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May 4, 2021 7:03 am

USA Compression Partners, LP Reports First Quarter 2021 Results; Confirms 2021 Outlook

USA Compression Partners, LP Reports First Quarter 2021 Results; Confirms 2021 Outlook

AUSTIN, Texas–(BUSINESS WIRE)–
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for the first quarter 2021.

First Quarter 2021 Highlights

Total revenues were $157.5 million for the first quarter 2021, compared to $179.0 million for the first quarter 2020.
Net income was $0.4 million for the first quarter 2021, compared to a net loss of $602.5 million for the first quarter 2020.
Net cash provided by operating activities was $39.6 million for the first quarter 2021, compared to $50.1 million for the first quarter 2020.
Adjusted EBITDA was $99.6 million for the first quarter 2021, compared to $106.2 million for the first quarter 2020.
Distributable Cash Flow was $52.6 million for the first quarter 2021, compared to $54.7 million for the first quarter 2020.
Announced cash distribution of $0.525 per common unit for the first quarter 2021, consistent with the first quarter 2020.
Distributable Cash Flow Coverage was 1.03x for the first quarter 2021, compared to 1.08x for the first quarter 2020.

“The first quarter of 2021 came in fairly consistent with the fourth quarter of 2020, reflecting what we expected would be a period of stability as we started the year,” commented Eric D. Long, USA Compression’s President and Chief Executive Officer. “While the general stability in both crude oil and natural gas prices has allowed customers to better plan their budgets and capital spending programs, lingering uncertainty around the timing of a recovery as well as the impact of potential legislative and regulatory changes on the industry have lent a cautious tone to overall activity.”

He continued, “With overall domestic natural gas production increasing modestly, we are now back at pre-COVID-19 levels, illustrating the importance of clean-burning natural gas to our country’s economy. While we acknowledge that renewable energy will increasingly become a more important contributor to our country’s energy needs, we believe the reliability and abundance of domestic natural gas will remain critical to serving our country’s energy needs.”

“As we previously discussed, our capital spending plans have been meaningfully reduced going into 2021. We continue to expect zero new unit deliveries during the year, instead spending nominal amounts of growth capital, primarily consisting of reconfigurations to prepare units for redeployment and first-time start-up costs. Partly as a result of this capital spending discipline, our debt levels and corresponding leverage were better than we expected for the first quarter.”

“While the recovery takes hold, we continue to focus on things within our control, namely capital spending and expense management. As you’ll note, our operating margins remain strong, reflecting continued focus on the core operations of the business, and helping improve Distributable Cash Flow coverage for the quarter.”

Expansion capital expenditures were $4.2 million, maintenance capital expenditures were $4.5 million and cash interest expense, net was $30.0 million for the first quarter 2021.

On April 14, 2021, the Partnership announced a first quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on May 7, 2021 to common unitholders of record as of the close of business on April 26, 2021.

Operational and Financial Data
	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
Operational data:
Fleet horsepower (at period end)	3,720,745			3,726,181			3,705,550
Revenue generating horsepower (at period end)	2,987,627			2,997,262			3,316,666
Average revenue generating horsepower	2,994,418			3,004,069			3,320,724
Revenue generating compression units (at period end)	3,942			3,968			4,516
Horsepower utilization (at period end) (1)	83.1		%	82.8		%	92.0		%
Average horsepower utilization (for the period) (1)	83.1		%	83.0		%	92.5		%

Financial data ($ in thousands, except per horsepower data):
Revenue	$	157,513		$	158,367		$	178,999
Average revenue per revenue generating horsepower per month (2)	$	16.60		$	16.55		$	16.89
Net income (loss) (3)	$	371		$	(1,474	)	$	(602,461	)
Operating income (loss) (3)	$	32,760		$	31,193		$	(569,710	)
Net cash provided by operating activities	$	39,612		$	97,547		$	50,077
Gross margin	$	47,855		$	48,480		$	61,072
Adjusted gross margin (4)(5)	$	108,885		$	108,276		$	119,834
Adjusted gross margin percentage	69.1		%	68.4		%	66.9		%
Adjusted EBITDA (5)	$	99,553		$	98,293		$	106,184
Adjusted EBITDA percentage	63.2		%	62.1		%	59.3		%
Distributable Cash Flow (5)	$	52,580		$	50,467		$	54,702

________________________
(1)	Horsepower utilization is calculated as (i) the sum of (a) revenue generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is subject to a purchase order, divided by (ii) total available horsepower less idle horsepower that is under repair.

	Horsepower utilization based on revenue generating horsepower and fleet horsepower was 80.3%, 80.4% and 89.5% at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

	Average horsepower utilization based on revenue generating horsepower and fleet horsepower was 80.4%, 80.6% and 89.8% for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

(2)	Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue generating horsepower at the end of each month in the period.

(3)	The Partnership’s net loss and operating loss for the three months ended March 31, 2020 included a $619.4 million impairment charge due to the asset carrying amount exceeding fair value as of March 31, 2020. The impairment charge did not impact the Partnership’s cash flows, liquidity position or compliance with debt covenants.

(4)	Adjusted gross margin was previously presented as gross operating margin. The definition of Adjusted gross margin is identical to the definition of gross operating margin previously presented. For the definition of Adjusted gross margin, see the “Non-GAAP Financial Measures” section below.

(5)	Adjusted gross margin, Adjusted EBITDA and Distributable Cash Flow are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below.

Liquidity and Long-Term Debt

As of March 31, 2021, the Partnership was in compliance with all covenants under its $1.6 billion revolving credit facility. As of March 31, 2021, the Partnership had outstanding borrowings under the revolving credit facility of $502.7 million, $1.1 billion of borrowing base availability and, subject to compliance with the applicable financial covenants, available borrowing capacity of $203.9 million. As of March 31, 2021, the outstanding aggregate principal amount of the Partnership’s 6.875% senior notes due 2026 and 6.875% senior notes due 2027 was $725.0 million and $750.0 million, respectively.

Full-Year 2021 Outlook

USA Compression is confirming its full-year 2021 guidance as follows:

Net income range of $0.0 million to $20.0 million;
A forward-looking estimate of net cash provided by operating activities is not provided because the items necessary to estimate net cash provided by operating activities, in particular the change in operating assets and liabilities, are not accessible or estimable at this time. The Partnership does not anticipate the changes in operating assets and liabilities to be material, but changes in accounts receivable, accounts payable, accrued liabilities and deferred revenue could be significant, such that the amount of net cash provided by operating activities would vary substantially from the amount of projected Adjusted EBITDA and Distributable Cash Flow;
Adjusted EBITDA range of $385.0 million to $405.0 million; and
Distributable Cash Flow range of $193.0 million to $213.0 million.

Conference Call

The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss first quarter 2021 performance. The call will be broadcast live over the Internet. Investors may participate either by phone or audio webcast.

By Phone:		Dial 800-367-2403 inside the U.S. and Canada at least 10 minutes before the call and ask for the USA Compression Partners Earnings Call. Investors outside the U.S. and Canada should dial 334-777-6978. The conference ID for both is 2579026.

		A replay of the call will be available through May 14, 2021. Callers inside the U.S. and Canada may access the replay by dialing 888-203-1112. Investors outside the U.S. and Canada should dial 719-457-0820. The conference ID for both is 2579026.

By Webcast:		Connect to the webcast via the “Events” page of USA Compression’s Investor Relations website at http://investors.usacompression.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call.

About USA Compression Partners, LP

USA Compression Partners, LP is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas and crude oil. USA Compression focuses on providing natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities and transportation applications. More information is available at usacompression.com.

Non-GAAP Financial Measures

This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes that Adjusted gross margin is useful as a supplemental measure to investors of the Partnership’s operating profitability. Adjusted gross margin is impacted primarily by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume and per unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin, its most directly comparable GAAP financial measure, or any other measure of financial performance presented in accordance with GAAP. Moreover, Adjusted gross margin as presented may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its costs. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes that it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.

Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis both as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense. The Partnership defines Adjusted EBITDA as EBITDA plus impairment of compression equipment, impairment of goodwill, interest income on capital lease, unit-based compensation expense (benefit), severance charges, certain transaction expenses, loss (gain) on disposition of assets and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of its financial statements, such as investors and commercial banks, to assess:

the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure or historical cost basis of the Partnership’s assets;
the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and
the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure.

Management believes that Adjusted EBITDA provides useful information to investors because, when viewed with GAAP results and the accompanying reconciliations, it provides a more complete understanding of the Partnership’s performance than GAAP results alone. Management also believes that external users of its financial statements benefit from having access to the same financial measures that management uses in evaluating the results of the Partnership’s business.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP as measures of operating performance and liquidity. Moreover, Adjusted EBITDA as presented may not be comparable to similarly titled measures of other companies.

Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of compression equipment, impairment of goodwill, certain transaction expenses, severance charges, loss (gain) on disposition of assets, proceeds from insurance recovery and other, less distributions on the Partnership’s Series A Preferred Units (“Preferred Units”) and maintenance capital expenditures.

Distributable Cash Flow should not be considered as an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance and liquidity. Moreover, the Partnership’s Distributable Cash Flow as presented may not be comparable to similarly titled measures of other companies.

Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors and others to compare basic cash flows the Partnership generates (after distributions on the Partnership’s Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions the Partnership expects to pay its common unitholders.

Distributable Cash Flow Coverage Ratio is defined as Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it allows management, investors and others to gauge the Partnership’s ability to pay distributions to common unitholders using the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio as presented may not be comparable to similarly titled measures of other companies.

