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NGM Discloses Third Oncology Development Candidate, NGM438, a Novel Antagonist Antibody Inhibiting LAIR1 for the Treatment of Advanced Solid Tumors

  • LAIR1, through interactions with tumor-associated collagens, may form a stromal checkpoint that imposes signaling-based immune suppression and impedes anti-tumor immunity
  • NGM plans to initiate first-in-human testing of NGM438 in 4Q21
  • NGM featured NGM438 today at its first R&D Day, along with its diverse pipeline of drug candidates for liver and metabolic diseases, retinal diseases and cancer

SOUTH SAN FRANCISCO, Calif., Dec. 09, 2020 (GLOBE NEWSWIRE) — NGM Biopharmaceuticals, Inc. (NGM) (Nasdaq: NGM), a biotechnology company focused on discovering and developing transformative therapeutics for patients, today disclosed its third oncology development candidate, NGM438, a novel antagonist antibody that inhibits Leukocyte-associated immunoglobulin-like receptor 1 (LAIR1). NGM438 was featured earlier today during NGM’s first R&D Day. The event highlighted the company’s diverse portfolio of therapeutic candidates for liver and metabolic disease, retinal diseases and cancer. All presentations from the R&D Day can be found in the Investors & Media section of NGM’s website here.

LAIR1 is a collagen-binding inhibitory receptor expressed on immune cells1-2 that is implicated in immune suppression. LAIR1 and collagens are upregulated in multiple cancer types3–7 where collagens are produced by activated stromal cells. These stromal-derived suppressive factors are associated with poor responses to checkpoint inhibitors. For such tumors, formation of the LAIR1-collagen complex may act as a stromal checkpoint to both physically exclude immune cells from the tumor and impose signaling-based immune suppression8-9. Consequently, inhibiting this stromal checkpoint represents a potentially promising new therapeutic strategy to treat cancer by promoting the remodeling of the tumor architecture that restricts T cell infiltration of the tumor cell mass and reversing immune suppression in the tumor microenvironment.

Designed to inhibit LAIR1 interactions with stromal-derived collagens, NGM438 has the potential to block this stromal checkpoint and restore anti-tumor immune responses. In preclinical studies, NGM438 demonstrated the ability to reprogram collagen-suppressed myeloid cells to a stimulatory phenotype, induce inflammatory cytokine production by myeloid and T cells, and relieve collagen-based suppression of T cell proliferation. Reinvigoration of collagen-suppressed immune cells may address a key resistance mechanism that limits responses to current immunotherapies.

“At NGM’s inaugural R&D Day today, we were excited to showcase NGM’s powerful in-house drug discovery engine. NGM438, a novel immuno-oncology candidate, is yet another example of our team’s biology-driven approach and expertise in tailoring highly-specialized antibodies,” said David J. Woodhouse, Ph.D., Chief Executive Officer at NGM. “NGM438, which inhibits LAIR1, and NGM707, our dual antagonist antibody that inhibits ILT2 and ILT4, are both examples of our strategy to broaden and deepen anti-tumor immune responses for patients through myeloid reprogramming by addressing key resistance mechanisms and reversing stromal and myeloid checkpoints.”

NGM438 joins NGM707 as the second myeloid reprogramming product candidate in the NGM oncology portfolio. NGM707 is a novel dual antagonist antibody that inhibits Immunoglobulin-like transcript 2 (ILT2) and Immunoglobulin-like transcript 4 (ILT4). First-in-human testing for NGM707 is expected to begin in mid-2021. NGM’s third oncology candidate is NGM120, a first-in-class antagonistic antibody that binds glial cell-derived neurotrophic factor receptor alpha-like (GFRAL) and inhibits growth differentiation factor 15 (GDF15) signaling. NGM120 is in an ongoing Phase 1a/1b trial in patients with cancer and cancer anorexia/cachexia syndrome (CACS).

NGM438, NGM707 and NGM120 were discovered by NGM under its strategic collaboration with Merck.

About NGM Biopharmaceuticals, Inc.

NGM is a biopharmaceutical company focused on discovering and developing novel therapeutics based on scientific understanding of key biological pathways underlying liver and metabolic diseases, retinal diseases and cancer. We leverage our biology-centric drug discovery approach to uncover novel mechanisms of action and generate proprietary insights that enable us to move rapidly into proof-of-concept studies and deliver potential first-in-class medicines to patients. At NGM, we aspire to operate one of the most productive research and development engines in the biopharmaceutical industry, with multiple programs in clinical development. Visit us at www.ngmbio.com for more information.

Forward Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “plans,” “implicate,” “potentially,” “promising,” “designed to,” “potential,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These statements include those related to: the therapeutic potential, potential benefits and design of NGM438, including NGM438’s potential to impede anti-tumor immunity by its inhibiting LAIR1; the planned first in-human testing of NGM438 and NGM707 and the anticipated timing thereof; implications of the potential therapeutic advantages of inhibiting a stromal checkpoint to both physically exclude immune cells from the tumor and impose signaling-based immune suppression; the potential for reinvigoration of collagen-suppressed immune cells to address a key resistance mechanism that limits responses to current immunotherapies; NGM’s strategy to broaden and deepen anti-tumor immune responses for patients through myeloid reprogramming by addressing key resistance mechanisms and reversing stromal and myeloid checkpoints; and other statements that are not historical fact. Because such statements deal with future events and are based on NGM’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of NGM could differ materially from those described in or implied by the statements in this press release. These forward-looking statements are subject to risks and uncertainties, including, without limitation, risks and uncertainties associated with the costly and time-consuming pharmaceutical product development process and the uncertainty of clinical success, including risks related to failure or delays in successfully initiating, enrolling or completing clinical studies; the risk that NGM’s ongoing or future clinical studies in humans may show that NGM438, and/or NGM707 are not tolerable and effective treatments for cancer or that the effects of inhibiting LAIR1 interactions with stromal-derived collagens are otherwise different than anticipated; the ongoing COVID-19 pandemic, which has adversely affected, and could materially and adversely affect in the future, NGM’s business and operations, including NGM’s ability to timely supply, initiate, enroll and complete its ongoing and future clinical studies; the time-consuming and uncertain regulatory approval process; NGM’s reliance on third-party manufacturers for NGM438 and NGM707 and its other product candidates; the sufficiency of NGM’s cash, cash equivalents and short-term marketable securities and need for additional capital; and other risks and uncertainties affecting NGM and its development programs, as well as those discussed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in NGM’s quarterly report on Form 10-Q for the quarter ended September 30, 2020 and future filings and reports that NGM makes from time to time with the United States Securities and Exchange Commission. Except as required by law, NGM assumes no obligation to update these forward-looking statements or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Investor Contact:

Alex Schwartz
[email protected]		 Media
Contact
:

Liz Melone
[email protected]
   

1. Meyaard, Immunity, 1997
2. Guo, Trans Med, 2020
3. Cao, 2015, Biochem Biophys Res Commun
4. Wang, Exp Ther Med, 2016
5. Wu, CP Cancer, 2018
6. Yang, Head & Neck, 2018
7. Jingushi, Onc. Reports, 2018
8. Peng, Nat Comm, 2020
9. Lijun, Oncoimmunology, 2020



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Asana Announces Record Third Quarter Revenues

Asana Announces Record Third Quarter Revenues

Q3 Revenues grew 55% year over year

Over 89,000 total paying customers

Revenues from customers who spend $5,000 or more on an annualized basis grew over 80% year over year

Fiscal year outlook raised

SAN FRANCISCO–(BUSINESS WIRE)–
Asana, Inc. (NYSE: ASAN), a leading work management platform for teams, today reported financial results for its third quarter ended October 31, 2020.

