Market Newsdesk

April 29, 2021 6:03 am

Avolon 2021 First Quarter Results

Avolon 2021 First Quarter Results

Avolon ends Q1 with over $7 billion of available liquidity

DUBLIN–(BUSINESS WIRE)–
Avolon, the international aircraft leasing company, announces results for the first quarter (‘Q1’) of 2021.

2021 FIRST QUARTER | FINANCIAL HIGHLIGHTS


US$ MILLION	Q1 2021	Q1 2020	CHANGE
Lease Revenue	470	644	(174)
Net (Loss)/Income	(83)	141	(224)
Total Available Liquidity	7,057	5,539	1,518
Total Assets	31,099	32,266	(1,167)
Secured Debt / Total Assets	23%	22%	1%
Net Debt to Equity	2.4x	2.3x	0.1x

– Delivered $470 million of lease revenue during the quarter and generated over $117 million of net cash from operating activities in the quarter;

– Ended the quarter with total available liquidity of approximately $7.1 billion, including $2.2 billion of unrestricted cash and $4.8 billion of undrawn debt facilities;

– Raised $1.5 billion of senior unsecured notes at historically low coupon rates of 2.125% and 2.75% for 2026 and 2028 maturities respectively; and,

– Ended the quarter with a secured debt to total assets ratio of 23%, and $17.4 billion of unencumbered assets.

2021 FIRST QUARTER | OPERATING HIGHLIGHTS

– Owned and managed fleet of 578 aircraft at end of Q1, with total orders and commitments for 262 fuel-efficient, new technology aircraft;

– Average owned fleet age of 5.4 years with an average remaining lease term of 6.7 years;

– Executed a total of 31 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions;

– Entered into Letters of Intent for the placement of 27 owned aircraft;

– Delivered a total of 8 new aircraft to 6 customers and transitioned 3 aircraft to follow-on lessees;

– Agreed an option to defer 34 single aisle and 3 twin aisle orderbook commitments from the 2022/23 period to 2025 and beyond; and,

– Total of 146 airline customers operating in 61 countries.

Dómhnal Slattery, Avolon CEO, commented: “While the recovery continues to be uneven,the worst effects of the pandemic on aviation are behind us. As we move towards summer it is clear that the recovery of the sector is firmly underway across the globe. We are seeing definitive signs that demand is increasing in the US and Chinese domestic markets – the two largest domestic markets in the world – with air traffic numbers in those markets projected to reach pre-pandemic levels over the coming months.

The increase in domestic air travel demand and rollout of vaccine programs across the globe will continue to fuel the recovery. As we move into the second half of this year, we expect a material uptick in air travel in domestic markets, followed by intra-regional recovery, with the sector to experience a more substantial global recovery from 2022 onwards.

As the recovery takes hold there will be more growth opportunities in the market. Avolon’s strong liquidity position, coupled with our low leverage and minimal near-term debt maturities, means we are well placed to take advantage of such opportunities.”

ENDS

About Avolon

Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is the world’s third largest aircraft leasing business with an owned, managed and committed fleet, as of 31 March 2021 of 840 aircraft.

Website: www.avolon.aero

Twitter: @avolon_aero

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005497/en/

Ross O’Connor

Head of Capital Markets

[email protected]

T: +353 1 231 5818

Emmet Moloney

Head of Communication

[email protected]

T: +353 1 556 4429

Jonathan Neilan

FTI Consulting

[email protected]

M: +353 86 231 4135

KEYWORDS: Ireland Europe

INDUSTRY KEYWORDS: Professional Services Air Transport Transportation Finance Travel

MEDIA:

Posted on April 29, 2021 6:03 am
Xcel Energy First Quarter 2021 Earnings Report

Xcel Energy First Quarter 2021 Earnings Report

GAAP 2021 first quarter EPS was $0.67 compared with $0.56 in 2020.

Xcel Energy reaffirms 2021 EPS earnings guidance of $2.90 to $3.00.

MINNEAPOLIS–(BUSINESS WIRE)–
Xcel Energy Inc. (NASDAQ: XEL) today reported 2021 first quarter GAAP and ongoing earnings of $362 million, or $0.67 per share, compared with $295 million, or $0.56 per share in the same period in 2020.

Earnings reflect higher electric and natural gas margins, which more than offset additional depreciation, interest charges and less allowance for funds used during construction (AFUDC).

“Xcel Energy had a strong first quarter and we are reaffirming our expectation to deliver earnings within our annual guidance range,” said Ben Fowke, chairman and CEO. “We are also pleased to have achieved a significant milestone, reducing carbon emission 51% from 2005 levels, bringing us more than halfway to our vision of delivering 100% carbon-free electricity to our customers by 2050.”

“We recently proposed significant measures in Colorado that will transform the energy landscape and help the state continue its clean energy leadership. Our Colorado Clean Energy Plan adds more than 5,000 megawatts of renewable energy and accelerates the retirement of our coal plants. The plan will reduce carbon emissions 85% in Colorado and increase renewable energy to nearly 80% by 2030. To support this ambitious plan, we also proposed a significant transmission expansion that would add 560 miles of new lines to deliver renewable energy.”

At 9:00 a.m. CDT today, Xcel Energy will host a conference call to review financial results. To participate in the call, please dial in 5 to 10 minutes prior to the start and follow the operator’s instructions.

US Dial-In:

(888) 394-8218

International Dial-In:

(400) 120-9101

Conference ID:

7731118

The conference call also will be simultaneously broadcast and archived on Xcel Energy’s website at www.xcelenergy.com. To access the presentation, click on Investor Relations. If you are unable to participate in the live event, the call will be available for replay from 12:00 p.m. CDT on April 29 through 12:00 p.m. CDT on May 2.

Replay Numbers

US Dial-In:

(888) 203-1112

International Dial-In:

(719) 457-0820

Access Code:

7731118

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2021 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, and expected impact on our results of operations, financial condition and cash flows of resettlement calculations and credit losses relating to certain energy transactions, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety, including our nuclear generation facilities; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs, changes in regulation and subsidiaries’ ability to recover costs from customers; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

This information is not given in connection with any

sale, offer for sale or offer to buy any security.

XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in millions, except per share data)

Three Months Ended March 31

2021

2020

Operating revenues

Electric

$

2,870

$

2,203

Natural gas

647

583

Other

24

25

Total operating revenues

3,541

2,811

Operating expenses

Electric fuel and purchased power

1,386

797

Cost of natural gas sold and transported

299

285

Cost of sales — other

8

9

Operating and maintenance expenses

584

579

Conservation and demand side management expenses

73

74

Depreciation and amortization

521

463

Taxes (other than income taxes)

163

149

Total operating expenses

3,034

2,356

Operating income

507

455

Other income (expense), net

5

(11

)

Equity earnings of unconsolidated subsidiaries

14

11

Allowance for funds used during construction — equity

14

23

Interest charges and financing costs

Interest charges — includes other financing costs of $7 and $7, respectively

205

199

Allowance for funds used during construction — debt

(5

)

(10

)

Total interest charges and financing costs

200

189

Income before income taxes

340

289

Income tax benefit

(22

)

(6

)

Net income

$

362

$

295

Weighted average common shares outstanding:

Basic

538

526

Diluted

539

527

Earnings per average common share:

Basic

$

0.67

$

0.56

Diluted

0.67

0.56

XCEL ENERGY INC. AND SUBSIDIARIES

Notes to Investor Relations Earnings Release (Unaudited)

Due to the seasonality of Xcel Energy’s operating results, quarterly financial results are not an appropriate base from which to project annual results.

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with generally accepted accounting principles (GAAP), as well as certain non-GAAP financial measures such as ongoing return on equity (ROE), electric margin, natural gas margin, ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are adjusted from measures calculated and presented in accordance with GAAP. Xcel Energy’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Ongoing ROE

Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity. We use these non-GAAP financial measures to evaluate and provide details of earnings results.

Electric and Natural Gas Margins

Electric margin is presented as electric revenues less electric fuel and purchased power expenses. Natural gas margin is presented as natural gas revenues less the cost of natural gas sold and transported. Expenses incurred for electric fuel and purchased power and the cost of natural gas are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues. Management believes electric and natural gas margins provide the most meaningful basis for evaluating our operations because they exclude the revenue impact of fluctuations in these expenses. These margins can be reconciled to operating income, a GAAP measure, by including other operating revenues, cost of sales – other, operating and maintenance (O&M) expenses, conservation and demand side management (DSM) expenses, depreciation and amortization and taxes (other than income taxes).

Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS)

GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.’s diluted EPS is calculated using the treasury stock method. Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items. Ongoing diluted EPS is calculated by dividing the net income or loss of each subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss of such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period.

We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. For the three months ended March 31, 2021 and 2020, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings for these periods.

Note 1. Earnings Per Share Summary

Xcel Energy’s 2021 first quarter earnings were $0.67 per share compared to $0.56 per share in 2020, primarily reflecting higher electric and natural gas margins (driven by capital investment recovery and regulatory outcomes), which more than offset additional depreciation, interest charges, less AFUDC and declining sales primarily due to the impacts of COVID-19. First quarter earnings also reflect margin from proprietary commodity trading transactions, primarily entered into under Xcel Energy’s ordinary practices prior to the weather event. See Note 5 for further discussion.

Summarized diluted EPS for Xcel Energy:

Three Months Ended March 31

Diluted Earnings (Loss) Per Share

2021

2020

PSCo

$

0.31

$

0.24

NSP-Minnesota

0.24

0.20

SPS

0.11

0.08

NSP-Wisconsin

0.06

0.06

Equity earnings of unconsolidated subsidiaries

0.01

0.01

Regulated utility ^(a)

0.73

0.60

Xcel Energy Inc. and Other

(0.06

)

(0.04

)

Total ^(a)

$

0.67

$

0.56

^(a)Amounts may not add due to rounding.

PSCo — Earnings increased $0.07 per share for the first quarter of 2021, reflecting higher natural gas and electric margins (primarily capital investment recovery and regulatory outcomes), partially offset by additional depreciation and taxes (other than income taxes).

NSP-Minnesota — Earnings increased $0.04 per share for the first quarter of 2021, reflecting higher electric margin (primarily capital investment recovery), partially offset by increased depreciation.

SPS — Earnings increased $0.03 per share for the first quarter of 2021, reflecting higher electric margin (regulatory outcomes in Texas and New Mexico), partially offset by increased depreciation.

NSP-Wisconsin — Earnings were flat for the first quarter of 2021.

Xcel Energy Inc. and Other — Primarily includes financing costs at the holding company.

Components significantly contributing to changes in 2021 EPS compared to 2020:

Diluted Earnings (Loss) Per Share

Three Months

Ended March 31

GAAP and ongoing diluted EPS – 2020

$

0.56

Components of change – 2021 vs. 2020

Higher electric margin

0.11

Higher natural gas margins

0.07

Lower ETR^(a)

0.06

Higher other income (expense), net

0.02

Higher depreciation and amortization

(0.08

)

Lower AFUDC

(0.02

)

Higher interest charges

(0.01

)

Higher O&M

(0.01

)

Other, net

(0.03

)

GAAP and ongoing diluted EPS – 2021

$

0.67

^(a) Includes production tax credits (PTCs) and plant regulatory amounts, which are primarily offset in electric margin.

Note 2. Regulated Utility Results

Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance.

Degree-day or Temperature-Humidity Index (THI) data is used to estimate amounts of energy required to maintain comfortable indoor temperature levels based on each day’s average temperature and humidity. Heating degree-days (HDD) is the measure of the variation in the weather based on the extent to which the average daily temperature falls below 65° Fahrenheit. Cooling degree-days (CDD) is the measure of the variation in the weather based on the extent to which the average daily temperature rises above 65° Fahrenheit. Each degree of temperature above 65° Fahrenheit is counted as one CDD, and each degree of temperature below 65° Fahrenheit is counted as one HDD. In Xcel Energy’s more humid service territories, a THI is used in place of CDD, which adds a humidity factor to CDD. HDD, CDD and THI are most likely to impact the usage of Xcel Energy’s residential and commercial customers. Industrial customers are less sensitive to weather. Typically, sales are not impacted in the first or fourth quarter due to THI or CDD.

Normal weather conditions are defined as either the 10, 20 or 30-year average of actual historical weather conditions. The historical period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact of weather on demand, a demand factor is applied to the weather impact on sales. Extreme weather variations, windchill and cloud cover may not be reflected in weather-normalized estimates.

Percentage increase (decrease) in normal and actual HDD:

Three Months Ended March 31

2021 vs.

Normal

2020 vs.

Normal

2021 vs. 2020

HDD

1.3

%

(5.5)

%

6.5

%

Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions:

Three Months Ended March 31

2021 vs.

