Market Newsdesk

First Quarter Summary:

• Net income of $6.9 million, or $0.57 per diluted share, up from a net loss of $11.8 million, or $1.00 per diluted share a year ago and down from net income of $15.3 million, or $1.28 per diluted share last quarter
• Ended the quarter with total stockholders’ equity of $201.7 million and a consolidated equity-to-assets ratio of 20.73%
• Total 30+ day delinquencies were 1.16%, down from 1.79% in the prior year and 1.63% in the fourth quarter; annualized net charge-offs of 1.67%, compared with 2.57% in the fourth quarter and 3.11% in the first quarter last year
• Total sourced origination volume of $83.8 million, down 0.3% from the prior quarter, and down 46.8% year-over-year. Average total finance receivables were $833.5 million, down 17.4% year-over-year
• Loss provision net benefit of $2.9 million with ending allowance for credit losses of $38.9 million; allowance as a percentage of receivables was 4.64% for equipment finance and 5.51% for working capital, down from prior quarter percentages of 5.07% for equipment finance and 6.02% for working capital;

MOUNT LAUREL, N.J., April 29, 2021 (GLOBE NEWSWIRE) — Marlin Business Services Corp. (NASDAQ: MRLN), a nationwide provider of capital solutions to small businesses (“Marlin” or the “Company”), today reported first quarter 2021 net income of $6.9 million, or $0.57 per diluted share, compared with net income of $15.3 million, or $1.28 per diluted share in the prior quarter, and a net loss of $11.8 million, or $1.00 per diluted share a year ago.

Commenting on the Company’s results, Jeffrey A. Hilzinger, Marlin’s President and CEO, said, “Marlin’s first quarter results are highlighted by solid credit quality, improving origination volume trends and strong earnings. Our portfolio performed better than expected during the first quarter with delinquency and net charge-off metrics in-line with, or below, pre-pandemic levels. This, coupled with an improving macro-economic outlook resulted in a net release in loss reserves established last year in response to the pandemic. At the bottom line, net income of $6.9 million, or $0.57 per diluted share, expanded significantly from a year ago.”

Results of Operations

Total sourced origination volume for the first quarter of $83.8 million was down 46.8% from a year ago. Direct origination volume of $7.4 million in the first quarter was down 80.3% from $37.8 million in the first quarter of 2020. Indirect origination volume in the first quarter of 2021 was $76.2 million, down 33.0% from $113.8 million in the first quarter last year. Net Investment in Leases and Loans was $797.4 million, down 17.8% from first quarter last year, while total managed assets stood at approximately $1.0 billion, down 23.2% from the first quarter last year.

Net interest and fee margin as a percentage of average finance receivables was 8.39% for the first quarter, up 3 basis points from the fourth quarter of 2020 and down 95 basis points from a year ago. The sequential quarter increase was driven primarily by a decrease in interest expense resulting from lower deposit rates, partially offset by a decrease in new origination loan and lease yields, interest income, and lower fee income. The year-over-year decrease in margin percentage was primarily related to the decrease in new origination loan and lease yields and interest income. The Company’s interest expense as a percent of average total finance receivables was 157 basis points in the first quarter of 2021 compared with 187 basis points for the prior quarter and 225 basis points for the first quarter of 2020, resulting from lower rates and a shift in mix, as higher rate long-term debt pays down.

On an absolute basis, net interest and fee income was $17.5 million for the first quarter of 2021 compared with $23.6 million in the first quarter last year.

Marlin recorded a $2.9 million provision for credit losses net benefit in the first quarter of 2021, compared to $12.7 million provision net benefit in the fourth quarter of 2020, and $25.2 million provision net expense in the first quarter of 2020. The provision release in the first quarter of 2021 reflects better than expected portfolio performance, continued positive performance trends, and an improved macroeconomic outlook.

Non-interest income was $8.6 million for the first quarter of 2021, compared with $4.1 million in the prior quarter and $12.2 million in the prior year period. The sequential quarter increase is primarily due to property tax revenue that is seasonally high in the first quarter. The year-over-year decrease in non-interest income is primarily due to a $2.3 million decrease in gains from the sale of assets. Non-interest expense was $19.6 million for the first quarter of 2021, compared with $14.8 million in the prior quarter and $29.9 million in the first quarter of 2020. The sequential quarter increase was primarily due to higher general and administrative expenses related to property tax expense that is seasonally high in the first quarter. The year-over-year decrease was primarily due to a $6.7 million write-off of goodwill impairment in the prior year period.

Marlin recorded a $2.5 million tax expense in the first quarter, representing an effective tax rate of 26.9%. In the fourth quarter of 2020, the Company recorded a $4.8 million tax expense representing an effective tax rate of 23.9%, and in the first quarter of 2020, the Company recorded $7.4 million of tax benefit.

Portfolio Performance

Allowance for credit losses as a percentage of total finance receivables was 4.65% at March 31, 2021 compared with 5.09% at December 31, 2020.

For the three months ended March 31, 2021, the Company recorded a $2.9 million provision for credit losses net benefit, compared with $25.2 million provision net expense recognized in the first quarter of 2020 and a $12.7 million provision net benefit recorded for the fourth quarter of 2020. The provision release in the first quarter of 2021 was primarily due to positive changes in the outlook of macroeconomic assumptions to which the reserve is correlated as well as positive trends in portfolio performance.

As of March 31, 2021, the Company had $93.8 million total receivables that were modified, or 11.2% of total net investment, or $90.8 million (11.1%) Equipment Finance and $3.0 million (16.4%) of Working Capital. Total modified receivables for Equipment Finance and Working Capital declined 12.9% and 56.6%, respectively from corresponding amounts as of December 31^st.

Equipment Finance receivables over 30 days delinquent were 116 basis points as of March 31, 2021, down 43 basis points from December 31, 2020, and down 66 basis points from March 31, 2020. Working Capital receivables over 15 days delinquent were 147 basis points as of March 31, 2021, down 353 basis points from December 31, 2020, and down 108 basis points from March 31, 2020. Annualized first quarter total net charge-offs were 1.67% of average total finance receivables versus 2.57% in the fourth quarter of 2020 and 3.11% a year ago.

Corporate Developments

On April 29, 2021, Marlin’s Board of Directors declared a $0.14 per share quarterly dividend. The dividend is payable on May 20, 2021, to shareholders of record on May 10, 2021. Based on the closing stock price on April 28, 2021, the annualized dividend yield on the Company’s common stock is 2.50%.

*Non-GAAP Financial Measures: Net income (loss) on an adjusted basis and adjusted efficiency ratio are financial measures that are not in accordance with U.S. generally accepted accounting principles (GAAP). See “Regulation G – Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures, in accordance with Regulation G.

About Marlin
Marlin is a nationwide provider of capital solutions to small businesses with a mission of helping small businesses fulfill their American dream. Our products and services are offered directly to small businesses and through financing programs with independent equipment dealers and other intermediaries. For more information about Marlin, visit marlincapitalsolutions.com or call toll free at (888) 479-9111.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements represent only the company’s current beliefs regarding future events and are not guarantees of performance or results. All forward-looking statements (including statements regarding expectations of future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” “may,” “could”, “intend” and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding, market, competitive, legal and/or regulatory factors, among others (including but not limited to the impact of the COVID-19 pandemic), affecting our business are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors is contained under the headings “Forward-Looking Statements” and “Risk Factors” in our periodic reports filed with the United States Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are also available in the “Investors” section of our website. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on such forward-looking statements.

Regulation G – Non-GAAP Financial Measures

The Company uses certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company defines net income on an adjusted basis as net income excluding after-tax income and expenses that are deemed to be unusual in nature or infrequent in occurrence and are not indicative of the underlying performance of the business for the period presented. The Company defines diluted earnings per share on an adjusted basis, return on average assets on an adjusted basis and return on average equity on an adjusted basis as the calculation used for the “as reported” number substituting net income as reported with net income on an adjusted basis while using the same denominator in the “as reported” number, where appropriate. The Company defines efficiency ratio on an adjusted basis as the calculation used for the “as reported” ratio adjusting the numerator for any discrete pre-tax adjustments used to present net income on an adjusted basis as well as the impact of pass-through lease expenses that are required to be presented on a gross basis in the income statement, acquisition related expense, and Rep and Warranty liability adjustments, as applicable. The Company adjusts the denominator in the “as reported” ratio for pass-through lease revenue that is required to be presented on a gross basis in the income statement, as applicable. The Company defines General and administrative annualized percent of average finance receivables, on an adjusted basis, as the calculation used for the “as reported” ratio, adjusting the numerator for any General and administrative discrete pre-tax adjustments used to present net income on an adjusted basis, acquisition related general and administrative expenses, Rep and Warranty liability adjustments, and pass-through lease expenses that are required to be presented on a gross basis in the income statement, as applicable. The adjusted ratio uses the same denominator as the “as reported” ratio. The Company defines Non-interest expense divided by average total managed assets, on an adjusted basis, as the calculation used for the “as reported” ratio adjusting the number for any non-interest expense discrete pre-tax adjustments used to present net income on an adjusted basis as well as the impact of pass-through lease expenses that are required to be presented on a gross basis in the income statement, acquisition related expenses, and Rep and Warranty liability adjustments, as applicable. The adjusted ratio uses the same denominator as the “as reported” ratio. The Company believes that these non-GAAP measures are useful performance metrics for management, investors and lenders, because it provides a means to evaluate period-to-period comparisons of the Company’s financial performance without the effects of certain adjustments in accordance with GAAP that may not necessarily be indicative of current operating performance.

Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.

