Market Newsdesk

April 29, 2021 6:33 am

ALLETE Board of Directors Declares Dividend on Common Stock

ALLETE Board of Directors Declares Dividend on Common Stock

DULUTH, Minn.–(BUSINESS WIRE)–
The ALLETE, Inc. (NYSE:ALE) board of directors has declared a quarterly dividend of 63 cents per share of common stock.

On an annual basis the dividend is equivalent to $2.52 per share, unchanged from the previous quarter.

The regular quarterly dividend is payable June 1 to common stock shareholders of record at the close of business May 14, 2021.

ALLETE Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth; BNI Energy, based in Bismarck, N.D.; and has an 8 percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005144/en/

InvestorContact:

Vince Meyer

218-723-3952

[email protected]

KEYWORDS: Minnesota United States North America

INDUSTRY KEYWORDS: Other Energy Utilities Oil/Gas Coal Alternative Energy Energy

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April 29, 2021 6:33 am

Wabtec Reports First Quarter 2021 Results; Updates 2021 Guidance

Wabtec Reports First Quarter 2021 Results; Updates 2021 Guidance

Delivered Strong Cash Flow from Operations of $292 Million
First Quarter Reported GAAP Earnings Per Share of $0.59; Adjusted EPS of $0.89
Converted Key Long-term Orders, Strengthening Book-to-Bill
Expanded Into Global Maintenance of Way Market with Strategic Acquisition of Nordco
On-track to Deliver $250 Million Run-Rate of Synergies From GE Transportation Merger in 2021

PITTSBURGH–(BUSINESS WIRE)–Wabtec Corporation (NYSE: WAB) today reported first quarter 2021 earnings per diluted share of $0.59 and adjusted earnings per diluted share of $0.89, versus earnings per diluted share of $0.58 and adjusted earnings per diluted share of $0.97 a year ago. Total sales were $1.8 billion and cash from operations was strong at $292 million.

“Wabtec had a strong operational quarter,” said Rafael Santana, Wabtec’s president and chief executive officer. “Our team continued to deliver for our customers, while driving significant cash generation and aggressively reducing costs. This solid execution, balanced with investments in high-return opportunities, like our recent strategic acquisition of Nordco, will continue to create value and drive strong returns for shareholders.

“We are seeing continued signs of recovery happening across the global Freight and Transit rail markets. Freight volumes and equipment utilization are gradually improving, demand for freight aftermarket services is increasing, and sustainable investment in global transit remains strong. These directional trends, along with our backlog, strong cash flow and order pipeline position Wabtec to deliver profitable long-term growth.”

First Quarter 2021 Financial Summary

In the first quarter of 2021, Wabtec had cash from operations of $292 million, sales of $1.8 billion and GAAP earnings per diluted share of $0.59. Adjusted earnings per diluted share was $0.89 and excluded after-tax expenses of $0.06 for restructuring and transaction costs and $0.27 for non-cash amortization expense, offset by $0.03 for foreign currency gains (see reconciliation table).

Backlog improved sequentially driven by orders for modernizations, service agreements and Transit products. At March 31, 2021, Wabtec’s total multi-year backlog was $21.7 billion, which was higher than at December 31, 2020 as OEM and after-market orders increased in Freight. At March 31, 2021 the 12-month backlog was $5.7 billion which was $185 million higher than December 31, 2020.

2021 Financial Guidance

Wabtec updated its 2021 sales guidance to a range of $7.7 billion to $7.9 billion, GAAP earnings per diluted share guidance to between $2.80 to $3.05 and adjusted earnings per diluted share to between $4.05 to $4.30. The adjusted guidance excludes estimated expenses for restructuring and amortization expenses.
With cost actions and synergies stemming from the Wabtec and GE Transportation merger on-track, we expect to achieve a run rate savings of $250 million in 2021 as well as margin expansion through continued cost actions. For full year 2021, Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90%.

2021 First Quarter Consolidated Results

Sales were $1.8 billion versus $1.9 billion in the same period a year ago. The decrease compared to the year-ago quarter was primarily driven by lower sales in Freight Equipment, but partially offset by growth in Freight Services.
Income from operations was $192 million (10.5 percent of sales) and adjusted income from operations was $277 million (15.1 percent of sales), which was unfavorably impacted by lower sales in Freight primarily due to lower deliveries of locomotives in North America offset somewhat by realization of synergies and cost actions. Adjusted income from operations excluded pre-tax expenses of $85 million, of which $70 million is for non-cash amortization expense and $16 million is for restructuring and transaction costs (see reconciliation table).
Net interest expense was $48 million and the reported and adjusted effective tax rate for the quarter was 27.5 percent including certain discrete tax expenses of about $3 million during the quarter.
EBITDA, which Wabtec defines as earnings before interest, taxes, depreciation and amortization was $324 million and adjusted EBITDA was $340 million. Adjusted EBITDA excluded pre-tax expenses of $16 million for transaction and restructuring costs (see reconciliation table).

2021 First Quarter Freight Segment Results

Freight segment sales of $1.2 billion decreased by 9 percent from the year-ago quarter. The decrease was due to lower organic sales of $115 million. Freight segment sales benefited from growth in Freight Services as result of higher modernizations, lower locomotive parking and higher utilization, as well as higher mining sales. This growth was offset by on-going disruption due to the COVID-19 pandemic and lower deliveries of locomotives in North America.
Freight segment income from operations was $142 million (12.0 percent of segment sales) and adjusted income from operations of $214 million (18.1 percent of segment sales). Freight segment adjusted income from operations decreased 11 percent from the year-ago quarter primarily driven by mix of sales, lower absorption of fixed costs due to decreased locomotive deliveries offset somewhat by synergies and lower operating costs.

2021 First Quarter Transit Segment Results

Transit segment sales of $647 million increased by 3 percent from the year-ago quarter. Organic sales decreased by $31 million but were offset by favorable foreign currency exchange rates of $49 million. Organic transit segment sales were primarily impacted by the on-going disruption caused by the COVID-19 pandemic.
Transit segment income from operations was $70 million (10.8 percent of segment sales) and adjusted income from operations was $79 million (12.2 percent of segment sales). Transit segment adjusted income from operations increased from the year-ago quarter by 6 percent as a result of continued improvement in operational performance, improved risk management and cost actions.

Cash Flow and Liquidity Summary

The company generated cash from operations of $292 million for the first quarter compared to cash used for operations of $82 million a year ago. The strong cash performance during the quarter was driven by good operational performance and focused working capital management, along with a benefit of $93 million from accounts receivable securitization.
At the end of the quarter, the company had cash and cash equivalents of $484 million and debt of $4.3 billion. At March 31, 2021 the company’s total available liquidity, which includes $484 million in cash and cash equivalents plus $1.2 billion available under current credit facilities, was $1.7 billion.
As previously announced on March 23, 2021, Wabtec completed its acquisition of Nordco for approximately $400 million in cash. Nordco joined Wabtec as a part of its Freight Services group.

Conference Call Information

Wabtec will host a call with analysts and investors at 8:30 a.m., ET, today. To listen via webcast, go to Wabtec’s new website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. Also, an audio replay of the call will be available by calling 1-877-344-7529 or 1-412-317-0088 (access code: 10152678).

About Wabtec Corporation

Wabtec Corporation is a leading global provider of equipment, systems, digital solutions and value-added services for freight and transit rail. Drawing on nearly four centuries of collective experience across Wabtec, GE Transportation and Faiveley Transport, the company has unmatched digital expertise, technological innovation, and world-class manufacturing and services, enabling the digital-rail-and-transit ecosystems. Wabtec is focused on performance that drives progress, creating transportation solutions that move and improve the world. The freight portfolio features a comprehensive line of locomotives, software applications and a broad selection of mission-critical controls systems, including Positive Train Control (PTC). The transit portfolio provides highly engineered systems and services to virtually every major rail transit system around the world, supplying an integrated series of components for buses and all train-related market segments that deliver safety, efficiency and passenger comfort. Along with its industry-leading portfolio of products and solutions for the rail and transit industries, Wabtec is a leader in mining, marine, and industrial solutions. Based in Pittsburgh, PA, Visit: www.WabtecCorp.com

Information about non-GAAP Financial Information and Forward-Looking Statements

Wabtec’s earnings release and 2021 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, EBITDA, adjusted EBITDA, adjusted effective tax rate, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted earnings per diluted share and book-to-bill ratio. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Wabtec defines book-to-bill ratio, for which there is no comparable GAAP financial measure, as orders divided by sales. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.

This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the acquisition by Wabtec of GE Transportation (the “GE Transportation merger”), statements regarding Wabtec’s expectations about future sales and earnings, and statements about the impact of evolving global conditions on Wabtec’s business. All statements, other than historical facts, including statements regarding synergies from the GE Transportation merger; statements regarding Wabtec’s plans, objectives, expectations and intentions; and statements regarding macro-economic conditions and evolving production and demand conditions; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) unexpected costs, charges or expenses resulting from acquisitions, including the GE Transportation merger; (2) uncertainty of Wabtec’s expected financial performance; (3) failure to realize the anticipated benefits of acquisitions, including the GE Transportation merger, including as a result of integrating acquired targets into Wabtec; (4) Wabtec’s ability to implement its business strategy; (5) difficulties and delays in achieving revenue and cost synergies; (6) inability to retain and hire key personnel; (7) evolving legal, regulatory and tax regimes; (8) changes in general economic and/or industry specific conditions, including the impacts of tax and tariff programs, industry consolidation and changes in the financial condition or operating strategies of our customers; (9) changes in the expected timing of projects; (10) a decrease in freight or passenger rail traffic; (11) an increase in manufacturing costs; (12) actions by third parties, including government agencies; (13) the severity and duration of the evolving COVID-19 pandemic and the resulting impact on the global economy and, in particular, our customers, suppliers and end-markets, and (14) other risk factors as detailed from time to time in Wabtec’s reports filed with the SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020
(AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA)
(UNAUDITED)


	Three Months Ended
	March 31,
		2021			2020


Net sales	$	1,830.2		$	1,929.9
Cost of sales		(1,296.0	)		(1,351.2	)
Gross profit		534.2			578.7
Gross profit as a % of Net Sales		29.2	%		30.0	%

Selling, general and administrative expenses		(235.4	)		(243.4	)
Engineering expenses		(37.7	)		(49.0	)
Amortization expense		(69.5	)		(69.0	)
Total operating expenses		(342.6	)		(361.4	)
Operating expenses as a % of Net Sales		18.7	%		18.7	%

Income from operations		191.6			217.3
Income from operations as a % of Net Sales		10.5	%		11.3	%

Interest expense, net		(47.6	)		(53.3	)
Other income (expense), net		14.2			(14.8	)
Income before income taxes		158.2			149.2

Income tax expense		(43.5	)		(38.0	)
Effective tax rate		27.5	%		25.5	%

Net income		114.7			111.2

Less: Net (income) loss attributable to noncontrolling interest		(2.3	)		0.4

Net income attributable to Wabtec shareholders	$	112.4		$	111.6

Earnings Per Common Share
Basic
Net income attributable to Wabtec shareholders	$	0.59		$	0.58

Diluted
Net income attributable to Wabtec shareholders	$	0.59		$	0.58


Basic		188.5			190.8
Diluted		188.9			191.4

Segment Information
Freight Net Sales	$	1,183.3		$	1,301.0
Freight Income from Operations	$	141.8		$	161.7
Freight Operating Margin		12.0	%		12.4	%

Transit Net Sales	$	646.9		$	628.9
Transit Income from Operations	$	70.1		$	68.6
Transit Operating Margin		10.8	%		10.9	%

Backlog Information (Note: 12-month is a sub-set of total)	March 31, 2021			December 31, 2020
Freight Total	$	18,005.5		$	17,887.1
Transit Total		3,666.0			3,704.2
Wabtec Total	$	21,671.5		$	21,591.3

Freight 12-Month	$	3,910.2		$	3,586.3
Transit 12-Month		1,796.0			1,934.4
Wabtec 12-Month	$	5,706.2		$	5,520.7

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)


	March 31, 2021		December 31, 2020
In millions
Cash and cash equivalents	$	483.5	$	598.7
Receivables, net		1,403.0		1,412.5
Inventories		1,671.5		1,642.1
Other current assets		221.0		226.5
Total current assets		3,779.0		3,879.8
Property, plant and equipment, net		1,575.5		1,601.6
Goodwill		8,625.7		8,485.2
Other intangible assets, net		3,927.2		3,869.2
Other noncurrent assets		635.8		618.7
Total assets	$	18,543.2	$	18,454.5
Current liabilities	$	3,168.9	$	3,226.3
Long-term debt		3,923.3		3,792.2
Long-term liabilities – other		1,273.9		1,283.3
Total liabilities		8,366.1		8,301.8
Shareholders’ equity		10,144.1		10,122.3
Noncontrolling interest		33.0		30.4
Total shareholders’ equity		10,177.1		10,152.7
Total Liabilities and Shareholders’ Equity	$	18,543.2	$	18,454.5

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Three Months Ended March 31,
		2021			2020
In millions
Operating activities
Net income	$	114.7		$	111.2
Non-cash expense		115.6			85.5
Receivables		9.3			(22.6	)
Inventories		(11.2	)		(23.5	)
Accounts Payable		47.0			(60.2	)
Other assets and liabilities		16.8			(172.3	)
Net cash provided by (used for) operating activities		292.2			(81.9	)

Net cash used for investing activities		(422.0	)		(62.6	)

Net cash provided by financing activities		7.7			183.5

Effect of changes in currency exchange rates		6.9			(27.3	)

(Decrease) increase in cash		(115.2	)		11.7

Cash and cash equivalents, beginning of period		598.7			604.2
Cash and cash equivalents, end of period	$	483.5		$	615.9

Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.

Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions)	First Quarter 2021 Actual Results
			Gross		Operating			Income from		Interest &									Noncontrolling			Wabtec
	Net Sales		Profit		Expenses			Operations		Other Exp			Tax			Net Income			Interest			Net Income			EPS

Reported Results	$	1,830.2	$	534.2	$	(342.6	)	$	191.6	$	(33.4	)	$	(43.5	)	$	114.7		$	(2.3	)	$	112.4		$	0.59

Restructuring & Transaction costs		–		4.1		11.4			15.5		–			(4.3	)		11.2			–			11.2		$	0.06

Non-cash Amortization expense		–		–		69.5			69.5		–			(19.1	)		50.4			–			50.4		$	0.27

Foreign Exchange Gain		–		–		–			–		(8.6	)		2.4			(6.2	)		–			(6.2	)	$	(0.03	)

Adjusted Results	$	1,830.2	$	538.3	$	(261.7	)	$	276.6	$	(42.0	)	$	(64.5	)	$	170.1		$	(2.3	)	$	167.8		$	0.89

Fully Diluted Shares Outstanding																										188.9



Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions)	First Quarter 2020 Actual Results
			Gross		Operating			Income from		Interest &									Noncontrolling			Wabtec
	Net Sales		Profit		Expenses			Operations		Other Exp			Tax			Net Income			Interest			Net Income			EPS
Reported Results	$	1,929.9	$	578.7	$	(361.4	)	$	217.3	$	(68.1	)	$	(38.0	)	$	111.2		$	0.4		$	111.6		$	0.58

Restructuring, Transaction, & Litigation costs		–		1.4		15.5			16.9		–			(4.3	)		12.6			–			12.6		$	0.07

Non-cash Amortization expense		–		–		69.0			69.0		–			(17.6	)		51.4			–			51.4		$	0.27

Foreign Exchange Loss		–		–		–			–		13.8			(3.5	)		10.3			–			10.3		$	0.05

Adjusted Results	$	1,929.9	$	580.1	$	(276.9	)	$	303.2	$	(54.3	)	$	(63.4	)	$	185.5		$	0.4		$	185.9		$	0.97

Fully Diluted Shares Outstanding																										191.4

Wabtec Corporation

2021 Q1 EBITDA Reconciliation

(in millions)

Reported Income

Other Income

Depreciation &

EBITDA

Restructuring &

Adjusted

from Operations

(Expense)

Amortization

Transaction Costs

EBITDA

Consolidated Results

$191.6

$14.2

$118.3

$324.1

$15.5

$339.6

Wabtec Corporation

2020 Q1 EBITDA Reconciliation

(in millions)

Reported Income

Other Income

Depreciation &

EBITDA

Restructuring &

Adjusted

from Operations

(Expense)

Amortization

Transaction Costs

EBITDA

Consolidated Results

$217.3

($14.8)

$114.4

$316.9

$16.9

$333.8

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
SALES BY PRODUCT LINE
(UNAUDITED)

	Three Months Ended March 31,
In millions		2021		2020
Freight Segment
Equipment	$	261.8	$	408.0
Components		202.5		220.4
Digital Electronics		156.5		173.6
Services		562.5		499.0
Total Freight Segment		1,183.3		1,301.0

Transit Segment
Original Equipment Manufacturer	$	286.8	$	287.0
Aftermarket		360.1		341.9
Total Transit Segment		646.9		628.9

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS – BY SEGMENT
(UNAUDITED)

	Three Months Ended March 31,
In millions	2021	2020

Freight Segment Reported Income from Operations	$ 141.8	$ 161.7
Freight Segment Reported Margin	12.0%	12.4%

Restructuring & Transaction costs	7.8	14.8
Non-cash Amortization expense	64.5	64.1

Freight Segment Adjusted Income from Operations	$ 214.1	$ 240.6
Freight Segment Adjusted Margin	18.1%	18.5%


Transit Segment Reported Income from Operations	$ 70.1	$ 68.6
Transit Segment Reported Margin	10.8%	10.9%

Restructuring & Transaction costs	3.8	1.1
Non-cash Amortization expense	5.0	4.9

Transit Segment Adjusted Income from Operations	$ 78.9	$ 74.6
Transit Segment Adjusted Margin	12.2%	11.9%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005105/en/

Wabtec Investor Contact

Kristine Kubacki, CFA / [email protected] / 412-450-2033

Wabtec Media Contact

Deia Campanelli / [email protected] / 773-297-0482

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Software Transportation Travel Other Transport Rail Technology Logistics/Supply Chain Management Transport

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April 29, 2021 6:33 am

HEXO Corp to Participate in Alliance Global Partners 2021 Spring Consumer Cannabis Conference on May 4, 2021

OTTAWA, April 29, 2021 (GLOBE NEWSWIRE) — HEXO Corp (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced that CEO, Sebastien St-Louis, and CFO, Trent MacDonald, will participate in the Alliance Global Partners 2021 Spring Consumer Cannabis Conference on May 4, 2021.

HEXO’s CEO Sebastien St-Louis will also be featured on a thematic panel on the Evolving Competitive Environment Within Canada at 9:00 a.m. ET. Participants may register for a live webcast of the panel by going to the “Events” page on hexocorp.com. For more information, please contact your A.G.P. representative.

About HEXO (TSX: HEXO; NYSE: HEXO)

HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. The Company serves the Canadian adult-use markets under its HEXO, HEXO Plus, Up, Original Stash and Bake Sale brands and the medical market under HEXO medical cannabis. For more information, please visit hexocorp.com.

Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors that could cause actual events, results, performance and achievements to differ materially from those anticipated in these forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

Investor Relations:

[email protected]

www.hexocorp.com

Media Relations:

(819) 317-0526

[email protected]

April 29, 2021 6:33 am

Aerie Pharmaceuticals Completes Enrollment of its Phase 2b Clinical Trial of AR-15512 (TRPM8 Agonist) Ophthalmic Solution for the Treatment of Patients with Dry Eye Disease

Aerie Pharmaceuticals Completes Enrollment of its Phase 2b Clinical Trial of AR-15512 (TRPM8 Agonist) Ophthalmic Solution for the Treatment of Patients with Dry Eye Disease

Topline results expected in the third quarter of 2021

DURHAM, N.C.–(BUSINESS WIRE)–
Aerie Pharmaceuticals, Inc. (NASDAQ: AERI), an ophthalmic pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with open-angle glaucoma, ocular surface diseases and retinal diseases, today announced the completion of patient enrollment for COMET-1, a Phase 2b clinical trial of AR-15512 (TRPM8 Agonist) (“AR-15512”) ophthalmic solution for the treatment of patients with dry eye disease.

The first patient to enter this randomized, double-masked, vehicle-controlled Phase 2b clinical trial evaluating the efficacy and safety of AR-15512 in patients with dry eye disease was dosed in October 2020. A total of 369 patients were randomized across three arms, AR-15512 (0.0014%), AR-15512 (0.003%) or AR-15512 vehicle. Patients were given one drop twice daily in each eye over three months. Patients are evaluated at days 14, 28 and 84, with the primary efficacy measures of ocular discomfort (a symptom) and tear production (a sign). The regulatory pathway for dry eye product approval requires that both safety and efficacy need to be demonstrated in at least 2 well-controlled clinical trials. Efficacy for sign and symptom do not need to be shown in the same trial but both have to be shown in multiple trials. More information about the clinical trial is available at www.clinicaltrials.gov under the study designation NCT04498182.

“With an estimated 30 million dry eye sufferers in the United States and less than 3 million treated, there remains a significant unmet need in the treatment of dry eye disease. When activated, the TRPM8 receptor may increase tear production, a sign for dry eye disease, and its cooling sensation may lead to reduction in discomfort and ocular pain, a symptom of dry eye disease. This unique mechanism of action targeting both the signs and symptoms of dry eye disease is different from currently marketed eye products and we believe has the potential for use as a monotherapy and in conjunction with other approved products,” said Vicente Anido, Jr., Ph.D., Chairman and Chief Executive Officer at Aerie. “We are pleased that our dry eye clinical activities continue to advance with the completion of enrollment in this Phase 2b clinical trial, COMET-1. We currently expect to report topline results for this trial in the third quarter of this year.”

AR-15512, formerly AVX-012, was acquired by Aerie in November 2019 in connection with the acquisition of Avizorex Pharma, S.L., a Spanish ophthalmic pharmaceutical company developing therapeutics for the treatment of dry eye disease. AR-15512 has intellectual property protection for pharmaceutical composition and method of use through 2031.

About Aerie Pharmaceuticals, Inc.

Aerie is an ophthalmic pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with open-angle glaucoma, ocular surface diseases and retinal diseases. Aerie’s first product, Rhopressa^® (netarsudil ophthalmic solution) 0.02%, a once-daily eye drop approved by the U.S. Food and Drug Administration (FDA) for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension, was launched in the United States in April 2018. In clinical trials of Rhopressa^®, the most common adverse reactions were conjunctival hyperemia, corneal verticillata, instillation site pain, and conjunctival hemorrhage. More information about Rhopressa^®, including the product label, is available at www.rhopressa.com. Aerie’s second product for the reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension, Rocklatan^® (netarsudil and latanoprost ophthalmic solution) 0.02%/0.005%, the first and only fixed-dose combination of Rhopressa^® and the widely-prescribed PGA (prostaglandin analog) latanoprost, was launched in the United States in May 2019. In clinical trials of Rocklatan^®, the most common adverse reactions were conjunctival hyperemia, corneal verticillata, instillation site pain, and conjunctival hemorrhage. More information about Rocklatan^®, including the product label, is available at www.rocklatan.com. Aerie continues to focus on global expansion and the development of additional product candidates and technologies in ophthalmology, including for wet age-related macular degeneration and diabetic macular edema. More information is available at www.aeriepharma.com.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “exploring,” “pursuing” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the duration and severity of the coronavirus disease (COVID-19) outbreak, including the impact on our clinical and commercial operations, demand for our products and financial results and condition of our global supply chains; our expectations regarding the commercialization and manufacturing of Rhopressa^®, Rocklatan^®, Rhokiinsa^® and Roclanda^® or any product candidates, including AR-15512, or other future product candidates, including the timing, cost or other aspects of their commercial launch; our commercialization, marketing, manufacturing and supply management capabilities and strategies in and outside of the United States; the success, timing and cost of our ongoing and anticipated preclinical studies and clinical trials for Rhopressa^® and Rocklatan^®, with respect to regulatory approval outside of the United States, and any product candidates, including AR-15512, or future product candidates, including statements regarding the timing of initiation and completion of the studies and trials; our expectations regarding the effectiveness of Rhopressa^®, Rocklatan^®, Rhokiinsa^®, Roclanda^® or any product candidates, including AR-15512, or other future product candidates; the timing of and our ability to request, obtain and maintain FDA or other regulatory authority approval of, or other action with respect to, as applicable, Rhopressa^®, Rocklatan^® or any product candidates, preclinical implants or future product candidates; the potential advantages of Rhopressa^® and Rocklatan^® or any product candidates or future product candidates; our plans to pursue development of additional product candidates and technologies; our plans to explore possible uses of our existing proprietary compounds beyond glaucoma, including development of our retina program; our ability to protect our proprietary technology and enforce our intellectual property rights or to develop new intellectual property; and our expectations regarding strategic operations, including our ability to in-license or acquire additional ophthalmic products, product candidates or technologies. In particular, FDA and European Medicines Agency (EMA) approval of Rhopressa^® and Rocklatan^® do not constitute regulatory approval of Rhopressa^® and Rocklatan^® in other jurisdictions, and there can be no assurance that we will receive regulatory approval for Rhopressa^® and Rocklatan^® in such other jurisdictions, including Japan’s PMDA. In addition, FDA approval of Rhopressa^® and Rocklatan^® do not constitute FDA approval of our product candidates, including AR-15512, or any future product candidates, and there can be no assurance that we will receive FDA approval for our product candidates or any future product candidates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics, industry change and other factors beyond our control, and depend on regulatory approvals and economic and other environmental circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We discuss many of these risks in greater detail under the heading “Risk Factors” in the quarterly and annual reports that we file with the Securities and Exchange Commission (SEC). Forward-looking statements are not guarantees of future performance and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements that we make in this press release speak only as of the date of this press release. We assume no obligation to update our forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005235/en/

Media: Tad Heitmann 949-526-8747; [email protected]

Investors: Ami Bavishi 908-947-3949; [email protected]

KEYWORDS: United States North America North Carolina New York

INDUSTRY KEYWORDS: General Health Health Pharmaceutical Optical Clinical Trials

MEDIA:

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April 29, 2021 6:33 am

Teleflex Reports First Quarter 2021 Results

First quarter 2021 revenues of $633.9 million, up 0.5% versus prior year period on an as-reported basis; down 2.6% on a constant currency basis

First quarter 2021 GAAP diluted EPS from continuing operations of $1.58, compared to $2.78 in the prior year period

First quarter 2021 adjusted diluted EPS from continuing operations of $2.87, up 5.5% versus prior year period

Raises 2021 guidance range for GAAP revenue growth from a range of between 10.0% and 11.5% to a range of between 10.50% and 11.75%

Raises 2021 guidance range for constant currency revenue growth from a range of between 8.0% and 9.5% to a range of between 8.50% and 9.75%

Lowers 2021 guidance range for GAAP diluted EPS from continuing operations from a range of between $8.15 and $8.25 to a range of between $8.00 and $8.10

Raises 2021 guidance range for adjusted diluted EPS from continuing operations from a range of between $12.50 and $12.70 to a range of between $12.65 and $12.85

Announces 2021 Restructuring Plan

WAYNE, Pa., April 29, 2021 (GLOBE NEWSWIRE) — Teleflex Incorporated (NYSE: TFX) (the “Company”) today announced financial results for the first quarter ended March 28, 2021.

First quarter 2021 net revenues were $633.9 million, an increase of 0.5% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 2.6% over the year ago period.