Normal

2020 vs.

Normal

2021 vs. 2020

Retail electric

$

—

$

(0.011

)

$

0.011

Decoupling and sales true-up

0.002

0.006

(0.004

)

Electric total

$

0.002

$

(0.005

)

$

0.007

Firm natural gas

0.003

(0.007

)

0.010

Total

$

0.005

$

(0.012

)

$

0.017

Sales — Sales growth (decline) for actual and weather-normalized sales in 2021 compared to 2020:

Three Months Ended March 31

PSCo

NSP-Minnesota

SPS

NSP-Wisconsin

Xcel Energy

Actual ^(a)

Electric residential

6.3

%

5.1

%

8.8

%

4.7

%

6.0

%

Electric C&I

(4.8

)

(6.6

)

(7.1

)

(1.8

)

(5.8

)

Total retail electric sales

(1.0

)

(2.9

)

(4.3

)

0.2

(2.4

)

Firm natural gas sales

4.7

0.5

N/A

0.8

3.1

Three Months Ended March 31

PSCo

NSP-Minnesota

SPS

NSP-Wisconsin

Xcel Energy

Weather-Normalized ^(a)

Electric residential

4.9

%

4.5

%

3.8

%

2.9

%

4.4

%

Electric C&I

(5.1

)

(6.7

)

(7.3

)

(1.9

)

(6.0

)

Total retail electric sales

(1.7

)

(3.1

)

(5.4

)

(0.4

)

(3.0

)

Firm natural gas sales

(0.9

)

(1.3

)

N/A

(2.7

)

(1.2

)

Three Months Ended March 31 (2020 Leap Year Adjusted)

PSCo

NSP-Minnesota

SPS

NSP-Wisconsin

Xcel Energy

Weather-Normalized ^(a)

Electric residential

6.1

%

5.7

%

5.0

%

4.0

%

5.6

%

Electric C&I

(4.1

)

(5.6

)

(6.3

)

(0.8

)

(5.0

)

Total retail electric sales

(0.6

)

(2.0

)

(4.3

)

0.7

(1.9

)

Firm natural gas sales

0.2

(0.2

)

N/A

(1.5

)

—

^(a) Higher residential sales and lower commercial and industrial (C&I) sales were primarily attributable to COVID-19.

Weather-normalized and leap-year adjusted electric sales growth (decline) — year-to-date (excluding leap day)

Each of our utility subsidiaries experienced higher residential sales and lower C&I sales as a result of COVID-19 beginning in March 2020. In addition, the following items impacted sales:

PSCo — Residential sales rose based on an increased number of customers and higher use per customer. The decline in C&I sales was primarily due to decreases in the manufacturing and service industries, partially offset by an increase in the energy sector.

NSP-Minnesota — Residential sales growth reflects higher use per customer and increased customer additions. The decline in C&I sales was primarily due to decreases within the manufacturing and service sectors.

SPS — Residential sales increased due to customer growth and higher use per customer. The decline in C&I sales was driven by decreases within the energy and manufacturing sectors.

NSP-Wisconsin — Residential sales growth was attributable to customer additions and higher use per customer. The decline in C&I sales was largely related to decreases in the energy and manufacturing industries, partially offset by an increase in the service sector.

Weather-normalized and leap-year adjusted natural gas sales growth (decline) — year-to-date (excluding leap day)

Natural gas sales primarily reflect lower customer use, offset by an increase in the number of customers.

Electric Margin — Electric revenues and fuel and purchased power expenses are impacted by fluctuations in the price of natural gas, coal and uranium. However, these price fluctuations have minimal impact on electric margin due to fuel recovery mechanisms that recover fuel expenses. In addition, electric customers receive a credit for PTCs generated, which reduced electric revenue and margin. See Note 5 for discussion on the impact of Winter Storm Uri.

Electric revenues and margin:

Three Months Ended March 31

(Millions of Dollars)

2021

2020

Electric revenues

$

2,870

$

2,203

Electric fuel and purchased power

(1,386

)

(797

)

Electric margin

$

1,484

$

1,406

Changes in electric margin:

(Millions of Dollars)

Three Months

Ended March 31,

2021 vs. 2020

Non-fuel riders

$

44

Regulatory rate outcomes (Colorado, Texas, New Mexico, Wisconsin and North Dakota)

44

Proprietary commodity trading, net of sharing (see Note 5)

27

Wholesale transmission revenue (net)

11

Estimated impact of weather (net of decoupling/sales true-up)

5

PTCs flowed back to customers (offset by lower ETR)

(37

)

Sales and demand^(a)

(14

)

Other (net)

(2

)

Total increase in electric margin

$

78

^(a) Sales excludes weather impact, net of decoupling/sales true-up, and demand is net of sales true-up.

Natural Gas Margin — Natural gas expense varies with changing sales and the cost of natural gas. However, fluctuations in the cost of natural gas has minimal impact on natural gas margin due to cost recovery mechanisms. See Note 5 for discussion on the impact of Winter Storm Uri.

Natural gas revenues and margin:

Three Months Ended March 31

(Millions of Dollars)

2021

2020

Natural gas revenues

$

647

$

583

Cost of natural gas sold and transported

(299

)

(285

)

Natural gas margin

$

348

$

298

Changes in natural gas margin:

(Millions of Dollars)

Three Months

Ended March 31,

2021 vs. 2020

Regulatory rate outcomes (Colorado)

$

40

Estimated impact of weather

7

Other (net)

3

Total increase in natural gas margin

$

50

O&M Expenses — O&M expenses increased $5 million, or 0.9%, for the first quarter of 2021. The increase was primarily due to expenses associated with new wind farms, software and infrastructure costs, compensation, damage prevention and storms, partially offset by continuous improvement initiatives.

Depreciation and Amortization — Depreciation and amortization increased $58 million, or 12.5%, for the first quarter of 2021. The increase was primarily driven by several wind farms going into service, as well as normal system expansion. In addition, 2021 depreciation expense increased as a result of implementation of new depreciation rates in Colorado, New Mexico and Texas.

Other Income (Expense) — Other income (expense) increased $16 million for the first quarter of 2021, largely related to rabbi trust performance primarily offset in O&M expenses (compensation).

AFUDC, Equity and Debt — AFUDC decreased $14 million for the first quarter of 2021. Decrease was driven by various wind projects placed into service.

Interest Charges — Interest charges increased $6 million, or 3.0%, for the first quarter of 2021. The increase was largely attributable to higher debt levels to fund capital investments, partially offset by lower long-term and short-term interest rates.

Income Taxes — Effective income tax rate:

Three Months Ended March 31

2021

2020

2021 vs 2020

Federal statutory rate

21.0

%

21.0

%

—

%

State tax (net of federal tax effect)

4.9

4.9

—

(Decreases) increases:

Wind PTCs

(24.6

)

(17.2

)

(7.4

)

Plant regulatory differences ^(a)

(6.1

)

(8.4

)

2.3

Other (net)

(1.7

)

(2.4

)

0.7

Effective income tax rate

(6.5

)%

(2.1

)%

(4.4

)%

^(a) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers. Income tax benefits associated with the credit of excess deferred credits are generally offset by corresponding revenue reductions.

Income tax benefit increased $16 million for the first quarter of 2021. The increase was primarily driven by an increase in wind PTCs due to additional wind facilities going into service. Wind PTCs are credited to customers (recorded as a reduction to revenue) and do not have a material impact on net income. Impact of wind PTCs was partially offset by higher pretax earnings in 2021.

Note 3. Capital Structure, Liquidity, Financing and Credit Ratings

Xcel Energy’s capital structure:

(Millions of Dollars)

March 31, 2021

Percentage of Total

Capitalization

Dec. 31, 2020

Percentage of Total

Capitalization

Current portion of long-term debt

$

21

—

%

$

421

1

%

Short-term debt

1,477

4

584

2

Long-term debt

21,470

57

19,645

56

Total debt

22,968

61

20,650

59

Common equity

14,700

39

14,575

41

Total capitalization

$

37,668

100

%

$

35,225

100

%

Liquidity —As of April 26, 2021, Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available to meet liquidity needs:

(Millions of Dollars)

Credit Facility ^(a)

Drawn ^(b)

Available

Cash

Liquidity

Xcel Energy Inc.

$

1,250

$

200

$

1,050

$

3

$

1,053

PSCo

700

8

692

144

836

NSP-Minnesota

500

10

490

518

1,008

SPS

500

2

498

43

541

NSP-Wisconsin

150

—

150

2

152

Total

$

3,100

$

220

$

2,880

$

710

$

3,590

Term Loan ^(c)

1,200

1,200

—

^(a)Expires June 2024.

^(b)Includes outstanding commercial paper and letters of credit.

^(c)Matures February 2022.

Term Loan Agreements — In February 2021, Xcel Energy Inc. entered into a $1.2 billion 364-Day Term Loan Agreement in order to enhance liquidity due to the incremental fuel costs from Winter Storm Uri and potential regulatory lag in recovery. See Note 5 for further discussion.

Bilateral Credit Agreement — In April 2021, NSP-Minnesota extended an uncommitted bilateral credit agreement of $75 million, which is limited in use to support letters of credit for one-year. NSP-Minnesota had $49 million of outstanding letters of credits as of March 31, 2021.

Credit Ratings — Access to the capital markets at reasonable terms is partially dependent on credit ratings. The following ratings reflect the views of Moody’s, S&P Global Ratings and Fitch. The highest credit rating for debt is Aaa/AAA and the lowest investment grade rating is Baa3/BBB-. The highest rating for commercial paper is P-1/A-1/F-1 and the lowest rating is P-3/A-3/F-3. A security rating is not a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time by the credit rating agency and each rating should be evaluated independently of any other rating.

Credit ratings assigned to Xcel Energy Inc. and its utility subsidiaries as of April 26, 2021:

Credit Type

Company

Moody’s

S&P Global Ratings

Fitch

Senior Unsecured Debt

Xcel Energy Inc.

Baa1

BBB+

BBB+

Senior Secured Debt

NSP-Minnesota

Aa3

A

A+

NSP-Wisconsin

Aa3

A

A+

PSCo

A1

A

A+

SPS

A3

A

A-

Commercial Paper

Xcel Energy Inc.

P-2

A-2

F2

NSP-Minnesota

P-1

A-2

F2

NSP-Wisconsin

P-1

A-2

F2

PSCo

P-2

A-2

F2

SPS

P-2

A-2

F2

2021 Financing Activity — During 2021, Xcel Energy plans to issue approximately $75 to $80 million of equity through the DRIP and benefit programs. In addition, Xcel Energy Inc. and its utility subsidiaries issued or anticipate issuing the following:

Issuer

Security

Amount

Status

Tenor

Coupon

PSCo

First Mortgage Bonds

$

750

Completed

10 Year

1.875

%

SPS

First Mortgage Bonds

250

Completed

29 Year

3.15

NSP-Minnesota

First Mortgage Bonds

425

Completed

10 Year

2.25

NSP-Minnesota

First Mortgage Bonds

425

Completed

31 Year

3.20

NSP-Wisconsin

First Mortgage Bonds

125

Planned – Q2

N/A

N/A

Financing plans are subject to change, depending on capital expenditures, regulatory outcomes, internal cash generation, market conditions and other factors.

Note 4. Rates and Regulation

NSP-Minnesota — Minnesota Relief and Recovery— Recent proposals include:

In February 2021, NSP-Minnesota proposed to acquire a 120 MW repowered wind farm from ALLETE for $210 million. A MPUC decision was requested by July 29, 2021.

In April 2021, NSP-Minnesota proposed to add 460 MW of solar facilities at the Sherco site with an incremental investment of $575 million. A MPUC decision is expected in the second half of 2021.

NSP-Minnesota — 2020 North Dakota Electric Rate Case — In November 2020 and revised in March 2021, NSP-Minnesota filed a rate case with the North Dakota Public Service Commission (NDPSC). NSP-Minnesota is requesting an increase in annual retail electric revenues of approximately $19 million. The rate filing is based on a 2021 forecast test year, a requested ROE of 10.2%, an equity ratio of 52.5% and an electric rate base of approximately $677 million. Interim rates, subject to refund, of approximately $16 million were implemented in January 2021 and subsequently revised to $13 million, effective April 1, 2021.

PSCo — Wildfire Protection Rider — In 2020, PSCo requested to establish a rider to recover incremental costs associated with system investments to reduce wildfire risk, projected to be approximately $325 million from 2021 through 2025. In February 2021, the administrative law judge (ALJ) issued a recommended decision approving the wildfire mitigation program as it was in the public’s interest, but denied PSCo’s rider request in favor of deferred accounting with ultimate recovery in a future rate case. In April 2021, the CPUC accepted the ALJ’s recommended decision.

