Fabrinet’s website for a period of one year.

About Fabrinet

Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and testing. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People’s Republic of China, Israel and the United Kingdom. For more information visit: www.fabrinet.com.

Forward-Looking Statements

“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include: (1) our optimism that the fourth quarter will represent another record performance for the company and that we remain well-positioned to continue to deliver strong results over the longer-term; and (2) all of the statements under the “Business Outlook” section regarding our expected revenue, GAAP and non-GAAP net income per share, and fully diluted shares outstanding for the fourth quarter of fiscal year 2021. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the effects of the COVID-19 pandemic on our business, particularly the possibility of (1) the growing global economic downturn, (2) extended shutdowns at any of our manufacturing facilities, especially if the pandemic intensifies or returns in various geographic areas, (3) continued disruption to our supply chain, which could increase our costs and affect our ability to procure parts and materials, especially if the pandemic intensifies or returns in various geographic areas, and (4) regional downward demand adjustments from our customers, particularly those in areas affected by the pandemic; less customer demand for our products and services than forecasted; less growth in the optical communications, industrial lasers and sensors markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased competition in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a small number of customers and suppliers; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including Thailand, the People’s Republic of China, Israel, the U.S. and the U.K.); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q, filed with the SEC on February 2, 2021. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financials

We refer to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding our ongoing operational performance. Non-GAAP net income excludes: share-based compensation expenses; depreciation of fair value uplift; amortization of intangibles; and amortization of deferred debt issuance costs. We have excluded these items in order to enhance investors’ understanding of our underlying operations. The use of these non-GAAP financial measures has material limitations because they should not be used to evaluate our company without reference to their corresponding GAAP financial measures. As such, we compensate for these material limitations by using these non-GAAP financial measures in conjunction with GAAP financial measures.

These non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in making financial and operational decisions. In addition, these non-GAAP financial measures are used to measure company performance for the purposes of determining employee incentive plan compensation.

FABRINET
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands of U.S. dollars, except share data and par value)	March 26, 2021			June 26, 2020
Assets
Current assets
Cash and cash equivalents	$	247,011		$	225,430
Short-term restricted cash		—			7,402
Short-term investments		261,736			262,693
Trade accounts receivable, net of allowance for doubtful accounts of $126 and $336 respectively		309,079			272,665
Contract assets		17,130			13,256
Inventories		353,283			309,786
Other receivable		24,310			24,310
Prepaid expenses		10,653			5,399
Other current assets		31,967			14,508
Total current assets		1,255,169			1,135,449
Non-current assets
Long-term restricted cash		153			—
Property, plant and equipment, net		228,767			228,274
Intangibles, net		4,576			4,312
Operating right-of-use assets		6,744			8,068
Deferred tax assets		6,195			5,675
Other non-current assets		226			202
Total non-current assets		246,661			246,531
Total Assets		1,501,830			1,381,980
Liabilities and Shareholders’ Equity
Current liabilities
Long-term borrowings, current portion, net		12,156			12,156
Trade accounts payable		275,705			251,603
Fixed assets payable		11,060			15,127
Contract liabilities		1,409			1,556
Operating lease liabilities, current portion		2,390			1,979
Income tax payable		2,882			2,242
Accrued payroll, bonus and related expenses		21,639			19,265
Accrued expenses		12,651			8,979
Other payables		26,348			21,514
Total current liabilities		366,240			334,421
Non-current liabilities
Long-term borrowings, non-current portion, net		30,397			39,514
Deferred tax liability		4,855			4,729
Operating lease liability, non-current portion		4,098			5,873
Severance liabilities		19,006			17,379
Other non-current liabilities		3,728			5,655
Total non-current liabilities		62,084			73,150
Total Liabilities		428,324			407,571

Shareholders’ equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of March 26, 2021 and June 26, 2020)		—			—
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,741,166 shares and 38,471,967 shares issued at March 26, 2021 and June 26, 2020, respectively; and 36,880,160 shares and 36,727,864 shares outstanding at March 26, 2021 and June 26, 2020, respectively)		388			385
Additional paid-in capital		182,987			175,610
Less: Treasury shares (1,861,006 shares and 1,744,103 shares as of March 26, 2021 and June 26, 2020, respectively)		(76,813	)		(68,501	)
Accumulated other comprehensive income (loss)		(6,939	)		(1,147	)
Retained earnings		973,883			868,062
Total Shareholders’ Equity		1,073,506			974,409
Total Liabilities and Shareholders’ Equity	$	1,501,830		$	1,381,980

FABRINET
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited)

	Three Months Ended						Nine Months Ended
(in thousands of U.S. dollars, except per share data)	March 26, 2021			March 27, 2020			March 26, 2021			March 27, 2020
Revenues	$	479,317		$	411,210		$	1,369,783		$	1,236,723
Cost of revenues		(422,539	)		(366,874	)		(1,209,504	)		(1,097,242	)
Gross profit		56,778			44,336			160,279			139,481
Selling, general and administrative expenses		(19,059	)		(17,111	)		(53,078	)		(50,189	)
Expenses related to reduction in workforce		(43	)		—			(43	)		(16	)
Operating income		37,676			27,225			107,158			89,276
Interest income		941			2,042			3,156			6,080
Interest expense		(282	)		(238	)		(798	)		(2,812	)
Foreign exchange gain (loss), net		629			(8	)		224			(2,949	)
Other income (expense), net		124			203			403			977
Income before income taxes		39,088			29,224			110,143			90,572
Income tax expense		(1,595	)		(957	)		(4,215	)		(5,117	)
Net income		37,493			28,267			105,928			85,455
Other comprehensive income (loss), net of tax:
Change in net unrealized gain (loss) on available-for-sale securities		(570	)		(1,356	)		(937	)		(1,403	)
Change in net unrealized gain (loss) on derivative instruments		(5,000	)		(6,569	)		(5,823	)		(6,719	)
Change in net retirement benefits plan – prior service cost		198			294			421			478
Change in foreign currency translation adjustment		90			(600	)		547			(353	)
Total other comprehensive income (loss), net of tax		(5,282	)		(8,231	)		(5,792	)		(7,997	)
Net comprehensive income (loss)	$	32,211		$	20,036		$	100,136		$	77,458
Earnings per share
Basic	$	1.02		$	0.76		$	2.87		$	2.31
Diluted	$	1.00		$	0.75		$	2.82		$	2.27
Weighted-average number of ordinary shares outstanding (thousands of shares)
Basic		36,875			36,987			36,876			36,970
Diluted		37,609			37,797			37,514			37,696