Investor Contacts:

Mike Bogansky, Senior Vice President & Chief Financial Officer
856-505-4108

Lasse Glassen, Addo Investor Relations
[email protected]
424-238-6249

Marlin Business Services Corp. and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands, except share amounts)

		March 31,				December 31,
		2021				2020
ASSETS
Cash and due from banks		$	5,244			$	5,473
Interest-earning deposits with banks			105,378				130,218
Total cash and cash equivalents			110,622				135,691
Time deposits with banks			4,482				5,967
Restricted interest-earning deposits related to consolidated VIEs			4,358				4,719
Investment securities (amortized cost of $12.6 million and $11.5 million at March 31, 2021 and December 31, 2020, respectively)			12,373				11,624
Net investment in leases and loans:
Leases			319,092				337,159
Loans			517,249				532,125
Net investment in leases and loans, excluding allowance for credit losses (includes $23.2 million and $30.4 million at March 31, 2021 and December 31, 2020, respectively, related to consolidated VIEs)			836,341				869,284
Allowance for credit losses			(38,912	)			(44,228	)
Total net investment in leases and loans			797,429				825,056
Intangible assets			5,510				5,678
Operating lease right-of-use assets			7,648				7,623
Property and equipment, net			8,603				8,574
Property tax receivables, net of allowance			12,063				6,854
Other assets			9,776				10,212
Total assets		$	972,864			$	1,021,998
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits		$	678,331			$	729,614
Long-term borrowings related to consolidated VIEs			23,670				30,665
Operating lease liabilities			8,517				8,700
Other liabilities:
Sales and property taxes payable			10,916				6,316
Accounts payable and accrued expenses			26,086				27,734
Net deferred income tax liability			23,642				22,604
Total liabilities			771,162				825,633
Stockholders’ equity:
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued			—				—
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,009,323 and 11,974,530
shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively			120				120
Additional paid-in capital			76,682				76,323
Accumulated other comprehensive income (loss)			(115	)			69
Retained earnings			125,015				119,853
Total stockholders’ equity			201,702				196,365
Total liabilities and stockholders’ equity		$	972,864			$	1,021,998

Marlin Business Services Corp. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except share amounts)

	Three Months Ended March 31,
	2021				2020
Interest income	$	18,288			$	26,465
Fee income		2,455				2,766
Interest and fee income		20,743				29,231
Interest expense		3,263				5,680
Net interest and fee income		17,480				23,551
Provision for credit losses		(2,936	)			25,150
Net interest and fee income (loss) after provision for credit losses		20,416				(1,599	)
Non-interest income:
Gain on leases and loans sold		–				2,282
Insurance premiums written and earned		1,998				2,282
Other income		6,574				7,639
Non-interest income		8,572				12,203
Non-interest expense:
Salaries and benefits		8,373				9,519
General and administrative		11,246				13,605
Goodwill impairment		–				6,735
Non-interest expense		19,619				29,859
Income (loss) before income taxes		9,369				(19,255	)
Income tax expense (benefit)		2,518				(7,434	)
Net income (loss)	$	6,851			$	(11,821	)
Basic earnings (loss) per share	$	0.57			$	(1.00	)
Diluted earnings (loss) per share	$	0.57			$	(1.00	)

Marlin Business Services Corp. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

(Dollars in thousands, except share amounts)

	Three Months Ended March 31,
		2021				2020
Net income (loss) as reported	$	6,851			$	(11,821	)
Deduct:
Goodwill impairment		–				(6,735	)
Tax effect		–				1,614
Total adjustments, net of tax		–				(5,121	)
Net tax benefit resulting from the CARES Act of 2020		–				3,256
Net income (loss) on an adjusted basis	$	6,851			$	(9,956	)
Diluted earnings (loss) per share as reported	$	0.57			($	1.00	)
Diluted earnings (loss) per share on an adjusted basis	$	0.57			($	0.84	)
Return on Average Assets as reported		2.78	%			-3.98	%
Return on Average Assets on an adjusted basis		2.78	%			-3.35	%
Return on Average Equity as reported		13.89	%			-22.75	%
Return on Average Equity on an adjusted basis		13.89	%			-19.16	%
Efficiency Ratio numerator as reported	$	19,619			$	29,859
Adjustments to Numerator:
Expense adjustments as seen in Net Income reconciliation above		–				(6,735	)
Acquisition related expenses		(160	)			(378	)
Recourse & Rep & Warranty liability adjustment		(199	)			(807	)
Pass-through expenses		(5,570	)			(6,002	)
Efficiency ratio numerator on an adjusted basis	$	13,690			$	15,937
Efficiency Ratio denominator as reported	$	26,052			$	35,754
Adjustments to Denominator:
Pass-through revenue		(5,020	)			(5,504	)
Efficiency Ratio denominator on an adjusted basis	$	21,032			$	30,250
Efficiency Ratio as reported		75.31	%			83.51	%
Efficiency Ratio on an adjusted basis		65.09	%			52.68	%

Marlin Business Services Corp. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

(Dollars in thousands, except share amounts)

	Three Months Ended March 31,
		2021				2020
Non-interest Expense / Average total managed assets numerator, as reported	$	19,619			$	29,859
Adjustments to Numerator:
Expense adjustments as seen in Net Income reconciliation above		–				(6,735	)
Acquisition related expenses		(160	)			(378	)
Recourse & Rep & Warranty liability adjustment		(199	)			(807	)
Pass-through expenses		(5,570	)			(6,002	)
Non-interest Expense / Average total managed assets numerator, on an adjusted basis	$	13,690			$	15,937
Non-interest Expense / Average total managed assets as reported		7.49	%			8.89	%
Non-interest Expense / Average total managed assets on an adjusted basis		5.23	%			4.74	%
General and administrative expense Annualized % of Average
Finance Receivables numerator as reported	$	11,246			$	13,605
Adjustments to Numerator:
Expense adjustments as seen in Net Income reconciliation above		–				–
Acquisition related expenses		(168	)			(200	)
Rep & Warranty liability adjustment		(199	)			(807	)
Pass-through expenses		(5,570	)			(6,002	)
General and administrative expense Annualized % of Average
Finance Receivables numerator as adjusted	$	5,309			$	6,596
General and administrative expense Annualized % of Average
Finance Receivables as reported		5.40	%			5.39	%
General and administrative expense Annualized % of Average
Finance Receivables on an adjusted basis		2.55	%			2.62	%

Marlin Business Services Corp. and Subsidiaries

Supplemental Quarterly Data

(Dollars in thousands, except share amounts)

Quarter Ended:	3/31/2020		6/30/2020		9/30/2020		12/31/2020		3/31/2021
Net Income (Loss)
Net Income	($11,821	)	($5,882	)	$2,743		$15,302		$6,851
Annualized Performance Measures:
Return on Average Assets	-3.98	%	-1.88	%	0.98	%	5.74	%	2.77	%
Return on Average Stockholders’ Equity	-22.75	%	-12.41	%	6.00	%	33.59	%	13.89	%
EPS Data:
Net Income (Loss) Allocated to Common Stock	($11,821	)	($5,882	)	$2,707		$15,112		$6,766
Basic Earnings (loss) per Share	($1.00	)	($0.50	)	$0.23		$1.28		$0.57
Diluted Earnings (loss) per Share	($1.00	)	($0.50	)	$0.23		$1.28		$0.57
Number of Shares – Basic	11,876,147		11,760,479		11,791,141		11,825,693		11,834,415
Number of Shares – Diluted	11,876,147		11,760,479		11,832,413		11,841,134		11,869,218
Cash Dividends Declared per share	$0.14		$0.14		$0.14		$0.14		$0.14
New Asset Production:
Direct Originations	$37,821		$6,617		$8,381		$8,658		$7,437
Indirect Originations	$113,760		$58,802		$58,736		$74,353		$76,245
Total Originations (6)	$151,581		$65,419		$67,117		$83,011		$83,682
Equipment Finance Originations	$127,681		$64,572		$65,764		$75,873		$75,272
Working Capital Loans Originations	$23,900		$847		$1,353		$7,138		$8,410
Total Originations (6)	$151,581		$65,419		$67,117		$83,011		$83,682
Assets originated for sale in the period	$3,301		$1,135		$62		$0		$0
Assets referred in the period	$2,509		$664		$1,297		$1,046		$84
Total Sourced Originations (6)	$157,391		$67,218		$68,476		$84,057		$83,766
Implicit Yield on Originations:
Total (6)	12.45	%	9.16	%	9.34	%	9.63	%	9.46	%
Direct	21.69	%	13.80	%	15.76	%	19.85	%	21.22	%
Indirect	9.39	%	8.64	%	8.42	%	8.38	%	8.32	%
Equipment Finance	8.95	%	8.80	%	8.77	%	7.97	%	7.63	%
Working Capital	31.16	%	36.75	%	36.62	%	26.72	%	25.85	%
Paycheck Protection Program Loans Originated	$0		$4,178		$202		$0		$0
Implicit Yield on Paycheck Protection Loans Originated	n/a		4.56	%	2.76	%	n/a		n/a
Assets sold in the period	$22,929		$1,127		$4,286		$0		$0

 

_________________
(1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized
(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans.
(3) Adjusted General and administrative adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(4) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(5) Effective January 1, 2020, in connection with the adoption of ASU 2016-13 “CECL”, residual income is no longer recorded as a component of fee income and instead is presented within the allowance for loan loss
(6) Excludes Paycheck Protection Program Loans Originated
(7) Non-Accrual as of March 31, 2021 includes restructured contracts totaling $12.1 million for Equipment Finance and $0.3 million for Working Capital.