Forecasted annual revenue requirements from 2021 through 2025:

(Millions of Dollars)

2021

2022

2023

2024

2025

Forecasted annual revenue requirement

$

17

$

24

$

29

$

32

$

34

PSCo — Pipeline System Integrity Adjustment (PSIA) Rider Extension— In February 2021, PSCo requested to extend its PSIA rider for three years (through the end of 2024). The extension is intended to allow for a wind down of the rider and transition of recovery of the projects included in the rider to base rates in 2025. A CPUC decision is expected in the fourth quarter of 2021.

PSCo — Colorado’s Power Pathway Transmission Expansion —In March 2021, PSCo filed for a Certificate of Public Convenience and Necessity for the Power Pathway transmission project. Xcel Energy proposed a 560-mile, 345 kV double circuit transmission network to enable 5,500 MW of renewable generation in eastern Colorado with an estimated cost of approximately $1.7 billion. PSCo also presented an extension of the Power Pathway project into southeast Colorado, referred to as the May Valley – Longhorn Extension ($0.3 billion). PSCo expects future filings for related network upgrades, voltage support and interconnection facilities, which with the May Valley – Longhorn Extension, could result in an incremental investment of $0.5 – $1 billion. A CPUC decision regarding the Power Pathway project, as well as the May Valley – Longhorn Extension, is expected in late 2021.

PSCo — Electric Resource Plan —In March 2021, PSCo filed its 2021 Electric Resource Plan with the CPUC. The filing outlines the proposed future retirements/conversions of PSCo’s remaining coal plants and would result in an 80% renewable fuel mix and an 85% carbon emissions reduction target by 2030.

Major components of PSCo’s proposed preferred plan include:

Early retirement of Comanche Generating Station: Unit 3 in 2040 (currently 2070).

Early retirement of Hayden Generating Station: Unit 1 in 2028 (currently 2030); Unit 2 in 2027 (currently 2036).

Conversion of Pawnee Generating Station from coal to natural gas in 2028 with retirement in 2041.

2,300 megawatts of wind power.

1,600 megawatts of large-scale solar power.

400 megawatts of energy storage.

1,300 megawatts of flexible dispatchable resources (including natural gas).

1,200 megawatts of distributed generation solar resources.

The preferred plan proposes to create a regulatory asset to recover costs over their original depreciation lives for the Hayden power plant and the coal handling equipment at Pawnee. It also proposes the use of securitization to finance and recover the remaining book life and decommissioning costs for Comanche 3 upon retirement in 2040.

A CPUC decision on the resource plan is expected by the end of 2021 (Phase I) with the competitive solicitation for resource additions expected in 2022 (Phase II). Incremental generation system costs to meet carbon emission reduction targets are proposed to be recovered through a statutorily-authorized Clean Energy Plan Rider.

SPS — New Mexico 2021 Electric Rate Case — In January 2021, SPS filed an electric rate case with the New Mexico Public Regulation Commission (NMPRC) seeking an increase in base rates of approximately $88 million. SPS’ net rate increase to New Mexico customers is expected to be approximately $48 million, or 10%, as a result of offsetting fuel cost reductions and PTCs from the Sagamore wind project. PTCs are being credited to customers through the fuel clause.

The request is based on a historic test year ended Sept. 30, 2020, including expected capital additions through Feb. 28, 2021, a ROE of 10.35%, an equity ratio of 54.72% and a retail rate base of approximately $1.9 billion.

The request includes the effect of approximately 400 MW of reduced peak load in 2021 from a wholesale transmission customer and changes to depreciation lives of SPS’ Tolk coal-fired power plant (from 2037 to 2032) and the coal handling assets at the Harrington facility (to 2024).

Procedural schedule expected to be as follows:

Staff and intervenor testimony — May 17, 2021.

Rebuttal testimony — June 9, 2021.

Deadline to file stipulation — June 23, 2021.

Public hearing or hearing on stipulation — July 26 – Aug. 6, 2021.

End of nine month suspension — Nov. 3, 2021.

A NMPRC decision and implementation of final rates is anticipated in the fourth quarter of 2021.

SPS — Texas 2021 Electric Rate Case — In February 2021, SPS filed an electric rate case with the Public Utilities Commission of Texas (PUCT) and its municipalities with original rate jurisdiction seeking an increase in base rates of approximately $143 million. SPS’ net rate increase to Texas customers is expected to be approximately $74 million, or 9.2%, as a result of offsetting $69 million in fuel cost reductions and PTCs from the Sagamore wind project.

The request is based on an ROE of 10.35%, an equity ratio of 54.60% (based on actual capital structure), a Texas retail rate base of approximately $3.3 billion and a historic test year based on the 12-month period ended Dec. 31, 2020.

The request includes the effect of losing approximately 400 MW from a wholesale transmission customer and changes to depreciation lives of SPS’ Tolk power plant (from 2037 to 2032) and the coal handling assets of the Harrington facility (to 2024).

Procedural schedule expected to be as follows:

Intervenor testimony — Aug. 13, 2021.

Staff testimony — Aug. 20, 2021.

Rebuttal testimony — Sept. 15, 2021.

Public hearing — Oct. 18 – Oct. 28, 2021.

Once final rates are approved, a surcharge will be requested from March 15, 2021 through the effective date of new base rates. A PUCT decision is expected in the first quarter of 2022.

Note 5. Winter Storm Uri

In mid-February 2021, the central portion of the United States experienced a major winter storm (Winter Storm Uri). Extreme cold temperatures impacted certain operational assets as well as the availability of renewable generation across the region. The cold weather also affected the country’s supply and demand for natural gas. These factors contributed to extremely high market prices for natural gas and electricity. In addition, NSP-Minnesota’s three peak shaving plants, which are used to ensure system reliability under Design Day conditions, have been unavailable since early 2021 due to required repairs to address safety concerns with the units. Despite the extreme conditions, Xcel Energy’s customers experienced minimal disruptions as a result of preemptive infrastructure investments and the response of our employees.

As a result of the extremely high market prices, Xcel Energy incurred net natural gas, fuel and purchased energy costs of approximately $965 million (largely deferred as regulatory assets). The utility subsidiaries mitigated the customer impact by approximately $190 million primarily through sales of excess generation.

The estimated net impact was as follows:

(in millions)

Natural Gas

for Distribution

Natural Gas

for Electric

Generation

Other

Electric

Generation

Subtotal

Costs

Net Market

Settlements ^(a)

Total

Impact

NSP-Minnesota

$

250

$

5

$

15

$

270

$

(40

)

$

230

NSP- Wisconsin

45

—

—

45

—

45

PSCo

305

315

5

625

(15

)

610

SPS

—

200

15

215

(135

)

80

Total

$

600

$

520

$

35

$

1,155

$

(190

)

$

965

^(a) Net market settlements includes purchases of energy and other charges to serve our customers as well as sales of energy facilitated through Independent System Operators (ISOs) or bilateral transactions, each subject to mechanisms for recovery and sharing with our customers.

In addition, higher market prices resulted in $27 million of net gains (after customer sharing) related to proprietary commodity trading. These transactions were primarily entered into under Xcel Energy’s ordinary trading practices prior to Winter Storm Uri.

Certain energy transactions are subject to final ISO re-settlement calculations and the impacts of credit losses shared among market participants. Such adjustments are not expected to be material to our results of operations, financial condition or cash flows.

Regulatory Overview —Xcel Energy has natural gas, fuel and purchased energy mechanisms in each jurisdiction for the purpose of recovering incurred costs. However, the utility subsidiaries have deferred February cost increases for future recovery and are proposing to recover the cost increases over a period of up to two years in order to significantly mitigate the impact to customer bills. Additionally, we are not requesting recovery of associated financing costs in order to further limit the impact to our customers. The following proceedings have been initiated:

Utility Subsidiary

Jurisdiction

Regulatory Status

NSP-Minnesota

Minnesota

NSP-Minnesota has filed its report with the MPUC detailing its preparedness and actions during the storm and proposing recovery of incremental costs from natural gas customers over 24 months with no financing charge. Comments are due in May 2021.

South Dakota

In April, NSP-Minnesota filed a letter with the South Dakota Public Utilities Commission noting that we were a net seller in the market, resulting in lower fuel clause costs.

North Dakota

NSP-Minnesota has filed its report with the NDPSC detailing its preparedness and actions during the storm and proposing recovery of incremental costs from natural gas customers over 24 months with no financing charge.

NSP-Wisconsin

Wisconsin

In March, the Public Service Commission of Wisconsin staff determined the natural gas costs incurred during the storm were prudent and approved NSP-Wisconsin’s proposal to recover these costs over a nine-month period through December 2021 with no financing charge.

Michigan

In March, NSP-Wisconsin filed testimony in the pending gas recovery plan proceeding to address $2 million of under-recovery associated with Winter Storm Uri.

PSCo

Colorado

PSCo filed an initial response with the CPUC in March. In May 2021, PSCo intends to file a plan to recover the weather-related costs over 24 months with no financing charge.

SPS

Texas

SPS intends to file for a surcharge in the second quarter to recover fuel costs over 24 months with no financing charge. Prudence of fuel costs will be subject to review in SPS’ upcoming fuel reconciliation case.

New Mexico

The NMPRC approved SPS’ requested fuel mechanism variance to permit recovery over 24 months with no financing charge (subject to NMPRC review).

To enhance liquidity and for the ability to propose recovering the increased fuel costs over a longer time period (i.e., mitigate customer bill impacts), Xcel Energy Inc. entered into a $1.2 billion 364-Day Term Loan Agreement and increased the size of its previously planned debt issuances at the utility subsidiaries.

Note 6. Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives

Xcel Energy 2021 Earnings Guidance — Xcel Energy’s 2021 GAAP and ongoing earnings guidance is a range of $2.90 to $3.00 per share.^(a)

Key assumptions as compared with 2020 levels unless noted:

Constructive outcomes in all rate case and regulatory proceedings.

Modest impacts from COVID-19.

Normal weather patterns for the remainder of the year.

Weather-normalized retail electric sales are projected to increase ~1%.

Weather-normalized retail firm natural gas sales are projected to be relatively flat.

Capital rider revenue is projected to increase $100 million to $110 million (net of PTCs). PTCs are credited to customers, through capital riders, fuel clause or base rates and results in a reduction to electric margin.

O&M expenses are projected to be relatively flat.

Depreciation expense is projected to increase approximately $155 million to $165 million. The change in depreciation expense is largely earnings neutral and primarily reflects the timing of deferrals and revenue recognition in the Texas rate case.

Property taxes are projected to increase approximately $40 million to $50 million.

Interest expense (net of AFUDC – debt) is projected to increase $20 million to $30 million.

AFUDC – equity is projected to decline approximately $40 million to $50 million.

ETR is projected to be (7%) to (8%). The ETR reflects benefits of PTCs which are credited to customers through electric margin and will not have a material impact on net income.

^(a)Ongoing earnings is calculated using net income and adjusting for certain nonrecurring or infrequent items that are, in management’s view, not reflective of ongoing operations. Ongoing earnings could differ from those prepared in accordance with GAAP for unplanned and/or unknown adjustments. Xcel Energy is unable to forecast if any of these items will occur or provide a quantitative reconciliation of the guidance for ongoing EPS to corresponding GAAP EPS.

Long-Term EPS and Dividend Growth Rate Objectives —Xcel Energy expects to deliver an attractive total return to our shareholders through a combination of earnings growth and dividend yield, based on the following long-term objectives:

Deliver long-term annual EPS growth of 5% to 7% based off of a 2020 base of $2.78 per share, which represents the mid-point of the original 2020 guidance range of $2.73 to $2.83 per share.

Deliver annual dividend increases of 5% to 7%.

Target a dividend payout ratio of 60% to 70%.

Maintain senior secured debt credit ratings in the A range.

XCEL ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE SUMMARY (UNAUDITED)

(amounts in millions, except per share data)

Three Months Ended March 31

2021

2020

Operating revenues:

Electric and natural gas

$

3,517

$

2,786

Other

24

25

Total operating revenues

3,541

2,811

Net income

$

362

$

295

Weighted average diluted common shares outstanding

539

527

Components of EPS — Diluted

Regulated utility

$

0.73

$

0.60

Xcel Energy Inc. and other costs

(0.06

)

(0.04

)

GAAP and ongoing diluted EPS ^(a)(b)

$

0.67

$

0.56

Book value per share

$

27.29

$

25.26

Cash dividends declared per common share

0.46

0.43

^(a)For the three months ended March 31, 2021, there were no adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings for these periods.

