Market Newsdesk

April 30, 2021 7:33 am

Level One Bancorp, Inc. reports first quarter 2021 net income of $9.0 million, representing $1.10 diluted earnings per common share

FARMINGTON HILLS, Mich., April 30, 2021 (GLOBE NEWSWIRE) — Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported its financial results for the first quarter of 2021, which included net income of $9.0 million, or $1.10 diluted earnings per common share. This compares to net income of $8.4 million, or $1.02 diluted earnings per common share, in the preceding quarter and $4.1 million, or $0.53 diluted earnings per common share, in the first quarter of 2020.

Patrick J. Fehring, President and Chief Executive Officer of Level One, commented, “We are pleased to report record quarterly earnings for the first quarter of 2021. Net income in the first quarter of 2021 was $9.0 million, which represents an increase of 117.98% over the first quarter of the prior year and an increase of 7.00% over the prior quarter. During the quarter we experienced continued loan growth, a high level of residential loan production, moderately improving credit trends, stable core net interest margin, and strong deposit growth. Throughout this pandemic we continue to grow our business by meeting the needs of our current clients and significantly growing the number of new clients we serve. In 2021, we have provided solid support to local businesses and communities with our participation in the second round of the Paycheck Protection Program (“PPP”). Our participation in the second round of the program has resulted in the Level One team originating close to 1,500 loans to businesses for approximately $230.5 million from January 18, 2021 through April 27, 2021. An estimated 20,000 jobs were supported through these efforts. In addition to meeting the needs of existing Level One clients, we also assisted over 600 new business clients obtain critical funding to support their operations through this second round of PPP funding. I am appreciative of the extraordinary efforts of the Level One team during this COVID-19 pandemic as we continue to provide needed financial services to our community.”

First
Quarter 2021 Highlights

Net income of $9.0 million increased 7.00% from $8.4 million in the preceding quarter
Diluted earnings per common share of $1.10 increased 7.84% compared to $1.02 in the preceding quarter
Net interest margin, on a fully taxable equivalent (“FTE”) basis, was 3.33%, compared to 3.27% in the preceding quarter
Noninterest income decreased $832 thousand to $7.3 million in the first quarter of 2021, compared to $8.1 million in the preceding quarter
Noninterest expense decreased $322 thousand to $15.1 million in the first quarter of 2021, compared to $15.5 million in the preceding quarter
Provision for loan loss decreased $1.3 million to $265 thousand in the first quarter of 2021, compared to $1.5 million in the preceding quarter
Total assets increased 5.31% to $2.57 billion at March 31, 2021, compared to $2.44 billion at December 31, 2020
Total loans increased 8.02% to $1.86 billion at March 31, 2021, compared to $1.72 billion at December 31, 2020
Total deposits increased 6.65% to $2.09 billion at March 31, 2021, compared to $1.96 billion at December 31, 2020
Book value per common share increased 1.03% to $25.40 per common share at March 31, 2021, compared to $25.14 per common share at December 31, 2020
Tangible book value per common share increased 0.76% to $19.78 per common share at March 31, 2021, compared to $19.63 per common share at December 31, 2020

Net Interest Income and Net Interest Margin

Level One’s net interest income increased $51 thousand, or 0.27%, to $19.2 million in the first quarter of 2021, compared to $19.1 million in the preceding quarter, and increased $4.3 million, or 29.26%, compared to $14.8 million in the first quarter of 2020. The increase in net interest income compared to the first quarter of 2020 was primarily due to increases of $1.8 million of interest income on loans and $178 thousand of interest income on investment securities partially offset by a $239 thousand decrease of interest income on fed funds sold and other investments. In addition, interest expense on deposits decreased $2.4 million primarily due to the target federal funds rate dropping 150 basis points in March 2020 in response to the COVID-19 pandemic.

Level One’s net interest margin, on a FTE basis, was 3.33% in the first quarter of 2021, compared to 3.27% in the preceding quarter and 3.42% in the first quarter of 2020. The increase in the net interest margin compared to the preceding quarter was primarily a result of the slight increase in loan interest rates during the first quarter of 2021. Loan yield on non-PPP loans was 4.33% for the first quarter of 2021 compared to 4.17% in the preceding quarter. The decrease in the net interest margin compared to the first quarter of 2020 was a result of lower yields across most interest-earning assets, mostly reflecting the impact of lower market interest rates. Average loan yield decreased 65 basis points to 4.35% for the first quarter of 2021 from 5.00% for the first quarter of 2020, primarily due to the target federal funds rate dropping 150 basis points in March 2020 in response to the COVID-19 pandemic. The decrease in loan yields was accompanied by a corresponding decrease in the cost of funds, which declined 93 basis points to 0.63% in the first quarter of 2021, compared to 1.56% in the first quarter of 2020 primarily due to lower interest rates paid as a result of revised internal deposit rates, mainly driven by the decreases in the target federal funds rate.

Noninterest Income

Level One’s noninterest income decreased $832 thousand, or 10.26%, to $7.3 million in the first quarter of 2021, compared to $8.1 million in the preceding quarter, and increased $2.6 million, or 55.44%, compared to $4.7 million in the first quarter of 2020. The decrease in noninterest income compared to the preceding quarter was primarily attributable to a decrease of $999 thousand in mortgage banking activities partially offset by an increase of $129 thousand in service charges on deposits. The decrease in the mortgage banking activities income compared to the fourth quarter of 2020 was primarily due to the increase in interest rates and secondary market pricing.

The increase in noninterest income year over year was primarily due to an increase of $3.2 million in mortgage banking activities and an increase of $143 thousand in service charges on deposits. This was partially offset by decreases of $509 thousand in net gains on sales of investment securities and $269 thousand in other charges and fees. The increase in mortgage banking activities compared to the first quarter of 2020 was primarily due to $65.5 million higher residential loan originations held for sale and $90.1 million higher residential loans sold primarily as a result of higher volumes caused by the lower interest rate environment. The decrease in net gains on sales of investment securities was due to fewer securities sold in the first quarter of 2021 than in the first quarter of 2020. The decrease in other charges and fees was primarily due to a decrease in interest rate swap fees.

Noninterest Expense

Level One’s noninterest expense decreased $322 thousand, or 2.08%, to $15.1 million in the first quarter of 2021, compared to $15.5 million in the preceding quarter, and increased $577 thousand, or 3.96%, compared to $14.6 million in the first quarter of 2020. The decrease in noninterest expense compared to the preceding quarter was primarily attributable to decreases of $292 thousand in salary and employee benefits, $151 thousand in professional service fees, and $114 thousand in marketing expense. These decreases were partially offset by an increase of $365 thousand in data processing expense. The decrease in salary and employee benefits compared to the fourth quarter of 2020 was primarily due to decreases of $425 thousand in incentive compensation, $111 thousand in supplemental employee retirement plan (“SERP”) expense, and $79 thousand in restricted stock expense. This was partially offset by a $154 thousand increase in mortgage commissions and a $197 thousand increase in social security taxes due to the new year resetting taxable income caps. The decrease in professional service fees was due primarily to internal audit fees and the cyclical nature of services performed. The decrease in marketing expense was primarily due to higher than usual donations during the preceding quarter and advertising. The increase in data processing expense was due primarily to the new loan processing system used for the PPP loans.

The increase in noninterest expense year over year was mainly attributable to increases of $1.3 million in salary and employee benefits, $377 thousand in data processing expense, $251 thousand in professional service fees, $180 thousand in occupancy and equipment expense, and $113 thousand in FDIC premium expense. These increases were partially offset by decreases of $1.5 million in acquisition and due diligence fees and $149 thousand in other expense. The increase in salary and employee benefits between the periods was primarily due to increases of $1.2 million in mortgage commissions expense and $170 thousand in contract labor expenses incurred for the PPP loan program. The increase in data processing expense was due to the same reasons mentioned above. The increase in professional service fees was primarily related to increased residential mortgage volumes and consulting fees for residential mortgage systems incurred as well as increased audit fees. The increase in occupancy and equipment expense was primarily attributable to additional software maintenance and licensing. The increase in FDIC premium expense was primarily due to a lower leverage ratio and an increase in assets year over year. The decrease in acquisition and due diligence fees was primarily due to the merger with Ann Arbor State Bank in the first quarter of 2020. The decrease in other expense was primarily due to the provision on unfunded commitments.

The efficiency ratio, which is a measure of operating expenses as a percentage of net interest income and noninterest income, for the first quarter of 2021 was 57.27%, compared to 56.81% for the preceding quarter and 74.64% in the first quarter of 2020. The decrease in the efficiency ratio year over year was primarily driven by the additional income provided by the acquisition of Ann Arbor State Bank without adding a proportional amount of expense as well as the increase in mortgage banking income, net of commissions, as a result of higher loan volumes.

Income Tax Expense

Level One’s income tax provision was $2.1 million, or 18.78% of pretax income, in the first quarter of 2021, as compared to $1.8 million, or 18.05% of pretax income, in the preceding quarter and $349 thousand, or 7.83% of pretax income, in the first quarter of 2020. The increase in income tax provision year over year was primarily as a result of tax benefits recognized during the first quarter of 2020 that did not occur again in the first quarter of 2021. There was a $290 thousand tax benefit related to the Ann Arbor State Bank net operating loss (NOL) resulting from the CARES Act provision that allowed for NOLs generated in 2018-2020 to be carried back five years. Additionally, disqualified dispositions of Ann Arbor State Bank’s stock options generated a $175 thousand tax benefit.

Loan Portfolio

Total loans were $1.86 billion at March 31, 2021, an increase of $138.2 million, or 8.02%, from $1.72 billion at December 31, 2020, and up $395.3 million, or 26.96%, from $1.47 billion at March 31, 2020. Total loans, excluding PPP loans, increased by $22.5 million, or 1.57%, compared to December 31, 2020. In addition, PPP loans increased $115.6 million, net of SBA forgiveness, compared to December 31, 2020 due to the second round of PPP funding. The growth in total loans compared to March 31, 2020 was primarily due to the origination of $649.6 million of PPP loans during the second and third quarters of 2020 and first quarter of 2021, partially offset by $243.8 million of PPP loans forgiven by the SBA. This was partially offset by a net decrease of $10.5 million in the remainder of the portfolio.

Investment Securities

The investment securities portfolio grew $43.5 million, or 14.38%, to $346.3 million at March 31, 2021, from $302.7 million at December 31, 2020, and up $115.6 million, or 50.11%, from $230.7 million at March 31, 2020. The increase in the investment securities portfolio compared to December 31, 2020 was primarily due to the purchase of $59.1 million of investment securities, offset in part by $2.7 million of sales, calls, or maturity of investment securities. The increase in investment securities compared to March 31, 2020, was primarily due to the purchase of $163.2 million of securities between the two dates using the excess cash balances generated by the payoffs of PPP loans, partially offset by $25.9 million of sales, calls, or maturity of investment securities.

Deposits

Total deposits were $2.09 billion at March 31, 2021, an increase of $130.7 million, or 6.65%, from $1.96 billion at December 31, 2021, and up $623.4 million, or 42.39%, from $1.47 billion at March 31, 2020. The growth in deposits compared to December 31, 2020 and March 31, 2020 was primarily due to organic deposit growth as a result of customers increasing their liquidity. Total deposit composition at March 31, 2021 consisted of 42.28% of demand deposit accounts, 31.14% of savings and money market accounts and 26.58% of time deposits.

Borrowings

Total debt outstanding was $231.0 million at March 31, 2021, an increase of $764 thousand, or 0.35%, from $230.3 million at December 31, 2020, and down $25.2 million, or 9.83%, from $256.2 million at March 31, 2020. The increase in debt outstanding compared to December 31, 2020 was primarily due an increase in repurchase agreements. The decrease in total borrowings compared to March 31, 2020 was primarily due to decreases of $25.0 million in long-term FHLB advances and $4.0 million in short-term FHLB advances that resulted from excess liquidity from higher deposit levels partially offset by an increase of $3.8 million in repurchase agreements.