Marlin Business Services Corp. and Subsidiaries

Supplemental Quarterly Data

(Dollars in thousands, except share amounts)

Quarter Ended:	3/31/2020		6/30/2020		9/30/2020		12/31/2020		3/31/2021
Impact Yield on Organizations:
# of Leases / Loans Equipment Finance	5,863		3,178		3,410		3,552		3,687
Equipment Finance Approval Percentage	46	%	37	%	40	%	44	%	44	%
Average Monthly Equipment Finance Sources	932		518		547		566		555
Net Interest and Fee Margin (NIM)
Percent of Average Total Finance Receivables:
Interest Income	10.49	%	9.90	%	9.69	%	9.06	%	8.78	%
Fee Income (5)	1.10	%	1.00	%	1.21	%	1.17	%	1.18	%
Interest and Fee Income	11.59	%	10.90	%	10.90	%	10.23	%	9.96	%
Interest Expense	2.25	%	2.22	%	2.03	%	1.87	%	1.57	%
Net Interest and Fee Margin (NIM)	9.34	%	8.68	%	8.87	%	8.36	%	8.39	%
Cost of Funds (1)	2.50	%	2.17	%	2.13	%	1.97	%	1.79	%
Interest Income Equipment Finance	$21,076		$19,985		$19,719		$18,068		$16,901
Interest Income Working Capital Loans	$4,932		$4,095		$2,526		$1,515		$1,303
Average Total Finance Receivables	$1,008,823		$979,313		$924,635		$869,625		$833,474
Average Net Investment Equipment Finance	$947,696		$928,210		$886,990		$845,487		$813,263
Average Working Capital Loans	$61,127		$51,103		$33,696		$23,019		$19,062
End of Period Net Investment in leases and loans, net of allowance
Equipment Finance	$918,264		$876,919		$823,712		$806,229		$780,089
Working Capital Loans	$51,812		$34,116		$23,016		$18,827		$17,340
Total Owned Leases and Loans (2)	$970,076		$911,035		$846,728		$825,056		$797,429
Assets Serviced for Others	$328,252		$296,401		$261,144		$229,530		$199,080
Total Managed Assets	$1,298,328		$1,207,436		$1,107,872		$1,054,586		$996,509
Average Total Managed Assets	$1,343,862		$1,292,052		$1,203,502		$1,114,929		$1,047,854
Restructured Receivables:
Payment Deferral Modification Program
Equipment Finance	$12,530		$115,941		$117,672		$104,287		$90,843
Working Capital	$6,987		$17,876		$12,210		$6,922		$3,004
Total – $	$19,517		$133,817		$129,882		$111,209		$93,847
Total – as a % of Ending Finance Receivables	2.00	%	13.70	%	14.30	%	12.80	%	11.22	%
Total – # of Active Modified Contracts	520		5,017		5,237		4,809		4,356
Other Restructured Contracts	$3,096		$1,751		$1,035		$922		$822

_________________

(1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized
(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans.
(3) Adjusted General and administrative adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(4) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(5) Effective January 1, 2020, in connection with the adoption of ASU 2016-13 “CECL”, residual income is no longer recorded as a component of fee income and instead is presented within the allowance for loan loss
(6) Excludes Paycheck Protection Program Loans Originated
(7) Non-Accrual as of March 31, 2021 includes restructured contracts totaling $12.1 million for Equipment Finance and $0.3 million for Working Capital.

Marlin Business Services Corp. and Subsidiaries

Supplemental Quarterly Data

(Dollars in thousands, except share amounts)



Quarter Ended:	Q1 2020		Q2 2020		Q3 2020		Q4 2020		Q1 2021
Portfolio Asset Quality:
Allowance
Total	$52,060		$63,644		$61,325		$44,228		$38,912
% of Total Finance Receivables	5.09	%	6.53	%	6.75	%	5.09	%	4.65	%
Equipment Finance	$44,860		$55,682		$57,869		$43,022		$37,902
% of Net Investment Equipment Finance	4.66	%	5.97	%	6.57	%	5.07	%	4.64	%
Working Capital Loans	$7,200		$7,962		$3,456		$1,206		$1,010
% of Total Working Capital Loans	12.20	%	18.92	%	13.06	%	6.02	%	5.51	%
Net Charge-offs
Total	$7,846		$8,494		$10,488		$5,588		$3,475
% on Avg. Finance Receivables, Annualized	3.11	%	3.47	%	4.54	%	2.57	%	1.67	%
Equipment Finance	$6,603		$7,872		$9,956		$5,203		$3,070
% on Avg. Equipment Finance, Annualized	2.79	%	3.39	%	4.49	%	2.46	%	1.51	%
Working Capital Loans	$1,243		$622		$532		$385		$405
% of Avg. Working Capital Loans, Annualized	8.13	%	4.87	%	6.32	%	6.69	%	8.50	%
Delinquency
Total Finance Receivables:
30+ Days Past Due	1.79	%	3.83	%	2.15	%	1.63	%	1.16	%
60+ Days Past Due	1.00	%	2.46	%	1.42	%	0.77	%	0.62	%
Equipment Finance:
30+ Days Past Due	1.82	%	3.90	%	2.13	%	1.59	%	1.16	%
60+ Days Past Due	1.05	%	2.52	%	1.42	%	0.78	%	0.63	%
Working Capital Loans:
15+ Days Past Due	2.55	%	4.38	%	3.93	%	5.00	%	1.47	%
30+ Days Past Due	1.14	%	2.68	%	2.94	%	3.69	%	1.05	%
Total Finance Receivables:
30+ Days Past Due	$18,249		$37,347		$19,527		$14,209		$9,704
60+ Days Past Due	$10,220		$24,015		$12,925		$6,717		$5,203
Equipment Finance:
30+ Days Past Due	$17,576		$36,217		$18,750		$13,468		$9,511
60+ Days Past Due	$10,156		$23,353		$12,546		$6,582		$5,109
Working Capital Loans:
15+ Days Past Due	$1,504		$1,843		$1,041		$1,001		$269
30+ Days Past Due	$673		$1,130		$777		$741		$193

_________________

(1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized
(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans.
(3) Adjusted General and administrative adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(4) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(5) Effective January 1, 2020, in connection with the adoption of ASU 2016-13 “CECL”, residual income is no longer recorded as a component of fee income and instead is presented within the allowance for loan loss
(6) Excludes Paycheck Protection Program Loans Originated
(7) Non-Accrual as of March 31, 2021 includes restructured contracts totaling $12.1 million for Equipment Finance and $0.3 million for Working Capital.

Marlin Business Services Corp. and Subsidiaries

Supplemental Quarterly Data

(Dollars in thousands, except share amounts)

 

Quarter Ended:	Q1 2020		Q2 2020		Q3 2020		Q4 2020		Q1 2021
Portfolio Asset Quality:
Non-Accrual
Total	0.66	%	1.13	%	0.92	%	1.64	%	1.68	%
Equipment Finance	0.62	%	1.06	%	0.82	%	1.57	%	1.67	%
Working Capital Loans	1.28	%	2.83	%	4.32	%	4.65	%	1.87	%
Total (7)	$6,705		$11,031		$8,375		$14,289		$14,013
Equipment Finance	$5,950		$9,842		$7,231		$13,357		$13,669
Working Capital Loans	$755		$1,189		$1,144		$932		$344
Expense Ratios:
Salaries and Benefits Expense	$9,519		$7,668		$8,515		$8,081		$8,373
As a % of Avg. Fin. Receivables (annualized)	3.77	%	3.13	%	3.68	%	3.72	%	4.02	%
Total personnel end of quarter	339		240		247		254		262
General and Administrative Expense	$13,605		$5,847		$4,717		$6,745		$11,246
As a % of Avg. Fin. Receivables (annualized)	5.39	%	2.39	%	2.04	%	3.10	%	5.40	%
Adjusted General and Administrative Expense
As a % of Avg. Fin. Receivables (3)	2.62	%	2.21	%	2.40	%	2.81	%	2.55	%
Non-Interest Expense/Average Total Managed Assets	8.89	%	4.18	%	4.74	%	5.32	%	7.49	%
Adjusted Non-Interest Expense/Average Total Managed Assets (4)	4.74	%	3.75	%	4.36	%	5.05	%	5.23	%
Efficiency Ratio	83.51	%	53.92	%	57.64	%	66.51	%	75.31	%
Adjusted Efficiency Ratio (4)	52.68	%	47.58	%	53.38	%	63.93	%	65.09	%

_________________
  

(1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized
(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans.
(3) Adjusted General and administrative adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(4) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(5) Effective January 1, 2020, in connection with the adoption of ASU 2016-13 “CECL”, residual income is no longer recorded as a component of fee income and instead is presented within the allowance for loan loss
(6) Excludes Paycheck Protection Program Loans Originated
(7) Non-Accrual as of March 31, 2021 includes restructured contracts totaling $12.1 million for Equipment Finance and $0.3 million for Working Capital.