^(b)Amounts may not add due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005180/en/

Paul Johnson, Vice President, Investor Relations, (612) 215-4535

For news media inquiries only, please call Xcel Energy Media Relations, (612) 215-5300

Xcel Energy website address: www.xcelenergy.com

KEYWORDS: United States North America North Dakota Minnesota Texas New Mexico South Dakota Colorado

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

MEDIA:

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Posted on April 29, 2021 6:03 am
Novocure Reports First Quarter 2021 Financial Results and Provides Company Update

Novocure Reports First Quarter 2021 Financial Results and Provides Company Update

Quarterly net revenues of $134.7 million with 80% gross margin

Interim analysis for phase 3 pivotal LUNAR trial in non-small cell lung cancer concluded with favorable recommendation to continue the trial with reduced sample size

ST. HELIER, Jersey–(BUSINESS WIRE)–
Novocure (NASDAQ: NVCR) today reported financial results for the quarter ended March 31, 2021, highlighting continued commercial strength despite changes in patterns of care in some regions driven by COVID-19, as well as continued progress across the company’s clinical and product development programs. Novocure is a global oncology company working to extend survival in some of the most aggressive forms of cancer by developing and commercializing its innovative therapy, Tumor Treating Fields (TTFields). TTFields are electric fields that disrupt cancer cell division.

First quarter 2021 highlights include:

Three Months Ended

March 31,

2021

2020

% Change

Financial, in millions

Net revenues

$

134,695

$

101,828

32

%

Gross Profit

$

108,310

$

77,332

40

%

Net income (loss)

$

(4,128

)

$

3,952

(204

)

%

Adjusted EBITDA⁽¹⁾

$

21,145

$

15,064

40

%

Non-financial

Active patients at period end⁽²⁾

3,454

3,095

12

%

Prescriptions received in period⁽³⁾

1,402

1,409

—

%

⁽¹⁾Adjusted EBITDA is a non-U.S. GAAP measurement of earnings before interest, taxes, depreciation, amortization and share-based compensation.

⁽²⁾An “active patient” is a patient who is receiving treatment under a commercial prescription order as of the measurement date, including patients who may be on a temporary break from treatment and who plan to resume treatment in less than 60 days.

⁽³⁾A “prescription received” is a commercial order for Optune or Optune Lua that is received from a physician certified to treat patients for a patient not previously on Optune or Optune Lua. Orders to renew or extend treatment are not included in this total.

“Over the last several months, we have made progress across multiple clinical development programs intended to determine Tumor Treating Fields’ optimal use,” said William Doyle, Novocure’s Executive Chairman. “We continued to increase our understanding of the potential benefits of Tumor Treating Fields when used together with immunotherapies and continued to enroll patients in five late-stage clinical trials in multiple solid tumor types. The accelerated interim analysis of the LUNAR trial and the upcoming HEPANOVA data presentation represent the beginning of what we expect to be an exciting few years of data readouts from our pipeline.”

“Our track record of consistent execution and financial strength continued in the first quarter of 2021,” added Asaf Danziger, Novocure’s Chief Executive Officer. “We generated $135 million in net revenues with an 80% gross margin, and we invested $46 million in research and development intended to fuel future growth. With 3,454 active patients on therapy at the end of the quarter, we have treated nearly 20,000 patients globally, to date.”

First quarter 2021 financial update

For the quarter ended March 31, 2021, net revenues were $134.7 million, representing 32% growth compared to the first quarter 2020.

In the United States, net revenues totaled $85.9 million in the quarter ended March 31, 2021, representing 24% growth compared to the same period in 2020.

In Germany and other EMEA markets, net revenues totaled $35.0 million in the quarter ended March 31, 2021, representing 43% growth compared to the same period in 2020.

In Japan, net revenues totaled $8.3 million in the quarter ended March 31, 2021, representing 28% growth compared to the same period in 2020.

In Greater China, net revenues totaled $5.5 million in the quarter ended March 31, 2021, representing 237% growth compared to the same period in 2020.

For the three months ended March 31, 2021, the increase in net revenues from the first quarter of 2020 resulted primarily from an increase of 359 active patients in our currently active markets and a durable improvement in the net revenues booked per active patient.

We recorded $9.4 million in revenues from Medicare fee-for-service beneficiaries billed under the coverage policy effective on September 1, 2019 in the first quarter 2021, an increase of 32% from the $7.1 million recognized in the same period in 2020. We have gained a good understanding of how to ensure timely processing of Medicare claims and we believe that we have sufficient experience to recognize approximately two-thirds of the expected contribution from Medicare beneficiaries. In the first quarter of 2021, incremental net revenues resulting from the successful appeal of previously denied claims for Medicare fee-for-service beneficiaries billed prior to established coverage reverted to normalized levels from the first half of 2020.

Cost of revenues for the three months ended March 31, 2021 was $26.4 million compared to $24.5 million for the same period in 2020, representing an increase of 8%. The increase in cost of revenues was primarily due to the cost of shipping transducer arrays to a higher volume of commercial patients and increasing shipments of equipment to Zai Lab. Gross margin was 80% for the three months ended March 31, 2021 compared to 76% for the three months ended March 31, 2020.

Research, development and clinical trials expenses for the three months ended March 31, 2021 were $45.9 million compared to $25.3 million for the same period in 2020, representing an increase of 82%. This was primarily due to an increase in clinical trial and personnel expenses for our phase 3 pivotal and post-marketing trials, an increase in development and personnel expenses to support our product development programs, increased investments in preclinical research and the expansion of our medical affairs activities.

Sales and marketing expenses for the three months ended March 31, 2021 were $31.4 million compared to $28.8 million for the same period in 2020, representing an increase of 9%. This was primarily due to an increase in personnel and professional services costs to support our growing commercial business and reimbursement efforts.

General and administrative expenses for the three months ended March 31, 2021 were $31.1 million compared to $26.6 million for the same period in 2020, representing an increase of 17%. This was primarily due to an increase in personnel costs and professional services.

Net loss for the three months ended March 31, 2021 was $4.1 million compared to net income of $4.0 million for the same period in 2020.

At March 31, 2021, we had $864.4 million in cash and cash equivalents and short-term investments, an increase of $21.8 million compared to $842.6 million at December 31, 2020. The increase in our cash, cash equivalents and short-term investments was primarily due to the cash flow from operations and the exercise of options.

First quarter 2021 operating statistics

There were 3,454 active patients at March 31, 2021, representing 12% growth compared to March 31, 2020, and 1% growth compared to December 31, 2020.

In the United States, there were 2,183 active patients at March 31, 2021, representing 8% growth compared to March 31, 2020.

In Germany and other EMEA markets, there were 1,000 active patients at March 31, 2021, representing 18% growth compared to March 31, 2020.

In Japan, there were 271 active patients at March 31, 2021, representing 22% growth compared to March 31, 2020.

Additionally, 1,402 prescriptions were received in the quarter ended March 31, 2021, representing no change compared to the same period in 2020, and a 1% decrease compared to the quarter ended December 31, 2020. We believe the prolonged disruption caused by COVID-19 is resulting in increased volatility across global health care systems, such as fluctuations in patient volumes and changes in patterns of care in certain regions, which had some impact on our business in the first quarter.

In the United States, 917 prescriptions were received in the quarter ended March 31, 2021, representing a 7% decrease compared to the same period in 2020.

In Germany and other EMEA markets, 382 prescriptions were received in the quarter ended March 31, 2021, representing 16% growth compared to the same period in 2020.

In Japan, 103 prescriptions were received in the quarter ended March 31, 2021, representing 10% growth compared to the same period in 2020.

First quarter 2021 non-U.S. GAAP measures

We also measure our performance based upon a non-U.S. GAAP measurement of earnings before interest, taxes, depreciation, amortization and shared-based compensation (“Adjusted EBITDA”). We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because it helps investors compare the results of our operations from period to period by removing the impact of earnings attributable to our capital structure, tax rate and material non-cash items, specifically share-based compensation.

Adjusted EBITDA was $21.1 million for the three months ended March 31, 2021, an increase of $6.1 million, or 40%, from $15.1 million for the three months ended March 31, 2020. This improvement in fundamental financial performance was driven by net revenue growth coupled with an ongoing commitment to disciplined management of expenses.

Recent clinical milestones

Earlier this April, we disclosed that an independent data monitoring committee (DMC) informed Novocure that the pre-specified interim analysis for the phase 3 pivotal LUNAR trial for the treatment of non-small cell lung cancer (NSCLC) was accelerated given the length of accrual and the number of events observed, to date. The interim analysis included data from 210 patients accrued through February 2021. After review of the interim analysis, the DMC concluded that the LUNAR trial should continue with no evidence of increased systemic toxicity. The DMC went on to comment that the continued accrual to 534 patients as proposed in the original protocol, given the current rate of accrual and the interim data presented, is likely unnecessary and possibly unethical for patients randomized to control. For this reason, the DMC recommended an adjustment of accrual to approximately 276 patients with a 12-month follow-up following the enrollment of the last patient. The DMC believes this amended protocol would provide adequate data regarding toxicity and efficacy, providing sufficient overall power, as well as potentially providing important information regarding efficacy within treatment subgroups.

In April, we concluded our phase 2 pilot HEPANOVA trial investigating TTFields together with sorafenib, a kinase inhibitor, in 25 patients with advanced liver cancer. We have submitted an abstract for presentation at an upcoming medical conference in late June and look forward to discussing the full data set with clinicians, investigators and investors in the future.

In April, the U.S. Food and Drug Administration (FDA) approved our investigational device exemption (IDE) application to initiate the KEYNOTE-B36 phase 2 pilot trial to study TTFields with pembrolizumab in first-line NSCLC through our clinical collaboration with MSD (Merck & Co., Inc., Kenilworth, NJ, USA). We are currently evaluating clinical trial sites for initiation.

Anticipated clinical milestones

FDA response to IDE supplement incorporating recommended protocol changes to phase 3 pivotal LUNAR trial in NSCLC (Q2 2021)

Presentation of full data from phase 2 pilot HEPANOVA trial in advanced liver cancer (Q2 2021)

Interim analysis of phase 3 pivotal INNOVATE-3 trial in recurrent ovarian cancer (Q3 2021)

Data from phase 2 pilot EF-31 trial in gastric cancer (2022)

Interim analysis of phase 3 pivotal PANOVA-3 trial in locally advanced pancreatic cancer (2022)

Data from phase 3 pivotal METIS trial in brain metastases (2022)

Data from phase 2 pilot EF-33 trial with high-intensity arrays in recurrent glioblastoma (2022)

Final data from phase 3 pivotal INNOVATE-3 trial in recurrent ovarian cancer (2023)

Final data from phase 3 pivotal PANOVA-3 trial in locally advanced pancreatic cancer (2023)

Final data from phase 3 pivotal LUNAR trial in NSCLC (to be determined pending FDA approval of IDE supplement)

Conference call details

Novocure will host a conference call and webcast to discuss first quarter 2021 financial results at 8 a.m. EDT today, Thursday, April 29, 2021. Analysts and investors can participate in the conference call by dialing 855-442-6895 for domestic callers and 509-960-9037 for international callers, using the conference ID 2286525.

The webcast, earnings slides presented during the webcast and the corporate presentation can be accessed live from the Investor Relations page of Novocure’s website, www.novocure.com/investor-relations, and will be available for at least 14 days following the call. Novocure has used, and intends to continue to use, its investor relations website, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Novocure

Novocure is a global oncology company working to extend survival in some of the most aggressive forms of cancer through the development and commercialization of its innovative therapy, Tumor Treating Fields. Novocure’s commercialized products are approved in certain countries for the treatment of adult patients with glioblastoma and in the U.S. for the treatment of adult patients with malignant pleural mesothelioma. Novocure has ongoing or completed clinical trials investigating Tumor Treating Fields in brain metastases, non-small cell lung cancer, pancreatic cancer, ovarian cancer, liver cancer, gastric cancer and glioblastoma.

Headquartered in Jersey, Novocure has U.S. operations in Portsmouth, New Hampshire, Malvern, Pennsylvania and New York City. Additionally, the company has offices in Germany, Switzerland, Japan and Israel. For additional information about the company, please visit www.novocure.com or follow us at www.twitter.com/novocure.

Forward-Looking Statements

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Novocure’s current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs, clinical trial progress, development of potential products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, coverage, collections from third-party payers and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” or other words and terms of similar meaning. Novocure’s performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, environmental, regulatory and political conditions as well as issues arising from the COVID-19 pandemic and other more specific risks and uncertainties facing Novocure such as those set forth in its Annual Report on Form 10-K filed on February 25, 2021 with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, Novocure does not intend to update publicly any forward-looking statement, except as required by law. Any forward-looking statements herein speak only as of the date hereof. The Private Securities Litigation Reform Act of 1995 permits this discussion.