This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership in its 2021 fiscal year. A forward-looking estimate of net cash provided by operating activities and reconciliations of the forward-looking estimates of Adjusted EBITDA and Distributable Cash Flow to net cash provided by operating activities are not provided because the items necessary to estimate net cash provided by operating activities, in particular the change in operating assets and liabilities, are not accessible or estimable at this time. The Partnership does not anticipate the changes in operating assets and liabilities to be material, but changes in accounts receivable, accounts payable, accrued liabilities and deferred revenue could be significant, such that the amount of net cash provided by operating activities would vary substantially from the amount of projected Adjusted EBITDA and Distributable Cash Flow.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income (loss) and net cash provided by operating activities, and net income (loss) and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Forward-Looking Statements

Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2021 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:

changes in the long-term supply of and demand for crude oil and natural gas, including as a result of uncertainty regarding the length of time it will take for the U.S. and the rest of the world to slow the spread of COVID-19 to the point where applicable authorities are comfortable continuing to ease, or declining to reinstate certain restrictions on various commercial and economic activities; such restrictions are designed to protect public health but also have the effect of reducing demand for crude oil and natural gas;
the severity and duration of world health events, including the COVID-19 outbreak, related economic repercussions, actions taken by governmental authorities and other third parties in response to the pandemic and the resulting disruption in the oil and gas industry and negative impact on demand for oil and gas, which continues to negatively impact our business;
changes in general economic conditions and changes in economic conditions of the crude oil and natural gas industries specifically, including the ability of members of the Organization of the Petroleum Exporting Countries (“OPEC”) and Russia (together with OPEC and other allied producing countries, “OPEC+”) to agree on and comply with supply limitations;
uncertainty regarding the timing, pace and extent of an economic recovery in the U.S. and elsewhere, which in turn will likely affect demand for crude oil and natural gas and therefore the demand for the compression and treating services we provide and the commercial opportunities available to us;
the deterioration of the financial condition of our customers, which may result in the initiation of bankruptcy proceedings with respect to customers;
renegotiation of material terms of customer contracts;
competitive conditions in our industry;
our ability to realize the anticipated benefits of acquisitions;
actions taken by our customers, competitors and third-party operators;
changes in the availability and cost of capital;
operating hazards, natural disasters, epidemics, pandemics (such as COVID-19), weather-related delays, casualty losses and other matters beyond our control;
operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions;
the restrictions on our business that are imposed under our long-term debt agreements;
information technology risks including the risk from cyberattack;
the effects of existing and future laws and governmental regulations;
the effects of future litigation;
factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the Securities and Exchange Commission (the “SEC”) on February 16, 2021, and subsequently filed reports; and
other factors discussed in the Partnership’s filings with the SEC.

All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.


USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per unit amounts – Unaudited)

	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
Revenues:
Contract operations	$	152,525		$	151,775		$	172,794
Parts and service	2,038			3,347			3,048
Related party	2,950			3,245			3,157
Total revenues	157,513			158,367			178,999
Costs and expenses:
Cost of operations, exclusive of depreciation and amortization	48,628			50,091			59,165
Depreciation and amortization	61,030			59,796			58,762
Selling, general and administrative	13,800			14,565			12,385
Loss (gain) on disposition of assets	(1,255		)	261			(1,014		)
Impairment of compression equipment	2,550			2,461			—
Impairment of goodwill	—			—			619,411
Total costs and expenses	124,753			127,174			748,709
Operating income (loss)	32,760			31,193			(569,710		)
Other income (expense):
Interest expense, net	(32,288		)	(32,336		)	(32,478		)
Other	25			19			23
Total other expense	(32,263		)	(32,317		)	(32,455		)
Net income (loss) before income tax expense	497			(1,124		)	(602,165		)
Income tax expense	126			350			296
Net income (loss)	371			(1,474		)	(602,461		)
Less: distributions on Preferred Units	(12,187		)	(12,187		)	(12,187		)
Net loss attributable to common unitholders’ interests	$	(11,816	)	$	(13,661	)	$	(614,648	)

Weighted average common units outstanding – basic and diluted	96,989			96,936			96,707

Basic and diluted net loss per common unit	$	(0.12	)	$	(0.14	)	$	(6.36	)

Distributions declared per common unit	$	0.525		$	0.525		$	0.525


USA COMPRESSION PARTNERS, LP SELECTED BALANCE SHEET DATA (In thousands, except unit amounts – Unaudited)

	March 31, 2021
Selected Balance Sheet data:
Total assets	$	2,895,951
Long-term debt, net	$	1,956,751
Total partners’ capital	$	275,814

Common units outstanding	97,022,290


USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands — Unaudited)

	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
Net cash provided by operating activities	$	39,612		$	97,547		$	50,077
Net cash used in investing activities	(4,206		)	(10,909		)	(42,070		)
Net cash used in financing activities	(35,309		)	(86,638		)	(8,015		)


USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN TO GROSS MARGIN (In thousands — Unaudited) The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented:

	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
Total revenues	$	157,513		$	158,367		$	178,999
Cost of operations, exclusive of depreciation and amortization	(48,628		)	(50,091		)	(59,165		)
Depreciation and amortization	(61,030		)	(59,796		)	(58,762		)
Gross margin	$	47,855		$	48,480		$	61,072
Depreciation and amortization	61,030			59,796			58,762
Adjusted gross margin	$	108,885		$	108,276		$	119,834


USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA TO NET INCOME (LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES (In thousands — Unaudited) The following table reconciles Adjusted EBITDA to net income (loss) and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
Net income (loss)	$	371		$	(1,474	)	$	(602,461	)
Interest expense, net	32,288			32,336			32,478
Depreciation and amortization	61,030			59,796			58,762
Income tax expense	126			350			296
EBITDA	$	93,815		$	91,008		$	(510,925	)
Interest income on capital lease	48			67			124
Unit-based compensation expense (benefit) (1)	4,182			4,329			(1,829		)
Severance charges	213			167			417
Loss (gain) on disposition of assets	(1,255		)	261			(1,014		)
Impairment of compression equipment (2)	2,550			2,461			—
Impairment of goodwill (3)	—			—			619,411
Adjusted EBITDA	$	99,553		$	98,293		$	106,184
Interest expense, net	(32,288		)	(32,336		)	(32,478		)
Non-cash interest expense	2,281			2,289			1,986
Income tax expense	(126		)	(350		)	(296		)
Interest income on capital lease	(48		)	(67		)	(124		)
Severance charges	(213		)	(167		)	(417		)
Other	(1,349		)	180			1,623
Changes in operating assets and liabilities	(28,198		)	29,705			(26,401		)
Net cash provided by operating activities	$	39,612		$	97,547		$	50,077

________________________
(1)	For the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, unit-based compensation expense included $1.1 million, $0.7 million and $0.9 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding phantom unit awards. The remainder of the unit-based compensation expense (benefit) for all periods was primarily related to non-cash adjustments to the unit-based compensation liability.
(2)	Represents non-cash charges incurred to write down long-lived assets with recorded values that are not expected to be recovered through future cash flows.
(3)	Represents non-cash charges due to the asset carrying amount exceeding fair value as of March 31, 2020.


USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DISTRIBUTABLE CASH FLOW TO NET INCOME (LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Dollars in thousands — Unaudited) The following table reconciles Distributable Cash Flow to net income (loss) and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
Net income (loss)	$	371		$	(1,474	)	$	(602,461	)
Non-cash interest expense	2,281			2,289			1,986
Depreciation and amortization	61,030			59,796			58,762
Non-cash income tax expense (benefit)	(99		)	180			123
Unit-based compensation expense (benefit) (1)	4,182			4,329			(1,829		)
Severance charges	213			167			417
Loss (gain) on disposition of assets	(1,255		)	261			(1,014		)
Impairment of compression equipment (2)	2,550			2,461			—
Impairment of goodwill (3)	—			—			619,411
Distributions on Preferred Units	(12,187		)	(12,187		)	(12,187		)
Proceeds from insurance recovery	—			—			336
Maintenance capital expenditures (4)	(4,506		)	(5,355		)	(8,842		)
Distributable Cash Flow	$	52,580		$	50,467		$	54,702
Maintenance capital expenditures	4,506			5,355			8,842
Severance charges	(213		)	(167		)	(417		)
Distributions on Preferred Units	12,187			12,187			12,187
Other	(1,250		)	—			1,164
Changes in operating assets and liabilities	(28,198		)	29,705			(26,401		)
Net cash provided by operating activities	$	39,612		$	97,547		$	50,077

Distributable Cash Flow	$	52,580		$	50,467		$	54,702

Distributions for Distributable Cash Flow Coverage Ratio (5)	$	50,937		$	50,906		$	50,779

Distributable Cash Flow Coverage Ratio	1.03		x	0.99		x	1.08		x

________________________
(1)	For the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, unit-based compensation expense included $1.1 million, $0.7 million and $0.9 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding phantom unit awards. The remainder of the unit-based compensation expense (benefit) for all periods was primarily related to non-cash adjustments to the unit-based compensation liability.
(2)	Represents non-cash charges incurred to write down long-lived assets with recorded values that are not expected to be recovered through future cash flows.
(3)	Represents non-cash charges due to the asset carrying amount exceeding fair value as of March 31, 2020.
(4)	Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow.
(5)	Represents distributions to the holders of the Partnership’s common units as of the record date.


USA COMPRESSION PARTNERS, LP FULL-YEAR 2021 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW GUIDANCE RANGE RECONCILIATION TO NET INCOME (Unaudited)

	Guidance
Net income	$0.0 million to $20.0 million
Plus: Interest expense, net	130.0 million
Plus: Depreciation and amortization	241.0 million
Plus: Income tax expense	1.0 million
EBITDA	$372.0 million to $392.0 million
Plus: Unit-based compensation expense and other (1)	13.0 million
Adjusted EBITDA	$385.0 million to $405.0 million
Less: Cash interest expense	120.5 million
Less: Current income tax expense	0.5 million
Less: Maintenance capital expenditures	22.0 million
Less: Distributions on Preferred Units	49.0 million
Distributable Cash Flow	$193.0 million to $213.0 million

________________________
(1)	Unit-based compensation expense is based on our closing per unit price of $15.20 on April 29, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005334/en/

USA Compression Partners, LP

Matthew C. Liuzzi

Chief Financial Officer

512-369-1624

[email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Energy Utilities Oil/Gas

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May 4, 2021 7:03 am

Burger King® Rolls Out Green Packaging Pilot Program

Burger King^® Rolls Out Green Packaging Pilot Program

BK^® Tests Alternatives for Cutlery, Straws, Drink Lids, Frypods^®, Whopper^® Wrappers and Napkins and Expands Loop Reusables Test in Partnership with The Coca-Cola Company and Kraft Heinz

MIAMI–(BUSINESS WIRE)–
Burger King^® is committed to being part of a more sustainable future by reducing our environmental footprint. That’s why today, we are continuing our journey by launching a green packaging pilot program focused on finding scalable solutions for eight of our most-used, guest-facing items including forks, spoons, knives, straws, drink lids, Frypods^®, Whopper^® wrappers and napkins.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210504005387/en/

BURGER KING® ROLLS OUT GREEN PACKAGING PILOT PROGRAM (Photo: Business Wire)

The guest packaging will be tested in 51 of our company-owned restaurants in Miami and utilizes alternative materials, such as Frypods^® made with renewable unbleached virgin paperboard; cutlery made with cPLA, a plant-based plastic; and napkins made with 100 percent recycled fiber. We will also be testing paper and plant-based straws along with strawless lids, which could potentially eliminate up to 500 million single-use plastic straws annually from participating U.S. Burger King^® restaurants. This action alone would translate to the removal of 910 metric tons of greenhouse gasses per year, the equivalent of 196 vehicles driven for one year. We’re also testing two new options for Whopper^® sandwich wraps, which represent a 13 percent and 34 percent reduction in paper compared to previous wraps, respectively. This could translate to an additional 500 to 1,500 metric tons of paper waste eliminated annually across the U.S.