Marlin Business Services Corp. and Subsidiaries

Supplemental Quarterly Data

(Dollars in thousands, except share amounts)

Quarter Ended:	3/31/2020		6/30/2020		9/30/2020		12/31/2020		3/31/2021
Balance Sheet:
Assets
Investment in Leases and Loans	$1,002,611		$956,981		$891,940		$854,701		$822,706
Initial Direct Costs and Fees	19,525		17,698		16,113		14,583		13,635
Reserve for Credit Losses	(52,060	)	(63,644	)	(61,325	)	(44,228	)	(38,912	)
Net Investment in Leases and Loans	$970,076		$911,035		$846,728		$825,056		$797,429
Cash and Cash Equivalents	211,070		211,706		195,132		135,691		110,622
Restricted Cash	6,474		6,072		5,771		4,719		4,358
Other Assets	75,917		67,402		58,320		56,532		60,455
Total Assets	$1,263,537		$1,196,215		$1,105,951		$1,021,998		$972,864
Liabilities
Deposits	941,996		902,191		823,707		729,614		678,331
Total Debt	62,193		50,890		39,833		30,665		23,670
Other Liabilities	70,858		62,130		60,061		65,353		69,161
Total Liabilities	$1,075,047		$1,015,211		923,601		825,632		771,162
Stockholders’ Equity
Common Stock	$119		$119		$120		$120		$120
Paid-in Capital, net	75,647		75,606		75,893		76,323		76,682
Other Comprehensive Income (Loss)	20		86		93		69		(115	)
Retained Earnings	112,704		105,193		106,244		119,854		125,015
Total Stockholders’ Equity	$188,490		$181,004		$182,350		$196,366		$201,702
Total Liabilities and
Stockholders’ Equity	$1,263,537		$1,196,215		$1,105,951		$1,021,998		$972,864
Capital and Leverage:
Equity	$188,490		$181,004		$182,350		$196,366		$201,702
Debt to Equity	5.33		5.27		4.74		3.87		3.48
Equity to Assets	14.92	%	15.13	%	16.49	%	19.21	%	20.73	%
Regulatory Capital Ratios:
Tier 1 Leverage Capital	16.18	%	15.05	%	16.92	%	18.78	%	20.68	%
Common Equity Tier 1 Risk-based Capital	18.64	%	19.33	%	21.17	%	22.74	%	23.79	%
Tier 1 Risk-based Capital	18.64	%	19.33	%	21.17	%	22.74	%	23.79	%
Total Risk-based Capital	19.94	%	20.65	%	22.49	%	24.04	%	25.08	%

_________________

(1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized
(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans.
(3) Adjusted General and administrative adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(4) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures.
(5) Effective January 1, 2020, in connection with the adoption of ASU 2016-13 “CECL”, residual income is no longer recorded as a component of fee income and instead is presented within the allowance for loan loss
(6) Excludes Paycheck Protection Program Loans Originated
(7) Non-Accrual as of March 31, 2021 includes restructured contracts totaling $12.1 million for Equipment Finance and $0.3 million for Working Capital.

MENLO PARK, Calif., April 29, 2021 (GLOBE NEWSWIRE) — Corcept Therapeutics Incorporated (NASDAQ: CORT) today announced it will report first quarter financial results and provide a corporate update on May 6, 2021. The company will also host a conference call that day at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).

Conference Call Information

To participate, click the link below and enter your information. The link will become active 15 minutes prior to the scheduled start time.

Click to Join Meeting

Alternatively, you may dial 1-888-204-4368 from the United States or 1-313-209-4906 internationally approximately 15 minutes before the start of the call. The passcode will be 8720277.

A replay will be available through May 20, 2021 at 1-888-203-1112 from the United States and 1-719-457-0820 internationally. The passcode will be 8720277.

About Corcept Therapeutics Incorporated

Corcept is a commercial-stage company engaged in the discovery and development of drugs to treat severe metabolic, oncologic and psychiatric disorders by modulating the effects of the hormone cortisol. Korlym^® was the first drug approved by the U.S. Food and Drug Administration for patients with Cushing’s syndrome. Corcept has discovered a large portfolio of proprietary compounds that selectively modulate the effects of cortisol. The company owns extensive United States and foreign intellectual property covering the composition of its selective cortisol modulators and the use of cortisol modulators to treat a variety of serious disorders.

CONTACT:
Corcept Therapeutics
Investor Relations
[email protected]
www.corcept.com

NEWPORT BEACH, Calif., April 29, 2021 (GLOBE NEWSWIRE) — Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a customer-centric approach focused on delivering breakthrough products, today announced that members of management will be participating in the 7th Annual Truist Securities Life Sciences Summit.

Event:	7th Annual Truist Securities Life Sciences Summit
Format:	Fireside Chat & 1×1 Meetings
Date:	Wednesday, May 5, 2021
Time:	3:30pm – 4:10pm ET
Location:	Evolus Live Fireside Chat

An audio webcast of Evolus’ fireside chat will be available on the investor relations section of Evolus’ website at investors.evolus.com. Replay of the webcast will be available for 90 days after the date of the presentation.

About Evolus, Inc.

Evolus is a performance beauty company with a customer-centric approach focused on delivering breakthrough products. In 2019, the U.S. Food and Drug Administration approved Jeuveau^® (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure^™ technology. Jeuveau^® is powered by Evolus’ unique technology platform and is designed to transform the aesthetic market by eliminating the friction points existing for customers today. Visit us at: www.evolus.com.

Jeuveau^® is a registered trademark of Evolus, Inc.

Hi-Pure^™ is a trademark of Daewoong Pharmaceutical Co, Ltd.

Investor Contact

The Ruth Group
Christine Petraglia
Senior Vice President
Tel: 917-633-8980
Email: [email protected]

• First quarter financial results exceeded expectations, with strong operating execution, cost efficiencies and disciplined cash flow management.
  
• The Company raised its Adjusted EBITDA, net cash provided by operating activities, and Adjusted Free Cash Flow guidance ranges, and reaffirmed its revenue and net income guidance ranges for the fiscal year ending December 31, 2021 (“fiscal year 2021”).

RUTLAND, Vt., April 29, 2021 (GLOBE NEWSWIRE) — Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three month period ended March 31, 2021.

Highlights for the Three Months Ended March 31, 2021: 

• Revenues were $189.5 million for the quarter, up $6.6 million, or up 3.6%, from the same period in 2020.

• Overall solid waste pricing for the quarter was up 3.4%, driven by collection pricing, up 3.5%, and landfill pricing, up 3.5%, from the same period in 2020.

• Net income was $4.3 million for the quarter, up $3.3 million, or up 349.5%, from the same period in 2020.

• Adjusted EBITDA, a non-GAAP measure, was $38.8 million for the quarter, up $5.3 million, or up 15.9%, from the same period in 2020.

• Net income as a percentage of revenues was 2.3% for the quarter, up 175 basis points from the same period in 2020. Adjusted EBITDA as a percentage of revenues, a non-GAAP measure, was 20.5% for the quarter, up 215 basis points from the same period in 2020.

• Net cash provided by operating activities was $32.1 million for the quarter, up $17.4 million, or up 117.3%, from the same period in 2020.

• Adjusted Free Cash Flow, a non-GAAP measure, was $11.0 million for the quarter, up $6.9 million, or up 172.8%, from the same period in 2020.
  

“Our team continued to execute very well through the first quarter as we increased Adjusted EBITDA by 15.9%, Adjusted EBITDA margins by 215 basis points, and Adjusted Free Cash Flow by 172.8% year-over-year in the quarter despite continued solid waste volume headwinds due to the COVID-19 pandemic,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. “These positive results are a testament to the hard work, adaptability and dedication of our team, the resiliency of our business model, our asset positioning in the disposal capacity constrained northeast market that allowed us to advance positive solid waste pricing, and strong execution against our operating and cost efficiency programs.”

“Solid waste volume declines continued to moderate sequentially from the fourth quarter of 2020 through the first quarter of fiscal year 2021,” Casella said. “With volumes down (3.3)% year-over-year in the quarter, we had a tough volume comparison in the first quarter as we experienced only very limited negative impacts from the COVID-19 pandemic late in the first quarter last year. We expect solid waste volumes to improve year-over-year through the remainder of fiscal year 2021.”

“As more Americans are vaccinated and the states in which we operate further ease COVID-19 specific restrictions, we continue to see additional commercial customers reopen or increase services, construction activity increase, and overall economic activity rebound across our mainly secondary and rural markets in the northeast,” Casella said.

“We continued to make great progress against our 2021 strategic plan during the quarter,” Casella said. “And, we are well positioned to drive additional acquisition growth through the remainder of the year as our acquisition pipeline remains robust and activity is accelerating.”

For the quarter, revenues were $189.5 million, up $6.6 million, or up 3.6%, from the same period in 2020, with revenue growth mainly driven by: positive collection and disposal pricing; the roll-over impact from acquisitions; higher recycling commodity prices; and higher resource solutions non-processing revenues; partially offset by lower solid waste volumes primarily due to the negative impacts of the COVID-19 pandemic and lower fuel surcharge and other fees.

Net income was $4.3 million for the quarter, or $0.08 per diluted common share, up $3.3 million, or up 349.5%, as compared to net income of $1.0 million, or $0.02 per diluted common share, for the same period in 2020. The quarter included $0.4 million of expense from acquisition activities and $0.2 million of legal and other expenses associated with the closure of our landfill in Southbridge, Massachusetts (“Southbridge Landfill”). The same quarter last year included $1.0 million of expense from acquisition activities and $0.6 million of legal and other costs associated with the Southbridge Landfill closure.

Given the reversal of the tax valuation allowance in 2020, we expect an income statement tax provision of approximately 31% in fiscal year 2021. The income tax provision was $2.4 million in the quarter, up $2.3 million from the same period in 2020, and as expected we paid cash taxes of $0.2 million in the quarter.

Adjusted Net Income, a non-GAAP measure, was $4.8 million for the quarter, or $0.09 Adjusted Diluted Earnings Per Common Share, up $2.6 million, or up 122.1%, as compared to Adjusted Net Income of $2.1 million, or $0.04 Adjusted Diluted Earnings Per Common Share, for the same period in 2020.