First quarter 2021 GAAP earnings per share from continuing operations decreased 43.2% to $1.58, compared to $2.78 in the prior year period. First quarter 2021 adjusted diluted earnings per share from continuing operations increased 5.5% to $2.87, compared to $2.72 in the prior year period.

Liam Kelly, Chairman, President and Chief Executive Officer, said, “The first quarter of 2021 was a strong start to the year for Teleflex, one in which we exceeded our expectations for revenue, led by the performance of the Americas and Asia.”

Mr. Kelly continued, “In addition to strong first quarter top-line performance, we generated the highest adjusted gross and operating margins since becoming a pure-play medical device company, resulting in an adjusted earnings per share amount of $2.87, which also exceeded expectations.”

Mr. Kelly concluded, “Based on our results for the first quarter, as well as our outlook for the remainder of the year, we are raising our full year constant currency revenue guidance range and our full year adjusted earnings per share guidance range.”

NET REVENUE BY SEGMENT

The following tables and commentary provide information regarding net revenues in each of the Company’s reportable operating segments for the three months ended March 28, 2021 on both a GAAP and constant currency basis. The discussion below the tables of the principal factors behind changes in net revenues for the three months ended March 28, 2021 as compared to the prior year period applies to both GAAP revenue and constant currency revenue, although GAAP revenue also was affected by foreign currency exchange rate fluctuations, as indicated in the “Currency Impact” column of the table.

	Three Months Ended				% Increase / (Decrease)
	March 28, 2021		March 29, 2020		Total Sales Growth	Currency Impact	Constant Currency Revenue Growth
Americas	$	375.5	$	358.0	4.9%	0.2%	4.7%
EMEA		141.2		156.1	(9.5)%	7.4%	(16.9)%
Asia		63.7		53.1	19.9%	9.6%	10.3%
OEM		53.5		63.4	(15.6)%	1.5%	(17.1)%
Total	$	633.9	$	630.6	0.5%	3.1%	(2.6)%

Americas first quarter 2021 net revenues were $375.5 million, an increase of 4.9% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues increased 4.7% compared to the prior year period. The increase in constant currency revenue was primarily attributable to revenue generated by the acquisition of Z-Medica, LLC and an increase in sales of new products, partially offset by a net decrease in sales volumes of existing products caused by the COVID-19 pandemic.

EMEA first quarter 2021 net revenues were $141.2 million, a decrease of 9.5% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 16.9% compared to the prior year period. The decrease in constant currency revenue was primarily attributable to a net decrease in sales volumes of existing products caused by the COVID-19 pandemic.

Asia first quarter 2021 net revenues were $63.7 million, an increase of 19.9% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues increased 10.3% compared to the prior year period. The increase in constant currency revenue was primarily attributable to increased sales of new products and increased sales volumes of existing products.

OEM first quarter 2021 net revenues were $53.5 million, a decrease of 15.6% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 17.1% compared to the prior year period. The decrease in constant currency revenue was primarily attributable to a decrease in sales volumes of existing products caused by the COVID-19 pandemic, partially offset by net revenues generated by the acquisition of IWG High Performance Conductors, Inc.

NET REVENUE BY GLOBAL PRODUCT CATEGORY

The following tables and commentary provide information regarding net revenues in each of the Company’s global product categories for the three months ended March 28, 2021 on both a GAAP and constant currency basis.

	Three Months Ended				% Increase / (Decrease)
	March 28, 2021		March 29, 2020		Total Revenue Growth			Currency Impact		Constant Currency Revenue Growth
Vascular Access	$	164.0	$	150.3	9.1		%	3.3	%	5.8		%
Interventional		96.2		99.9	(3.8	)	%	2.6	%	(6.4	)	%
Anesthesia		84.9		75.7	12.1		%	5.1	%	7.0		%
Surgical		80.4		75.4	6.6		%	4.3	%	2.3		%
Interventional Urology		73.4		74.2	(1.1	)	%	0.2	%	(1.3	)	%
OEM		53.5		63.4	(15.6	)	%	1.5	%	(17.1	)	%
Other		81.7		91.7	(11.0	)	%	4.3	%	(15.3	)	%
Total	$	633.9	$	630.6	0.5		%	3.1	%	(2.6	)	%

First quarter 2021 net revenues from sales of Vascular Access products were $164.0 million, an increase of 9.1% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues increased 5.8% compared to the prior year period.

First quarter 2021 net revenues from sales of Interventional products were $96.2 million, a decrease of 3.8% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 6.4% compared to the prior year period.

First quarter 2021 net revenues from sales of Anesthesia products were $84.9 million, an increase of 12.1% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues increased 7.0% compared to the prior year period.

First quarter 2021 net revenues from sales of Surgical products were $80.4 million, an increase of 6.6% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues increased 2.3% compared to the prior year period.

First quarter 2021 net revenues from sales of Interventional Urology products were $73.4 million, a decrease of 1.1% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 1.3% compared to the prior year period.

First quarter 2021 net revenues from sales of OEM products were $53.5 million, a decrease of 15.6% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 17.1% compared to the prior year period.

First quarter 2021 net revenues from sales of other products were $81.7 million, a decrease of 11.0% compared to the prior year period. Excluding the impact of foreign currency exchange rate fluctuations, first quarter 2021 net revenues decreased 15.3% compared to the prior year period.

OTHER FINANCIAL HIGHLIGHTS AND KEY PERFORMANCE METRICS

Depreciation expense, amortization of intangible assets and deferred financing charges for the first quarter of 2021 totaled $60.6 million compared to $56.7 million for the prior year period.

Cash and cash equivalents at March 28, 2021 were $324.6 million compared to $375.9 million at December 31, 2020.

Net accounts receivable at March 28, 2021 were $401.1 million compared to $395.1 million at December 31, 2020.

Net inventories at March 28, 2021 were $512.3 million compared to $513.2 million at December 31, 2020.

2021 RESTRUCTURING PLAN

During the first quarter of 2021, we committed to a restructuring plan designed to streamline various business functions across our segments. We estimate that we will incur aggregate pre-tax restructuring charges of $7 million to $9 million, consisting primarily of termination benefits. In addition, we expect to incur $3 million to $4 million in restructuring related charges, most of which are expected to be recognized in cost of sales. We expect this program will be substantially completed by the end of 2021.

We expect to begin realizing plan-related savings in 2021 and expect to achieve annual pre-tax savings of $13 million to $16 million once the plan is fully implemented.

2021 OUTLOOK

The Company raised its full year 2021 GAAP revenue growth estimates from a range of between 10.0% and 11.5% over 2020, to a range of between 10.50% and 11.75% over 2020, reflecting our estimate of an approximately 2% favorable impact of foreign currency exchange rate fluctuations. On a constant currency basis, the Company raised its full year 2021 revenue growth estimates from a range of between 8.0% and 9.5% over 2020, to a range of between 8.50% and 9.75% over 2020. The Company reaffirmed its full year 2021 revenue growth estimate of 30% associated with its Interventional Urology business.

The Company lowered its full year 2021 GAAP diluted earnings per share from continuing operations from a range of between $8.15 and $8.25 to a range of between $8.00 and $8.10. The Company raised its full year 2021 adjusted diluted earnings per share from continuing operations from a range of between $12.50 and $12.70 to a range of between $12.65 and $12.85.

Forecasted 2021 Constant Currency Revenue Growth Reconciliation

	Low		High

Forecasted 2021 GAAP revenue growth	10.50	%	11.75	%

Estimated impact of foreign currency exchange rate fluctuations	2.00	%	2.00	%

Forecasted 2021 constant currency revenue growth	8.50	%	9.75	%

Forecasted 2021 Adjusted Diluted Earnings Per Share From Continuing Operations Reconciliation

	Low		High

Forecasted GAAP diluted earnings per share from continuing operations	$	8.00	$	8.10

Restructuring, restructuring related and impairment items, net of tax	$	0.71	$	0.72

Acquisition, integration and divestiture related items, net of tax	$	0.30	$	0.32

Other items, net of tax	$	0.17	$	0.19

MDR	$	0.48	$	0.50

Intangible amortization expense, net of tax	$	2.99	$	3.02

Forecasted adjusted diluted earnings per share from continuing operations	$	12.65	$	12.85

CONFERENCE CALL WEBCAST AND ADDITIONAL INFORMATION

As previously announced, Teleflex will comment on its financial results on a conference call to be held today at 8:00 a.m. (ET). The call will be available live and archived on the Company’s website at www.teleflex.com and the accompanying presentation will be posted prior to the call. An audio replay will be available until May 6, 2021 at 11:59pm (ET), by calling 800-585-8367 (U.S./Canada) or 416-621-4642 (International), Passcode: 6194708.

ADDITIONAL NOTES

References in this release to the impact of foreign currency exchange rate fluctuations on adjusted diluted earnings per share include both the impact of translating foreign currencies into U.S. dollars and the impact of foreign currency exchange rate fluctuations on foreign currency denominated transactions.

In the discussion of segment results, “new products” refers to products for which we initiated commercial sales within the past 36 months and “existing products” refers to products we have sold commercially for more than 36 months.

Certain financial information is presented on a rounded basis, which may cause minor differences.
Segment results and commentary exclude the impact of discontinued operations.

NOTES ON NON-GAAP FINANCIAL MEASURES

We report our financial results in accordance with accounting principles generally accepted in the United States, commonly referred to as “GAAP.” In this press release, we provide supplemental information, consisting of the following non-GAAP financial measures: constant currency revenue growth and adjusted diluted earnings per share. These non-GAAP measures are described in more detail below. Management uses these financial measures to assess Teleflex’s financial performance, make operating decisions, allocate financial resources, provide guidance on possible future results, and assist in its evaluation of period-to-period and peer comparisons. The non-GAAP measures may be useful to investors because they provide insight into management’s assessment of our business, and provide supplemental information pertinent to a comparison of period-to-period results of our ongoing operations. The non-GAAP financial measures are presented in addition to results presented in accordance with GAAP and should not be relied upon as a substitute for GAAP financial measures. Moreover, our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Tables reconciling changes in historical constant currency net revenues to historical GAAP net revenues are set forth above under “Net Revenue by Segment” and “Net Revenue by Global Product Category”. Tables reconciling historical adjusted diluted earnings per share from continuing operations to historical GAAP diluted earnings per share from continuing operations are set forth below.

Constant currency revenue growth: This non-GAAP measure is based upon net revenues, adjusted to eliminate the impact of translating the results of international subsidiaries at different currency exchange rates from period to period. The impact of changes in foreign currency may vary significantly from period to period, and such changes generally are outside of the control of our management. We believe that this measure facilitates a comparison of our operating performance exclusive of currency exchange rate fluctuations that do not reflect our underlying performance or business trends.

Adjusted diluted earnings per share: This non-GAAP measure is based upon diluted earnings per share from continuing operations, the most directly comparable GAAP measure, adjusted to exclude, depending on the period presented, the items described below. Management does not believe that any of the excluded items are indicative of our underlying core performance or business trends.

Restructuring, restructuring related and impairment items – Restructuring programs involve discrete initiatives designed to, among other things, consolidate or relocate manufacturing, administrative and other facilities, outsource distribution operations, improve operating efficiencies and integrate acquired businesses. Depending on the specific restructuring program involved, our restructuring charges may include employee termination, contract termination, facility closure, employee relocation, equipment relocation, outplacement and other exit costs associated with the restructuring program. Restructuring related charges are directly related to our restructuring programs and consist of facility consolidation costs, including accelerated depreciation expense related to facility closures, costs to transfer manufacturing operations between locations, and retention bonuses offered to certain employees as an incentive for them to remain with our company after completion of the restructuring program. Impairment charges occur if, due to events or changes in circumstances, we determine that the carrying value of an asset exceeds its fair value. Impairment charges do not directly affect our liquidity, but could have a material adverse effect on our reported financial results.

Acquisition, integration and divestiture related items – Acquisition and integration expenses are incremental charges, other than restructuring or restructuring related expenses, that are directly related to specific business or asset acquisition transactions. These charges may include, among other things, professional, consulting and other fees; systems integration costs; legal entity restructuring expense; inventory step-up amortization (amortization, through cost of goods sold, of the increase in fair value of inventory resulting from a fair value calculation as of the acquisition date); fair value adjustments to contingent consideration liabilities; and bridge loan facility and backstop financing fees in connection with loan facilities that ultimately were not utilized. Divestiture related activities involve specific business or asset sales. Depending primarily on the terms of a divestiture transaction, the carrying value of the divested business or assets on our financial statements and other costs we incur as a direct result of the divestiture transaction, we may recognize a gain or loss in connection with the divestiture related activities.

Other items – These are discrete items that occur sporadically and can affect period-to-period comparisons. See footnote C to the reconciliation tables set forth below.

European medical device regulation – The European Union (“EU”) has adopted the EU Medical Device Regulation (“MDR”), which replaces the existing Medical Devices Directive (“MDD”) and imposes more stringent requirements for the marketing and sale of medical devices in the EU, including requirements affecting clinical evaluations, quality systems and post-market surveillance. Manufacturers of currently marketed medical devices will have until May 2021 to meet the MDR requirements, although certain devices that previously satisfied MDD requirements can continue to be marketed in the EU until May 2024, subject to certain limitations. Significantly, the MDR will require the re-registration of previously approved medical devices. As a result, Teleflex will incur expenditures in connection with the new registration of medical devices that previously had been registered under the MDD. Therefore, these expenditures are not considered to be ordinary course expenditures in connection with regulatory matters (in contrast, no adjustment has been made to exclude expenditures related to the registration of medical devices that were not registered previously under the MDD).

Intangible amortization expense – Certain intangible assets, including customer relationships, intellectual property, distribution rights, trade names and non-competition agreements, initially are recorded at historical cost and then amortized over their respective estimated useful lives. The amount of such amortization can vary from period to period as a result of, among other things, business or asset acquisitions or dispositions.

