Getty Realty Corp. Appoints Brian Dickman as New Chief Financial Officer

Getty Realty Corp. Appoints Brian Dickman as New Chief Financial Officer

JERICHO, N.Y.–(BUSINESS WIRE)–Getty Realty Corp. (NYSE: GTY) announced today that Brian R. Dickman has been appointed Executive Vice President, Chief Financial Officer and Treasurer, effective December 14, 2020. Mr. Dickman will succeed Danion Fielding, who previously announced his intention to resign for personal reasons. Mr. Fielding will stay on as Chief Financial Officer through December 11, 2020.

“I am pleased to welcome Brian to our leadership team,” said Christopher J. Constant, Getty’s President and Chief Executive Officer. “Brian is a seasoned executive with extensive real estate experience and a track record of demonstrated leadership capabilities, which makes him an excellent addition to the Getty team.” Mr. Constant continued, “On behalf of our entire Company, I want to thank Danion for his service to Getty. We have truly valued his leadership and contributions. We wish Danion much success in his future endeavors. I anticipate a smooth transition of the CFO position and expect no disruption to the continued execution of our strategic plans.”

Mr. Dickman brings more than 15 years of REIT experience to Getty, including nearly seven years as a public company executive. Mr. Dickman is joining Getty from his current role as Executive Vice President and Chief Financial Officer of Seritage Growth Properties (NYSE:SRG). Prior to joining Seritage, Mr. Dickman was Chief Financial Officer at Agree Realty (NYSE: ADC), where he was responsible for all corporate finance, capital markets, accounting, financial reporting, treasury and investor relations activities. Prior to that role, he was a real estate investment banker covering public REITs and other real estate companies beginning at Lehman Brothers in 2005.

About Getty Realty Corp.

Getty Realty Corp. is the leading publicly traded real estate investment trust in the United States specializing in the ownership, leasing and financing of convenience store and gasoline station properties. As of September 30, 2020, the Company owned 896 properties and leased 58 properties from third-party landlords in 35 states across the United States and Washington, D.C.

Investor Relations

(516) 478-5418

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: REIT Retail Commercial Building & Real Estate Construction & Property Convenience Store

MEDIA:

GMS to Present at the Stephens Annual Investment Conference

GMS to Present at the Stephens Annual Investment Conference

TUCKER, Ga.–(BUSINESS WIRE)–
GMS Inc. (NYSE: GMS), a leading North American specialty distributor of interior building products is scheduled to present at the Stephens Annual Investment Conference on Tuesday, November 17, 2020 at 11:00 Eastern Time.

The presentation will be webcast live on the Investors section of the Company’s website at www.gms.com. Following the webcast, an archived replay will be available for approximately 90 days.

About GMS:

Founded in 1971, GMS operates a network of more than 260 distribution centers across the United States and Canada. GMS’s extensive product offering of wallboard, suspended ceilings systems, or ceilings, and complementary construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.

For more information about GMS, please visit www.gms.com.

Investor Relations:

Leslie Kratcoski

770-723-3306

[email protected]

Media Relations:

770-723-3378

[email protected]

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Residential Building & Real Estate Commercial Building & Real Estate Construction & Property Interior Design

MEDIA:

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Floor & Decor Holdings, Inc. Announces Participation in the Stephens Investment Conference

Floor & Decor Holdings, Inc. Announces Participation in the Stephens Investment Conference

ATLANTA–(BUSINESS WIRE)–
Floor & Decor Holdings, Inc. (NYSE: FND) today announced that the Company is scheduled to present at the Stephens Investment Conference on Wednesday, November 18, 2020, at 10:00 am Eastern Time.

The audio portion of the presentation will be webcast live over the internet and can be accessed on the Company’s Investor Relations website, ir.flooranddecor.com. An online archive will be available on that site following the presentation.

About Floor & Decor Holdings, Inc.

Floor & Decor is a multi-channel specialty retailer operating 128 warehouse-format stores and two design centers across 30 states at the end of the third quarter of fiscal 2020. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate/luxury vinyl plank, and natural stone along with decorative and installation accessories, at everyday low prices. The Company was founded in 2000 and is headquartered in Atlanta, Georgia.

Investor Contact:

Wayne Hood

Vice President of Investor Relations

678-505-4415

[email protected]

or

Matt McConnell

Senior Manager of Investor Relations

770-257-1374

[email protected]

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Interior Design Retail Other Construction & Property Home Goods Specialty Construction & Property

MEDIA:

Epizyme to Participate in Jefferies Virtual London Healthcare Conference

Epizyme to Participate in Jefferies Virtual London Healthcare Conference

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Epizyme, (Nasdaq: EPZM), a fully integrated, commercial-stage biopharmaceutical company developing and delivering novel epigenetic therapies, today announced that Robert Bazemore, president and chief executive officer, will participate in a fireside chat during the Jefferies Virtual London Healthcare Conference on Thursday, Nov. 18, 2020 at 12:35 p.m. ET.

A live webcast of the fireside chat will be available in the investor section of the company’s website and will be archived for 60 days following the presentation.

About Epizyme, Inc.

Epizyme, Inc. is a fully integrated, commercial-stage biopharmaceutical company committed to its mission of rewriting treatment for cancer and other serious diseases through novel epigenetic medicines. In addition to an active research and discovery pipeline, Epizyme has one U.S. FDA approved product, TAZVERIK® (tazemetostat), for the treatment of adults and pediatric patients aged 16 years and older with metastatic or locally advanced epithelioid sarcoma (ES) who are not eligible for complete resection; adult patients with relapsed or refractory follicular lymphoma whose tumors are positive for an EZH2 mutation as detected by an FDA-approved test and who have received at least two prior systemic therapies; and adult patients with relapsed or refractory follicular lymphoma who have no satisfactory alternative treatment options. These indications are approved under accelerated approval based on overall response rate and duration of response. Continued approval for these indications may be contingent upon verification and description of clinical benefit in a confirmatory trial(s). The company is also exploring the treatment potential of tazemetostat in investigational clinical trials in other solid tumors and hematological malignancies, as a monotherapy and combination therapy in both relapsed and front-line disease settings. By focusing on the genetic drivers of disease, Epizyme seeks to match medicines with the patients who need them. For more information, visit www.epizyme.com.

TAZVERIK® is a registered trademark of Epizyme, Inc. For full prescribing information, please visit TAZVERIK.com.

Media:

Erin Graves, Epizyme, Inc.

[email protected]

(617) 500-0615

Investors:

Alicia Davis, THRUST Strategic Communications

[email protected]

(910) 620-3302

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Oncology

MEDIA:

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Savara to Present at the Jefferies Virtual London Healthcare Conference

Savara to Present at the Jefferies Virtual London Healthcare Conference

AUSTIN, Texas–(BUSINESS WIRE)–Savara Inc. (Nasdaq: SVRA), an orphan lung disease company, today announced that Matthew Pauls, Chairman and Interim CEO, will be presenting at the Jefferies Virtual London Healthcare Conference on Wednesday, November 18, 2020 at 2:55 PM EST/11:55 AM PST.

Interested parties can access a live audio webcast on the Investors page of the Savara website at www.savarapharma.com/investors/events-presentations/. Please connect to the Company’s website at least 15 minutes prior to the start of the presentation to ensure sufficient time for any software download that may be required for the webcast. An archived presentation will be available on Savara’s website for 90 days.

About Savara

Savara is an orphan lung disease company with a pipeline comprised of three investigational compounds, all of which use an inhaled delivery route. Our lead program, Molgradex, is an inhaled granulocyte-macrophage colony-stimulating factor (GM-CSF) in Phase 3 development for autoimmune pulmonary alveolar proteinosis (aPAP). AeroVanc (vancomycin hydrochloride inhalation powder) is in Phase 3 development for persistent methicillin-resistant Staphylococcus aureus (MRSA) lung infection in people living with cystic fibrosis (CF). Apulmiq is a Phase 3-ready inhaled ciprofloxacin for non-CF bronchiectasis (NCFB). Savara’s strategy is to develop its pipeline products with the goal of becoming a leading company in its field. Our management team has significant experience in orphan drug development and pulmonary medicine, identifying unmet needs, and effectively advancing product candidates to approval and commercialization. More information can be found at www.savarapharma.com. (Twitter: @SavaraPharma, LinkedIn: www.linkedin.com/company/savara-pharmaceuticals/).

Savara Inc. IR & PR

Anne Erickson ([email protected])

(512) 851-1366

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health

MEDIA:

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EuroDry Ltd. Reports Results for the Nine-Month Period and Quarter Ended September 30, 2020

ATHENS, Greece, Nov. 11, 2020 (GLOBE NEWSWIRE) — EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three and nine-month periods ended September 30, 2020.

Third
Quarter
2020
Highlights:

  • Total net revenues of $6.8 million. Net income of $0.5 million; net income attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $0.1 million or $0.06 earnings per share basic and diluted. Adjusted net income attributable to common shareholders1 for the period was $0.1 million or $0.05 adjusted earnings per share basic and diluted.
  • Adjusted EBITDA1 was $2.8 million.
  • An average of 7.0 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $11,873 per day.
  • The Company declared a dividend of $0.4 million on its Series B Preferred Shares. The dividend will be paid in-kind by issuing additional Series B Preferred Shares.

Nine
M
onths
2020
Highlights:

  • Total net revenues of $15.9 million. Net loss of $5.6 million; net loss attributable to common shareholders (after a $1.2 million dividend on Series B Preferred Shares) of $6.7 million or $2.97 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $6.1 million or $2.70 adjusted loss per share basic and diluted.
  • Adjusted EBITDA1 was $1.8 million.
  • An average of 7.0 vessels were owned and operated during the first half of 2020 earning an average time charter equivalent rate of $8,927 per day.

Aristides Pittas, Chairman and CEO of
EuroDry
commented
: “During the third quarter of 2020, EuroDry benefited from gradually improving charter markets as a result of the re-opening of most economies after the pandemic-related lockdowns. Since the beginning of October and during early November, the market rates have given up some of the gains, but they remain at satisfactory levels given the increased economic uncertainty due to the second wave of the pandemic and renewed economic lockdowns, especially, in Europe.

Thus, we expect that the drybulk markets will be affected in the near term by the state of the world economies as influenced by the COVID-19 pandemic, and, in the medium term, by the low fleet growth due to historically low orderbook. Consequently, we anticipate that trade developments will be the key factor influencing the rates our vessels will earn.

To better exploit the above market trends, we are focused on reducing our capital costs and creating additional liquidity via selected debt refinancings and repayment of more expensive funding instruments in our balance sheet, and using any excess funds to renew or expand our fleet. We also continue to evaluate opportunities of using our public platform to consolidate other fleets as we believe this can offer significant appreciation potential to our shareholders and flexibility to partners joining our public platform.”