“Sustainable packaging is a cornerstone of our Restaurant Brands for Good journey, and this new pilot represents a huge opportunity for us to make a difference,” said Matthew Banton, head of innovation and sustainability, Burger King^®. “We’re optimistic about our progress and are committed to reducing waste to do our part in creating a more sustainable future.”

By piloting solutions in restaurants, we can get direct feedback from guests on how the packages perform, make iterative changes with our supplier, and build an implementation roadmap for the system. Upon completion of the pilot test, we will take the learnings and guest feedback to inform our plans for nationwide sustainable packaging in the next year. This pilot gives us the opportunity to gain knowledge and provide learnings for the industry while getting us one step closer towards our goal of advancing packaging sustainability by improving materials and reducing overall packaging used, including single-use plastics.

The green packaging pilot is another action Burger King^®is taking to align with its principle of doing what’s right. In that spirit, we are continuing to develop our global partnership with Loop to reduce single-use packaging through reusables and are looking to include two new cities, Paris and London, in addition to the earlier announced target cities of New York, Portland, and Tokyo. Our reusable pilot will offer more guests the option to join us in our efforts to reduce waste when ordering their Burger King^® favorites like the Whopper^®sandwich, soft drink, or coffee.

Understanding that sustainability requires partnership throughout the supply chain, we are partnering with The Coca-Cola Company and Kraft Heinz to bring these initiatives to life. Leveraging our combined size and resources, we will work together to provide insights, packaging expertise, and resources on these pilots, helping to maximize future national potential.

“We continue to innovate and rethink how consumers enjoy Coca-Cola beverages. We are excited to partner with Burger King^® to offer a reusable packaging alternative for their guests,” said Barry Danckert, vice president, Global RBI Customer Team, The Coca-Cola Company. “This effort supports The Coca-Cola Company’s World Without Waste initiative and virgin plastic reduction goal.”

“Burger King^® has been leading the charge in foodservice sustainability and Kraft Heinz is excited to partner with them and Loop to offer reusable packaging around the world. Global companies and global brands have the power to help shape the world for good and Kraft Heinz is committed to a better future with responsible recycling and reusable initiatives,” said Peter Hall, president, U.S. Away From Home, Kraft Heinz.

To learn more about Restaurant Brands for Good and sustainability commitments and progress from Burger King^®, visit bk.com/sustainability.

About BURGER KING^®:

Founded in 1954, the Burger King^® brand is the second largest fast-food hamburger chain in the world. The original Home of The Whopper^®, the Burger King system operates more than 18,800 locations in more than 100 countries and U.S. territories. Almost 100 percent of Burger King restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. To learn more about the Burger King^® brand, please visit the Burger King^® brand website at www.bk.com or follow us on Facebook, Twitter, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005387/en/

ALISON BROD MARKETING + COMMUNICATIONS

Adrianna Lauricella

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KEYWORDS: United States North America Florida

INDUSTRY KEYWORDS: Retail Restaurant/Bar Environment Food/Beverage

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BURGER KING® ROLLS OUT GREEN PACKAGING PILOT PROGRAM (Photo: Business Wire)

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BURGER KING® ROLLS OUT GREEN PACKAGING PILOT PROGRAM (Photo: Business Wire)

Posted on May 4, 2021 7:03 am
Second Successful 2021 Launch for Spire

Second Successful 2021 Launch for Spire

Spire grows LEMUR CubeSat platform with newly deployed satellites

SAN FRANCISCO, Calif. & RESTON, Va.–(BUSINESS WIRE)–
On April 29 Spire successfully deployed two new satellites into its LEMUR constellation. The satellites bring Spire to 143 total satellites launched, with more than 110 currently in orbit. This is the second launch of 2021 for Spire and 30th launch overall.

The Low Earth Multi-Use Receiver (LEMUR) is Spire’s CubeSat platform used to track maritime, aviation, and weather activity from space. Each satellite is equipped with multiple sensors, capable of capturing data day and night and during extreme weather conditions.

These two satellites expand Spire’s rapidly growing data capture capabilities, strengthening the company’s operational capacity to serve its growing global customer base. Spire leverages its constellation to deliver proprietary data, insights, and predictive analytics to its global commercial and government customers through a subscription.

“A successful deployment requires a lot of collaboration between Spire and its partners, and we’re delighted to celebrate another successful step in serving our customers with fresh data and insights,” said Spire CEO, Peter Platzer. “We are committed to reliably serve our customers a little better every day. With this latest deployment we’re better equipped to help organizations across the world confidently and efficiently make decisions that matter with deliberate speed.”

The satellites were named by two key members of the Spire team, one of the “perks” every person working at Spire enjoys. Keith Johnson, VP and General Manager of Federal, named the first “Special K” after a nickname from his two sons. Svante Eriksson, AIS payload captain, named the second “Svante-Amanda” for himself and his wife.

About Spire Global, Inc.

Spire is a global provider of space-based data and analytics that offers unique datasets and powerful insights about Earth from the ultimate vantage point – space – so organizations can make decisions with confidence, accuracy, and speed. Spire uses the largest multi-purpose satellite constellation to source hard to acquire, valuable data and enriches it with predictive solutions. Spire then provides this data as a subscription to organizations around the world so they can improve business operations, decrease their environmental footprint, deploy resources for growth and competitive advantage, and mitigate risk. Spire gives commercial and government organizations the competitive advantage they seek to innovate and solve some of the world’s toughest problems with insights from space. Spire has offices in San Francisco, CA, Boulder, CO, Washington DC, Glasgow, Luxembourg, and Singapore. On March 1, 2021 Spire announced plans to go public through a planned business combination with NavSight Holdings, Inc. (NYSE: NSH), to be traded on the NYSE under the ticker symbol “SPIR.” To learn more, visit spire.com.

About NavSight Holdings, Inc.

NavSight Holdings, Inc. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. NavSight was organized with the opportunity to pursue a business combination target in any business or industry, with the intent to focus its search on identifying a prospective target business that provides expertise and technology to U.S. government customers in support of their national security, intelligence and defense missions.

Additional Information and Where to Find It

In connection with the planned business combination with Spire (the “Proposed Transaction”), NavSight intends to file a Form S-4 Registration Statement (the “Registration Statement”) with the SEC, which will include a preliminary proxy statement to be distributed to holders of NavSight’s common stock in connection with NavSight’s solicitation of proxies for the vote by NavSight’s stockholders with respect to the Proposed Transaction and other matters as described in the Registration Statement, a prospectus relating to the offer of the securities to be issued to the Company’s stockholders in connection with the Proposed Transaction, and an information statement to Company’s stockholders regarding the Proposed Transaction. After the Registration Statement has been filed and declared effective, NavSight will mail a definitive proxy statement/prospectus, when available, to its stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, any amendments thereto and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about NavSight, the Company and the Proposed Transaction. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by NavSight through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: NavSight Holdings, Inc., 12020 Sunrise Valley Drive, Suite 100, Reston, VA 20191.

Participants in Solicitation

NavSight and the Company and their respective directors and certain of their respective executive officers and other members of management and employees may be considered participants in the solicitation of proxies with respect to the Proposed Transaction. Information about the directors and executive officers of NavSight is set forth in its Form 10-K filed on March 29, 2021. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Registration Statement and other relevant materials to be filed with the SEC regarding the Proposed Transaction when they become available. Stockholders, potential investors and other interested persons should read the Registration Statement carefully when it becomes available before making any voting or investment decisions. When available, these documents can be obtained free of charge from the sources indicated above.