Tax adjustments – These adjustments represent the impact of the expiration of applicable statutes of limitations for prior year returns, the resolution of audits, the filing of amended returns with respect to prior tax years and/or tax law or certain other discrete changes affecting our deferred tax liability.

RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME ITEMS

Dollars in millions, except per share amounts

Quarter Ended – March 28, 2021
	Cost of goods sold		Selling, general and administrative expenses		Research and development expenses		Restructuring and impairment charges		Income taxes			Income (loss) from continuing operations		Diluted earnings per share from continuing operations
GAAP Basis	$	289.4	$	203.1	$	29.9	$	8.0	$	12.4		$	74.9	$	1.58
Adjustments
Restructuring, restructuring related and impairment items (A)	6.3		0.3		—		8.0		2.1			12.5		$	0.26
Acquisition, integration and divestiture related items (B)	3.3		6.8		—		—		1.1			9.0		$	0.19
Other items (C)	—		—		—		—		—			—		—
MDR (D)	—		—		4.2		—		—			4.2		$	0.09
Intangible amortization expense	22.5		19.5		—		—		7.0			34.9		$	0.74
Tax adjustments	—		—		—		—		(0.6		)	0.6		$	0.01
Adjusted basis	$	257.3	$	176.6	$	25.8	$	—	$	22.1		$	136.1	$	2.87

RECONCILIATION OF CONSOLIDATED STATEMENT OF INCOME ITEMS

Dollars in millions, except per share amounts

Quarter Ended – March 29, 2020
	Cost of goods sold		Selling, general and administrative expenses			Research and development expenses		Restructuring and impairment charges		Income taxes			Income (loss) from continuing operations			Diluted earnings per share from continuing operations
GAAP Basis	$	297.0	$	147.8		$	27.4	$	1.3	$	11.1		$	131.2		$	2.78
Adjustments
Restructuring, restructuring related and impairment items (A)	4.9		0.2			—		1.3		0.8			5.7			$	0.12
Acquisition, integration and divestiture related items (B)	1.7		(44.3		)	—		—		0.4			(43.0		)	$	(0.91	)
Other items (C)	—		—			—		—		—			—			—
MDR (D)	—		—			1.8		—		—			1.8			$	0.04
Intangible amortization expense	20.9		17.9			0.1		—		6.2			32.7			$	0.69
Tax adjustments	—		—			—		—		(0.1		)	0.1			$	0.00
Adjusted basis	$	269.5	$	174.0		$	25.5	$	—	$	18.4		$	128.4		$	2.72

(A) Restructuring, restructuring related and impairment items – For the three months ended March 28, 2021, pre-tax restructuring charges were $8.0 million; pre-tax restructuring related charges were $6.6 million; and there were no pre-tax impairment charges. For the three months ended March 29, 2020, pre-tax restructuring charges were $1.3 million; pre-tax restructuring related charges were $5.1 million; and there were no pre-tax impairment charges.

(B) Acquisition, integration and divestiture related items – For the three months ended March 28, 2021, these charges primarily related to contingent consideration liabilities; reversal of previously recognized income related to a distributor conversion in Japan; and charges primarily related to our acquisition of Z-Medica, LLC. For the three months ended March 29, 2020, these items primarily related to the reversal of contingent consideration liabilities; and charges related to our acquisition of IWG High Performance Conductors, Inc. There were no divestiture related activities for the three months ended March 28, 2021 and March 29, 2020.

(D) MDR – These costs were associated with our efforts to comply with the European Medical Device Regulation.

ABOUT TELEFLEX INCORPORATED

Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation – a relentless pursuit of identifying unmet clinical needs – to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.

Teleflex is the home of Arrow^®, Deknatel^®, Hudson RCI^®, LMA^®, Pilling^®, Rusch^®, UroLift^®, and Weck^® – trusted brands united by a common sense of purpose.

CAUTION CONCERNING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements, including, but not limited to, statements regarding the restructuring plan we committed to in the first quarter of 2021, including with respect to the pre-tax restructuring and restructuring-related charges we expect to incur in connection with the plan, pre-tax savings we expect to achieve once the plan has been fully implemented and the expected timing for when the plan will be substantially completed; forecasted 2021 GAAP and constant currency revenue growth and GAAP and adjusted diluted earnings per share; and our estimates regarding the projected impact of foreign currency exchange rate fluctuations on our 2021 financial results. Actual results could differ materially from those in the forward-looking statements due to, among other things, the adverse economic conditions associated with the COVID-19 global health pandemic and the associated financial crisis, stay-at-home and other orders, which may significantly reduce customer spending and which may have a negative impact on the Company’s business, changes in business relationships with and purchases by or from major customers or suppliers; delays or cancellations in shipments; demand for and market acceptance of new and existing products; our inability to provide products to our customers, which may be due to, among other things, events that impact key distributors, suppliers and third-party vendors that sterilize our products; our inability to integrate acquired businesses into our operations, realize planned synergies and operate such businesses profitably in accordance with our expectations; the inability of acquired businesses to generate revenues in accordance with our expectations; our inability to effectively execute our restructuring plans and programs; our inability to realize anticipated savings from restructuring plans and programs; the impact of healthcare reform legislation and proposals to amend, replace or repeal the legislation; changes in Medicare, Medicaid and third party coverage and reimbursements; the impact of enacted tax legislation and related regulations; competitive market conditions and resulting effects on revenues and pricing; increases in raw material costs that cannot be recovered in product pricing; global economic factors, including currency exchange rates, interest rates, trade disputes, sovereign debt issues and the impact of the United Kingdom’s departure from the European Union, commonly known as “Brexit”; public health epidemics; difficulties in entering new markets; general economic conditions; and other factors described or incorporated in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. We expressly disclaim any obligation to update forward-looking statements, except as otherwise specifically stated by us or as required by law or regulation.


TELEFLEX INCORPORATED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 28, 2021			March 29, 2020

	(Dollars and shares in thousands, except per share)
Net revenues	$	633,925		$	630,642
Cost of goods sold	289,398			297,018
Gross profit	344,527			333,624
Selling, general and administrative expenses	203,148			147,796
Research and development expenses	29,947			27,396
Restructuring and impairment charges	7,998			1,346
Income from continuing operations before interest and taxes	103,434			157,086
Interest expense	16,798			15,439
Interest income	(659		)	(579		)
Income from continuing operations before taxes	87,295			142,226
Taxes on income from continuing operations	12,428			11,074
Income from continuing operations	74,867			131,152
Operating loss from discontinued operations	(1		)	(4		)
Tax benefit on operating loss from discontinued operations	—			(2		)
Loss from discontinued operations	(1		)	(2		)
Net income	$	74,866		$	131,150
Earnings per share:
Basic:
Income from continuing operations	$	1.60		$	2.83
Loss from discontinued operations	—			—
Net income	$	1.60		$	2.83
Diluted:
Income from continuing operations	$	1.58		$	2.78
Loss from discontinued operations	—			—
Net income	$	1.58		$	2.78
Weighted average common shares outstanding
Basic	46,698			46,382
Diluted	47,407			47,231


TELEFLEX INCORPORATED CONSOLIDATED BALANCE SHEETS

	March 28, 2021		December 31, 2020

	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	324,631	$	375,880
Accounts receivable, net	401,112		395,071
Inventories	512,284		513,196
Prepaid expenses and other current assets	121,877		115,436
Prepaid taxes	18,879		22,842
Total current assets	1,378,783		1,422,425
Property, plant and equipment, net	467,648		473,912
Operating lease assets	94,554		100,635
Goodwill	2,565,874		2,585,966
Intangible assets, net	2,470,244		2,519,746
Deferred tax assets	8,045		8,073
Other assets	42,875		41,802
Total assets	$	7,028,023	$	7,152,559
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	83,750	$	100,500
Accounts payable	101,340		102,520
Accrued expenses	134,311		136,276
Payroll and benefit-related liabilities	100,380		122,366
Accrued interest	23,401		7,135
Income taxes payable	14,831		17,361
Other current liabilities	50,040		53,869
Total current liabilities	508,053		540,027
Long-term borrowings	2,295,436		2,377,888
Deferred tax liabilities	482,484		484,678
Pension and postretirement benefit liabilities	57,118		74,499
Noncurrent liability for uncertain tax positions	9,987		10,127
Noncurrent operating lease liabilities	79,403		86,097
Other liabilities	219,751		242,786
Total liabilities	3,652,232		3,816,102
Commitments and contingencies
Total shareholders’ equity	3,375,791		3,336,457
Total liabilities and shareholders’ equity	$	7,028,023	$	7,152,559


TELEFLEX INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended
	March 28, 2021			March 29, 2020

	(Dollars in thousands)
Cash flows from operating activities of continuing operations:
Net income	$	74,866		$	131,150
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	1			2
Depreciation expense	17,513			16,842
Intangible asset amortization expense	41,922			38,911
Deferred financing costs and debt discount amortization expense	1,210			945
Fair value step up of acquired inventory sold	3,993			1,707
Changes in contingent consideration	6,354			(46,502		)
Stock-based compensation	5,344			3,522
Deferred income taxes, net	425			679
Payments for contingent consideration	—			(79,771		)
Interest benefit on swaps designated as net investment hedges	(4,647		)	(4,874		)
Other	(14,384		)	(18,143		)
Changes in assets and liabilities, net of effects of acquisitions and disposals:
Accounts receivable	(12,298		)	(23,145		)
Inventories	(10,074		)	(12,346		)
Prepaid expenses and other assets	3,342			6,403
Accounts payable, accrued expenses and other liabilities	(4,438		)	(31,488		)
Income taxes receivable and payable, net	1,665			4,651
Net cash provided by (used in) operating activities from continuing operations	110,794			(11,457		)
Cash flows from investing activities of continuing operations:
Expenditures for property, plant and equipment	(19,276		)	(19,684		)
Proceeds from sale of assets	161			400
Payments for businesses and intangibles acquired, net of cash acquired	(1,762		)	(265,160		)
Net cash used in investing activities from continuing operations	(20,877		)	(284,444		)
Cash flows from financing activities of continuing operations:
Proceeds from new borrowings	—			485,000
Reduction in borrowings	(100,000		)	—
Debt extinguishment, issuance and amendment fees	(22		)	—
Net proceeds from share based compensation plans and the related tax impacts	(2,510		)	(3,022		)
Payments for contingent consideration	(13,071		)	(60,881		)
Dividends paid	(15,893		)	(15,767		)
Net cash (used in) provided by financing activities from continuing operations	(131,496		)	405,330
Cash flows from discontinued operations:
Net cash used in operating activities	(243		)	(193		)
Net cash used in discontinued operations	(243		)	(193		)
Effect of exchange rate changes on cash and cash equivalents	(9,427		)	(3,842		)
Net (decrease) increase in cash and cash equivalents	(51,249		)	105,394
Cash and cash equivalents at the beginning of the period	375,880			301,083
Cash and cash equivalents at the end of the period	$	324,631		$	406,477

Contact:

Jake Elguicze
Treasurer and Vice President of Investor Relations
610-948-2836

April 29, 2021 6:33 am

1-800-FLOWERS.COM, Inc. Reports Record Revenue and Earnings Results for its Fiscal 2021 Third Quarter

1-800-FLOWERS.COM, Inc. Reports Record Revenue and Earnings Results for its Fiscal 2021 Third Quarter

Total net revenues increased 70.1 percent to $474.2 million, compared with total revenues of $278.8 million in the prior year period, driven by ecommerce growth of 83.2 percent.

Net Income for the quarter increased $11.1 million to $1.4 million, or $0.02 per share, compared with a net loss of $9.7 million, or a loss of $0.15 per diluted share in the prior year period. On an adjusted basis, net income for the quarter was $1.5 million, or $0.02 per share, compared with an adjusted net loss of $9.0 million, or a loss of $0.14 per share, in the prior year period.

Adjusted EBITDA¹ for the quarter increased $17.8 million to $15.4 million, compared with a loss of $2.4 million in the prior year period.

Company guides to 10-to-15 percent revenue growth for its fiscal fourth quarter and approximately 40 percent for its full 2021 fiscal year. Company also states that it anticipates double-digit revenue growth will continue in its next fiscal year.

(¹ Refer to “Definitions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of Non-GAAP results to applicable GAAP results.)

CARLE PLACE, N.Y.–(BUSINESS WIRE)–
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading e-commerce provider of products and services designed to inspire more human expression, connection, and celebration, today reported results for its Fiscal 2021 third quarter ended March 28, 2021.

Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said “The record top and bottom-line results for our fiscal third quarter reflect the strength of the ecommerce platform that we have built to drive solid, sustainable growth. The strong results for the quarter represent a continuation of the momentum that we have been building over the past several years. In addition, the acceleration provided by COVID has resulted in profound shifts in consumer behavior that our massive database, strong brand portfolio, and leading-edge technology will turn into a new era of growth.

“Our highly scalable and leverageable business platform includes our all-star family of trusted brands, our advanced technology stack, our experience and expertise in digital marketing, our large and rapidly growing customer file, and our extensive manufacturing, distribution and logistics capabilities. We have continued to make significant investments in these areas to help drive strong organic growth while concurrently augmenting our capabilities and product selection with highly accretive acquisitions such as Personalization Mall.”

McCann said that in addition to the strong top and bottom-line performance during the quarter, the Company also continued to grow its customer file at a record pace. “We have continued to leverage our digital marketing programs to take advantage of the structural shift that consumers have made to ecommerce. As a result, we have added millions of new customers while driving increased purchase frequency from existing customers this year. In addition, we continue to see strong, double-digit growth in customers joining our Celebrations Passport^® loyalty program, which now has more than 1 million members. Passport is a key driver of increased purchase frequency, customer retention, and customer lifetime value. The continuation of these positive trends further enhances our ability to deliver sustainable growth both near and longer term.”