Tasos Aslidis, Chief Financial Officer of
EuroDry
commented
: “Comparing our results for the third quarter of 2020 with the same period of 2019, our net revenues decreased by about $0.9 million, due to the lower time charter equivalent rates our vessels earned as compared to the third quarter of 2019. Operating expenses, including management fees and general and administrative expenses increased by approximately $0.4 million as compared to the third quarter of 2019. This increase is mainly due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs, the latter resulting from difficulties in crew rotation due to COVID-19 related restrictions. Still, we believe that we maintain one of the lowest operating cost structures amongst the public shipping companies which is one of our competitive advantages.

Adjusted EBITDA during the third quarter of 2020 was $2.8 million compared to $2.2 million achieved for the third quarter of last year. Finally, as of September 30, 2020, our outstanding debt (excluding the unamortized loan fees) is about $52.1 million versus restricted and unrestricted cash of about $3.7 million.”

_________________________
1Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Third
Quarter
2020
Results:
For the third quarter of 2020, the Company reported total net revenues of $6.8 million representing a 11.3% decrease over total net revenues of $7.7 million during the third quarter of 2019 which was the result of the lower time charter rates our vessels earned in the third quarter of 2020 compared to the corresponding period of 2019. The Company reported net income for the period of $0.5 million and net income attributable to common shareholders of $0.1 million, as compared to a net loss of $0.4 million and a net loss attributable to common shareholders of $0.8 million for the same period of 2019. For the third quarter of 2020, a gain on bunkers resulted in positive voyage expenses of $0.4 million for the period as compared to voyage expenses of $0.7 million in the same period of 2019. Losses on derivatives of $0.2 million and drydocking expenses of $0.1 million contributed to the result for the quarter as compared to losses on derivatives of $0.6 million and drydocking expenses of $0.7 million during the third quarter of 2019. Depreciation expenses for the third quarter of 2020 amounted to $1.7 million compared to $1.6 million for the same period of 2019.

Interest and other financing costs for the third quarter of 2020 amounted to $0.6 million, compared to $0.8 million for the same period of 2019. Interest during the second quarter of 2020 was lower due to the lower average outstanding debt and the decreased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended September 30, 2020, the Company recognized a marginal loss on three interest rate swaps and a $0.2 million realized loss on FFA contracts as compared to a loss on derivatives of $0.6 million for the same period of 2019, comprising of a $0.5 million loss on FFA contracts and a $0.1 million loss on one interest rate swap.

On average, 7.0 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $11,873 per day compared to 7.0 vessels in the same period of 2019 earning on average $12,088 per day.

Adjusted EBITDA for the third quarter of 2020 was $2.8 million compared to $2.2 million achieved during the third quarter of 2019.

Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2020 was $0.06 calculated on 2,279,730 basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.35 for the third quarter of 2019, calculated on 2,254,830 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss / (gain) on derivatives, the adjusted earnings per share attributable to common shareholders for the quarter ended September 30, 2020 would have been $0.05 compared to adjusted loss of $0.26 per share basic and diluted for the quarter ended September 30, 2019. Usually, security analysts do not include the above item in their published estimates of earnings per share.

First
Nine Months
2020
Results:
For the first nine months of 2020, the Company reported total net revenues of $15.9 million representing a 19.1% decrease over total net revenues of $19.6 million during the first nine months of 2019, as a result of the lower time charter rates our vessels earned in the first nine months of 2020 compared to the same period of 2019. The Company reported net loss for the period of $5.6 million and net loss attributable to common shareholders of $6.7 million, as compared to a net loss of $1.4 million and a net loss attributable to common shareholders of $2.9 million, for the first nine months of 2019. Vessel operating expenses were $8.7 million for the first nine months of 2020 as compared to $8.0 million for the first nine months of 2019 due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs resulting from difficulties in crew rotation due to COVID-19 related restrictions. Depreciation expenses for the first nine months of 2020 were $4.9 million compared to $4.8 million during the same period of 2019.

Interest and other financing costs for the first nine months of 2020 amounted to $1.9 million compared to $2.7 million for the same period of 2019. This decrease is due to the lower average outstanding debt and the decreased Libor rates of our loans in the current period compared to the same period of 2019. For the nine months ended September 30, 2020, the Company recognized a $0.5 million loss on three interest rate swaps and a $0.3 million loss on FFA contracts as compared to a gain on derivatives of $0.3 million for the same period of 2019, comprising of a $0.6 million gain on FFA contracts and a $0.3 million loss on one interest rate swap.        

On average, 7.0 vessels were owned and operated during the first nine months of 2020 earning an average time charter equivalent rate of $8,927 per day compared to 7.0 vessels in the same period of 2019 earning on average $10,750 per day. In the first nine months of 2020, two vessels underwent special survey for a total cost of $1.8 million, as compared to two vessels that underwent special survey in the first nine months of 2019 for a total cost of $1.6 million.

Adjusted EBITDA for the first nine months of 2020 was $1.8 million compared to $6.5 million achieved during the first nine months of 2019.

Basic and diluted loss per share attributable to common shareholders for the first nine months of 2020 was $2.97, calculated on 2,271,542 basic and diluted weighted average number of shares outstanding compared to $1.31 basic and diluted loss per share for the first nine months of 2019, calculated on 2,248,182 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the loss attributable to common shareholders for the first nine months of the year of the unrealized loss on derivatives, the adjusted loss per share attributable to common shareholders for the nine-month period ended September 30, 2020 would have been $2.70 compared to a loss of $1.13 per share basic and diluted for the same period in 2019. As previously mentioned, usually, security analysts do not include the above item in their published estimates of earnings per share.

Fleet Profile:

The EuroDry Ltd. fleet profile is as follows:

Name Type Dwt Year
Built
Employment(*) TCE Rate ($/day)

Dry Bulk Vessels
         
EKATERINI Kamsarmax 82,000 2018 TC until Apr-21 Hire 106% of the Average Baltic Kamsarmax P5TC index (***)
XENIA Kamsarmax 82,000 2016 TC until Dec-2020 Hire 101% of the Average Baltic Kamsarmax P5TC index(***) with a floor at $11,000
ALEXANDROS P. Ultramax 63,500 2017 Guardian Navigation GMax LLC Pool Pool revenue from August 2018
EIRINI P Panamax 76,466 2004 TC until Apr-21 Hire 99%
of Average
BPI** 4TC
STARLIGHT Panamax 75,845 2004 TC until Aug-21 Hire 98.5%
of Average
BPI** 4TC
TASOS Panamax 75,100 2000 TC until Nov-20 $9,000
PANTELIS Panamax 74,020 2000 TC until Nov-20 $11,500
Total Dry Bulk Vessels 7
528
,
931
     

Note:  
(*) Represents the earliest redelivery date
(**) BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four time charter routes.
(***) The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.
   

Summary Fleet Data:

  3 months,   3 months,   9
months,
  9
months,
 
  ended   ended   ended   ended  
  September   September   September   September  
  30,
2019
  30,
2020
  30,
2019
  30,
2020
 
FLEET DATA                
Average number of vessels (1) 7.0   7.0   7.0   7.0  
Calendar days for fleet (2) 644.0   644.0   1,911.0   1,918.0  
Scheduled off-hire days incl. laid-up (3) 29.9   0.0   65.9   51.2  
Available days for fleet (4) = (2) – (3) 614.1   644.0   1,845.1   1,866.8  
Commercial off-hire days (5) 0.0   0.0   0.7   0.0  
Operational off-hire days (6) 2.9   6.5   15.4   7.1  
Voyage days for fleet (7) = (4) – (5) – (6) 611.2   637.5   1,829.0   1,859.7  
Fleet utilization (8) = (7) / (4) 99.5%   98.9%   99.1%   99.6%  
Fleet utilization, commercial (9) = ((4) – (5)) / (4) 100.0%   100.0%   100.0%   100.0%  
Fleet utilization, operational (10) = ((4) – (6)) / (4) 99.5%   98.9%   99.2%   99.6%  
         
AVERAGE DAILY RESULTS        
Time charter equivalent rate (11) 12,088   11,873   10,750   8,927  
Vessel operating expenses excl. drydocking expenses (12) 4,855   5,673   4,939   5,337  
General and administrative expenses (13) 867   724   900   858  
Total vessel operating expenses (14) 5,722   6,397   5,839   6,195  
Drydocking expenses (15) 1,073   82   835   931  

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up.

(4) Available days. We define available days as the total number of days in a period during which each vessel in our fleet was in our possession net of scheduled off-hire days incl. laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent, or TCE, is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:

Tomorrow, November 12, 2020 at 10:30 a.m. Eastern Time, the Company’s management will host a conference call and webcast to discuss the results. 

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote “EuroDry” to the operator. 

A replay of the conference call will be available until November 18, 2020. The United States replay number is 1(866) 331-1332; from the UK 0(808) 238-0667; the standard international replay number is (+44) (0) 3333 00 9785 and the access code required for the replay is: 2489743#.  

Audio webcast – Slides Presentation:

There will be a live and then archived audio webcast of the conference call, via the internet through the EuroDry website (www.eurodry.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. A slide presentation on the Third Quarter 2020 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the company’s website (www.eurodry.gr) on the webcast page. Participants to the webcast can download the PDF presentation.


EuroDry
Ltd.

Unaudited
Consolidated
Condensed Statements of Operations

(All amounts expressed in U.S. Dollars – except
number of
shares
)

  Three Months Three Months Nine
Months
Nine
Months
  Ended Ended Ended Ended
  September
30,
September
30,
September
30,
September
30,
  2019 2020 2019 2020
  (unaudited) (unaudited)
Revenues                
Time charter revenue 8,085,650   7,193,251   20,729,160   16,795,245  
Commissions (425,449)   (399,715)   (1,095,101)   (917,915)  
                 
Net revenues 7
,
660
,
201
  6
,
793
,
536
  1
9,634,059
  1
5,877,330
 
         
Operating expenses        
Voyage expenses, net 697,518   (375,866)   1,067,717   194,137  
Vessel operating expenses 2,634,821   3,135,569   7,961,650   8,744,999  
Drydocking expenses 690,989   52,685   1,595,588   1,786,008  
Vessel depreciation 1,615,947   1,651,870   4,813,165   4,904,386  
                          Related party management fees 492,065   518,161   1,476,608   1,491,665  
General and administrative expenses 558,033   466,381   1,720,091   1,646,536  
Total Operating expenses (
6,689,373)
  (
5,448,800)
  (1
8
,
634
,
819)
  (1
8
,
767
,
731)
 
         
Operating income
/ (loss)
970
,
828
  1,344
,
736
  999
,
240
  (2,890
,
401)
 
         
Other income / (expenses)        
Interest and other financing costs (848,473)   (616,219)   (2,729,021)   (1,864,040)  
(Loss) / gain on derivatives, net (568,340)   (178,760)   334,648   (821,906)  
Foreign exchange gain/(loss) 3,886   (12,336)   3,325   (8,445)  
Interest income 8,064   391   20,850   4,041  
Other expenses, net (1,404,863)   (806,924)   (
2,370,198)
  (
2,
690
,
350)
 
Net (loss) / income (434,035)   537,812   (1,370,958)   (
5
,
580
,
751)
 
Dividend Series B Preferred shares (358,726)   (407,665)   (1,390,255)   (1,155,677)  
Preferred deemed dividend     (185,665)    
Net (loss)
/
income
attributable to common shareholders
(792,761)   130,147   (2,946,878)   (
6
,
736
,
428)
 
(Loss) / earnings per share, basic and diluted (0.35)   0.06   (1.31)   (2.97)  
Weighted average number of shares, basic and diluted 2,254,830   2,279,730   2,248,182   2,271,542  


EuroDry
Ltd.