“We reported a very strong quarter, with total revenue growth of 55 percent year over year and growth of revenue from customers who spend $5,000 or more on an annualized basis of over 80 percent year over year,” said Dustin Moskovitz, co-founder and chief executive officer of Asana. “With the acceleration of digital transformation, organizations are reimagining every aspect of business operations to ensure that people can stay engaged, aligned and effective, no matter where they are. Asana’s Work Graph provides the power, flexibility and control that organizations need to orchestrate work at scale.”

Third Quarter Fiscal 2021 Financial Highlights

  • Revenues: Revenues were $58.9 million, an increase of 55% year over year.
  • Operating Loss: GAAP operating loss was $61.9 million, or 105.1% of revenues, compared to GAAP operating loss of $63.1 million, or 165.7% of revenues, in the third quarter of fiscal 2020. Non-GAAP operating loss was $37.3 million, or 63.3% of revenues, compared to non-GAAP operating loss of $21.5 million, or 56.3% of revenues, in the third quarter of fiscal 2020.
  • Net Loss: GAAP net loss was $73.3 million, compared to GAAP net loss of $62.8 million in the third quarter of fiscal 2020. GAAP net loss per share was $0.65, compared to GAAP net loss per share of $0.89 in the third quarter of fiscal 2020. Non-GAAP net loss was $38.3 million, compared to non-GAAP net loss of $21.2 million in the third quarter of fiscal 2020. Non-GAAP net loss per share was $0.34, compared to non-GAAP net loss per share of $0.30 in the third quarter of fiscal 2020.
  • Cash Flow: Cash flows from operating activities were negative $34.4 million, compared to cash flows from operating activities of negative $10.9 million in the third quarter of fiscal 2020. Free cash flow was negative $19.5 million, compared to negative $11.6 million in the third quarter of fiscal 2020.

Business Highlights

  • Expanded Asana’s App ecosystem with a powerful set of best-in-class integrations with Zoom, Jira, Microsoft Teams and Slack.
  • Continued enterprise-ready product momentum announcing enhanced Rules functionality, and expanded administrative controls to help organizations stay connected at scale.
  • Ended the quarter with over 89,000 paying customers.
  • The number of customers spending $5,000 or more on an annualized basis grew to 8,938, an increase of 58% year over year.
  • The number of customers spending $50,000 or more on an annualized basis grew to 318, an increase of 104% year over year.
  • Overall dollar-based net retention rate was over 115%.
  • Dollar-based net retention rate for customers with $5,000 or more in annualized spend was over 125%.
  • Dollar-based net retention rate for customers with $50,000 or more in annualized spend was over 140%.

Financial Outlook

For the fourth quarter of fiscal 2021, Asana currently expects:

  • Revenues of $62 million to $63 million, representing year-over-year growth of 43% to 45%
  • Non-GAAP operating loss of $42.5 million to $39.5 million
  • Non-GAAP net loss per share of $0.27 to $0.25, assuming basic and diluted weighted average shares outstanding of approximately 158 million

For the full fiscal year 2021, Asana currently expects:

  • Revenues of $220.6 million to $221.6 million, representing year-over-year growth of 55%
  • Non-GAAP operating loss of $130.8 million to $127.8 million
  • Non-GAAP net loss per share of $1.24 to $1.21, assuming basic and diluted weighted average shares outstanding of approximately 106 million

These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause Asana’s actual results to materially differ from these forward-looking statements.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future. Asana has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its third quarter of fiscal 2021 non-GAAP results included in this press release.

Conference Call Information

Asana will host a conference call and live webcast for analysts and investors at 1:30 p.m. Pacific Time on December 9, 2020. A live webcast and accompanying presentation can be accessed on the Investor Relations section of Asana’s website at: https://investors.asana.com. The conference call can also be accessed by dialing (833) 529-0220, or +1 236-389-2147 (outside of the US). The conference ID is 672-9445. A replay of the call via webcast will be available at https://investors.asana.com.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about Asana’s outlook for the fourth fiscal quarter and the full fiscal year ending January 31, 2021, Asana’s market position, and potential market opportunities. Forward-looking statements generally relate to future events or Asana’s future financial or operating performance. Forward-looking statements include all statements that are not historical facts and in some cases can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “remain,” “may,” “might,” “will,” “would” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond Asana’s control, that may cause Asana’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: Asana’s ability to achieve future growth and sustain its growth rate, Asana’s ability to attract and retain customers and increase sales to its customers, Asana’s ability to develop and release new products and services and to scale its platform, Asana’s ability to increase adoption of its platform through Asana’s self-service model, Asana’s ability to maintain and grow its relationships with strategic partners, the highly competitive and rapidly evolving market in which Asana participates, Asana’s international expansion strategies, and the impact of the COVID-19 pandemic. Further information on risks that could cause actual results to differ materially from forecasted results are included in Asana’s filings with the SEC, including Asana’s final prospectus filed on September 30, 2020 with the SEC. Any forward-looking statements contained in this press release are based on assumptions that Asana believes to be reasonable as of this date. Except as required by law, Asana assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Asana uses certain non-GAAP financial measures, as described below, to understand and evaluate its core operating performance. These non-GAAP financial measures, which may be different from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of Asana’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found in the accompanying financial statements included with this press release.

Asana believes that these non-GAAP financial measures provide useful information about its financial performance, enhance the overall understanding of Asana’s past performance and future prospects, facilitate period-to-period comparisons of operations, and allow for greater transparency with respect to important metrics used by Asana’s management for financial and operational decision-making. Asana is presenting these non-GAAP financial metrics to assist investors in seeing its financial performance through the eyes of management, and because Asana believes that these measures provide an additional tool for investors to use in comparing its core financial performance over multiple periods with other companies in Asana’s industry.

Asana defines non-GAAP operating loss as GAAP loss from operations plus stock-based compensation expense and non-recurring costs such as direct listing expenses. Asana defines non-GAAP net loss as GAAP net loss plus stock-based compensation expense, amortization of discount and non-cash contractual interest expense related to its senior mandatory convertible promissory note, and non-recurring costs such as direct listing expenses. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in Asana’s business and an important part of its compensation strategy.

Asana also uses the non-GAAP financial measure of free cash flow, which is defined as net cash used in operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus non-recurring expenditures such as capital expenditures from the purchases of property and equipment associated with the build-out of Asana’s corporate headquarters in San Francisco and direct listing expenses. Asana believes free cash flow is an important liquidity measure of the cash that is available, after capital expenditures and operational expenses, for investment in its business and to make acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures Asana’s ability to generate or use cash. There are a number of limitations related to the use of free cash flow as compared to net cash from operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

Definitions of Business Metrics

Dollar-based net retention rate

Asana’s reported dollar-based net retention rate equals the simple arithmetic average of its quarterly dollar-based net retention rate for the four quarters ending with the most recent fiscal quarter. Asana calculates its dollar-based net retention rate by comparing its revenues from the same set of customers in a given quarter, relative to the comparable prior-year period. To calculate Asana’s dollar-based net retention rate for a given quarter, Asana starts with the revenues in that quarter from customers that generated revenues in the same quarter of the prior year. Asana then divides that amount by the revenues attributable to that same group of customers in the prior-year quarter. Current period revenues include any upsells and are net of contraction or attrition over the trailing 12 months, but exclude revenues from new customers in the current period. Asana expects its dollar-based net retention rate to fluctuate in future periods due to a number of factors, including the expected growth of its revenue base, the level of penetration within its customer base, and its ability to retain its customers.