Regarding the Company’s current fiscal fourth quarter, McCann said that the Company continued to see solid ecommerce demand in its 1-800-Flowers.com floral business through the first four weeks of the quarter. “We enter the fiscal fourth quarter with continued strong momentum and we expect double digit topline growth for the quarter despite the steep change in ecommerce growth which began in the prior year fourth quarter that we are now comparing against. That will put us on track to achieve over $2 billion of revenue in our current fiscal year.”

McCann concluded, “Based on our expectations for the fourth quarter, combined with what we see going forward, we anticipate driving double-digit growth in our next fiscal year.”

Third Quarter 2021 Financial Results

Total consolidated revenues increased 70.1 percent, or $195.4 million, to $474.2 million, compared with total consolidated revenues of $278.8 million in the prior year period, driven by ecommerce growth of 83.2 percent. Revenue growth in the quarter included contributions from PersonalizationMall.com which the Company acquired in August 2020. Excluding the contribution from PersonalizationMall.com total net revenues increased 55.7 percent, compared with the prior year period.

Gross profit margin for the quarter increased 40 basis points to 38.9 percent, compared with 38.5 percent in the prior year period. Operating expenses as a percent of total revenues improved 340 basis points to 39.0 percent, compared with 42.4 percent in the prior year period. Excluding the impacts of the Company’s non-qualified deferred 401k compensation plan and one-time transaction costs, operating expenses, as a percentage of total revenues improved 430 basis points to 38.8 percent in the quarter.

The combination of these factors resulted in an increase of $17.8 million, in Adjusted EBITDA to $15.4 million, compared with Adjusted EBITDA loss of $2.4 million in the prior year period. Net income for the quarter increased $11.1 million, to $1.4 million, or $0.02 per diluted share, compared with a net loss of $9.7 million, or $0.15 per share, in the prior year period. On an adjusted basis, net income for the quarter was $1.5 million, or $0.02 per share, compared with an adjusted net loss of $9.0 million, or a loss of $0.14 per share, in the prior year period.

Segment Results:

The Company provides selected financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet^® segments in the tables attached to this release and as follows:

Gourmet Foods and Gift Baskets: Revenues for the quarter increased 82.7 percent, or $79.3 million, to $175.2 million, compared with $95.9 million in the prior year period, reflecting strong ecommerce growth. Gross profit margin increased 500 basis points to 39.4 percent, compared with 34.4 percent in the prior year period reflecting reduced promotional marketing partially offset by increased labor and shipping costs. Segment contribution margin improved 293.4 percent, or $18.4 million, to $12.1 million, compared with a loss of $6.3 million in the prior year period.

Consumer Floral and Gifts: Revenues in this segment increased 70.6 percent, or $107.8 million, to $260.4 million, compared with $152.6 million in the prior year period. Excluding the contribution from PMall, revenues in this segment increased 44.3 percent compared with the prior year period. Gross profit margin decreased 150 basis points to 37.8 percent, compared with 39.3 percent in the prior year period, primarily reflecting higher shipping costs and weather-related costs incurred during the Valentine holiday period. Segment contribution margin increased 46.0 percent, or $7.1 million, to $22.5 million, compared with $15.4 million in the prior year period. Excluding the contribution from PMall, segment contribution margin increased 15.3 percent, or $2.4 million, compared with the prior year period.

BloomNet: Revenues for the quarter increased 27.7 percent to $38.8 million, or $8.4 million, compared with $30.4 million in the prior year period. Gross profit margin was 44.3 percent, a decrease of 300 basis points compared with 47.3 percent in the prior year period, primarily reflecting product mix. Segment contribution margin increased 20.1 percent to $12.0 million, or $2.0 million, compared with $10.0 million in the prior year period.

Company Guidance

The Company’s guidance for its fiscal fourth quarter ending June 27, 2021 is based on several factors including:
- continued solid ecommerce demand in the 1-800-Flowers.com floral business that has carried into April combined with anticipated contributions from PMall, partially offset by the shift of some Easter revenues into the Company’s third quarter, and;
- the challenging comparison with the prior year period which included record top and bottom-line growth resulting from the surge in ecommerce demand and significantly lower year-over-year digital marketing pricing associated with the initial impact of the COVID-19 pandemic.
As a result, the Company expects to achieve total consolidated revenue growth for its fiscal fourth quarter in a range of 10-to-15 percent, compared with the prior year period.
Based on this revenue growth, somewhat offset by higher digital marketing costs, the Company anticipates achieving Adjusted EBITDA for its fiscal fourth quarter in a range of $25.0 million -to- $30 million, compared with $32.5 million in the prior year period, and EPS in a range of $0.18-to-$0.20, compared with EPS of $0.23 in the prior year period.
Combined with the results of its first three fiscal quarters, the Company anticipates achieving the following results for its full 2021 fiscal year:
- Revenue growth of approximately 40 percent to total revenue for the year of more than $2.0 billion compared with $1.49 billion in the prior year.
- Adjusted EBITDA in a range of $208.0 million -to- $213.0 million compared with $129.5 million in the prior year,
- EPS in a range of $1.75 -to- $1.80 compared with EPS of $0.98 in the prior year, and
- Free Cash Flow of more than $100 million.

Definitions of non-GAAP Financial Measures:

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as “non-GAAP” or designated as such with a “1”. See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.

EBITDA and Adjusted EBITDA

We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Plan Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA and Adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company’s working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company’s performance.

Segment Contribution Margin and Adjusted Segment Contribution Margin

We define Segment Contribution Margin as earnings before interest, taxes, depreciation and amortization, before the allocation of corporate overhead expenses. Adjusted Contribution Margin is defined as Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of the Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as Operating Income and Net Income.

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:

We define Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable EPS are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.

About 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help customers express, connect, and celebrate. The Company’s ecommerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Stock Yards® and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; and DesignPac Gifts, LLC, a manufacturer of gift baskets and towers. 1-800-FLOWERS.COM, Inc. was named to the Forbes 2021 Best Small Companies List. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.

Special Note Regarding Forward Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” “target” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the Company’s ability to achieve its expected results for the fiscal-year 2021 fourth quarter and full year as well as its guidance for revenue growth in its fiscal 2022 full year; the impact of the COVID-19 pandemic on the Company; its ability to successfully integrate acquired businesses and assets; its ability to cost-effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. Reconciliations for forward looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including for example those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The lack of such reconciling information should be considered when assessing the impact of such disclosures. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

Conference Call:

The Company will conduct a conference call to discuss the above details and attached financial results today, Thursday, April 29, 2021, at 8:00 a.m. (EDT). The call will be webcast live (Webcast URL: https://services.choruscall.com/links/flws210429GQPS0B7R.html) which can be accessed from the Investor Relations section of the 1-800-FLOWERS.COM, Inc. website at 1800flowersinc.com. A recording of the call will be posted on the Investor Relations section of the Company’s website within two hours of the call’s completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (EDT) on the day of the call through May 6, 2021, at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #:10155340. To access the replay using an international dial-in number, please use the link: https://services.choruscall.com/ccforms/replay.html.

Note: The attached tables are an integral part of this press release without which the information presented in this press release should be considered incomplete.

1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)

	March 28, 2021		June 28, 2020
		(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	256,783	$	240,506
Trade receivables, net		39,121		15,178
Inventories		122,385		97,760
Prepaid and other		30,243		25,186
Total current assets		448,532		378,630

Property, plant and equipment, net		197,490		169,075
Operating lease right-of-use assets		86,616		66,760
Goodwill		208,048		74,711
Other intangibles, net		139,962		66,273
Other assets		26,672		18,986
Total assets	$	1,107,320	$	774,435

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	60,217	$	25,306
Accrued expenses		215,177		141,741
Current maturities of long-term debt		17,500		5,000
Current portion of long-term operating lease liabilities		11,021		8,285
Total current liabilities		303,915		180,332

Long-term debt		166,213		87,559
Long-term operating lease liabilities		79,803		61,964
Deferred tax liabilities		26,501		28,632
Other liabilities		30,773		16,174
Total liabilities		607,205		374,661
Total stockholders’ equity		500,115		399,774
Total liabilities and stockholders’ equity	$	1,107,320	$	$774,435

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited)

	Three Months Ended						Nine Months Ended
	March 28, 2021			March 29, 2020			March 28, 2021			March 29, 2020
Net revenues:
E-Commerce	$	424,768		$	231,851		$	1,441,441		$	847,985
Other		49,466			46,925			193,821			223,696
Total net revenues		474,234			278,776			1,635,262			1,071,681
Cost of revenues		289,535			171,324			936,837			618,911
Gross profit		184,699			107,452			698,425			452,770
Operating expenses:
Marketing and sales		127,923			78,606			402,904			262,849
Technology and development		14,281			11,900			39,937			34,436
General and administrative		30,912			20,031			89,960			64,187
Depreciation and amortization		11,892			7,803			31,792			23,268
Total operating expenses		185,008			118,340			564,593			384,740
Operating income (loss)		(309	)		(10,888	)		133,832			68,030
Interest expense, net		1,553			147			4,520			1,727
Other (income) expense, net		(945	)		2,605			(4,201	)		1,714
Income (loss) before income taxes		(917	)		(13,640	)		133,513			64,589
Income tax expense (benefit)		(2,344	)		(3,983	)		28,171			15,365
Net income (loss)	$	1,427		$	(9,657	)	$	105,342		$	49,224

Basic net income (loss) per common share	$	0.02		$	(0.15	)	$	1.63		$	0.76

Diluted net income (loss) per common share	$	0.02		$	(0.15	)	$	1.58		$	0.74

Weighted average shares used in the calculation of net income (loss) per common share:
Basic		64,885			64,348			64,644			64,517
Diluted		66,474			64,348			66,564			66,378

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (in thousands) (unaudited)

	Nine months ended
	March 28, 2021			March 29, 2020

Operating activities:
Net income	$	105,342		$	49,224
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		31,792			23,268
Amortization of deferred financing costs		844			486
Deferred income taxes		(2,131	)		(1,597	)
Bad debt expense		959			1,201
Stock-based compensation		8,229			6,441
Other non-cash items		(79	)		(23	)
Changes in operating items:
Trade receivables		(23,520	)		(15,044	)
Inventories		(7,627	)		19,353
Prepaid and other		(1,301	)		3,148
Accounts payable and accrued expenses		96,947			31,442
Other assets and liabilities		8,756			(557	)
Net cash provided by operating activities		218,211			117,342

Investing activities:
Acquisitions, net of cash acquired		(250,943	)		(20,500	)
Capital expenditures, net of non-cash expenditures		(26,821	)		(22,282	)
Purchase of equity investments		(1,251	)		(1,176	)
Net cash used in investing activities		(279,015	)		(43,958	)

Financing activities:
Acquisition of treasury stock		(14,825	)		(10,667	)
Proceeds from exercise of employee stock options		1,596			285
Proceeds from bank borrowings		265,000			20,000
Repayment of notes payable and bank borrowings		(172,497	)		(23,750	)
Debt issuance cost		(2,193	)		(60	)
Net cash provided by (used in) financing activities		77,081			(14,192	)

Net change in cash and cash equivalents		16,277			59,192
Cash and cash equivalents:
Beginning of period		240,506			172,923
End of period	$	256,783		$	232,115

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)

	Three Months Ended
	March 28, 2021			March 29, 2020			Personalization Mall Litigation & Transaction Costs		As Adjusted (non-GAAP) March 29, 2020			% Change
Net revenues:
Consumer Floral & Gifts	$	260,393		$	152,620		$	–	$	152,620		70.6	%
BloomNet		38,833			30,414					30,414		27.7	%
Gourmet Foods & Gift Baskets		175,245			95,906					95,906		82.7	%
Corporate		54			112					112		-51.8	%
Intercompany eliminations		(291	)		(276	)				(276	)	-5.4	%
Total net revenues	$	474,234		$	278,776		$	–	$	278,776		70.1	%

Gross profit:
Consumer Floral & Gifts	$	98,397		$	59,943				$	59,943		64.2	%
		37.8	%		39.3	%				39.3	%

BloomNet		17,194			14,401					14,401		19.4	%
		44.3	%		47.3	%				47.3	%

Gourmet Foods & Gift Baskets		69,091			32,956					32,956		109.6	%
		39.4	%		34.4	%				34.4	%

Corporate		17			152					152		-88.8	%
		31.5	%		135.7	%				135.7	%

Total gross profit	$	184,699		$	107,452		$	–	$	107,452		71.9	%
		38.9	%		38.5	%		–		38.5	%

EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts	$	22,537		$	15,439		$	–	$	15,439		46.0	%
BloomNet		12,042			10,025					10,025		20.1	%
Gourmet Foods & Gift Baskets		12,132			(6,275	)				(6,275	)	293.3	%
Segment Contribution Margin Subtotal		46,711			19,189			–		19,189		143.4	%
Corporate (b)		(35,128	)		(22,274	)		911		(21,363	)	-64.4	%
EBITDA (non-GAAP)		11,583			(3,085	)		911		(2,174	)	632.8	%
Add: Stock-based compensation		2,871			2,396					2,396		19.8	%
Add: Compensation charge related to NQ Plan Investment Appreciation/(Depreciation)		916			(2,611	)				(2,611	)	135.1	%
Adjusted EBITDA (non-GAAP)	$	15,370		$	(3,300	)	$	911	$	(2,389	)	743.4	%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)