No Offer or Solicitation

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of the federal securities laws with respect to the Proposed Transaction. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding expectations of expanding Spire’s rapidly growing data capture capabilities and strengthening its operational capacity, expectations of accelerating Spire’s sales and marketing efforts,, the strengthening of Spire’s competitive advantage, the expansion of Spire’s business to new customers, regions and markets, Spire’s future growth, estimates and forecasts of financial and performance metrics, expectations of achieving and maintaining profitability, projections of total addressable markets, market opportunity and market share, net proceeds from the Proposed Transactions, potential benefits of the Proposed Transaction and the potential success of the Company’s market and growth strategies, and expectations related to the terms and timing of the Proposed Transaction. These statements are based on various assumptions and on the current expectations of NavSight’s and the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of NavSight and the Company. These forward-looking statements are subject to a number of risks and uncertainties, including (i) the risk that the Proposed Transaction may not be completed in a timely manner or at all, which may adversely affect the price of NavSight’s securities; (ii) the risk that the Proposed Transaction may not be completed by NavSight’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by NavSight; (iii) the failure to satisfy the conditions to the consummation of the Proposed Transaction, including the approval of the Proposed Transaction by the stockholders of NavSight, the satisfaction of the minimum trust account amount following any redemptions by NavSight’s public stockholders and the receipt of certain governmental and regulatory approvals; (iv) the inability to complete the PIPE investment in connection with the Proposed Transaction; (v) the failure to realize the anticipated benefits of the Proposed Transaction; (vi) the effect of the announcement or pendency of the Proposed Transaction on Spire’s business relationships, performance, and business generally; (vii) risks that the Proposed Transaction disrupts current plans of Spire and potential difficulties in Spire employee retention as a result of the Proposed Transaction; (viii) the outcome of any legal proceedings that may be instituted against NavSight or Spire related to the business combination agreement or the Proposed Transaction; (ix) the ability to maintain the listing of NavSight’s securities on the New York Stock Exchange; (x) the ability to address the market opportunity for Space-as-a-Service; (xi) the risk that the Proposed Transaction may not generate expected net proceeds to the combined company; (xii) the ability to implement business plans, forecasts, and other expectations after the completion of the Proposed Transaction, and identify and realize additional opportunities; (xiii) the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; (xiv) the risk of downturns, new entrants and a changing regulatory landscape in the highly competitive space data analytics industry; and those factors discussed in NavSight’s final prospectus filed on September 11, 2020 under the heading “Risk Factors,” and other documents of NavSight filed, or to be filed, with the SEC. If any of these risks materialize or the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither NavSight nor the Company presently know or that NavSight and the Company currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect NavSight’s and the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. NavSight and the Company anticipate that subsequent events and developments will cause NavSight’s and the Company’s assessments to change. However, while NavSight and the Company may elect to update these forward-looking statements at some point in the future, NavSight and the Company specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing NavSight’s and the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005359/en/

For Spire Global, Inc.:

Investor Contact:

Michael Bowen and Ryan Gardella

[email protected]

Media Contact:

Phil Denning

[email protected]

For NavSight Holdings, Inc.:

Investor Contact:

Jack Pearlstein

[email protected]

KEYWORDS: United States North America California Virginia

INDUSTRY KEYWORDS: Aerospace Manufacturing Other Manufacturing Science Research

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Posted on May 4, 2021 7:03 am
Garmin Autoland autonomous flight technology continues to capture international media and customer attention

Garmin Autoland autonomous flight technology continues to capture international media and customer attention

Revolutionary technology receives esteemed accolades and pilot praise

OLATHE, Kan.–(BUSINESS WIRE)–
Garmin^® International Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), today announced an increasing number of nominations, honors and accolades for Garmin Autoland, the world’s first certified autonomous flight technology system of its kind. Garmin Autoland made history in 2020 when it achieved Federal Aviation Administration (FAA) certification, as well as certification from the European Union Aviation Safety Agency (EASA). Garmin Autoland was also recently selected as a 2020 Robert J. Collier Trophy finalist by the National Aeronautic Association (NAA), with the winner to be announced in June.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210504005262/en/

Part of the Garmin Autonomi™ family of autonomous safety-enhancing technologies for aircraft, Autoland is the world’s first certified system of its kind with the ability to activate during an emergency situation to autonomously control and land an aircraft without human intervention. (Photo: Business Wire)

“As we approach the one-year anniversary of Autoland’s first certification, it is a true honor to receive the praise and admiration from so many esteemed industry and consumer publications globally,” said Phil Straub, Garmin executive vice president and managing director, aviation. “The recognition earned by Garmin Autoland embodies the overall innovative and entrepreneurial spirit Garmin is known for and reinforces our steadfast commitment to design products and technologies that make flying safer for all.”

Part of the Garmin Autonomi^™ family of autonomous safety-enhancing technologies for aircraft, Autoland is the world’s first certified system of its kind with the ability to activate during an emergency situation to autonomously control and land an aircraft without human intervention¹. In the event of an emergency, such as pilot incapacitation, a passenger on board can activate Autoland to land the aircraft with a simple press of a dedicated button. Autoland can also activate automatically if the system determines it’s necessary. Once activated, the system immediately calculates a flight path to the most suitable airport and runway – while avoiding terrain and adverse weather – initiates an approach and automatically lands the aircraft.

As a result of its achievements, Garmin has been recognized with multiple honors for its development of Autoland, further highlighting this significant accomplishment in aviation history. These honors and accolades include:

Aerokurier, 2020 Reader’s Choice Award – first place in avionics

Aviation Consumer, 2020Gear of the Year

Aviation International News (AIN), 2020 Top Flight Award, Contribution to Safety

Aviation Week, 2020 Grand Laureate Award, Business Aviation

Aviation Week, 2020 Laureate Award, Business Aviation Safety

Fast Company, 2020 World Changing Ideas Award

Transportation category – finalist

Best World Changing Idea Award in North America – honoree

Flieger Magazine, 2020 Innovation of the Year

FLYING Magazine, 2021 Editors’ Choice Award

Kansas City Tech Council, 2020 No Coast Award,Outstanding Contribution to Tech

Plane & Pilot, 2020 Editor’s Choice Award

Popular Science, 2020 Best of What’s New Award, Aerospace Category

Robb Report, 2020 Best of the Best Award – cockpit technology

In addition to international media accolades, Garmin Autoland has received the praise of customers flying with this technology today. Rob, a Garmin Autoland customer and pilot, is passionate about the technology as he and his wife regularly fly with their grandchildren and family on board the aircraft. In a recent interview, Rob explained why he chose Garmin Autoland: “With Garmin Autoland, I fly with more confidence. It’s an assurance for me and my family that they’ll be safe and that they have a good and legitimate option for surviving an emergency situation.”

Piper Aircraft received the first FAA Type Certification of Garmin Autoland on the G3000^® equipped M600/SLS in May 2020 and subsequently received EASA certification in April 2021. In, July 2020 Daher completed the first EASA certification and the second FAA certification of Autoland on the G3000^® equipped TBM 940. Cirrus Aircraft certified the first jet aircraft with Autoland in August 2020, the Vision Jet equipped with Perspective Touch+. For additional information about Autoland and the Garmin Autonomi family of autonomous flight technologies, visit www.garmin.com/Autonomi.

Garmin’s aviation business segment is a leading provider of solutions to OEM, aftermarket, military and government customers. Garmin’s portfolio includes navigation, communication, flight control, hazard avoidance, an expansive suite of ADS-B solutions and other products and services that are known for innovation, reliability, and value. For more information, visit Garmin’s virtual pressroom at garmin.com/newsroom, contact the Media Relations department at [email protected], or follow us at facebook.com/garminaviation, twitter.com/garminaviation, instagram.com/garminaviation or youtube.com/garminaviation.

^{1.See Garmin.com/ALuse for Autoland system requirements and limitations}^.

About Garmin International, Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin and G3000 are registered trademarks and Autonomi is a trademark of Garmin Ltd. or its subsidiaries.

All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Notice on Forward-Looking Statements:

This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 26, 2020, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at https://www.garmin.com/en-US/company/investors/earnings/. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005262/en/

Conor McDougall

913-397-8200

[email protected]

KEYWORDS: United States North America Kansas

INDUSTRY KEYWORDS: Data Management Communications Air Technology Transport Software Public Relations/Investor Relations

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Part of the Garmin Autonomi™ family of autonomous safety-enhancing technologies for aircraft, Autoland is the world’s first certified system of its kind with the ability to activate during an emergency situation to autonomously control and land an aircraft without human intervention. (Photo: Business Wire)

Posted on May 4, 2021 7:03 am
LCI Industries Reports Record First Quarter Results

LCI Industries Reports Record First Quarter Results

Continuing to meet strong industry demand to drive Company-wide growth

First Quarter 2021 Highlights

Net sales of $1.0 billion in the first quarter, an increase of 52% year-over-year

Net income increased $45.9 million, or 163%, to $74.1 million, or $2.93 per diluted share, in the first quarter

Adjusted EBITDA increased $50.8 million, or 68%, to $125.9 million in the first quarter

North American RV OEM sales grew to $526.0 million in the first quarter, up 59% year-over-year, driven by record wholesale and retail demand for the quarter

RV industry record 54,300 wholesale shipments in March and record 148,500 shipments in the first quarter

Adjacent Industries OEM sales grew to $250.6 million in the first quarter, up 34% year-over-year

Aftermarket Segment sales grew to $184.0 million in the first quarter, up 45% year-over-year

Net sales from the fourth quarter 2020 acquisitions of Veada Industries, Inc. and Challenger Door, LLC contributed a combined $41 million in the first quarter

Quarterly dividend of $0.75 per share paid totaling $18.9 million

ELKHART, Ind.–(BUSINESS WIRE)–
LCI Industries (NYSE: LCII) which, through its wholly-owned subsidiary, Lippert Components, Inc. (“Lippert”), supplies a broad array of highly engineered components for the leading original equipment manufacturers (“OEMs”) in the recreation and transportation product markets, and the related aftermarkets of those industries, today reported first quarter 2021 results.

“We achieved a record $1 billion in revenue during the first quarter 2021, which is a watershed moment for Lippert and an extraordinary accomplishment considering the significant labor and supply chain headwinds the industry has faced. Our team’s agility, combined with our robust operational capabilities, allowed us to capitalize on the extraordinary demand across the outdoor recreation space to capture new growth opportunities and expand market share. At the same time, we amplified our efforts to deliver innovative products and enhance the customer experience, solidifying our position as a best-in-class supplier within the outdoor recreational community,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer. “The wave of customers continuing to stream into the RV lifestyle is fueling one of the largest replacement cycles the industry has ever seen. This will undoubtedly serve as an additional tailwind to our already successful and fast-growing aftermarket business, which has nearly tripled in size over the last three years. Given the millions of RVs entering the parts replacement cycle, we remain confident that this will continue to propel our aftermarket business over the next several years.”

“With heightened retail demand showing no signs of slowing and a long runway to get dealer inventories back to more normalized levels, Lippert is incredibly well-positioned as we move through 2021 and beyond. Our results over the last several quarters are a true testament to the strength of our leadership, team, and culture in withstanding operational turbulence and delivering superior performance,” continued Lippert. “I would like to thank all Lippert team members for their hard work in continuing to propel our business forward to drive value for our shareholders.”