FABRINET
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Nine Months Ended
(in thousands of U.S. dollars)	March 26, 2021			March 27, 2020
Cash flows from operating activities
Net income for the period	$	105,928		$	85,455
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		26,781			23,115
(Gain) loss on disposal of property, plant and equipment		(24	)		444
(Gain) loss from sales and maturities of available-for-sale securities		(187	)		(93	)
Amortization of investment discount		1,479			(624	)
Amortization of deferred debt issuance costs		24			18
(Reversal of) allowance for doubtful accounts		(317	)		(17	)
Unrealized (gain) loss on exchange rate and fair value of foreign currency forward contracts		(825	)		942
Unrealized loss (gain) on fair value of interest rate swaps		—			1,672
Amortization of fair value at hedge inception of interest rate swaps		(1,009	)		(838	)
Share-based compensation		18,742			18,301
Deferred income tax		(382	)		1,335
Other non-cash expenses		(614	)		(559	)
Changes in operating assets and liabilities
Trade accounts receivable		(36,437	)		(23,136	)
Contract assets		(3,874	)		(3,966	)
Inventories		(43,497	)		3,404
Other current assets and non-current assets		(22,919	)		5,830
Trade accounts payable		25,589			(15,571	)
Contract liabilities		(147	)		(298	)
Income tax payable		911			1,056
Severance liabilities		2,204			2,266
Other current liabilities and non-current liabilities		3,731			5,712
Net cash provided by operating activities		75,157			104,448
Cash flows from investing activities
Purchase of short-term investments		(183,041	)		(123,980	)
Proceeds from sales of short-term investments		84,049			48,808
Proceeds from maturities of short-term investments		97,721			97,358
Funds provided to customer to support transfer of manufacturing operations		—			(24,310	)
Purchase of property, plant and equipment		(29,061	)		(27,482	)
Purchase of intangibles		(1,961	)		(797	)
Proceeds from disposal of property, plant and equipment		38			1,482
Net cash used in investing activities		(32,255	)		(28,921	)
Cash flows from financing activities
Payment of debt issuance costs		—			(153	)
Proceeds from long-term borrowings		—			60,938
Repayment of long-term borrowings		(9,141	)		(67,032	)
Repayment of finance lease liability		(100	)		(304	)
Repurchase of ordinary shares		(8,312	)		(20,722	)
Withholding tax related to net share settlement of restricted share units		(11,362	)		(4,727	)
Net cash used in financing activities		(28,915	)		(32,000	)
Net increase (decrease) in cash, cash equivalents and restricted cash		13,987			43,527
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at the beginning of period		232,832			188,241
Increase (decrease) in cash, cash equivalents and restricted cash		13,987			43,527
Effect of exchange rate on cash, cash equivalents and restricted cash		345			(228	)
Cash, cash equivalents and restricted cash at the end of period		247,164			231,540
Non-cash investing and financing activities
Construction, software and equipment-related payables	$	11,060		$	11,906

FABRINET

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Continued)

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows:

	As of
(amount in thousands)	March 26, 2021		March 27, 2020
Cash and cash equivalents	$	247,011	$	224,138
Restricted cash	153		7,402
Cash, cash equivalents and restricted cash	$	247,164	$	231,540

FABRINET
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

	Three Months Ended								Nine Months Ended
	March 26, 2021				March 27, 2020				March 26, 2021				March 27, 2020
(in thousands of U.S. dollars, except per share data)	Net income		Diluted EPS		Net income		Diluted EPS		Net income		Diluted EPS		Net income		Diluted EPS
GAAP measures	$	37,493	$	1.00	$	28,267	$	0.75	$	105,928	$	2.82	$	85,455	$	2.27
Items reconciling GAAP net income & EPS to non-GAAP net income & EPS:
Related to cost of revenues:
Share-based compensation expenses	1,388		0.04		1,489		0.04		4,805		0.13		4,800		0.13
Depreciation of fair value uplift	89		0.00		86		0.00		256		0.00		247		0.00
Total related to gross profit	1,477		0.04		1,575		0.04		5,061		0.13		5,047		0.13
Related to selling, general and administrative expenses:
Share-based compensation expenses	5,476		0.15		4,629		0.12		13,937		0.37		13,501		0.36
Amortization of intangibles	127		0.00		145		0.00		382		0.01		431		0.01
Severance payment	755		0.02		150		0.00		755		0.02		150		0.00
Total related to selling, general and administrative expenses	6,358		0.17		4,924		0.13		15,074		0.40		14,082		0.37
Related to other incomes and other expenses:
Other expenses in relation to reduction in workforce	43		0.00		—		—		43		0.00		16		0.00
Amortization of deferred debt issuance costs	8		0.00		8		0.00		24		0.00		18		0.00
Total related to other incomes and other expenses	51		—		8		—		67		—		34		—
Total related to net income & EPS	7,886		0.21		6,507		0.17		20,202		0.54		19,163		0.51
Non-GAAP measures	$	45,379	$	1.21	$	34,774	$	0.92	$	126,130	$	3.36	$	104,618	$	2.78
Shares used in computing diluted net income per share
GAAP diluted shares			37,609				37,797				37,514				37,696
Non-GAAP diluted shares			37,609				37,797				37,514				37,696

FABRINET
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

(amount in thousands)	Three Months Ended						Nine Months Ended
	March 26, 2021			March 27, 2020			March 26, 2021			March 27, 2020
Net cash provided by operating activities	$	33,843		$	51,838		$	75,157		$	104,448
Less: Purchase of property, plant and equipment		(6,368	)		(12,071	)		(29,061	)		(27,482	)
Non-GAAP free cash flow	$	27,475		$	39,767		$	46,096		$	76,966

FABRINET
GUIDANCE FOR QUARTER ENDING JUNE 25, 2021
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

	Diluted EPS
GAAP net income per diluted share:	$1.02 to $1.09
Related to cost of revenues:
Share-based compensation expenses	0.04
Total related to gross profit	0.04
Related to selling, general and administrative expenses:
Share-based compensation expenses	0.12
Total related to selling, general and administrative expenses	0.12
Total related to net income & EPS	0.16
Non-GAAP net income per diluted share	$1.18 to $1.25

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005709/en/

Investor Contact:

Garo Toomajanian

[email protected]

KEYWORDS: Asia Pacific Thailand

INDUSTRY KEYWORDS: Supply Chain Management Packaging Engineering Retail Automotive Manufacturing Manufacturing

MEDIA:

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May 3, 2021 4:18 pm

ION announces first quarter 2021 earnings and conference call schedule

HOUSTON, May 03, 2021 (GLOBE NEWSWIRE) — ION Geophysical Corporation (NYSE: IO) today announced that it will release its first quarter 2021 financial results on Wednesday, May 5, 2021 after the market closes. In conjunction with the release, ION has scheduled a conference call, which will be broadcast live over the Internet, on Thursday, May 6, 2021 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

	What:	ION First Quarter 2021 Earnings Conference Call
	When:	Thursday, May 6, 2021 – 10:00 a.m. Eastern Time
	How:	Live via phone – By dialing (833) 362-0195 and asking for the ION call a few minutes prior to the start time.
		Live over the Internet – by logging on to the webcast at the address below.
	Where:	https://ir.iongeo.com. The webcast, which will be accompanied by a slide presentation, can be accessed from the ION home page or by clicking on the link above.

For those who cannot listen to the live call, a telephonic replay will be available through May 13, 2021 and may be accessed by calling (855) 859-2056 using pass code 8154095. Also, an archive of the webcast will be available shortly after the call on the company’s website at https://ir.iongeo.com for approximately 12 months.

About ION

Leveraging innovative technologies, ION delivers powerful data-driven decision-making to offshore energy and maritime operations markets, enabling clients to optimize investments and results through access to our data, software and distinctive analytics. Learn more at iongeo.com.

Contacts

ION (Investor relations)

Executive Vice President and Chief Financial Officer
Mike Morrison, +1 281.879.3615
[email protected]

May 3, 2021 4:18 pm

Phillips 66 to host Annual Meeting of Shareholders

Phillips 66 to host Annual Meeting of Shareholders

HOUSTON–(BUSINESS WIRE)–
Phillips 66 (NYSE: PSX) will host its 2021 Annual Meeting of Shareholders on Wednesday, May 12, at 9 a.m. CDT in a virtual-only format via live webcast.