Asset Quality

Nonaccrual loans were $15.4 million, or 0.83% of total loans, at March 31, 2021, a decrease of $3.5 million from nonaccrual loans of $18.8 million, or 1.09% of total loans, at December 31, 2020, and an increase of $140 thousand from nonaccrual loans of $15.2 million, or 1.04% of total loans, at March 31, 2020. The decrease in nonaccrual loans compared to the prior quarter-end was primarily due to a $2.7 million paydown of a commercial loan relationship and two residential loan relationships totaling $500 thousand moving to accrual status.

Level One had no other real estate owned assets at March 31, 2021 and December 31, 2020, compared to $2.1 million at March 31, 2020. Nonperforming assets, consisting of nonaccrual loans and other real estate owned, as a percentage of total assets were 0.60% at March 31, 2021, compared to 0.77% at December 31, 2020, and 0.89% at March 31, 2020.

Performing troubled debt restructured loans, which are not reported as nonaccrual loans but rather as part of impaired loans, were $765 thousand at March 31, 2021, $1.0 million at December 31, 2020, and $1.1 million at March 31, 2020. Loans to borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, forbearance agreements, and principal deferral or reduction, are categorized as troubled debt restructured loans. In accordance with bank regulatory guidance, troubled debt restructurings do not include short-term modifications made on a good-faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief. As of March 31, 2021, there were $22.2 million of loans that remained on a COVID-related deferral compared to $19.8 million as of December 31, 2020. As of March 31, 2021, $10.7 million of those loans had payments deferred greater than six months compared to $11.4 million as of December 31, 2021.

Net recoveries in the first quarter of 2021 were $17 thousand, compared to $496 thousand of net chargeoffs, or 0.11% of average loans on an annualized basis, for the preceding quarter and $174 thousand of net chargeoffs, or 0.05% of average loans on an annualized basis, in the first quarter of 2020. The change compared to the fourth quarter of 2020 was due primarily to decreases of $378 thousand in commercial loan chargeoffs and $176 thousand in residential loan chargeoffs. The year over year change was primarily due to commercial loan chargeoffs in the first quarter of 2020.

Level One’s provision for loan losses in the first quarter of 2021 was a provision expense of $265 thousand, compared to $1.5 million in the preceding quarter and $489 thousand in the first quarter of 2020. The decrease in the provision expense quarter over quarter was primarily due to a decrease of $1.7 million in general reserves as a result of a larger reserve increase in the fourth quarter of 2020 related to the impact of the COVID-19 pandemic on the loan portfolio, as well as a $513 thousand decrease in net chargeoffs, partially offset by an increase in specific reserves of $661 thousand. The decrease in the provision expense year over year was primarily due to a decrease in general reserves of $250 thousand as well as a decrease of $191 thousand in net chargeoffs. This was partially offset by a $215 thousand increase in specific reserves. The Company will continue to evaluate the fluid situation in regard to the COVID-19 pandemic and will take further action to appropriately record additional provision for loan losses or decrease the level of the provision for loan losses should there be any indications of changes in the credit quality of our portfolio as a result of the COVID-19 pandemic.

The allowance for loan losses was $22.6 million, or 1.21% of total loans, at March 31, 2021, compared to $22.3 million, or 1.29% of total loans, at December 31, 2020, and $13.0 million, or 0.89% of total loans, at March 31, 2020. Excluding $405.8 million and $290.1 million of PPP loans, respectively, the allowance for loan losses as a percentage of total loans was 1.55% in the first quarter of 2021, compared to 1.56% in the preceding quarter (See section entitled “GAAP Reconciliation of Non-GAAP Financial Measures” for further details). The allowance for loan losses as a percentage of total loans increased compared to March 31, 2020, primarily due to the trends in delinquencies and nonaccrual loans as well as the stress on the commercial and industrial and commercial real estate owner occupied portfolios, primarily in the restaurant and transportation industries, as a result of the uncertainty surrounding the COVID-19 pandemic. As of March 31, 2021, the allowance for loan losses as a percentage of nonaccrual loans was 146.95%, compared to 118.50% at December 31, 2020, and 85.32% at March 31, 2020. The Company will re-evaluate the appropriateness of the allowance for loan losses in future quarters as needed.

Capital

Total shareholders’ equity was $217.2 million at March 31, 2021, an increase of $1.9 million, or 0.86%, compared with $215.3 million at December 31, 2020 primarily as a result of an increase in retained earnings partially offset by a decrease in accumulated other comprehensive income. Total shareholders’ equity increased $41.4 million, or 23.56%, from $175.8 million at March 31, 2020 attributable to the issuance of preferred stock in the third quarter of 2020 as well as an increase in retained earnings.

Recent Developments

First Quarter Common Stock Dividend

: On March 17, 2021, Level One’s Board of Directors declared a quarterly cash dividend of $0.06 per share. This dividend was paid on April 15, 2021, to stockholders of record at the close of business on March 31, 2021.

Second Quarter Preferred Stock Dividend:
On April 20, 2021, Level One’s Board of Directors declared a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock, Series B. Holders of depositary shares will receive $0.4688 per depositary share. The dividend is payable on May 15, 2021, to shareholders of record at the close of business on April 30, 2021.

Level One’s Response to the COVID-19 Pandemic

: Level One has taken comprehensive steps to help our customers, team members and communities during the current COVID-19 pandemic health crisis. For our customers, we have provided loan payment deferrals and offered fee waivers, among other actions. In addition, from January 18 through April 27, 2021, Level One has funded 1,487 PPP loans for $230.5 million of which 1.150 applications were for loans $150,000 or below.

We are continuing to enable the vast majority of our main office team members to work remotely each day. We have also taken significant actions to help ensure the safety of our team members whose roles require them to come into the office, which includes the development, implementation and communication of protocols necessary for those who return. As of March 31, 2021, we opened branches for walk in services. We will continue to evaluate this fluid situation and take additional actions as necessary.

About Level One Bancorp, Inc.

Level One Bancorp, Inc. is the holding company for Level One Bank, a full-service commercial and consumer bank headquartered in Michigan with assets of approximately $2.57 billion as of March 31, 2021. It operates sixteen banking centers throughout Metro Detroit, Ann Arbor, Grand Rapids, and Jackson and provides a variety of commercial, small business, and consumer banking services. Level One Bank’s success has been recognized both locally and nationally as the U.S. Small Business Administration’s (SBA) “Community Lender of the Year,” one of American Banker Magazine’s “Top 200 Community Banks in the Nation,” one of Metro Detroit’s “Best & Brightest Companies to Work For” and more. Level One Bank’s business banking division provides a broad spectrum of products including lines of credit, term loans, leases, commercial mortgages, SBA loans, MEDC loans, export-import financing, and a full suite of treasury management services. The consumer banking division offers a range of personal checking, savings and CD products and a complete array of consumer loan products including residential mortgages, new construction and renovation loans, home equity lines of credit, auto loans, and credit card services. Level One Bank offers a variety of digital banking services including online banking, robust mobile banking apps, online account opening and online loan applications for individuals and businesses. Level One Bank offers the sophistication of a big bank, the heart of a community bank, and the spirit of an entrepreneur. For more information, visit www.levelonebank.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect management’s current views of future events and operations. These forward-looking statements are based on the information currently available to the Company as of the date of this release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue” or similar technology. It is important to note that these forward-looking statements are not guarantees of future performance and involve risk and uncertainties, including, but not limited to, the effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic, the ability of the Company to implement its strategy and expand its lending operations, changes in interest rates and other general economic, business and political conditions, including changes in the financial markets, changes in benchmark interest rates used to price loans and deposits including the expected elimination of LIBOR, and changes in tax laws, regulations and guidance, as well as other risks described in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Summary Consolidated Financial Information
(Unaudited)	As of or for the three months ended,
(Dollars in thousands, except per share data)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020

Earnings Summary
Interest income	$	21,551		$	22,181		$	20,245		$	20,396		$	19,817
Interest expense	2,394			3,075			3,648			4,163			4,997
Net interest income	19,157			19,106			16,597			16,233			14,820
Provision for loan losses	265			1,538			4,270			5,575			489
Noninterest income	7,278			8,110			9,125			7,789			4,690
Noninterest expense	15,139			15,461			15,126			15,083			14,562
Income before income taxes	11,031			10,217			6,326			3,364			4,459
Income tax provision	2,072			1,844			1,117			643			349
Net income	$	8,959		$	8,373		$	5,209		$	2,721		$	4,110
Preferred stock dividends	469			479			—			—			—
Net income available to common shareholders	8,490			7,894			5,209			2,721			4,110
Net income allocated to participating securities	111			65			40			19			47
Net income attributable to common shareholders	$	8,379		$	7,829		$	5,169		$	2,702		$	4,063
Per Share Data
Basic earnings per common share	$	1.11		$	1.02		$	0.68		$	0.35		$	0.53
Diluted earnings per common share	1.10			1.02			0.67			0.35			0.53
Diluted earnings per common share, excluding acquisition and due diligence fees ⁽¹⁾	1.10			1.02			0.67			0.37			0.68
Book value per common share	25.40			25.14			24.06			23.31			22.74
Tangible book value per common share⁽¹⁾	19.78			19.63			18.74			18.09			17.54
Preferred shares outstanding (in thousands)	10			10			10			—			—
Common shares outstanding (in thousands)	7,630			7,634			7,734			7,734			7,731
Average basic common shares (in thousands)	7,528			7,642			7,675			7,676			7,637
Average diluted common shares (in thousands)	7,612			7,695			7,712			7,721			7,738
Selected Period End Balances
Total assets	$	2,572,726		$	2,442,982		$	2,446,447		$	2,541,696		$	1,936,823
Securities available-for-sale	346,266			302,732			253,527			217,172			230,671
Total loans	1,861,691			1,723,537			1,843,888			1,815,353			1,466,407
Total deposits	2,093,965			1,963,312			1,943,435			1,821,351			1,470,608
Total liabilities	2,355,539			2,227,655			2,236,979			2,361,437			1,761,055
Total shareholders’ equity	217,187			215,327			209,468			180,259			175,768
Total common shareholders’ equity	193,815			191,955			186.098			180,259			175,768
Tangible common shareholders’ equity⁽¹⁾	150,887			149,844			144,963			139,913			135,578
Performance and Capital Ratios
Return on average assets (annualized)	1.44		%	1.35		%	0.83		%	0.46		%	0.87		%
Return on average equity (annualized)	16.31			15.61			10.48			6.02			9.40
Net interest margin (fully taxable equivalent)⁽²⁾	3.33			3.27			2.80			2.98			3.42
Efficiency ratio (noninterest expense/net interest income plus noninterest income)	57.27			56.81			58.81			62.79			74.64
Dividend payout ratio	4.50			4.90			7.41			14.22			7.52
Total shareholders’ equity to total assets	8.44			8.81			8.56			7.09			9.08
Tangible common equity to tangible assets⁽¹⁾	5.96			6.24			6.03			5.59			7.15
Common equity tier 1 to risk-weighted assets	9.63			9.30			8.83			8.76			8.10
Tier 1 capital to risk-weighted assets	11.11			10.80			10.31			8.76			8.10
Total capital to risk-weighted assets	15.18			14.91			14.39			12.81			11.68
Tier 1 capital to average assets (leverage ratio)	7.15			6.93			7.17			6.21			7.08
Asset Quality Ratios:
Net charge-offs to average loans	—		%	0.11		%	0.02		%	0.34		%	0.05		%
Nonperforming assets as a percentage of total assets	0.60			0.77			0.79			0.33			0.89
Nonaccrual loans as a percent of total loans	0.83			1.09			1.04			0.46			1.04
Allowance for loan losses as a percentage of total loans	1.21			1.29			1.15			0.94			0.89
Allowance for loan losses as a percentage of nonaccrual loans	146.95			118.50			110.32			206.37			85.32
Allowance for loan losses as a percentage of nonaccrual loans, excluding allowance allocated to loans accounted for under ASC 310-30	142.62			114.95			105.46			195.04			80.34

⁽¹⁾ See section entitled “GAAP Reconciliation of Non-GAAP Financial Measures” below.
⁽²⁾ Presented on a tax equivalent basis using a 21% tax rate.