About Asana

Asana helps teams orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 89,000 paying customers and millions of free organizations across 190 countries. Global customers such as Allbirds, Sephora, Sky, Spotify, Viessmann and Woolworths rely on Asana to manage everything from company objectives to digital transformation to product launches and marketing campaigns.

Disclosure of Material Information

Asana announces material information to its investors using SEC filings, press releases, public conference calls, and on its investor relations page of Asana’s website at https://investors.asana.com. Asana uses these channels, as well as social media, including its Twitter account (@asana), its blog (blog.asana.com), its LinkedIn page (www.linkedin.com/company/asana), its Instagram account (@asana), and its Facebook page (www.facebook.com/asana/), to communicate with investors and the public about Asana, its products and services and other matters. Therefore, Asana encourages investors, the media and others interested in Asana to review the information it makes public in these locations, as such information could be deemed to be material information.

 

ASANA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)
 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Revenues

$

58,905

 

 

$

38,079

 

 

$

158,635

 

 

$

99,136

 

Cost of revenues(1)

 

7,321

 

 

 

5,328

 

 

 

20,548

 

 

 

14,079

 

Gross profit

 

51,584

 

 

 

32,751

 

 

 

138,087

 

 

 

85,057

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

32,996

 

 

 

39,712

 

 

 

81,338

 

 

 

69,588

 

Sales and marketing(1)

 

48,039

 

 

 

35,902

 

 

 

122,952

 

 

 

74,927

 

General and administrative(1)

 

32,483

 

 

 

20,222

 

 

 

58,400

 

 

 

34,871

 

Total operating expenses

 

113,518

 

 

 

95,836

 

 

 

262,690

 

 

 

179,386

 

Loss from operations

 

(61,934

)

 

 

(63,085

)

 

 

(124,603

)

 

 

(94,329

)

Interest income and other income (expense), net

 

(389

)

 

 

343

 

 

 

1,010

 

 

 

1,168

 

Interest expense

 

(10,351

)

 

 

—

 

 

 

(25,706

)

 

 

—

 

Loss before provision for income taxes

 

(72,674

)

 

 

(62,742

)

 

 

(149,299

)

 

 

(93,161

)

Provision for income taxes

 

615

 

 

 

61

 

 

 

901

 

 

 

183

 

Net loss

$

(73,289

)

 

$

(62,803

)

 

$

(150,200

)

 

$

(93,344

)

Net loss per share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.65

)

 

$

(0.89

)

 

$

(1.70

)

 

$

(1.35

)

Weighted-average shares used in calculating net loss per share:

 

 

 

 

 

 

 

Basic and diluted

 

113,264

 

 

 

70,736

 

 

 

88,539

 

 

 

69,053

 

_______________

(1) Amounts include stock-based compensation expense as follows:

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Cost of revenues

$

75

 

 

$

77

 

 

$

175

 

 

$

90

 

Research and development

 

4,783

 

 

 

21,068

 

 

 

9,520

 

 

 

22,950

 

Sales and marketing

 

2,463

 

 

 

8,441

 

 

 

5,084

 

 

 

9,402

 

General and administrative

 

1,620

 

 

 

12,042

 

 

 

3,520

 

 

 

12,614

 

Total stock-based compensation expense

$

8,941

 

 

$

41,628

 

 

$

18,299

 

 

$

45,056

 

 

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)
 

 

 

October 31, 2020

 

January 31, 2020

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

297,425

 

 

$

306,020

 

Marketable securities

 

126,439

 

 

45,288

 

Accounts receivable, net

 

23,287

 

 

12,659

 

Prepaid expenses and other current assets

 

25,277

 

 

16,667

 

Total current assets

 

472,428

 

 

380,634

 

Property and equipment, net

 

54,787

 

 

10,100

 

Restricted cash, noncurrent

 

—

 

 

4,657

 

Operating lease right-of-use assets

 

138,752

 

 

20,818

 

Other assets

 

8,018

 

 

5,483

 

Total assets

 

$

673,985

 

 

$

421,692

 

 

 

 

 

 

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ (Deficit) Equity

Current liabilities

 

 

 

 

Accounts payable

 

$

16,291

 

 

$

7,549

 

Accrued expenses and other current liabilities

 

36,331

 

 

18,241

 

Deferred revenue, current (1)

 

88,871

 

 

62,725

 

Operating lease liabilities, current

 

10,960

 

 

11,613

 

Total current liabilities

 

152,453

 

 

100,128

 

Term loan, net

 

12,491

 

 

—

 

Convertible notes, net—related party

 

340,788

 

 

203,097

 

Operating lease liabilities, noncurrent

 

138,141

 

 

10,472

 

Other liabilities(1)

 

2,416

 

 

2,729

 

Total liabilities

 

646,289

 

 

316,426

 

Commitments and contingencies

 

 

 

 

Redeemable convertible preferred stock

 

—

 

 

250,581

 

Stockholders’ (deficit) equity

 

 

 

 

Common stock

 

2

 

 

1

 

Additional paid-in capital

 

507,737

 

 

184,522

 

Accumulated other comprehensive loss

 

(107)

 

 

(102)

 

Accumulated deficit

 

(479,936)

 

 

(329,736)

 

Total stockholders’ (deficit) equity

 

27,696

 

 

(145,315)

 

Total liabilities, redeemable convertible preferred stock, and stockholders’ (deficit) equity

 

$

673,985

 

 

$

421,692

 

 

_______________

(1) Total deferred revenue was $90.1 million as of October 31, 2020 (unaudited), of which $1.3 million, is presented within other liabilities, as a noncurrent liability, in the consolidated balance sheets.