The meeting can be accessed at http://www.virtualshareholdermeeting.com/PSX2021 or the Phillips 66 Investors site at www.phillips66.com/investors under “Events and Presentations.”

Shareholders of record as of the close of business on March 17, 2021, can attend the virtual annual meeting by using the 16-digit control number included on the proxy card, voting instruction form or notice.

Shareholders who do not intend to vote or submit a question during the virtual meeting and other interested parties may access the meeting as guests.

Participants should allow 15 to 30 minutes before meeting time for check-in procedures. A replay of the webcast will be archived on the Investors site approximately 24 hours after the close of the meeting, and a transcript also will be available at a later date.

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,200 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of March 31, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005682/en/

Jeff Dietert (investors)

832-765-2297

[email protected]

Shannon Holy (investors)

832-765-2297

[email protected]

Thaddeus Herrick (media)

855-841-2368

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Manufacturing Professional Services Other Transport Other Energy Transport Other Manufacturing Oil/Gas Logistics/Supply Chain Management Energy Finance Chemicals/Plastics

MEDIA:

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May 3, 2021 4:18 pm

Enstar Completes Transaction With AXA XL

HAMILTON, Bermuda, May 03, 2021 (GLOBE NEWSWIRE) — Enstar Group Limited (NASDAQ: ESGR) announced today that one of its wholly owned subsidiaries has completed a transaction with AXA XL, a division of AXA, to provide adverse development cover.

In the transaction, Enstar’s subsidiary assumed reinsurance losses incurred on or prior to December 31, 2019 on a diversified mix of global casualty and professional lines for a premium equal to the transfer of loss reserves of 90% of $1.550 billion (or $1.395 billion).

Enstar’s subsidiary is providing 90% protection (with AXA XL retaining 10%) on two layers, the first providing $1.550 billion of cover in excess of a $9.438 billion retention and the second providing an additional $1.0 billion of cover in excess above $11.363 billion.

Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.

About Enstar

Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 100 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.

Cautionary Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Important risk factors regarding Enstar can be found under the heading “Risk Factors” in our Form 10-K for the year ended December 31, 2020 and are incorporated herein by reference. Furthermore, Enstar undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.

Contact: Group Communications
Telephone: +1 (441) 292-3645

May 3, 2021 4:18 pm

VMware to participate at the Dell Technologies Financial Analyst Q&A at Dell Technologies World

VMware to participate at the Dell Technologies Financial Analyst Q&A at Dell Technologies World

PALO ALTO, Calif.–(BUSINESS WIRE)–
VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced that Zane Rowe, as VMware’s interim chief executive officer, and Raghu Raghuram, VMware’s chief operating officer, products and cloud services, will participate at the Dell Technologies Financial Analyst Q&A at Dell Technologies World on Wednesday, May 5, 2021 at 11:30 a.m. PT/ 2:30 p.m. ET. VMware’s financial performance will not be discussed during the Q&A session in advance of VMware’s release of fiscal year 2022 first quarter financial results.

A live webcast will be available on VMware’s Investor Relations page at http://ir.vmware.com. The replay of the webcast will be available for 30 days.

About VMware

VMware software powers the world’s complex digital infrastructure. The company’s cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. For more information, please visit https://www.vmware.com/company.html

Additional Information

VMware’s website is located at www.vmware.com, and its investor relations website is located at http://ir.vmware.com. VMware’s goal is to maintain the investor relations website as a portal through which investors can easily find or navigate to pertinent information about VMware, all of which is made available free of charge. The additional information includes materials that VMware files with the SEC; announcements of investor conferences and events at which its executives talk about VMware’s products, services and competitive strategies; webcasts of our quarterly earnings calls, investor conferences and events (archives of which are also available for a limited time); additional information on VMware’s financial metrics, including reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures; press releases on quarterly earnings, product and service announcements, legal developments and international news; corporate governance information; and other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005689/en/

Sandra Kerrigan

VMware Investor Relations

[email protected]

Michael Thacker

VMware Global Communications

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Telecommunications Software Networks Data Management Technology Mobile/Wireless Other Technology Security

MEDIA:

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May 3, 2021 4:18 pm

CooperCompanies Acquires obp Medical

SAN RAMON, Calif., May 03, 2021 (GLOBE NEWSWIRE) — CooperCompanies (NYSE: COO), today announced that CooperSurgical has acquired obp Medical Corporation, a U.S. based medical device company that develops and markets differentiated products including single-use vaginal speculums with integrated LED illumination.

Commenting on the transaction, Al White, Cooper’s President and CEO said, “This acquisition is a great strategic fit that builds upon CooperSurgical‘s strong family of OB/GYN medical devices. obp Medical’s differentiated products will integrate seamlessly into our business and support our mission of advancing women’s healthcare.”

The acquisition price is approximately $60 million, and the products being acquired generated approximately $10 million of trailing twelve-month revenue. The acquisition is expected to be neutral to Cooper’s non-GAAP earnings per share in fiscal 2021.

About CooperCompanies

CooperCompanies (“Cooper”) is a global medical device company publicly traded on the NYSE (NYSE: COO). Cooper operates through two business units, CooperVision and CooperSurgical. CooperVision brings a refreshing perspective on vision care with a commitment to developing a wide range of high-quality products for contact lens wearers and providing focused practitioner support. CooperSurgical is committed to advancing the health of women, babies and families with its diversified portfolio of products and services focusing on medical devices and fertility & genomics. Headquartered in San Ramon, CA, Cooper has a workforce of more than 12,000 with products sold in over 100 countries. For more information, please visit www.coopercos.com.

About obp Medical Corporation

obp Medical Corporation, headquartered in Lawrence, MA, is a privately held medical device company that develops and markets single-use illuminating medical devices. The company’s non-surgical product portfolio includes a suite of single-use vaginal specula with integrated LED lighting technology, as well as anoscopes, laryngoscopes, endoscopic seals and other related kits and accessories. These products are used in more than 13,000 physician offices, clinics, surgery centers, and hospitals throughout the U.S., and healthcare facilities worldwide. The company also previously had a surgical division however this was spun off prior to the acquisition. More information can be found at www.obpmedical.com.

Forward Looking Statements

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements of which are other than statements of historical fact, including statements regarding the acquisition of obp Medical including financial position, market position, product development and business strategy, expected cost synergies, expected timing and benefits of the transaction, difficulties in integrating entities or operations, as well as estimates of our and obp Medical’s future expenses, sales and diluted earnings per share are forward looking. In addition, all statements regarding anticipated growth in our net sales and anticipated market conditions, planned product launches and expected results of operations are forward-looking. To identify these statements look for words like “believes,” “outlook,” “probable,” “expects,” “may,” “will,” “should,” “could,” “seeks,” “intends,” “plans,” “estimates” or “anticipates” and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.

Detailed descriptions of a number of important risk factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements can be found in our Securities and Exchange Commission filings, including under the “Business”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in our most recent Annual Report on Form 10-K, as such sections may be updated in our quarterly filings, copies of which are available on the Company’s website: www.coopercos.com. We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law.

Contact:
Kim Duncan
Vice President, Investor Relations and Risk Management
925-460-3663
[email protected]

May 3, 2021 4:18 pm

Insperity Announces First Quarter Results

Insperity Announces First Quarter Results

HOUSTON–(BUSINESS WIRE)–Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the first quarter ended Mar. 31, 2021:

Q1 revenue increased 5% to $1.3 billion
Q1 net income and diluted EPS of $61.9 million and $1.59, respectively
Q1 adjusted EPS up 7% to $1.82
Q1 adjusted EBITDA up 3% to $104.2 million

First Quarter Results

For the first quarter of 2021, reported net income and diluted earnings per share (“EPS”) were $61.9 million and $1.59, respectively. Adjusted EBITDA increased 3% to $104.2 million and adjusted EPS increased 7% to $1.82 over the first quarter of 2020, significantly above our expectations.