Consolidated Balance Sheets
	As of
	March 31,			December 31,			March 31,
(Dollars in thousands)	2021			2020			2020
Assets	*(Unaudited)*						*(Unaudited)*
Cash and cash equivalents	$	224,683		$	264,071		$	104,867
Securities available-for-sale	346,266			302,732			230,671
Other investments	14,398			14,398			12,398
Mortgage loans held for sale, at fair value	19,550			43,482			18,305
Loans:
Originated loans	1,647,847			1,498,458			1,188,107
Acquired loans	213,844			225,079			278,300
Total loans	1,861,691			1,723,537			1,466,407
Less: Allowance for loan losses	(22,578		)	(22,297		)	(12,989		)
Net loans	1,839,113			1,701,240			1,453,418
Premises and equipment, net	15,523			15,834			16,673
Goodwill	35,554			35,554			36,216
Mortgage servicing rights, net	4,346			3,361			196
Other intangible assets, net	3,028			3,196			3,778
Other real estate owned	—			—			2,093
Bank-owned life insurance	18,314			18,200			17,848
Income tax benefit	5,823			3,686			630
Interest receivable and other assets	46,128			37,228			39,730
Total assets	$	2,572,726		$	2,442,982		$	1,936,823
Liabilities
Deposits:
Noninterest-bearing demand deposits	$	744,688		$	618,677		$	410,152
Interest-bearing demand deposits	140,629			127,920			105,197
Money market and savings deposits	652,091			619,900			401,238
Time deposits	556,557			596,815			554,021
Total deposits	2,093,965			1,963,312			1,470,608
Borrowings	186,440			185,684			211,787
Subordinated notes	44,600			44,592			44,447
Other liabilities	30,534			34,067			34,213
Total liabilities	2,355,539			2,227,655			1,761,055
Shareholders’ equity
Preferred stock, no par value per share; authorized-50,000 shares; issued and outstanding – 10,000 shares, with a liquidation preference of $2,500 per share, at March 31, 2021 and December 31, 2020 and 0 at March 31, 2020	23,372			23,372			—
Common stock, no par value per share; authorized – 20,000,000 shares; issued and outstanding – 7,630,342 shares at March 31, 2021, 7,633,780 shares at December 31, 2020 and 7,730,822 shares at March 31, 2020	86,529			87,615			88,910
Retained earnings	104,191			96,158			81,489
Accumulated other comprehensive income, net of tax	3,095			8,182			5,369
Total shareholders’ equity	217,187			215,327			175,768
Total liabilities and shareholders’ equity	$	2,572,726		$	2,442,982		$	1,936,823

Consolidated Statements of Income
(Unaudited)	For the three months ended
	March 31,		December 31,		March 31,
(In thousands, except per share data)	2021		2020		2020
Interest income
Originated loans, including fees	$	16,822	$	17,439	$	14,039
Acquired loans, including fees	3,101		3,234		4,089
Securities:
Taxable	850		747		684
Tax-exempt	623		592		611
Federal funds sold and other	155		169		394
Total interest income	21,551		22,181		19,817
Interest Expense
Deposits	1,387		1,954		3,832
Borrowed funds	466		487		530
Subordinated notes	541		634		635
Total interest expense	2,394		3,075		4,997
Net interest income	19,157		19,106		14,820
Provision expense for loan losses	265		1,538		489
Net interest income after provision for loan losses	18,892		17,568		14,331
Noninterest income
Service charges on deposits	777		648		634
Net gain on sales of securities	20		—		529
Mortgage banking activities	5,811		6,810		2,588
Other charges and fees	670		652		939
Total noninterest income	7,278		8,110		4,690
Noninterest expense
Salary and employee benefits	9,922		10,214		8,630
Occupancy and equipment expense	1,708		1,776		1,528
Professional service fees	643		794		392
Acquisition and due diligence fees	—		—		1,471
FDIC premium expense	324		397		211
Marketing expense	133		247		222
Loan processing expense	331		245		234
Data processing expense	1,224		859		847
Core deposit premium amortization	168		192		192
Other expense	686		737		835
Total noninterest expense	15,139		15,461		14,562
Income before income taxes	11,031		10,217		4,459
Income tax provision	2,072		1,844		349
Net income	8,959		8,373		4,110
Preferred stock dividends	469		479		—
Net income attributable to common shareholders	$	8,490	$	7,894	$	4,110
Earnings per common share:
Basic earnings per common share	$	1.11	$	1.02	$	0.53
Diluted earnings per common share	$	1.10	$	1.02	$	0.53
Cash dividends declared per common share	$	0.06	$	0.05	$	0.05
Weighted average common shares outstanding—basic	7,528		7,642		7,637
Weighted average common shares outstanding—diluted	7,612		7,695		7,738

Net Interest Income and Net Interest Margin
(Unaudited)	For the three months ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2021			2020			2020
Average Balance Sheets:
Gross loans⁽¹⁾	$	1,856,030		$	1,832,912		$	1,458,897
Investment securities: ⁽²⁾
Taxable	214,945			182,522			117,835
Tax-exempt	102,208			92,792			93,858
Interest earning cash balances	168,906			213,502			77,475
Other investments	14,398			14,398			12,387
Total interest-earning assets	$	2,356,487		$	2,336,126		$	1,760,452
Non-earning assets	139,100			138,989			121,235
Total assets	$	2,495,587		$	2,475,115		$	1,881,687

Interest-bearing demand deposits	132,816			123,201			106,236
Money market and savings deposits	604,491			611,162			403,712
Time deposits	584,085			601,900			547,838
Borrowings	185,688			187,399			185,586
Subordinated notes	44,598			44,569			44,465
Total interest-bearing liabilities	$	1,551,678		$	1,568,231		$	1,287,837
Noninterest bearing demand deposits	692,617			659,333			393,519
Other liabilities	31,608			32,990			25,493
Shareholders’ equity	219,684			214,561			174,838
Total liabilities and shareholders’ equity	$	2,495,587		$	2,475,115		$	1,881,687

Yields: ⁽³⁾
Earning Assets
Gross loans	4.35		%	4.49		%	5.00		%
Investment securities:
Taxable	1.60		%	1.63		%	2.33		%
Tax-exempt	3.08		%	3.14		%	3.18		%
Interest earning cash balances	0.10		%	0.11		%	1.33		%
Other investments	3.18		%	2.98		%	4.48		%
Total interest earning assets	3.74		%	3.80		%	4.56		%

Interest-bearing liabilities
Interest-bearing demand deposits	0.16		%	0.19		%	0.47		%
Money market and savings deposits	0.25		%	0.35		%	1.10		%
Time deposits	0.66		%	0.89		%	1.91		%
Borrowings	1.02		%	1.03		%	1.15		%
Subordinated notes	4.92		%	5.66		%	5.74		%
Total interest-bearing liabilities	0.63		%	0.78		%	1.56		%

Interest Spread	3.11		%	3.02		%	3.00		%
Net interest margin ⁽⁴⁾	3.30		%	3.25		%	3.39		%
Tax equivalent effect	0.03		%	0.02		%	0.03		%
Net interest margin on a fully tax equivalent basis	3.33		%	3.27		%	3.42		%

⁽¹⁾ Includes nonaccrual loans.
⁽²⁾ For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾ Average rates and yields are presented on an annual basis and includes a taxable equivalent adjustment to interest income of $152 thousand, $140 thousand, and $130 thousand on tax-exempt securities for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively, using a federal income tax rate of 21%.
⁽⁴⁾ Net interest margin represents net interest income divided by average total interest-earning assets.

Loan Composition
	As of
	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands)	2021		2020		2020		2020		2020
Commercial real estate:	*(Unaudited)*				*(Unaudited)*		*(Unaudited)*		*(Unaudited)*
Non-owner occupied	$	449,690	$	445,810	$	460,708	$	451,906	$	450,694
Owner-occupied	300,175		275,022		269,481		273,577		278,216
Total commercial real estate	749,865		720,832		730,189		725,483		728,910
Commercial and industrial	794,096		685,504		807,923		790,353		469,227
Residential real estate	316,089		315,476		304,088		294,041		262,894
Consumer	1,641		1,725		1,688		5,476		5,376
Total loans	$	1,861,691	$	1,723,537	$	1,843,888	$	1,815,353	$	1,466,407

Impaired Assets
	As of
	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands)	2021		2020		2020		2020		2020
Nonaccrual loans	*(Unaudited)*				*(Unaudited)*		*(Unaudited)*		*(Unaudited)*
Commercial real estate	$	4,542	$	7,320	$	7,022	$	3,649	$	3,721
Commercial and industrial	6,822		7,490		8,078		2,377		9,364
Residential real estate	3,987		3,991		4,151		2,226		2,124
Consumer	13		15		15		16		15
Total nonaccrual loans	15,364		18,816		19,266		8,268		15,224
Other real estate owned	—		—		—		61		2,093
Total nonperforming assets	15,364		18,816		19,266		8,329		17,317
Performing troubled debt restructurings
Commercial and industrial	335		546		550		549		541
Residential real estate	430		432		599		600		599
Total performing troubled debt restructurings	765		978		1,149		1,149		1,140
Total impaired assets	$	16,129	$	19,794	$	20,415	$	9,478	$	18,457

Loans 90 days or more past due and still accruing	$	328	$	269	$	552	$	903	$	437

GAAP Reconciliation of Non-GAAP Financial Measures

Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders’ equity, tangible book value per common share, the ratio of tangible common equity to tangible assets, net income and diluted earnings per common share excluding acquisition and due diligence fees, and allowance for loan loss as a percentage of total loans, excluding PPP loans. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy, as well as better understand and evaluate the Company’s core financial results for the periods in question.

The following presents these non-GAAP financial measures along with their most directly comparable financial measure calculated in accordance with GAAP:

Tangible Common Shareholders’ Equity, Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Common Share
	As of
(Dollars in thousands, except per share data)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	*(Unaudited)*						*(Unaudited)*			*(Unaudited)*			*(Unaudited)*
Total shareholders’ equity	$	217,187		$	215,327		$	209,468		$	180,259		$	175,768
Less:
Preferred stock	23,372			23,372			23,370			—			—
Total common shareholders’ equity	193,815			191,955			186,098			180,259			175,768
Less:
Goodwill	35,554			35,554			35,554			35,554			36,216
Mortgage servicing rights, net	4,346			3,361			2,193			1,213			196
Other intangible assets, net	3,028			3,196			3,388			3,579			3,778
Tangible common shareholders’ equity	$	150,887		$	149,844		$	144,963		$	139,913		$	135,578

Common shares outstanding (in thousands)	7,630			7,634			7,734			7,734			7,731
Tangible book value per common share	$	19.78		$	19.63		$	18.74		$	18.09		$	17.54

Total assets	$	2,572,726		$	2,442,982		$	2,446,447		$	2,541,696		$	1,936,823
Less:
Goodwill	35,554			35,554			35,554			35,554			36,216
Mortgage servicing rights, net	4,346			3,361			2,193			1,213			196
Other intangible assets, net	3,028			3,196			3,388			3,579			3,778
Tangible assets	$	2,529,798		$	2,400,871		$	2,405,312		$	2,501,350		$	1,896,633

Tangible common equity to tangible assets	5.96		%	6.24		%	6.03		%	5.59		%	7.15		%

Adjusted Income and Diluted Earnings Per Share
	For the three months ended
(Dollars in thousands, except per share data)	March 31, 2021		December 31, 2020		September 30, 2020			June 30, 2020			March 31, 2020
	*(Unaudited)*				*(Unaudited)*			*(Unaudited)*			*(Unaudited)*
Net income, as reported	$	8,959	$	8,373	$	5,209		$	2,721		$	4,110
Acquisition and due diligence fees	—		—		17			176			1,471
Income tax (benefit) expense ⁽¹⁾	—		2		(4		)	(34		)	(295		)
Net income, excluding acquisition and due diligence fees	$	8,959	$	8,375	$	5,222		$	2,863		$	5,286

Diluted earnings per share, as reported	$	1.10	$	1.02	$	0.67		$	0.35		$	0.53
Effect of acquisition and due diligence fees, net of income tax benefit	—		—		—			0.02			0.15
Diluted earnings per common share, excluding acquisition and due diligence fees	$	1.10	$	1.02	$	0.67		$	0.37		$	0.68

⁽¹⁾ Assumes income tax rate of 21% on deductible acquisition expenses.