Unaudited Consolidated
Condensed Balance Sheets

(All amounts expressed in U.S. Dollars – except
number of
share
s
)

  December 31, September 30,
  2019
2020
     
ASSETS (unaudited)
Current Assets:    
Cash and cash equivalents 5,396,406   249,742  
Trade accounts receivable, net 1,843,008   1,846,273  
Other receivables 459,785   535,452  
Inventories 508,711   604,917  
Restricted cash 1,083,036   744,363  
Prepaid expenses 286,711   104,417  
Total current assets 9
,
577
,
657
  4
,
085,164
 
     
Fixed assets:    
Vessels, net 105,461,265   100,957,860  
Long-term assets:    
Restricted cash 2,650,000   2,750,000  
Total assets 117,688,922   10
7
,
793
,
024
 
     
LIABILITIES
, MEZZANINE EQUITY
AND SHAREHOLDERS’ EQUITY
   
Current liabilities:    
Long term bank loans, current portion 6,806,294   5,956,294  
Trade accounts payable 1,046,561   1,200,230  
Accrued expenses 964,423   863,343  
Accrued preferred dividends 358,726    
Derivatives   514,044  
Deferred revenue 445,824   342,839  
Due to related companies 1,547,210   1,865,122  
Total current liabilities 11,169,038   10
,
741,872
 
     
Long-term liabilities:    
Long term bank loans, net of current portion 49,688,840   45,880,368  
Derivatives 304,174   392,490  
Total long-term liabilities 49,993,014   46
,
272,858
 
Total liabilities 61,162,052   57
,
0
14
,
730
 
     
Mezzanine equity:        
Series B Preferred shares (par value $0.01, 20,000,000 preferred shares authorized, 15,387 and 16,187 shares issued and outstanding, respectively) 14,721,665   15
,
522
,
516
 
     
Shareholders’ equity:    
Common stock (par value $0.01, 200,000,000 shares authorized, 2,304,630 issued and outstanding, respectively) 23,046   23,046  
Additional paid-in capital 52,802,574   52,989,575  
Accumulated deficit (11,020,415)   (17,756,843)  
Total shareholders’ equity 41,805,205   35
,
255
,
778
 
Total liabilities
,
mezzanine
equity
and shareholders’ equity
117,688,922   107
,
793
,
024
 


EuroDry
Ltd.

Unaudited
Consolidated
Condensed Statements of Cash Flows

(All amounts expressed in U.S. Dollars)

  Nine
Months
  Nine
Months
 
  Ended   Ended  
  September
30,
  September
30,
 
  2019   2020  
         
Cash flows from operating activities:        
Net loss (1,370,958)   (5,580,751)  
Adjustments to reconcile net loss to net cash provided by operating activities:    
Vessel depreciation 4,813,165   4,904,386  
Amortization of deferred charges 117,703   105,528  
Share-based compensation 133,632   187,001  
Unrealized loss on derivatives 410,498   602,361  
Changes in operating assets and liabilities 8,856,256   370,007  

Net cash provided by operating activities
12,960,296   588,532  
     
Cash flows from investing activities:    
     
Cash paid for vessel under construction (47,562)    
Vessel improvements (961,274)   (496,316)  

Net cash used in investing activities
(1,008,836)   (
496,316)
 
     
Cash flows from financing activities:    
Redemption of preferred shares (4,300,000)    
Preferred dividends paid (952,886)   (713,553)  
Loan arrangement fees paid (22,500)    
Proceeds from long term bank loans 4,500,000    
Repayment of long term bank loans (9,959,000)   (4,764,000)  

Net cash used in financing activities
(10,734,386)   (5,477,553)  
     
Net increase / (decrease) in cash, cash equivalents and restricted cash 1,217,074   (5,385,337)  
Cash, cash equivalents and restricted cash at beginning of period 7,754,927   9,129,442  
Cash, cash equivalents and restricted cash at end of period 8
,
972
,
001
  3
,
744
,
105
 
Cash breakdown        
Cash and cash equivalents 5,605,154   249,742  
Restricted cash, current 716,847   744,363  
Restricted cash, long term 2,650,000   2,750,000  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows 8
,
972
,
001
  3
,
744
,
105
 



EuroDry

Ltd.

Reconciliation of Net
income
/ (loss)
to Adjusted EBITDA

(All amounts expressed in U.S. Dollars)

  Three Months
Ended

September
30,

2019
Three Months
Ended

September
30,

2020
Nine
Months
Ended

September
30,

2019
Nine
Months
Ended

September
30,

2020
Net (loss) / income (434,035)   537,812   (1,370,958)   (5,580,751)  
Interest and other financing costs, net (incl. interest income) 840,409   615,828   2,708,171   1,859,999  
Vessel depreciation 1,615,947   1,651,870   4,813,165   4,904,386  
Unrealized loss / (gain) on Forward Freight Agreement derivatives 147,750   (1,590)   49,350   130,380  
Loss on interest rate swap derivatives 47,085   16,559   339,602   527,735  
                 
Adjusted EBITDA 2,217,156   2,820,479   6,539,330   1
,
841
,
749
 

Adjusted EBITDA Reconciliation:

EuroDry Ltd. considers Adjusted EBITDA to represent net income / (loss) before interest, income taxes, depreciation, unrealized (gain) / loss on Forward Freight Agreements (FFAs) and (gain) / loss on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income / (loss), as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, unrealized (gain) / loss on FFAs and (gain) / loss on interest rate swaps, and depreciation. The Company’s definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. 



EuroDry

Ltd.

Reconciliation of
Net
income
/ (loss)
to Adjusted net
income
/ (loss)

(All amounts expressed in U.S. Dollars – except share data and
number of
share
s
)

  Three Months
Ended

September
30,

2019
Three Months
Ended

September
30,

2020
Nine
Months
Ended

September
30,

2019
Nine
Months
Ended

September
30,

2020
Net (loss) / income (434,035)   537,812   (1,370,958)   (5,580,751)  
Unrealized loss / (gain) on derivatives 200,837   (14,648)   410,498   602,361  
Adjusted net (loss)
/ income
(233,198)   52
3,
164
  (960,460)   (
4,978
,
390)
 
Preferred dividends (358,726)   (407,665)   (1,390,255)   (1,155,677)  
Preferred deemed dividend     (185,665)    
                 
Adjusted
net (loss) / income
attributable
to common shareholders
(591,924)   115
,
499
  (2,536,380)   (
6
,
134
,
067)
 
Adjusted (loss) / earnings per share, basic and diluted (0.26)   0.05   (1.13)   (2.70)  
Weighted average number of shares, basic and diluted 2,254,830   2,279,730   2,248,182   2,271,542  

Adjusted net
(loss) /
income and Adjusted
(loss) /
earnings per share Reconciliation:

EuroDry Ltd. considers Adjusted net (loss) / income to represent net (loss) / income before unrealized loss/ (gain) on derivatives which includes FFAs and interest rate swaps. Adjusted net (loss) / income and Adjusted (loss) / earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized loss/ (gain) on derivatives, which may significantly affect results of operations between periods. Adjusted net (loss) / income and Adjusted (loss) / earnings per share do not represent and should not be considered as an alternative to net (loss) / income or (loss) / earnings per share, as determined by GAAP. The Company’s definition of Adjusted net (loss) / income and Adjusted (loss) / earnings per share may not be the same as that used by other companies in the shipping or other industries.

About
EuroDry
Ltd.

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. 

EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

The Company has a fleet of 7 vessels, including 4 Panamax drybulk carriers, 1 Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers. EuroDry’s 7 drybulk carriers have a total cargo capacity of 528,931 dwt.

Forward Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. 

Visit our website www.eurodry.gr

Company Contact

Tasos Aslidis
Chief Financial Officer
EuroDry Ltd.
11 Canterbury Lane,
Watchung, NJ07069
Tel. (908) 301-9091
E-mail: aha@eurodry.gr
Investor Relations / Financial Media

Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY10169
Tel. (212) 661-7566
E-mail: [email protected]

SenesTech Restructures Board for Commercial Growth

Three Directors Added to the Board

PR Newswire

PHOENIX, Nov. 11, 2020 /PRNewswire/ — SenesTech, Inc. (NASDAQ: SNES), a developer of proprietary technologies for managing animal pest populations through fertility control, today announced that it has elected three new directors to its Board of Directors, in a move to position the Board to best support the commercial growth of ContraPest®, SenesTech’s lead fertility control product.

“All three have unique and complementary skills to best support SenesTech in its current commercial growth strategies,” said Dr. Jamie Bechtel, SenesTech’s Chair.

Phil Grandinetti, III, is Founder and Chief Customer Officer for WITHit, a growth leader in Wearable Tech Accessories, with prior executive sales experience at GSM Products and LightWedge. Mr. Grandinetti brings a deep background in the commercialization of innovative consumer products and a track record of leading exponential growth.

K.C. Kavanagh is the Senior Vice President and Global Chief Communications Officer at Bacardi Limited with prior executive communications experience at Starwood Hotels & Resorts Worldwide, Inc. Ms. Kavanagh has particular expertise in strategic communications including corporate, brand and product messaging, taking complex messages and making them understandable and exciting.

Jake Leach is the Chief Technology Officer at Dexcom, a leader in continuous glucose monitoring technology, and known for pairing novel technology with an exceptional user experience. This pairing of technology and user experience is expected to have direct relevance to the commercial development of ContraPest.

In addition, the Company announced that Dr. Julie Williams will be stepping down as a Director, but will remain as Director Emeritus with Board observer rights, to provide essential continuity in this board transition.

About SenesTech 

SenesTech is changing the model for pest management by targeting one of the root causes of the problem: reproduction.

ContraPest® is an innovative technology with an approach that targets the reproductive capabilities of both sexes in rat populations, inducing egg loss in female rats and impairing sperm development in males. Using a proprietary bait delivery method, ContraPest® is dispensed in a highly palatable liquid formulation that promotes sustained consumption by rat communities. ContraPest® is designed, formulated and dispensed to be low hazard for handlers and non-target species such as wildlife, livestock and pets, where the active ingredients break down rapidly.

We believe ContraPest® will establish a new paradigm in rodent control, resulting in a decreased reliance on lethal options. For more information visit the SenesTech website at www.senestech.com.