The average number of worksite employees (“WSEEs”) paid per month in Q1 2021 was 233,170 WSEEs, which was at the mid-point of our expected range. As for the three drivers of our growth, WSEEs paid from new sales and client retention were both in line with our forecast, while net gains from hiring in our client base exceeded our expectations. Revenue in Q1 2021 increased 5% to $1.3 billion on a 7% increase in revenue per WSEE, partially offset by an expected 2% decline in the average number of paid WSEEs.

“We are pleased with our strong Q1 results and our growth momentum driven by solid sales, client retention and growth in the client base in the face of the ongoing pandemic,” said Paul J. Sarvadi, Insperity chief executive officer and chairman. “The diligent and effective support provided by Insperity employees has helped our resilient client base weather the storm of the pandemic and emerge with confidence in the future. The combination of solid execution and strong demand for our services positions Insperity well for growth acceleration over the balance of the year, as we lay the foundation to return to double-digit unit growth and profitability.”

Gross profit increased by 7% over Q1 2020 to $251.4 million. This increase exceeded our forecast, as pricing was above targeted levels and each of our direct costs areas experienced lower than expected cost trends. As for benefit costs, healthcare utilization continued to gradually return to normal coming off of the earlier stages of the pandemic. However, when combined with COVID-19 related vaccination, testing and treatment costs, overall costs came in slightly below our Q1 budget. Our workers’ compensation program continued to produce favorable results on our ongoing claims management and, to a lesser degree, a favorable impact on the frequency of claims from the recent “work from home” status of many of our clients’ employees. The payroll tax area also produced gross profit contributions above budget, due to state unemployment tax rates received during Q1 coming in lower than our estimates and the receipt of a $5.5 million federal payroll tax refund related to a prior year.

Operating expenses increased 13% over Q1 2020, however, were flat when excluding performance-based compensation. First quarter 2021 operating costs reflected continued growth investments, including a 7% increase in the number of trained Business Performance Advisors, initial costs related to our SalesForce implementation and an increase in marketing costs associated with lead generation activity. These investments were partially offset by pandemic-related cost reductions, including reduced travel expenses.

Cash outlays during Q1 2021 included the repurchase of 340,000 shares of stock at a cost of $29.7 million, cash dividends totaling $15.5 million and capital expenditures of $12.1 million. We ended the quarter with $196.7 million of adjusted cash, cash equivalents and marketable securities, and $369.4 million outstanding under our $500 million credit facility.

“With our strong Q1 results, and positive trends in our growth, pricing and direct costs, we are raising our earnings outlook for the remainder of 2021,” said Douglas S. Sharp, Insperity senior vice president of finance, chief financial officer and treasurer. “With our solid balance sheet and the expectation for continued strong cash flow, we plan to continue to invest in our growth, while providing attractive returns to our shareholders through our dividend and share repurchase programs.”

2021 Guidance

The company also announced its updated guidance for 2021, including the second quarter of 2021. Please refer to the accompanying financial tables at the end of this press release for the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures.

	Q2 2021			Full Year 2021

Average WSEEs paid^(a)	239,300	—	241,600	243,600	—	248,300
Year-over-year increase	5%	—	6%	4%	—	6%

Adjusted EPS^(b)	$0.60	—	$0.70	$3.83	—	$4.40
Year-over-year decrease	(61)%	—	(55)%	(17)%	—	(5)%

Adjusted EBITDA (in millions)^(b)	$44	—	$49	$250	—	$280
Year-over-year decrease	(52)%	—	(47)%	(13)%	—	(3)%

____________________________________
(a)		Q2 2021 guidance for average WSEEs paid represents 2.6% to 3.6% sequential growth compared to Q1 2021.
(b)		Q2 2021 Adjusted EPS and Adjusted EBITDA comparisons to Q2 2020 reflect the unusually low benefits costs incurred during Q2 2020 due to health care deferrals and stay at home orders during the COVID-19 pandemic onset.

Definition of Key Metrics

Average WSEEs paid – Determined by calculating the company’s cumulative worksite employees paid during the period divided by the number of months in the period.

Adjusted EPS – Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation.

Adjusted EBITDA – Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense and non-cash stock-based compensation.

Conference Call and Webcast

Insperity will be hosting a conference call today at 5 p.m. ET to discuss these results, and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 877-651-0053 and use conference i.d. number 4536156. The call will also be webcast at http://ir.insperity.com. The conference call script will be available at the same website later today. A replay of the conference call will be available at 855-859-2056, conference i.d. 4536156. The webcast will be archived for one year.

About Insperity

Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering the most comprehensive suite of scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need for sustained growth. With 2020 revenues of $4.3 billion and more than 80 offices throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base the forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are:

adverse economic conditions;
impact of the COVID-19 pandemic, or other future pandemics, including the scope, severity and duration of the pandemic; government responses; regulatory developments; and the related disruptions and economic impact to our business and the small and medium-sized businesses that we serve;
vulnerability to regional economic factors because of our geographic market concentration;
failure to comply with covenants under our credit facility;
our liability for worksite employee payroll, payroll taxes and benefits costs;
increases in health insurance costs and workers’ compensation rates and underlying claims trends, health care reform, financial solvency of workers’ compensation carriers, other insurers or financial institutions, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims;
cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients;
the ability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts;
regulatory and tax developments and possible adverse application of various federal, state and local regulations;
failure to manage growth of our operations and the effectiveness of our sales and marketing efforts;
the impact of the competitive environment and other developments in the human resources services industry, including the PEO industry, on our growth and/or profitability;
an adverse final judgment or settlement of claims against Insperity;
disruptions of our information technology systems;
our liability or damage to our reputation relating to disclosure of sensitive or private information;
failure of third-party providers, data centers or cloud service providers; and
our ability to integrate or realize expected returns on our acquisitions.

These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.

Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Insperity, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands)	March 31, 2021			December 31, 2020

Assets
Cash and cash equivalents	$	494,777		$	554,846
Restricted cash	46,353			45,522
Marketable securities	34,292			34,529
Accounts receivable, net	561,244			392,746
Prepaid insurance	57,670			10,164
Other current assets	53,718			39,461
Income taxes receivable	3,451			—
Total current assets	1,251,505			1,077,268
Property and equipment, net	220,262			216,256
Right of use leased assets	67,688			60,663
Prepaid health insurance	9,000			9,000
Deposits	200,967			194,231
Goodwill and other intangible assets, net	12,707			12,707
Deferred income taxes, net	—			9,603
Other assets	6,955			4,548
Total assets	$	1,769,084		$	1,584,276