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 

 

Three Months Ended October 31,

Nine Months Ended October 31,

 

2020

 

 

2019

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

$

(73,289

)

 

 

$

(62,803

)

 

$

(150,200

)

 

 

$

(93,344

)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Allowance for doubtful accounts

84

 

 

 

122

 

 

1,204

 

 

 

298

 

 

Depreciation and amortization

992

 

 

 

528

 

 

2,508

 

 

 

1,691

 

 

Gain on sale of assets

(12

)

 

 

—

 

 

(12

)

 

 

—

 

 

Amortization of deferred contract acquisition costs

1,099

 

 

 

448

 

 

2,684

 

 

 

1,011

 

 

Stock-based compensation expense

8,941

 

 

 

41,628

 

 

18,299

 

 

 

45,056

 

 

Net accretion of discount of marketable securities

135

 

 

 

(184

)

 

82

 

 

 

(882

)

 

Change in fair value of redeemable convertible preferred stock warrant liability

—

 

 

 

55

 

 

—

 

 

 

109

 

 

Non-cash lease expense

5,250

 

 

 

2,025

 

 

11,835

 

 

 

5,731

 

 

Amortization of discount on convertible notes and term loan issuance costs

6,350

 

 

 

—

 

 

15,964

 

 

 

—

 

 

Non-cash interest expense

3,970

 

 

 

—

 

 

9,709

 

 

 

—

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

(7,079

)

 

 

(3,138

)

 

(11,831

)

 

 

(5,238

)

 

Prepaid expenses and other current assets

(8,874

)

 

 

(3,007

)

 

(13,251

)

 

 

(5,358

)

 

Other assets

(1,175

)

 

 

(559

)

 

(2,537

)

 

 

(1,396

)

 

Accounts payable

299

 

 

 

828

 

 

1,840

 

 

 

2,611

 

 

Accrued expenses and other current liabilities

10,046

 

 

 

3,767

 

 

13,544

 

 

 

4,910

 

 

Deferred revenue

15,102

 

 

 

11,202

 

 

26,041

 

 

 

25,786

 

 

Operating lease liabilities

3,726

 

 

 

(1,851

)

 

(584

)

 

 

(5,024

)

 

Net cash used in operating activities

(34,435

)

 

 

(10,939

)

 

(74,705

)

 

 

(24,039

)

 

Cash flows from investing activities

 

 

 

 

 

 

Purchases of marketable securities

(126,613

)

 

 

(22,963

)

 

(126,613

)

 

 

(75,969

)

 

Sales of marketable securities

—

 

 

 

(3

)

 

—

 

 

 

2,677

 

 

Maturities of marketable securities

6,399

 

 

 

34,700

 

 

45,341

 

 

 

84,300

 

 

Purchases of property and equipment

(22,752

)

 

 

(1,006

)

 

(35,153

)

 

 

(1,855

)

 

Sales of property and equipment

12

 

 

 

—

 

 

12

 

 

 

—

 

 

Capitalized internal-use software

(40

)

 

 

—

 

 

(858

)

 

 

(302

)

 

Net cash provided by (used in) investing activities

(142,994

)

 

 

10,728

 

 

(117,271

)

 

 

8,851

 

 

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from term loan, net of issuance costs

10,000

 

 

 

—

 

 

12,915

 

 

 

—

 

 

Proceeds from issuance of convertible notes—related party

—

 

 

 

—

 

 

150,000

 

 

 

—

 

 

Taxes paid related to net share settlement of equity awards

(192

)

 

 

—

 

 

(378

)

 

 

—

 

 

Repurchases of common stock

—

 

 

 

(59

)

 

—

 

 

 

(70

)

 

Proceeds from exercise of stock options

14,443

 

 

 

4,914

 

 

16,194

 

 

 

7,848

 

 

Net cash provided by financing activities

24,251

 

 

 

4,855

 

 

178,731

 

 

 

7,778

 

 

Effect of foreign exchange rates on cash and cash equivalents and restricted cash

(71

)

 

 

39

 

 

(7

)

 

 

41

 

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

(153,249

)

 

 

4,683

 

 

(13,252

)

 

 

(7,369

)

 

Cash, cash equivalents, and restricted cash

 

 

 

 

 

 

Beginning of period

450,674

 

 

 

14,528

 

 

310,677

 

 

 

26,580

 

 

End of period

$

297,425

 

 

 

$

19,211

 

 

$

297,425

 

 

 

$

19,211

 

 

 

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)
 

 

 

Three Months Ended

October 31,

 

Nine Months Ended

October 31,

 

 

2020

 

2019

 

2020

 

2019

Reconciliation of gross profit and gross margin

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

51,584

 

$

32,751

 

$

138,087

 

$

85,057

Plus: stock-based compensation

 

75

 

77

 

175

 

90

Non-GAAP gross profit

 

$

51,659

 

$

32,828

 

$

138,262

 

$

85,147

GAAP gross margin

 

87.6%

 

86.0%

 

87.0%

 

85.8%

Non-GAAP adjustments

 

0.1%

 

0.2%

 

0.2%

 

0.1%

Non-GAAP gross margin

 

87.7%

 

86.2%

 

87.2%

 

85.9%

Reconciliation of operating expenses

 

 

 

 

 

 

 

 

GAAP research and development

 

$

32,996

 

$

39,712

 

$

81,338

 

$

69,588

Less: stock-based compensation

 

(4,783)

 

(21,068)

 

(9,520)

 

(22,950)

Non-GAAP research and development

 

$

28,213

 

$

18,644

 

$

71,818

 

$

46,638

GAAP research and development as percentage of revenue

 

56.0%

 

104.3%

 

51.3%

 

70.2%

Non-GAAP research and development as percentage of revenue

 

47.9%

 

49.0%

 

45.3%

 

47.0%

GAAP sales and marketing

 

$

48,039

 

$

35,902

 

$

122,952

 

$

74,927

Less: stock-based compensation

 

(2,463)

 

(8,441)

 

(5,084)

 

(9,402)

Non-GAAP sales and marketing

 

$

45,576

 

$

27,461

 

$

117,868

 

$

65,525

GAAP sales and marketing as percentage of revenue

 

81.6%

 

94.3%

 

77.5%

 

75.6%

Non-GAAP sales and marketing as percentage of revenue

 

77.4%

 

72.1%

 

74.3%

 

66.1%

GAAP general and administrative

 

$

32,483

 

$

20,222

 

$

58,400

 

$

34,871

Less: stock-based compensation

 

(1,620)

 

(12,042)

 

(3,520)

 

(12,614)

Less: direct listing expenses

 

(15,718)

 

—

 

(17,955)

 

—

Non-GAAP general and administrative

 

$

15,145

 

$

8,180

 

$

36,925

 

$

22,257

GAAP general and administrative as percentage of revenue

 

55.1%

 

53.1%

 

36.8%

 

35.2%

Non-GAAP general and administrative as percentage of

revenue

 

25.7%

 

21.5%

 

23.3%

 

22.5%

Reconciliation of operating loss and operating margin

 

 

 

 

 

 

 

 

GAAP loss from operations

 

$

(61,934)

 

$

(63,085)

 

$

(124,603)

 

$

(94,329)

Plus: stock-based compensation

 

8,941

 

41,628

 

18,299

 

45,056

Plus: direct listing expenses

 

15,718

 

—

 

17,955

 

—

Non-GAAP loss from operations

 

$

(37,275)

 

$

(21,457)

 

$

(88,349)

 

$

(49,273)

GAAP operating margin

 

(105.1)%

 

(165.7)%

 

(78.5)%

 

(95.2)%

Non-GAAP adjustments

 

41.8%

 

109.4%

 

22.8%

 

45.5%

Non-GAAP operating margin

 

(63.3)%

 

(56.3)%

 

(55.7)%

 

(49.7)%

 

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages and per share data)

(unaudited)
 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Reconciliation of net loss

 

 

 

 

 

 

 

GAAP net loss

$

(73,289

)

 

$

(62,803

)

 

$

(150,200

)

 

$

(93,344

)

Plus: stock-based compensation

 

8,941

 

 

 

41,628

 

 

 

18,299

 

 

 

45,056

 

Plus: amortization of debt discount

 

6,346

 

 