First Quarter 2021 Results

Consolidated net sales for the first quarter of 2021 were $1.0 billion, an increase of 52 percent from 2020 first quarter net sales of $659.7 million. Net income in the first quarter of 2021 was $74.1 million, or $2.93 per diluted share, compared to net income of $28.2 million, or $1.12 per diluted share, in the first quarter of 2020. Adjusted EBITDA in the first quarter of 2021 was $125.9 million, compared to adjusted EBITDA of $75.1 million in the first quarter of 2020. Additional information regarding adjusted EBITDA, as well as a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, are provided in the “Supplementary Information – Reconciliation of Non-GAAP Measures” section below.

The increase in year-over-year net sales for the first quarter of 2021 was primarily driven by record RV retail demand and strong Aftermarket sales growth. Net sales from acquisitions completed in 2020 and 2021 contributed approximately $41 million in the first quarter of 2021. Additionally, the start of the pandemic in the first quarter of 2020 had a negative impact on sales in that quarter.

The Company’s average product content per travel trailer and fifth-wheel RV, adjusted to remove Furrion sales from prior periods, for the twelve months ended March 31, 2021, increased $122 to $3,476, compared to $3,354 for the twelve months ended March 31, 2020. The content increase in towables was a result of organic growth, including new product introductions.

April 2021 Results

April 2021 consolidated net sales were approximately $365 million, up 522 percent fromApril 2020, as RV production increased significantly to meet elevated RV retail demand, and prior year comparative net sales were negatively impacted by COVID-19 shut-downs.

Balance Sheet and Other Items

At March 31, 2021, the Company’s cash and cash equivalents balance was $63.3 million, up from $51.8 million at December 31, 2020. The Company generated net cash flows from operations of $4.8 million and used $2.8 million for acquisitions, $18.9 million for dividend payments to shareholders, and $21.0 million for capital expenditures in the three months ended March 31, 2021. Cash flows from operations were negatively impacted by strategic investments in working capital to support record demand and mitigate future supply chain disruptions. The Company’s outstanding long-term indebtedness, including current maturities, was $793.8 million at March 31, 2021, and the Company remained in compliance with its debt covenants. The Company believes that its current liquidity is adequate to meet operating needs for the foreseeable future.

Conference Call & Webcast

Lippert will host a conference call to discuss its first quarter results on Tuesday, May 4, 2021, at 8:30 a.m. Eastern time, which may be accessed by dialing (877) 668-4883 for participants in the U.S./Canada or (825) 312-2360 for participants outside the U.S./Canada using the required conference ID 5717208. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call. In addition, an online, real-time webcast, as well as a supplemental earnings presentation, can be accessed on the Company’s website, www.investors.lci1.com.

A replay of the conference call will be available for two weeks by dialing (800) 585-8367 for participants in the U.S./Canada or (416) 621-4642 for participants outside the U.S./Canada and referencing access code 5717208. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.

About LCI Industries

LCI Industries, through its wholly-owned subsidiary, Lippert, supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation and transportation product markets, consisting primarily of recreational vehicles and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors, and service centers. Lippert’s products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; and other accessories. Additional information about Lippert and its products can be found at www.lci1.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” with respect to our financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company’s common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to our future business prospects, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, retail and wholesale demand, integration of acquisitions, R&D investments, and industry trends, whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company’s senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, the impacts of COVID-19, or other future pandemics, on the global economy and on the Company’s customers, suppliers, employees, business and cash flows, pricing pressures due to domestic and foreign competition, costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and in the Company’s subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

LCI INDUSTRIES

OPERATING RESULTS

(unaudited)

Three Months Ended

March 31,

Last Twelve

2021

2020

Months

(In thousands, except per share amounts)

Net sales

$

1,000,258

$

659,670

$

3,136,754

Cost of sales

758,481

501,065

2,347,492

Gross profit

241,777

158,605

789,262

Selling, general and administrative expenses

140,346

114,339

509,163

Operating profit

101,431

44,266

280,099

Interest expense, net

2,705

5,197

10,961

Income before income taxes

98,726

39,069

269,138

Provision for income taxes

24,606

10,855

64,792

Net income

$

74,120

$

28,214

$

204,346

Net income per common share:

Basic

$

2.94

$

1.13

$

8.12

Diluted

$

2.93

$

1.12

$

8.07

Weighted average common shares outstanding:

Basic

25,193

25,075

25,171

Diluted

25,325

25,143

25,308

Depreciation and amortization

$

24,516

$

24,614

$

97,882

Capital expenditures

$

20,957

$

7,955

$

70,348

LCI INDUSTRIES

SEGMENT RESULTS

(unaudited)

Three Months Ended

March 31,

Last Twelve

2021

2020

Months

(In thousands)

Net sales:

OEM Segment:

RV OEMs:

Travel trailers and fifth-wheels

$

503,016

$

307,108

$

1,517,475

Motorhomes

62,593

38,087

182,602

Adjacent Industries OEMs

250,641

187,162

751,727

Total OEM Segment net sales

816,250

532,357

2,451,804

Aftermarket Segment:

Total Aftermarket Segment net sales

184,008

127,313

684,950

Total net sales

$

1,000,258

$

659,670

$

3,136,754

Operating profit:

OEM Segment

$

79,287

$

43,189

$

192,190

Aftermarket Segment ⁽¹⁾

22,144

1,077

87,909

Total operating profit

$

101,431

$

44,266

$

280,099

Depreciation and amortization:

OEM Segment depreciation

$

12,188

$

12,060

$

47,892

Aftermarket Segment depreciation

2,996

3,140

12,200

Total depreciation

$

15,184

$

15,200

$

60,092

OEM Segment amortization

$

6,452

$

6,423

$

26,353

Aftermarket Segment amortization

2,880

2,991

11,437

Total amortization

$

9,332

$

9,414

$

37,790

⁽¹⁾Results for the three months ended March 31, 2020 include a non-cash charge for inventory fair value step-up of $6.2 million related to CURT purchase accounting.

LCI INDUSTRIES

BALANCE SHEET INFORMATION

(unaudited)

March 31,

December 31,

2021

2020

(In thousands)

ASSETS

Current assets

Cash and cash equivalents

$

63,319

$

51,821

Accounts receivable, net of allowances of $6,478 and $5,642 at March 31, 2021 and December 31, 2020, respectively

405,395

268,625

Inventories, net

535,056

493,899

Prepaid expenses and other current assets

64,410

55,456

Total current assets

1,068,180

869,801

Fixed assets, net

392,713

387,218

Goodwill

454,382

454,728

Other intangible assets, net

407,599

420,885

Operating lease right-of-use assets

121,789

104,179

Other assets

55,810

61,220

Total assets

$

2,500,473

$

2,298,031

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Current maturities of long-term indebtedness

$

67,154

$

17,831

Accounts payable, trade

232,481

184,931

Current portion of operating lease obligations

24,794

25,432

Accrued expenses and other current liabilities

210,559

188,200

Total current liabilities

534,988

416,394

Long-term indebtedness

726,608

720,418

Operating lease obligations

101,677

82,707

Deferred taxes

55,563

53,833

Other long-term liabilities

122,050

116,353

Total liabilities

1,540,886

1,389,705

Total stockholders’ equity

959,587

908,326

Total liabilities and stockholders’ equity

$

2,500,473

$

2,298,031

LCI INDUSTRIES

SUMMARY OF CASH FLOWS

(unaudited)

Three Months Ended

March 31,

2021

2020

(In thousands)

Cash flows from operating activities:

Net income

$

74,120

$

28,214

Adjustments to reconcile net income to cash flows provided by operating activities:

Depreciation and amortization

24,516

24,614

Stock-based compensation expense

7,436

3,295

Other non-cash items

1,318

(2,231

)

Changes in assets and liabilities, net of acquisitions of businesses:

Accounts receivable, net

(139,245

)

(74,776

)

Inventories, net

(41,170

)

40,883

Prepaid expenses and other assets

(3,328

)

6,350

Accounts payable, trade

49,644

31,878

Accrued expenses and other liabilities

31,556

(13,468

)

Net cash flows provided by operating activities

4,847

44,759

Cash flows from investing activities:

Capital expenditures

(20,957

)

(7,955

)

Acquisitions of businesses, net of cash acquired

(2,779

)

(95,766

)

Other investing activities

(605

)

1,972

Net cash flows used in investing activities

(24,341

)

(101,749

)

Cash flows from financing activities:

Vesting of stock-based awards, net of shares tendered for payment of taxes

(7,767

)

(4,517

)

Proceeds from revolving credit facility

208,863

247,154

Repayments under revolving credit facility

(141,489

)

(102,330

)

Repayments under term loan and other borrowings

(3,889

)

(3,750

)

Payment of dividends

(18,939

)

(16,321

)

Payment of contingent consideration and holdbacks related to acquisitions

(2,792

)

—

Other financing activities

—

(391

)

Net cash flows provided by financing activities

33,987

119,845

Effect of exchange rate changes on cash and cash equivalents

(2,995

)

(215

)

Net increase in cash and cash equivalents

11,498

62,640

Cash and cash equivalents at beginning of period

51,821

35,359

Cash and cash equivalents cash at end of period

$

63,319

$

97,999

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

(unaudited)

Three Months Ended

March 31,

Last Twelve

2021

2020

Months

Industry Data⁽¹⁾(in thousands of units):

Industry Wholesale Production:

Travel trailer and fifth-wheel RVs

131.2

88.0

423.2

Motorhome RVs

14.3

10.1

44.9

Industry Retail Sales:

Travel trailer and fifth-wheel RVs

96.9

⁽²⁾

74.8

474.7

⁽²⁾

Impact on dealer inventories

34.3

⁽²⁾

13.2

(51.5

)

⁽²⁾

Motorhome RVs

9.0

⁽²⁾

8.9

44.4

⁽²⁾

Twelve Months Ended

March 31,

2021

2020

Lippert Content Per Industry Unit Produced: ⁽³⁾

Travel trailer and fifth-wheel RV

$

3,476

$

3,354

Motorhome RV

$

2,525

$

2,327

March 31,

December 31,

2021

2020

2020

Balance Sheet Data (debt availability in millions):

Remaining availability under the debt facilities ⁽⁴⁾

$

292.4

$

341.7

$

352.2

Days sales in accounts receivable, based on last twelve months

31.4

26.6

31.6

Inventory turns, based on last twelve months

5.8

5.5

5.7

2021

Estimated Full Year Data:

Capital expenditures

$130 – $150 million

Depreciation and amortization

$100 – $110 million

Stock-based compensation expense

$20 – $30 million

Annual tax rate

24% – 26%

⁽¹⁾ Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association. Industry retail sales data provided by Statistical Surveys, Inc.