Liabilities and stockholders’ equity
Accounts payable	$	5,841		$	6,203
Payroll taxes and other payroll deductions payable	310,519			377,960
Accrued worksite employee payroll cost	503,334			334,836
Accrued health insurance costs	72,136			32,685
Accrued workers’ compensation costs	49,696			48,186
Accrued corporate payroll and commissions	41,720			44,277
Other accrued liabilities	61,105			60,777
Total current liabilities	1,044,351			904,924
Accrued workers’ compensation cost, net of current	190,336			195,239
Long-term debt	369,400			369,400
Operating lease liabilities, net of current	71,716			64,289
Deferred income taxes, net	13,343			—
Other accrued liabilities, net of current	6,294			6,292
Total noncurrent liabilities	651,089			635,220
Stockholders’ equity:
Common stock	555			555
Additional paid-in capital	81,329			95,528
Treasury stock, at cost	(628,391		)	(626,984		)
Retained earnings	620,151			575,033
Total stockholders’ equity	73,644			44,132
Total liabilities and stockholders’ equity	$	1,769,084		$	1,584,276

Insperity, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except per share amounts)	Three Months Ended March 31,
(in thousands, except per share amounts)	2021			2020			Change
Operating results:
Revenues⁽¹⁾	$	1,286,835		$	1,229,483		4.7	%
Payroll taxes, benefits and workers’ compensation costs	1,035,390			995,461			4.0	%
Gross profit	251,445			234,022			7.4	%
Salaries, wages and payroll taxes	103,075			86,501			19.2	%
Stock-based compensation	11,822			6,552			80.4	%
Commissions	7,719			8,460			(8.8	)%
Advertising	5,322			4,833			10.1	%
General and administrative expenses	31,636			34,853			(9.2	)%
Depreciation and amortization	8,047			7,602			5.9	%
Total operating expenses	167,621			148,801			12.6	%
Operating income	83,824			85,221			(1.6	)%
Other income (expense):
Interest income	543			1,879			(71.1	)%
Interest expense	(1,599		)	(2,362		)	(32.3	)%
Income before income tax expense	82,768			84,738			(2.3	)%
Income tax expense	20,846			22,646			(7.9	)%
Net income	$	61,922		$	62,092		(0.3	)%
Less distributed and undistributed earnings allocated to participating securities	(197		)	(462		)	(57.4	)%
Net income allocated to common shares	$	61,725		$	61,630		0.2	%

Net income per share of common stock
Basic	$	1.62		$	1.59		1.9	%
Diluted	$	1.59		$	1.58		0.6	%

____________________________________
(1)		Revenues are comprised of gross billings less WSEE payroll costs as follows:

	Three Months Ended March 31,
(in thousands)	2021		2020

Gross billings	$	8,050,422	$	7,436,754
Less: WSEE payroll cost		6,763,587		6,207,271
Revenues	$	1,286,835	$	1,229,483

Insperity, Inc. KEY FINANCIAL AND STATISTICAL DATA (Unaudited)

	Three Months Ended March 31,
	2021		2020		Change

Average WSEEs paid	233,170		238,014		(2.0)	%
Statistical data (per WSEE per month):
Revenues⁽¹⁾	$	1,840	$	1,722	6.9	%
Gross profit	359		328		9.5	%
Operating expenses	240		208		15.4	%
Operating income	120		119		0.8	%
Net income	89		87		2.3	%

____________________________________
(1)		Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month follows:

	Three Months Ended March 31,
(per WSEE per month)	2021		2020
Gross billings	$	11,509	$	10,415
Less: WSEE payroll cost		9,669		8,693
Revenues	$	1,840	$	1,722

Insperity, Inc.

Non-GAAP Financial Measures

(Unaudited)

Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.

Non-GAAP Measure	Definition	Benefit of Non-GAAP Measure
Non-bonus payroll cost	Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.	Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.
	Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.	We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.
Adjusted cash, cash equivalents and marketable securities	Excludes funds associated with: • federal and state income tax withholdings, • employment taxes, • other payroll deductions, and • client prepayments.	We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. Adjusted EBITDA is used by our lenders to assess our leverage and ability to make interest payments.

Adjusted operating expenses	Represents operating expenses excluding the impact of the following: • non-cash stock-based compensation, and • depreciation and amortization expense.

EBITDA	Represents net income computed in accordance with GAAP, plus: • interest expense, • income tax expense, and • depreciation and amortization expense.

Adjusted EBITDA	Represents EBITDA plus: • non-cash stock-based compensation.

Adjusted net income	Represents net income computed in accordance with GAAP, excluding: • non-cash stock-based compensation.

Adjusted EPS	Represents diluted net income per share computed in accordance with GAAP, excluding: • non-cash stock-based compensation.

Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):

	Three Months Ended March 31,
(in thousands, except per WSEE per month)	2021						2020
	$			WSEE			$			WSEE

Payroll cost	$	6,763,587		$	9,669		$	6,207,271		$	8,693
Less: Bonus payroll cost	1,420,475			2,031			1,050,968			1,472
Non-bonus payroll cost	$	5,343,112		$	7,638		$	5,156,303		$	7,221
% Change period over period	3.6		%	5.8		%	9.1		%	3.3		%

Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):

(in thousands)	March 31, 2021		December 31, 2020

Cash, cash equivalents and marketable securities	$	529,069	$	589,375
Less:
Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions	273,499		341,998
Client prepayments	58,918		35,328
Adjusted cash, cash equivalents and marketable securities	$	196,652	$	212,049

Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):

(in thousands, except per WSEE per month)	Three Months Ended March 31,
					2021						2020
	$		WSEE			$			WSEE

Net income	$	61,922	$	89		$	62,092		$	87
Income tax expense		20,846		30			22,646			32
Interest expense		1,599		2			2,362			3
Depreciation and amortization		8,047		11			7,602			11
EBITDA		92,414		132			94,702			133
Stock-based compensation		11,822		17			6,552			9
Adjusted EBITDA	$	104,236	$	149		$	101,254		$	142
% Change period over period		2.9		4.9	%		(0.2	)%		(5.3	)%

Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):

	Three Months Ended March 31,
(in thousands)	2021			2020

Net income	$	61,922		$	62,092
Non-GAAP adjustments:
Stock-based compensation	11,822			6,552
Total non-GAAP adjustments	11,822			6,552
Tax effect	(2,978		)	(1,751		)
Adjusted net income	$	70,766		$	66,893
% Change period over period	5.8		%	(18.0		) %

Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS^(non-GAAP):

	Three Months Ended March 31,
	2021			2020

Diluted EPS	$	1.59		$	1.58
Non-GAAP adjustments:
Stock-based compensation	0.30			0.17
Total non-GAAP adjustments	0.30			0.17
Tax effect	(0.07		)	(0.05		)
Adjusted EPS	$	1.82		$	1.70
% Change period over period	7.1		%	(14.1		) %

Following is a reconciliation of GAAP to non-GAAP financial measures for second quarter and full year 2021 guidance:

(in millions, except per share amounts)	Q2 2021 Guidance	Full Year 2021 Guidance

Net income	$14 – $18	$118 – $139
Income tax expense	5 – 6	42 – 51
Interest expense	2	7
Depreciation and amortization	10	40
EBITDA	31 – 36	207 – 237
Stock-based compensation	13	43
Adjusted EBITDA	$44 – $49	$250 – $280

Diluted net income per share of common stock	$0.36 – $0.46	$3.03 – $3.60
Non-GAAP adjustments:
Stock-based compensation	0.33	1.10
Total non-GAAP adjustments	0.33	1.10
Tax effect	(0.09)	(0.30)
Adjusted EPS	$0.60 – $0.70	$3.83 – $4.40

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005660/en/

Investor Relations Contact:

Douglas S. Sharp

Senior Vice President of Finance,

Chief Financial Officer and Treasurer

281-348-3232

[email protected]

News Media Contact:

Larry Shaffer

SVP of Marketing and Business Development

281-312-3020

[email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Professional Services Insurance Human Resources Finance

MEDIA:

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May 3, 2021 4:18 pm

Intrepid Announces First Quarter 2021 Results

Denver, CO, May 03, 2021 (GLOBE NEWSWIRE) — Intrepid Potash, Inc. (Intrepid) (NYSE:IPI) today reported its results for the first quarter of 2021.