Allowance for Loan Loss as a Percentage of Total Loans, Excluding PPP Loans
	As of
(Dollars in thousands, except per share data)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	*(Unaudited)*						*(Unaudited)*			*(Unaudited)*			*(Unaudited)*
Total loans	$	1,861,691		$	1,723,537		$	1,843,888		$	1,815,353		$	1,466,407
Less:
PPP loans	405,770			290,135			392,521			388,264			—
Total loans, excluding PPP loans	$	1,455,921		$	1,433,402		$	1,451,367		$	1,427,089		$	1,466,407

Allowance for loan loss	$	22,578		$	22,297		$	21,254		$	17,063		$	12,989
Allowance for loan loss as a percentage of total loans	1.21		%	1.29		%	1.15		%	0.94		%	0.89		%
Allowance for loan loss as a percentage of total loans, excluding PPP loans	1.55		%	1.56		%	1.46		%	1.20		%	0.89		%

Media Contact:
Nicole Ransom
(248) 538-2183

Investor Relations Contact:
Peter Root
(248) 538-2186

April 30, 2021 7:33 am

Acerus Announces Closing of US$15 Million Secured Loan Facility

TORONTO, April 30, 2021 (GLOBE NEWSWIRE) — Acerus Pharmaceuticals Corporation (the “Company” or “Acerus”) (TSX:ASP; OTCQB:ASPCF) today announced that it has entered into a US$15 million subordinated secured loan facility (the “Loan Facility”), which will be made available to the Company by way of one or more advances under a secured grid promissory note with First Generation Capital Inc. (“First Generation”), a company affiliated with the Chairman of the Board of Directors of Acerus.¹

The Loan Facility is subordinated to the existing facility with SWK Funding LLC (“SWK”) and bears interest at a rate of eight percent (8%) per annum. Subject to the terms of the subordination and intercreditor agreement between First Generation and SWK, the Loan Facility is repayable in full on December 31, 2024, with cash payments of interest and/or principal subject to certain exceptions related to the Company’s market capitalization and the outstanding principal amount of the senior facility with SWK; the Loan Facility can be prepaid in full or in part without penalty following repayment in full of indebtedness owed to SWK. The proceeds from the Loan Facility will be used for ongoing general working capital. A copy of the secured grid promissory note covering the Loan Facility will be filed under the Company’s profile on SEDAR at www.sedar.com.

“We have an ambitious goal of rapidly commercializing NATESTO® in the United States and, as such, need to ensure we have the capital in place to execute on the opportunity at hand. By working with First Generation to establish this Loan Facility, we can focus on leveraging our operations and continuing to implement a successful growth strategy,” said Ed Gudaitis, President and Chief Executive Officer of Acerus. “This financing, combined with our ongoing expansion plans and sales force development efforts, set the stage for success in 2021 and beyond.”

In light of First Generation’s relationship to the Chairman of the Board of Directors of Acerus, the independent members of the Board of Directors, led by the Lead Independent Director, separately met to consider and discuss the Loan Facility. Following the review of such independent members of the Board of Directors, it was unanimously determined that entering into the Loan Facility was in the best interests of Acerus.

About Acerus

Acerus Pharmaceuticals Corporation is a Canadian-based specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that improve patient experience, with a primary focus in the field of men’s health. The Company commercializes its products via its own salesforce in the United States and Canada, and through a global network of licensed distributors in other territories.

Acerus’ shares trade on TSX under the symbol ASP and on OTCQB under the symbol ASPCF. For more information, visit www.aceruspharma.com and follow us on Twitter and LinkedIn.

Notice regarding forward-looking statements

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties, including with respect to the use of proceeds of the Loan Facility, the anticipated benefits of the Loan Facility and the Company’s ability to meet its obligations under the Loan Facility, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 10, 2021 that is available on www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

(1) A material change report was not filed at least 21 days prior to the closing of the Loan Facility from First Generation as the terms and conditions of such arrangements were not yet finalized at such time.

Company Contact

[email protected]

Investor Relations Contact

Chris Witty
Acerus Investor Relations
(646) 438-9385
[email protected]

April 30, 2021 7:33 am

Motus GI Receives FDA Clearance to Market the Pure-Vu® System for Upper GI Endoscopy

FORT LAUDERDALE, Fla., April 30, 2021 (GLOBE NEWSWIRE) — Motus GI Holdings, Inc., (NASDAQ: MOTS) (“Motus GI” or the “Company”), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, announced today that it has received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for a version of the Pure-Vu® System that is compatible with gastroscopes used during upper gastrointestinal (GI) endoscopy procedures to remove blood, blood clots and debris in order to provide a clear field-of-view for the endoscopist. This proprietary technology is the latest innovation for the Pure-Vu System platform that is specifically designed to integrate with therapeutic gastroscopes to enable safe and rapid cleansing during the procedure, while preserving established procedural workflow and techniques.

“We are pleased to receive FDA clearance for the Pure-Vu System now compatible with gastroscopes for the purpose of providing enhanced visibility during upper GI endoscopies. We believe this regulatory milestone broadens our ability to participate in a larger percentage of procedures performed by our key customers, providing us a natural extension of our commercial strategy. In addition, we have received consistent feedback from leading physicians indicating their view that there is a substantial unmet need in this area, particularly for Upper GI Bleed procedures,” stated Tim Moran, Chief Executive Officer of Motus GI. “This FDA clearance is a testament to our innovation team’s ability to deliver on customer needs in a timely manner.”

Upper GI bleeds occurred in the U.S. at a rate of approximately 400,000 cases per year in 2019, according to iData Research Inc. The existence of blood and blood clots in these patients can impair a physician’s view, making it difficult to identify the bleed source. We believe removing adherent blood clots from the field of view is a significant need in allowing a physician the ability to identify and treat the bleed source. The mortality rate of this condition can reach up to approximately 10%, as noted in Thad Wilkins, MD, et al., American Family Physician (2012).

About the Pure-Vu System

The Pure-Vu System integrates with standard and slim colonoscopes to improve visualization during a colonoscopy while preserving established procedural workflow by irrigating the colon and evacuating debris to provide a better-quality exam. Challenges with bowel preparation for inpatient colonoscopy, particularly patients who are elderly, with comorbidities, or active bleeds, represent a significant area of unmet need that directly affects clinical outcomes and increases the cost of care. Motus GI believes the Pure-Vu System may lead to positive outcomes and lower costs for hospitals by safely and quickly improving visualization of the colon for a quality exam the first time. In multiple clinical studies to date, involving the treatment of challenging inpatient and outpatient cases, the Pure-Vu System has consistently helped achieve adequate bowel cleanliness rates greater than 95% following a reduced prep regimen. Motus GI estimates that in 2021 approximately 4.8 million inpatient colonoscopy procedures will take place worldwide.

The Pure-Vu System has received a CE Mark in the EU and is cleared by the U.S. Food and Drug Administration to help facilitate the cleaning of a poorly prepared colon during the colonoscopy procedure.

About Motus GI

Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions. For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms, including without limitation, risks related to the Company’s cost reduction plan, the cost savings and the cash expenses related to the implementation of the plan, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s Form 10-K filed on March 16, 2021, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact:

Bob Yedid
LifeSci Advisors
(646) 597-6989
[email protected]

April 30, 2021 7:33 am

Acreage Announces First Quarter 2021 Earnings Date

NEW YORK, April 30, 2021 (GLOBE NEWSWIRE) — Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF) a vertically integrated, multi-state operator of cannabis licenses and assets in the U.S., today announced it will report its first quarter 2021 financial results for the period ending March 31, 2021 on May 10, 2021 after market close. Management will host a conference call on May 11, 2021 at 8:30 a.m. EST to discuss the results in detail.

A webcast will be available and can be accessed via Acreage’s Investor Relations website investors.acreageholdings.com. To listen to the live call, please visit the website at least 15 minutes early to register, download and install any necessary audio software. A playback of the call will be archived on Acreage’s website for approximately 30 days.

ABOUT ACREAGE

With its principal address in New York City, Acreage is a multi-state operator of cannabis ‎cultivation and retailing facilities in the U.S., including the company’s national retail store ‎brand, The Botanist. Acreage’s wide range of national and regionally available cannabis products include the award-winning The Botanist brand, the highly recognizable Tweed brand, the Prime medical brand in Pennsylvania, the Innocent edibles brand in Illinois and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products throughout the U.S. Since its founding in 2011, Acreage has focused on building and scaling operations to create a ‎seamless, consumer-focused, branded experience. More information is available at www.acreageholdings.com.

On June 27, 2019, Acreage implemented an arrangement under section 288 of the Business Corporations ‎Act (British Columbia) with Canopy Growth Corporation (“Canopy Growth”), which was subsequently amended on September 23, 2020 (the “Amended Arrangement”)‎. Pursuant to the Amended Arrangement, ‎upon ‎the occurrence (or waiver by Canopy Growth) of changes in federal laws in the United States to permit the general cultivation, distribution and possession of marijuana (as defined in the relevant legislation) or to remove the regulation of such activities from the federal laws of the United States (the “Triggering Event”), Canopy Growth will, subject to the ‎satisfaction or waiver of certain closing conditions, acquire ‎all of the issued and outstanding Class E subordinate voting shares (the “Fixed Shares”) on the basis of 0.3048 of a Canopy Growth share per ‎Fixed Share (following the automatic conversion of the Class F multiple voting shares and subject to adjustment ‎in accordance with the terms of the arrangement agreement entered into between Acreage and Canopy Growth on April 18, 2019, as amended on May 15, 2019 and on September 23, 2020).

In addition, Canopy Growth holds an option, exercisable at the discretion of Canopy Growth, to acquire all of the ‎issued and outstanding Class D subordinate voting shares (the “Floating Shares”) at the time that Canopy Growth acquires the Fixed Shares, for ‎cash or Canopy Growth shares, as Canopy Growth may determine, at a price per Floating Share based ‎upon the 30-day volume-weighted average trading price of the Floating Shares on the CSE relative to the trading price of the Canopy Growth shares at the time of the ‎occurrence or waiver of the Triggering Event, subject to a minimum price of US$6.41 per Floating Share.

For more information about the Amended Arrangement please see the Acreage proxy statement and management information circular dated August 17, 2020 (the “Circular”) and the respective ‎information circulars of each of Acreage and Canopy Growth dated May 17, 2019, which are available on ‎Acreage’s and Canopy Growth’s respective profiles on SEDAR at www.sedar.com and filed with the SEC on the EDGAR website at www.sec.gov. For additional information regarding ‎Canopy Growth, please see Canopy Growth’s profile on SEDAR at www.sedar.com.