	Nine Months Ended
	March 28, 2021			Personalization Mall Litigation & Transaction Costs		Harry & David Store Closure Costs			As Adjusted (non-GAAP) March 28, 2021			March 29, 2020			Personalization Mall Litigation & Transaction Costs		As Adjusted (non-GAAP) March 29, 2020			% Change
Net revenues:
Consumer Floral & Gifts	$	727,296		$	–	$	–		$	727,296		$	359,104		$	–	$	359,104		102.5	%
BloomNet		105,622								105,622			81,576					81,576		29.5	%
Gourmet Foods & Gift Baskets		803,439								803,439			631,705					631,705		27.2	%
Corporate		295								295			472					472		-37.5	%
Intercompany eliminations		(1,390	)							(1,390	)		(1,176	)				(1,176	)	-18.2	%
Total net revenues	$	1,635,262		$	–	$	–		$	1,635,262		$	1,071,681		$	–	$	1,071,681		52.6	%

Gross profit:
Consumer Floral & Gifts	$	298,457		$	–	$	–		$	298,457		$	140,537		$	–	$	140,537		112.4	%
		41.0	%							41.0	%		39.1	%				39.1	%

BloomNet		48,852								48,852			40,520					40,520		20.6	%
		46.3	%							46.3	%		49.7	%				49.7	%

Gourmet Foods & Gift Baskets		350,988								350,988			271,360					271,360		29.3	%
		43.7	%							43.7	%		43.0	%				43.0	%

Corporate		128								128			353					353		-63.7	%
		43.4	%							43.4	%		74.8	%				74.8	%
Total gross profit	$	698,425		$	–	$	–		$	698,425		$	452,770		$	–	$	452,770		54.3	%
		42.7	%		–		–			42.7	%		42.2	%		–		42.2	%

EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts	$	87,430		$	–	$	–		$	87,430		$	34,853		$	–	$	34,853		150.9	%
BloomNet		34,604								34,604			27,516					27,516		25.8	%
Gourmet Foods & Gift Baskets		145,172					(483	)		144,689			100,512					100,512		44.0	%
Segment Contribution Margin Subtotal		267,206			–		(483	)		266,723			162,881			–		162,881		63.8	%
Corporate (b)		(101,582	)		5,403					(96,179	)		(71,583	)		911		(70,672	)	-36.1	%
EBITDA (non-GAAP)		165,624			5,403		(483	)		170,544			91,298			911		92,209		85.0	%
Add: Stock-based compensation		8,229								8,229			6,441					6,441		27.8	%
Add: Compensation charge related to NQ Plan Investment Appreciation/(Depreciation)		4,123								4,123			(1,653	)				(1,653	)	349.4	%
Adjusted EBITDA (non-GAAP)	$	177,976		$	5,403	$	(483	)	$	182,896		$	96,086		$	911	$	96,997		88.6	%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)

Reconciliation of net income (loss) to adjusted net income (loss) (non-GAAP):	Three Months Ended					Nine Months Ended
	March 28, 2021		March 29, 2020			March 28, 2021			March 29, 2020

Net income (loss)	$	1,427	$	(9,657	)	$	105,342		$	49,224
Adjustments to reconcile net income (loss) to adjusted net income (loss) (non-GAAP)
Add: PersonalizationMall litigation and transaction costs		–		911			5,403			911
Deduct: Harry & David store closure cost adjustment		–		–			(483	)		–
Deduct: Income tax benefit on adjustments		79		(217	)		(1,038	)		(217	)
Adjusted net income (loss) (non-GAAP)	$	1,506	$	(8,963	)	$	109,224		$	49,918

Basic and diluted net income (loss) per common share
Basic	$	0.02	$	(0.15	)	$	1.63		$	0.76
Diluted	$	0.02	$	(0.15	)	$	1.58		$	0.74


Basic and diluted adjusted net income (loss) per common share (non-GAAP)
Basic	$	0.02	$	(0.14	)	$	1.69		$	0.77
Diluted	$	0.02	$	(0.14	)	$	1.64		$	0.75

Weighted average shares used in the calculation of net income (loss) and adjusted net income (loss) per common share
Basic		64,885		64,348			64,644			64,517
Diluted		66,474		64,348			66,564			66,378

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)

Reconciliation of net income (loss) to adjusted EBITDA (non-GAAP):	Three Months Ended					Nine Months Ended
	March 28, 2021		March 29, 2020			March 28, 2021			March 29, 2020

Net income (loss)	$	1,427	$	(9,657	)	$	105,342		$	49,224
Add: Interest expense, net		608		2,752			319			3,441
Add: Depreciation and amortization		11,892		7,803			31,792			23,268
Add: Income tax expense		–		–			28,171			15,365
Deduct: Income tax benefit		2,344		3,983			–			–
EBITDA		11,583		(3,085	)		165,624			91,298
Add: Stock-based compensation		2,871		2,396			8,229			6,441
Add: Compensation charge related to NQ plan investment appreciation/(depreciation)		916		(2,611	)		4,123			(1,653	)
Add: Personalization Mall litigation and transaction costs		–		911			5,403			911
Deduct: Harry & David store closure cost adjustment		–		–			(483	)		–
Adjusted EBITDA	$	15,370	$	(2,389	)	$	182,896		$	96,997

(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance.

(b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. To leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

FLWS-CP

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005207/en/

Investors:

Joseph D. Pititto

(516) 237-6131

E-mail: [email protected]

Media:

Kathleen Waugh

(516) 237-6028

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Men Retail Family Consumer Online Retail Luxury Catalog Other Retail Teens Wine & Spirits Specialty Women Seniors Food/Beverage

MEDIA:

Logo

April 29, 2021 6:33 am

TILT Holdings’ Subsidiary Commonwealth Alternative Care Approved for Adult-Use License in Brockton, Massachusetts

PHOENIX, April 29, 2021 (GLOBE NEWSWIRE) — TILT Holdings Inc. (“TILT or the “Company”) (CSE: TILT) (OTCQX: TLLTF), a provider of business solutions to the global cannabis industry that includes inhalation technologies, cultivation, manufacturing, processing, brand development and retail, issued the following statement from TILT’s President Gary Santo regarding the Company’s subsidiary, Commonwealth Alternative Care’s (“CAC”) recent approval by the City Council of Brockton, Massachusetts for adult-use cannabis sales in Brockton.

Statement by TILT’s President Gary Santo

We thank the Brockton City Council for being a fair partner throughout this application process. Local regulation of cannabis operations is still new and evolving for all participants, and we believe that the
council has attempted to balance the concerns of all stakeholders in its deliberations.

The approval of adult-use sales by the Brockton City Council will enable our CAC location to create more livable wage jobs, a steady stream of tax revenue for the people of Brockton and Massachusetts and broaden access for patients and consumers, who embrace cannabis as a life-changing way to manage their health and wellness.

We remain fully committed to serving the people of Brockton and being a trusted partner, resource and advocate by providing access to our networks, tools and resources that help legitimize and scale social equity businesses for years to come.

While the approval by the Brockton City Council completes all of CAC’s required local licenses, our state-level approvals remain pending before the Cannabis Control Commission, and we will continue to work diligently and in good faith to meet all of the CCC’s state requirements.
As we continue to scale our operations in the Bay State, we also look forward to bringing more differentiated products to our retail network and driving growth for our Company and shareholders.

About TILT

TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 35 states in the U.S., as well as Canada, Israel, Mexico, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania and Standard Farms Ohio, LLC in Ohio. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.

Forward-Looking Information

This news release contains forward-looking information based on current expectations. Forward-looking information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward looking information may include, without limitation, anticipated timelines associated with expected state licensure for the Brockton, Taunton and Cambridge locations, CAC’s ability to successfully manufacture and distribute cannabis products in Massachusetts, the success of TILT’s brand strategy, the receipt of any regulatory approvals, the anticipated growth of cannabis markets, the opinions or beliefs of management, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of TILT, and includes statements about, among other things, future developments, the future operations, strengths and strategy of TILT. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. These statements should not be read as guarantees of future performance or results. These statements are based upon certain material factors, assumptions and analyses that were applied in drawing a conclusion or making a forecast or projection, including TILT’s experience and perceptions of historical trends, the ability of TILT to maximize shareholder value, current conditions and expected future developments, as well as other factors that are believed to be reasonable in the circumstances.

Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that it will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. TILT assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.

By its nature, forward-looking information is subject to risks and uncertainties, and there are a variety of material factors, many of which are beyond the control of TILT, and that may cause actual outcomes to differ materially from those discussed in the forward-looking statements.

For additional information regarding forward-looking statements and their related risks, please refer to the “Risk Factors and Uncertainties” section in the Management Discussion and Analysis of the Company for the quarters and year ended December 21, 2020 and 2019, which is available on the Company’s SEDAR profile at www.sedar.com.

The CSE has neither approved nor disapproved the contents of this

Investor Relations Contact:
Taylor Allison
[email protected]

Media Contact:
Ellen Mellody
[email protected]
570-209-2947

April 29, 2021 6:33 am

Brunswick Corporation Releases First Quarter 2021 Earnings

METTAWA, Ill., April 29, 2021 (GLOBE NEWSWIRE) —

Brunswick Corporation (NYSE: BC) today has released its first quarter 2021 financial results. A complete and full-text financial results press release is available on the Company’s website at www.brunswick.com/investors. The results will also be available on the SEC’s website with the Form 8-K filing of the release at https://goo.gl/wJQN1.

The Company will hold a conference call today at 10 a.m. CDT hosted by David M. Foulkes, Chief Executive Officer, Ryan M. Gwillim – Senior Vice President and Chief Financial Officer, and Brent G. Dahl – Vice President of Investor Relations.

The call will be broadcast over the Internet at www.brunswick.com/investors. To listen to the call, go to the website at least 15 minutes before the call to register, download and install any needed audio software.

See Brunswick’s website for slides used to supplement conference call remarks at www.brunswick.com/investors.

Security analysts and investors wishing to participate via telephone should call 877-900-9524 (No Password Needed). Callers outside of North America should call 412-902-0029 (No Password Needed) to be connected. These numbers can be accessed 15 minutes before the call begins, as well as during the call.

A replay of the conference call will be available through 1pm CDT Thursday May 6, 2021, by calling 877-660-6853 or 201-612-7415 (Access ID: 13718789). The replay also will be available at www.brunswick.com/investors.

About Brunswick

Headquartered in Mettawa, Ill., Brunswick Corporation’s leading consumer brands include Mercury Marine outboard engines; Mercury MerCruiser sterndrive and inboard packages; Mercury global parts and accessories including propellers and SmartCraft electronics; Advanced Systems Group, which includes industry-leading brands like MotorGuide, Attwood, Mastervolt, Blue Sea Systems, CZone, and ASG Connect system integrators; Land ’N’ Sea, BLA, Payne’s Marine, Kellogg Marine, and Lankhorst Taselaar marine parts distribution; Mercury and Quicksilver parts and oils; Bayliner, Boston Whaler, Crestliner, Cypress Cay, Harris, Heyday, Lowe, Lund, Princecraft, Quicksilver, Rayglass, Sea Ray, Thunder Jet and Uttern boats; Boating Services Network, Freedom Boat Club and Boat Class. For more information, visit brunswick.com.

Lee Gordon
Vice President – Brunswick Global Communications & Public Relations
Brunswick Office: 847-735-4003
Mercury Office: 920-924-1808
Cell: 904-860-8848
[email protected]

April 29, 2021 6:33 am

Wallbridge Intersects 17.79 g/t Au over 16.40 metres in Newly Discovered Eastern Extension of the Gabbro Zones

TORONTO, April 29, 2021 (GLOBE NEWSWIRE) — Wallbridge Mining Company Limited (TSX:WM) (“Wallbridge” or the “Company”) is pleased to announce results from its exploration drill program at the Fenelon Gold Property (“Fenelon” or the “Property”), with an intersection of 17.79 g/t Au over 16.40 metres, including 76.98 g/t Au over 3.30 metres in a newly discovered Eastern extension of the Gabbro Zones. This high-grade zone is located approximately 140 metres along strike to the east of, and 175 metres vertically below, the known part of the Gabbro Zones where Wallbridge completed a 33,500-tonne underground bulk sample in 2019 with an average grade of 18.49 grams per tonne gold. The mineralization is open for expansion with very few historic drill holes in the area.

“We are very excited about this new high-grade discovery hosted within the Main Gabbro, 140 metres away from the known Gabbro Zones,” stated Attila Péntek, Vice President Exploration of Wallbridge. “This eastern extension of the Main Gabbro, one of the important host rocks at Fenelon, has seen very limited drilling in the past only with shallow 100-200-metre holes. This intersection is still close to surface, at a vertical depth of 300 metres, and is open in all directions.”

Fenelon Gold System, Exploration Drill Results

Assay results of five exploration drill holes are being reported today. These holes tested the geology and extensions of known host rocks and mineralized trends several hundred metres away from the central part of the known Fenelon Gold System where definition drilling is underway in preparation for the maiden 2021 mineral resource estimate.

Highlight intersections from the holes reported today include:

FA-20-219	17.79 g/t Au over 16.40 metres, including
	76.98 g/t Au over 3.30 metres and
	6.65 g/t Au over 5.30 metres (see Figs. 1 and 2);

The new high-grade zone discovered in hole FA-20-219 consists of sulfide-rich silicified shear zones, similar to those typical of the Gabbro Zones, however instead of chalcopyrite and pyrrhotite being the dominant minerals, there is abundant pyrite, arsenopyrite and sphalerite. The orientation of the zones appears to be similar to that of the Tabasco-Cayenne and Gabbro Zones, striking WNW-ESE. Follow-up holes are planned to determine the significance and extent of this new gold mineralized zone.

2020-2021 Drilling Program Update

In 2021, the Company is planning to complete approximately 170,000 metres of drilling with a maiden mineral resource estimate at Fenelon is anticipated in the third quarter of 2021 (see Wallbridge Press Release dated January 11, 2021). Approximately 10-15% of the drilling program will be devoted to regional exploration on the Company’s district-scale, underexplored land package on the Detour-Fenelon Gold Trend.