Operating income was $12.0 million for the quarter, up $5.0 million, or up 71.3% from the same period in 2020. Adjusted EBITDA was $38.8 million for the quarter, up $5.3 million, or up 15.9%, from the same period in 2020.

Fiscal Year 2021 Outlook

“Given our solid execution year-to-date combined with increased visibility of economic trends, we are updating our fiscal year 2021 guidance ranges that were first announced in mid-February,” Casella said. “These guidance ranges assume a stable economic environment continuing through the remainder of the year with only a modest rebound in solid waste volumes as major cities in our markets are slowly reopening from the COVID-19 pandemic.”

The Company raised guidance for fiscal year 2021 by estimating results in the following ranges:

• Adjusted EBITDA between $185 million and $189 million (raised from $184 million and $188 million);
• Net cash provided by operating activities between $150 million and $154 million (raised from $149 million and $153 million); and
• Adjusted Free Cash Flow between $76 million and $80 million (raised from $75 million and $79 million).

And, the Company reaffirmed guidance for fiscal year 2021 by estimating results in the following ranges:

• Revenues between $815 million and $830 million; and
• Net income between $33 million and $37 million.

Adjusted EBITDA and Adjusted Free Cash Flow related to fiscal year 2021 are described in the Reconciliation of Fiscal Year 2021 Outlook Non-GAAP Measures section of this press release. Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2021 do not contemplate any unanticipated or non-recurring impacts.

Conference call to discuss quarter

The Company will host a conference call to discuss these results on Friday, April 30, 2021 at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should dial (877) 838-4153 or for international participants (720) 545-0037 at least 10 minutes before start time. The Conference ID is 760 9317 for the call and the replay.

The call will also be webcast; to listen, participants should visit the company’s website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the Company’s website, or by calling (855) 859-2056 or (404) 537-3406 (Conference ID 760 9317).

About Casella Waste Systems, Inc.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the northeastern United States. For further information, investors contact Ned Coletta, Chief Financial Officer at (802) 772-2239; media contact Joseph Fusco, Vice President at (802) 772-2247; or visit the Company’s website at http://www.casella.com.

Safe Harbor Statement

Certain matters discussed in this press release, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, the expected and potential direct or indirect impacts of the COVID-19 pandemic on our business; our financial performance; financial condition; operations and services; prospects; growth; strategies; and guidance for fiscal year 2021, are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as “believe,” “expect,” “anticipate,” “plan,” “may,” “would,” “intend,” “estimate,” “will,” “guidance” and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management’s beliefs and assumptions. The Company cannot guarantee that it actually will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company’s operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements.

Such risks and uncertainties include or relate to, among other things, the following: it is challenging to predict the duration and scope of the COVID-19 pandemic and its negative effect on the economy, our operations and financial results; policies adopted by China and other countries will further restrict imports of recyclable materials into those countries and have a further material impact on the Company’s financial results; the capping and closure of the Southbridge Landfill and the lawsuit relating to the North Country Landfill could result in material unexpected costs; adverse weather conditions may negatively impact the Company’s revenues and its operating margin; the Company may be unable to increase volumes at its landfills or improve its route profitability; the economics of recycling programs may cause municipalities to reconsider the viability of continuing these programs; the Company’s need to service its indebtedness may limit its ability to invest in its business; the Company may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside the Company’s control; the Company may be required to incur capital expenditures in excess of its estimates; the Company’s insurance coverage and self-insurance reserves may be inadequate to cover all of its significant risk exposures; fluctuations in energy pricing or the commodity pricing of its recyclables may make it more difficult for the Company to predict its results of operations or meet its estimates; the Company may be unable to achieve its acquisition or development targets on favorable pricing or at all; and the Company may incur environmental charges or asset impairments in the future.

There are a number of other important risks and uncertainties that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A, “Risk Factors” in the Company’s most recently filed Form 10-K and in other filings that the Company may make with the Securities and Exchange Commission in the future.

The Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Investors:

Ned Coletta
Chief Financial Officer
(802) 772-2239

Media:

Joseph Fusco
Vice President
(802) 772-2247
http://www.casella.com

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except for per share data)
	Three Months Ended March 31,
	2021				2020
Revenues	$	189,532			$	182,910
Operating expenses:
Cost of operations	127,139				128,518
General and administration	27,131				24,352
Depreciation and amortization	22,682				21,406
Expense from acquisition activities	414				1,009
Southbridge Landfill closure charge	157				613
	177,523				175,898
Operating income	12,009				7,012
Other expense (income):
Interest expense, net	5,404				5,901
Other (income) expense	(138		)		43
Other expense, net	5,266				5,944
Income before income taxes	6,743				1,068
Provision for income taxes	2,432				109
Net income	$	4,311			$	959
Basic weighted average common shares outstanding	51,179				48,005
Basic earnings per common share	$	0.08			$	0.02
Diluted weighted average common shares outstanding	51,387				48,262
Diluted earnings per common share	$	0.08			$	0.02

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
	March 31, 2021				December 31, 2020
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	152,555			$	154,342
Accounts receivable, net of allowance for credit losses	66,326				74,198
Other current assets	20,625				18,714
Total current assets	239,506				247,254
Property, plant and equipment, net of accumulated depreciation and amortization	523,316				510,512
Operating lease right-of-use assets	92,537				95,310
Goodwill	196,316				194,901
Intangible assets, net of accumulated amortization	57,581				58,324
Restricted assets	1,871				1,848
Cost method investments	11,264				11,264
Deferred income taxes	57,731				61,163
Other non-current assets	14,124				13,322
Total assets	$	1,194,246			$	1,193,898
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of debt	$	10,918			$	9,240
Current operating lease liabilities	7,122				8,547
Accounts payable	50,547				49,198
Other accrued liabilities	54,488				64,223
Total current liabilities	123,075				131,208
Debt, less current portion	531,105				530,411
Operating lease liabilities, less current portion	60,854				60,979
Other long-term liabilities	105,876				109,158
Total stockholders’ equity	373,336				362,142
Total liabilities and stockholders’ equity	$	1,194,246			$	1,193,898

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
	Three Months Ended March 31,
	2021				2020
Cash Flows from Operating Activities:
Net income	$	4,311			$	959
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,682				21,406
Depletion of landfill operating lease obligations	1,604				1,673
Interest accretion on landfill and environmental remediation liabilities	1,957				1,794
Amortization of debt issuance costs	572				527
Stock-based compensation	2,941				1,562
Operating lease right-of-use assets expense	1,411				2,417
(Gain) loss on sale of property and equipment	(24		)		137
Southbridge Landfill non-cash closure charge	(7		)		51
Non-cash expense from acquisition activities	146				532
Deferred income taxes	2,300				967
Changes in assets and liabilities, net of effects of acquisitions and divestitures	(5,746		)		(17,234		)
Net cash provided by operating activities	32,147				14,791
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired	(4,568		)		(5,144		)
Additions to property, plant and equipment	(26,832		)		(19,851		)
Proceeds from sale of property and equipment	123				51
Net cash used in investing activities	(31,277		)		(24,944		)
Cash Flows from Financing Activities:
Proceeds from debt borrowings	—				73,500
Principal payments on debt	(2,769		)		(40,686		)
Payments of debt issuance costs	—				(11		)
Proceeds from the exercise of share based awards	112				100
Net cash (used in) provided by financing activities	(2,657		)		32,903
Net (decrease) increase in cash and cash equivalents	(1,787		)		22,750
Cash and cash equivalents, beginning of period	154,342				3,471
Cash and cash equivalents, end of period	$	152,555			$	26,221
Supplemental Disclosure of Cash Flow Information:
Cash interest payments	$	5,020			$	5,372
Cash income tax payments	$	238			$	84
Non-current assets obtained through long-term financing obligations	$	4,569			$	6,469
Right-of-use assets obtained in exchange for operating lease obligations	$	512			$	2,366

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(Unaudited)

(In thousands)

Non-GAAP Performance Measures

In addition to disclosing financial results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also presents non-GAAP performance measures such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Operating income as a percentage of revenues, Adjusted Net Income and Adjusted Diluted Earnings Per Common Share that provide an understanding of operational performance because it considers them important supplemental measures of the Company’s performance that are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s results. The Company also believes that identifying the impact of certain items as adjustments provides more transparency and comparability across periods. Management uses these non-GAAP performance measures to further understand its “core operating performance” and believes its “core operating performance” is helpful in understanding its ongoing performance in the ordinary course of operations. The Company believes that providing such non-GAAP performance measures to investors, in addition to corresponding income statement measures, affords investors the benefit of viewing the Company’s performance using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and its results of operations has performed. The tables below set forth such performance measures on an adjusted basis to exclude such items:

	Three Months Ended March 31,
	2021					2020
Net income	$	4,311				$	959
Net income as a percentage of revenues	2.3			%		0.5			%
Provision for income taxes	2,432					109
Other (income) expense	(138		)			43
Interest expense, net	5,404					5,901
Expense from acquisition activities (i)	414					1,009
Southbridge Landfill closure charge (ii)	157					613
Depreciation and amortization	22,682					21,406
Depletion of landfill operating lease obligations	1,604					1,673
Interest accretion on landfill and environmental remediation liabilities	1,957					1,794
Adjusted EBITDA	$	38,823				$	33,507
Adjusted EBITDA as a percentage of revenues	20.5			%		18.3			%
Depreciation and amortization	(22,682		)			(21,406		)
Depletion of landfill operating lease obligations	(1,604		)			(1,673		)
Interest accretion on landfill and environmental remediation liabilities	(1,957		)			(1,794		)
Adjusted Operating Income	$	12,580				$	8,634
Adjusted Operating Income as a percentage of revenues	6.6			%		4.7			%

	Three Months Ended March 31,
	2021				2020
Net income	$	4,311			$	959
Expense from acquisition activities (i)	414				1,009
Southbridge Landfill closure charge (ii)	157				613
Tax effect (iii)	(131		)		(442		)
Adjusted Net Income	$	4,751			$	2,139
Diluted weighted average common shares outstanding	51,387				48,262
Diluted earnings per common share	$	0.08			$	0.02
Expense from acquisition activities (i)	0.01				0.02
Southbridge Landfill closure charge (ii)	—				0.01
Tax effect (iii)	—				(0.01		)
Adjusted Diluted Earnings Per Common Share	$	0.09			$	0.04

(i)  Expense from acquisition activities are primarily legal, consulting or other similar costs incurred during the period related to acquisition diligence, acquisition integration or select development projects as part of the Company’s strategic growth initiative.