⁽²⁾ March 2021 retail sales data for RVs has not been published yet, therefore 2021 retail data for RVs includes an estimate for March 2021 retail units. Retail sales data will likely be revised upwards in future months as various states report.

⁽³⁾ The content figures presented were adjusted to remove Furrion sales from prior periods, as the Furrion distribution and supply agreement was terminated effective December 31, 2019.

⁽⁴⁾ Remaining availability under the debt facilities is subject to covenant restrictions and, in the case of $150 million of such availability, the lender’s discretion.

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

RECONCILIATION OF NON-GAAP MEASURES

(unaudited)

The following table reconciles net income to adjusted net income and diluted net income per common share to adjusted diluted net income per common share.

Three Months Ended March 31,

2021

2020

(In thousands, except per share amounts)

Net income

$

74,120

$

28,214

Non-cash charge for inventory fair value step-up

—

6,243

Income tax impact of inventory fair value step-up

—

(1,518

)

Adjusted net income

$

74,120

$

32,939

Diluted net income per common share

$

2.93

$

1.12

Non-cash charge for inventory fair value step-up

—

0.25

Income tax impact of inventory fair value step-up

—

(0.06

)

Adjusted diluted net income per common share

$

2.93

$

1.31

The following table reconciles net income to EBITDA and Adjusted EBITDA.

Three Months Ended March 31,

2021

2020

(In thousands)

Net income

$

74,120

$

28,214

Interest expense, net

2,705

5,197

Provision for income taxes

24,606

10,855

Depreciation expense

15,184

15,200

Amortization expense

9,332

9,414

EBITDA

125,947

68,880

Non-cash charge for inventory fair value step-up

—

6,243

Adjusted EBITDA

$

125,947

$

75,123

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measures of adjusted net income, adjusted diluted net income per common share, and adjusted EBITDA to illustrate and improve comparability of its results from period to period. Adjusted net income is defined as net income adjusted for items that impact the comparability of the Company’s results from period to period, which consisted of the inventory fair value step-up from the acquisition of CURT and related tax impacts during the three month period ended March 31, 2020. Adjusted diluted net income per common share is defined as net income per common share adjusted for items that impact the comparability of the Company’s results from period to period, which consisted of the inventory fair value step-up from the acquisition of CURT and related tax impacts during the three month period ended March 31, 2020. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation and amortization expense, and other adjustments made in order to present comparable results from period to period, which consisted of the inventory fair value step-up from the acquisition of CURT during the three month period ended March 31, 2020. The Company considers these non-GAAP measures in evaluating and managing the Company’s operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005221/en/

Brian Hall, CFO

Phone: (574) 535-1125

E Mail: [email protected]

KEYWORDS: United States North America Indiana

INDUSTRY KEYWORDS: Other Manufacturing Aftermarket Steel Automotive Engineering Automotive Manufacturing Recreational Vehicles Manufacturing

MEDIA:

Posted on May 4, 2021 7:03 am
Global Payments Renews Agreement with Barclays US Consumer Bank

Global Payments Renews Agreement with Barclays US Consumer Bank

ATLANTA–(BUSINESS WIRE)–
Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology and software solutions, today announced it has renewed its agreement with Barclays US Consumer Bank, a subsidiary of the UK-based worldwide financial services provider Barclays.

Through its TSYS Issuer Solutions segment, Global Payments will continue to provide a wide range of processing and support services for Barclays consumer and commercial credit card portfolios. Additionally, Barclays will also utilize TSYS Foresight Score, the award-winning fraud solution predicated on the use of adaptive machine learning to stay ahead of constantly changing fraud activity.

“We view this partnership as a vital part of our effort to drive digital enablement throughout our business,” said Danny Nealon, Chief Executive Officer, Barclays US Consumer Bank. “Global Payments’ commitment to innovation — coupled with our proven track record of success — made this the right choice for our business as we accelerate our efforts to provide innovative products and services that our partners and customers have come to expect.”

“Our partnership with Barclays is a testament to Global Payments’ market leading digital technologies,” said Gaylon Jowers, President, TSYS Issuer Solutions and Senior Executive Vice President, Global Payments. “As we advance our cutting-edge solutions and expand our cloud-native technologies, we are confident we will enable Barclays to deliver best-in-class customer experiences with unparalleled levels of security and resiliency. We look forward to providing Barclays with innovation that delivers for many years to come.”

Terms of the long-term agreement were not disclosed.

About Global Payments

Global Payments Inc. (NYSE: GPN) is a leading pure play payments technology company delivering innovative software and services to our customers globally. Our technologies, services and employee expertise enable us to provide a broad range of solutions that allow our customers to operate their businesses more efficiently across a variety of channels around the world.

Headquartered in Georgia with nearly 24,000 employees worldwide, Global Payments is a member of the S&P 500 with worldwide reach spanning over 100 countries throughout North America, Europe, Asia Pacific and Latin America. For more information, visit www.globalpayments.com and follow Global Payments on Twitter (@globalpayinc), LinkedIn and Facebook.

About Barclays

Barclays US Consumer Bank is a leading co-branded credit card issuer and financial services partner in the United States that creates highly customized programs to drive customer loyalty and engagement for some of the country’s most successful travel, entertainment, retail and affinity institutions. The bank offers co-branded credit cards, small business credit cards, installment loans, point-of-sale financing, online savings accounts, and CDs. For more information, please visit www.BarclaysUS.com.

Barclays is a British universal bank. We are diversified by business, by different types of customer and client, and geography. Our businesses include consumer banking and payments operations around the world, as well as a top-tier, full service, global corporate and investment bank, all of which are supported by our service company which provides technology, operations and functional services across the Group. Barclays offers investment banking products and services in the US through Barclays Capital Inc. For further information about Barclays, please visit home.barclays.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005211/en/

Investor Contact:

Winnie Smith 770.829.8478

[email protected]

Media Contact:

Emily Edmonds 770.829.8755

[email protected]

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Professional Services Data Management Technology Finance Software Banking

MEDIA:

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Posted on May 4, 2021 7:03 am
Rockwell Automation to Present at Goldman Sachs Industrials and Materials Conference

Rockwell Automation to Present at Goldman Sachs Industrials and Materials Conference

MILWAUKEE–(BUSINESS WIRE)–
Rockwell Automation (NYSE: ROK) Chairman and CEO, Blake Moret, and SVP and Chief Financial Officer, Nick Gangestad, will present at the Goldman Sachs Industrials and Materials Virtual Conference on Tuesday, May 11, 2021.

The fireside chat will be webcast beginning at approximately 7:50 a.m. Central Time and will be available on the Rockwell Automation Investor Relations website at www.rockwellautomation.com/en-us/investors.html.

About Rockwell Automation

Rockwell Automation (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 24,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005239/en/

Jessica Kourakos

Head of Investor Relations

+1 414-382-8510

[email protected]

Marci Pelzer

Director, External Communications

+1 414-553-4661

[email protected]

KEYWORDS: Wisconsin United States North America

INDUSTRY KEYWORDS: Software Networks Internet Electronic Design Automation Data Management General Automotive Technology Automotive Other Manufacturing Engineering Automotive Manufacturing Other Technology Manufacturing

MEDIA:

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Posted on May 4, 2021 7:03 am
ConocoPhillips Reports First-Quarter 2021 Results; Declares Quarterly Dividend; Announces Debt-Reduction Plan and Intention to Begin Sales of Cenovus Shares with Proceeds to Fund Incremental Buybacks; Schedules Midyear Market Update

ConocoPhillips Reports First-Quarter 2021 Results; Declares Quarterly Dividend; Announces Debt-Reduction Plan and Intention to Begin Sales of Cenovus Shares with Proceeds to Fund Incremental Buybacks; Schedules Midyear Market Update

HOUSTON–(BUSINESS WIRE)–
ConocoPhillips (NYSE: COP) today reported first-quarter 2021 earnings of $1.0 billion, or $0.75 per share, compared with a first-quarter 2020 loss of $1.7 billion, or ($1.60) per share. Excluding special items, first-quarter 2021 adjusted earnings were $0.9 billion, or $0.69 per share, compared with first-quarter 2020 adjusted earnings of $0.5 billion, or $0.45 per share. Special items for the current quarter included an unrealized gain on Cenovus Energy shares and a gain associated with the Australia-West divestiture following the buyer’s final investment decision on the Barossa development project. Partially offsetting these benefits were previously announced transaction and restructuring expenses related to the acquisition of Concho and realized losses on the Concho hedging program related to positions for which the company accelerated settlement into the first quarter, in addition to deferred tax adjustments.

First-Quarter Highlights and Recent Announcements

Completed the Concho acquisition, enhancing both our asset portfolio and financial framework.

Cash provided by operating activities and cash from operations (CFO) of $2.1 billion, exceeded capital expenditures and investments of $1.2 billion, generating free cash flow (FCF) of $0.9 billion.

CFO and FCF include approximately $1.0 billion of cash outflows from previously announced one-time items in connection with the Concho acquisition.

Produced 1,488 MBOED excluding Libya during the first quarter despite incurring approximately 50 MBOED of unplanned production downtime throughout Lower 48 caused by Winter Storm Uri.

Ended the quarter with cash, cash equivalents and restricted cash totaling $3.2 billion and short-term investments of $4.1 billion, equaling $7.3 billion in ending cash and short-term investments.

Resumed the share repurchase program at an annualized level of $1.5 billion.

Distributed $0.6 billion in dividends and repurchased $0.4 billion of shares.

Recognized by the Dow Jones Sustainability Index as the top U.S. ESG performer in the Oil and Gas Upstream and Integrated sector.