Key Takeaways for Q1 2021

Net income of $2.5 million, or $0.18 per share
Gross margin of $9.1 million, up $3.5 million or 62%, compared to the first quarter of 2020.
Cash flow from operations of $19.1 million
Adjusted EBITDA⁽¹⁾ of $12.9 million
Water sales of $5.5 million
Produced water recycling initiative well under way

“First quarter results benefited from strong potash and Trio^® pricing and sales, leading to improvements in net income, gross margin and EBITDA compared to the prior year.” said Bob Jornayvaz, Intrepid’s Executive Chairman, President, and CEO. “Under application of fertilizer in prior years and strong commodity prices continue to support fertilizer demand across our markets and we expect robust cash flow from operations will continue in the second quarter. Above-average evaporation at our potash facilities during the summer of 2020 will extend our production season into the second quarter and will allow us to meet the continued strong demand for fertilizer.”

Jornayvaz continued, “We made substantial progress on our expansion into full-cycle water management during the quarter, increasing our recycling infrastructure and working to expand our current relationships with operators to include additional brine and recycled volumes. Oilfield activity continues to improve in the Delaware Basin with rig counts and permits steadily increasing throughout the first quarter which we expect will lead to improved oilfield segment results in future periods.”

Consolidated Results

We generated a first quarter 2021 net income of $2.5 million, or $0.18 per share and a gross margin of $9.1 million. Net income increased compared to the prior year as improved fertilizer pricing, strong demand in agricultural markets, and increased byproduct sales drove improvements in the bottom line.

Prior year first quarter net loss was impacted by the accrual of a $10 million settlement payment agreed upon at our March settlement hearing relating to the Mosaic litigation and partially offset by a gain of $4.7 million on the restricted sale of 320 acres of fee land at the Intrepid South property.

Segment Highlights

Potash

	Three Months Ended March 31,
	2021		2020
	(in thousands, except per ton data)
Sales	$	43,578	$	33,791
Gross margin	$	8,673	$	4,334

Potash sales volumes (in tons)	117		99
Potash production volumes (in tons)	113		137

Average potash net realized sales price per ton⁽¹⁾	$	282	$	255

Sales in the first quarter of 2021 increased compared to the same period in 2020, due to an 18% increase in sales volume, an 11% increase in our average net realized sales price per ton and a $1.8 million increase in byproduct sales. Agricultural sales volumes benefited from good weather, strong commodity prices, and very strong early season demand for fertilizer.

Average net realized sales price per ton was higher due to price increases announced in the fourth quarter of 2020 and the first quarter of 2021. Magnesium chloride sales improved $1.3 million compared to the first quarter of 2020 as good evaporation during the summer of 2020 improved product availability compared to the prior year.

Potash production decreased 18% compared to the first quarter of 2020 due to lower brine grade at our HB facility and reduced run days at our Moab plant as we increased salt production to meet first quarter demand. Despite the decreased production in first quarter, we have sufficient inventory to meet the strong fertilizer demand in our markets and have significantly more inventory left to harvest in our solar evaporation ponds compared to the prior year. We expect to operate our potash facilities into the second quarter of 2021, compared to the prior year in which we ended our spring production in the mid-April.

Gross margin of $8.7 million in the first quarter of 2021 was a $4.3 million increase compared to the prior year first quarter due to the factors discussed above.

Trio

^®

	Three Months Ended March 31,
	2021			2020
	(in thousands, except per ton data)
Sales	$	23,694		$	22,581
Gross deficit	$	(70	)	$	(3,555	)

Trio^® sales volume (in tons)	69			76
Trio^® production volume (in tons)	56			50

Average Trio^® net realized sales price per ton⁽¹⁾	$	233		$	193

Sales increased 5% for the first quarter of 2021, as compared to the same period in 2020 due to a 21% increase in average net realized sales price per ton, partially offset by a 9% decrease in Trio^®tons sold. Sales volumes decreased as we continued to sell fewer tons into international markets as we focus on the higher priced domestic market.

Average net realized sales price per ton increased due to higher pricing announced during the fourth quarter of 2020 and the first quarter of 2021 and a decrease in international sales which generally have a lower net realized sales price per ton.

Production volume increased 12% in the first quarter of 2021, compared to the first quarter of 2020, as we converted more tons of work-in-process inventory to premium Trio^®.

Our Trio^® segment generated a negative gross margin of $0.1 million in the first quarter of 2021, compared to a negative gross margin of $3.6 million in the first quarter of 2020, due to the factors discussed above.

Oilfield Solutions

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Sales	$	4,253	$	7,741
Gross margin	$	505	$	4,844

Sales decreased $3.5 million in the first quarter of 2021, compared to the same period in 2020, mainly due to a $3.3 million decrease in water sales. Our oilfield solutions water sales and sales of other oilfield products and services decreased as the COVID-19 pandemic reduced oilfield activity from year-ago levels.

Cost of goods sold increased 29%, or $0.9 million in the first quarter of 2021, compared to the prior year, primarily a result of increased third-party water purchases to meet the significant daily refresh rates for certain fracs on our South ranch. During the first quarter of 2021, we sold a majority of our water from water rights on our South ranch, while in the first quarter of 2020 we sold a majority of our water from our Pecos and Caprock water rights. Our water sales from the South ranch water rights generally carry a higher cost of goods sold as compared to sales from our Pecos and Caprock water rights.

Gross margin decreased $4.3 million compared to the prior year, due to the factors discussed above.

Liquidity

Cash provided by operations was $19.1 million during the first quarter of 2021. Cash used in investing activities was $2.3 million as we continued to carefully manage capital spending due to economic uncertainty caused by the COVID-19 pandemic.

As of March 31, 2021, we had $36.0 million in cash and cash equivalents and $35.0 million available to borrow under our revolving credit facility.

Notes

¹ Adjusted net income (loss), adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) and average net realized sales price per ton are non-GAAP financial measures. See the non-GAAP reconciliations set forth later in this press release for additional information.

Unless expressly stated otherwise or the context otherwise requires, references to tons in this press release refer to short tons. One short ton equals 2,000 pounds. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds.

Conference Call Information

A teleconference to discuss the quarter is scheduled for May 4, 2021, at 12:00 p.m. ET. The dial-in number is 1-800-319-4610 for U.S. and Canada, and is +1-631-891-4304 for other countries. The call will also be streamed on the Intrepid website, intrepidpotash.com.

An audio recording of the conference call will be available at intrepidpotash.com and by dialing 1-800-319-6413 for U.S. and Canada, or +1-631-883-6842 for other countries. The replay will require the input of the conference identification number 6792.

About Intrepid

Intrepid is a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed, and the oil and gas industry. Intrepid is the only U.S. producer of muriate of potash, which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, Intrepid produces a specialty fertilizer, Trio^®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. Intrepid also provides water, magnesium chloride, brine, and various oilfield products and services.

Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Intrepid’s mineral production comes from three solar solution potash facilities and one conventional underground Trio^® mine.

Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. Investors and other interested parties are encouraged to enroll at intrepidpotash.com, to receive automatic email alerts for new postings.