(ii)  Southbridge Landfill closure charge are expenses related to the unplanned early closure of the Southbridge Landfill along with associated legal activities. The Company initiated the unplanned, premature closure of the Southbridge Landfill in the fiscal year ended December 31, 2017 due to the significant capital investment required to obtain expansion permits and for future development coupled with an uncertain regulatory environment. The unplanned closure of the Southbridge Landfill reduced the economic useful life of the assets from prior estimates by approximately ten years. The Company expects to incur certain costs through completion of the closure process.

(iii)  Tax effect of the adjustments is an aggregate of the current and deferred tax impact of each adjustment, including the impact to the effective tax rate, current provision and deferred provision. The computation considers all relevant impacts of the adjustments, including available net operating loss carryforwards and the impact on the remaining valuation allowance.

Non-GAAP Liquidity Measures

In addition to disclosing financial results prepared in accordance with GAAP, the Company also presents non-GAAP liquidity measures such as Adjusted Free Cash Flow, Bank Consolidated EBITDA, Consolidated Funded Debt, Net and Consolidated Net Leverage Ratio that provide an understanding of the Company’s liquidity because it considers them important supplemental measures of its liquidity that are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s cash flow generation from its core operations that are then available to be deployed for strategic acquisitions, growth investments, development projects, unusual landfill closures, site improvement and remediation, and strengthening the Company’s balance sheet through paying down debt. The Company also believes that identifying the impact of certain items as adjustments provides more transparency and comparability across periods. Management uses non-GAAP liquidity measures to understand the Company’s cash flow provided by operating activities after certain expenditures along with its consolidated net leverage and believes that these measures demonstrate the Company’s ability to execute on its strategic initiatives. The Company believes that providing such non-GAAP liquidity measures to investors, in addition to corresponding cash flow statement measures, affords investors the benefit of viewing the Company’s liquidity using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and cash flow generation has performed. The tables below, in some instances on an adjusted basis to exclude certain items, set forth such liquidity measures:               

	Three Months Ended March 31,
	2021				2020
Net cash provided by operating activities	$	32,147			$	14,791
Capital expenditures	(26,832		)		(19,851		)
Proceeds from sale of property and equipment	123				51
Southbridge Landfill closure and Potsdam environmental remediation (i)	391				1,458
Cash outlays from acquisition activities (ii)	268				477
Post acquisition and development project capital expenditures (iii)	3,771				5,860
Waste USA Landfill phase VI capital expenditures (iv)	1,100				1,235
Adjusted Free Cash Flow	$	10,968			$	4,021

(i)  Southbridge Landfill closure and Potsdam environmental remediation are cash outlays associated with the unplanned closure of the Southbridge Landfill and the Company’s portion of costs associated with environmental remediation at Potsdam, which are added back when calculating Adjusted Free Cash Flow due to their non-recurring nature and the significance of the related cash flows. The Company initiated the unplanned closure of the Southbridge Landfill in the fiscal year ended December 31, 2017 and expects to incur cash outlays through completion of the closure and environmental remediation process. The Potsdam site was deemed a Superfund site in 2000 and is not associated with current operations.

(ii)  Cash outlays from acquisition activities are cash outlays for transaction and integration costs relating to specific acquisition transactions and include legal, environmental, valuation and consulting as well as asset, workforce and system integration costs as part of the Company’s strategic growth initiative.

(iii)  Post acquisition and development project capital expenditures are (x) acquisition related capital expenditures that are necessary to optimize strategic synergies associated with integrating newly acquired operations as contemplated by the discounted cash flow return analysis conducted by management as part of the acquisition investment decision; and (y) non-routine development investments that are expected to provide long-term returns. Acquisition related capital expenditures include the following costs required to achieve initial operating synergies: trucks, equipment and machinery; and facilities, land, IT infrastructure or related upgrades to integrate operations.

(iv)   Waste USA Landfill phase VI capital expenditures are capital expenditures related to Waste USA Landfill phase VI construction and development that are added back when calculating Adjusted Free Cash Flow due to the specific nature of this investment in the development of long-term infrastructure which is different from landfill construction investments in the normal course of operations. This investment at the Waste USA Landfill is unique because the Company is investing in long-term infrastructure over an estimated four year period that will not yield a positive economic benefit until 2023 and extending over approximately 20 years.

Following is the Consolidated Net Leverage Ratio and the reconciliations of Consolidated Funded Debt, Net from debt and Bank Consolidated EBITDA from Net cash provided by operating activities:

	Twelve Months Ended March 31, 2021			Covenant Requirement at March 31, 2021
Consolidated Net Leverage Ratio (i)	2.66			4.00

(i)   Our credit agreement requires us to maintain a maximum consolidated net leverage ratio, to be measured at the end of each fiscal quarter (“Consolidated Net Leverage Ratio”). The Consolidated Net Leverage Ratio is calculated as consolidated debt, net of unencumbered cash and cash equivalents in excess of $2,000 and up to $50,000 (“Consolidated Funded Debt, Net”, calculated at $500,220 as of March 31, 2021, or $550,220 of consolidated debt, less $50,000 of cash and cash equivalents in excess of $2,000 and up to $50,000 as of March 31, 2021), divided by consolidated EBITDA as defined by our credit agreement (“Bank Consolidated EBITDA”). Bank Consolidated EBITDA is based on operating results for the twelve months preceding the measurement date of March 31, 2021. A reconciliation of Bank Consolidated EBITDA from Net cash provided by operating activities is as follows:

	Twelve Months Ended March 31, 2021
Net cash provided by operating activities	$	157,278
Changes in assets and liabilities, net of effects of acquisitions and divestitures	13,678
Loss on sale of property and equipment	(775		)
Non-cash expense from acquisition activities	(168		)
Southbridge Landfill non-cash closure charge	(205		)
Operating lease right-of-use assets expense	(7,470		)
Stock-based compensation	(9,598		)
Interest expense, less amortization of debt issuance costs	19,673
Benefit for income taxes, net of deferred income taxes	474
Adjustments as allowed by the credit agreement	15,408
Bank Consolidated EBITDA	$	188,295

Non-GAAP financial measures are not in accordance with or an alternative for GAAP. Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Operating Income as a percentage of revenues, Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted Free Cash Flow, Bank Consolidated EBITDA, Consolidated Funded Debt, Net and Consolidated Net Leverage Ratio should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP, and may be different from Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Operating Income as a percentage of revenues, Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted Free Cash Flow, Bank Consolidated EBITDA, Consolidated Funded Debt, Net and Consolidated Net Leverage Ratio presented by other companies.

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES RECONCILIATION OF FISCAL YEAR 2021 OUTLOOK NON-GAAP MEASURES (Unaudited) (In thousands)
Following is a reconciliation of the Company’s estimated Adjusted EBITDA (i) from estimated Net income for fiscal year 2021:
	(Estimated) Fiscal Year Ending December 31, 2021
Net income	$33,000 – $37,000
Provision for income taxes	16,000
Other income	(500)
Interest expense, net	22,000
Expense from acquisition activities	1,000
Southbridge Landfill closure charge	1,000
Depreciation and amortization	98,000
Depletion of landfill operating lease obligations	7,500
Interest accretion on landfill and environmental remediation liabilities	7,000
Adjusted EBITDA	$185,000 – $189,000

Following is a reconciliation of the Company’s estimated Adjusted Free Cash Flow (i) from estimated Net cash provided by operating activities for fiscal year 2021:
	(Estimated) Fiscal Year Ending December 31, 2021
Net cash provided by operating activities	$150,000 – $154,000
Capital expenditures	(113,000)
Southbridge Landfill closure and Potsdam environmental remediation	10,000
Cash outlays from acquisition activities	1,000
Post acquisition and development project capital expenditures	15,000
Waste USA Landfill phase VI capital expenditures	13,000
Adjusted Free Cash Flow	$76,000 – $80,000
(i)  See footnotes for Non-GAAP Performance Measures and Non-GAAP Liquidity Measures included in the Reconciliation of Certain Non-GAAP Measures for further disclosure over the nature of the various adjustments to estimated Adjusted EBITDA and estimated Adjusted Free Cash Flow.