FORWARD LOOKING STATEMENTS

This news release and each of the documents referred to herein contains “forward-looking information” and ‎‎“forward-looking statements” within the meaning of applicable Canadian and United States securities legislation, ‎respectively. All statements, other than statements of historical fact, included herein are forward-looking ‎information, including, for greater certainty, statements regarding the Amended Arrangement, including the likelihood of completion thereof, the ‎occurrence or waiver of the Triggering Event, the satisfaction or waiver of the closing conditions set out in the Arrangement Agreement and other statements with respect to the proposed transactions with Canopy Growth. ‎Often, but not always, forward-looking statements and information can be identified by the use of words such as ‎‎“plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, ‎or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, ‎‎‎“would”, “might” or “will” be taken, occur or be achieved. ‎

Forward-looking statements or information involve known and unknown risks, uncertainties and other ‎factors which may cause the actual results, performance or achievements of Acreage or its ‎subsidiaries to be materially different from any future results, performance or achievements expressed or ‎implied by the forward-looking statements or information contained in this news release. Risks, uncertainties and other factors involved with forward-looking ‎information could cause actual events, results, performance, prospects and opportunities to differ ‎materially from those expressed or implied by such forward-looking information, including, but not ‎limited to financing and liquidity risks, and the risks disclosed in the Circular, Acreage’s ‎management information circular dated May 17, 2019 filed on May 23, 2019, Acreage’s annual report on Form 10-K for the year ended ‎December 31, 2020 ‎dated March 25, 2021 and Acreage’s other public filings, in each case filed with the SEC on the EDGAR website at www.sec.gov and with ‎Canadian securities regulators ‎and available on the issuer profile of Acreage on SEDAR at www.sedar.com. Although Acreage has attempted to identify ‎important factors that could cause actual results to differ materially from those contained in forward-looking ‎information, there may be other factors that cause results not to be as anticipated, estimated or intended. ‎

Although Acreage believes that the ‎assumptions and factors used in preparing the forward-looking information or forward-looking ‎statements in this news release are reasonable, undue reliance should not be placed on such information ‎and no assurance can be given that such events will occur in the disclosed time frames or at all. The ‎forward-looking information and forward-looking statements included in this news release are made as of ‎the date of this news release and Acreage does not undertake any obligation to publicly update such ‎forward-looking information or forward-looking statements to reflect new information, subsequent events ‎or otherwise unless required by applicable securities laws.

Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed and does not accept ‎responsibility for the adequacy or accuracy of the content of this news release.‎

For more information contact:

Steve West
Vice President, Investor Relations
[email protected]
646-600-9181

April 30, 2021 7:33 am

PARTS iD, Inc. to Report First Quarter 2021 Results on May 10, 2021

PARTS iD, Inc. to Report First Quarter 2021 Results on May 10, 2021

CRANBURY, N.J.–(BUSINESS WIRE)–
PARTS iD, Inc. (NYSE American: ID) (“PARTS iD” or “Company”), the owner and operator of, among other verticals, “CARiD.com,” a leading digital commerce platform for the automotive aftermarket, announced today that the company will release its financial results for the first quarter ended March 31, 2021, after the market close on Monday, May 10, 2021. Management will host a conference call that afternoon (May 10, 2021) at 4:30 p.m. ET to discuss the financial results.

Investors and analysts interested in participating in the call are invited to dial (877) 407-9129 (domestic) or (201) 493-6753 (international). The conference call will also be available to interested parties through a live webcast at https://www.partsidinc.com/.

A telephone replay of the call will be available until May 24, 2021, by dialing (877) 660-6853 (domestic) or (201) 612-7415 (international) and entering the conference identification number: 13719455.

About PARTS iD, Inc.

PARTS iD is a technology-driven, digital commerce company focused on creating custom infrastructure and unique user experiences within niche markets. Founded in 2008 with a vision of creating a one-stop eCommerce destination for the automotive parts and accessories market, PARTS iD has since become a market leader and proven brand-builder, fueled by its commitment to delivering a revolutionary shopping experience; comprehensive, accurate and varied product offerings; and continued digital commerce innovation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005069/en/

Investors:

Brendon Frey

ICR

[email protected]

Media:

Cory Ziskind

ICR

[email protected]

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Other Retail Aftermarket Automotive Specialty Other Automotive Online Retail General Automotive Retail

MEDIA:

April 30, 2021 7:33 am

Fifth Third Bank Announces Redemption of Senior Bank Notes due July 26, 2021

Fifth Third Bank Announces Redemption of Senior Bank Notes due July 26, 2021

CINCINNATI–(BUSINESS WIRE)–
Fifth Third Bancorp (Nasdaq: FITB) today announced that its subsidiary, Fifth Third Bank, National Association (the “Bank”), has submitted a redemption notice to the issuing and paying agent for redemption of (1) all of the Bank’s outstanding 3.350% fixed rate senior notes due July 26, 2021 (CUSIP 31677QBN8) issued in the principal amount of $500 million, and (2) all of the Bank’s outstanding floating rate senior notes due July 26, 2021 (CUSIP 31677QBP3) issued in the principal amount of $300 million. The Bank notes will be redeemed on June 28, 2021 pursuant to their terms and conditions for an amount equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding, the redemption date.

About Fifth Third Bancorp

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of March 31, 2021, the Company had $207 billion in assets and operated 1,098 full-service Banking Centers, and 2,383 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of

March 31, 2021, had $464 billion in assets under care, of which it managed $58 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005054/en/

Chris Doll (Investor Relations)

[email protected] | 513-534-2345

Ed Loyd (Media Relations)

[email protected] | 513-534-6397

KEYWORDS: Ohio United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

Logo

April 30, 2021 7:33 am

Postal Realty Trust Declares First Quarter 2021 Dividend

Postal Realty Trust Declares First Quarter 2021 Dividend

– Increases Dividend for Seventh Consecutive Quarter –

CEDARHURST, N.Y.–(BUSINESS WIRE)–
Postal Realty Trust, Inc. (NYSE:PSTL) (the “Company”), an internally managed real estate investment trust (REIT) that owns and manages over 1,200 properties, including last mile, flex and industrial facilities leased to the United States Postal Service (USPS), announced today its board of directors has approved a quarterly dividend on the Company’s Class A common stock in the amount of $0.22 per share. The increase represents a 10% increase from its quarterly dividend declared one year ago. The dividend will be payable on May 28, 2021 to stockholders of record as of the close of business on May 14, 2021.

About Postal Realty Trust, Inc.

Postal Realty Trust, Inc. is an internally managed real estate investment trust (REIT) that owns and manages over 1,200 properties, including last mile, flex and industrial facilities leased to the USPS. More information is available at postalrealty.com

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements.” Forward-looking statements include statements that are based on various assumptions (some of which are beyond our control) and may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements, including statements regarding the Company’s ability to close on any pending transactions on the terms or timing it expects, if at all, are based on the Company’s current expectations and assumptions regarding capital market conditions the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the USPS’s terminations or non-renewals of leases, changes in demand for postal services delivered by the USPS, the solvency and financial health of the USPS, competitive, financial market and regulatory conditions, general real estate market conditions, the Company’s competitive environment and other factors set forth under “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005036/en/

Investor Relations and Media Relations

Email: [email protected]

Phone: 516-232-8900

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Other Construction & Property Commercial Building & Real Estate Construction & Property REIT

MEDIA:

April 30, 2021 7:32 am

ExxonMobil Earns $2.7 Billion in First Quarter 2021

ExxonMobil Earns $2.7 Billion in First Quarter 2021

First Quarter 2021 Results and Management Perspectives

Cash flow from operating activities of $9.3 billion fully funded dividend and capital expenditures, and drove debt reduction of over $4 billion
Lowered cash operating expenses versus the first and fourth quarters of 2020; on pace to deliver additional structural cost savings
Advanced several initiatives to reduce emissions and launched Low Carbon Solutions business to commercialize extensive low-carbon technology portfolio
Added three new directors to strengthen board experience in energy, capital allocation and complex business transitions

IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM):


	First Quarter	First Quarter	Fourth Quarter
	2021	2020	2020
Results Summary
(Dollars in millions, except per share data)
Earnings/(Loss) (U.S. GAAP)	2,730	(610)	(20,070)
Earnings/(Loss) Per Common Share
Assuming Dilution	0.64	(0.14)	(4.70)
Identified Items Per Common Share
Assuming Dilution	(0.01)	(0.67)	(4.73)
Earnings/(Loss) Excluding Identified Items
Per Common Share Assuming Dilution	0.65	0.53	0.03

Capital and Exploration Expenditures	3,133	7,143	4,771

Exxon Mobil Corporation today announced estimated first quarter 2021 earnings of $2.7 billion, or $0.64 per share assuming dilution, compared with a loss of $610 million in the first quarter of 2020. Results included unfavorable identified items of $31 million, or $0.01 per share assuming dilution. First quarter capital and exploration expenditures were $3.1 billion, $4 billion lower than the first quarter of 2020.

Oil-equivalent production was 3.8 million barrels per day, up 3 percent from the fourth quarter of 2020. Excluding entitlement effects, government mandates and divestments, oil-equivalent production was up 2 percent.

“The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply,” said Darren Woods, chairman and chief executive officer. “Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt. We also made progress on our energy transition strategy by launching our new ExxonMobil Low Carbon Solutions business, which is initially working to develop innovative, large-scale carbon capture and storage (CCS) concepts, including the evaluation and advancement of more than 20 new opportunities, such as a multi-industry hub to reduce emissions from hard-to-decarbonize industries near the Houston Ship Channel. As the global leader in carbon capture, we are seeing growing public and private sector support for CCS as a critical enabling technology to reduce emissions and help meet society’s net-zero ambitions.”

During severe winter weather in Texas in February, ExxonMobil cogeneration facilities generated 400 megawatts of electricity, helping to power about 200,000 homes. The severe weather event reduced first quarter earnings by nearly $600 million across all businesses from decreased production and lower sales volumes, repair costs, and the net impact of energy purchases and sales. All affected facilities have resumed normal operations.

First Quarter 2021 Results and Business Highlights

Upstream

Average realizations for crude oil increased 42 percent from the fourth quarter. Natural gas realizations rose by 33 percent in the quarter.
Total production volumes increased 98,000 oil-equivalent barrels per day from the fourth quarter. Excluding entitlement effects, government mandates and divestments, liquids volumes were down 3 percent including impacts from higher maintenance and the winter storm. Natural gas volumes increased 12 percent driven by higher seasonal demand in Europe.
During the quarter, production volumes in the Permian averaged 394,000 oil-equivalent barrels per day, an increase of 12 percent from the prior year. The focus remains on continuing to grow positive free cash flow by lowering overall development costs and increasing recovery through efficiency gains and technology applications.

Downstream

Industry fuels margins improved from the fourth quarter, but remained below 10-year-lows driven by market oversupply and high product inventory levels. Lubricants delivered strong performance, underpinned by lower costs and improved margins.
Despite winter storm disruptions, overall refining throughput was essentially flat with the fourth quarter as the company managed refinery operations in line with fuel demand and integrated chemical manufacturing needs.

Chemical

Industry margins improved further in the quarter reflecting continued strong demand, global shipping constraints, and ongoing supply disruptions, particularly in North America, where the polyethylene and polypropylene markets were affected by severe winter weather in Texas.
Strong first quarter Chemical earnings performance of $1.4 billion was supported by robust base operations capturing high margins and continued delivery of cost efficiencies.
ExxonMobil announced it is pursuing three new advanced recycling initiatives in the U.S. and Europe that further advance our commitment to sustainability and capture value from plastic waste at scale. The company plans to begin marketing certified circular plastics products later this year.