Reaffirmed commitment to preserving a top-tier balance sheet with intent to reduce the company’s gross debt by $5 billion over the next five years, driving a more resilient and efficient capital structure.

Announced plans to sell its Cenovus Energy shares in the open market in a disciplined manner by year-end 2022 beginning in the second quarter of 2021, utilizing the proceeds to fund incremental ConocoPhillips share repurchases.

“The first quarter was a momentous one for ConocoPhillips with the closing of the Concho transaction, the better-than-expected pace and progress of integration activities companywide and the safe response to Winter Storm Uri,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “Our entire organization is focused on improving every aspect of our underlying business to make us the most competitive company in the industry: capturing additional synergies, lowering our sustaining price, increasing capital efficiency, generating free cash flow, strengthening our balance sheet, consistently delivering peer-leading return of capital to our owners and lowering emissions. These are the essential keys to long-term success in the business. We look forward to providing an update on our progress in June.”

Quarterly Dividend

ConocoPhillips announced a quarterly dividend of 43 cents per share, payable June 1, 2021, to stockholders of record at the close of business on May 14, 2021.

First-Quarter Review

Production excluding Libya for the first quarter of 2021 was 1,488 thousand barrels of oil equivalent per day (MBOED), an increase of 210 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, first-quarter 2021 production decreased 59 MBOED or 4% from the same period a year ago. This decrease was primarily due to normal field decline and production impacts from Winter Storm Uri, partially offset by new production from the Lower 48 and other development programs across the portfolio. Production from Libya averaged 39 MBOED.

In the Lower 48, production averaged 715 MBOED, including 405 MBOED from the Permian, 187 MBOED from the Eagle Ford and 86 MBOED from the Bakken. Weather-related impacts totaled approximately 50 MBOED throughout the Lower 48 with production fully restored in March. In Alaska, drilling at CD5 continued and progress was made on GMT2 infrastructure in advance of planned drilling in the second quarter. In Canada, we started up the third Montney pad and completed appraisal drilling on the fourth pad. At Surmont we continue experiencing positive results from non-condensable gas injection and we initiated a steam additives injection pilot intended to reduce emissions and costs. In Norway, Tor II drilling was completed and three additional wells brought on line during the quarter. In Malaysia, first oil was achieved at Malikai Phase 2.

Earnings increased from first-quarter 2020 due to an increase in Cenovus Energy equity market value and higher realized prices. Excluding special items, adjusted earnings were higher compared with first-quarter 2020 due to higher realized prices and higher volumes, partially offset by increased depreciation expense and operating costs associated with the higher volumes. The company’s total average realized price was $45.36 per BOE, 17% higher than the $38.81 per BOE realized in the first quarter of 2020, reflecting higher marker prices and Winter Storm Uri’s impacts on gas realizations.

For the quarter, cash provided by operating activities and CFO was $2.1 billion. CFO included a reduction of approximately $1.0 billion associated with transaction and restructuring expenses and realized losses on the commodity hedging portfolio acquired from Concho. The company has now settled all oil and gas hedging positions acquired from Concho. The company funded $1.2 billion of capital expenditures and investments, paid $0.6 billion in dividends, repurchased $0.4 billion of shares, reported $0.5 billion in net purchases of investments in financial instruments and increased cash by $0.4 billion resulting from the Concho acquisition.

Outlook

Second-quarter 2021 production excluding Libya is expected to be 1.50 to 1.54 MMBOED, reflecting the impact of seasonal turnarounds planned in Europe and the Asia Pacific region. All other guidance items are unchanged.

ConocoPhillips owns approximately 10% of Cenovus Energy (CVE) common shares, acquired as partial consideration in the 2017 disposition of the company’s Foster Creek Christina Lake (FCCL) oil sands and western Canada Deep Basin natural gas assets. ConocoPhillips intends to sell its Cenovus shares in the open market beginning in the second quarter of 2021 and expects to complete the sale process by the fourth quarter of 2022, utilizing the proceeds to fund incremental repurchases of ConocoPhillips shares. The sales pace will be guided by market conditions with ConocoPhillips retaining discretion to adjust accordingly.

The company plans to reduce gross debt by $5 billion over the next five years, reaffirming its commitment to preserving its strong balance sheet while further reducing its sustaining price. The pace of debt reduction will be determined by market conditions.

ConocoPhillips will accelerate its previously planned November 2021 market update to June 30, 2021. Further information about the virtual meeting will soon be made available on the company’s website.

ConocoPhillips will host a conference call today at 12:00 p.m. Eastern time to discuss this announcement. To listen to the call and view related presentation materials and supplemental information, go to www.conocophillips.com/investor. A recording and transcript of the call will be posted afterward.

— # # # —

About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 15 countries, $84 billion of total assets, and approximately 10,300 employees at March 31, 2021. Production excluding Libya averaged 1,488 MBOED for the three months ended March 31, 2021, and proved reserves were 4.5 BBOE as of Dec. 31, 2020. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to liquidate the common stock issued to us by Cenovus Energy Inc. at prices we deem acceptable, or at all; our ability to complete our announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for our announced or any future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of the transactions or our remaining business; business disruptions during or following our announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related to our transaction with Concho Resources Inc. (Concho); the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions; the ability to successfully integrate the operations of Concho with our operations and achieve the anticipated benefits from the transaction; unanticipated difficulties or expenditures relating to the Concho transaction; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from extraordinary weather events, civil unrest, war, terrorism or a cyber attack; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use the term “resource” in this news release that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.

Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this news release and the accompanying supplemental financial information contain certain financial measures that are not prepared in accordance with GAAP, including adjusted earnings (calculated on a consolidated and on a segment-level basis), adjusted earnings per share, cash from operations (CFO), free cash flow (FCF), operating costs.

The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis) and operating costs are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes FCF is useful to investors in understanding how existing cash from operations is utilized as a source for sustaining our current capital plan and future development growth. FCF is not a measure of cash available for discretionary expenditures since the company has certain non-discretionary obligations such as debt service that are not deducted from the measure.Adjusted earnings is defined as net income (loss) attributable to ConocoPhillips adjusted for the impact of special items that do not directly relate to the company’s core business operations, or are of an unusual and non-recurring nature. CFO is defined as cash provided by operating activities, excluding the impact of changes in operating working capital. FCF is defined as CFO net of capital expenditures and investments. Operating costs is defined by the company as the sum of production and operating expenses, selling, general and administrative expenses, exploration general and administrative expenses, geological and geophysical, lease rentals and other exploration expenses. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.

Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.

Other Terms – This news release also contains the term underlying production. Underlying production excludes Libya and reflects the impact of closed acquisitions and closed dispositions with an assumed close date of January 1, 2020. The company believes that underlying production is useful to investors to compare production excluding Libya and reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies.

References in the release to earnings refer to net income/(loss) attributable to ConocoPhillips.

ConocoPhillips

Table 1: Reconciliation of earnings to adjusted earnings

$ Millions, Except as Indicated

1Q21

1Q20

Pre-tax Income
tax After-tax Per share of
common
stock
(dollars) Pre-tax Income
tax After-tax Per share of
common
stock
(dollars)

Earnings
$

       982

                 0.75

$

(1,739

)

              (1.60

)

Adjustments:

Unrealized (gain) loss on CVE shares
      (308

)

             –

        (308

)

                (0.24

)

    1,691

              –

       1,691

               1.56

Net gain on asset sales
      (200

)

             6

        (194

)

                (0.15

)

         38

            (9

)

            29

               0.03

Transaction and restructuring expenses
       291

         (48

)

          243

                 0.19

            –

              –

              –

                     –

Net realized loss on accelerated settlement of Concho hedging program
       132

         (31

)

          101

                 0.08

            –

              –

              –

                     –

Deferred tax adjustments
            –

           75

            75

                 0.06

            –

              –

              –

                     –

Unrealized (gain) loss on FX derivative
           4

           (1

)

              3

                       –

        (75

)

           16

          (59

)

              (0.05

)

Impairments
            –

             –

              –

                       –

       770

        (177

)

          593

               0.54

Pending claims and settlements
            –

             –

              –

                       –

        (29

)

              –

          (29

)

              (0.03

)

Adjusted earnings / (loss)
$

       902

                 0.69

$

       486

               0.45

The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides.

ConocoPhillips

Table 2: Reconciliation of reported production to pro forma underlying production

In MBOED, Except as Indicated

1Q21

1Q20

Total Reported ConocoPhillips Production
         1,527

           1,289

Adjustments:

Libya
            (39

)

              (11

)

Total Production excluding Libya
         1,488

           1,278

Closed Dispositions¹
              –

              (57

)

Closed Acquisitions ²
              –

              326

Total Pro Forma Underlying Production
         1,488

           1,547



¹Includes production related to the completed Australia-West disposition and various Lower 48 dispositions.

²Includes production related to the acquisition of Concho which closed on January 15, 2021. Q1 2020 has been pro forma adjusted for the acquisition based on volumes publicly reported by Concho.

ConocoPhillips

Table 3: Reconciliation of net cash provided by operating activities to free cash flow

$ Millions, Except as Indicated

1Q21

1Q20

Net Cash Provided by Operating Activities
            2,080

             2,105

Adjustments:

Net operating working capital changes
               (15

)

                497

Cash from operations
            2,095

             1,608

Capital expenditures and investments
            1,200

             1,649

Free Cash Flow
               895

                 (41

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005153/en/

John C. Roper (media)

281-293-1451

[email protected]

Investor Relations

281-293-5000

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Energy Utilities Oil/Gas

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Posted on May 4, 2021 7:03 am
Luciana Berger to Join Cazoo Board

Luciana Berger to Join Cazoo Board

Luciana Berger to become Cazoo Non-Exec Director and ESG Committee Chair

Follows Cazoo’s recent announcement of its $7.0bn business combination with AJAX I

Luciana will join Cazoo Board following transaction closing and listing on NYSE in Q3 2021

LONDON & NEW YORK–(BUSINESS WIRE)–
Cazoo, the UK’s leading online car retailer, which makes buying your next car as simple and seamless as purchasing any other product online, has today announced that Luciana Berger will be joining its Board as a Non-Executive Director, following completion of its business combination with AJAX I (NYSE: AJAX).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210504005091/en/

Luciana Berger (Photo: Business Wire)

Luciana is currently Managing Director of Advocacy and Public Affairs at Edelman UK, specialising in health, sustainability and energy policy. Luciana served as the Member of Parliament for Liverpool Wavertree for almost a decade. She was the Shadow Minister for Energy and Climate Change, Shadow Minister for Public Health, Shadow Cabinet Member for Mental Health between 2010 and 2016, and the Liberal Democrat Shadow Spokesperson for Health, Social Care and Wellbeing in 2019.