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES SUPPLEMENTAL DATA TABLES (Unaudited) (In thousands)
Amounts of total revenues attributable to services provided for the three months ended March 31, 2021 and 2020 are as follows:
	Three Months Ended March 31,
	2021				% of Total Revenues			2020				% of Total Revenues
Collection	$	97,469			51.4	%		$	94,561			51.7	%
Disposal	37,853				20.0	%		38,625				21.1	%
Power generation	1,303				0.7	%		1,026				0.6	%
Processing	1,484				0.8	%		1,137				0.6	%
Solid waste operations	138,109				72.9	%		135,349				74.0	%
Processing	17,272				9.1	%		13,818				7.6	%
Non-processing	34,151				18.0	%		33,743				18.4	%
Resource solutions operations	51,423				27.1	%		47,561				26.0	%
Total revenues	$	189,532			100.0	%		$	182,910			100.0	%

Components of revenue growth for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 are as follows:
	Amount				% of Related Business			% of Operations				% of Total Company
Solid waste operations:
Collection	$	3,272			3.5	%		2.4		%		1.8		%
Disposal	1,319				3.4	%		1.0		%		0.7		%
Solid waste price	4,591							3.4		%		2.5		%
Collection	(2,212		)					(1.6	)	%		(1.2	)	%
Disposal	(2,531		)					(1.9	)	%		(1.4	)	%
Processing	321							0.2		%		0.2		%
Solid waste volume	(4,422		)					(3.3	)	%		(2.4	)	%
Fuel surcharge and other fees	(1,580		)					(1.2	)	%		(0.9	)	%
Commodity price and volume	321							0.2		%		0.2		%
Acquisitions, net divestitures	3,865							2.9		%		2.1		%
Closed operations	(15		)					—		%		—		%
Total solid waste operations	2,760							2.0		%		1.5		%
Resource solutions operations:
Processing – price	3,254							6.8		%		1.8		%
Processing – volume	200							0.4		%		0.1		%
Non-processing	408							0.9		%		0.2		%
Total resource solutions operations	3,862							8.1		%		2.1		%
Total company	$	6,622										3.6		%

Solid waste internalization rates by region for the three months ended March 31, 2021 and 2020 are as follows:
	Three Months Ended March 31,
	2021			2020
Eastern region	49.9	%		47.4	%
Western region	61.5	%		58.7	%
Solid waste internalization	56.0	%		53.3	%

 

Components of capital expenditures (i) for the three months ended March 31, 2021 and 2020 are as follows:
	Three Months Ended March 31,
	2021				2020
Growth capital expenditures:
Post acquisition and development project	$	3,771			$	5,860
Waste USA Landfill phase VI	1,100				1,235
Other	1,015				504
Growth capital expenditures	5,886				7,599
Replacement capital expenditures:
Landfill development	1,289				4,058
Vehicles, machinery, equipment and containers	17,568				6,093
Facilities	650				1,043
Other	1,439				1,058
Replacement capital expenditures	20,946				12,252
Capital expenditures	$	26,832			$	19,851

(i)   The Company’s capital expenditures are broadly defined as pertaining to either growth or replacement activities. Growth capital expenditures are defined as costs related to development projects, organic business growth, and the integration of newly acquired operations. Growth capital expenditures include costs related to the following: 1) post acquisition and development projects that are necessary to optimize strategic synergies associated with integrating newly acquired operations as contemplated by the discounted cash flow return analysis conducted by management as part of the acquisition investment decision as well as non-routine development investments that are expected to provide long-term returns and includes the following capital expenditures required to achieve initial operating synergies: trucks, equipment and machinery; and facilities, land, IT infrastructure or related upgrades to integrate operations; 2) Waste USA Landfill phase VI construction and development for long-term infrastructure, which is unique and different from landfill construction investments in the normal course of operations because the Company is investing in long-term infrastructure over an estimated four year period that will not yield a positive economic benefit until 2023 and extending over approximately 20 years; and 3) development of new airspace, permit expansions, and new recycling contracts, equipment added directly as a result of organic business growth and infrastructure added to increase throughput at transfer stations and recycling facilities. Replacement capital expenditures are defined as landfill cell construction costs not related to expansion airspace, costs for normal permit renewals, and replacement costs for equipment due to age or obsolescence.

• Net sales of
  $803 million
• Net income per share of $1.96
• Cash, cash equivalents, restricted cash, and marketable securities of $1.8 billion
• YTD net bookings of 4.8 GW
  
  _DC
  
  ; 2.9 GW
  
  _DC
  
  since prior earnings call
• Nameplate manufacturing capacity increased to 7.9 GW
  
  _DC
  
  ; top production bin of 455 watts
• Completed sales of U.S. project development and North American O&M businesses
• Maintain 2021 EPS guidance of $4.05 to $4.75
  

TEMPE, Ariz., April 29, 2021 (GLOBE NEWSWIRE) — First Solar, Inc. (Nasdaq: FSLR) today announced financial results for the first quarter ended March 31, 2021.

“We delivered strong operational and financial results for the first quarter, and demand for our Series 6 technology continues to be robust,” said Mark Widmar, CEO of First Solar. “The dedication we continue to witness from our associates enabled us to deliver module segment gross margin in line with our first quarter guidance, complete the sales of our Sun Streams 2, 4, and 5 projects, and close the U.S. project development and North American O&M sales. This, coupled with manufacturing execution, enabled us to deliver solid EPS in the first quarter.”

Net sales for the first quarter were $803 million, an increase of $194 million from the prior quarter, primarily due to an increase in systems revenue driven by U.S. project sales.

Operating income for the first quarter was $252 million, compared to $58 million in the prior quarter. First quarter operating income includes depreciation and amortization of $63 million, share-based compensation of $3 million, charges associated with the initial ramp of our new factory in Malaysia, underutilization expense, and production start-up expense totaling $16 million, and a gain on the sales of our U.S. project development and North American O&M businesses of $151 million.

Net income per share for the first quarter was $1.96, compared to net income per share of $1.08 in the prior quarter.

Cash, cash equivalents, restricted cash, and marketable securities at the end of the first quarter totaled $1.8 billion, which was largely unchanged from the prior quarter. This was primarily due to proceeds from the sale of our North American O&M business and proceeds from the sale of certain securities associated with our end of life module collection and recycling program, which we intend to subsequently reinvest. This was partially offset by an increase in accounts receivable related to our U.S. project development and Sun Streams 2, 4, and 5 sales, along with operating expenses, capital expenditures, and payment of variable compensation.

2021 guidance has been updated as follows:

	Prior	Current
Net Sales	$2.85B to $3.0B	$2.85B to $3.025B
Gross Margin ($) (1)	$710M to $775M	$695M to $775M
Operating Expenses (2)	$285M to $300M	Unchanged
Operating Income (3)(4)	$545M to $640M	Unchanged
Earnings per Share	$4.05 to $4.75	Unchanged
Net Cash Balance (5)	$1.8B to $1.9B	Unchanged
Capital Expenditures	$425M to $475M	Unchanged
Shipments	7.8GW to 8.0GW	Unchanged

——————————
(1)   Includes of $1 million of ramp related expense ($5 million to $10 million previously) and $40 million of underutilization losses (unchanged)
(2)   Includes $20 million to $25 million of production start-up expense ($15 million to $20 million previously)
(3)   Includes $61 million to $66 million of ramp expense, production start-up expense, and underutilization losses ($60 million to $70 million previously)
(4)   Includes a $151 million pre-tax gain related to the sales of the North American O&M and U.S. project development businesses ($135 million to $150 million previously)
(5)   Defined as cash, cash equivalents, marketable securities, and restricted cash less expected debt at the end of 2021

Conference Call Details

First Solar has scheduled a conference call for today, April 29, 2021 at 4:30 p.m. ET, to discuss this announcement. A live webcast of this conference call and accompanying materials are available at investor.firstsolar.com.

Investors are encouraged to listen to the conference call and to review the accompanying materials, which contain more information about First Solar’s first quarter financial results and financial outlook.

An audio replay of the conference call will be available through Thursday, May 13, 2021 and can be accessed by dialing +1 (800) 585-8367 if you are calling from within the United States or +1 (416) 621-4642 if you are calling from outside the United States and entering the replay passcode 1713277. A replay of the webcast will also be available on the Investors section of First Solar’s website approximately five hours after the conclusion of the call and remain available for 90 days.

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly-produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film photovoltaic (PV) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

For First Solar Investors

This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: our financial guidance for 2021, net sales, gross margin, operating expenses, operating income, net income per share, earnings per share, net cash balance, capital expenditures, shipments, bookings, products and our business and financial objectives for 2021. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. These factors include, but are not limited to: structural imbalances in global supply and demand for PV solar modules; our competitive position and other key competitive factors; the market for renewable energy, including solar energy; the reduction, elimination, or expiration of government subsidies, policies, and support programs for solar energy projects; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; interest rate fluctuations and both our and our customers’ ability to secure financing; our ability to execute on our long-term strategic plans; the loss of any of our large customers, or the ability of our customers and counterparties to perform under their contracts with us; our ability to execute on our solar module technology and cost reduction roadmaps; our ability to improve the wattage of our solar modules; the creditworthiness of our offtake counterparties and the ability of our offtake counterparties to fulfill their contractual obligations to us; the satisfaction of conditions precedent in our sales agreements; our ability to attract new customers and to develop and maintain existing customer and supplier relationships; our ability to successfully develop and complete our systems business projects; our ability to convert existing production facilities to support new product lines, such as Series 6 module manufacturing; general economic and business conditions, including those influenced by U.S., international, and geopolitical events; environmental responsibility, including with respect to cadmium telluride (“CdTe”) and other semiconductor materials; claims under our limited warranty obligations; changes in, or the failure to comply with, government regulations and environmental, health, and safety requirements; effects resulting from pending litigation; future collection and recycling costs for solar modules covered by our module collection and recycling program; our ability to protect our intellectual property; our ability to prevent and/or minimize the impact of cyber-attacks or other breaches of our information systems; our continued investment in research and development; the supply and price of components and raw materials, including CdTe; our ability to convert existing or construct production facilities to support new product lines; our ability to attract and retain key executive officers and associates; the severity and duration of the COVID-19 pandemic, including its potential impact on our business, financial condition, and results of operations; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission.