Strengthening the Portfolio

ExxonMobil signed an agreement valued at more than $1 billion for the sale of most of its non-operated upstream assets in the United Kingdom central and northern North Sea. The sale price, subject to closing adjustments, has potential additional upside of up to $300 million based on contingent payments associated with future commodity price increases. The transaction is expected to close near mid-year 2021, subject to regulatory and third-party approvals.
The company is progressing plans to convert both its Altona, Australia refinery, and Slagen refinery in Norway to fuel import terminals, ensuring ongoing, reliable fuel supply for their respective local markets. Final decisions were made following local consultation processes with employees and their representatives as part of extensive reviews of the long-term economic viability of both facilities.

Capital Allocation and Structural Cost Improvement

The company’s long-term capital allocation priorities remain investing in advantaged projects to drive cash flow, strengthening the balance sheet and maintaining a reliable dividend.
ExxonMobil’s 2021 capital program remains at $16 billion to $19 billion. If market conditions continue above the company’s planning basis, additional cash will be used to accelerate deleveraging.
In addition to $3 billion in structural cost reductions already achieved in 2020, the company is on pace to achieve $3 billion of further structural efficiencies through 2023 for a total of $6 billion relative to 2019. Efforts to identify additional structural savings resulting from the reorganizations completed in 2019 are continuing.

Reducing Emissions and Advancing Low Carbon Solutions

The company announced the creation of ExxonMobil Low Carbon Solutions, a new business to commercialize its extensive low-carbon technology portfolio, with an initial focus on carbon capture and storage (CCS), the process of sequestering industrial emissions and safely storing them permanently underground. CCS is considered one of the critical technologies required to achieve society’s net-zero ambitions and the climate goals outlined in the Paris Agreement.
In April, ExxonMobil introduced the innovative concept of a multi-industry CCS hub along the Houston Ship Channel and surrounding industrial areas to capture CO2 emissions from area industry, including petrochemical, manufacturing and power generation facilities. The concept would require large-scale collaboration and policy advancements among governments, private industry, and local communities.
ExxonMobil became the first company to file an application with the U.S. Environmental Protection Agency (EPA) to use new aerial technologies to detect methane emissions at oil and natural gas sites.
ExxonMobil and Porsche are testing advanced biofuels and renewable, lower-carbon eFuels, as part of a new agreement to find pathways toward potential future consumer adoption of fuels that could significantly reduce emissions.

Ongoing Board Refreshment

During the quarter, ExxonMobil announced the elections of Michael Angelakis, Jeffrey Ubben, and Wan Zulkiflee to its board of directors. With the addition of the new members, the ExxonMobil board increased to 13 directors, 12 of whom are independent. The company has added six new independent directors since 2017 with specific experience in the areas of climate science, asset and risk management, capital allocation, energy and business transition, investor perspectives, and additional energy industry experience.


Results and Volume Summary
Millions of Dollars	1Q	1Q
(unless noted)	2021	2020	Change	Comments
Upstream
U.S.	363	(704)	+1,067	Winter storm impact more than offset by higher prices and reduced expenses; prior quarter unfavorable identified items (impairment +315, inventory valuation +45)
Non-U.S.	2,191	1,240	+951	Higher prices and reduced expenses, partly offset by lower volumes and unfavorable foreign exchange; prior quarter unfavorable identified items (inventory valuation +218, impairment +41)
Total	2,554	536	+2,018	Winter storm -240, prices +1,690, volume -320, expenses +430, identified items +620, other -160
Production (koebd)	3,787	4,046	-259	Liquids -222 kbd: government mandates, lower entitlements, and winter storm impact (-25) Gas -223 mcfd: decline, higher downtime/maintenance, winter storm impact (-105), and Groningen production limit, partly offset by higher demand and project growth
Downstream
U.S.	(113)	(101)	-12	Winter storm impact and lower margins driven by weaker industry refining conditions, partly offset by reduced expenses and favorable other impacts; prior quarter unfavorable identified items (+411, mainly inventory valuation)
Non-U.S.	(277)	(510)	+233	Lower margins including net unfavorable mark to market impact on unsettled derivatives, net unfavorable one-time items, and unfavorable foreign exchange, partly offset by reduced expenses; prior quarter unfavorable identified items (inventory valuation +1,196, impairments +335)
Total	(390)	(611)	+221	Winter storm -130, margins -1,880, expenses +410, identified items +1,940, forex/other -120
Petroleum Product Sales (kbd)	4,881	5,287	-406
Chemical
U.S.	715	288	+427	Winter storm impact more than offset by higher margins, stronger demand, and reduced expenses; prior quarter unfavorable identified item (+90, impairment)
Non-U.S.	700	(144)	+844	Higher margins, stronger demand, reduced expenses, and favorable foreign exchange; prior quarter unfavorable identified items (+232, mainly inventory valuation)
Total	1,415	144	+1,271	Winter storm -230, margins +740, demand +130, expenses +240, identified items +320, forex/other +70
Prime Product Sales (kt)	6,446	6,237	+209
Corporate and financing	(849)	(679)	-170	Higher retirement-related expenses

Results and Volume Summary
Millions of Dollars	1Q	4Q
(unless noted)	2021	2020	Change	Comments
Upstream
U.S.	363	(16,803)	+17,166	Higher prices and reduced expenses, partly offset by winter storm impact and lower volumes; prior quarter unfavorable identified item (impairment +16,777)
Non-U.S.	2,191	(1,729)	+3,920	Higher prices and seasonal gas volumes; prior quarter unfavorable identified items (impairment +2,203, tax item +297)
Total	2,554	(18,532)	+21,086	Winter storm -240, prices +2,070, volume -80, expenses +170, identified items +19,280, other -110
Production (koebd)	3,787	3,689	+98	Liquids -67 kbd: lower entitlements, winter storm impact (-25), and increased downtime/maintenance, partly offset by reduced government mandates Gas +988 mcfd: higher seasonal demand, reduced downtime/maintenance, and net growth, partly offset by winter storm impact (-105)
Downstream
U.S.	(113)	(514)	+401	Higher margins on improved industry refining conditions, reduced expenses, and prior quarter unfavorable LIFO inventory impact (+78), partly offset by winter storm impact, lower manufacturing volumes, and net unfavorable one-time items
Non-U.S.	(277)	(697)	+420	Reduced expenses and higher margins driven by more favorable industry refining conditions, offset by prior quarter favorable LIFO inventory impact (-207), unfavorable foreign exchange, terminal conversion costs, and lower demand; prior quarter unfavorable identified items (impairment +258, tax item +262)
Total	(390)	(1,211)	+821	Winter storm -130, margins +490, demand -40, expenses +380, manufacturing -40, identified items +520, LIFO/forex -210, other -150
Petroleum Product Sales (kbd)	4,881	4,833	+48
Chemical
U.S.	715	461	+254	Winter storm more than offset by stronger margins, demand, and reduced expenses
Non-U.S.	700	230	+470	Higher margins, reduced expenses, and prior quarter unfavorable LIFO inventory impact (+84) and other charges
Total	1,415	691	+724	Winter storm -230, margins +500, demand +100, expenses +150, identified items +20, LIFO/other +180
Prime Product Sales (kt)	6,446	6,643	-197
Corporate and financing	(849)	(1,018)	+169	Absence of identified items (mainly severance +330), partly offset by net unfavorable tax impacts and retirement-related expenses

Cash Flow from Operations and Asset Sales excluding Working Capital
Millions of Dollars			1Q
			2021	Comments
Net income (loss) including noncontrolling interests			2,796	Including $66 million noncontrolling interests
Depreciation and depletion			5,004
Changes in operational working capital			1,953	Higher net payables and inventory draw
Other			(489)
Cash Flow from Operating			9,264
Activities (U.S. GAAP)
Asset sales			307	Including U.K. upstream divestment deposit and U.S. upstream asset sales
Cash Flow from Operations			9,571
and Asset Sales
Changes in operational working capital			(1,953)
Cash Flow from Operations			7,618
and Asset Sales excluding Working Capital

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on April 30, 2021. To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Cautionary Statement

Outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions in this release are forward-looking statements. Actual future results, including financial and operating performance; planned capital and cash operating expense reductions and ability to meet or exceed announced reduction objectives; plans to reduce future emissions intensity and the expected resulting absolute emission reductions; progressing carbon capture projects and results; total capital expenditures and mix; cash flow, dividend and shareholder returns; business and project plans, timing, costs and capacities; resource recoveries and production rates; and accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions, could differ materially due to a number of factors. These include the continuity of our board of directors and their strategic oversight; global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market conditions that impact prices and differentials; the impact of company actions to protect the health and safety of employees, vendors, customers, and communities; actions of competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the severity, length and ultimate impact of COVID-19 and government responses on people and economies; reservoir performance; the outcome of exploration projects and timely completion of development and construction projects; changes in law, taxes, or regulation including environmental regulations, and timely granting of governmental permits; government policies and support for low carbon technologies like carbon capture; war, trade agreements and patterns, shipping blockades or harassment, and other political or security disturbances; opportunities for and regulatory approval of potential investments or divestments; the actions of competitors; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning; unforeseen technical or operating difficulties; the development and competitiveness of alternative energy and emission reduction technologies; the results of research programs; the ability to bring new technologies to commercial scale on a cost-competitive basis; general economic conditions including the occurrence and duration of economic recessions; and other factors discussed under Item 1A. Risk Factors of ExxonMobil’s 2020 Form 10-K.

Frequently Used Terms and Non-GAAP Measures

This press release includes cash flow from operations and asset sales. Because of the regular nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities. A reconciliation to net cash provided by operating activities for first quarter 2021 is shown on page 6 and for 2021 and 2020 periods in Attachment V.

This press release also includes cash flow from operations and asset sales excluding working capital. We believe it is useful for investors to consider these numbers in comparing the underlying performance of our business across periods when there are significant period-to-period differences in the amount of changes in working capital. A reconciliation to net cash provided by operating activities for first quarter 2021 is shown on page 6 and for 2021 and 2020 periods in Attachment V.

This press release also includes earnings/(loss) excluding identified items, which are earnings/(loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings/(loss) impact of an identified item for an individual segment may be less than $250 million when the item impacts several periods or several segments. We believe it is useful for investors to consider these figures in comparing the underlying performance of our business across periods when one, or both, periods include identified items. A reconciliation to earnings is shown for 2021 and 2020 periods in Attachments II-a and II-b. Corresponding per share amounts are shown on page 1 and in Attachment II-a, including a reconciliation to earnings/(loss) per common share – assuming dilution (U.S. GAAP).

This press release also includes total taxes including sales-based taxes. This is a broader indicator of the total tax burden on the corporation’s products and earnings, including certain sales and value-added taxes imposed on and concurrent with revenue-producing transactions with customers and collected on behalf of governmental authorities (“sales-based taxes”). It combines “Income taxes” and “Total other taxes and duties” with sales‑based taxes, which are reported net in the income statement. We believe it is useful for the corporation and its investors to understand the total tax burden imposed on the corporation’s products and earnings. A reconciliation to total taxes is shown as part of the Estimated Key Financial and Operating Data in Attachment I.

References to the resource base and other quantities of oil, natural gas or condensate may include estimated amounts that are not yet classified as “proved reserves” under SEC definitions, but which are expected to be ultimately recoverable. The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Further information on ExxonMobil’s frequently used financial and operating measures and other terms including “Cash operating expenses”, “Cash flow from operations and asset sales”, and “Total taxes including sales-based taxes” is contained under the heading “Frequently Used Terms” available through the “Investors” section of our website at www.exxonmobil.com.

Reference to Earnings

References to corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings, Upstream, Downstream, Chemical and Corporate and financing segment earnings, and earnings per share are ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships.