Forward-looking Statements

This document contains forward-looking statements – that is, statements about future, not past, events. The forward-looking statements in this document relate to, among other things, statements about Intrepid’s future financial performance, cash flow from operations expectations, water sales, production costs, acquisition expectations and operating plans, its market outlook, and the impact of the COVID-19 pandemic on the company. These statements are based on assumptions that Intrepid believes are reasonable. Forward-looking statements by their nature address matters that are uncertain. The particular uncertainties that could cause Intrepid’s actual results to be materially different from its forward-looking statements include the following:

changes in the price, demand, or supply of Intrepid’s products and services;
challenges to Intrepid’s water rights;
Intrepid’s ability to successfully identify and implement any opportunities to grow its business whether through expanded sales of water, Trio^®, byproducts, and other non-potassium related products or other revenue diversification activities;
Intrepid’s ability to integrate the Intrepid South assets into its existing business and achieve the expected benefits of the acquisition;
Intrepid’s ability to sell Trio^®internationally and manage risks associated with international sales, including pricing pressure and freight costs;
the costs of, and Intrepid’s ability to successfully execute, any strategic projects;
declines or changes in agricultural production or fertilizer application rates;
declines in the use of potassium-related products or water by oil and gas companies in their drilling operations;
Intrepid’s ability to prevail in outstanding legal proceedings against it;
Intrepid’s ability to comply with the terms of its senior notes and its revolving credit facility, including the underlying covenants, to avoid a default under those agreements;
further write-downs of the carrying value of assets, including inventories;
circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems;
changes in reserve estimates;
currency fluctuations;
adverse changes in economic conditions or credit markets;
the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes;
adverse weather events, including events affecting precipitation and evaporation rates at Intrepid’s solar solution mines;
increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise;
changes in the prices of raw materials, including chemicals, natural gas, and power;
Intrepid’s ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations;
interruptions in rail or truck transportation services, or fluctuations in the costs of these services;
Intrepid’s inability to fund necessary capital investments;
the impact of the COVID-19 pandemic on Intrepid’s business, operations, liquidity, financial condition, and results of operations; and
the other risks, uncertainties, and assumptions described in Intrepid’s periodic filings with the Securities and Exchange Commission, including in “Risk Factors” in Intrepid’s Annual Report on Form 10-K for the year ended December 31, 2020, as updated by subsequent Quarterly Reports on Form 10-Q.

In addition, new risks emerge from time to time. It is not possible for Intrepid to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements Intrepid may make.

All information in this document speaks as of the date of this release. New information or events after that date may cause our forward-looking statements in this document to change. We undertake no duty to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events.

Contact:

Matt Preston, Vice President – Finance
Phone: 303-996-3048
Email: [email protected]

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(In thousands, except per share amounts)

	Three Months Ended March 31,
	2021			2020
Sales	$	71,463		$	63,984
Less:
Freight costs	12,078			11,860
Warehousing and handling costs	2,632			2,904
Cost of goods sold	47,645			43,047
Lower of cost or net realizable value inventory adjustments	—			550
Gross Margin	9,108			5,623

Selling and administrative	5,791			6,599
Accretion of asset retirement obligation	441			435
Litigation settlement	—			10,075
Loss (gain) on sale of assets	2			(4,696		)
Other operating expense (income)	6			(11		)
Operating Income (Loss)	2,868			(6,779		)

Other Income (Expense)
Interest expense, net	(426		)	(792		)
Interest income	—			116
Other income	9			16
Income (Loss) Before Income Taxes	2,451			(7,439		)

Income Tax Benefit	—			42
Net Income (Loss)	$	2,451		$	(7,397	)

Weighted Average Shares Outstanding:
Basic	13,054			12,957
Diluted	13,297			12,957
Earnings Per Share:
Basic	$	0.19		$	(0.57	)
Diluted	$	0.18		$	(0.57	)

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

AS OF MARCH 31, 2021 AND DECEMBER 31, 2020

(In thousands, except share and per share amounts)

	March 31,			December 31,
	2021			2020
ASSETS
Cash and cash equivalents	$	35,995		$	19,515
Accounts receivable:
Trade, net	36,898			22,795
Other receivables, net	2,298			1,577
Inventory, net	78,919			88,673
Prepaid expenses and other current assets	2,906			3,228
Total current assets	157,016			135,788

Property, plant, equipment, and mineral properties, net	348,945			355,497
Water rights	19,184			19,184
Long-term parts inventory, net	29,359			28,900
Other assets, net	10,676			10,819
Total Assets	$	565,180		$	550,188

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	13,648		$	7,278
Accrued liabilities	13,080			12,701
Accrued employee compensation and benefits	5,928			4,422
Current portion of long-term debt, net	10,000			10,000
Other current liabilities	36,264			32,816
Total current liabilities	78,920			67,217

Advances on credit facility	29,817			29,817
Long-term debt, net	14,912			14,926
Asset retirement obligation	24,313			23,872
Operating lease liabilities	1,851			2,136
Other non-current liabilities	928			961
Total Liabilities	150,741			138,929

Commitments and Contingencies
Common stock, $0.001 par value; 40,000,000 shares authorized;
13,065,654 and 13,049,820 shares outstanding
at March 31, 2021, and December 31, 2020, respectively	13			13
Additional paid-in capital	657,566			656,837
Accumulated deficit	(243,140		)	(245,591		)
Total Stockholders’ Equity	414,439			411,259
Total Liabilities and Stockholders’ Equity	$	565,180		$	550,188

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(In thousands)

	Three Months Ended March 31,
	2021			2020
Cash Flows from Operating Activities:
Net income (loss)	$	2,451		$	(7,397	)
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	—			275
Depreciation, depletion and amortization	9,481			9,586
Accretion of asset retirement obligation	441			435
Amortization of deferred financing costs	68			86
Amortization of intangible assets	80			80
Stock-based compensation	890			1,032
Accrual for litigation settlement	—			10,075
Lower of cost or net realizable value inventory adjustments	—			550
Loss (gain) on disposal of assets	2			(4,696		)
Changes in operating assets and liabilities:
Trade accounts receivable, net	(14,103		)	(8,388		)
Other receivables, net	(720		)	(308		)
Inventory, net	9,293			4,976
Prepaid expenses and other current assets	358			857
Accounts payable, accrued liabilities, and accrued employee compensation and benefits	7,978			8,119
Operating lease liabilities	(525		)	(552		)
Other liabilities	3,415			41
Net cash provided by operating activities	19,109			14,771

Cash Flows from Investing Activities:
Additions to property, plant, equipment, mineral properties and other assets	(2,360		)	(5,710		)
Proceeds from sale of assets	47			4,786
Net cash used in investing activities	(2,313		)	(924		)

Cash Flows from Financing Activities:
Debt prepayment costs	(2		)	—
Repayments of long-term debt	(22		)	—
Payments of financing lease	(107		)	—
Proceeds from short-term borrowings on credit facility	—			10,000
Employee tax withholding paid for restricted stock upon vesting	(204		)	(49		)
Proceeds from exercise of stock options	43			—
Net cash (used in) provided by financing activities	(292		)	9,951

Net Change in Cash, Cash Equivalents and Restricted Cash	16,504			23,798
Cash, Cash Equivalents and Restricted Cash, beginning of period	20,184			21,239
Cash, Cash Equivalents and Restricted Cash, end of period	$	36,688		$	45,037

To supplement Intrepid’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Intrepid uses several non-GAAP financial measures to monitor and evaluate its performance. These non-GAAP financial measures include adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted EBITDA, and average net realized sales price per ton. These non-GAAP financial measures should not be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Intrepid believes these non-GAAP financial measures provide useful information to investors for analysis of its business. Intrepid uses these non-GAAP financial measures as one of its tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. Intrepid believes these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.