Contacts

First Solar Investors

[email protected]

First Solar Media

[email protected]

FIRST SOLAR, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

		March 31, 2021				December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents		$	972,879			$	1,227,002
Marketable securities (amortized cost of $562,880 and $519,844 and allowance for credit losses of $138 and $121 at March 31, 2021 and December 31, 2020, respectively)		562,735				520,066
Accounts receivable trade		795,923				269,095
Less: allowance for credit losses		(5,827		)		(3,009		)
Accounts receivable trade, net		790,096				266,086
Accounts receivable, unbilled		27,280				26,673
Less: allowance for credit losses		(276		)		(303		)
Accounts receivable, unbilled, net		27,004				26,370
Inventories		550,270				567,587
Project assets		6,984				—
Assets held for sale		—				155,685
Prepaid expenses and other current assets		226,922				251,739
Total current assets		3,136,890				3,014,535
Property, plant and equipment, net		2,397,986				2,402,285
PV solar power systems, net		236,416				243,396
Project assets		284,201				373,377
Deferred tax assets, net		106,803				104,099
Restricted marketable securities (amortized cost of $247,628 and allowance for credit losses of $13 at December 31, 2020)		—				265,280
Goodwill		14,462				14,462
Intangible assets, net		53,404				56,138
Inventories		205,096				201,229
Other assets		673,652				434,130
Total assets		$	7,108,910			$	7,108,931
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	186,087			$	183,349
Income taxes payable		15,351				14,571
Accrued expenses		217,483				310,467
Current portion of long-term debt		2,453				41,540
Deferred revenue		206,530				188,813
Liabilities held for sale		—				25,621
Other current liabilities		41,437				83,037
Total current liabilities		669,341				847,398
Accrued solar module collection and recycling liability		128,135				130,688
Long-term debt		254,447				237,691
Other liabilities		362,207				372,226
Total liabilities		1,414,130				1,588,003
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value per share; 500,000,000 shares authorized; 106,310,928 and 105,980,466 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		106				106
Additional paid-in capital		2,853,891				2,866,786
Accumulated earnings		2,925,433				2,715,762
Accumulated other comprehensive loss		(84,650		)		(61,726		)
Total stockholders’ equity		5,694,780				5,520,928
Total liabilities and stockholders’ equity		$	7,108,910			$	7,108,931

FIRST SOLAR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

		Three Months Ended
		March 31, 2021				December 31, 2020				March 31, 2020
Net sales		$	803,374			$	609,232			$	532,124
Cost of sales		618,607				449,372				441,786
Gross profit		184,767				159,860				90,338
Operating expenses:
Selling, general and administrative		52,087				62,700				58,587
Research and development		19,873				22,670				25,613
Production start-up		11,354				16,716				4,482
Total operating expenses		83,314				102,086				88,682
Gain on sales of businesses, net		150,895				—				—
Operating income		252,348				57,774				1,656
Foreign currency loss, net		(2,595		)		(1,341		)		(398		)
Interest income		956				1,446				9,330
Interest expense, net		(2,996		)		(3,018		)		(6,789		)
Other income (expense), net		8,448				(3,279		)		(2,222		)
Income before taxes and equity in earnings		256,161				51,582				1,577
Income tax (expense) benefit		(46,490		)		66,400				89,215
Equity in earnings, net of tax		—				(2,279		)		(88		)
Net income		$	209,671			$	115,703			$	90,704
Net income per share:
Basic		$	1.98			$	1.09			$	0.86
Diluted		$	1.96			$	1.08			$	0.85
Weighted-average number of shares used in per share calculations:
Basic		106,088				105,976				105,595
Diluted		106,890				106,944				106,386

MALVERN, Pa., April 29, 2021 (GLOBE NEWSWIRE) — Recro Pharma, Inc. (“Recro”; NASD: REPH), a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges for companies developing oral solid dose drug products, today announced that the company will release financial results for the first quarter 2021 after the market close on Thursday, May 6, 2021. Recro’s management team will host a conference call and audio webcast at 4:30 p.m. ET on Thursday, May 6, 2021 to discuss the financial results and recent operational highlights.

To access the live conference call please dial (844) 243-4691 from the U.S. or (225) 283-0379 from outside the U.S. at least ten minutes prior to the start time and reference conference ID 4898666. Those interested in listening to the conference call live via webcast may do so by visiting the “Events” page in the Investor section of the Company’s website, www.recrocdmo.com. In addition, an archived webcast will be available on the Company’s website approximately two hours after the event and will be available for 30 days.

About Recro

Recro (NASD: REPH) is a contract development and manufacturing organization (CDMO) with capabilities from early feasibility to commercial manufacturing. With an expertise in solving complex manufacturing problems, Recro is a CDMO providing oral solid dosage form development, end-to-end regulatory support, clinical and commercial manufacturing, and packaging and logistics services to the global pharmaceutical market.

In addition to our experience in handling DEA controlled substances and developing and manufacturing modified release oral solid dosage forms, Recro has the expertise to deliver on our clients’ pharmaceutical development and manufacturing projects, regardless of complexity level. We do all of this in our best-in-class facilities, which total 120,000 square feet, in Gainesville, Georgia.

For more information about Recro’s CDMO solutions, visit recrocdmo.com.

Contacts:
Stephanie Diaz (Investors)
Vida Strategic Partners
415-675-7401
[email protected]

Tim Brons (Media)
Vida Strategic Partners
415-675-7402
[email protected]

Ryan D. Lake (CFO)
Recro
(484) 395-2436
[email protected]

SAINT PAUL, Minn., April 29, 2021 (GLOBE NEWSWIRE) — Image Sensing Systems, Inc. (“Image Sensing Systems”) (NASDAQ: ISNS), a global company dedicated to helping improve safety and efficiency for cities and highways, today announced that its Board of Directors has approved the following actions:

• The initiation of a quarterly cash dividend to common shareholders of $0.12 per share of common stock on May 20, 2021 to shareholders of record at the close of business on May 10, 2021.
• Authorized a stock buyback program under which it may repurchase up to 200,000 shares of common stock.
• The implementation of a holding company reorganization.
• The new holding company, Autoscope Technologies Corporation, will become the new parent company of Image Sensing Systems.
• Image Sensing Systems’ current Executive Chairman, Andrew Berger, will be transitioning to Autoscope Technologies Corporation’s Chief Executive Officer.

The holding company will be named Autoscope Technologies Corporation, which is intended to highlight the Company’s most successful and enduring product while also creating a new roadmap for future value creation by signaling a new company strategy and structure. Autoscope Technologies Corporation will focus on high-return internal growth opportunities while seeking selective acquisitions which can leverage its existing assets and infrastructure.

“Over the last five years, Image Sensing Systems has prudently rebuilt its balance sheet while significantly improving its bottom line profitability and cash flow. By reorganizing and building on the success of the Autoscope brand, we will work on growing the business with a focus on organic opportunities while also examining acquisitions and partnerships that can leverage the reputation, assets, and talents within the Company. We intend to transform the Company into a group of profitable business lines marketed to a diverse customer base that generates sustainably higher earnings,” said Andrew Berger, Chief Executive Officer of Autoscope Technologies Corporation.

“In conjunction with the holding company structure, we believe the initiation of a dividend and a stock repurchase program will provide predictable ongoing returns and underscores our commitment to deliver long-term value to our shareholders, while allowing the business to simultaneously invest in growth opportunities,” continued Berger.

“The Board would like to thank Chad Stelzig for his efforts on strengthening Image Sensing Systems under his leadership and is looking forward to his continued success as Image Sensing System’s CEO,” added Berger.

The reorganization is expected to be completed by the end of the second quarter of 2021. When implemented, the reorganization will result in a new holding company, Autoscope Technologies Corporation, that will become the new parent company of Image Sensing Systems and will replace Image Sensing Systems as the public company trading on Nasdaq.

Under the planned holding company reorganization, existing shares of Image Sensing Systems would be automatically converted on a one-for-one basis into shares of common stock of Autoscope Technologies Corporation. Shareholders would not need to return stock certificates or otherwise take any action with respect to their shares of Image Sensing Systems common stock. It is anticipated that the holding company reorganization would be a tax-free transaction for U.S. federal income tax purposes for Image Sensing Systems and its shareholders. The public company reorganization is not expected to result in a change in the directors, executive officers, management, or business of Image Sensing Systems.

About Image Sensing Systems

Image Sensing Systems, Inc. is a global company dedicated to helping improve safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications and solutions. We give Intelligent Transportation Systems (ITS) professionals more precise and accurate information – including real-time reaction capabilities and in-depth analytics – to make more confident and proactive decisions. We are headquartered in St. Paul, Minnesota. Visit us on the web at imagesensing.com.

Safe Harbor Statement:  Statements made in this release concerning the Company’s or management’s intentions, expectations, or predictions about future results or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company’s control; developments in the demand for the Company’s products and services; relationships with the Company’s major customers and suppliers; the mix of and margins on the products we sell; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; adverse weather conditions in our markets; the impact of governmental laws, regulations, and orders, including as a result of the COVID-19 pandemic caused by the coronavirus; international presence; tariffs and other trade barriers; our success in integrating any acquisitions; potential disruptions to our supply chains (including disruptions caused by geopolitical events, military actions, work stoppages, nature disasters, or international health emergencies, such as the COVID-19 pandemic); and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company’s current expectations are contained in the Company’s reports and other documents filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 11, 2021.

Contact:           Frank Hallowell, Chief Financial Officer

Image Sensing Systems, Inc. Phone: 651.603.7744