Important Additional Information Regarding Proxy Solicitation

Exxon Mobil Corporation (“ExxonMobil”) has filed a definitive proxy statement and form of associated BLUE proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for ExxonMobil’s 2021 Annual Meeting (the “Proxy Statement”). ExxonMobil, its directors and certain of its executive officers will be participants in the solicitation of proxies from shareholders in respect of the 2021 Annual Meeting. Information regarding the names of ExxonMobil’s directors and executive officers and their respective interests in ExxonMobil by security holdings or otherwise is set forth in the Proxy Statement. To the extent holdings of such participants in ExxonMobil’s securities are not reported, or have changed since the amounts described, in the Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. Details concerning the nominees of ExxonMobil’s Board of Directors for election at the 2021 Annual Meeting are included in the Proxy Statement. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE SEC, INCLUDING THE COMPANY’S DEFINITIVE PROXY STATEMENT AND ANY SUPPLEMENTS THERETO AND ACCOMPANYING BLUE PROXY CARD, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and shareholders can obtain a copy of the Proxy Statement and other relevant documents filed by ExxonMobil free of charge from the SEC’s website, www.sec.gov. ExxonMobil’s shareholders can also obtain, without charge, a copy of the Proxy Statement and other relevant filed documents by directing a request by mail to ExxonMobil Shareholder Services at 5959 Las Colinas Boulevard, Irving, Texas, 75039-2298 or at [email protected] or from the investor relations section of ExxonMobil’s website, www.exxonmobil.com/investor.

Estimated Key Financial and Operating Data

Attachment I

Exxon Mobil Corporation

First Quarter 2021

(millions of dollars, unless noted)

First

First

Fourth

Quarter

Quarter

Quarter

2021

2020

2020

Earnings (Loss) / Earnings (Loss) Per Share

Total revenues and other income

59,147

56,158

46,540

Total costs and other deductions

55,555

56,416

73,153

Income (loss) before income taxes

3,592

(258)

(26,613)

Income taxes

796

512

(6,010)

Net income (loss) including noncontrolling interests

2,796

(770)

(20,603)

Net income (loss) attributable to noncontrolling interests

66

(160)

(533)

Net income (loss) attributable to ExxonMobil (U.S. GAAP)

2,730

(610)

(20,070)

Earnings (loss) per common share (dollars)

0.64

(0.14)

(4.70)

Earnings (loss) per common share

– assuming dilution (dollars)

0.64

(0.14)

(4.70)

Exploration expenses, including dry holes

164

288

595

Other Financial Data

Dividends on common stock

Total

3,720

3,719

3,715

Per common share (dollars)

0.87

0.87

0.87

Millions of common shares outstanding

At period end

4,234

4,228

4,233

Average – assuming dilution

4,272

4,270

4,272

ExxonMobil share of equity at period end

156,974

182,079

157,150

ExxonMobil share of capital employed at period end

222,610

244,026

227,137

Income taxes

796

512

(6,010)

Total other taxes and duties

7,283

7,497

7,344

Total taxes

8,079

8,009

1,334

Sales-based taxes

4,662

4,485

4,364

Total taxes including sales-based taxes

12,741

12,494

5,698

ExxonMobil share of income taxes of

equity companies

600

460

285

Attachment II-a

Exxon Mobil Corporation

First Quarter 2021

First

First

Fourth

$ Millions

Quarter

Quarter

Quarter

2021

2020

2020

Earnings/(Loss) (U.S. GAAP)

2,730

(610)

(20,070)

Identified Items Included in Earnings/(Loss)

Noncash inventory valuation – lower of cost or market

—

(2,096)

—

Impairments

—

(787)

(19,273)

Tax

—

—

(581)

Other items (severance – global workforce review)

(31)

—

(326)

Corporate total

(31)

(2,883)

(20,180)

Earnings Excluding Identified Items

2,761

2,273

110

$ Per Common Share¹

Earnings/(Loss) Per Common Share

Assuming Dilution (U.S. GAAP)

0.64

(0.14)

(4.70)

Identified Items Included in Earnings/(Loss) Per Common Share

Assuming Dilution

Noncash inventory valuation – lower of cost or market

—

(0.49)

—

Impairments

—

(0.18)

(4.51)

Tax

—

—

(0.14)

Other items (severance – global workforce review)

(0.01)

—

(0.08)

Corporate total

(0.01)

(0.67)

(4.73)

Earnings Excluding Identified Items Per Common Share

Assuming Dilution

0.65

0.53

0.03

¹ Computed using the average number of shares outstanding during each period.

Attachment II-b

Exxon Mobil Corporation

First Quarter 2021

(millions of dollars)

First

First

Fourth

Quarter

Quarter

Quarter

2021

2020

2020

Earnings/(Loss) (U.S. GAAP)

Upstream

United States

363

(704)

(16,803)

Non-U.S.

2,191

1,240

(1,729)

Downstream

United States

(113)

(101)

(514)

Non-U.S.

(277)

(510)

(697)

Chemical

United States

715

288

461

Non-U.S.

700

(144)

230

Corporate and financing

(849)

(679)

(1,018)

Net income (loss) attributable to ExxonMobil

2,730

(610)

(20,070)

Identified Items Included in Earnings/(Loss)

U.S. Upstream

Impairments

—

(315)

(16,777)

Other items (Inventory valuation)

—

(45)

—

Non-U.S. Upstream

Impairments

—

(41)

(2,203)

Tax Items

—

—

(297)

Other Items (Inventory valuation)

—

(218)

—

U.S. Downstream

Other Items (Inventory valuation, Impairment)

—

(411)

—

Non-U.S. Downstream

Impairments

—

(335)

(258)

Tax Items

—

—

(262)

Other Items (Inventory valuation)

—

(1,196)

—

U.S. Chemical

Impairment

—

(90)

—

Non-U.S. Chemical

Tax Items

—

—

(22)

Other Items (Inventory valuation, Impairment)

—

(232)

—

Corporate and financing

Other Items (Severance – global workforce review, Impairment)

(31)

—

(361)

Corporate total

(31)

(2,883)

(20,180)

Earnings/(Loss) Excluding Identified Items

Upstream

United States

363

(344)

(26)

Non-U.S.

2,191

1,499

771

Downstream

United States

(113)

310

(514)

Non-U.S.

(277)

1,021

(177)

Chemical

United States

715

378

461

Non-U.S.

700

88

252

Corporate and financing

(818)

(679)

(657)

Corporate total

2,761

2,273

110

Attachment III

Exxon Mobil Corporation

First Quarter 2021

First

First

Fourth

Quarter

Quarter

Quarter

2021

2020

2020

Net production of crude oil, natural gas

liquids, bitumen and synthetic oil,

thousand barrels per day (kbd)

United States

665

699

719

Canada / Other Americas

575

558

619

Europe

35

30

32

Africa

253

360

258

Asia

691

795

658

Australia / Oceania

39

38

39

Worldwide

2,258

2,480

2,325

Natural gas production available for sale,

million cubic feet per day (mcfd)

United States

2,767

2,825

2,686

Canada / Other Americas

216

317

253

Europe

1,403

1,293

848

Africa

24

7

12

Asia

3,599

3,710

3,225

Australia / Oceania

1,164

1,244

1,161

Worldwide

9,173

9,396

8,185

Oil-equivalent production (koebd)¹

3,787

4,046

3,689

¹ Natural gas converted to an oil-equivalent basis at 6 million cubic feet per 1 thousand barrels.

Attachment IV

Exxon Mobil Corporation

First Quarter 2021

First

First

Fourth

Quarter

Quarter

Quarter

2021

2020

2020

Refinery throughput (kbd)

United States

1,532

1,558

1,594

Canada

364

383

359

Europe

1,153

1,295

1,130

Asia Pacific

545

637

522

Other

157

187

150

Worldwide

3,751

4,060

3,755

Petroleum product sales (kbd)

United States

2,077

2,231

2,128

Canada

409

456

415

Europe

1,272

1,403

1,227

Asia Pacific

665

708

645

Other

458

489

418

Worldwide

4,881

5,287

4,833

Gasolines, naphthas

1,996

2,122

2,039

Heating oils, kerosene, diesel

1,692

1,867

1,739

Aviation fuels

183

383

172

Heavy fuels

257

256

237

Specialty products

753

659

646

Worldwide

4,881

5,287

4,833

Chemical prime product sales,

thousand metric tons (kt)

United States

2,190

2,195

2,467

Non-U.S.

4,256

4,042

4,176

Worldwide

6,446

6,237

6,643

Attachment V

Exxon Mobil Corporation

First Quarter 2021

(millions of dollars)

First

First

Fourth

Quarter

Quarter

Quarter

2021

2020

2020

Capital and Exploration Expenditures

Upstream

United States

810

2,798

1,122

Non-U.S.

1,547

2,328

1,812

Total

2,357

5,126

2,934

Downstream

United States

271

747

488

Non-U.S.

199

487

674

Total

470

1,234

1,162

Chemical

United States

208

597

435

Non-U.S.

98

185

240

Total

306

782

675

Other

—

1

—

Worldwide

3,133

7,143

4,771

Cash Flow from Operations and Asset Sales excluding Working Capital

Net cash provided by operating activities

(U.S. GAAP)

9,264

6,274

4,005

Proceeds associated with asset sales

307

86

770

Cash flow from operations and asset sales

9,571

6,360

4,775

Changes in operational working capital

(1,953)

942

114

Cash flow from operations and asset sales

7,618

7,302

4,889

excluding working capital

Attachment VI

Exxon Mobil Corporation

Earnings/(Loss)

$ Millions

$ Per Common Share¹

2017

First Quarter

4,010

0.95

Second Quarter

3,350

0.78

Third Quarter

3,970

0.93

Fourth Quarter

8,380

1.97

Year

19,710

4.63

2018

First Quarter

4,650

1.09

Second Quarter

3,950

0.92

Third Quarter

6,240

1.46

Fourth Quarter

6,000

1.41

Year

20,840

4.88

2019

First Quarter

2,350

0.55

Second Quarter

3,130

0.73

Third Quarter

3,170

0.75

Fourth Quarter

5,690

1.33

Year

14,340

3.36

2020

First Quarter

(610)

(0.14)

Second Quarter

(1,080)

(0.26)

Third Quarter

(680)

(0.15)

Fourth Quarter

(20,070)

(4.70)

Year

(22,440)

(5.25)

2021

First Quarter

2,730

0.64

¹Computed using the average number of shares outstanding during each period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005293/en/

ExxonMobil

Media Relations, 972-940-6007

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Oil/Gas Energy

MEDIA:

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Posted on April 30, 2021 7:29 am
So-Young International Inc. Files Its Annual Report on Form 20-F

BEIJING, April 30, 2021 (GLOBE NEWSWIRE) — So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”), the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry, today announced it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2020 with the Securities and Exchange Commission on April 30, 2021. The annual report is available on the Company’s investor relations website at http://ir.soyoung.com/.

The Company will provide a hard copy of its annual report containing the audited consolidated financial statements, free of charge, to its shareholders and ADS holders upon request. Requests should be submitted to [email protected].

About So-Young International Inc.

So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”) is the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry. The Company presents users with reliable information through offering high quality and trustworthy content together with a multitude of social functions on its platform, as well as by curating medical aesthetic service providers that are carefully selected and vetted. Leveraging So-Young’s strong brand image, extensive audience reach, trust from its users, highly engaging social community and data insights, the Company is well-positioned to expand both along the medical aesthetic industry value chain and into the massive, fast-growing consumption healthcare service market.