Luciana will become the Chair of Environment, Social, and Corporate Governance (ESG) Committee at Cazoo. She is Chair of the Maternal Mental Health Alliance, an advisory board member of the Money and Mental Health Policy Institute and Vice-President of the British Association of Counsellors and Psychotherapists.

Luciana helped secure a number of significant changes to the law during her parliamentary career and was ‘The People’s Choice Backbencher of the Year’ in 2018. She is Chair of the Maternal Mental Health Alliance (MMHA), an advisory board member of the Money and Mental Health Policy Institute (MMHPI), and Vice-President of the British Association of Counsellors and Psychotherapists (BACP).

Cazoo recently announced it will list on the NYSE through a $7.0 billion business combination with AJAX I, a publicly traded special purpose acquisition company founded by renowned US investor Dan Och. The transaction is expected to complete in Q3 this year when Luciana will take up her role on the Cazoo Board.

Cazoo is pioneering the shift to online car buying in Europe and since being founded in 2018, has sold over 20,000 cars to consumers across the UK who have embraced the selection, transparency and convenience of buying quality used cars entirely online.

Cazoo owns and reconditions all its cars before offering them for sale on its website for either delivery or collection in as little as 72 hours. Already the leading online car retailer in the UK, Cazoo is also Europe’s leading car subscription player with over 6,000 subscribers across the UK, France and Germany.

Other Cazoo Board members following the transaction closing will include Alex Chesterman OBE (Chair & CEO), Stephen Morana (CFO), Duncan Tatton-Brown (Audit Chair), Moni Mannings (Rem Chair), Dan Och (Non-Exec), Viscount Rothermere (Non-Exec), David Hobbs (Non-Exec) and Anne Wojcicki (Non-Exec).

Alex Chesterman OBE, Founder & CEO of Cazoo said, “I am delighted that Luciana will be joining the Cazoo Board as the Chair of our ESG Committee once we become listed on the NYSE. Luciana’s extensive experience across corporate social responsibility, environmental policy and mental health issues will be invaluable as we continue to grow our team and business in a sustainable way over the coming years.”

Luciana Berger said: ‘I am delighted to be joining Cazoo as a non-executive director at such an important moment in the life of the company. Cazoo is already one of the UK’s great success stories, making life easier for thousands of customers in ways which are ethical, transparent and environmentally sustainable. I know Cazoo takes its corporate responsibility very seriously. That’s one important reason why I am excited to be joining Alex and the team.’

About Cazoo – www.cazoo.co.uk

Cazoo’s mission is to transform the car buying experience for consumers across Europe by providing better selection, quality, transparency, convenience and peace of mind. Cazoo aims to make buying a car no different to any other product online today, where consumers can simply and seamlessly purchase, finance or subscribe to a car entirely online for either delivery or collection in as little as 72 hours. Cazoo was founded in 2018 by serial entrepreneur Alex Chesterman OBE, has a highly experienced management team and is backed by some of the leading global technology investors.

About AJAX – www.ajaxcap.com

AJAX is a blank check company whose purpose is to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. AJAX was founded by renowned US investor Dan Och in partnership with Glenn Fuhrman and strategic advisors including Steve Ells (founder, Chipotle), Jim McKelvey (co-founder, Square), Kevin Systrom (co-founder, Instagram) and Anne Wojcicki (co-founder, 23andMe).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005091/en/

Lawrence Hall, Group Communications Director, [email protected]

KEYWORDS: Europe United States United Kingdom North America New York

INDUSTRY KEYWORDS: Online Retail Retail Other Automotive General Automotive Automotive

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Luciana Berger (Photo: Business Wire)

Posted on May 4, 2021 7:03 am
A Quarter of American Taxpayers Don’t Have a Financial Plan: AICPA Survey

A Quarter of American Taxpayers Don’t Have a Financial Plan: AICPA Survey

Don’t file and forget your tax return – use it to develop a financial plan

Five ways to use a tax return as a powerful financial planning tool

Free resource details how to make sense of your current tax situation and plan for future life goals with the help of a CPA

NEW YORK–(BUSINESS WIRE)–
For some people, submitting their tax return to the IRS is a relief as they put the paperwork out of sight, and out of mind, until next year. Others recognize that tax time is the perfect time to plan for the future while all the documents are readily available. In fact, half of American taxpayers (55 percent) have used the information collected and entered on their annual tax return to create or make changes to their financial plan, with a little more than a quarter (27 percent) doing so annually, according to research conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA) in the fourth quarter of 2020.

“As good as it may feel to have taxes behind you, the information that you’ve just gathered is an up-to-date roadmap of your financial life right in front of you,” said Gregory J. Anton, CPA, CGMA, chairman of the AICPA’s National CPA Financial Literacy Commission. “Don’t simply file and forget your tax return. Use it as a tool to help you in developing a plan that will put you on the path to reach your financial goals.”

Concerningly, the survey found that a quarter of American taxpayers (23 percent) do not have a financial plan. For those looking for guidance on how to use their own tax return to develop a well-rounded comprehensive financial plan, the AICPA’s National CPA Financial Literacy Commission recommends using your 2020 tax return as a starting point.

These five areas of a tax return are a good place to start:

1. Who counts on you for support?

Your filing status (married filing joint return, head of household, etc.) and the dependents you list on your tax return give you a current view of who is in your household for financial reasons– a spouse, children, perhaps a parent or other relative you’re helping out. Especially if there have been recent changes, such as birth or adoption of a child or a student graduating college and starting work, it’s worth considering whether your health insurance, life insurance, education planning, estate planning, etc., are up to date.

2. Is your withholding aligned with the taxes you owe?

There have been a number of changes to withholdings over the past couple years which is why it is concerning that 45 percent of tax-filing Americans have no idea when they last updated their withholding. Your tax return will show you how much was withheld from your pay during the year and whether you came close to the taxes you owed or missed the mark in either direction. If too much withholding brought you a big refund, you’ve made an interest-free loan to the government. Going forward, it might make sense to adjust your withholding downward to more closely line up with what you expect to owe, giving you and an opportunity to invest the money and earn a return or access it to meet emergencies over the course of the year.

On the other hand, if you owe a significant amount at tax time, consider increasing your withholding to avoid possible IRS interest charges and penalties that can put a dent in your savings. For Americans looking for help understanding Form W-4, and the impact of changing their payroll deductions, the AICPA has information at 360FinancialLiteracy.org/W4. Understanding the impact of withholding is especially important for those looking to plan and improve their financial situation.

3. Where is your money coming from?

Your tax return provides an overview of your sources of income, including wages, earnings from savings and investments, Social Security and other retirement plans, self-employment or side work, and even sources like lottery ticket winnings and jury duty pay, since nearly everything that comes in for most people is taxable. Considering how much of your income is recurring versus one-time or sporadic is a great first step in budgeting, or updating your budget. Understanding what you have to work with is key to mapping out the level of spending that fits your situation and leaves room for saving toward your long-term goals.

4. Where are you on the road to retirement?

Your tax return can give you good information on your progress toward a financially secure retirement and highlight some opportunities to enhance it. For example, you can see how tax-deductible contributions to an IRA or pre-tax 401(k) deductions reduced your taxable income and how you may be able to increase the contributions going forward, boosting tax savings and your retirement nest egg. It’s a good time to consider increasing your contribution, especially if you’re not taking advantage of the maximum employer match.

For those nearing retirement, it’s a good time to start thinking about how you’ll transition from health insurance at work to post-retirement insurance, including Medicare and its related options when you qualify. It’s also worthwhile to start exploring various strategies for commencing Social Security benefits. The good news is that Medicare and Social Security offer various options to fit a variety of situations, but you want to be sure the decisions you make give you the greatest benefits.

5. Are your itemized deductions in line with your goals?

While the majority of people take a standard deduction rather than itemizing, those who do itemize get a clear view of certain financial items, presenting an opportunity to consider significant changes in your financial situation. For example, if state and local taxes are taking a big bite of your income, it might pay to consider moving to a lower tax area as part of your retirement planning. High medical deductions may mean it’s time for a check-up on your health insurance. For charitable contributions, you can magnify your giving power by grouping them into years when you have enough deductions to itemize, rather than giving about the same amount every year.

At Times Like These, the Right Advice Is Essential

For tens of millions of Americans, including small business owners, COVID-19 made this an extremely complicated tax year. CPAs spend years preparing to help their clients through moments like these. Working with a CPA can not only help you make sense of your current tax situation but also plan for future life goals as well.

Methodology

American taxpayers include those who have filed income taxes in the last 3 years. This survey was conducted online within the United States between October 1-5, 2020 among 2028 adults (aged 18 and over) by The Harris Poll on behalf of AICPA. n=1,636 have filed income taxes in the past 3 years. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

About the AICPA’s 360 Degrees of Financial Literacy Program

The AICPA’s 360 Degrees of Financial Literacy Program is a nation-wide, volunteer grass-roots effort to help Americans develop a better understanding of money management and take control of their financial lives. Since 2005, the AICPA has been empowering people to make better decisions with the tools and resources on the 360 Degrees of Financial Literacy website. Financial Literacy is the cause of the CPA profession and the 360 Degrees of Financial Literacy program is the AICPA’s flagship corporate social responsibility effort. These efforts are focused on financial education as a public service and are completely free from all advertising, sales, and promotions. Connect on Facebook for tips, insights and motivation to keep your finances on track.

About the American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 431,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005047/en/

James Schiavone

212-596-6119

[email protected]

Jonathan Lynch

212-596-6033

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Accounting Professional Services Finance

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