Safe Harbor Statement

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,” “future,” “plan” or “planned,” “will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or “projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in our filings with the Securities and Exchange Commission. Forward looking statements include, but are not limited to, our expectation regarding sales commitments, our expectation regarding the conversion of sales commitments and programs to revenue, our belief that our product is more humane, less harmful to the environment and more effective than traditional methods, and our belief that ContraPest will establish a new paradigm in rodent control without environmental effects of rodenticides.  All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

CONTACT: 

Investor: Robert Blum, Joe Dorame, Joe Diaz, Lytham Partners, LLC, 602-889-9700, [email protected]

Company: Tom Chesterman, Chief Financial Officer, SenesTech, Inc., 928-779-4143

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/senestech-restructures-board-for-commercial-growth-301171251.html

SOURCE SenesTech, Inc.

Revolve Group Announces Third Quarter 2020 Financial Results

Revolve Group Announces Third Quarter 2020 Financial Results

LOS ANGELES–(BUSINESS WIRE)–
Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the third quarter ended September 30, 2020.

“Strong execution on our merchandising and operational initiatives led to another quarter of record results. Despite the challenging backdrop and short-term pressures, we continued to drive efficiencies throughout the business in the third quarter, leading to higher margins and record profitability,” said co-founder and co-CEO Mike Karanikolas. “Our efforts resulted in record net income of $19 million, exceptional operating cash flows of $14 million, and record Adjusted EBITDA of $24 million, which increased 66% year-over-year. A key driver of our significantly increased profitability was our highest-ever gross margin for a third quarter, which reflects a high percentage of net sales at full price and improved inventory dynamics.”

“Our strong results underscore the power of our brand, the strength of our business, and most importantly, the incredible execution of our team,” said co-founder and co-CEO Michael Mente. “We achieved the strong profitability while continuing to invest in key initiatives to maximize our growth potential over the long term, such as elevating our international service levels, further innovation in broadening our marketing playbook, and category expansion within our Owned Brands.”

Third Quarter 2020 Financial Summary

 

 

Three Months Ended September 30,

 

 

2020

 

2019

 

YoY Change

 

 

(in thousands)

Net sales

 

$

151,036

 

 

$

154,197

 

 

(2

%)

Gross profit

 

$

83,467

 

 

$

82,678

 

 

1

%

Gross margin

 

 

55.3

%

 

 

53.6

%

 

 

Net income

 

$

19,438

 

 

$

9,559

 

 

103

%

Adjusted EBITDA (non-GAAP financial measure)

 

$

24,025

 

 

$

14,438

 

 

66

%

Net cash provided by operating activities

 

$

14,340

 

 

$

9,150

 

 

57

%

Free cash flow (non-GAAP financial measure)

 

$

13,877

 

 

$

7,448

 

 

86

%

Operational Metrics

 

 

Three Months Ended September 30,

 

 

2020

 

2019

 

YoY Change

 

 

(in thousands, except average order value)

Active customers (trailing 12 months)

 

 

1,504

 

 

1,438

 

5

%

Orders placed

 

 

1,141

 

 

1,194

 

(4

%)

Average order value

 

$

232

 

$

275

 

(16

%)

Additional Third Quarter 2020 Metrics and Results Commentary

Net Sales

  • The 2% year-over-year (YoY) decline in net sales in the third quarter reflects a 10-point improvement on a sequential basis compared to the 12% YoY decline in net sales reported for the second quarter of 2020.
  • REVOLVE segment net sales were $130.6 million, a YoY decrease of 3.6%.
  • FORWARD segment net sales were $20.5 million, a YoY increase of 9.0%. The handbag category was a particularly strong contributor to FORWARD’s growth in the third quarter.
  • International net sales increased 18% YoY, outperforming the domestic net sales decline of 6% YoY. By territory, Australia, Canada and Western Europe each delivered strong double-digit growth in net sales YoY, partially offset by a more challenging comparison in Asia.
  • As previously disclosed, the prior-year comparison in the third quarter of 2019 included $1.5 million in net sales realized as a result of a change in estimate related to store credit breakage. Adjusting for the change in estimate in the prior-year quarter, total net sales declined 1% YoY in the third quarter of 2020.

Profitability and Operating Expense Drivers

  • Diluted earnings per share (EPS): Diluted EPS was $0.27, more than double the diluted EPS of $0.13 reported for the third quarter of 2019. The third quarter of 2020 benefitted from a lower effective tax rate of 9.8%, primarily due to excess tax benefits realized as a result of the exercise of non-qualified stock options during the third quarter of 2020. This compares to an effective tax rate of 25.6% in the prior-year period.
  • Gross margin: Gross margin was 55.3%, the highest-ever reported for a third quarter, up nearly two percentage points YoY from 53.6% in the third quarter of 2019. The strong gross margin benefitted from meaningfully improved inventory dynamics exiting the second quarter of 2020 that contributed to a YoY increase in the percentage of net sales at full-price and a YoY decrease in the depth of markdowns. In addition, we believe the external environment became less promotional in the third quarter on a sequential basis compared to the second quarter of 2020, particularly in the luxury segment. These positive contributors to gross margin were partially offset by a YoY decrease in the mix of Owned Brands as a percentage of REVOLVE segment net sales, consistent with the outlook shared on recent investor conference calls.
  • Operating expenses: Operating expenses remained highly efficient in the third quarter, reflecting outstanding execution by teams throughout the company while maintaining exceptional service levels for our customers.
    • Continuing benefit from lower return rates YoY: For the second consecutive quarter, operating efficiency within fulfillment and selling and distribution expenses continued to benefit from customers returning a lower proportion of their purchases. We attribute the significantly lower return rate YoY to a combination of more deliberate purchasing behavior by consumers during the COVID-19 pandemic as well as a COVID-19 driven shift in mix to product categories with lower price points and lower return rates, such as beauty, and away from occasion wear, such as dresses, a category with a higher-than-average return rate. Key financial and operational benefits resulting from the lower return rate in the YoY comparison include lower required handling of units in our warehouse reflected within the fulfillment expense line and, in particular, reduced packaging, shipping and payment processor costs within selling and distribution expenses, where the majority of costs are shipping related. We expect that operating efficiencies realized from lower returns in the fulfillment and selling and distribution expense lines may compress in the future if return rates continue to normalize towards pre-COVID 19 levels in the coming quarters. Since bottoming out in the second quarter of 2020, our estimated return rate increased for each month of the third quarter of 2020 and appears to be headed higher in the fourth quarter of 2020 as well. We do, however, expect the return rate in the fourth quarter of 2020 to remain lower on a YoY basis.
    • Marketing: Marketing efficiency YoY in the third quarter once again primarily reflects reduced investment in brand marketing events since hosting in-person REVOLVE events remained on pause to ensure the safety of our community and in adherence with social distancing requirements. It is important to note that brand building investments will remain a key driver of our growth strategy, and are particularly important for the acquisition of new customers. As a result, we do not expect the total marketing expense as a percentage of net sales to remain at the significantly reduced levels we have reported for the past two quarters during the COVID-19 pandemic.
    • COVID-19 related cost containment actions: As previously announced, general and administrative expenses benefitted from COVID-19 cost containment efforts that were enacted for a portion of the third quarter, including reduced wages for executives and paused retainers for outside board members. By the end of the third quarter, we had restored all wages and salaries for active employees to the pre-COVID run rates and had resumed payment of retainers to outside board members.
  • Record net income and Adjusted EBITDA: The strong YoY increase in gross margin, effective cost controls and operating efficiencies collectively resulted in record net income and Adjusted EBITDA in the third quarter, an increase of 103% and 66%, respectively — despite the slight YoY decline in net sales.

Cash Flow and Balance Sheet

  • The combination of exceptional profitability, efficient management of inventory and our capital efficiency led to another strong quarter of cash flow generation. Free cash flow was $13.9 million, a YoY increase of 86%. For the nine months ended September 30, 2020, free cash flow was $74.4 million, more than doubling our free cash flow reported for all of 2019.
  • The strong cash flow further strengthened our balance sheet and liquidity. Cash and cash equivalents as of September 30, 2020 were $158.7 million, an increase of $7.9 million from $150.8 million as of June 30, 2020, despite the repayment of $9 million on our line of credit during the third quarter.
  • Cash and cash equivalents have increased by $107.6 million YoY when compared to the $51.1 million as of September 30, 2019.
  • As of September 30, 2020, $15 million remained drawn on the line of credit, a decrease of $9 million from $24 million drawn as of June 30, 2020. We had no amounts drawn on the line of credit in the year-ago period.
  • Inventory was $73.6 million, an increase of $9.1 million, or 14%, from June 30, 2020.
  • Inventory decreased $30.2 million YoY, or 29%, from the inventory balance of $103.7 million as of September 30, 2019. By comparison, net sales declined just 2% YoY, illustrating our increased inventory efficiency.
  • Going forward, we intend to continue to invest in our inventory position, particularly in targeted categories that reflect current lifestyle trends such as loungewear, athleisure, and knits.

Additional trend information regarding REVOLVE’s third quarter 2020 financial results and operating metrics is available in the Q3 2020 Financial Highlights presentation available on REVOLVE’s investor relations website. https://investors.revolve.com/events-and-presentations/default.aspx

Results Since the End of Q3 2020

COVID-19 has continued to have a negative impact on REVOLVE’s operations and financial results in recent weeks since the end of the third quarter. The macro environment remains highly uncertain, as demonstrated by many U.S. states and international countries reporting higher levels of COVID-19 cases in recent weeks, and in many instances, imposing additional social distancing restrictions. We believe the absence of an expanded U.S. stimulus measure in recent months, combined with high unemployment rates, adds to the challenging climate for our customer demographic.

During the month of October 2020, net sales declined by a high single digit percentage year-over-year. The performance of product categories in the third quarter of 2020 demonstrates that customer shopping and purchasing behavior continues to be influenced by the COVID-19 pandemic.

Sales of apparel products frequently worn at home and styles for active lifestyles have remained strong. In particular, categories such as beauty, accessories, intimates, sweaters / knits and swimwear remained strong in the third quarter. Beauty was the standout with net sales increasing more than 100% YoY for the second consecutive quarter. On the other hand, outfits for special occasions, such as dresses and skirts, continued to face tough YoY comparisons as many social events have remained on pause.

We continue to be excited about the growth potential for newer categories, such as beauty that is undergoing an accelerating shift from offline to online distribution and a category in which our target customer demographic regularly looks to influencers for beauty product inspiration. Rapid expansion of net sales into newer categories like beauty creates an exciting opportunity to acquire new customers and develop deeper relationships with existing customers over time by serving more of their needs, potentially capturing a greater share of their discretionary spending over the long term.

Conference Call Information

Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm PT to discuss today’s results in more detail. To participate, please dial (833) 513-0541 within the United States or (778) 560-2564 outside the United States approximately 10 minutes before the scheduled start of the call. The conference ID for the call is 8081214. The conference call will also be accessible, live via audio broadcast, on the Investor Relations section of the Revolve Group website at investors.revolve.com. A replay of the conference call will be available online at investors.revolve.com. In addition, an audio replay of the call will be available for one week following the call and can be accessed by dialing (800) 585-8367 within the United States or (416) 621-4642 outside the United States. The replay ID is 8081214.

Forward-Looking Statements

This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our expectations around the continued impact of the COVID-19 pandemic on our business, operations and financial results, and our updated financial assumptions for the full year. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based upon our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the continued impact of the COVID-19 pandemic on our business, operations and financial results; demand for our products; general economic conditions; our fluctuating operating results; seasonality in our business; our ability to acquire products on reasonable terms; our online business model; our ability to attract customers in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; and other risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Revolve Group, Inc. undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Non-GAAP Financial Measures and Other Operating Metrics

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: adjusted EBITDA, free cash flow and adjusted diluted EPS.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release

Definitions of our Non-GAAP financial measures and other operating metrics are presented below.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other (income) expense, net; (benefit from) provision for income taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense and certain non-routine items. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes an item that we do not consider to be indicative of our core operating performance.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less purchases of property and equipment. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital.

Adjusted Diluted EPS

Adjusted diluted EPS is a non-GAAP financial measure that we calculate as diluted earnings (net loss) per share adjusted to exclude the per share impact of the issuance and repurchase of Class B common stock as part of our initial public offering.

Active Customers

We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period.

Orders Placed

We define total orders placed as the total number of customer orders placed by our customers across our platform in any period.

Average Order Value

We define average order value as the sum of the total gross sales from our sites in a given period divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product. Average order value varies depending on the site through which we sell merchandise.

About Revolve Group, Inc.

Revolve Group, Inc. (RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted, premium lifestyle brand, and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories and beauty styles. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers, and hundreds of emerging, established and owned brands.

We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two differentiated segments, REVOLVE and FORWARD, that leverage one platform. Through REVOLVE we offer a highly curated assortment of premium apparel and footwear, accessories and beauty products from emerging, established and owned brands. Through FORWARD we offer an assortment of iconic and emerging luxury brands. For more information, visit www.revolve.com.

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Net sales

 

$

151,036

 

$

154,197

 

 

$

439,895

 

$

453,437

 

Cost of sales

 

 

67,569

 

 

71,519

 

 

 

213,407

 

 

209,587

 

Gross profit

 

 

83,467

 

 

82,678

 

 

 

226,488

 

 

243,850

 

Operating expenses:

 

 

 

 

 

 

 

 

Fulfillment

 

 

4,158

 

 

5,118

 

 

 

12,450

 

 

14,914

 

Selling and distribution

 

 

20,870

 

 

22,581

 

 

 

61,703

 

 

66,811

 

Marketing

 

 

18,903

 

 

23,127

 

 

 

55,491

 

 

67,539

 

General and administrative

 

 

17,741

 

 

19,019

 

 

 

52,391

 

 

57,124

 

Total operating expenses

 

 

61,672

 

 

69,845

 

 

 

182,035

 

 

206,388

 

Income from operations

 

 

21,795

 

 

12,833

 

 

 

44,453

 

 

37,462

 

Other expense (income), net

 

 

253

 

 

(7

)

 

 

300

 

 

653

 

Income before income taxes

 

 

21,542

 

 

12,840

 

 

 

44,153

 

 

36,809

 

Provision for income taxes

 

 

2,104

 

 

3,281

 

 

 

6,323

 

 

9,547

 

Net income

 

 

19,438

 

 

9,559

 

 

 

37,830

 

 

27,262

 

Less: Repurchase of Class B common stock upon

corporate conversion

 

 

 

 

 

 

 

 

 

(40,816

)

Net income (loss) attributable to common

stockholders

 

$

19,438

 

$

9,559

 

 

$

37,830

 

$

(13,554

)

Earnings (net loss) per share of Class A and Class B

common stock:

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

0.14

 

 

$

0.54

 

$

(0.25

)

Diluted

 

$

0.27

 

$

0.13

 

 

$

0.52

 

$

(0.25

)

Weighted average Class A and Class B common shares

outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

69,872

 

 

68,871

 

 

 

69,537

 

 

53,376

 

Diluted

 

 

72,281

 

 

72,658

 

 

 

73,155

 

 

53,376

 

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

 

 

 

September 30,

 

December 31,

 

 

2020

 

2019

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

158,701

 

$

65,418

Accounts receivable, net

 

 

4,713

 

 

4,751

Inventory

 

 

73,587

 

 

104,257

Income taxes receivable

 

 

2,464

 

 

761

Prepaid expenses and other current assets

 

 

19,909

 

 

24,155

Total current assets

 

 

259,374

 

 

199,342

Property and equipment, net

 

 

11,857

 

 

13,517

Intangible assets, net

 

 

1,315

 

 

1,457

Goodwill

 

 

2,042

 

 

2,042

Other assets

 

 

614

 

 

642

Deferred income taxes

 

 

16,132

 

 

15,290

Total assets

 

$

291,334

 

$

232,290

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

38,780

 

$

29,813

Line of credit

 

 

15,000

 

 

Income taxes payable

 

 

820

 

 

470

Accrued expenses

 

 

21,696

 

 

19,399

Returns reserve

 

 

23,361

 

 

35,104

Other current liabilities

 

 

16,771

 

 

16,740

Total current liabilities

 

 

116,428

 

 

101,526

Stockholders’ equity:

 

 

 

 

Class A common stock, $0.001 par value; 1,000,000,000 shares

authorized as of September 30, 2020 and December 31, 2019;

25,639,197 and 14,009,859 shares issued and outstanding as of September 30, 2020

and December 31, 2019 respectively.

 

 

26

 

 

14

Class B common stock, $0.001 par value; 125,000,000 shares authorized

as of September 30, 2020 and December 31, 2019; 44,568,912 and

55,069,124 shares issued and outstanding as of September 30, 2020 and December 31,

2019, respectively.

 

 

44

 

 

55

Additional paid-in capital

 

 

80,453

 

 

74,018

Retained earnings

 

 

94,383

 

 

56,677

Total stockholders’ equity

 

 

174,906

 

 

130,764

Total liabilities and stockholders’ equity

 

$

291,334

 

$

232,290

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

Nine Months Ended September 30,

 

 

2020

 

2019

Operating activities:

 

 

 

 

Net income

 

$

37,830

 

 

$

27,262

 

Adjustments to reconcile net income to net cash provided by operating

activities:

 

 

 

 

Depreciation and amortization

 

 

3,646

 

 

 

2,716

 

Equity-based compensation

 

 

2,412

 

 

 

1,545

 

Deferred income taxes

 

 

(842

)

 

 

(3,416

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

38

 

 

 

(263

)

Inventories

 

 

30,670

 

 

 

(15,540

)

Income taxes receivable

 

 

(1,703

)

 

 

(13

)

Prepaid expenses and other current assets

 

 

4,246

 

 

 

34

 

Other assets

 

 

28

 

 

 

62

 

Accounts payable

 

 

8,967

 

 

 

5,593

 

Income taxes payable

 

 

350

 

 

 

(411

)

Accrued expenses

 

 

2,297

 

 

 

2,708

 

Returns reserve

 

 

(11,743

)

 

 

8,285

 

Other current liabilities

 

 

31

 

 

 

3,271

 

Net cash provided by operating activities

 

 

76,227

 

 

 

31,833

 

Investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(1,844

)

 

 

(11,457

)

Net cash used in investing activities

 

 

(1,844

)

 

 

(11,457

)

Financing activities:

 

 

 

 

Proceeds from initial public offering, net of underwriting discounts

paid

 

 

 

 

 

57,077

 

Repurchase of Class B common stock upon corporate conversion

 

 

 

 

 

(40,816

)

Proceeds from borrowings on line of credit

 

 

30,000

 

 

 

 

Repayment of borrowings on line of credit

 

 

(15,000

)

 

 

 

Payment of deferred offering costs

 

 

(41

)

 

 

(1,697

)

Proceeds from the exercise of stock options, net

 

 

4,065

 

 

 

3

 

Net cash provided by financing activities

 

 

19,024

 

 

 

14,567

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(124

)

 

 

(167

)

Net increase in cash and cash equivalents

 

 

93,283

 

 

 

34,776

 

Cash and cash equivalents, beginning of period

 

 

65,418

 

 

 

16,369

 

Cash and cash equivalents, end of period

 

$

158,701

 

 

$

51,145

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid during the period for:

 

 

 

 

Interest

 

$

295

 

 

$

 

Income taxes, net of refund

 

$

8,500

 

 

$

13,388

 

REVOLVE GROUP, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

The following table summarizes our net sales and gross profit for each of our reportable segments (in thousands):

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Net sales

 

2020

 

2019

 

2020

 

2019

REVOLVE

 

$

130,572

 

$

135,426

 

$

381,965

 

$

402,021

FORWARD

 

 

20,464

 

 

18,771

 

 

57,930

 

 

51,416

Total

 

$

151,036

 

$

154,197

 

$

439,895

 

$

453,437

 

Gross profit

REVOLVE

$

74,687

$

74,991

$

203,300

$

223,091

FORWARD

 

 

8,780

 

 

7,687

 

 

23,188

 

 

20,759

Total

$

83,467

$

82,678

$

226,488

$

243,850

The following table lists net sales by geographic area (in thousands):

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

United States

 

$

120,459

 

$

128,234

 

$

357,059

 

$

379,694

Rest of the world

 

 

30,577

 

 

25,963

 

 

82,836

 

 

73,743

Total

 

$

151,036

 

$

154,197

 

$

439,895

 

$

453,437

REVOLVE GROUP, INC. AND SUBSIDIARIES

KEY OPERATING AND FINANCIAL METRICS

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands, except average order value and percentages)

Gross margin

 

 

55.3

%

 

 

53.6

%

 

 

51.5

%

 

 

53.8

%

Adjusted EBITDA

 

$

24,025

 

 

$

14,438

 

 

$

50,511

 

 

$

41,955

 

Free cash flow

 

$

13,877

 

 

$

7,448

 

 

$

74,383

 

 

$

20,376

 

Active customers

 

 

1,504

 

 

 

1,438

 

 

 

1,504

 

 

 

1,438

 

Total orders placed

 

 

1,141

 

 

 

1,194

 

 

 

3,476

 

 

 

3,623

 

Average order value

 

$

232

 

 

$

275

 

 

$

232

 

 

$

270

 

REVOLVE GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

 

A reconciliation of non-GAAP adjusted EBITDA to net income for the three and nine months ended September 30, 2020 and 2019 is as follows:

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

Net income

 

$

19,438

 

$

9,559

 

 

$

37,830

 

$

27,262

Excluding:

 

 

 

 

 

 

 

 

Other expense (income), net

 

 

253

 

 

(7

)

 

 

300

 

 

653

Provision for income taxes

 

 

2,104

 

 

3,281

 

 

 

6,323

 

 

9,547

Depreciation and amortization

 

 

1,250

 

 

1,132

 

 

 

3,646

 

 

2,716

Equity-based compensation

 

 

980

 

 

513

 

 

 

2,412

 

 

1,545

Non-routine items(1)

 

 

 

 

(40

)

 

 

 

 

232

Adjusted EBITDA

 

$

24,025

 

$

14,438

 

 

$

50,511

 

$

41,955

Non-routine items in the nine months ended September 30, 2019 primarily relate to legal settlements.

A reconciliation of non-GAAP free cash flow to net cash provided by operating activities for the three and nine months ended September 30, 2020 and 2019 is as follows:

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

Net cash provided by operating

activities

 

$

14,340

 

 

$

9,150

 

 

$

76,227

 

 

$

31,833

 

Purchases of property and equipment

 

 

(463

)

 

 

(1,702

)

 

 

(1,844

)

 

 

(11,457

)

Free cash flow

 

$

13,877

 

 

$

7,448

 

 

$

74,383

 

 

$

20,376

 

Net cash used in investing activities

 

$

(463

)

 

 

(1,702

)

 

$

(1,844

)

 

$

(11,457

)

Net cash (used in) provided by

financing activities

 

$

(6,292

)

 

$

(968

)

 

$

19,024

 

 

$

14,567

 

A reconciliation of non-GAAP adjusted diluted EPS to diluted earnings (net loss) per share for the three and nine months ended September 30, 2020 and 2019 is as follows (in dollars):

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

Class A

 

Class B

 

Class A

 

Class B

 

Class A

 

Class B

 

Class A

 

Class B

Earnings (net loss) per share — diluted

 

$0.27

 

$0.27

 

$0.13

 

$0.13

 

$0.52

 

$0.52

 

$(0.25)

 

$(0.25)

Repurchase of Class B common stock, net

 

 

 

 

 

 

 

0.63

 

0.63

Adjusted earnings per share — diluted

 

$0.27

 

$0.27

 

$0.13

 

$0.13

 

$0.52

 

$0.52

 

$0.38

 

$0.38

 

Investors:

Erik Randerson, CFA

562.677.9513

[email protected]

or

Media:

Simone Kuhfal

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Online Retail Fashion Luxury Cosmetics Retail

MEDIA:

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Xencor, MorphoSys and Incyte Enter into Global Development Collaboration for Tafasitamab in Combination with Plamotamab

Xencor, MorphoSys and Incyte Enter into Global Development Collaboration for Tafasitamab in Combination with Plamotamab

MONROVIA, Calif. & PLANEGG/MUNICH, Germany & WILMINGTON, Del.–(BUSINESS WIRE)–
Xencor (NASDAQ: XNCR), MorphoSys AG (FSE: MOR; Prime Standard Segment, MDAX & TecDAX; NASDAQ: MOR) and Incyte (NASDAQ: INCY) today announced a clinical collaboration to investigate the combination of tafasitamab, plamotamab and lenalidomide in patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL), first-line DLBCL, and relapsed or refractory follicular lymphoma (FL).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201111005844/en/

‟Xencor is pleased to partner with MorphoSys and Incyte to advance the development of plamotamab, our CD20 x CD3 XmAb® bispecific antibody that has demonstrated encouraging clinical activity as a monotherapy in non-Hodgkin lymphoma,” said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor. “Plamotamab, which redirects T cells to tumors, and tafasitamab, a CD19-directed XmAb antibody, combine powerful and distinct immune pathways, and this collaboration is designed to enable us to generate new clinical insights and accelerate development timelines for patients who may need additional therapeutic options. It builds upon many years of partnership between Xencor and MorphoSys following MorphoSys’ in-licensing of tafasitamab in 2010.”

‟Tafasitamab in combination with lenalidomide is an important new relapsed/refractory DLBCL treatment option for appropriate patients in the United States today, and its mechanism of action, efficacy and safety profile make it an attractive combination partner,” said Jean-Paul Kress, M.D., chief executive officer of MorphoSys. “We believe that tafasitamab as a backbone can add value to new combinations such as with CD20 x CD3 bispecifics, and we are excited about this collaboration with Xencor and Incyte aiming to help more patients in areas of unmet need.”

‟This collaboration has the potential to advance patient care and Incyte is proud to join Xencor and MorphoSys in evaluating this new combination approach for these serious cancers,” said Hervé Hoppenot, chief executive officer of Incyte.

Xencor’s plamotamab is a tumor-targeted bispecific antibody that contains both a CD20 binding domain and a cytotoxic T-cell binding domain (CD3). Tafasitamab is MorphoSys’ CD19-directed antibody which was recently approved by the U.S. Food and Drug Administration in combination with lenalidomide for the treatment of adult patients with relapsed or refractory DLBCL not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT). This indication is approved under accelerated approval based on overall response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).

Under the terms of the agreement, the companies plan to initiate a Phase 1/2 study evaluating the combination of tafasitamab, plamotamab and lenalidomide in patients with relapsed or refractory DLBCL. Additionally, the companies are planning to evaluate the combination in relapsed or refractory FL and first-line DLBCL in multiple Phase 1b studies. MorphoSys and Incyte will provide tafasitamab for the studies, which will be sponsored and funded by Xencor and are planned to be conducted in North America, Europe and Asia-Pacific.

The collaboration is effective immediately upon the execution of the agreement.

About Plamotamab (XmAb®13676)

Plamotamab (XmAb®13676) is a tumor-targeted bispecific antibody that contains both a CD20 binding domain and a cytotoxic T-cell binding domain (CD3), which is currently in a Phase 1 clinical study for the treatment of non-Hodgkin lymphoma (NHL) and chronic lymphocytic leukemia (CLL). An XmAb Bispecific Fc domain serves as the scaffold for these two antigen binding domains and confers long circulating half-life, stability and ease of manufacture on plamotamab. CD20 is highly expressed on B-cell tumors, including NHL and CLL. Engagement of CD3 by plamotamab activates T cells for highly potent and targeted killing of CD20-expressing tumor cells.

About Tafasitamab

Tafasitamab is a humanized Fc-modified cytolytic CD19 targeting monoclonal antibody. In 2010, MorphoSys licensed exclusive worldwide rights to develop and commercialize tafasitamab from Xencor, Inc. Tafasitamab incorporates an XmAb® engineered Fc domain, which mediates B-cell lysis through apoptosis and immune effector mechanism including antibody-dependent cell-mediated cytotoxicity (ADCC) and antibody-dependent cellular phagocytosis (ADCP).

Monjuvi® (tafasitamab-cxix) is approved by the U.S. Food and Drug Administration in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT). This indication is approved under accelerated approval based on overall response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).

In January 2020, MorphoSys and Incyte entered into a collaboration and licensing agreement to further develop and commercialize tafasitamab globally. Monjuvi is being co-commercialized by Incyte and MorphoSys in the United States. Incyte has exclusive commercialization rights outside the United States.

A marketing authorization application (MAA) seeking the approval of tafasitamab in combination with lenalidomide in the EU has been validated by the European Medicines Agency (EMA) and is currently under review for the treatment of adult patients with relapsed or refractory DLBCL, including DLBCL arising from low grade lymphoma, who are not candidates for ASCT.

Tafasitamab is being clinically investigated as a therapeutic option in B-cell malignancies in a number of ongoing combination trials.

Monjuvi® is a registered trademark of MorphoSys AG.

XmAb® is a registered trademark of Xencor, Inc.

About Xencor

Xencor is a clinical-stage biopharmaceutical company developing engineered monoclonal antibodies for the treatment of cancer and autoimmune diseases. Currently, 18 candidates engineered with Xencor’s XmAb® technology are in clinical development internally and with partners. Xencor’s XmAb antibody engineering technology enables small changes to the structure of monoclonal antibodies resulting in new mechanisms of therapeutic action. For more information, please visit www.xencor.com.

About MorphoSys

MorphoSys (FSE & NASDAQ: MOR) is a commercial-stage biopharmaceutical company dedicated to the discovery, development and commercialization of exceptional, innovative therapies for patients suffering from serious diseases. The focus is on cancer. Based on its leading expertise in antibody, protein and peptide technologies, MorphoSys, together with its partners, has developed and contributed to the development of more than 100 product candidates, of which 27 are currently in clinical development. In 2017, Tremfya®, developed by Janssen Research & Development, LLC and marketed by Janssen Biotech, Inc., for the treatment of plaque psoriasis, became the first drug based on MorphoSys’ antibody technology to receive regulatory approval. In July 2020, the U.S. Food and Drug Administration (FDA) granted accelerated approval of MorphoSys’ proprietary product Monjuvi® (tafasitamab-cxix) in combination with lenalidomide in patients with a certain type of lymphoma.

Headquartered near Munich, Germany, the MorphoSys group, including the fully owned U.S. subsidiary MorphoSys US Inc., has ~500 employees. More information at www.morphosys.com or www.morphosys-us.com.

Monjuvi® is a registered trademark of MorphoSys AG.

Tremfya® is a registered trademark of Janssen Biotech, Inc.

About Incyte

Incyte is a Wilmington, Delaware-based, global biopharmaceutical company focused on finding solutions for serious unmet medical needs through the discovery, development and commercialization of proprietary therapeutics. For additional information on Incyte, please visit Incyte.com and follow @Incyte.

Xencor Forward-looking Statements

Statements contained in this press release regarding matters that are not historical facts are forward-looking statements within the meaning of applicable securities laws, including, but not limited to, the quotations from Xencor’s president and chief executive officer; the outcome of the collaboration with MorphoSys and Incyte, including the ability of the collaboration to generate new clinical insights, accelerate development timelines and advance patient care; the ability of the proposed combination treatment to improve response rates and address more patients in areas of unmet need; and the timing and success of the Phase 1/2 study and multiple Phase 1b studies contemplated by the agreement. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics and other risks described in Xencor’s public securities filings. For a discussion of these and other factors, please refer to Xencor’s annual report on Form 10-K for the year ended December 31, 2019 as well as Xencor’s subsequent filings with the Securities and Exchange Commission. All forward-looking statements are based on Xencor’s current information and belief as well as assumptions made by Xencor. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This cautionary statement is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are qualified in their entirety by this cautionary statement and Xencor undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof, except as required by law.

MorphoSys Forward-Looking Statements

This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including the expectations regarding Monjuvi’s ability to treat patients with relapsed or refractory diffuse large B-cell lymphoma, the further clinical development of tafasitamab-cxix, including ongoing confirmatory trials, additional interactions with regulatory authorities and expectations regarding future regulatory filings and possible additional approvals for tafasitamab-cxix as well as the commercial performance of Monjuvi. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “would,” “could,” “potential,” “possible,” “hope” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained herein represent the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results, financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if MorphoSys’ results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are MorphoSys’ expectations regarding risks and uncertainties related to the impact of the COVID-19 pandemic to MorphoSys’ business, operations, strategy, goals and anticipated milestones, including its ongoing and planned research activities, ability to conduct ongoing and planned clinical trials, clinical supply of current or future drug candidates, commercial supply of current or future approved products, and launching, marketing and selling current or future approved products, the global collaboration and license agreement for tafasitamab, the further clinical development of tafasitamab, including ongoing confirmatory trials, and MorphoSys’ ability to obtain and maintain requisite regulatory approvals and to enroll patients in its planned clinical trials, additional interactions with regulatory authorities and expectations regarding future regulatory filings and possible additional approvals for tafasitamab-cxix as well as the commercial performance of Monjuvi, MorphoSys’ reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors included in MorphoSys’ Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or regulation.

Incyte Forward-looking Statements

Except for the historical information set forth herein, the matters set forth in this press release, including statements regarding expectations regarding Monjuvi’s ability to treat patients with relapsed or refractory diffuse large B-cell lymphoma, the further clinical development of tafasitamab-cxix, including ongoing confirmatory trials, additional interactions with regulatory authorities and expectations regarding future regulatory filings and possible additional approvals for tafasitamab-cxix as well as the commercial performance of Monjuvi, and the development of tafasitamab-cxix in combination with plamotamab, contain predictions, estimates and other forward-looking statements. These forward-looking statements are based on the Incyte’s current expectations and subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to: unanticipated delays; further research and development and the results of clinical trials possibly being unsuccessful or insufficient to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials; determinations made by regulatory authorities; the efficacy or safety of Incyte’s or its collaborators’ products; the acceptance of Incyte’s products and the products of its collaboration partners in the marketplace; market competition; sales, marketing, manufacturing and distribution requirements; greater than expected expenses; expenses relating to litigation or strategic activities; and other risks detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended September 30, 2020. Incyte disclaims any intent or obligation to update these forward-looking statements.

Xencor, Inc.

Charles Liles

[email protected]

Jason I. Spark

Canale Communications

Tel: +1 619-849-6005

[email protected]

MorphoSys AG

Media Contacts:

Jeanette Bressi

Director, US Communications

Tel: +1 617-404-7816

[email protected]

Sophie Petersen

Senior Specialist

Tel: +49 (0)89 / 899 27 26033

[email protected]

Investor Contact:

Dr. Julia Neugebauer

Director

Tel: +49 (0)89 / 899 27 179

[email protected]

Incyte Corporation

Catalina Loveman

Executive Director, Public Affairs

Tel: +1 302 498 6171

[email protected]

Dr. Michael Booth

Division Vice President, Investor Relations & Corporate Responsibility

Tel: +1 302 498 5914

[email protected]

Christine Chiou

Senior Director, Investor Relations

Tel: +1 302 274 4773

[email protected]

KEYWORDS: California Delaware Germany Europe United States North America

INDUSTRY KEYWORDS: Oncology Health Clinical Trials Research Science Pharmaceutical Biotechnology

MEDIA:

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Green Thumb Industries Reports Revenue of $157.1 Million and Positive Net Income of $9.6 Million or $0.04 Per Share for Third Quarter 2020

  • Adjusted
    Operating
    EBITDA increased 50
    .2
    % to $53
    .2
    million
    ,
    or 3
    3.9
    % of revenue
    ,
    quarter-over-quarter driven by continued operational scale and increased operating leverage
  • R
    evenue
    increased
    31
    .3
    % quarter-over-quarter and 1
    31
    .1
    % year-over-year
    to $157
    .1
    million
  • N
    ew milestone of positive net income of $
    9.6
    million or $0.0
    4
    per basic and diluted share
  • P
    ositive cash flow from operations
    for the
    third consecutive
    quarter
  • Strong balance sheet and financial flexibility
    will
    support
    continued growth
    in 2021

CHICAGO and VANCOUVER, British Columbia, Nov. 11, 2020 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (“Green Thumb,” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ retail stores, today reported its financial results for the third quarter ended September 30, 2020. Financial results are reported in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and all currency is in U.S. dollars.

“This was an excellent quarter for Green Thumb as we delivered substantial revenue growth and our ‘Enter, Open, Scale’ strategy is generating meaningful operating leverage across our business. We expanded gross margins and EBITDA margins quarter-over-quarter while delivering positive net income for the first time. This was driven by the execution of our capital projects in Illinois, New Jersey, Pennsylvania and Ohio, and the rebound in our Nevada and Massachusetts markets following the initial impact of COVID-19. We are poised to further benefit from the strong tailwinds driving a robust, multi-billion-dollar marketplace*,” said Green Thumb Chairman, Founder and Chief Executive Officer Ben Kovler.

Kovler continued, “Momentum remains strong across the country and in our business. The national election saw a green wave sweep across the country with five states – New Jersey, Montana, South Dakota, Arizona and Mississippi – all legalizing their respective cannabis programs. New Jersey is great news for us as we think that legal market has the potential to mirror Illinois – a single state, multi-billion dollar legal cannabis market about to be born. There was resounding support for our mission to promote well-being through cannabis and we remain bullish on our strategic position and the long-term prospects of our business.”

Financial Highlights

  • Revenue: Revenue for the third quarter 2020 increased 31.3% quarter-over-quarter and 131.1% year-over-year to $157.1 million. Revenue growth was driven primarily by the increased scale in the Company’s Consumer Packaged Goods and Retail businesses.
  • Gross Margin: Gross margin for the third quarter 2020 was 55.4% compared to 53.2% for the prior quarter.
  • Net Income
    Attributable to G
    reen Thumb
    : Net income attributable to the Company for the third quarter 2020 was $9.6 million or $0.04 per basic and diluted share.
  • Adjusted Operating
    EBITDA: Adjusted Operating EBITDA(1), which is a non-GAAP financial measure as described below and in an accompanying financial table in this release, increased 50.2% to $53.2 million or 33.9% of revenue for the third quarter 2020 compared to $35.4 million or 29.6% of revenue for the prior quarter.
  • Balance Sheet: As of September 30, 2020, current assets totaled $159.1 million and included cash and cash equivalents of $78.1 million. Total debt outstanding was $97.1 million, $0.3 million of which is due within 12 months. 

    (1) EBITDA refers to earnings before income, taxes, depreciation and amortization. EBITDA and Adjusted Operating EBITDA are non-GAAP financial measures. Please see the “Supplemental Information (Unaudited) Regarding Non-GAAP Financial Measures” at the end of this press release for a reconciliation of non-GAAP to GAAP measures.

Additional Management Commentary

Kovler added, “As we near the close of 2020, Green Thumb is positioned to win. We remain focused on distributing our consumer brands at scale and delivering superior consumer experiences while giving back to our communities. Our focus, along with our strong balance sheet, underlying fundamentals and prudent capital allocation, will continue to provide the flexibility to capitalize on the growth opportunities ahead. We remain laser focused on delivering shareholder value in everything we do.”

Consumer Packaged Goods Business Develo
pment

  • As of September 30, 2020, Green Thumb’s family of consumer brands are produced, distributed, and available in retail locations in eleven states: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, Ohio and Pennsylvania.
  • Gross branded product sales grew sequentially by approximately 32.6% quarter-over-quarter, driven primarily by expanded product distribution.
  • Green Thumb completed the initial phase of construction of its manufacturing facility in Oglesby, Illinois and began producing and distributing its brand portfolio from that facility during the third quarter. The Company also added branded-product production and distribution capabilities to two new markets, New Jersey and Ohio.
  • Green Thumb continued to develop its brand portfolio with the launch of Snoozzzeberry gummies under the incredibles brand in Illinois and Nevada.

Retail Business Development

  • Green Thumb’s third quarter revenue included sales from 48 retail stores across ten states: Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio and Pennsylvania.
  • Comparable sales growth (stores opened at least 12 months) exceeded 65.0% on a base of 25 stores, driven primarily by increased transactions. Sequential quarter-over-quarter comparable sales were up 17.9% on a base of 42 stores.
  • Retail revenue increased sequentially by 27.9% quarter-over-quarter, primarily driven by increased foot traffic in established stores.
  • Subsequent to the quarter end, in October, Green Thumb expanded retail service in Pennsylvania and Illinois:
    • Pennsylvania: Opened Rise™ Monroeville, bringing total open stores in the state to 13.
    • Illinois: Began adult-use sales in Naperville with the opening of Rise™ Naperville (a rebrand of 3C Compassionate Care Center which previously only serviced registered medical cardholders), the city’s first adult-use cannabis store. The Company has a total of eight open stores in the state with the ability to open two additional stores for a total of ten stores.

Corporate Development

  • Green Thumb announced the launch of the License Education Assistance Program (LEAP) New Business Accelerator, a cannabis business incubator intended to help promote opportunity and success for new social equity entrepreneurs in Illinois.
  • Green Thumb partnered with Last Prisoner Project (“LPP”), a coalition of cannabis industry leaders, executives and artists dedicated to bringing restorative justice to the cannabis industry, on an integrated marketing campaign, including a short documentary (“Waiting to Breathe”) to raise awareness and funds for LPP.

Third
Q
uarter
2020
Financial Overview

Total revenue for the third quarter 2020 was $157.1 million, up 131.1% from $68.0 million for the third quarter 2019, driven by growth from both the Consumer Packaged Goods and Retail businesses, particularly in Illinois and Pennsylvania. Key year-over-year performance drivers were the expanded distribution of Green Thumb’s branded products, 15 new store openings and increased traffic to the Company’s 48 open and operating retail stores.

Gross profit for the third quarter 2020 was $87.0 million or 55.4% of revenue as compared to $32.1 million or 47.3% of revenue for the third quarter 2019.

Total selling, general and administrative expenses for the third quarter were $49.7 million or 31.7% of revenue, as compared to $30.8 million or 45.2% of revenue for the third quarter 2019. Improved operating costs as a percentage of revenue was driven primarily by cost controls and increased operating leverage in the Company’s Consumer Packaged Goods and Retail businesses.

Total other income was $2.0 million for the third quarter 2020 and primarily reflected favorable fair value adjustments on the Company’s equity investments net of interest and warrant expense associated with the Company’s senior secured notes.

EBITDA for the third quarter 2020 was $48.7 million or 31.0% of revenue as compared to $9.1 million or 13.3% of revenue for the third quarter 2019. Adjusted Operating EBITDA for the third quarter 2020, which excluded only non-cash stock-based compensation of $4.4 million, was $53.2 million or 33.9% of revenue as compared to $13.8 million or 20.3% of revenue for the third quarter 2019. The significant improvement in EBITDA and Adjusted Operating EBITDA was driven primarily by revenue growth from both the Consumer Packaged Goods and Retail businesses. For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”

Net income attributable to Green Thumb for the third quarter 2020 was $9.6 million or $0.04 per basic and diluted share as compared to a net loss of $14.6 million or ($0.07) per basic and diluted share for the third quarter 2019.

Balance Sheet and Liquidit
y

As of September 30, 2020, current assets were $159.1 million, including cash and cash equivalents of $78.1 million. The Company had $97.1 million of total debt.

Total basic and diluted weighted average shares outstanding for the three months ended September 30, 2020 were 211,990,405 and 214,212,292, respectively.

Capital Markets & Financing

Subsequent to the quarter end, in October Green Thumb amended its previously announced sale and leaseback transaction with Innovative Industrial Properties for its Toledo, Ohio manufacturing facility, securing an additional $25.0 million in funding for the construction of a cultivation facility at the property for total investment value of $32.2 million.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the SEC. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.  

*Source: Cowen research report “Cowen’s Cannabis Catalyst Series Part 7 – Alcohol Implications” dated October 22, 2020 estimates the U.S. cannabis total addressable market to reach $100 billion by 2030.

Definition
s

EBITDA
: Earnings before interest, taxes, other income or expense and depreciation and amortization.

Adjusted Operating EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash share-based compensation, one-time transaction related expenses, or other non-operating costs.

Conference Call and Webcast

Green Thumb will host a conference call on Wednesday, November 11, 2020 at 5:00 pm ET to discuss its financial results for the third quarter ended September 30, 2020. The conference call may be accessed by dialing 833-502-0470 (Toll-Free) or 236-714-2182 (International) with conference ID: 5079863. A live audio webcast of the call will also be available on the Investor Relations section of Green Thumb’s website at https://investors.gtigrows.com and will be archived for replay.

About Green Thumb Industries
:

Green Thumb Industries Inc., a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection. The Company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96 retail locations and operations across 12 U.S. markets. Established in 2014, Green Thumb employs over 2,000 people and serves hundreds of thousands of patients and customers each year. The company was named a Best Workplace 2018 by Crain’s Chicago Business and MG Retailer magazine in 2018 and 2019. More information is available at GTIgrows.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements that we believe are, or may be considered to be, “forward-looking statements.” All statements other than statements of historical fact included in this document regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “may,” “will,” “expect,” “intend,” “estimate,” “foresee,” “project,” “anticipate,” “believe,” “plan,” “forecast,” “continue” or “could” or the negative of these terms or variations of them or similar terms. Furthermore, forward-looking statements may be included in various filings that we make with the Securities and Exchange Commission (the “SEC”), or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These known and unknown risks include, without limitation: marijuana remains illegal under federal law, and enforcement of cannabis laws could change; the Company may face limitations on ownership of cannabis licenses; the Company may become subject to U.S. Food and Drug Administration or the U.S. Bureau of Alcohol, Tobacco and Firearms; the Company may face difficulties acquiring additional financing; the Company operates in a highly regulated sector and may not always succeed in complying fully with applicable regulatory requirements in all jurisdictions where we carry on business; the Company is subject to general economic risks; the Company may be negatively impacted by challenging global economic condition
s
; the Company is subject to risks arising from epidemic diseases, such as the recent outbreak of the COVID-19 illness; the Company may face difficulties in enforcing its contracts; the Company is subject to taxation in Canada and the United States; cannabis businesses are subject to unfavorable tax treatment; cannabis businesses may be subject to civil asset forfeiture; the Company is subject to proceeds of crime statutes; the Company faces security risks; our use of joint ventures may expose us to risks associated with jointly owned investments; competition for the acquisition and leasing of properties suitable for the cultivation, production and sale of medical and adult use cannabis may impede our ability to make acquisitions or increase the cost of these acquisitions, which could adversely affect our operating results and financial condition; the Company faces risks related to its products; the Company is dependent on the popularity of consumer acceptance of the Company’s brand portfolio; the Company faces risks related to its insurance coverage and uninsurable risks; the Company is dependent on key inputs, suppliers and skilled labor; the Company must attract and maintain key personnel or our business will fail; the Company’s business is subject to the risks inherent in agricultural operations; the Company’s sales are difficult to forecast; the Company’s products may be subject to product recalls; the Company may face unfavorable publicity or consumer perception;
the Company faces intense competition; the Company’s voting control is concentrated; the Company’s capital structure and voting control may cause unpredictability; and additional issuances of Super Voting Shares, Multiple Voting Shares or Subordinate Voting Shares may result in dilution. Further information on these and other potential factors that could affect the Company’s business and financial condition and the results of operations are included in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and elsewhere in the Company’s filings with the SEC, which are available on the SEC’s website or at https://investors.gtigrows.com. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this document, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this document.

Coronavirus Pandemic

In March 2020, the World Health Organization categorized coronavirus disease 2019 (“COVID-19”) as a pandemic. COVID-19 continues to spread throughout the U.S. and other countries across the world, and the duration and severity of its effects are currently unknown. The Company continues to implement and evaluate actions to strengthen its financial position and support the continuity of its business and operations in the face of this pandemic and other events.
The Company’s unaudited interim condensed consolidated financial statements presented herein reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and reported amounts of revenue and expenses during the periods presented. Such estimates and assumptions affect, among other things, the Company’s goodwill, long-lived asset and intangible assets; operating lease right of use assets and operating lease liabilities; assessment of the annual effective tax rate; valuation of deferred income taxes; the allowance for doubtful accounts; assessment of our lease and non-lease contract expenses; and measurement of compensation cost for bonus and other compensation plans. While
the Company’s
revenue, gross profit and operating income were not impacted during the first
nine
months of 2020, the uncertain nature of the spread of COVID-19 may impact
the Company’s
business operations for reasons including the potential quarantine of
the Company’s
employees or those of
the Company’s
supply chain partners. The estimates and assumptions used in the unaudited interim condensed consolidated financial statements, which include but are not limited to certain judgmental reserves requiring management to makes estimates based on current information, the carrying value of the Company’s goodwill and other long-lived assets, for the three and
nine
months ended
September
30, 2020 may change in future periods as the expected impacts from COVID-19 are revised, resulting in further potential impacts to the Company’s financial statements.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Investor Contact: Media Contact:
   
Jennifer Dooley
Chief Strategy Officer
[email protected]  
310-622-8257
Linda Marsicano
VP, Corporate Communications
[email protected] 
773-354-2004

Source: Green Thumb Industries

 
 
Green Thumb Industries Inc.
Highlights from Unaudited Interim Condensed Consolidated Statements of Operations
Three Months Ended September 30, 2020, June 30, 2020 and September 30, 2019
(Amounts Expressed in United States Dollars, Except for Share Amounts)
             
             
             
    Three Months Ended
    September 30, 2020   June 30, 2020   September 30, 2019
    (Unaudited)   (Unaudited)   (Unaudited)
                         
Revenues, net of discounts   $ 157,103,841     $ 119,639,924     $ 67,990,907  
Cost of Goods Sold, net     (70,146,676 )     (55,946,010 )     (35,849,783 )
                         
Gross Profit     86,957,165       63,693,914       32,141,124  
                         
Expenses:                        
Selling, General, and Administrative     49,745,979       49,643,211       30,764,406  
                         
Total Expenses     49,745,979       49,643,211       30,764,406  
                         
Income (Loss) From Operations     37,211,186       14,050,703       1,376,718  
                         
Other Income (Expense):                        
Other Income (Expense), net     6,432,883       (5,717,427 )     (6,585,540 )
Interest Income, net     5,397       16,410       407,509  
Interest Expense, net     (4,460,125 )     (4,734,908 )     (5,912,290 )
                         
Total Other Income (Expense)     1,978,155       (10,435,925 )     (12,090,321 )
                         
Income (Loss) Before Provision for Income Taxes And Non-Controlling Interest     39,189,341       3,614,778       (10,713,603 )
                         
Provision For Income Taxes     28,436,332       15,378,715       3,624,333  
                         
Net Income (Loss) Before Non-Controlling Interest     10,753,009       (11,763,937 )     (14,337,936 )
                         
Net Income Attributable To Non-Controlling Interest     1,109,080       1,145,568       252,857  
                         
Net Income (Loss) Attributable To Green Thumb Industries Inc.   $ 9,643,929     $ (12,909,505 )   $ (14,590,793 )
                         
Net Income (Loss) per share – basic   $ 0.04     $ (0.06 )   $ (0.07 )
                         
Net Income (Loss) per share – diluted   $ 0.04     $ (0.06 )   $ (0.07 )
                         
Weighted average number of shares outstanding – basic     211,990,405       209,902,732       204,709,085  
                         
Weighted average number of shares outstanding – diluted     214,212,292       209,902,732       204,709,085  
                         

Green Thumb Industries Inc.     
Highlights from Unaudited Interim Condensed Consolidated Balance Sheets    
(Amounts Expressed in United States Dollars)    
         
         
    September 30,   December 31,
     2020    2019
    (Unaudited)   (Unaudited)
             
Cash and Cash Equivalents   $ 78,091,073   $ 46,667,334
Other Current Assets     80,968,164     62,395,277
Property and Equipment, Net     177,725,092     155,596,675
Right of Use Assets, Net     99,447,497     63,647,812
Intangible Assets, Net     409,655,517     435,246,898
Goodwill     373,081,716     375,084,991
Other Long-term Assets     35,645,388     28,897,637
             
Total Assets   $ 1,254,614,447   $ 1,167,536,624
             
Total Current Liabilities   $ 105,898,809   $ 111,367,255
Notes Payable, Net of Current Portion and Debt Discount     96,758,233     91,140,194
Lease Liability, Net of Current Portion     102,408,462     61,115,737
Other long-Term Liabilities     69,472,643     60,704,762
Total Equity     880,076,300     843,208,676
             
Total Liabilities and Equity   $ 1,254,614,447   $ 1,167,536,624
             

Green Thumb Industries Inc.
Supplemental Information (Unaudited) Regarding Non-GAAP Financial Measures
 
 
EBITDA, and Adjusted Operating EBITDA are non-GAAP measures and do not have standardized definitions under GAAP. We define each term as follows:
 
(1) EBITDA is defined as earnings before interest, taxes, other income or expense and depreciation and amortization.
(2) Adjusted Operating EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash share-based compensation, one-time transaction related expenses, or other non-operating costs.
 
The following information provides reconciliations of the supplemental non-GAAP financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented.
 
 
Adjusted Operating EBITDA
(Amounts Expressed in United States Dollars)
    Three Months Ended


             
    September 30,
2020



  June 30,
2020



  September 30,
2019



    (Unaudited)


  (Unaudited)


  (Unaudited)


                         
Net Income (Loss) Before Noncontrolling Interest (GAAP)   $ 10,753,009     $ (11,763,937 )   $ (14,337,936 )
Interest Income, net     (5,397 )     (16,410 )     (407,509 )
Interest Expense, net     4,460,125       4,734,908       5,912,290  
Income Taxes     28,436,332       15,378,715       3,624,333  
Other (Income) Expense, net     (6,432,883 )     5,717,427       6,585,540  
Depreciation and Amortization     11,534,876       14,239,915       7,685,428  
                         
Earnings Before Interest, Taxes, Depreciation and Amortization          
(EBITDA) (non-GAAP measure)   $ 48,746,062     $ 28,290,618     $ 9,062,146  
             
Share-based Compensation, Non-Cash     4,435,634       5,700,144       3,564,095  
Acquisition, Transaction, and Other Non-Operating Costs         1,421,949       1,160,150  
             
Adjusted Operating EBITDA (non-GAAP measure) $ 53,181,696     $ 35,412,711     $ 13,786,391