Consolidated Statements of Operations

USD in thousands (except share and per share data)

Three months ended March 31,

Year ended

December 31,

2021

2020

2020

Unaudited

Audited

Net revenues

$

134,695

$

101,828

$

494,366

Cost of revenues

26,385

24,496

106,501

Gross profit

108,310

77,332

387,865

Operating costs and expenses:

Research, development and clinical trials

45,916

25,271

132,010

Sales and marketing

31,357

28,834

118,017

General and administrative

31,125

26,608

107,437

Total operating costs and expenses

108,398

80,713

357,464

Operating income (loss)

(88

)

(3,381

)

30,401

Financial expenses (income), net

2,646

2,432

12,299

Income (loss) before income tax

(2,734

)

(5,813

)

18,102

Income tax

1,394

(9,765

)

(1,706

)

Net income (loss)

$

(4,128

)

$

3,952

$

19,808

Basic net income (loss) per ordinary share

$

(0.04

)

$

0.04

$

0.20

Weighted average number of ordinary shares used in

computing basic net income (loss) per share

102,633,545

99,877,567

100,930,866

Diluted net income (loss) per ordinary share

$

(0.04

)

$

0.04

$

0.18

Weighted average number of ordinary shares used in

computing diluted net income (loss) per share

102,633,545

108,100,623

108,877,648

Consolidated Balance Sheets

USD in thousands (except share data)

March 31,

2021

December 31,

2020

Unaudited

Audited

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

314,547

$

234,674

Short-term investments

549,855

607,902

Restricted cash

11,430

11,499

Trade receivables, net

92,514

96,699

Receivables and prepaid expenses

18,922

21,245

Inventories

27,968

27,422

Total current assets

1,015,236

999,441

LONG-TERM ASSETS:

Property and equipment, net

11,733

11,395

Field equipment, net

12,132

11,230

Right-of-use assets

17,741

19,009

Other long-term assets

10,788

10,908

Total long-term assets

52,394

52,542

TOTAL ASSETS

$

1,067,630

$

1,051,983

Consolidated Balance Sheets

USD in thousands (except share data)

March 31,

2021

December 31,

2020

Unaudited

Audited

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

$

52,703

$

53,647

Other payables, lease liabilities and accrued expenses

57,784

59,965

Total current liabilities

110,487

113,612

LONG-TERM LIABILITIES:

Long-term debt, net

559,584

429,905

Deferred revenue

9,577

12,139

Long-term leases

12,708

14,293

Employee benefits

2,963

5,171

Other long-term liabilities

177

337

Total long-term liabilities

585,009

461,845

TOTAL LIABILITIES

695,496

575,457

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY:

Share capital –

Ordinary shares no par value, unlimited shares authorized; issued and outstanding:

103,187,460 shares and 102,334,276 shares at March 31, 2021 (unaudited) and

December 31, 2020, respectively

—

—

Additional paid-in capital

1,005,785

1,111,435

Accumulated other comprehensive income (loss)

(1,948

)

(3,832

)

Retained earnings (accumulated deficit)

(631,703

)

(631,077

)

TOTAL SHAREHOLDERS’ EQUITY

372,134

476,526

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,067,630

$

1,051,983

Non-U.S. GAAP financial measures reconciliation

USD in thousands

Three months ended March 31,

2021

2020

% Change

Net income (loss)

$

(4,128

)

$

3,952

(204

)

%

Add: Income tax

1,394

(9,765

)

(114

)

%

Add: Financial income (expenses), net

2,646

2,432

9

%

Add: Depreciation and amortization

2,370

1,888

26

%

EBITDA

$

2,282

$

(1,493

)

(253

)

%

Add: Share-based compensation

18,863

16,557

14

%

Adjusted EBITDA

$

21,145

$

15,064

40

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005359/en/

Investors:

Adam Daney

[email protected]

610-723-7427

Media:

[email protected]

610-723-7428

KEYWORDS: Jersey Europe

INDUSTRY KEYWORDS: Research Medical Devices Clinical Trials Radiology Health General Health Other Science Science Oncology

MEDIA:

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Posted on April 29, 2021 6:03 am
Ares Management Corporation Reports First Quarter 2021 Results

Ares Management Corporation Reports First Quarter 2021 Results

LOS ANGELES–(BUSINESS WIRE)–
Ares Management Corporation (NYSE:ARES) today reported its financial results for its first quarter ended March 31, 2021.

GAAP net income attributable to Ares Management Corporation was $58.4 million for the quarter ended March 31, 2021. On a basic basis, net income attributable to Ares Management Corporation per share of Class A common stock was $0.33 for the quarter ended March 31, 2021. On a diluted basis, net income attributable to Ares Management Corporation per share of Class A common stock was $0.32 for the quarter ended March 31, 2021.

After-tax realized income, net of Series A preferred stock dividends, was $127.6 million for the quarter ended March 31, 2021. After-tax realized income per share of Class A common stock, net of Series A preferred stock dividends, was $0.46 for the quarter ended March 31, 2021. Fee related earnings was $128.5 million for the quarter ended March 31, 2021.

“During the first quarter, we crossed a major milestone for our company by surpassing $200 billion in assets under management after reaching $100 billion just four years ago,” said Michael Arougheti, Chief Executive Officer and President of Ares. “Our 39% growth in assets under management was supported by continued strong momentum in both fundraising and fund performance as we generated attractive investment solutions for our investors. Looking ahead to the rest of 2021, we see a constructive market backdrop and strong fundamentals for the core drivers of our business and we continue to see favorable industry tailwinds and significant expansion opportunities for us on the longer term horizon.”

“We are off to a strong start to the year with $10 billion of new capital raised, 38% growth in our fee related earnings and record quarterly deployment,” said Michael McFerran, Chief Operating Officer and Chief Financial Officer of Ares. “With over $56 billion of available capital in flexible investment strategies, we are well positioned for continued growth as we continue to leverage the advantages of our expanding investment platform and global presence.”

Common Dividend

Ares declared a quarterly dividend of $0.47 per share of its Class A common stock, payable on June 30, 2021 to its Class A common stockholders of record at the close of business on June 16, 2021.

Dividend Reinvestment Program

Ares has a Dividend Reinvestment Program for its Class A common stockholders that will be effective for the quarterly dividend on June 30, 2021. American Stock Transfer and Trust Company is engaged to administer the plan on behalf of the Company. Additional information can be located on the Investor Resources section of our website.

Preferred Dividend

Ares declared a quarterly dividend of $0.4375 per share of its Series A preferred stock with a payment date of June 30, 2021 to its Series A preferred stockholders of record as of the close of business on June 15, 2021.

Additional Information

Ares issued a full detailed presentation of its first quarter 2021 results, which can be viewed at www.aresmgmt.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled “First Quarter 2021 Earnings Presentation.”

Conference Call and Webcast Information

Ares will host a conference call on April 29, 2021 at 12:00 p.m. (Eastern Time) to discuss first quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at www.aresmgmt.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing (888) 317-6003. International callers can access the conference call by dialing +1 (412) 317-6061. All callers will need to enter the Participant Elite Entry Number 9371836 followed by the # sign and reference “Ares Management Corporation” once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through May 27, 2021 to domestic callers by dialing (877) 344-7529 and to international callers by dialing +1 (412) 317-0088. For all replays, please reference conference number 10153153. An archived replay will also be available through May 27, 2021 on a webcast link located on the Home page of the Investor Resources section of our website.

About Ares Management Corporation

Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent, attractive investment returns for fund investors throughout market cycles. As of March 31, 2021, Ares Management’s global platform had approximately $207 billion of assets under management with more than 1,450 employees operating across North America, Europe and Asia Pacific. For more information, please visit www.aresmgmt.com.

Forward-Looking Statements

Statements included herein contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to the impact of the COVID-19 pandemic and the pandemic’s impact on the U.S. and global economy, as well as those described from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. Ares Management Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law.

Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005339/en/

Investor Relations

Carl Drake

[email protected]

(800) 340-6597

Greg Mason

[email protected]

(800) 340-6597

Cameron Rudd

[email protected]

(800) 340-6597

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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Posted on April 29, 2021 6:03 am
Iron Mountain Appoints Charlene Jackson as Global Chief Diversity, Equity, and Inclusion Officer

Iron Mountain Appoints Charlene Jackson as Global Chief Diversity, Equity, and Inclusion Officer

DEI champion joins the company’s global management team

BOSTON–(BUSINESS WIRE)–
Iron Mountain Incorporated (NYSE: IRM), the storage and information management services company enabling digital transformation, today announced that Charlene Jackson has joined the company as Global Chief Diversity, Equity, and Inclusion (DEI) Officer.

“The significant racial and social injustices we’ve witnessed around the world over the past year have reaffirmed and accelerated our commitment to foster meaningful change,” said William L. Meaney, President and Chief Executive Officer, Iron Mountain. “We’re excited to welcome Charlene to our global Iron Mountain leadership team. With her extensive background in leading, developing, and implementing impactful diversity strategies, she is the perfect fit to create an even more inclusive, diverse, and equitable environment at Iron Mountain, especially as we enter our eighth decade serving our diverse customer base.”

In her role, Jackson will lead Iron Mountain’s DEI strategy, practice and programs, including its Employee Resource Groups. She will work closely with the Iron Mountain leadership team to amplify and embed a culture of belonging that engages and attracts world-class diverse talent, while setting a standard of DEI excellence that deepens the company’s commitment through tangible and equitable business practices and outcomes throughout its global business.

“I’m thrilled to join Iron Mountain at such an exciting time in their history. I feel it’s an important moment for diverse voices and perspectives to engage in driving meaningful change for the good of our society, our customers and our organization,” said Charlene Jackson. “I look forward to working together with the leadership team to build a high-performing, inclusive culture where our people can thrive, as well as find belonging and safety.”

As a well-respected leader in transformational culture change, driving global diversity strategies, and a champion of racial equality and gender parity, Jackson brings more than two decades of experience to this role. She joins Iron Mountain from Girls Inc., where she was the National Director of Affiliate Services. An influential member of the executive team, Jackson worked to set young women up for lifelong success by providing skills necessary to navigate through economic, gender and social barriers.

Jackson is a graduate of Harvard Law School and Claremont Graduate University’s Drucker School of Management. Prior to Girls Inc., she held executive positions in the financial, real estate, and energy industries, serving nearly 10 years as Managing Director at Citi, the multinational investment bank. Jackson has also served as an executive consultant for more than 18 years, providing strategic, operational, and financial leadership to minority- and women-owned businesses.

She will report to Edward E. Greene, Chief Human Resources Officer at Iron Mountain and will be based in Houston, Texas.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across more than 1,450 facilities in 56 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services, and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.

Visit www.ironmountain.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005201/en/

Investor Relations Contacts:

Greer Aviv

Senior Vice President, Investor Relations

[email protected]

(617) 535-2887

Nathan McCurren

Director, Investor Relations

[email protected]

(617) 535-2997

Media Relations Contact:

Iron Mountain Global Communications

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Data Management Security Technology Software Networks Hardware

MEDIA:

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Posted on April 29, 2021 6:03 am
Lantronix Announces Definitive Agreement to Acquire Electronics and Software Reportable Business Segment From Communications Systems Inc.

Transaction brings increased scale and operating efficiencies to Lantronix; combined annual revenue expected to exceed $100 million

Adds complementary switching, PoE and media conversion technologies to Lantronix IoT connectivity portfolio

Anticipates $7 million in annualized expense synergies to be implemented over 24-month period following close of transaction

Expects day-one accretion to earnings (excluding acquisition-related costs), with significant contribution to earnings in the first full year

Announces conference call to discuss the acquisition

IRVINE, Calif., April 29, 2021 (GLOBE NEWSWIRE) — Lantronix Inc. (“Lantronix”) (NASDAQ: LTRX), a global provider of Software as a Service (SaaS), connectivity services, engineering services, intelligent hardware and turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM), today announced that it has entered into a definitive Securities Purchase Agreement to acquire Transition Networks and Net2Edge, which comprises the Electronics and Software reportable business segment of Communications Systems Inc. (NASDAQ: JCS) (“CSI”).

Under the terms of the agreement, Lantronix will pay CSI a base price of $25.0 million, subject to customary working capital adjustments following closing, plus an earn out of up to $7.0 million, based on revenue milestones for the two 180-day periods following closing of the securities purchase agreement. The agreement is subject to customary closing conditions and CSI shareholder approval and is expected to close in June or July of 2021.