Adjusted Net I
ncome (Loss) and Adjusted Net Income (Loss) Per Diluted Share

Adjusted net income (loss) and adjusted net income (loss) per diluted share are calculated as net income (loss) or income (loss) per diluted share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of its operating results excluding items that Intrepid believes are not indicative of its fundamental ongoing operations.

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss):

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Net Income (Loss)	$	2,451	$	(7,397	)
Adjustments
Litigation Settlement	—		10,075
Gain on land sale	—		(4,696		)
Total adjustments	—		5,379
Adjusted Net Income (Loss)	$	2,451	$	(2,018	)

Reconciliation of Net Income (Loss)
per Share to Adjusted Net Income (Loss) per Share:

	Three Months Ended March 31,
	2021		2020
Net Income (Loss) Per Diluted Share	$	0.18	$	(0.57	)
Adjustments
Litigation settlement	—		0.78
Gain on land sale	—		(0.36		)
Total adjustments	—		0.42
Adjusted Net Income (Loss) Per Diluted Share	$	0.18	$	(0.15	)

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) is calculated as net income (loss) adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers adjusted EBITDA to be useful, and believe it to be useful for investors, because the measure reflects Intrepid’s operating performance before the effects of certain non-cash items and other items that Intrepid believes are not indicative of its core operations. Intrepid uses adjusted EBITDA to assess operating performance.

Reconciliation of Net Income (Loss) to Adjusted EBITDA:

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Net Income (Loss)	$	2,451	$	(7,397	)
Litigation settlement	—		10,075
Gain on land sale	—		(4,696		)
Interest expense	426		792
Income tax benefit	—		(42		)
Depreciation, depletion, and amortization	9,481		9,586
Amortization of intangible assets	80		80
Accretion of asset retirement obligation	441		435
Total adjustments	10,428		16,230
Adjusted EBITDA	$	12,879	$	8,833

Average Potash and Trio
^®
Net Realized Sales Price per Ton

Average net realized sales price per ton for potash is calculated as potash segment sales less potash segment byproduct sales and potash freight costs and then dividing that difference by the number of tons of potash sold in the period. Likewise, average net realized sales price per ton for Trio^® is calculated as Trio^® segment sales less Trio^® segment byproduct sales and Trio^® freight costs and then dividing that difference by Trio^® tons sold. Intrepid considers average net realized sales price per ton to be useful, and believe it to be useful for investors, because it shows Intrepid’s potash and Trio^® average per ton pricing without the effect of certain transportation and delivery costs. When Intrepid arranges transportation and delivery for a customer, it includes in revenue and in freight costs the costs associated with transportation and delivery. However, some of Intrepid’s customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in Intrepid’s revenue and freight costs. Intrepid uses average net realized sales price per ton as a key performance indicator to analyze potash and Trio^® sales and price trends.

Reconciliation of Sales to A
verage Net Realized Sales Price per Ton:

	Three Months Ended March 31,
	2021				2020
(in thousands, except per ton amounts)	Potash		Trio ^®		Potash		Trio ^®
Total Segment Sales	$	43,578	$	23,694	$	33,791	$	22,581
Less: Segment byproduct sales	5,784		1,180		3,973		1,380
Freight costs	4,809		6,440		4,540		6,534
Subtotal	$	32,985	$	16,074	$	25,278	$	14,667

Divided by:
Tons sold	117		69		99		76
Average net realized sales price per ton	$	282	$	233	$	255	$	193

	Three Months Ended March 31, 2021
Product	Potash Segment		Trio ^® Segment		Oilfield Solutions Segment		Intersegment Eliminations			Total
Potash	$	37,794	$	—	$	—	$	(62	)	$	37,732
Trio^®	—		22,514		—		—			22,514
Water	1,159		984		3,343		—			5,486
Salt	2,039		196		—		—			2,235
Magnesium Chloride	2,028		—		—		—			2,028
Brine Water	558		—		205		—			763
Other	—		—		705		—			705
Total Revenue	$	43,578	$	23,694	$	4,253	$	(62	)	$	71,463

	Three Months Ended March 31, 2020
Product	Potash Segment		Trio ^® Segment		Oilfield Solutions Segment		Intersegment Eliminations			Total
Potash	$	29,818	$	—	$	—	$	(129	)	$	29,689
Trio^®	—		21,201		—		—			21,201
Water	583		1,247		6,661		—			8,491
Salt	2,096		133		—		—			2,229
Magnesium Chloride	759		—		—		—			759
Brine Water	535		—		31		—			566
Other	—		—		1,049		—			1,049
Total Revenue	$	33,791	$	22,581	$	7,741	$	(129	)	$	63,984

Three Months Ended March 31, 2021	Potash		Trio ^®			Oilfield Solutions		Other			Consolidated
Sales	$	43,578	$	23,694		$	4,253	$	(62	)	$	71,463
Less: Freight costs	5,700		6,440			—		(62		)	12,078
Warehousing and handling costs	1,456		1,176			—		—			2,632
Cost of goods sold	27,749		16,148			3,748		—			47,645
Gross Margin (Deficit)	$	8,673	$	(70	)	$	505	$	—		$	9,108
Depreciation, depletion, and amortization incurred¹	$	7,178	$	1,507		$	688	$	188		$	9,561

Three Months Ended March 31, 2020	Potash		Trio ^®			Oilfield Solutions		Other			Consolidated
Sales	$	33,791	$	22,581		$	7,741	$	(129	)	$	63,984
Less: Freight costs	5,441		6,548			—		(129		)	11,860
Warehousing and handling costs	1,296		1,608			—		—			2,904
Cost of goods sold	22,720		17,430			2,897		—			43,047
Lower of cost or net realizable value inventory adjustments	—		550			—		—			550
Gross Margin (Deficit)	$	4,334	$	(3,555	)	$	4,844	$	—		$	5,623
Depreciation, depletion, and amortization incurred¹	$	7,312	$	1,508		$	632	$	214		$	9,666

(1) Depreciation, depletion, and amortization incurred for potash and Trio^® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory.

May 3, 2021 4:18 pm

Cherry Hill Mortgage Investment Corporation Sets Date for First Quarter 2021 Earnings Release and Conference Call

Cherry Hill Mortgage Investment Corporation Sets Date for First Quarter 2021 Earnings Release and Conference Call

FARMINGDALE, N.J.–(BUSINESS WIRE)–
Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) today announced that the Company will release first quarter 2021 financial results after the market closes on Monday, May 10, 2021. A conference call will be held the same day at 5:00 pm Eastern Time to review the Company’s first quarter.

Webcast:

The conference call will be available in the investor relations section of the Company’s website at www.chmireit.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

To Participate in the Telephone Conference Call:

Dial in at least 5 minutes prior to start time:

Domestic: 1-877-407-9716

International: 1-201-493-6779

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Replay Pin Number: 13719069

The playback can be accessed through June 10, 2021

About Cherry Hill Mortgage Investment Corporation

Cherry Hill Mortgage Investment Corporation is a real estate finance company that acquires, invests in and manages residential mortgage assets in the United States. For additional information, visit www.chmireit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005647/en/

Investor Relations

(877) 870 –7005

[email protected]

KEYWORDS: New Jersey United States North America

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

MEDIA: