Market Newsdesk

Strong Automotive Revenue Significantly Outperformed Light Vehicle Production

Secured $400 Million in New Automotive Awards

Maintains 2021 Guidance

NORTHVILLE, Mich., April 29, 2021 (GLOBE NEWSWIRE) — Gentherm (NASDAQ:THRM), a global market leader and developer of innovative thermal management technologies, today announced its financial results for the first quarter ending March 31, 2021.

First Quarter Highlights

• Product revenues of $288.5 million increased 26.2% from $228.6 million in the 2020 first quarter.
  • Excluding the impact of foreign currency translation, product revenues increased 21.5% year over year
• GAAP diluted earnings per share was $0.99 as compared with $0.36 for the prior-year period
• Adjusted diluted earnings per share (see table herein) was $1.04. Adjusted diluted earnings per share in the prior-year period was $0.51
• Secured automotive new business awards totaling $400 million in the quarter

Phil Eyler, the Company’s President and CEO, said “I am pleased with the strong execution by the Gentherm team, especially in light of the headwinds in the global supply chain, allowing us to continue to outperform in Automotive versus the key markets we serve. In addition, we secured $400 million of new awards from auto makers around the world and continued to make progress on ClimateSense^TM development. While there is still uncertainty in the supply chain, I am proud of our global team for maintaining the momentum on the topline and delivering strong operating performance, while continuing to expand technology leadership.”

2021 First Quarter Financial Review

Product revenues for the first quarter of 2021 increased by $59.9 million, or 26.2%, as compared with the prior-year period. Excluding the impact of foreign currency translation, product revenues increased 21.5% year over year.

Automotive revenues increased 29.1% year over year, with revenue growth in all product categories. Adjusting for foreign currency translation, organic Automotive revenues increased 24.1% year over year, driven by increased volumes as a result of new launches and higher take rate, as well as the negative impact of COVID-19 in the prior-year period. According to IHS Markit’s mid-April report, actual light vehicle production increased by approximately 15.6% when compared with the first quarter of 2020 in the Company’s key markets of North America, Europe, China, Japan and Korea.

Gentherm Medical revenue declined 24.5% year over year, primarily as a result of the continued negative impact of the COVID-19 pandemic on elective surgeries and COVID-driven higher Blanketrol^® sales in the prior-year period.

See the “Revenues by Product Category” table included below for additional detail.

Gross margin rate increased to 30.4% in the current-year period, as compared with 28.9% in the prior-year period. The 150-basis point improvement over the prior-year period resulted from favorable foreign currency translation, fixed cost leverage from higher unit volume and labor productivity. These were partially offset by annual customer price reductions, wage inflation and impact from industry-wide supply chain disruptions.

Net research and development expenses of $17.6 million in the 2021 first quarter decreased $0.2 million, or 0.9% over the prior-year period, primarily due to higher reimbursements for design and development costs, partially offset by increased project-related spending.

Selling, general and administrative expenses of $28.5 million in the 2021 first quarter increased $2.7 million, or 10.4%, versus the prior-year period. The year-over-year increase was primarily driven by increased stock-based compensation expenses as a result of exercises and mark-to-market adjustments in cash-settled stock appreciation rights.

Restructuring expenses of $0.8 million in the current-year period were $3.0 million lower than the prior-year period.

As described more fully in the “Reconciliation of Net Income to Adjusted EBITDA” table included below, the Company recorded Adjusted EBITDA of $51.8 million in the 2021 first quarter compared with $32.7 million in the prior-year period, an increase of $19.1 million or 58.4%.

Income tax expense in the 2021 first quarter was $7.6 million, as compared with $5.4 million in the prior-year period. The effective tax rate was 18.7% in the 2021 first quarter.

GAAP diluted earnings per share for the first quarter of 2021 was $0.99 compared with $0.36 for the prior-year period. Adjusted diluted earnings per share, excluding non-cash purchase accounting impact, restructuring expenses, unrealized currency (gain) losses and other impacts (see table herein), was $1.04. Adjusted diluted earnings per share in the prior-year period was $0.51.

Guidance

The Company maintains its full-year 2021 guidance that was initially provided on its year-end 2020 earnings release on March 1, 2020:

• Product revenues between $1.05 billion and $1.13 billion, assuming current foreign exchange rates and light vehicle production in the Company’s key markets growing at a low-teens rate in 2021 versus 2020
• Adjusted EBITDA between 17% and 19% of product revenues
• Full-year effective tax rate between 22% and 24%
• Capital expenditures between $50 million and $60 million

Conference Call

As previously announced, Gentherm will conduct a conference call today at 8:00 am Eastern Time to review these results. The dial-in number for the call is 1-877-407-4018 (callers in the U.S.) or +1-201-689-8471 (callers outside this U.S.). The passcode for the live call is 13718646.

A live webcast and one-year archived replay of the call can be accessed on the Events page of the Investor section of Gentherm’s website at www.gentherm.com.

A telephonic replay will be available at approximately two hours after the call until 11:59 pm Eastern Time on May 13, 2021. The replay can be accessed by dialing 1-844-512-2921 (callers in the U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode for the replay is 13718646.

Investor Relations Contact

Yijing Brentano
[email protected]
(248) 308-1702

Media Contact

Melissa Fischer
[email protected]
248.289.9702

About Gentherm

Gentherm (NASDAQ:THRM) is a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications. Automotive products include variable temperature Climate Control Seats, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has more than 11,000 employees in facilities in the United States, Germany, Canada, China, Hungary, Japan, Korea, North Macedonia, Malta, Mexico, United Kingdom, Ukraine, and Vietnam. For more information, go to www.gentherm.com. 

Forward-Looking Statements 

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Gentherm Incorporated’s goals, beliefs, plans and expectations about its prospects for the future and other future events. The forward-looking statements included in this release are made as of the date hereof or as of the date specified herein and are based on management’s reasonable expectations and beliefs. Such statements are subject to a number of important assumptions, risks, uncertainties and other factors that may cause actual results or performance to differ materially from that described in or indicated by the forward-looking statements, including that:

• the COVID-19 pandemic and its direct and indirect adverse impacts on the automobile and medical industries and global economy, which had, and may continue to have, an adverse effect on, among other things, the Company’s results of operations, financial condition, cash flows, liquidity, borrowing availability under the Company’s revolving credit facility, business operations, and stock price;
• the loss of any key suppliers, or any material delays in the supply chain of the Company or the OEMs and Tier 1s supplied by the Company, including resulting from a shortage of key components (such as semiconductors);
• the Company’s failure to be in compliance with covenants under its debt agreements, which could result in the amounts outstanding thereunder being accelerated and becoming immediately due and payable;
• the Company’s ability to obtain additional financing by accessing the capital markets, which may not be available on acceptable terms or at all;
• the macroeconomic environment, including its impact on the automotive industry, which is cyclical;
• any significant declines or slower growth than anticipated in light vehicle production;
• market acceptance of the Company’s existing or new products, and new or improved competing products developed by competitors with greater resources;
• shifting customer preferences, including due to the evolving use of automobiles and technology;
• the Company’s ability to project future sales volumes, based on which the Company manages its business;
• reductions in new business awards, which were limited in 2020, and may continue to be limited, due to COVID-19 and related uncertainties;
• the Company’s ability to convert new business awards into product revenues;
• the loss or insolvency of any of the Company’s key customers;
• the impact of price downs in the ordinary course, or additional increased pricing pressures from the Company’s customers;
• the feasibility of Company’s development of new products on a timely, cost effective basis, or at all;
• security breaches and other disruptions to the Company’s IT systems;
• work stoppages impacting the Company, its suppliers or customers;
• changes in free trade agreements or the implementation of additional tariffs, and the Company’s ability to pass-through tariff costs;
• unfavorable changes to currency exchange rates;
• the Company’s ability to protect its intellectual property in certain jurisdictions;
• the Company’s ability to effectively implement ongoing restructuring and other cost-savings measures or realize the full amount of estimated savings; and
• compliance with, and increased costs related to, domestic and international regulations.

The foregoing risks should be read in conjunction with the Company’s filings with the Securities and Exchange Commission (the “SEC”), including “Risk Factors”, in its most recent Annual Report on Form 10-K and subsequent SEC filings, for a discussion of these and other risks and uncertainties. In addition, the business outlook discussed in this release does not include the potential impact of any business combinations, acquisitions, divestitures, strategic investments and other significant transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results. 

Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

		Three Months Ended March 31,
		2021				2020
Product revenues		$	288,535			$	228,613
Cost of sales			200,866				162,546
Gross margin			87,669				66,067
Operating expenses:
Net research and development expenses			17,603				17,760
Selling, general and administrative expenses			28,526				25,840
Restructuring expenses			791				3,766
Total operating expenses			46,920				47,366
Operating income			40,749				18,701
Interest expense, net			(1,039	)			(748	)
Foreign currency gain (loss)			773				(938	)
Other (loss) income			(9	)			264
Earnings before income tax			40,474				17,279
Income tax expense			7,565				5,406
Net income		$	32,909			$	11,873
Basic earnings per share		$	1.00			$	0.36
Diluted earnings per share		$	0.99			$	0.36
Weighted average number of shares – basic			32,946				32,693
Weighted average number of shares – diluted			33,390				32,869

GENTHERM INCORPORATED

REVENUE BY PRODUCT CATEGORY AND RECONCILIATION OF FOREIGN CURRENCY TRANSLATION IMPACT

(In thousands)

(Unaudited)

		Three Months Ended March 31,
		2021				2020			% Change
Climate Control Seat		$	109,173			$	82,528			32.3	%
Seat Heaters			76,721				64,532			18.9	%
Steering Wheel Heaters			28,864				19,235			50.1	%
Automotive Cables			24,281				22,140			9.7	%
Battery Performance Solutions			17,760				11,209			58.4	%
Electronics			15,105				10,376			45.6	%
Other Automotive			7,466				6,452			15.7	%
Subtotal Automotive segment			279,370				216,472			29.1	%
Medical segment			9,165				12,141			(24.5	)%
Total Company		$	288,535			$	228,613			—
Less: Foreign currency translation impact			10,879
Total Company, excluding foreign currency translation impact		$	277,656			$	228,613			21.5	%

GENTHERM INCORPORATED

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

		Three Months Ended March 31,
		2021				2020
Net income		$	32,909			$	11,873
Add back:
Depreciation and amortization			9,695				10,153
Income tax expense			7,565				5,406
Interest expense			1,039				748
Adjustments:
Restructuring expense			791				3,766
Unrealized currency (gain) loss			(295	)			765
Acquisition expenses			114				—
Adjusted EBITDA		$	51,818			$	32,711

Use of Non-GAAP Financial Measures

In addition to the results reported in accordance with GAAP throughout this release, the Company has provided here or elsewhere information regarding adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted EBITDA margin, adjusted earnings per share (“Adjusted earnings per share” or “Adjusted EPS”), free cash flow, Net Debt and Revenue excluding the impact of foreign currency translation, each a non-GAAP financial measure. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, and other gains and losses not reflective of the Company’s ongoing operations and related tax effects including transaction expenses, debt retirement expenses, impairment of assets held for sale, gain or loss on sale of business, restructuring expense, unrealized currency gain or loss and unrealized revaluation of derivatives. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by product revenues. The Company defines Adjusted EPS as earnings adjusted by gains and losses not reflective of the Company’s ongoing operations and related tax effects including transaction expenses, debt retirement expenses, impairment of assets held for sale, gain or loss on sale of business, restructuring expense, unrealized currency gain or loss and unrealized revaluation of derivatives. The Company defines Free Cash Flow as Net cash provided by operating activities less Purchases of property and equipment. The Company defines Net Debt as the principal amount of all Consolidated Funded Indebtedness (as defined in the Credit Agreement) less cash and cash equivalents. The Company defines Revenue excluding the impact of foreign currency translation as revenue, less the estimated effects of foreign currency exchange on revenue by translating actual revenue using the prior period foreign currency exchange rates.

The Company’s reconciliations are included in this release or can be found in the supplemental materials furnished as Exhibit 99.2 to the Company’s Form 8-K dated April 29, 2021.

In evaluating its business, the Company considers and uses Free Cash Flow and Net Debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management provides such non-GAAP financial measures so that investors will have the same financial information that management uses with the belief that it will assist investors in properly assessing the Company’s performance on a period-over-period basis by excluding matters not indicative of the Company’s ongoing operating or liquidity results. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur revenues, expenses, and cash and non-cash obligations that are the same as or similar to some of the adjustments in our presentation of non-GAAP financial measures. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There also can be no assurance that we will not modify the presentation of our non-GAAP financial measures in the future, and any such modification may be material. Other companies in our industry may define and calculate these non-GAAP financial measures differently than we do and those calculations may not be comparable to our metrics. These non-GAAP measures have limitations as analytical tools, and when assessing the Company’s operating performance or liquidity, investors should not consider these non-GAAP measures in isolation, or as a substitute for net income, revenue or other consolidated income statement or cash flow statement data prepared in accordance with GAAP.

Non-GAAP measures referenced in this release and other public communications may include estimates of future Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS. Such forward-looking non-GAAP measures may differ significantly from the corresponding GAAP measures, due to depreciation and amortization, tax expense, and/or interest expense, some or all of which management has not quantified for the future periods.

GENTHERM INCORPORATED

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

(In thousands, except per share data)

(Unaudited)

		Three Months Ended March 31,
		2021				2020
Net income		$	32,909			$	11,873
Non-cash purchase accounting impact			2,050				2,143
Restructuring expenses			791				3,766
Unrealized currency (gain) loss			(295	)			765
Acquisition expenses			114				—
Tax effect of above			(680	)			(1,710	)
Adjusted net income		$	34,889			$	16,837
Weighted average shares outstanding:
Basic			32,946				32,693
Diluted			33,390				32,869
Earnings per share, as reported:
Basic		$	1.00			$	0.36
Diluted		$	0.99			$	0.36
Adjusted earnings per share:
Basic		$	1.06			$	0.52
Diluted		$	1.04			$	0.51

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

		March 31, 2021				December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents		$	170,955			$	268,345
Accounts receivable, net			222,385				211,672
Inventory:
Raw materials			74,549				68,362
Work in process			8,423				8,247
Finished goods			49,085				45,792
Inventory, net			132,057				122,401
Other current assets			39,072				41,188
Total current assets			564,469				643,606
Property and equipment, net			151,440				152,581
Goodwill			66,289				68,024
Other intangible assets, net			42,859				46,421
Operating lease right-of-use assets			27,200				30,642
Deferred income tax assets			71,983				73,912
Other non-current assets			8,214				7,653
Total assets		$	932,454			$	1,022,839
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	132,831			$	116,043
Current lease liabilities			6,168				6,032
Current maturities of long-term debt			2,500				2,500
Other current liabilities			81,251				81,409
Total current liabilities			222,750				205,984
Long-term debt, less current maturities			59,319				189,934
Non-current lease liabilities			22,354				24,233
Pension benefit obligation			7,612				8,163
Other non-current liabilities			7,661				8,194
Total liabilities		$	319,696			$	436,508
Shareholders’ equity:
Common Stock:
No par value; 55,000,000 shares authorized 33,110,644 and 32,921,341 issued and outstanding at March 31, 2021 and December 31, 2020, respectively			129,600				121,073
Paid-in capital			6,123				7,458
Accumulated other comprehensive loss			(28,656	)			(14,982	)
Accumulated earnings			505,691				472,782
Total shareholders’ equity			612,758				586,331
Total liabilities and shareholders’ equity		$	932,454			$	1,022,839

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

		Three Months Ended March 31,
		2021				2020
Operating Activities:
Net income		$	32,909			$	11,873
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			9,854				10,406
Deferred income taxes			105				721
Non-cash stock based compensation			2,740				1,942
Change in defined benefit pension plans			(477	)			85
Loss on sale of property and equipment			242				119
Operating lease expense			2,575				1,651
Changes in assets and liabilities:
Accounts receivable, net			(13,931	)			(2,040	)
Inventory			(11,546	)			(404	)
Other assets			555				(4,805	)
Accounts payable			18,113				13,540
Other liabilities			(1,472	)			(3,669	)
Net cash provided by operating activities			39,667				29,419
Investing Activities:
Purchases of property and equipment			(9,913	)			(3,231	)
Acquisition of intangible assets			—				(3,141	)
Proceeds from the sale of property and equipment			10				34
Other			(200	)			—
Net cash used in investing activities			(10,103	)			(6,338	)
Financing Activities:
Borrowing of debt			—				169,546
Repayments of debt			(130,000	)			(16,111	)
Cash paid for the repurchase of Common Stock			—				(9,092	)
Proceeds from the exercise of Common Stock options			5,984				5,902
Cash paid for the cancellation of restricted stock			(1,532	)			(404	)
Acquisition contingent consideration payment			(68	)			—
Net cash (used in) provided by financing activities			(125,616	)			149,841
Foreign currency effect			(1,338	)			(426	)
Net (decrease) increase in cash and cash equivalents			(97,390	)			172,496
Cash and cash equivalents at beginning of period			268,345				52,948
Cash and cash equivalents at end of period		$	170,955			$	225,444
Supplemental disclosure of cash flow information:
Cash paid for taxes		$	2,555			$	3,525
Cash paid for interest		$	844			$	537

MINNEAPOLIS, April 29, 2021 (GLOBE NEWSWIRE) — iMedia Brands, Inc. (the “Company”) (NASDAQ: IMBI) announces it launched 34 new brands in first quarter 2021 on its national television networks ShopHQ, ShopBulldogTV and ShopHQHealth.  

“Another strong quarter of exciting new brand premieres,” said Tim Peterman, CEO iMedia Brands. “Each of these brands represent an important opportunity for us to continue to improve our customer experiences.”

The company announced 16 of these 34 brands on January 7, 2021, and below are the additional 18 new brands.

1. Swarovski Crystal is a world-renowned brand featuring both classic crystal style and new crystal designs that is now part of our Home lifestyle expert Jorge Perez’s collection.
2. Colston is an exclusive line of kitchen products originally launched by Sir Charles Colston in 1955.
3. SeroVital Beauty features topical beauty products offering defense against the visible signs of aging.
4. ContoursRX uses state-of-the-art non-surgical beauty enhancement technology developed by medical experts to provide men and women with naturally lifted lids.
5. Meta Activewear features modern fashion active designs that make its customers feel strong and balanced.
6. Sanita Footwear has been handcrafted in Europe since 1907. Over a century ago, Christian Melgaard Andersen made the first pairs of Sanita clogs for local masons, farmers and bakers.
7. Shapiro MD Haircare combines Dr. Shapiro’s 20 years of clinical experience in hair loss and hair transplant procedures with Dr. Borenstein’s intensive research background and PhD in Pharmacology. The doctors built the most effective formulation for easy-to-use products designed to help regrow hair.
8. TheCloseOut offers consumers exclusive and name-brand products at deep discounts.
9. Portmeirion is a British brand specializing in tableware, giftware, glassware and home fragrance products.
10. World Champion Coins is a full-service mint featuring finely crafted precious metal products, unique coins and other sports memorabilia.
11. REST Smart Beds are innovative adjustable mattresses with built-in Wi-Fi smart controls.
12. KetoZone Diet with Dr. Colbert offers unique formulations of shakes, powders and ingestible probiotics to fuel a Keto diet designed to contribute to a healthy lifestyle.
13. Cleaning Solutions with Kalorik features innovative water filtration technology in a collection of powerful new vacuums.
14. Bernie Mev blends classic fashion style with a bit of modern technology to create accessibly priced sneakers, wedges, flats and more for women and kids.
15. Durango is a leading footwear brand that uses fun details to transform the iconic western look that has been worn for centuries into a more fashion-centric style.
16. Home Collection is a line of premium bedding products designed to combine elegance with uncompromising comfort for all layers of bedding and bedding accessories.
17. Reduce Fat-Fast is a line of exclusive tea-based dietary supplements designed to jumpstart a healthy lifestyle.
18. Cindyology is an exclusive collection of innovative storage products for the home.

Customers can shop the collections on shophq.com, shopbulldogtv.com and shophqhealth.com, and watch these events via cable and satellite, over-the-air broadcasting, mobile app and live streaming. ShopHQ airs on DIRECTV channels 73 and 316, DISH Network channel 134, Apple TV, Roku, Amazon Fire TV, select Samsung Smart TVs, YouTube and on the nation’s top cable providers.

About iMedia Brands, Inc.

iMedia Brands, Inc. (Nasdaq: IMBI) is a leading interactive media company that owns a growing portfolio of lifestyle television networks, consumer brands and media commerce services. Its brand portfolio spans multiple business models and product categories. Its television brands are ShopHQ, ShopBulldogTV, ShopHQHealth and LaVenta. Its media commerce services brands are Float Left Interactive and i3PL Services. Its consumer brands include J.W. Hulme jwhulmeco.com, Christopher & Banks christopherandbanks.com, OurGalleria.com and TheCloseOut.com. Please visit www.imediabrands.com for more investor information.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains statements, estimates, projections, guidance or outlooks that constitute “forward-looking” statements as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “project,” “should” and similar expressions identify forward-looking statements, which generally are not historical in nature. These statements may contain information about our prospects, including anticipated show, event, or product line launches, and involve risks and uncertainties. We caution that actual results could differ materially from those that management expects, depending on the outcome of certain factors.

Contacts:

Media:

[email protected]

(800) 938-9707

Investors:

Gateway Investor Relations
Cody Slach
[email protected]
(949) 574-3860

2021 First Quarter Revenues of $261.4 Million, up 6.3% year-over-year

Q1 Diluted Earnings Per Share (GAAP) of $0.93, up from $0.65 in Q1 of 2020

Q1 Adjusted Diluted Earnings Per Share (Non-GAAP)



⁽¹⁾



of $1.18, up from $0.81 in Q1 of 2020

NEW YORK, April 29, 2021 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (NASDAQ: EXLS), a leading operations management and analytics company, today announced its financial results for the quarter ended March 31, 2021.

Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “EXL had a strong start to the year with first quarter revenue of $261.4 million. Analytics growth accelerated with a 10.7% revenue increase from the first quarter of 2020. Adjusted diluted earnings per share for the quarter was $1.18, a 46% increase year-over-year. Our data-led value creation framework is resonating well in the market and we are driving revenue expansion with our existing clients as well as signing new logos. While we are in a favorable demand environment with a strong pipeline of opportunities, we also face significant pandemic related challenges in our delivery geographies, particularly in India and the Philippines.”

Maurizio Nicolelli, Chief Financial Officer, said, “Based on our strong first quarter financial results, the growth momentum in the business and an expectation of continued fulfillment levels, we are increasing our revenue guidance for 2021 to be in the range of $1.04 billion to $1.07 billion, representing a 8% to 11% increase year-over-year on a constant currency basis, from 2020. Our adjusted diluted earnings per share guidance for 2021 is increasing to $4.00 to $4.30, representing a 13% to 22% increase over the prior year.”

1. Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures”. These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

Financial Highlights: First Quarter 2021

• Revenues for the quarter ended March 31, 2021 increased to $261.4 million compared to $246.0 million for the first quarter of 2020, an increase of 6.3% on a reported basis and 5.5% on a constant currency basis from the first quarter of 2020. Revenues increased by 5.0% sequentially on a reported basis and 4.7% on a constant currency basis, from the fourth quarter of 2020.

		Revenues								Gross Margin
		Three months ended								Three months ended
Reportable Segments		March 31, 2021				March 31, 2020				March 31, 2021			March 31, 2020
		(dollars in millions)
Insurance		$	91.1			$	83.7			38.5	%		29.6	%
Healthcare		30.3				27.0				42.5	%		27.5	%
Emerging Business		37.7				42.8				44.7	%		40.5	%
Analytics		102.3				92.5				37.0	%		36.6	%
Total Revenues, net		$	261.4			$	246.0			39.2	%		33.9	%

• Operating income margin for the quarter ended March 31, 2021 was 15.9%, compared to an operating income margin of 11.2% for the first quarter of 2020 and operating income margin of 15.4% for the fourth quarter of 2020. Adjusted operating income margin for the quarter ended March 31, 2021 was 20.2% compared to 14.8% for the first quarter of 2020 and 19.7% for the fourth quarter of 2020.
• Diluted earnings per share for the quarter ended March 31, 2021 was $0.93 compared to $0.65 for the first quarter of 2020 and $0.94 for the fourth quarter of 2020. Adjusted diluted earnings per share for the quarter ended March 31, 2021 was $1.18 compared to $0.81 for the first quarter of 2020 and $1.14 for the fourth quarter of 2020.

Business Highlights: First Quarter 2021

• Won 14 new clients in the first quarter of 2021, with five in our operations management businesses and nine in Analytics.

• Released LDS 2.0, EXL’s digital new business and underwriting solution for life and annuities insurers which includes a robust suite of automation and configuration tools.

• Released LifePRO® 20, EXL’s innovative digital policy administration platform that supports end-to-end digital insurance policy administration lifecycle.

• Recognized as a Visionary in the February 2021 Gartner Magic Quadrant for Data and Analytics Service Providers⁽²⁾

• Included in The Booming 15 lists in the ISG Index™, for the 13th quarter in a row.

Post-First Quarter Highlight

• As previously announced, subsequent to the first quarter of 2021, on April 19, 2021, Pavan Bagai, President and Chief Operating Officer, notified us that he will retire from the company effective October 1, 2021. Mr. Bagai’s responsibilities will be transitioned in an orderly manner to other members of EXL’s executive team over the course of the next several months.

2021 Guidance

Based on current visibility, and a U.S. Dollar to Indian Rupee exchange rate of 74.50, British Pound to U.S. Dollar exchange rate of 1.38, U.S. Dollar to the Philippine Peso exchange rate of 48.50 and all other currencies at current exchange rates, we are providing the following 2021 guidance:

• Revenue of $1.04 billion to $1.07 billion, representing an increase of 9% to 12% on a reported basis, and 8% to 11% on a constant currency basis, from 2020.

• Adjusted diluted earnings per share of $4.00 to $4.30, representing an increase of 13% to 22% from 2020.

Conference Call

ExlService Holdings, Inc. will host a conference call on Thursday, April 29, 2021 at 10:00 A.M. ET to discuss the Company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

To listen to the conference call via phone, please dial 1-877-303-6384, or if dialing internationally, 1-224-357-2191 and an operator will assist you. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

(2)        Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About ExlService Holdings, Inc.

EXL (NASDAQ: EXLS) is a leading operations management and analytics company that helps our clients build and grow sustainable businesses. By orchestrating our domain expertise, data, analytics and digital technology, we look deeper to design and manage agile, customer-centric operating models to improve global operations, drive profitability, enhance customer satisfaction, increase data-driven insights, and manage risk and compliance. Headquartered in New York, EXL has approximately 31,600 professionals in locations throughout the United States, the United Kingdom, Europe, India, the Philippines, Colombia, Canada, Australia and South Africa. EXL serves customers in multiple industries including insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics, media and retail, among others. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to successfully close and integrate strategic acquisitions, our ability to respond to and manage public health crises, including the outbreak and continued effects of the coronavirus (COVID-19) pandemic, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Quarterly Report on Form 10-Q and Annual Report on Form 10-K. These risks could cause actual results to differ materially from those implied by forward-looking statements in this release. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.

EXLSERVICE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except share and per share amounts)

	Three months ended March 31,
	2021				2020
Revenues, net	$	261,415			$	245,990
Cost of revenues(1)	158,821				162,656
Gross profit (1)	102,594				83,334
Operating expenses:
General and administrative expenses	30,703				28,941
Selling and marketing expenses	18,235				14,456
Depreciation and amortization expense	12,101				12,450
Total operating expenses	61,039				55,847
Income from operations	41,555				27,487
Foreign exchange gain, net	434				1,377
Interest expense	(2,474		)		(3,072		)
Other income, net	1,410				2,529
Income before income tax expense and earnings from equity affiliates	40,925				28,321
Income tax expense	8,958				5,855
Income before earnings from equity affiliates	31,967				22,466
Loss from equity-method investment	36				55
Net income attributable to ExlService Holdings, Inc. stockholders	$	31,931			$	22,411
Earnings per share attributable to ExlService Holdings, Inc. stockholders:
Basic	$	0.95			$	0.65
Diluted	$	0.93			$	0.65
Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings Inc. stockholders:
Basic	33,734,118				34,401,565
Diluted	34,318,318				34,720,603

⁽¹⁾ Exclusive of depreciation and amortization expense.

EXLSERVICE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share and per share amounts)

		As of
		March 31, 2021				December 31, 2020
Assets
Current assets:
Cash and cash equivalents		$	177,121			$	218,530
Short-term investments		198,721				184,286
Restricted cash		5,295				4,690
Accounts receivable, net		159,296				147,635
Prepaid expenses		12,709				11,344
Advance income tax, net		7,580				5,684
Other current assets		35,828				37,109
Total current assets		596,550				609,278
Property and equipment, net		90,153				92,875
Operating lease right-of-use assets		88,777				91,918
Restricted cash		2,298				2,299
Deferred tax assets, net		10,657				7,749
Intangible assets, net		56,243				59,594
Goodwill		349,098				349,088
Other assets		29,669				32,099
Investment in equity affiliate		2,921				2,957
Total assets		$	1,226,366			$	1,247,857
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	8,304			$	6,992
Current portion of long-term borrowings		25,000				25,000
Deferred revenue		14,764				32,649
Accrued employee costs		43,492				67,645
Accrued expenses and other current liabilities		73,241				66,410
Current portion of operating lease liabilities		18,476				18,894
Income taxes payable, net		14,443				3,488
Total current liabilities		197,720				221,078
Long-term borrowings, less current portion		202,687				201,961
Operating lease liabilities, less current portion		81,948				84,874
Income taxes payable		1,790				1,790
Deferred tax liabilities, net		877				847
Other non-current liabilities		15,119				18,135
Total liabilities		500,141				528,685
Commitments and contingencies
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued		—				—
ExlService Holdings, Inc. Stockholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized, 39,273,989 shares issued and 33,526,889 shares outstanding as of March 31, 2021 and 38,968,052 shares issued and 33,559,434 shares outstanding as of December 31, 2020		39				39
Additional paid-in capital		428,882				420,976
Retained earnings		673,310				641,379
Accumulated other comprehensive loss		(78,753		)		(74,984		)
Total including shares held in treasury		1,023,478				987,410
Less: 5,747,100 shares as of March 31, 2021 and 5,408,618 shares as of December 31, 2020, held in treasury, at cost		(297,253		)		(268,238		)
Stockholders’ equity		726,225				719,172
Total equity		726,225				719,172
Total liabilities and stockholders’ equity		$	1,226,366			$	1,247,857

EXLSERVICE HOLDINGS, INC.

Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

(i)    Adjusted operating income and adjusted operating income margin;
(ii)   Adjusted EBITDA and adjusted EBITDA margin;
(iii)  Adjusted net income and adjusted diluted earnings per share; and
(iv)  Revenue growth on a constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with further acquisitions and the currency fluctuations and associated tax impacts. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, impairment charges of acquired long-lived and intangible assets including goodwill, provision for litigation settlement, non-cash interest expense on convertible senior notes, restructuring charges and other acquisition-related expenses or benefits. Acquisition-related expenses or benefits include, changes in the fair value of earn-out consideration liabilities, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits. In addition to excluding the above items, our adjusted net income and adjusted diluted EPS also excludes the effect any non-recurring tax adjustments and income tax impact of the above pre-tax items, as applicable. The income tax impact of each item is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred.

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

The information provided on a constant currency basis reflects a comparison of current period results translated at the prior period currency rates. This information is provided because EXL believes that it provides useful comparative incremental information to investors regarding EXL’s true operating performance. EXL’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine Peso. The average exchange rate of the U.S. Dollar against the Indian Rupee increased from 73.08 during the quarter ended March 31, 2020 to 73.17 during the quarter ended March 31, 2021, representing an appreciation of 0.1%. The average exchange rate of the U.S. Dollar against the Philippine Peso decreased from 50.83 during the quarter ended March 31, 2020 to 48.39 during the quarter ended March 31, 2021, representing a depreciation of 4.8%. The average exchange rate of the British Pound against the U.S. Dollar increased from 1.28 during the quarter ended March 31, 2020 to 1.38 during the quarter ended March 31, 2021, representing a depreciation of 8.2%.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended March 31, 2021 and March 31, 2020, and the three months ended December 31, 2020:

Reconciliation of Adjusted Operating Income and Adjusted EBITDA

(Amounts in thousands)

		Three months ended
		March 31,								December 31,
		2021				2020				2020
Net Income (GAAP)		$	31,931			$	22,411			$	32,218
add: Income tax expense		8,958				5,855				7,209
add/(subtract): Interest expense, foreign exchange gain, net, loss from equity-method investment and other income, net		666				(779		)		(1,164		)
Income from operations (GAAP)		$	41,555			$	27,487			$	38,263
add: Stock-based compensation expense		7,832				4,778				7,385
add: Amortization of acquisition-related intangibles		3,361				4,154				3,415
Adjusted operating income (Non-GAAP)		$	52,748			$	36,419			$	49,063
Adjusted operating income margin as a % of Revenues (Non-GAAP)		20.2		%		14.8		%		19.7		%
add: Depreciation		8,740				8,296				9,767
Adjusted EBITDA (Non-GAAP)		$	61,488			$	44,715			$	58,830
Adjusted EBITDA margin as a % of revenue (Non-GAAP)		23.5		%		18.2		%		23.6		%

Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share

(Amounts in thousands, except per share data)

		Three months ended
		March 31,								December 31,
		2021				2020				2020
Net income (GAAP)		$	31,931			$	22,411			$	32,218
add: Stock-based compensation expense		7,832				4,778				7,385
add: Amortization of acquisition-related intangibles		3,361				4,154				3,415
add: Non-cash interest expense related to convertible senior notes		673				635				673
subtract: Effect of non-recurring tax benefits (a)		—				—				(1,340		)
subtract: Tax impact on stock-based compensation expense (b)		(2,358		)		(2,733		)		(2,099		)
subtract: Tax impact on amortization of acquisition-related intangibles		(758		)		(897		)		(798		)
subtract: Tax impact on non-cash interest expense related to convertible senior notes		(162		)		(156		)		(168		)
Adjusted net income (Non-GAAP)		$	40,519			$	28,192			$	39,286
Adjusted diluted earnings per share (Non-GAAP)		$	1.18			$	0.81			$	1.14

(a)	To exclude non-recurring tax benefits related to certain deferred tax assets and liabilities.
(b)	Tax impact includes $931 and $1,799 during the three months ended March 31, 2021 and 2020 respectively, and $504 during the three months ended December 31, 2020, related to discrete benefits recognized in income tax expense on adoption of ASU No. 2016-09, Compensation – Stock Compensation.

Contact: Steven N. Barlow
Vice President, Investor Relations
(917) 596-7684
[email protected]

TORONTO, April 29, 2021 (GLOBE NEWSWIRE) — Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announces that three of its founding Directors – Andrew Adams, Michael Murphy (co-founder), and Fred Stanford – will not stand for reelection at the Company’s annual shareholder meeting (the “AGM”) in June 2021. At the same time, Fred Stanford will resign from his executive role with the Company. Richard Howes, currently Lead Independent Director, will stand for nomination as Chair at the upcoming AGM.

Fred Stanford, Executive Chair of Torex, stated:

“At recent AGMs, investor voting has indicated a preference that Directors with more than ten years of service stand aside to allow for a “Board refresh”. We respect that, and the process of Board refresh started last year with the appointment of four new Directors. This year, there are many excellent Director candidates willing to put themselves forward for election, so Andrew, Michael, and I will stand aside to make room for them.

“As expected, both Jody Kuzenko and Rick Howes have transitioned quickly into their new roles. My role as Executive Chair was always meant to be transitory as they settled in. With both of them performing very effectively in role, I will resign as a Torex Director and executive. Looking to the future, I plan to pursue my interest in commercializing Muckahi technology and building Muckahi mines.

“Looking to the past, I have had a front row seat since the founding of the Company. Andrew and Michael have been there for the entire journey as well. As the business grew and developed in a challenging jurisdiction, it has not always been smooth sailing. Collectively, we found a path through social and technical challenges and have created a very healthy business with a solid social, technical, and financial foundation; one that a great many people inside and outside of the Company are proud to be associated with. On behalf of so many, I would like to thank Andrew and Michael for their contributions over more than a decade. Both have provided thoughtful perspectives, commitment, judgement, and steady hands throughout. It has been a pleasure to build a company with them.

“Since this is my final official comment on behalf of Torex, I would like to make a few other acknowledgments. First to Terry MacGibbon (co-founder), who talked me into taking on the CEO role. Building a successful values-based company has been a tremendous experience. Terry has been a wonderful mentor throughout and makes a difference wherever he goes. Second to our Directors, investors, and the sell-side teams, whose support, advice, and coaching has been more than helpful and very much appreciated. Finally, I must acknowledge our internal and external team members. In our value-based approach, we tried to create a work experience that led to team members willingly giving their best. Their best has been amazing, and I know that they will continue to routinely achieve the impossible. It has been an honour to be a part of what the team has accomplished, and I look forward to our paths crossing again.”

Rick Howes, Lead Independent Director of Torex, stated:

“It is with tremendous gratitude to Fred, Michael and Andrew that we announce these changes, which will take effect at the next AGM in June. All three individuals have been instrumental over the past decade in building the Company from the ground up, and in so doing, have set a solid foundation for future growth and value generation. On behalf of our entire team, I thank them and wish them all the best as they move on to their future endeavours. I’m honoured to stand as nominee as Chair of the Board and look forward to continuing the excellent work they started as we look to the future.

“I especially want to acknowledge Fred for his formative work in defining the character of our organization, including the strong spirit of innovation that now exists within the Company’s DNA. The Company will continue to assess whether the Muckahi Mining System will be deployed at Media Luna and/or elsewhere as we actively pursue growth opportunities both within our Morelos property and in other jurisdictions.

“The refresh of our Board of Directors is ongoing, and the new slate of Directors that will stand for nomination will be announced along with the Proxy Circular that will be publicly released in May.”

ABOUT TOREX GOLD RESOURCES INC.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”) comprising the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep (“ELD”), and the processing plant and related infrastructure, which commenced commercial production as of April 1, 2016, and the Media Luna deposit, which is an advanced stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018. The property remains 75% unexplored.

FOR FURTHER INFORMATION, PLEASE CONTACT:

TOREX GOLD RESOURCES INC.
Jody Kuzenko	Dan Rollins
President and CEO	Vice President, Corporate Development & Investor Relations
Direct: (647) 725-9982	Direct: (647) 260-1503
[email protected]	[email protected]

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes but is not limited to statements that: the three named directors will not stand for reelection at the AGM; Mr. Stanford will resign from his executive role with the Company; Mr. Howes will stand for nomination as Chair at the upcoming AGM; there are many excellent director candidates willing to put themselves forward for election; the Company will continue to assess whether the Muckahi Mining System will be deployed at Media Luna and/or elsewhere as we actively pursue growth opportunities both within our Morelos property and in other jurisdictions; and, the refresh of the Board of Directors is ongoing, and the new slate of Directors that will stand for nomination will be announced along with the Proxy Circular that will be publicly released in May 2021. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “continues”, “opportunities”, “ongoing” or variations of such words and phrases or statements that certain actions, events or results such as “will” or “pursue”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, those risk factors identified in the technical report titled “NI 43-101 Technical Report ELG Mine Complex Life of Mine Plan and Media Luna Preliminary Economic Assessment” dated effective March 31, 2018 (the “Technical Report”) and the Company’s annual information form (“AIF”) and management’s discussion and analysis (“MD&A”) or other unknown but potentially significant impacts. Forward-looking information are based on the assumptions discussed in the Technical Report, AIF and MD&A and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.

DUBLIN, Ireland and BRIDGEWATER, N.J., April 29, 2021 (GLOBE NEWSWIRE) — Amarin Corporation plc (NASDAQ:AMRN), today announced that Joseph T. Kennedy has informed the board of directors of his decision to retire as executive vice president, general counsel and strategic initiatives. A search is underway at Amarin for a new general counsel. Mr. Kennedy has agreed to continue in his role until a replacement is hired and manage certain legacy matters through the end of 2021. He is committed to a smooth transition of responsibilities.

Dr. Lars Ekman, Chairman of Amarin’s Board of Directors, commented, “The board and management at Amarin are profoundly grateful to Joe for his service to the company over the last decade. As EVP at Amarin, Joe’s critical thinking, ingenuity and persistence repeatedly played a pivotal role in the development of the company from clinical stage to a commercial multinational. To enable Amarin to progress on its mission, Joe championed solutions on issues that long vexed the pharmaceutical industry in areas as diverse as decriminalizing communication of truthful and non-misleading drug information under the First Amendment, expanded regulatory exclusivity incentives for naturally derived products and competitive claim advocacy. We look forward to Joe’s guidance as we hire a new general counsel at Amarin and work together to help accelerate the company’s growth trajectory worldwide.”  

“With a groundbreaking drug, untapped global markets and a talented and seasoned team in place in every company discipline, I have no doubt that Amarin’s best years lie ahead,” said Mr. Kennedy. “Working with the many talented colleagues at Amarin has been a privilege and an honor. I look forward to ensuring a smooth transition.”  

About Amarin

Amarin is an innovative pharmaceutical company leading a new paradigm in cardiovascular disease management. From our scientific research foundation to our focus on clinical trials, and now our commercial expansion, we are evolving and growing rapidly. Amarin has offices in Bridgewater, New Jersey in the United States, Dublin in Ireland, and Zug in Switzerland as well as commercial partners and suppliers around the world. We are committed to rethinking cardiovascular risk through the advancement of scientific understanding of the impact on society of significant residual risk that exists beyond traditional therapies, such as statins for cholesterol management.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about expectations for future progress at Amarin, accelerated growth trajectory and planned smooth management transition. These forward-looking statements are not promises or guarantees and involve substantial risks and uncertainties that may individually or together impact the matters herein and cause actual results, events and performance to differ materially from such forward looking statements. Among the factors that could cause actual results to differ materially from those described or projected herein include the following: events that could impact future regulatory assessment, such as delays due to COVID-19 restrictions, later arising data, regulatory reviews and pricing assessments, and the successful implementation of commercialization plans or other information, uncertainties associated with litigation generally and patent litigation specifically; Amarin’s ability generally to maintain adequate patent protection and successfully enforce patent claims against third parties; and uncertainties associated generally with research and development and regulatory submissions, reviews, action dates and approvals. A further list and description of these risks, uncertainties and other risks associated with an investment in Amarin can be found in Amarin’s filings with the U.S. Securities and Exchange Commission, including its most recent quarterly report on Form 10-Q. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Amarin undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. Amarin’s forward-looking statements do not reflect the potential impact of significant transactions the company may enter into, such as mergers, acquisitions, dispositions, joint ventures or any material agreements that Amarin may enter into, amend or terminate.

Availability of Other Information About Amarin

Investors and others should note that Amarin communicates with its investors and the public using the company website (www.amarincorp.com), the investor relations website (investor.amarincorp.com), including but not limited to investor presentations and investor FAQs, Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information that Amarin posts on these channels and websites could be deemed to be material information. As a result, Amarin encourages investors, the media, and others interested in Amarin to review the information that is posted on these channels, including the investor relations website, on a regular basis. This list of channels may be updated from time to time on Amarin’s investor relations website and may include social media channels. The contents of Amarin’s website or these channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933.

Amarin Contact Information

Investor Inquiries:

Investor Relations
Amarin Corporation plc
In U.S.: +1 (908) 719-1315
[email protected] (investor inquiries)

Solebury Trout
[email protected]

Media Inquiries:

Communications
Amarin Corporation plc
In U.S.: +1 (908) 892-2028
[email protected] (media inquiries)

• Reported $0.19 EPS from continuing operations and achieved $0.44 of adjusted EPS
• Grew sales 8% including organic sales-per-day growth of 9%
• Recently announced expanded fast-growing foot & ankle business with April acquisition of MedShape
• Raising low-end of adjusted 2021 EPS guidance range to $2.05-$2.15

ANNAPOLIS JUNCTION, MD, April 29, 2021 (GLOBE NEWSWIRE) — Colfax Corporation (NYSE: CFX), a leading diversified technology company, today announced its financial results for the first quarter of 2021.

The Company reported first quarter net income from continuing operations of $27 million, or $0.19 per share, compared to $0.06 per share in the prior year period. Adjusted earnings of $0.44 per share rose 16% from $0.38 per share in the prior year period and exceeded the Company’s previous guidance of $0.35 to $0.40 per share. Adjustments to reported earnings are included in this release.

In the first quarter, net sales of $879 million increased 8% on a reported basis, or 6% on a constant currency basis. Organic sales-per-day increased 9%. The Company also posted first quarter adjusted EBITA growth of 12% to $107 million. Adjusted EBITA margin was 12.2% in the quarter, a 50 basis points increase over the prior year period. The Company generated operating cash flow of $84 million and free cash flow of $60 million.

“Our results and momentum strengthened throughout the quarter,” said Matt Trerotola, Colfax President and CEO. “At ESAB, increased demand and our successful execution of margin expansion activities resulted in our highest-ever EBITA margin. In MedTech, market conditions improved and our Reconstructive segment delivered 8% organic sales-per-day growth and continues to gain share. We drove strong free cash flow in the quarter and are well on our way to generating more than $250 million in 2021. We are well-capitalized and positioned to execute our strategic growth program.”

During the quarter, the Company announced its intention to separate its fabrication technology and specialty medical technology businesses into two differentiated, independent, and publicly-traded companies, with a target completion date of the first quarter 2022. The Company strengthened its balance sheet in March with a registered public offering of 16.1 million shares of its common stock for net cash proceeds of $711 million. In April, Colfax completed the redemption of $700 million of its outstanding senior notes. As a result, the Company finished the first quarter with net leverage of 2.9 times and expects to end the year approaching 2.0 times before taking into account the potential impact from additional M&A investments.

Colfax also recently announced that it completed the acquisition of MedShape, Inc. in April. MedShape provides innovative surgical solutions for foot and ankle surgeons using its patented superelastic nickel titanium (NiTiNOL) and shape memory polymer technologies. The acquisition of MedShape^® expands the Company’s foot & ankle platform that was formed from the recent Trilliant Surgical^® and Scandinavian Total Ankle Replacement (STAR^®) system acquisitions. With a total investment of approximately $225 million, the Company has created a high gross margin and fast-growing foot and ankle business with initial expected annualized revenues of approximately $65 million.

In the first quarter, Colfax’s Fabrication Technology segment sales increased 11% on an organic sales-per-day basis versus the prior year quarter and 8% overall, including a 1% positive impact from currency trends. The segment reported adjusted EBITA margins of 16.1%, compared to 14.8% in the prior year. Medical Technology segment sales in the quarter increased 5% on an organic sales-per-day basis compared to the prior year and 7% overall, including a 2% benefit from positive currency trends. The segment reported adjusted EBITA margins of 10.2%, compared to 10.6% in the prior year. Excluding the impact from recent acquisitions, Medical Technology segment adjusted EBITA margins increased 10 basis points compared to the prior year.

Updated
2021 Financial Outlook

Due to the strength of first quarter results, the Company announced that it is raising the low-end of its 2021 adjusted EPS outlook from $2.00-$2.15 to $2.05-$2.15. For the second quarter of 2021, Colfax expects adjusted earnings of $0.48 to $0.53 per diluted share. This guidance range reflects the recent equity issuance and senior note redemptions.

Conference Call and Webcast

The Company will hold a conference call to discuss its first quarter 2021 results beginning at 8:00 a.m. Eastern today, which will be open to the public by calling +1-877-303-7908 (U.S. callers) and +1-678-373-0875 (International callers) and referencing the conference ID number 1986324 and through webcast via Colfax’s website www.colfaxcorp.com under the “Investors” section. Access to a supplemental slide presentation can also be found at the Colfax website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call.

About Colfax Corporation

Colfax Corporation (NYSE: CFX) is a leading diversified technology company that provides orthopedic and fabrication technology products and services to customers around the world, principally under the DJO and ESAB brands. The Company uses its Colfax Business System (“CBS”), a comprehensive set of tools and processes, to create superior value for customers, shareholders and associates. In March of 2021, Colfax announced its intention to separate into two independent and public companies, which is targeted to be completed in the first quarter of 2022 to accelerate strategic momentum and unlock additional value creation potential; one business will focus on specialty medical technologies and the other on fabrication technologies. For more information about Colfax and our separation activities, please visit www.colfaxcorp.com.

Non-GAAP Financial Measures and Other Adjustments

Colfax has provided
in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations, adjusted net income margin from continuing operations, adjusted net income per diluted share from continuing operations, adjusted EBITA (earnings before interest, taxes and amortization), adjusted EBITA margin, organic sales growth, and free cash flow. Colfax also provides adjusted EBITA and adjusted EBITA margin on a segment basis.

Adjusted net income from continuing operations represents net income (loss) from continuing operations excluding restructuring and other related charges, European Union Medical Device Regulation (“MDR”) and other costs, debt extinguishment charges, acquisition-related amortization and other non-cash charges, and strategic transaction costs. Colfax also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations.

Adjusted net income per diluted share from continuing operations represents adjusted net income from continuing operations divided by the number of adjusted diluted weighted average shares. Both GAAP and non-GAAP diluted net income per share data are computed based on weighted average shares outstanding and, if there is net income from continuing operations (rather than net loss) during the period, the dilutive impact of share equivalents outstanding during the period. Diluted weighted average shares outstanding and adjusted diluted weighted average shares outstanding are calculated on the same basis except for the net income or loss figure used in determining whether to include such dilutive impact.

Adjusted EBITA represents net income (loss) from continuing operations excluding restructuring and other related charges, MDR and other costs, acquisition-related amortization and other non-cash charges, and strategic transaction costs, as well as income tax expense (benefit) and interest expense, net. Colfax presents adjusted EBITA margin, which is subject to the same adjustments as adjusted EBITA. Further, Colfax presents adjusted EBITA (and adjusted EBITA margin) on a segment basis, which excludes the impact of strategic transaction costs and acquisition-related amortization and other non-cash charges from segment operating income.

Organic sales growth (decline) excludes the impact of acquisitions and foreign exchange rate fluctuations.

Free cash flow represents cash flow from operating activities less purchases of property,
plant
and equipment.

These non-GAAP financial measures assist Colfax management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Colfax management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.

In this press release, Colfax presents forward-looking adjusted EPS and free cash flow guidance. Colfax does not provide such outlook on a GAAP basis because changes in the items that Colfax excludes from GAAP to calculate these measures can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of Colfax’s routine operating activities. Additionally, management does not forecast
many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis. These excluded items could have a significant impact on the Company’s GAAP financial results.

CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS

This press release
includes
forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Colfax’s plans, objectives, expectations and intentions
, including the intended separation of Colfax’s
fabrication technology and specialty medical technology businesses (the “Separation”)
, and the timing, method and anticipated benefits of the Separation,
and other statements that are not historical or current fact. Forward-looking statements are based on Colfax’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Colfax’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the COVID-19 global pandemic, including actions by governments, businesses and individuals in response to the situation, such as the scope and duration of the outbreak, the nature and effectiveness of government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions, the impact on creditworthiness and financial viability of customers
;
risks relating to the Separation, including the final approval of the Separation by Colfax’s board of directors, the uncertainty of obtaining regulatory approvals, including rulings from the Internal Revenue Service, if sought, Colfax’s ability to satisfactorily complete steps necessary for the Separation and related transactions to be generally tax-free for U.S. federal income tax purposes, the ability to satisfy the necessary conditions to complete the Separation on a timely basis, or at all, the ability to realize the anticipated benefits of the Separation, developments related to the impact of the COVID-19 pandemic on the Separation, and the financial and operating performance of each company following the Separation;
other impacts on Colfax’s business and ability to execute business continuity plans
;
and the other factors detailed in Colfax’s reports filed with the U.S. Securities and Exchange Commission (
the “
SEC
”
), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption “Risk Factors,” as well as the other risks discussed in Colfax’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. Colfax disclaims any duty to update the information herein.

The term “Colfax”
in reference to
the activities described in this press release may mean one or more of Colfax’s global operating subsidiaries and/or their internal business divisions and does not necessarily indicate activities engaged in by Colfax Corporation.

Contact:

Mike Macek
Vice President, Finance
Colfax Corporation
+1-302-252-9129
[email protected]

Colfax Corporation

Consolidated Statements of Operations

Dollars in thousands, except per share data

(Unaudited)

	Three Months Ended
	April 2, 2021					April 3, 2020
Net sales	$	879,211				$	816,356
Cost of sales	508,134					468,142
Gross profit	371,077					348,214
Selling, general and administrative expense	305,724					292,197
Restructuring and other related charges	4,046					9,180
Operating income	61,307					46,837
Interest expense, net	25,660					24,796
Income from continuing operations before income taxes	35,647					22,041
Income tax expense	7,917					13,173
Net income from continuing operations	27,730					8,868
Loss from discontinued operations, net of taxes	(7,490)					(3,360)
Net income	20,240					5,508
Less: income attributable to noncontrolling interest, net of taxes	1,166					1,027
Net income attributable to Colfax Corporation	$	19,074				$	4,481
Net income (loss) per share – basic
Continuing operations	$	0.19				$	0.06
Discontinued operations	$	(0.05)				$	(0.02)
Consolidated operations	$	0.14				$	0.03
Net income (loss) per share – diluted
Continuing operations	$	0.19				$	0.06
Discontinued operations	$	(0.05)				$	(0.02)
Consolidated operations	$	0.13				$	0.03

Colfax Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

Dollars in millions, except per share data

(Unaudited)

	Three Months Ended
	April 2, 2021					April 3, 2020
Adjusted Net Income and Adjusted Net Income Per Share
Net income from continuing operations attributable to Colfax Corporation (1) (GAAP)	$	26.6				$	7.8
Restructuring and other related charges – pretax (2)	4.0					11.0
MDR and other costs – pretax (3)	1.8					0.9
Acquisition-related amortization and other non-cash charges – pretax (4)	38.5					35.8
Strategic transaction costs – pretax (5)	1.4					0.9
Tax adjustment (6)	(10.0)					(2.6)
Adjusted net income from continuing operations (non-GAAP)	$	62.3				$	53.9
Adjusted net income margin from continuing operations	7.1			%		6.6			%
Weighted-average shares outstanding – diluted (in millions)	141.8					141.5
Adjusted net income per share – diluted from continuing operations (non-GAAP)	$	0.44				$	0.38
Net income per share – diluted from continuing operations (GAAP)	$	0.19				$	0.06

<sup>__________

(1)</sup> Net income from continuing operations attributable to Colfax Corporation for the respective periods is calculated using Net income from continuing operations less the income attributable to noncontrolling interest, net of taxes, of $1.2 million and $1.0 million for the three months ended April 2, 2021 and April 3, 2020, respectively.
⁽²⁾ Restructuring and other related charges includes $1.8 million of expense classified as Cost of sales on our Condensed Consolidated Statements of Operations for the three months ended April 3, 2020, only.
⁽³⁾ Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union Medical Device Regulation of 2017.
⁽⁴⁾ Includes amortization of acquired intangibles and fair value charges on acquired inventory.
⁽⁵⁾ For the three months ended April 2, 2021, Strategic transaction costs includes costs related to the proposed separation of our fabrication technology and medical technology businesses. For the three months ended April 3, 2020, Strategic transaction costs includes costs incurred for the acquisition of DJO.
⁽⁶⁾ The effective tax rates used to calculate adjusted net income and adjusted net income per share were 22.0% for the three months ended April 2, 2021 and 22.3% for the three months ended April 3, 2020, respectively.

Colfax Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

Dollars in millions

(Unaudited)

	Three Months Ended
	April 2, 2021				April 3, 2020
	(Dollars in millions)
Net income from continuing operations (GAAP)	$	27.7			$	8.9
Income tax expense	7.9				13.2
Interest expense, net	25.7				24.8
Restructuring and other related charges(1)	4.0				11.0
MDR and other costs(2)	1.8				0.9
Strategic transaction costs(3)	1.4				0.9
Acquisition-related amortization and other non-cash charges(4)	38.5				35.8
Adjusted EBITA (non-GAAP)	$	107.1			$	95.5
Net income margin from continuing operations (GAAP)	3.2		%		1.1		%
Adjusted EBITA margin (non-GAAP)	12.2		%		11.7		%

<sup>__________

(1)</sup> Restructuring and other related charges includes $1.8 million of expense classified as Cost of sales on the Company’s Condensed Consolidated Statements of Operations for the three months ended April 3, 2020, only.
⁽²⁾ Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union Medical Device Regulation of 2017.
⁽³⁾ For the three months ended April 2, 2021, Strategic transaction costs includes costs related to the proposed separation of our fabrication technology and medical technology businesses. For the three months ended April 3, 2020, Strategic transaction costs includes costs incurred for the acquisition of DJO.
⁽⁴⁾ Includes amortization of acquired intangibles and fair value charges on acquired inventory.

Colfax Corporation

Reconciliation of GAAP to non-GAAP Financial Measures

Change in Sales

Dollars in millions

(Unaudited)

	Net Sales
	Fabrication Technology							Medical Technology									Total Colfax
	$				%			$					%				$				%
For the three months ended April 3, 2020	$	525.5						$	290.8								$	816.4
Components of Change:
Existing businesses(1)	34.8				6.6	%		(0.5)					(0.2)		%		34.3				4.2	%
Acquisitions(2)	0.4				0.1	%		14.0					4.8		%		14.4				1.8	%
Foreign currency translation(3)	7.4				1.4	%		6.8					2.3		%		14.2				1.7	%
	42.6				8.1	%		20.3					7.0		%		62.9				7.7	%
For the three months ended April 2, 2021	$	568.1						$	311.1								$	879.2

                                  
⁽¹⁾ Excludes the impact of foreign exchange rate fluctuations and acquisitions, thus providing a measure of change due to factors such as price, product mix and volume.
⁽²⁾ Represents the incremental sales from acquisitions closed subsequent to the first quarter of 2020.
⁽³⁾ Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

Colfax Corporation

Consolidated Balance Sheets

Dollars in thousands, except share amounts

(Unaudited)

	April 2, 2021					December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	763,653				$	97,068
Trade receivables, less allowance for credit losses of $35,560 and $37,666	553,785					517,006
Inventories, net	606,208					564,822
Prepaid expenses	75,205					69,515
Other current assets	79,114					113,418
Total current assets	2,077,965					1,361,829
Property, plant and equipment, net	479,240					486,960
Goodwill	3,331,531					3,314,541
Intangible assets, net	1,652,957					1,663,446
Lease asset – right of use	170,620					173,942
Other assets	354,301					350,831
Total assets	$	8,066,614				$	7,351,549
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	727,369				$	27,074
Accounts payable	406,744					330,251
Accrued liabilities	424,298					454,333
Total current liabilities	1,558,411					811,658
Long-term debt, less current portion	1,481,997					2,204,169
Non-current lease liability	137,329					139,230
Other liabilities	597,808					608,618
Total liabilities	3,775,545					3,763,675
Equity:
Common stock, $0.001 par value; 400,000,000 shares authorized; 135,597,331 and 118,496,687 issued and outstanding as of April 2, 2021 and December 31, 2020, respectively	135					118
Additional paid-in capital	4,201,745					3,478,008
Retained earnings	536,441					517,367
Accumulated other comprehensive loss	(491,727)					(452,106)
Total Colfax Corporation equity	4,246,594					3,543,387
Noncontrolling interest	44,475					44,487
Total equity	4,291,069					3,587,874
Total liabilities and equity	$	8,066,614				$	7,351,549

Colfax Corporation

Consolidated Statements of Cash Flows

Dollars in thousands

(Unaudited)

	Three Months Ended
	April 2, 2021					April 3, 2020
Cash flows from operating activities:
Net income	$	20,240				$	5,508
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other impairment charges	62,785					58,336
Stock-based compensation expense	7,807					6,124
Non-cash interest expense	1,537					1,311
Deferred income tax benefit	(3,614)					(567)
Loss on sale of property, plant and equipment	257					976
Changes in operating assets and liabilities:
Trade receivables, net	(39,950)					29,445
Inventories, net	(32,743)					(16,431)
Accounts payable	83,442					30,592
Other operating assets and liabilities	(15,379)					(59,065)
Net cash provided by operating activities	84,382					56,229
Cash flows from investing activities:
Purchases of property, plant and equipment	(24,537)					(31,113)
Proceeds from sale of property, plant and equipment	—					1,688
Acquisitions, net of cash received, and investments	(103,475)					(7,830)
Net cash used in investing activities	(128,012)					(37,255)
Cash flows from financing activities:
Proceeds from borrowings on revolving credit facilities and other	179,367					608,673
Repayments of borrowings on revolving credit facilities and other	(185,643)					(364,403)
Proceeds from issuance of common stock, net	716,632					2,220
Deferred consideration payments and other	(2,704)					(1,353)
Net cash provided by financing activities	707,652					245,137
Effect of foreign exchange rates on Cash and cash equivalents and Restricted cash	(1,438)					(8,139)
Increase in Cash and cash equivalents and Restricted cash	662,584					255,972
Cash and cash equivalents and Restricted Cash, beginning of period	101,069					109,632
Cash and cash equivalents, end of period	$	763,653				$	365,604