The transaction will bring immediate scale to Lantronix, with the revenues from the combined company expected to total more than $100 million on an annual basis. The acquisition will bring complementary IoT connectivity products and capabilities, including switching, Power over Ethernet (PoE) and media conversion and adapter products. Lantronix sees significant operating and product development synergies in the combined company and expects the acquisition will be immediately accretive upon closing and significantly accretive in the first full year of operations. Lantronix will have further commentary on synergies, accretion and non-GAAP EPS expectations upon closing.

“The acquisition of Transition Networks and Net2Edge demonstrates our continuing commitment to deliver incremental growth and shareholder value through acquisition,” stated Paul Pickle, president and CEO of Lantronix. “In this transaction, we added significant revenue scale and operating model efficiencies while adding a highly complementary Industrial IoT connectivity product offering targeting Smart City infrastructure with significant long-term revenue synergy opportunities. We expect this acquisition will be accretive immediately upon closing, and we will drive synergies throughout our model to deliver increased cash flow for future acquisitions and for the benefit of our shareholders.”

Lantronix will host an investor conference call and audio webcast at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time) on Thursday, April 29, 2021. To access the live conference call, investors should register before the call at the following link: https://attendee.gotowebinar.com/register/7605844611974218768

O’Melveny & Myers LLP served as legal advisor to Lantronix.

About Lantronix

Lantronix Inc. is a global provider of Software as a Service (SaaS), connectivity services, engineering services, intelligent hardware and turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM). Lantronix enables its customers to provide reliable and secure IoT Intelligent Edge and OOBM solutions while accelerating time to market. Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT projects while providing quality, reliability and security across hardware, software and solutions.

With three decades of proven experience in creating robust IoT technologies and OOBM solutions, Lantronix is an innovator in enabling its customers to build new business models, leverage greater efficiencies and realize the possibilities of the Internet of Things. Lantronix’s solutions are deployed inside millions of machines at data centers, offices and remote sites serving a wide range of industries, including energy, agriculture, medical, security, manufacturing, distribution, transportation, retail, financial, environmental and government.

Lantronix is headquartered in Irvine, Calif. For more information, visit www.lantronix.com.

Learn more at the Lantronix blog, www.lantronix.com/blog, featuring industry discussion and updates. To follow Lantronix on Twitter, please visit www.twitter.com/Lantronix. View our video library on YouTube at www.youtube.com/user/LantronixInc or connect with us on LinkedIn at www.linkedin.com/company/lantronix.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. The forward-looking statements in this press release include, among others, statements about the expected benefits of the proposed acquisitions pursuant to the SPA (the “Transaction”), including expected synergies in the combined company, to Lantronix and its stockholders, the anticipated completion of the proposed Transaction or the timing thereof, the accretive nature of the proposed Transaction and expected future operating results of the combined company. Forward-looking statements are based on current expectations and assumptions and analyses made by Lantronix and its management in light of experience and perception of historical trends, current conditions, and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: the ability to obtain CSI shareholder approval of the proposed Transaction; the ability of Lantronix to obtain the necessary financing on terms acceptable to it; the receipt of required regulatory approvals of the proposed Transaction; the ability to complete the proposed Transaction on anticipated terms and timetable; Lantronix’s ability to integrate the acquired businesses successfully after the Transaction and achieve anticipated benefits from it; the possibility that various closing conditions for the Transaction may not be satisfied or waived; risks relating to any unforeseen liabilities of the acquired businesses; the outcome of any legal proceedings that may be instituted against any of the parties in connection with the proposed Transaction; any loss of management or key personnel; the impact of the COVID-19 pandemic, including the emergence of new strains of the virus and the impact of vaccination efforts, on the combined companies’ business, employees, supply and distribution chains and the global economy; and any additional factors included in Lantronix’s Report on Form 10-K for the fiscal year ended June 30, 2020, filed with the Securities and Exchange Commission (the “SEC”) on September 11, 2020, including in the section entitled “Risk Factors” in Item 1A of Part I of such report; its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2020, filed with the SEC on February 12, 2021, including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in the Company’s other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which Lantronix management is currently unaware or does not currently view as material to the Company’s business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements Lantronix makes speak only as of the date on which they are made. Lantronix undertakes no obligation to revise or update publicly any forward-looking statements except as required by law or the rules of the Nasdaq Stock Market, LLC.

© 2021 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark, and EMG and ConsoleFlow are trademarks of Lantronix Inc. Other trademarks and trade names are those of their respective owners.

Lantronix Media Contact:

Gail Kathryn Miller
Corporate Marketing &
Communications Manager
[email protected]
949-453-7158

Lantronix Analyst and Investor Contact:

Jeremy Whitaker
Chief Financial Officer
[email protected]
949-450-7241

Lantronix Sales:

[email protected]

Americas +1 (800) 422-7055 (US and Canada) or +1 949-453-3990
Europe, Middle East and Africa +31 (0)76 52 36 744
Asia Pacific + 852 3428-2338
China + 86 21-6237-8868
Japan +81 (0) 50-1354-6201
India +91 994-551-2488

Posted on April 29, 2021 6:02 am
WuXi AppTec Reports Record First-Quarter 2021 Results

PR Newswire

Revenue Up 55.3% Year-Over-Year to RMB4.95 Billion

Net Profit Attributable to Owners of the Company Up 394.9% Year-over-Year to RMB1.50 Billion

Diluted EPS Up 369.2%
Year-Over-Year to RMB0.61

Adjusted Non-IFRS Net Profit Attributable to Owners of the Company Up 63.6% Year-Over-Year to RMB943 Million

Adjusted Diluted Non-IFRS EPS Up 52.0% Year-Over-Year to RMB0.38^[1]

SHANGHAI, April 29, 2021 /PRNewswire/ — WuXi AppTec Co., Ltd. (stock code: 603259.SH / 2359.HK), a company that provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical, biotech and medical device industries worldwide to advance discoveries and deliver groundbreaking treatments to patients, announces its unaudited financial results for the First-Quarter of 2021 (“Reporting Period”).

All financials disclosed in this press release are prepared based on International Financial Reporting Standards (or “IFRSs”), in currency of RMB.

^[1] In the three months ended March 31, 2021 and three months ended March 31, 2020, we had a fully-diluted weighted average share count of 2,466,120,614 and 2,291,373,043 ordinary shares, respectively

First-Quarter 2021 Financial Highlights

Revenue soared 55.3% year-over-year to RMB4.95 billion on the back of robust demand brought on by strengthened customer market penetration and accelerated customer expansion. Revenue up 4.9% quarter-over-quarter continued our strong quarterly-based growth track record in the past twelve quarters. China-based laboratories and contract development and manufacturing organization (CDMO) facilities maintained high utilization to meet customer demands. Clinical research services experienced a strong rebound, but headwinds remain strong for US-based laboratory services which has continued to be negatively impacted by the COVID-19 pandemic.

– China-based laboratory services revenue grew 49.0% to RMB2.56 billion.
– CDMO services revenue grew 100.0% to RMB1.70 billion.
– U.S.-based laboratory services declined 15.3% to RMB329 million.
– Clinical research and other contract research organization (CRO) services revenue grew 56.8% to RMB359 million.

IFRS gross profit increased 67.6% year-over-year to RMB1.84 billion. Gross profit margin was 37.1% vs 34.4% in first-quarter 2020.^[2]

Adjusted Non-IFRS gross profit increased 58.3% year-over-year to RMB1.94 billion. Adjusted Non-IFRS gross margin was 39.1% vs 38.4% in first-quarter 2020.

EBITDA increased 180.2% year-over-year to RMB2.09 billion.

Adjusted EBITDA increased 46.1% year-over-year to RMB1.51 billion.

Net profit attributable to owners of the Company increased 394.9% year-over-year to RMB1.50 billion. Our gain from venture investment portfolios and loss from associates totally contributed a net gain of RMB1.02 billion, due primarily to the stock price increase of certain listed companies and some portfolio companies successfully went IPO during the Reporting Period that led to an increase in their fair market value and an RMB4 million loss from our joint ventures. Conversely, in the first-quarter 2020, we reported a RMB171 million fair value loss from investment portfolios and associates, and a RMB7 million loss from our joint ventures.

Adjusted Non-IFRS net profit attributable to owners of the Company increased 63.6% year-over-year to RMB943 million.

Diluted EPS increased 369.2% year-over-year to RMB0.61, while adjusted diluted non-IFRS EPS increased by 52.0% year-over-year to RMB0.38.

^[2] If prepared under Accounting Standard for Business Enterprises of PRC, 2021 the gross profit grew 67.2% year-over-year to RMB1.84 billion. Gross profit margin was 37.1%.

First-Quarter 2021 Business Highlights

We continued to relentlessly execute our strategy of enabling customers to innovate and accelerate drug discovery and development by leveraging our global integrated R&D services platform. We added over 360 new customers in the first-quarter of 2021, giving us a total of more than 4,400 active customers.

– Our global platform continued to enable innovation worldwide. During the Reporting Period, our overseas customers contributed RMB3.62 billion in revenues, increasing 49.5% year-over-year. Our China-based customers contributed RMB1.33 billion in revenues, increasing 73.9% year-over-year.
– We continued to expand our customer base and retain existing customers. During the Reporting Period, our existing customers contributed RMB4.75 billion in revenue, representing a year-over-year growth of 54.3%. Our newly added customers in the first-quarter of 2021 contributed RMB197 million in revenue.
– We aim to simultaneously increase service penetration in large global pharmaceutical companies, whilst increasing the size of our “long-tail” customer base. This strategy has continued to be successful. During the Reporting Period, the top 20 global pharmaceutical companies contributed RMB1.58 billion in revenue, increasing 66.6% year-over-year. Our “long-tail” and other customers contributed RMB3.37 billion in revenue, growing 50.5% year-over-year.
– We continued to increase customer conversion and deliver synergies across our entire platform. During the Reporting Period, customers using services from more than one of our business units contributed RMB3.94 billion in revenue, growing 58.4% year-over-year.

China-Based Laboratory Services: robust growth in all business lines on the back of strengthened customer market penetration and expansion

Chemistry FFS (Fee for Services) achieved over 58% revenue growth while concurrently transferring multiple new projects to our CDMO segment.

Through comprehensive integration of our DNA-encoded library (DEL), protein production and structure-based drug design capabilities, our Target-to-Hit platform(HitS) has enabled over 600 customers globally, and diverted multiple, incremental business opportunities to our downstream business units.

As of March 31, 2021, our success-based drug discovery service unit had cumulatively submitted 120 IND filings with the National Medical Products Administration (NMPA) and obtained 91 Clinical Trial Applications (CTAs) and had two projects in Phase III clinical trials.

Safety assessment / toxicology services revenue grew rapidly at approximately 114% due to strong demand and increased animal room capacity.

We signed over 40 integrated WIND packages (the WuXi IND program or “WIND”) in the first-quarter of 2021.

CDMO Services: first-quarter 2021 growth doubled due to core business model execution and capacity increase

We added 169 new molecules into our small molecule CDMO pipeline, including 11 new projects that were transferred from clients’ facilities or other CDMOs. We provided CDMO services to over 1,340 active projects, including 46 projects in Phase III clinical trials and 28 projects in commercial manufacturing.

In the first-quarter 2021, new construction at Taixing city has begun and will provide a large scale API and oligonucleotide and peptide API production once complete. Taixing site is designed to provide over 140,000 square meters of manufacturing space in 2022.

The drug product manufacturing facility in Wuxi city slated to begin operation in 2021 will not only improve the development and production capacity of solid dosages, but will also be capable of sterile drug product development, clinical trial material production and commercial scale manufacturing.

The high-potency API manufacturing facility, large-scale oligonucleotide API manufacturing facility and large-scale peptide API manufacturing facility located in Changzhou city began operations, supporting process R&D and small molecule manufacturing, as well as oligonucleotide and peptide APIs from preclinical to commercial.

US-based Laboratory Services: Continued development of a comprehensive US-based cell and gene therapy CTDMO platform
,
with the integration of OXGENE

Our cell and gene therapy Contract Testing Development and Manufacturing Organization (CTDMO) services enabled customers globally. During the Reporting Period:

– Our laboratories and facilities in the U.S. provided services for 36 clinical stage projects, including 22 projects in Phase I clinical trials and 14 projects in Phase II/III clinical trials.
– The current quarter revenue decline in our U.S. cell and gene therapy business was mainly due to delay in approval of commercial projects and impacted by the pandemic. Some late stage/commercial clients also did not pass clinical trials; however, we are building up our new projects pipeline through significantly enhanced viral vector platforms and through integration with the newly acquired new OXGENE platforms. We expect strong rebound in revenue growth in the second half of 2021.
– In our Medical Device Testing business, the impact of the pandemic continued first-quarter. The delay of elective/non-essential surgeries impacted key projects caused shortfall of the testing demand. We are actively working and supplementing with new opportunities, particularly the EU Medical Device Regulation (MDR) to grow the medical device testing business in the second half of 2021.

Clinical Research CRO/SMO Services
: strong rebound in revenue driven by focused backlog execution and timely project delivery

Our clinical research services continued to enable customers globally during the Reporting Period:

– Clinical development services (CDS) backlog increased approximately 56% on a year-over-year basis and our site management organization (SMO) backlog increased approximately 47% on a year-over-year basis.
– China based clinical research services^[3] delivered strong growth in the first-quarter, at 64.7% year over year, while US based clinical trial services continued to suffer from the impact of the pandemic impact.
– CDS team provided services to more than 130 projects for our clients in China and the U.S. and completed registration trials for 3 products.
– Our SMO team maintained its No.1 leadership position in China, with more than 3,500 clinical research coordinators stationed in 150 cities providing services in ~1,000 hospitals. The team assisted in the market approval of 5 customer products that were approved by NMPA in the first quarter in 2021.

^[3]China based clinical research services included CDS China and SMO businesses.

Management Comments

Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, “Another record quarter has once again demonstrated the strength and resilience of our platform. We continue to flawlessly execute our business model, increasing customer penetration while increasing “long-tail” customer numbers with the highest quality of our service offerings. For CDMO, we are seeing benefits of aggressive investment in capacity and new modalities come to fruition with revenues doubling in the first-quarter. Our China-based laboratory services and clinical research services segments also out-performed, growing 49.0% and 56.8% respectively. We expect the upward trajectory of these business segments to continue, mitigating any continuing COVID-19 related challenges that U.S. based laboratory services may face.”

“A continued strong biotech funding environment, coupled with incremental demand from the pandemic, reinforces our decision to further invest in and expand our integrated platform solidifying our leading position to meet strong and fast growing demands in 2021 and beyond.”

Dr. Ge Li concluded, “This is a good start to 2021 and we anticipate this momentum to continue in the coming quarters. Going forward, we will continue to bolster our integrated business model by expanding our platform through investments in new modalities, further enabling our customers to bring the most innovative medicines to patients – fulfilling our vision that: ‘every drug can be made and every disease can be treated.'”

Adjusted Non-IFRS Net Profit Attributable to Owners of the Company

^[4]

RMB Million

Year Ended

March 31, 2021

Year Ended

March 31, 2020

Profit Attributable to the owners of the Company

1,499.8

303.0

Add:

      Share-based compensation expenses

126.3

116.6

      Issuance expenses of convertible bonds

1.0

1.2

      Fair value losses/(gains) from derivative
            component of convertible bonds

451.1

(15.3)

      Foreign exchange related gains

(126.3)

(15.8)

      Amortization of intangible assets acquired in
            business combinations

11.2

8.8

Non-IFRS Net Profit Attributable the owners of the
Company

1,963.1

398.5

Add:

      Realized and unrealized (gains)/losses from
            venture investments

(1,024.3)

171.0

      Realized and unrealized share of losses from
            joint ventures

4.1

6.8

Adjusted non-IFRS net profit attributable to the
owners of the Company

942.9

576.3

^[4] If the sum of the data below is inconsistent with the total, it is caused by rounding.

Adjusted EBITDA
^[5]

RMB Million

Year Ended

March 31, 2021

Year Ended

March 31, 2020

Profit before tax

1,695.9

415.8

Add:

Interest expense

35.0

58.0

Depreciation and amortization

359.4

272.2

EBITDA

2,090.3

746.1

% EBITDA margin

42.2%

23.4%

Add:

Share-based compensation expenses

153.6

141.8

Issuance expenses of convertible bonds

1.3

1.6

Fair value losses/(gains) from derivative
    component of convertible bonds

451.1

(15.3)

Foreign exchange related gains

(150.7)

(17.1)

Realized and unrealized (gains)/losses from
    venture investments

(1,038.2)

171.0

Realized and unrealized share of losses from
    joint ventures

4.1

6.8

Adjusted EBITDA

1,511.5

1,034.8

% Adjusted EBITDA margin

30.5%

32.5%

^[5] If the sum of the data below is inconsistent with the total, it is caused by rounding.

Consolidated Statement of Profit or Loss

^[6]

RMB Million

Year Ended
March 31,

2021

Year Ended
March 31,

2020

Year-over-
Year

Change

Revenue

4,950.5

3,187.5

55.3%

Cost of services

(3,112.3)

(2,090.8)

48.9%

Gross profit

1,838.2

1,096.7

67.6%

Other income

106.5

51.9

105.0%

Other gains and losses

679.0

20.3

3240.6%

Impairment losses under expected credit
    losses (“ECL”) model, net of reversal

(15.1)

4.0

-479.3%

Selling and marketing expenses

(158.6)

(119.2)

33.0%

Administrative expenses

(486.1)

(370.3)

31.3%

Research and development expenses

(204.6)

(125.9)

62.5%

Operating Profit

1,759.3

557.6

215.5%

Share of losses of associates

(24.4)

(77.0)

-68.4%

Share of losses of joint ventures

(4.0)

(6.8)

-40.2%

Finance costs

(35.0)

(58.0)

-39.6%

Profit before tax

1,695.9

415.8

307.8%

Income tax expense

(188.8)

(110.7)

70.5%

Profit for the year

1,507.1

305.1

394.0%

Profit for the year attributable to:

Owners of the Company

1,499.8

303.0

394.9%

Non-controlling interests

7.3

2.1

253.3%

1,507.1

305.1

394.0%

^[6] If the sum of the data below is inconsistent with the total, it is caused by rounding.

Consolidated Statement of Profit or Loss (continued)

^[7]

Year Ended
March 31,

2021

Year Ended
March 31,

2020

Year-over-
Year

Change

Weighted average number of ordinary
shares for calculating EPS(express in
shares)

– Basic

2,415,124,823

2,282,334,253

5.8%

– Diluted

2,466,120,614

2,291,373,043

7.6%

Earnings per share attributable to
ordinary shareholders of the Company
(expressed in RMB per share)^[8]

– Basic

0.62

0.13

376.9%

– Diluted

0.61

0.13

369.2%

^[7] If the sum of the data below is inconsistent with the total, it is caused by rounding.

^[8] In 2020, pursuant to the 2019 Profit Distribution Plan considered and approved by the shareholders’ general meeting, the Company issued 4 shares for every 10 shares of the Company by way of capitalization of reserve. In accordance with the regulations of the China Securities Regulatory Commission, the Company has adjusted the basic earnings per share and diluted earnings per share for the comparative period according to the 2019 Profit Distribution Plan.

Consolidated Statement of Financial Position

^[9]

RMB Million

March 31,

December 31,

2021

2020

Non-current Assets

Property, plant and equipment

10,770.3

10,137.1

Right of use assets

1,494.8

1,519.9

Biological assets

454.8

418.9

Goodwill

1,966.0

1,391.8

Other intangible assets

911.8

585.3

Interest in associates

694.0

712.3

Interest in joint ventures

51.9

52.5

Deferred tax assets

347.3

300.9

Financial assets at fair value through profit or
loss (“FVTPL”)

8,247.5

6,717.2

Other non-current assets

2,126.1

1,395.6

Amount due from related parties

–

0.4

27,064.5

23,231.8

Current Assets

Inventories

2,330.5

1,933.8

Biological assets

487.8

501.7

Contract costs

266.6

250.3

Amounts due from related parties

9.7

56.9

Trade and other receivables

4,665.9

4,337.9

Contract assets

604.7

542.0

Income tax recoverable

12.1

19.1

Financial assets at FVTPL

2,110.8

4,617.7

Derivative financial instruments

381.0

562.8

Pledged bank deposits

8.3

9.1

Bank Balances and Cash

10,668.8

10,228.1

21,546.3

23,059.3

Total Assets

48,610.8

46,291.2

^[9] If the sum of the data below is inconsistent with the total, it is caused by rounding.

Consolidated Statement of Financial Position (continued)

^[10]

RMB Million

March 31,

2021

December 31,

2020

Current Liabilities

Trade and other payables

4,384.9

4,550.3

Amounts due to related parties

23.0

23.8

Derivative financial instruments

29.8

0.9

Contract liabilities

1,634.8

1,581.0

Borrowings

1,532.4

1,230.0

Income tax payables

474.0

340.4

Financial liabilities at FVTPL

16.6

16.5

Lease liabilities

176.4

177.4

8,271.8

7,920.3

Non-current Liabilities

Convertible bonds-debt component

1,300.8

1,819.0

Convertible bonds-embedded derivative component

1,292.7

1,582.1

Deferred tax liabilities

305.5

283.0

Deferred income

669.3

682.0

Other long-term liabilities

178.7

219.1

Lease liabilities

1,066.2

1,067.1

Total Non-current liabilities

4,813.2

5,652.3

Total Liabilities

13,085.0

13,572.7

Net Assets

35,525.8

32,718.5

Capital and Reserves

Share capital

2,450.5

2,441.7

Reserves

32,843.7

30,052.1

Equity attributable to owners of the Company

35,294.2

32,493.7

Non-controlling interests

231.6

224.7

Total Equity

35,525.8

32,718.5

^[10] If the sum of the data below is inconsistent with the total, it is caused by rounding.

About WuXi

AppTec

WuXi AppTec provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical, biotech and medical device industries worldwide to advance discoveries and deliver groundbreaking treatments to patients. As an innovation-driven and customer-focused company, WuXi AppTec helps our partners improve the productivity of advancing healthcare products through cost-effective and efficient solutions. With industry-leading capabilities such as R&D and manufacturing for small molecule drugs, cell and gene therapies, and testing for medical devices, WuXi AppTec’s open-access platform is enabling more than 4,400 collaborators from over 30 countries to improve the health of those in need – and to realize our vision that “every drug can be made and every disease can be treated.” Please visit: http://www.wuxiapptec.com

Forward-Looking Statements

This press release may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe that our predictions are reasonable, future events are inherently uncertain and our forward-looking statements may turn out to be incorrect. Our forward-looking statements are subject to risks relating to, among other things, the ability of our service offerings to compete effectively, our ability to meet timelines for the expansion of our service offerings, our ability to protect our clients’ intellectual property, unforeseeable international tension, competition, the impact of emergencies and other force majeure. Our forward-looking statements in this press release speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements except as required by applicable law or listing rules. Accordingly, you are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. All forward-looking statements contained herein are qualified by reference to the cautionary statements set forth in this section. All information provided in this press release is as of the date of this press release and are based on assumptions that we believe to be reasonable as of this date, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-IFRS and Adjusted Non-IFRS Financial Measures

We provide non-IFRS gross profit and non-IFRS net profit attributable to owners of the Company, which exclude share-based compensation expenses, issuance expenses of convertible bonds, fair value gain or loss from derivative component of convertible bonds, foreign exchange-related gains or losses, amortization of intangible assets acquired in business combinations and goodwill impairment. We also provide adjusted non-IFRS net profit attributable to owners of the Company and earnings per share, which further exclude realized and unrealized gains or losses from our venture investments and joint ventures. Neither is required by, or presented in accordance with IFRS. We believe that the adjusted financial measures used in this press release are useful for understanding and assessing our core business performance and operating trends, and we believe that management and investors may benefit from referring to these adjusted financial measures in assessing our financial performance by eliminating the impact of certain unusual, non-recurring, non-cash and non-operating items that we do not consider indicative of the performance of our core business. Such adjusted non-IFRS net profit attributable to owners of the Company, the management of the Company believes, is widely accepted and adopted in the industry the Company is operating in. However, the presentation of these adjusted non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. You should not view adjusted results on a stand-alone basis or as a substitute for results under IFRS, or as being comparable to results reported or forecasted by other companies.

View original content:http://www.prnewswire.com/news-releases/wuxi-apptec-reports-record-first-quarter-2021-results-301279988.html

SOURCE WuXi AppTec

Posted on April 29, 2021 6:00 am
Realtor.com® Housing Report: Homes Sell Faster Than Ever as Sellers Return to the Market in April

Prices hit a new all-time high of $375,000

– New listings took a step in the right direction, increasing 32.6% in April over last year, but still trail pre-pandemic levels

– The number of active listings — homes without a pending contract — was down 53%, while total inventory declined 21.9% year-over-year

– Homes are selling in a record 43 days, on average

– Home price increases in nation’s 50 largest metros show signs of a slowdown

PR Newswire

SANTA CLARA, Calif., April 29, 2021 /PRNewswire/ — The number of new sellers surged in April compared to last year when most cities had shelter-in-place orders in effect. However, with the number of new listings still nearly 26% below pre-pandemic levels, buyers saw little relief as the median U.S. home listing price soared 17.2% year-over-year to a new high of $375,000 and homes sold lightning fast in a record low 43 days, according to the realtor.com^®Monthly Housing Trends Report released today.