For more information, please contact:

So-Young

Investor Relations
Ms. Vivian XU
Phone: +86-10-8790-2012
E-mail: [email protected]

Christensen

In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: [email protected]

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

Posted on April 30, 2021 7:23 am
Phillips 66 Partners reports first-quarter 2021 financial results

Phillips 66 Partners reports first-quarter 2021 financial results

Reported a first-quarter loss of $18 million and adjusted EBITDA of $289 million

Announced quarterly distribution of $0.875 per common unit

Reached agreement to exit the Liberty Pipeline joint venture

South Texas Gateway Terminal commissioned additional storage, completing the project

Progressed C2G Pipeline construction

HOUSTON–(BUSINESS WIRE)–
Phillips 66 Partners LP (NYSE: PSXP) announces a first-quarter 2021 loss of $18 million, or $0.13 per diluted common unit. Cash from operations was $227 million, and distributable cash flow was $233 million. Adjusted EBITDA was $289 million in the first quarter, compared with $318 million in the prior quarter.

“Our first-quarter results reflect winter storm impacts and our decision to exit the Liberty Pipeline project,” said Greg Garland, Phillips 66 Partners Chairman and CEO. “We operated our assets safely despite the weather-related challenges. The South Texas Gateway Terminal commissioned additional storage, and we are nearing completion of the C2G Pipeline construction. We remain focused on operating excellence, a strong balance sheet and disciplined capital allocation.”

On April 20, 2021, the general partner’s board of directors declared a first-quarter 2021 cash distribution of $0.875 per common unit, or $3.50 per unit on an annualized basis.

Financial Results

Phillips 66 Partners’ first-quarter 2021 loss was $18 million, compared with earnings of $104 million in the fourth quarter. The decrease was mainly due to a $198 million impairment in the first quarter of 2021 resulting from the Partnership’s decision to exit the Liberty Pipeline project, compared with impairments of $96 million in the fourth quarter of 2020. The Partnership reported adjusted EBITDA of $289 million in the first quarter, compared with $318 million in the prior quarter. The decrease in adjusted EBITDA was primarily due to reduced volumes and higher utility costs at the Partnership’s wholly owned and joint venture assets, largely due to the severe winter storms impacting the Central and Gulf Coast regions in the first quarter of 2021.

Liquidity, Capital Expenditures and Investments

As of March 31, 2021, total debt outstanding was $3.9 billion. The Partnership had $3 million in cash and cash equivalents and $299 million available under its revolving credit facility.

The Partnership’s capital expenditures and investments for the quarter were $58 million. Growth capital included spend on the C2G Pipeline project and investment in the South Texas Gateway Terminal.

On April 1, 2021, Phillips 66 Partners repaid the two remaining $25 million tranches of tax-exempt bonds, totaling $50 million. Also in April, the Partnership borrowed $450 million under a new term loan agreement. Proceeds were primarily used to repay amounts borrowed under the Partnership’s $750 million revolving credit facility.

Strategic Update

The South Texas Gateway Terminal commissioned additional storage capacity, bringing total capacity to 8.6 million barrels and marking completion of the final construction phase. The marine export terminal has two deepwater docks with up to 800,000 barrels per day of export capacity. Phillips 66 Partners owns a 25% interest in the terminal.

Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments and is expected to be completed in mid-2021.

Investor Webcast

Members of Phillips 66 Partners executive management will host a webcast today at 2 p.m. EDT to discuss the Partnership’s first-quarter performance. To listen to the conference call and view related presentation materials, go to www.phillips66partners.com/events. For detailed supplemental information, go to www.phillips66partners.com/reports.

About Phillips 66 Partners

Headquartered in Houston, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets. For more information, visit www.phillips66partners.com.

^{CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS}

^{This news release contains certain forward-looking statements as defined under the federal securities laws. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: the continued ability of Phillips 66 to satisfy its obligations under our commercial and other agreements; the volume of crude oil, refined petroleum products and NGL we or our equity affiliates transport, fractionate, terminal and store; the tariff rates with respect to volumes transported through our regulated assets, which are subject to review and possible adjustment by federal and state regulators; fluctuations in the prices for crude oil, refined petroleum products and NGL; the continuing effects of the COVID-19 pandemic and its negative impact on the demand for refined products; changes in governmental policies relating to crude oil, refined petroleum products or NGL pricing, regulation, taxation, or exports; liabilities associated with the risks and operational hazards inherent in transporting, fractionating, terminaling and storing crude oil, refined petroleum products and NGL; curtailment of operations due to accidents, severe weather (including as a result of climate change) or natural disasters, riots, strikes or lockouts; the inability to obtain or maintain permits, in a timely manner or at all, and the possible revocation or modification of permits; our ability to successfully execute growth strategies; the operation, financing and distribution decisions of our equity affiliates; costs to comply with environmental laws and safety regulations; failure of information technology due to various causes, including unauthorized access or attacks; changes to the costs to deliver and transport crude oil, refined petroleum products and NGL; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; the failure to complete construction of capital projects on time and within budget; general domestic and international economic and political developments including armed hostilities, expropriation of assets, and other political, economic or diplomatic developments, including those caused by public health issues; our ability to comply with our debt covenants and to incur additional indebtedness on favorable terms; changes in tax, environmental and other laws and regulations; and other economic, business, competitive and/or regulatory factors affecting Phillips 66 Partners’ businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 Partners is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.}

^{Use of Non-GAAP Financial Information}^{—This news release includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow” and “coverage ratio.” These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance of the Partnership with other companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our ability to generate sufficient cash flow to make distributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. Our coverage ratio is calculated as distributable cash flow divided by total cash distributions and is included to help indicate the Partnership’s ability to pay cash distributions from current earnings. The GAAP performance measure most directly comparable to EBITDA and adjusted EBITDA is net income (loss). The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operating activities. The GAAP financial measure most comparable to our coverage ratio is calculated as net cash provided by operating activities divided by total cash distributions. These non-GAAP financial measures should not be considered as alternatives to their comparable GAAP measures. They have important limitations as analytical tools because they exclude some but not all items that affect their corresponding GAAP measures. They should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDA, distributable cash flow and coverage ratio may be defined differently by other companies in our industry, our definition of those measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.}

^{Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in this release.}

^{References in the release to earnings or losses refer to net income or losses attributable to the Partnership. References to EBITDA refer to earnings before interest, income taxes, depreciation and amortization.}

Results of Operations (Unaudited)

Summarized Financial Statement Information

Millions of Dollars

Except as Indicated

Q1 2021

Q4 2020

Selected Income Statement Data

Total revenues and other income

$

376

390

Net income (loss)

(11)

111

Net income (loss) attributable to the Partnership

(18)

104

Adjusted EBITDA

289

318

Distributable cash flow

233

240

Net Income (Loss) Attributable to the Partnership Per Limited Partner Unit—Diluted (Dollars)

Common units

$

(0.13)

0.40

Selected Balance Sheet Data

Cash and cash equivalents

$

3

7

Equity investments

3,029

3,244

Total assets

7,053

7,258

Total debt

3,944

3,909

Equity held by public

Preferred units

749

749

Common units

2,647

2,706

Equity held by Phillips 66

Common units

(828)

(656)

Statement of Income (Loss)

Millions of Dollars

Q1 2021

Q4 2020

Revenues and Other Income

Operating revenues—related parties

$

245

258

Operating revenues—third parties

7

7

Equity in earnings of affiliates

124

124

Other income

—

1

Total revenues and other income

376

390

Costs and Expenses

Operating and maintenance expenses

95

85

Depreciation

34

39

Impairments

198

96

General and administrative expenses

17

16

Taxes other than income taxes

10

10

Interest and debt expense

33

32

Total costs and expenses

387

278

Income (loss) before income taxes

(11)

112

Income tax expense

—

1

Net Income (Loss)

(11)

111

Less: Net income attributable to noncontrolling interest

7

7

Net Income (Loss) Attributable to the Partnership

(18)

104

Less: Preferred unitholders’ interest in net income (loss) attributable to the Partnership

12

12

Limited Partners’ Interest in Net Income (Loss) Attributable to the Partnership

$

(30)

92

Selected Operating Data

Q1 2021

Q4 2020

Wholly Owned Operating Data

Pipelines

Pipeline revenues (millions of dollars)

$

104

111

Pipeline volumes⁽¹⁾(thousands of barrels daily)

Crude oil

796

843

Refined petroleum products and natural gas liquids

809

877

Total

1,605

1,720

Average pipeline revenue per barrel (dollars)

$

0.71

0.70

Terminals

Terminal revenues (millions of dollars)

$

39

41

Terminal throughput (thousands of barrels daily)

Crude oil⁽²⁾

374

283

Refined petroleum products

657

711

Total

1,031

994

Average terminaling revenue per barrel (dollars)

$

0.41

0.44

Storage, processing and other revenues (millions of dollars)

$

109

113

Total Operating Revenues (millions of dollars)

$

252

265

Joint Venture Operating Data⁽³⁾

Crude oil, refined petroleum products and natural gas liquids (thousands of barrels daily)

1,052

1,102

^{(1) Represents the sum of volumes transported through each separately tariffed pipeline segment.}

^{(2) Bayway and Ferndale rail rack volumes included in crude oil terminals.}

^{(3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates.}

Cash Distributions

Millions of Dollars

Except as Indicated

Q1 2021

Q4 2020

Cash Distributions^†

Common units—public

$

52

51

Common units—Phillips 66

148

149

Total

$

200

200

Cash Distribution Per Common Unit (Dollars)

$

0.875

0.875

Coverage Ratio*

1.17

1.20

^{†Cash distributions declared attributable to the indicated periods.}

^{*Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership’s ability to pay cash distributions from current earnings. Net cash provided by operating activities divided by total cash distributions was 1.14x and 0.85x at Q1 2021 and Q4 2020, respectively.}

Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income (Loss) Attributable to the Partnership

Millions of Dollars

Q1 2021

Q4 2020

Net Income (Loss) Attributable to the Partnership

$

(18)

104

Plus:

Net income attributable to noncontrolling interest

7

7

Net Income (Loss)

(11)

111

Plus:

Depreciation

34

39

Net interest expense

33

32

Income tax expense

—

1

EBITDA

56

183

Plus:

Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments

49

54

Expenses indemnified or prefunded by Phillips 66

—

1

Impairments

198

96

Less:

Adjusted EBITDA attributable to noncontrolling interest

14

16

Adjusted EBITDA

289

318

Plus:

Deferred revenue impacts*^†

9

4

Less:

Equity affiliate distributions less than proportional adjusted EBITDA

14

5

Maintenance capital expenditures^†

6

33

Net interest expense

33

32

Preferred unit distributions

12

12

Distributable Cash Flow

$

233

240

^*^{Difference between cash receipts and revenue recognition.}

^{†Excludes Merey Sweeny capital reimbursements and turnaround impacts.}

Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Cash Provided by Operating Activities

Millions of Dollars

Q1 2021

Q4 2020

Net Cash Provided by Operating Activities

$

227

170

Plus:

Net interest expense

33

32

Income tax expense

—

1

Changes in working capital

(11)

75

Undistributed equity earnings

5

2

Impairments

(198)

(96)

Deferred revenues and other liabilities

—

1

Other

—

(2)

EBITDA

56

183

Plus:

Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments

49

54

Expenses indemnified or prefunded by Phillips 66

—

1

Impairments

198

96

Less:

Adjusted EBITDA attributable to noncontrolling interest

14

16

Adjusted EBITDA

289

318

Plus:

Deferred revenue impacts*^†

9

4

Less:

Equity affiliate distributions less than proportional adjusted EBITDA

14

5

Maintenance capital expenditures^†

6

33

Net interest expense

33

32

Preferred unit distributions

12

12

Distributable Cash Flow

$

233

240

^*^{Difference between cash receipts and revenue recognition.}

^{†Excludes Merey Sweeny capital reimbursements and turnaround impacts.}

View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005077/en/

Jeff Dietert (investors)

832-765-2297

[email protected]

Shannon Holy (investors)

832-765-2297

[email protected]

Thaddeus Herrick (media)

855-841-2368

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Professional Services Chemicals/Plastics Oil/Gas Manufacturing Energy Finance

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