Currently, the Company has eight drill rigs operating at Fenelon. In the coming months, six drill rigs will be targeting the Fenelon Gold System (Tabasco-Cayenne-Area 51 mineralization) to approximately 1,000 metres vertical depth, carrying out a combination of definition and expansion drilling at a nominal 75-metre drill spacing. Two drill rigs have been focusing on near-surface, open pit resource drilling in the western portion of Area 51. Additional drills may be devoted to Fenelon resource expansion, and regional grassroots exploration at various projects on the Company’s 900 km² Detour-Fenelon Gold Trend land package later in the year.

Assay results of five drill holes of the 2020/2021 exploration drill program are reported in the Table and Figures below. All figures and a table with drill hole information of recently completed holes are posted on the Company’s website under “Current Program” at https://www.wallbridgemining.com/s/fenelon.asp.

Figure 1.
Fenelon Gold, Tabasco-Cayenne-Gabbro Zones Long Section

https://www.globenewswire.com/NewsRoom/AttachmentNg/e75832d5-e212-455a-9b12-dd0d87442502

Figure 2.
Fenelon Gold, Plan View

https://www.globenewswire.com/NewsRoom/AttachmentNg/fccff5c9-6994-45b3-a675-b5251b2b476e

Table 1. Wallbridge Fenelon Gold Property, Recent Drill Assay Highlights ⁽¹⁾
Drill Hole	From	To	Length	Au	Au Cut⁽²⁾	VG⁽³⁾	Zone/Corridor	Section
	(m)	(m)	(m)	(g/t)	(g/t)
FA-20-212	100.50	102.00	1.50	4.59	4.59		New Zone	10800
FA-20-212	780.00	783.00	3.00	1.64	1.64		Cayenne	10800
FA-20-212	819.00	822.00	3.00	1.30	1.30		Tabasco	10800
FA-20-212	862.80	865.50	2.70	1.14	1.14	VG	Tabasco	10800
FA-20-212	927.90	928.40	0.50	13.75	13.75	VG	Area 51- Laika	10800
FA-20-212	1033.50	1038.00	4.50	1.59	1.59		Area 51- Laika	10800
FA-20-213	337.00	338.00	1.00	4.29	4.29		Area 51- Hubble	10500
FA-20-213	398.00	400.00	2.00	1.78	1.78		Area 51- Hubble	10500
FA-20-214	No Significant Mineralization⁽⁴⁾							9150
FA-20-216	No Significant Mineralization⁽⁴⁾							11100
FA-20-219	373.60	390.00	16.40	17.79	17.79		Gabbro Zones East Extension	10875
Including…	374.70	378.00	3.30	76.98	76.98		Gabbro Zones East Extension	10875
And…	384.70	390.00	5.30	6.65	6.65		Gabbro Zones East Extension	10875
FA-20-219	963.85	965.50	1.65	6.19	6.19	VG	Area 51- Titan	10875
Including…	963.85	964.40	0.55	14.49	14.49	VG	Area 51- Titan	10875

⁽¹⁾ Table includes only assay results received since the latest press release dated March 25, 2021.
⁽²⁾ Au cut at 140 g/t.
⁽³⁾ Intervals containing visible gold (“VG”).
⁽⁴⁾Metal factor of at least 3 g/t*m and minimum weighted average composite grade of 1 g/t Au

Note: True widths are estimated to be 50-80% of the reported core length intervals.

Assay QA/QC and Qualified Persons

Drill core samples from the ongoing 2021 drill program at Fenelon are cut and bagged either on site or by contractors and transported to SGS Canada Inc., AGAT Laboratories Ltd. or Bureau Veritas Commodities Canada Ltd. for analysis. In 2020 samples were submitted to either SGS Canada Inc. or ALS Canada Ltd. for analysis. Samples, along with standards and blanks that are included for quality assurance and quality control, were prepared and analyzed at the laboratories. Samples are crushed to 90% less than 2mm. A 1kg riffle split is pulverized to 85% passing 75 microns. 50g samples are analyzed by fire assay and AAS. At SGS, AGAT and Bureau Veritas samples >10g/t Au are automatically analyzed by fire assay with gravimetric finish or screen metallic analysis. To test for coarse free gold and for additional quality assurance and quality control, Wallbridge requests screen metallic analysis for samples containing visible gold. These and future assay results may vary from time to time due to re-analysis for quality assurance and quality control.

The Qualified Person responsible for the technical content of this press release is Christopher Kelly, P.Geo., Senior Geologist of Wallbridge.

About Wallbridge Mining

Wallbridge is currently advancing the exploration and development of its 100%-owned Fenelon Gold property which is located along the Detour-Fenelon Gold Trend, an emerging gold belt in northwestern Québec. The Company completed approximately 102,000 metres of drilling in 2020 and has begun a fully-funded 2021 program of approximately 170,000 metres of drilling and 4,800 metres of underground exploration development (Phase 1 of a 10,000-metre two-year program). The Company intends to complete a maiden mineral resource on the Fenelon Gold System in the third quarter of 2021.

Wallbridge now holds several kilometres surrounding its rapidly expanding Fenelon discovery providing room for growth, as well as future mine development flexibility. Wallbridge’s land holdings in Québec along the Detour-Fenelon Gold Trend are over 900.0 km², improving Wallbridge’s potential for further discoveries for over 90-kilometre strike length in this under-explored belt.

Wallbridge is also the operator of, and a 17.8% shareholder in, Lonmin Canada Inc., a privately-held company with a portfolio of nickel, copper, and platinum-group metals (PGM) projects in Ontario’s Sudbury Basin.

This news release has been authorized by the undersigned on behalf of Wallbridge Mining Company Limited.

For further information please visit the Company’s website at www.wallbridgemining.com or contact:

Wallbridge Mining Company Limited

Marz Kord, P. Eng., M. Sc., MBA
President & CEO
Tel: (705) 682-9297 ext. 251
Email: [email protected]

Victoria Vargas, B.Sc. (Hon.) Economics, MBA
Investor Relations Advisor
Email: [email protected]

This press release may contain certain “forward-looking statements” within the meaning of applicable Canadian securities legislation relating to, among other things, the operations of Wallbridge Mining Company Limited (“Wallbridge” or “Company”) and the environment within which it operates. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and objectives of Wallbridge, future opportunities and anticipated goals, the Company’s portfolio, treasury, management team, timetable to mineral resource estimation, permitting and the prospective mineralization of the properties, are forward-looking statements that involve various risks, assumptions, estimates and uncertainties. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “seeks”, “believes”, “anticipates”, “plans”, “continues”, “budget”, “scheduled”, “estimates”, “expects”, “forecasts”, “intends”, “projects”, “predicts”, “proposes”, “potential”, “targets” and variations of such words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would”, “should” or “might”, “be taken”, “occur” or “be achieved”. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other required approval, the actual results of current exploration activities, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration and development activities at the Company’s projects, capital expenditures, the availability of any additional capital required to advance projects, accidents, or pandemic interruptions.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. These statements reflect the current internal projections, expectations or beliefs of the Company and are based on information currently available to the Company.

The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors as actual results may vary.

Risks and uncertainties about Wallbridge’s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company’s profile at www.sedar.com. Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this press release.

Covid-19 –

Given the rapidly evolving nature of the Coronavirus (COVID-19) pandemic, Wallbridge is actively monitoring the situation in order to continue to maintain as best as possible the activities while striving to protect the health of its personnel. Wallbridge’ activities will continue to align with the guidance provided by local, provincial and federal authorities in Canada. The Company has established measures to continue normal activities while protecting the health of its employees and stakeholders. Depending on the evolution of the virus, measures may affect the regular operations of Wallbridge and the participation of staff members in events inside or outside Canada.

April 29, 2021 6:33 am

Triton International Reports First Quarter 2021 Results and Declares Quarterly Dividend

Triton International Reports First Quarter 2021 Results and Declares Quarterly Dividend

HAMILTON, Bermuda–(BUSINESS WIRE)–April 29, 2021 – Triton International Limited (NYSE: TRTN) (“Triton”)

Highlights:

Net income attributable to common shareholders for the three months ended March 31, 2021 was $129.3 million or $1.92 per diluted share.
Adjusted net income was $128.7 million or $1.91 per diluted share, an increase of 105.4% from the first quarter of 2020 and 12.4% from the fourth quarter of 2020.
Trade volumes and container demand were exceptionally strong in the first quarter. Utilization increased 0.4% during the quarter to reach 99.3% as of March 31, 2021. Utilization was 99.4% as of April 23, 2021.
As of April 23, 2021, Triton has purchased $2.6 billion of new containers for delivery in 2021, most of which have already been committed to high value, long duration leases.
Triton’s corporate credit rating was upgraded to BBB- by S&P Global Ratings on March 30, 2021.
Triton completed an inaugural $600 million 2.05% senior secured investment grade bond offering on April 15, 2021.
Triton’s Board of Directors announced a quarterly dividend of $0.57 per common share payable on June 24, 2021 to shareholders of record as of June 10, 2021.

Financial Results

The following table summarizes Triton’s selected key financial information for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020.

	(in millions, except per share data)
	Three Months Ended,
	March 31, 2021		December 31, 2020		March 31, 2020
Total leasing revenues	$346.7		$337.3		$321.5

GAAP
Net income attributable to common shareholders	$129.3		$115.2		$67.2
Net income per share – Diluted	$1.92		$1.70		$0.94

Non-GAAP⁽¹⁾
Adjusted net income	$128.7		$114.7		$67.1
Adjusted net income per share – Diluted	$1.91		$1.70		$0.93

Return on equity ⁽²⁾	25.0	%	22.9	%	13.1	%

(1)	Refer to the “Use of Non-GAAP Financial Items” and “Non-GAAP Reconciliations of Adjusted Net Income” set forth below.
(2)	Refer to the “Calculation of Return on Equity” set forth below.

Operating Performance

“Triton achieved outstanding results in the first quarter of 2021,” commented Brian M. Sondey, Chief Executive Officer of Triton. “We generated $1.91 of Adjusted earnings per share in the first quarter, an increase of more than 100% from the first quarter of 2020 and an increase of 12.4% from the fourth quarter of 2020. We also achieved an annualized Return on equity of 25.0%.”

“Triton continues to benefit from very favorable market conditions. Trade volumes remain strong due to a shift in consumer spending from services and experiences to goods, and demand for containers has been boosted further by a variety of logistical challenges that have slowed the global movement of containers. Our utilization increased to 99.3% as of March 31, 2021 and currently stands at 99.4%. The strong demand for containers has also led to high new container prices and market lease rates. Container factories are currently quoting over $3,500 for a new 20’ dry container, and market lease rates for new containers are significantly higher than the average lease rates in our lease portfolio. Our average selling price for used dry containers jumped further in the first quarter, leading to an increase in our disposal gains from the fourth quarter of 2020 despite a significant decrease in disposal volumes.”

“Triton is investing heavily in new containers to help our customers manage the strong increase in trade volumes. Our customers generally did not anticipate the rapid growth in trade that began in the second half of 2020, and all major shipping lines have needed to add significant numbers of containers. Shipping lines have been primarily relying on the leasing market to fulfill their container requirements, and Triton has secured a meaningful share of leasing transactions due to our industry-leading supply capability and our strong reputation for reliability. Triton has purchased approximately $2.6 billion of containers for delivery in 2021, with $0.7 billion accepted in the first quarter, and we have already pre-committed most of our purchased containers to high-value, long-duration leases. We estimate that our existing orders would translate to asset growth of close to 20% for Triton in 2021.”

“Triton is highly focused on locking-in durable improvements to our business, profitability and cash flow. The average lease duration for our 2021 new dry container lease commitments is over 12 years, and we estimate that approximately 75% of the used containers we have supplied since last July have been leased on life-cycle leases, which keep the containers on-hire until our typical disposal age. The large block of attractively priced new leases and improved off-hire protections for our used containers will provide a strong foundation to our profitability and cash flow for years to come.”

“Our balance sheet remains in great shape. Our leverage remains well below our typical historical range, and our profitability supports our high current growth rate with little impact on our leverage. In March 2021, our corporate credit rating was upgraded to BBB- by S&P, reflecting our strong market and financial position. In the first quarter, we issued $1.2 billion of ABS notes and in April 2021, we successfully completed an inaugural issuance of $600 million investment grade senior secured notes. These successful transactions, which further reduce our overall average borrowing costs, provide an attractive source of financing to support our customers and will contribute to the strong return on our 2021 container investment.”

Outlook

Mr. Sondey continued, “Looking ahead, we have significant operational and financial momentum, and we expect to achieve outstanding profitability throughout 2021. Trade volumes remain strong, our container fleet is close to maximum utilization, and we have approximately 500,000 TEU of new containers pre-booked for pick-up in the second and third quarters. We anticipate some normalization of consumer spending patterns as COVID vaccination rates grow, but economists are generally projecting a strong bounce to global GDP in the second half of 2021, and we typically experience peak dry container demand in the third quarter as retailers stock up for the holiday season. We expect our Adjusted net income per share to hold fairly steady from the first to the second quarter of 2021. We expect our leasing margin will increase substantially due to a high volume of new container pick-ups, though we expect this to be mostly offset by lower disposal gains due to a very low volume of container off-hires and disposals. Overall, we expect our profitability, Return on equity and cash flow to remain at very high levels.”

Dividends

Triton’s Board of Directors has approved and declared a $0.57 per share quarterly cash dividend on its issued and outstanding common shares, payable on June 24, 2021 to shareholders of record at the close of business on June 10, 2021.

The Company’s Board of Directors also approved and declared a cash dividend payable on June 15, 2021 to holders of record at the close of business on June 8, 2021 on its issued and outstanding preferred shares as follows:

Preferred Share Series	Dividend Rate	Dividend Per Share
Series A Preferred Shares (NYSE:TRTNPRA)	8.500%	$0.5312500
Series B Preferred Shares (NYSE:TRTNPRB)	8.000%	$0.5000000
Series C Preferred Shares (NYSE:TRTNPRC)	7.375%	$0.4609375
Series D Preferred Shares (NYSE:TRTNPRD)	6.875%	$0.4296875

Share Repurchase Program Update

Triton has repurchased over 13.9 million common shares since the inception of the program in August 2018. There were no share repurchases during the first quarter of 2021 and as of March 31, 2021, the Company had a total of $102.1 million remaining under the current authorization.

Investors’ Webcast

Triton will hold a Webcast at 8:30 a.m. (New York time) on Thursday, April 29, 2021 to discuss its first quarter results. To listen by phone, please dial 1-877-418-5277 (domestic) or 1-412-717-9592 (international) approximately 15 minutes prior to the start time and reference the Triton International Limited conference call. To access the live Webcast please visit Triton’s website at http://www.trtn.com. An archive of the Webcast will be available one hour after the live call.

About Triton International Limited

Triton International Limited is the world’s largest lessor of intermodal freight containers. With a container fleet of 6.5 million twenty-foot equivalent units (“TEU”), Triton’s global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.

Utilization, Fleet, and Leasing Revenue Information

The following table summarizes the equipment fleet utilization for the periods indicated:

	Quarter Ended
	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Average Utilization ⁽¹⁾	99.1	%	98.1	%	96.1	%	95.0	%	95.4	%
Ending Utilization ⁽¹⁾	99.3	%	98.9	%	97.4	%	94.8	%	95.3	%

(1)	Utilization is computed by dividing total units on lease (in CEU) by the total units in our fleet (in CEU), excluding new units not yet leased and off-hire units designated for sale.

The following table summarizes the equipment fleet as of March 31, 2021, December 31, 2020 and March 31, 2020 (in units, TEUs and CEUs):

	Equipment Fleet in Units			Equipment Fleet in TEU
	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	December 31, 2020	March 31, 2020
Dry	3,417,293	3,295,908	3,239,306	5,711,032	5,466,421	5,324,756
Refrigerated	232,550	227,519	225,026	450,087	439,956	434,263
Special	94,266	93,885	93,743	171,781	170,792	170,225
Tank	11,339	11,312	12,469	11,339	11,312	12,469
Chassis	24,078	24,781	24,319	43,858	45,188	44,828
Equipment leasing fleet	3,779,526	3,653,405	3,594,863	6,388,097	6,133,669	5,986,541
Equipment trading fleet	60,242	64,243	17,549	93,514	98,991	26,185
Total	3,839,768	3,717,648	3,612,412	6,481,611	6,232,660	6,012,726

	Equipment in CEU⁽¹⁾
	March 31, 2021	December 31, 2020	March 31, 2020
Operating leases	6,892,129	6,649,350	6,474,701
Finance leases	297,168	295,784	338,242
Equipment trading fleet	92,570	98,420	35,632
Total	7,281,867	7,043,554	6,848,575

(1)

In the equipment fleet tables above, we have included total fleet count information based on CEU. CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our various equipment types to that of a 20-foot dry container. For example, the CEU ratio for a 40-foot high cube dry container is 1.70, and a 40-foot high cube refrigerated container is 7.50. These factors may differ slightly from CEU ratios used by others in the industry.

The following table summarizes our leasing revenue for the periods indicated (in thousands):

	Three Months Ended,
	March 31, 2021		December 31, 2020		March 31, 2020
Operating leases
Per diem revenues	$	331,252	$	319,679	$	298,486
Fee and ancillary revenues	8,542		10,439		14,318
Total operating lease revenues	339,794		330,118		312,804
Finance leases	6,949		7,167		8,664
Total leasing revenues	$	346,743	$	337,285	$	321,468

Important Cautionary Information Regarding Forward-Looking Statements

Certain statements in this release, other than purely historical information, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may,” “would” and similar statements of a future or forward-looking nature may be used to identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond Triton’s control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements.

These factors include, without limitation, economic, business, competitive, market and regulatory conditions and the following: the impact of COVID-19 on our business and financial results; decreases in the demand for leased containers; decreases in market leasing rates for containers; difficulties in re-leasing containers after their initial fixed-term leases; our customers’ decisions to buy rather than lease containers; our dependence on a limited number of customers and suppliers; customer defaults; decreases in the selling prices of used containers; extensive competition in the container leasing industry; difficulties stemming from the international nature of our business; decreases in demand for international trade; disruption to our operations resulting from the political and economic policies of the United States and other countries, particularly China, including but not limited to, the impact of trade wars, duties and tariffs; disruption to our operations from failures of, or attacks on, our information technology systems; disruption to our operations as a result of natural disasters; compliance with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and corruption; our ability to obtain sufficient capital to support our growth; restrictions imposed by the terms of our debt agreements; changes in tax laws in, Bermuda, the United States and other countries and other risks and uncertainties, including those risk factors set forth in the section entitled “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission (“SEC”), on February 16, 2021, in any Form 10-Q filed or to be filed by Triton, and in other documents we file with the SEC from time to time.

The foregoing list of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Any forward-looking statements made herein are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on Triton or its business or operations. Except to the extent required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

-Financial Tables Follow-

TRITON INTERNATIONAL LIMITED
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)

	March 31, 2021			December 31, 2020
ASSETS:
Leasing equipment, net of accumulated depreciation of $3,497,805 and $3,370,652	$	9,198,780		$	8,630,696
Net investment in finance leases	271,347			282,131
Equipment held for sale	57,568			67,311
Revenue earning assets	9,527,695			8,980,138
Cash and cash equivalents	233,064			61,512
Restricted cash	153,272			90,484
Accounts receivable, net of allowances of $1,275 and $2,192	234,682			226,090
Goodwill	236,665			236,665
Lease intangibles, net of accumulated amortization of $269,355 and $264,791	29,102			33,666
Other assets	68,919			83,969
Fair value of derivative instruments	7,578			9
Total assets	$	10,490,977		$	9,712,533
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Equipment purchases payable	$	342,357		$	191,777
Fair value of derivative instruments	68,545			128,872
Accounts payable and other accrued expenses	96,989			95,235
Net deferred income tax liability	342,071			327,431
Debt, net of unamortized costs of $53,446 and $42,747	6,916,697			6,403,270
Total liabilities	7,766,659			7,146,585

Shareholders’ equity:
Preferred shares, $0.01 par value, at liquidation preference	555,000			555,000
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,273,334 and 81,151,723 shares issued, respectively	813			812
Undesignated shares, $0.01 par value, 7,800,000 and 7,800,000 shares authorized, respectively, no shares issued and outstanding	—			—
Treasury shares, at cost, 13,901,326 and 13,901,326 shares, respectively	(436,822		)	(436,822		)
Additional paid-in capital	902,891			905,323
Accumulated earnings	1,765,498			1,674,670
Accumulated other comprehensive income (loss)	(63,062		)	(133,035		)
Total shareholders’ equity	2,724,318			2,565,948
Total liabilities and shareholders’ equity	$	10,490,977		$	9,712,533

TRITON INTERNATIONAL LIMITED
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended March 31,
	March 31, 2021			March 31, 2020
Leasing revenues:
Operating leases	$	339,794		$	312,804
Finance leases	6,949			8,664
Total leasing revenues	346,743			321,468

Equipment trading revenues	25,945			15,380
Equipment trading expenses	(17,804		)	(13,447		)
Trading margin	8,141			1,933

Net gain on sale of leasing equipment	21,967			4,077

Operating expenses:
Depreciation and amortization	143,307			132,695
Direct operating expenses	9,370			23,248
Administrative expenses	20,921			19,225
Provision (reversal) for doubtful accounts	(2,464		)	4,279
Total operating expenses	171,134			179,447
Operating income (loss)	205,717			148,031
Other expenses:
Interest and debt expense	54,623			69,002
Debt termination expense	—			31
Other (income) expense, net	(481		)	(3,584		)
Total other expenses	54,142			65,449
Income (loss) before income taxes	151,575			82,582
Income tax expense (benefit)	11,737			5,546
Net income (loss)	$	139,838		$	77,036
Less: dividend on preferred shares	10,513			9,825
Net income (loss) attributable to common shareholders	$	129,325		$	67,211
Net income per common share—Basic	$	1.93		$	0.94
Net income per common share—Diluted	$	1.92		$	0.94
Cash dividends paid per common share	$	0.57		$	0.52
Weighted average number of common shares outstanding—Basic	66,935			71,596
Dilutive restricted shares	282			202
Weighted average number of common shares outstanding—Diluted	67,217			71,798

TRITON INTERNATIONAL LIMITED
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Three Months Ended March 31,
	March 31, 2021			March 31, 2020
Cash flows from operating activities:
Net income (loss)	$	139,838		$	77,036
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	143,307			132,695
Amortization of deferred debt cost and other debt related amortization	1,142			3,595
Lease related amortization	4,857			7,054
Share-based compensation expense	1,715			1,605
Net (gain) loss on sale of leasing equipment	(21,967		)	(4,077		)
Unrealized (gain) loss on derivative instruments	—			297
Debt termination expense	—			31
Deferred income taxes	11,615			5,505
Changes in operating assets and liabilities:
Accounts receivable	(10,828		)	(3,775		)
Accounts payable and other accrued expenses	1,886			(15,111		)
Net equipment sold (purchased) for resale activity	1,579			1,435
Cash received (paid) for settlement of interest rate swaps	5,558			—
Cash collections on finance lease receivables, net of income earned	12,866			15,466
Other assets	9,420			(23,796		)
Net cash provided by (used in) operating activities	300,988			197,960
Cash flows from investing activities:
Purchases of leasing equipment and investments in finance leases	(579,211		)	(62,406		)
Proceeds from sale of equipment, net of selling costs	53,512			49,498
Other	15			(216		)
Net cash provided by (used in) investing activities	(525,684		)	(13,124		)
Cash flows from financing activities:
Issuance of preferred shares, net of underwriting discount	—			145,275
Purchases of treasury shares	—			(34,357		)
Redemption of common shares for withholding taxes	(4,146		)	(2,156		)
Debt issuance costs	(13,803		)	—
Borrowings under debt facilities	1,504,850			530,000
Payments under debt facilities and finance lease obligations	(979,199		)	(425,073		)
Dividends paid on preferred shares	(10,513		)	(9,395		)
Dividends paid on common shares	(38,153		)	(37,110		)
Other	—			(410		)
Net cash provided by (used in) financing activities	459,036			166,774
Net increase (decrease) in cash, cash equivalents and restricted cash	$	234,340		$	351,610
Cash, cash equivalents and restricted cash, beginning of period	151,996			168,972
Cash, cash equivalents and restricted cash, end of period	$	386,336		$	520,582
Supplemental disclosures:
Interest paid	$	42,133		$	53,795
Income taxes paid (refunded)	$	155		$	139
Right-of-use asset for leased property	$	—		$	—
Supplemental non-cash investing activities:
Equipment purchases payable	$	342,357		$	29,109

Use of Non-GAAP Financial Items

We use the terms “Adjusted net income” and Return on equity throughout this press release.

Adjusted net income and Return on equity are not items presented in accordance with U.S. GAAP and should not be considered as alternatives to, or more meaningful than, amounts determined in accordance with U.S. GAAP, including net income.

Adjusted net income is adjusted for certain items management believes are not representative of our operating performance. Adjusted net income is defined as net income attributable to common shareholders excluding debt termination expenses net of tax, unrealized gains and losses on derivative instruments net of tax, and foreign and other income tax adjustments.

We believe that Adjusted net income is useful to an investor in evaluating our operating performance because this item:

is widely used by securities analysts and investors to measure a company’s operating performance;

helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure, our asset base and certain non-routine events which we do not expect to occur in the future; and

is used by our management for various purposes, including as measures of operating performance and liquidity, to assist in comparing performance from period to period on a consistent basis, in presentations to our board of directors concerning our financial performance and as a basis for strategic planning and forecasting.

We have provided a reconciliation of net income attributable to common shareholders, the most directly comparable U.S. GAAP measure, to Adjusted net income in the table below for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020.

Additionally, the calculation for return on equity is adjusted annualized earnings divided by average shareholders’ equity. Management utilizes return on equity in evaluating how much profit the Company generates on the shareholders’ equity in the Company and believes it is useful for comparing the profitability of companies in the same industry.

TRITON INTERNATIONAL LIMITED
Non-GAAP Reconciliations of Adjusted Net Income
(In thousands, except per share amounts)

	Three Months Ended,
	March 31, 2021			December 31, 2020			March 31, 2020
Net income attributable to common shareholders	$	129,325		$	115,185		$	67,211
Add (subtract):
Unrealized loss (gain) on derivative instruments, net	—			—			270
Debt termination expense	—			358			24
State and other income tax adjustments	—			(866		)	—
Tax benefit from vesting of restricted shares	(643		)	—			(390		)
Adjusted net income	$	128,682		$	114,677		$	67,115
Adjusted net income per common share—Diluted	$	1.91		$	1.70		$	0.93
Weighted average number of common shares outstanding—Diluted	67,217			67,571			71,798

TRITON INTERNATIONAL LIMITED
Calculation of Return on Equity
(In thousands)

	Three Months Ended,
	March 31, 2021			December 31, 2020			March 31, 2020
Adjusted net income	$	128,682		$	114,677		$	67,115
Annualized Adjusted net income ⁽¹⁾	521,877			454,969			269,198

Average Shareholders’ equity ⁽²⁾⁽³⁾	$	2,090,133		$	1,987,419		$	2,061,244

Return on equity	25.0		%	22.9		%	13.1		%

(1)	Annualized Adjusted net income was calculated based on calendar days per quarter.
(2)	Average Shareholders’ equity was calculated using the quarter’s beginning and ending Shareholder’s equity for the three-month ended periods.
(3)	Average Shareholders’ equity was adjusted to exclude preferred shares.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005196/en/

Andrew Greenberg

Senior Vice President

Business Development & Investor Relations

(914) 697-2900

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