“After stay-at-home orders brought the housing market to a halt last spring, especially for sellers who re-thought their plans, 2021 is shaping up to be more typical,” said realtor.com^® Chief Economist Danielle Hale. “That lack of activity is causing this year’s more normal trends to look like a huge improvement, and it is. However, when compared to pre-pandemic levels it is very clear we are still not on par with the number of sellers we saw in 2017 through 2019, which is helping to drive one of the most competitive seller’s markets of all time. Home prices are continuing to surge and sales are occurring nearly three weeks faster than a normal spring home-buying season.”

Hale said she expects more homeowners to put their homes on the market in the coming months. However, with 554,000 fewer homes available for sale on a typical day in April this year compared to last year and buyer demand at all-time highs, home prices are expected to continue to reach new highs before peaking in July or August.

Nationally, new listings increased 32.6% in April compared to last year, which provided some relief in the form of more choices for weary home shoppers. At the same time, new listings still trail pre-pandemic levels with 130,000 (25.5%) fewer homes listed this April than the average rate in 2017 to 2019. As sales occurred at a record pace, the number of active listings was down 53% year-over-year, while total inventory, which includes pending sales, was 21.9% lower.

The Northeast and Midwest — regions that were first and hardest-hit at the outset of the pandemic — posted the largest year-over-year growth in newly listed homes in April with Pittsburgh, Detroit and Buffalo, N.Y., showing the biggest gains. Southern markets, such as Oklahoma City and Nashville, Tenn., both saw 30% newly listed homes decline by 30% year-over-year.

Homes sales are occurring nearly three weeks faster than 2017-2019
Not surprisingly, homes across the U.S. are selling more quickly than last year when most of the country was on lockdown. The typical home in the U.S. spent an average 43 days on the market this April, 20 days less than last year. Notably, it was 18 days less than the typical time on market in April 2017 to 2019 and faster than any time since 2012, underscoring the continuing record-setting demand for housing.

Homes sold even faster in the 50 largest U.S. metros at 34 days on average, down from 50 in April 2020. In Denver, homes sold in an average of 15 days, while the median time on market in Columbus, Ohio, was just 16 days and 18 days in Austin, Texas. Five of the top 50 largest markets are seeing homes sell in less than three weeks on average. Of the nation’s largest markets, only New York saw time on market increase, up 13 days.

Listing prices continue to rise
The median national home price for active listings grew by 17.2% over last year to a new all-time high of $375,000 in April. In the 50 largest metros, the median home price was up 11.6% compared to last year. This was slightly lower than the 12.1% increase in March, potentially signaling slowing price growth in the larger markets.

Austin (+40.6%), Los Angeles (+23.6%) and Riverside, Calif., (+22%) posted the highest year-over-year median list price growth in April. Memphis, Tenn., (-4%), Milwaukee (-2.4%), and Louisville, Ky., (-0.9%) were the only top 50 metros to see their median listing price decline year-over-year during the month.

April Housing Overview By Market

Metro

Median Listing Price YoY

Median Listing Price

Median Days on Market YoY (Days)

Median Days on Market

New Listing Count YoY

Active Listing Count YoY

Atlanta-Sandy Springs-Roswell, Ga.

20.7%

$392,000

-18

31

2.8%

-63.4%

Austin-Round Rock, Texas

40.6%

$515,000

-25

18

19.1%

-72.7%

Baltimore-Columbia-Towson, Md.

2.4%

$336,000

-20

29

51.9%

-53.2%

Birmingham-Hoover, Ala.

6.4%

$277,000

-20

41

15.2%

-51.4%

Boston-Cambridge-Newton, Mass.-N.H.

13.3%

$699,000

-24

22

97.7%

-25.1%

Buffalo-Cheektowaga-Niagara Falls, N.Y.

15.7%

$254,000

-33

31

178.0%

-41.3%

Charlotte-Concord-Gastonia, N.C.-S.C.

18.6%

$403,000

-12

32

-14.4%

-66.9%

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

9.6%

$356,000

-17

34

46.8%

-43.4%

Cincinnati, Ohio-Ky.-Ind.

15.8%

$352,000

-10

38

-15.1%

-54.4%

Cleveland-Elyria, Ohio

17.0%

$234,000

-17

43

13.3%

-54.5%

Columbus, Ohio

1.7%

$315,000

-27

16

45.7%

-48.8%

Dallas-Fort Worth-Arlington, Texas

12.0%

$380,000

-22

28

6.7%

-69.7%

Denver-Aurora-Lakewood, Colo.

5.1%

$575,000

-19

15

58.9%

-56.8%

Detroit-Warren-Dearborn, Mich

16.3%

$285,000

-32

28

178.8%

-53.5%

Hartford-West Hartford-East Hartford, Conn.

8.8%

$310,000

-24

32

48.5%

-35.5%

Houston-The Woodlands-Sugar Land, Texas

14.1%

$355,000

-15

40

10.0%

-54.9%

Indianapolis-Carmel-Anderson, Ind.

0.9%

$287,000

-13

39

19.2%

-59.5%

Jacksonville, Fla.

11.9%

$349,000

-24

35

-10.9%

-72.6%

Kansas City, Mo.-Kan.

8.1%

$368,000

-21

40

22.7%

-55.5%

Las Vegas-Henderson-Paradise, Nev.

15.3%

$379,000

-14

29

10.6%

-51.1%

Los Angeles-Long Beach-Anaheim, Calif.

23.6%

$1,114,000

-10

49

66.2%

-22.1%

Louisville/Jefferson County, Ky.-Ind.

-0.9%

$272,000

-21

30

25.1%

-54.0%

Memphis, Tenn.-Miss.-Ark.

-4.0%

$240,000

-17

40

11.3%

-58.0%

Miami-Fort Lauderdale-West Palm Beach, Fla.

4.8%

$418,000

-19

72

63.3%

-46.0%

Milwaukee-Waukesha-West Allis, Wis.

-2.4%

$332,000

-9

36

20.7%

-54.9%

Minneapolis-St. Paul-

Bloomington, Minn.-Wis.

0.2%

$366,000

-8

30

4.6%

-44.5%

Nashville-Davidson–

Murfreesboro–Franklin, Tenn.

11.2%

$417,000

-15

20

-30.0%

-70.6%

New Orleans-Metairie, La.

19.2%

$345,000

-17

51

16.9%

-50.7%

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

9.3%

$629,000

13

67

175.5%

-18.1%

Oklahoma City, Okla.

19.7%

$313,000

-5

40

-30.1%

-67.1%

Orlando-Kissimmee-Sanford, Fla.

6.2%

$332,000

-15

43

9.2%

-61.7%

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

13.3%

$340,000

-23

39

140.1%

-36.8%

Phoenix-Mesa-Scottsdale, Ariz.

21.9%

$457,000

-15

24

-2.4%

-68.0%

Pittsburgh, Pa.

N/A

$272,000

-40

44

229.3%

-49.9%

Portland-Vancouver-Hillsboro, Ore.-Wash.

12.9%

$540,000

-14

28

28.2%

-54.6%

Providence-Warwick, R.I.-Mass.

5.3%

$420,000

-26

28

42.0%

-57.9%

Raleigh, N.C.

12.6%

$412,000

-25

26

-6.9%

-72.6%

Richmond, Va.

11.0%

$375,000

-9

38

14.3%

-55.5%

Riverside-San Bernardino-

Ontario, Calif.

22.0%

$512,000

-28

28

33.9%

-63.7%

Rochester, N.Y.

5.8%

$264,000

-29

19

108.8%

-41.6%

Sacramento–Roseville–Arden-

Arcade, Calif.

18.6%

$592,000

-17

21

29.8%

-54.4%

San Antonio-New Braunfels, Texas

9.0%

$324,000

-21

37

-8.9%

-70.7%

San Diego-Carlsbad, Calif.

17.3%

$852,000

N/A

48

34.2%

-31.5%

San Francisco-Oakland-Hayward, Calif.

13.6%

$1,062,000

-13

27

106.9%

-6.2%

San Jose-Sunnyvale-Santa Clara, Calif.

3.3%

$1,238,000

-13

22

112.3%

-10.8%

Seattle-Tacoma-Bellevue, Wash.

13.2%

$679,000

-10

22

62.2%

-44.6%

St. Louis, Mo.-Ill.

13.5%

$266,000

0

61

33.4%

-43.9%

Tampa-St. Petersburg-Clearwater, Fla.

17.3%

$327,000

-23

32

3.2%

-72.5%

Virginia Beach-Norfolk-Newport News, Va.-N.C.

1.4%

$323,000

-24

25

10.2%

-53.5%

Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.

1.2%

$506,000

-7

29

60.6%

-33.0%

*Some data for Pittsburgh and San Diego has been excluded due to data quality.

About realtor.com^®Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^®pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS^®. For more information, visit realtor.com^®.

Media Contact

Janice McDill, [email protected]

View original content:http://www.prnewswire.com/news-releases/realtorcom-housing-report-homes-sell-faster-than-ever-as-sellers-return-to-the-market-in-april-301279880.html

SOURCE realtor.com

Posted on April 28, 2021 6:13 pm
Apollo Global Management to Announce First Quarter 2021 Financial Results

NEW YORK, April 28, 2021 (GLOBE NEWSWIRE) — Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) announced today that it will host a conference call to review Apollo’s financial results on Tuesday, May 04, 2021 at 8:30 a.m. EST as previously stated. The Company has amended the timing of releasing its first quarter 2021 results to Tuesday, May 04, 2021 at 7 a.m. EST.

The conference call may be accessed by dialing (833) 614-1406 (U.S. domestic) or +1 (914) 987-7127 (international), and providing conference call ID 5576528 when prompted by the operator. The number should be dialed at least ten minutes prior to the start of the call. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Stockholders section of Apollo’s website at www.apollo.com.

Following the call a replay of the event may be accessed either telephonically or via audio webcast. A telephonic replay of the live broadcast will be available approximately two hours after the live broadcast by dialing (855) 859-2056 (U.S. callers) or +1 (404) 537-3406 (non-U.S. callers), passcode 5576528. To access the audio webcast, please visit Events and Presentations in the Stockholders section of Apollo’s website at www.apollo.com.

About Apollo

Apollo is a leading global investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo, among others. Apollo had assets under management of approximately $455 billion as of December 31, 2020 in credit, private equity and real assets funds. For more information about Apollo, please visit www.apollo.com.

Contact Information

For investors please contact:
Peter Mintzberg
Head of Investor Relations
Apollo Global Management, Inc.
+1 212 822 0528
[email protected]

For media inquiries please contact:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
+1 212 822 0491
[email protected]

Posted on April 28, 2021 6:10 pm
Ball Corporation Declares Quarterly Dividend

PR Newswire

WESTMINSTER, Colo., April 28, 2021 /PRNewswire/ — Ball Corporation’s (NYSE: BLL) board of directors today declared a cash dividend of 15 cents per share, payable June 15, 2021 to shareholders of record as of June 1, 2021.

Ball will announce its first quarter 2021 earnings on Thursday, May 6th 2021. Conference call details are below.

Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 21,500 people worldwide and reported 2020 net sales of $11.8 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.

Conference Call Details

The North American toll-free number for the call is 800-920-5564. International callers should dial +1 212-231- 2909. Please use the following URL for a webcast of the live call:

https://edge.media-server.com/mmc/p/569qbar7

For those unable to listen to the live call, a taped replay will be available from 11 a.m. Mountain time on May 6, 2021, until 11 a.m. Mountain time on May 13, 2021. To access the replay, call 800-633-8284 (North American callers) or +1 402-977-9140 (international callers) and use reservation number 21993264. A written transcript of the call will be posted within 48 hours of the call’s conclusion to Ball’s website at www.ball.com/investors under “news and presentations.”

Forward-Looking Statements

This release contains “forward-looking” statements concerning future events and financial performance. Words such as “expects,” “anticipates,” “estimates,” “believes,” and similar expressions typically identify forward-looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements and any such statements should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Additional factors that might affect: a) our packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; currency controls; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and shelter-in-place orders in any country or jurisdiction affecting goods produced by us or in our supply chain, including imported raw materials; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the Company as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; rates of return on assets of the Company’s defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies both in the U.S. and in other countries, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting our debt; and successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on our operating results and business generally.

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SOURCE Ball Corporation

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