 

—

 

 

 

15,955

 

 

 

—

 

Plus: non-cash interest

 

3,970

 

 

 

—

 

 

 

9,709

 

 

 

—

 

Plus: direct listing expenses

 

15,718

 

 

 

—

 

 

 

17,955

 

 

 

—

 

Non-GAAP net loss

$

(38,314

)

 

$

(21,175

)

 

$

(88,282

)

 

$

(48,288

)

Reconciliation of net loss per share

 

 

 

 

 

 

 

GAAP net loss per share, basic

$

(0.65

)

 

$

(0.89

)

 

$

(1.70

)

 

$

(1.35

)

Non-GAAP adjustments to net loss

 

0.31

 

 

 

0.59

 

 

 

0.70

 

 

 

0.65

 

Non-GAAP net loss per share, basic

$

(0.34

)

 

$

(0.30

)

 

$

(1.00

)

 

$

(0.70

)

Weighted-average shares used in GAAP and non-GAAP per share calculation, basic and diluted

 

113,264

 

 

 

70,736

 

 

 

88,539

 

 

 

69,053

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Computation of free cash flow

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

$

(142,994

)

 

$

10,728

 

 

$

(117,271

)

 

$

8,851

 

Net cash provided by financing activities

 

$

24,251

 

 

$

4,855

 

 

$

178,731

 

 

$

7,778

 

Net cash used in operating activities

 

$

(34,435

)

 

$

(10,939

)

 

$

(74,705

)

 

$

(24,039

)

Less: purchases of property and equipment

 

 

(22,752

)

 

 

(1,006

)

 

 

(35,153

)

 

 

(1,855

)

Less: capitalized internal-use software

 

 

(40

)

 

 

—

 

 

 

(858

)

 

 

(302

)

Plus: purchases of property and equipment from build-out of corporate headquarters

 

 

21,822

 

 

 

343

 

 

 

33,130

 

 

 

754

 

Plus: direct listing expenses

 

 

15,903

 

 

 

—

 

 

 

19,112

 

 

 

—

 

Free cash flow

 

$

(19,502

)

 

$

(11,602

)

 

$

(58,474

)

 

$

(25,442

)

 

Catherine Buan

Asana Investor Relations

[email protected]

Stephanie Hess

Asana Corporate Communications

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Networks Internet Data Management Technology Software

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Comtech Telecommunications Corp. Declares $0.10 Per Share Quarterly Cash Dividend

Comtech Telecommunications Corp. Declares $0.10 Per Share Quarterly Cash Dividend

MELVILLE, N.Y.–(BUSINESS WIRE)–
December 9, 2020– Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today that its Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on February 19, 2021, to shareholders of record at the close of business on January 20, 2021. The dividend is the Company’s forty-second consecutive quarterly dividend. Future dividends remain subject to compliance with financial covenants under the Company’s secured credit facility as well as Board approval.

Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

PCMTL

Media Contacts:

Michael D. Porcelain, President and Chief Operating Officer

(631) 962-7000

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Hardware Electronic Design Automation Semiconductor Aerospace Satellite Manufacturing Technology Audio/Video Transport Telecommunications Software Logistics/Supply Chain Management Networks VoIP Internet

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HanesBrands Appoints Cheryl K. Beebe to Board of Directors

HanesBrands Appoints Cheryl K. Beebe to Board of Directors

WINSTON-SALEM, N.C.–(BUSINESS WIRE)–
HanesBrands (NYSE: HBI), a leading global marketer of branded everyday basic apparel, today announced that financial executive Cheryl K. Beebe has been appointed to the company’s Board of Directors.

With the appointment of Beebe, whose term runs until the 2021 annual meeting of stockholders, the HanesBrands Board has nine members. Beebe will serve on the Board’s audit committee.

“Cheryl brings extensive experience in global strategy and a deep background in all aspects of financial operations,” said Steve Bratspies, chief executive officer, HanesBrands. “Her knowledge will be particularly valuable as we build our strategy to unlock long-term growth and put the consumer at the center of everything we do.”

Beebe’s prior leadership experience includes a decade as executive vice president and chief financial officer of Ingredion, a leading global ingredients solutions provider, where she was responsible for all aspects of the company’s financial operations. Beebe also had responsibility for the global IT and procurement functions and played a key role in setting the strategic direction of the company.

In more than 30 years with Ingredion, Beebe held a number of other leadership positions in the company, including senior advisor to the CEO, vice president finance and corporate treasurer. She is a current member of the board of directors of Packaging Corporation of America (PKG) and The Mosaic Company (MOS). She also serves as a member and chair of the Board of Trustees for Goldman Sachs Asset Management GSTII funds and a member of the Board of Trustees of Fairleigh Dickinson University, New Jersey’s largest private university.

“We’re pleased to have a leader with Cheryl’s record of financial leadership and strategic insight join the team,” said Chairman of the Board Ronald L. Nelson. “We welcome Cheryl and look forward to her contributions and leadership as we transform HanesBrands.”

Beebe holds a bachelor’s degree in accounting from Rutgers University and a master’s degree in business administration from Fairleigh Dickenson University.

HanesBrands

HanesBrands, based in Winston-Salem, N.C., is a socially responsible leading marketer of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia-Pacific. The company sells its products under some of the world’s strongest apparel brands, including Hanes, Champion, Bonds, Maidenform, DIM, Bali, Playtex, Bras N Things, Nur Die/Nur Der,Alternative, L’eggs, JMS/Just My Size, Lovable, Wonderbra, Berlei and Gear for Sports. The company sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and activewear produced in the company’s low-cost global supply chain. A Fortune 500 company and member of the S&P 500 stock index (NYSE: HBI), Hanes has approximately 63,000 employees in more than 40 countries. For more information, visit the company’s corporate website at www.Hanes.com/corporate and newsroom at https://newsroom.hanesbrands.com/. Connect with the company via social media: Twitter (@hanesbrands), Facebook (www.facebook.com/hanesbrandsinc), Instagram (@hanesbrands), and LinkedIn (@Hanesbrandsinc).

News Media Contact:

Kirk Saville (336) 519-6192

Analysts and Investors Contact:

T.C. Robillard (336) 519-2115

KEYWORDS: North Carolina United States North America

INDUSTRY KEYWORDS: Retail Textiles Manufacturing Fashion

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AngioDynamics to Report Fiscal 2021 Second Quarter Financial Results on January 7, 2021

AngioDynamics to Report Fiscal 2021 Second Quarter Financial Results on January 7, 2021

LATHAM, N.Y.–(BUSINESS WIRE)–
AngioDynamics, Inc. (NASDAQ: ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, peripheral vascular disease, and oncology, today announced that it will report financial results for the second quarter of fiscal year 2021 before the market open on Thursday, January 7, 2021. The Company’s management will host a conference call at 8:00 a.m. ET the same day to discuss the results.

To participate in the conference call, dial 1-877-407-0784 (domestic) or +1-201-689-8560 (international) and refer to the passcode 13714154.

This conference call will also be webcast and can be accessed from the “Investors” section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

A recording of the call will also be available from 11:00 a.m. ET on Thursday, January 7, 2021, until 11:59 p.m. ET on Thursday, January 14, 2021. To hear this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13714154.

About AngioDynamics, Inc.

AngioDynamics, Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, peripheral vascular disease, and oncology. AngioDynamics’ diverse product lines include market-leading ablation systems, vascular access products, angiographic products and accessories, drainage products, thrombolytic products and venous products. For more information, visit www.angiodynamics.com.

Investor:

AngioDynamics, Inc.

Stephen Trowbridge, Executive Vice President & CFO

(518) 795-1408

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: General Health Surgery Medical Devices Health Oncology

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APi Group Increases Full Year 2020 Guidance

APi Group Increases Full Year 2020 Guidance

NEW BRIGHTON, Minn.–(BUSINESS WIRE)–
APi Group Corporation (NYSE: APG) (“APG”, “APi” or the “Company”) today provided an update on full year 2020 guidance ahead of the Company’s participation in a non-deal roadshow hosted by Barclays on Thursday, December 10, 2020.

2020 Guidance Update

Fourth quarter 2020 performance is tracking ahead of prior expectations. As a result, the Company announced it is increasing guidance for 2020 and believes that adjusted EBITDA will range between $370 to $380 million, up from $360 to $370 million, and adjusted EPS will range between $1.14 to $1.19, up from $1.11 to $1.15, based on an adjusted diluted share count of 177 million.

Management Comments

Russ Becker, APi’s President and Chief Executive Officer stated: “Our latest expectations reinforce the focus and commitment of our entire organization to continue serving customers safely and efficiently despite macro headwinds faced in today’s environment. We believe that our performance to date has shown the strength of the protective moat and the resiliency of our services-focused business model. We are grateful for the continued leadership efforts of our approximately 15,000 team members. While we don’t know what the future impact of COVID-19 may be, we remain cautiously optimistic while being realistic and remain focused on our pre COVID-19 objectives and the long-term opportunities in front of us.”

About APi:

APi is a market-leading business services provider of safety, specialty and industrial services in over 200 locations, primarily in North America and with an expanding platform in Europe. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at www.apigroupcorp.com.

Forward-Looking Statements and Disclaimers

Certain statements in this announcement are forward-looking statements which are based on the Company’s expectations, intentions and projections regarding the Company’s future performance, anticipated events or trends and other matters that are not historical facts, including expectations regarding (i) certain expected 2020 financial results, including the Company’s updated guidance for 2020, the assumptions it made and the drivers contributing to its guidance; (ii) the Company’s business model, long-term targets, goals, opportunities and strategies; and (iii) the future impact of the COVID-19 pandemic. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition and other risks that may affect the Company’s future performance, including the impacts of the COVID-19 pandemic on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) the ability to recognize the anticipated benefits of the Company’s acquisitions, including its ability to successfully integrate and make necessary capital investments to support additional acquisitions, and the Company’s ability to take advantage of strategic opportunities; (iii) changes in applicable laws or regulations; (iv) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (v) the trading price of the Company’s common stock, which may be positively or negatively impacted by the repurchase program, market and economic conditions, including as a result of the COVID-19 pandemic, the availability of Company common stock, the Company’s financial performance or determinations following the date of this announcement in order to use the Company’s funds for other purposes; (vi) the ability of the Company to enter into a Rule 10b5-1 trading plan during an open trading window; and (vii) other risks and uncertainties. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company’s management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company’s performance using the same tools that management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers and (c) determine certain elements of management’s incentive compensation. Specifically:

  • The Company’s management believes that adjusted EBITDA and adjusted earnings per share (“adjusted EPS”), which exclude business transformation and other expenses for the integration of acquired businesses, the impact and results of businesses classified as assets held-for-sale and businesses divested, and one-time and other events such as impairment charges, share-based compensation, transaction and other costs related to acquisitions, amortization of intangible assets and depreciation remeasurements associated with acquisitions, net COVID-19 relief, and certain tax benefits from the acquisition of APi Group, Inc. (the “APi Acquisition”), are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations.
  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. The Company supplements the reporting of its consolidated financial information with certain non-U.S. GAAP financial measures, including EBITDA and adjusted EBITDA, which is defined as EBITDA excluding the impact of certain non-cash and other specifically identified items (“adjusted EBITDA”). The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA and adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results. Consolidated EBITDA is calculated in a manner consistent with segment EBITDA, which is a measure of segment profitability.

The Company does not provide reconciliations of forward-looking non-U.S. GAAP adjusted EBITDA, adjusted EPS guidance, and adjusted diluted share count to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, business transformation and other expenses for the integration of acquired businesses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions, amortization of intangible assets, net COVID-19 relief, and certain tax benefits from the APi Acquisition, and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies.

Investor Relations Inquiries:

Olivia Walton

Vice President of Investor Relations

Tel: +1 651-604-2773

Email: [email protected]

Media Contact:

Liz Cohen

Kekst CNC

Tel: +1 212-521-4845

Email: [email protected]

KEYWORDS: Minnesota United States North America

INDUSTRY KEYWORDS: Architecture Commercial Building & Real Estate Construction & Property Steel Building Systems Other Construction & Property Manufacturing Residential Building & Real Estate

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Gibson Energy Announces $250 Million Hybrid Note Offering

All financial figures are in Canadian dollars unless otherwise noted

CALGARY, Alberta, Dec. 09, 2020 (GLOBE NEWSWIRE) — Gibson Energy Inc. announced today that it will issue $250 million of 5.25% fixed-to-fixed rate subordinated notes due December 22, 2080 (the “Offering”).

The Offering is expected to close on or about December 22, 2020, subject to customary closing conditions. Gibson intends to use the net proceeds from the Offering to fund the previously announced redemption of its outstanding 5.25% convertible unsecured debentures due July 15, 2021, to reduce outstanding indebtedness under its revolving credit facility and for general corporate purposes.

The notes are being offered through a syndicate of investment dealers led by CIBC Capital Markets and RBC Capital Markets under Gibson’s short form base shelf prospectus dated June 26, 2019 and a related prospectus supplement dated December 9, 2020.

This news release does not constitute an offer to sell or the solicitation of an offer to buy the notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes have not been approved or disapproved by any regulatory authority. The notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any securities laws of any state of the United States and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, United States persons.

About Gibson

Gibson Energy Inc. (“Gibson” or the “Company”), (TSX: GEI) is a Canadian-based oil infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of crude oil and refined products. Headquartered in Calgary, Alberta, the Company’s operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and also include the Moose Jaw Facility and an infrastructure position in the U.S.

Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”) including, but not limited to, statements concerning the closing of the Offering and expected timing thereof and the use of proceeds from the Offering, including the redemption of the debentures. All statements other than statements of historical fact are forward-looking statements. The use of any of the words ‘‘anticipate’’, ‘‘plan’’, ‘‘contemplate’’, ‘‘continue’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘propose’’, ‘‘might’’, ‘‘may’’, ‘‘will’’, ‘‘shall’’, ‘‘project’’, ‘‘should’’, ‘‘could’’, ‘‘would’’, ‘‘believe’’, ‘‘predict’’, ‘‘forecast’’, ‘‘pursue’’, ‘‘potential’’ and ‘‘capable’’ and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. The Company does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in “Forward-Looking Statements” and “Risk Factors” included in the Company’s Annual Information Form dated February 24, 2020 as filed on SEDAR and available on the Gibson website at www.gibsonenergy.com.

For further information, please contact:

Mark Chyc-Cies
Vice President, Strategy, Planning & Investor Relations
Phone: (403) 776-3146
Email: [email protected]



Posted on

Enzo Biochem Reports First Quarter Fiscal 2021 Financial Results and Provides Business Update

  • Company
    reports $28.
    7
    million in revenue
    ,
    exceeding revenue guidance by $1.
    7
    million and
    representing
    a
    47
    % increase
    over
    sequential
    quarter and continued recovery
    and opportunity
    from impact of COVID-19 pandemic on business operations.
  • Profitable quarter
    reflects
    positive EBITDA in excess of $1 million and
    EPS of $0.01.
  • Company achieves significant
    progress in applying
    its
    assets to new market
    opportunities in
    cluding
    point-of-care and direct-to-consumer
    offerings
    , and progress in ongoing strategic alignment
    .
  • Industry leaders Ian Walters, MD and Mary Tagliaferri, MD join
    ENZO
    Board of Directors

Conference call and live webcast scheduled for today,

Wednesday
,
December 9
, 2020 at 4:30 pm (ET)

NEW YORK, Dec. 09, 2020 (GLOBE NEWSWIRE) — Enzo Biochem, Inc. (NYSE:ENZ), a leading biosciences and diagnostics company, today reported financial results for the first quarter ended October 31, 2020 and provided a business update on recent corporate and operational developments.

“During this quarter we exceeded guidance and achieved profitability based on strong results that reflect our strategy to both streamline our operations and expand our product and platform capabilities as an integrated solutions provider of products and services in molecular diagnostics, immunoassays, cytology, and immunohistochemistry,” said Elazar Rabbani, PhD., Chairman and Chief Executive Officer of Enzo. “The rapid application of our proprietary GenFlex™ platform in response to the COVID-19 pandemic is the most recent reflection of the strength and flexibility of our molecular diagnostic capabilities. We have also worked aggressively to expand our operations to focus on more advanced, higher margin market opportunities that reflect the core strengths of Enzo and our team. Our portable microplate reader brings new potential capabilities in point-of-care testing to researchers and healthcare providers while our GoTestMeNow.com online portal represents a major step forward in bringing access to diagnostic testing directly to people who need it conveniently and quickly.”

“During this very strong quarter for our company we also added two outstanding industry leaders to our Board of Directors. Drs. Mary Tagliaferri and Ian Walters significantly expand the operational and commercial expertise of our Company’s board, particularly concerning companion diagnostics and other therapeutic opportunities. We continue to execute on our strategy to position Enzo as a leading vertically integrated end–to-end diagnostic company capitalizing on our multi-platform technologies and products now and in a post-COVID-19 environment,” said Barry Weiner, President of Enzo.

Operational Highlights:

  • The Company posted another successful quarter of progress in implementing its strategic plan as a fully integrated end-to-end diagnostic product and service provider while navigating through a range of operational issues during the COVID-19 pandemic. Our first responder staff’s response and commitment has been noteworthy in our achieving these goals.
  • Enzo rapidly expanded capacity in reagent and consumable supply manufacturing while broadening its menu of tests on its GenFlex™ molecular diagnostic platform.
  • The Company continued its strategic operational expansion program including plans to double its facility footprint in Farmingdale, NY.
  • Enzo completed the launch of the company’s new portable microplate reader for use with its ELISA and assay kits to simplify laboratory workflow and expand POC capabilities in molecular diagnostics.
  • In response to the continuing demand for improved access to molecular testing, Enzo introduced the GoTestMeNow™ online portal where consumers can directly order COVID-19 laboratory tests that are physician-approved, with plans to expand its use to other testing needs in 2021.
  • Customer interest for Enzo’s diagnostic platforms was strong following award of Emergency Use Authorization from the FDA highlighting the Company’s integrated in-house capabilities and ability to develop high throughput sensitive detection platforms. These platforms support rapid scalability of testing for COVID-19 in a model that can be applied to future testing needs in multiple areas including upper respiratory panels, STDs and expanded women’s health panels.

Corporate & Organizational Highlights:

  • Enzo added industry veterans Mary Tagliaferri, MD and Ian B. Walters, MD to the Company Board of Directors.
  • The Company planned and executed a range of operational and technological strategies to further its cost efficiencies.
  • The Company is in the process of evaluating various business opportunities concerning Enzo’s assets and capabilities for investment, partnerships, and commercial relationships.

Financial Highlights:

  • Following a slow-down of operations at the beginning of the COVID-19 pandemic as a result of a sharp industry-wide fall-off in medical visits and the closure of many customer facilities, Enzo monthly revenues have registered steady gains since April. Quarterly revenues advanced 47% sequentially and 42% year-over-year during the period.
  • The Company’s current annual revenue run-rate is approximately $115 million, representing more than 50% topline growth on an annualized basis.
  • Gross margins in the Enzo Clinical Labs division reached 39% in the first quarter.
  • 1Q21 net income was $0.3 million compared to a net loss of $7.6 million in the previous year’s period, representing a $7.9 million improvement over the corresponding period a year ago and a $3.6 million improvement over the prior quarter.

First
Quarter 202
1
Financial Results

  • Total first quarter revenue was $28.7 million, compared to $20.2 million in the first quarter last year, an increase of 42%, reflecting continuing expansion of operations and revenue following the slow-down associated with the impact of COVID-19 on the diagnostic testing sector. Consolidated gross margin was 42% compared to 28% a year ago.
  • Enzo Clinical Lab revenue increased 66% to $21.2 million from $12.8 million in the first quarter 2020 and more than 55% sequentially. The year over year improvement was driven by volume growth to 300,000 accessions in the period versus approximately 200,000 in the previous year’s first quarter. Net revenue per accession increased to more than $69 per accession vs. $62 in the previous year’s period. Clinical services gross margin amounted to 39% up from 14% in the first quarter 2020, primarily due to testing mix as well as from ongoing cost-saving initiatives.
  • Enzo Life Sciences revenue of $7.4 million increased 27% from $5.8 million in the previous quarter reflecting the beginning of a recovery from the impact of COVID-19 pandemic globally. Gross margin was 49%, compared to 52% in the previous year’s quarter and 46% in the fourth quarter due to product mix and the impact of the COVID-19 pandemic.
  • Research and development expenses decreased 29% to $0.8 million (3% of total revenues) from $1.1 million, (5% of total revenues), in the year ago period. Selling, general and administrative expenses of $10.0 million (down to 35% of total revenue) declined from $11.1 million (55% of total revenue) in year ago period, 10% lower.
  • GAAP net income was $0.3 million or $0.01 per share versus a net loss of $3.3 million or ($0.07) per share last quarter and a loss of $7.7 million, or ($0.16) per share, in the year-ago quarter. Adjusted EBITDA in the quarter was $1.0 million compared to an adjusted EBITDA loss of $5.7 million in the previous year’s first quarter. The year-over-year improvement was driven mainly by an increase in gross margin (from COVID-19 testing and lower reagent costs) and lower SG&A expenses from headcount efficiencies, as well as reduced intangibles amortization and travel.
  • Cash and cash equivalents totaled $46 million at the end of the first quarter, slightly lower than the $48 at the end of the fiscal year due to increases in accounts receivable, inventory, and capital expenditures. Working capital improved to $37 million from $36 million at the end of the fiscal year. As of October 31, 2020, the Company had 47.9 million shares outstanding. 

Conference Call and Webcast Information

The Company will host a conference call on Wednesday, December 9, 2020, at 4:30 pm, Eastern Standard Time, to review the operational, corporate, and financial highlights. To participate in the conference call, please dial the following numbers prior to the start of the call or click the webcast link below to participate over the internet:

Domestic: 877-407-0792
International: 201-689-8263
Conference ID: 13713236
Webcast:  http://public.viavid.com/index.php?id=142445
   

A replay of the call will be available via webcast for on-demand listening shortly after completion of the call on the Investor Relations section of the Company’s website, https://www.enzo.com, and will remain available for approximately 90 days. Please access the Company’s website at least 15 minutes ahead of the conference to register, download, and install any necessary audio software.

Adjusted Financial Measures

To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Enzo Biochem attached to this news release and will post to the investor relations section of the Company’s website (https://www.enzo.com) any reconciliation of differences between GAAP and Adjusted financial information that may be required in connection with issuing the Company’s quarterly financial results.

The Company uses EBITDA as a measure of performance to demonstrate earnings exclusive of interest, taxes, depreciation and amortization. Adjustments to EBITDA are for items of a non-recurring nature and are reconciled on the table provided. The Company manages its business based on its operating cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of the Company’s performance based on the Company’s net loss not its cash flows, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company’s case is the removal of interest, taxes, depreciation and amortization.  

We refer you to the tables attached to this press release, which includes reconciliation tables of GAAP to Adjusted net income (loss) and EBITDA to Adjusted EBITDA.  


About Enzo Biochem, Inc.

Enzo Biochem is a pioneer in molecular diagnostics, leading the convergence of clinical laboratories, life sciences and intellectual property through the development of unique diagnostic platform technologies that provide numerous advantages over previous standards. A global company, Enzo Biochem utilizes cross-functional teams to develop and deploy products, systems and services that meet the ever-changing and rapidly growing needs of health care today and into the future. Underpinning Enzo Biochem’s products and technologies is a broad and deep intellectual property portfolio, with 475 issued patents worldwide along with extensive enabling technologies and platforms. 

Forward-Looking Statements

Except for historical information, the matters discussed in this news release may be considered “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management, including those related to cash flow, gross margins, revenue, and expenses which are dependent on a number of factors outside of the control of the Company including, inter alia, the markets for the Company’s products and services, costs of goods and services, other expenses, government regulations, litigation, and general business conditions. See Risk Factors in the Company’s Form 10-K for the fiscal year ended July 31, 2020. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this press release.

Contacts:

Enzo Biochem, Inc.

David Bench, CFO
212-583-0100
[email protected]

Investors:

LifeSci Advisors, LLC
Jeremy Feffer
212-915-2568
[email protected] 

Anreder & Company
Steven Anreder
212-532-3232
[email protected]

Media:

Berry & Company Public Relations
Marisa Monte
212-253-8881
[email protected]

ENZO BIOCHEM, INC.
(in thousands, except per share data)
       
  Three months ended


Selected operations data:

 		October 31
  (unaudited)
       
   
2019
 		     
2019
 		 
       
Total revenues $ 28,655     $ 20,207  
       
Gross profit $ 11,897     $ 5,686  
       
Gross profit %   42 %     28 %
       
Income (loss) before income taxes   299       (7,648 )
       
Benefit for income taxes   –       –  
       
Net income (loss) $ 299     $ (7,648 )
       
Basic net income (loss) per share $ 0.01     $ (0.16 )
Diluted net income (loss) per share $ 0.01     $ (0.16 )
       
Weighted average shares outstanding – basic   47,895       47,557  
Weighted average shares outstanding – diluted   47,905       47,557  
       
       


Selected balance sheet data:

 		10/31/2020
(unaudited)


 		    7/31/2020
(unaudited)


 		 
       
Cash and cash equivalents (including restricted cash of $750) $ 46,664     $ 48,615  
       
Working capital $ 36,694     $ 35,694  
       
Stockholders’ equity $ 59,018     $ 58,381  
       
Total assets $ 113,503     $ 112,538  
       

The following table presents a reconciliation of reported net income (loss) and basic and diluted net income (loss) per share to non-GAAP net income (loss) and basic and diluted net income (loss) per share for the three months ended October 31, 2020 and 2019:

ENZO BIOCHEM, INC.
Non-GAAP Reconciliation Table
(Unaudited, in thousands, except per share data)
       
  Three months ended
  October 31
   
2020
 		   
2019
 		 
       
Reported GAAP net income (loss) $ 299   $ (7,648 )
Adjusted for:      
Legal expenses related to contingencies   –     800  
Contested proxy expenses   –     645  
Non-GAAP net income (loss) $ 299   $ (6,203 )
       
       
Weighted Shares Outstanding:      
Basic   47,895     47,557  
Diluted   47,905     47,557  
       
       
Basic and diluted earnings per share:      
Basic net income (loss) per share GAAP $ 0.01   $ (0.16 )
Diluted net income (loss) per share GAAP $ 0.01   $ (0.16 )
       
Basic net income (loss) per share non-GAAP $ 0.01   $ (0.13 )
Diluted net income (loss) per share non-GAAP $ 0.01   $ (0.13 )
       

The following table presents a reconciliation of reported net income (loss) for the three months ended October 31, 2020 and 2019, respectively to EBITDA and Adjusted EBITDA:

ENZO BIOCHEM, INC.
EBITDA & Adjusted EBITDA Reconciliation Table
(Unaudited, in thousands)
       
  Three months ended
  October 31
 
2020
 		 
2019
       
GAAP net income (loss) $ 299   $ (7,648 )
Plus (minus):      
Depreciation and amortization   660     725  
Interest expense (income)   51     (237 )
EBITDA $ 1,010   $ (7,160 )
       
Adjusted for:      
Legal expenses related to contingencies   –     800  
Contested proxy expenses   –     645  
Adjusted EBITDA $ 1,010   $ (5,715 )
       



Posted on

Mesa Air Group Reports Fourth Quarter and Full-Year Fiscal 2020 Profit December 9, 2020

PHOENIX, Dec. 09, 2020 (GLOBE NEWSWIRE) — Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2020 financial and operating results.


Fiscal 2020 Q4


Highlights

  • EPS of $0.32
    , Full Year $
    0
    .7
    8
  • Year-end
    cash
    increased by $34.5 million to
    $99.4 million


Recent Update


s

  • Amended
    capacity purchase agreement
    with American to operate 40 CRJ-900
    s
    for a five-year term
  • Commenced
    c
    argo
    operations for DHL
    with two Boeing
    737
    -400F  
  • Added 10 new E175 aircraft to our United fleet in November and December
  • Entered
    into a
    $195 million
    l
    oan
    u
    nder
    t
    he
    CARES Act
    with the U.S. Treasury

Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR1 was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.

Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.


Full Year

Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income1 was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.

_______________
1 See Reconciliation of non-GAAP financial measures

Operationally, we ran a 99.9% controllable completion factor compared to 99.4% in 2019 and a 94.8% total completion factor, which includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations and flights, compared to 97.0% in 2019.

“Our industry was among the hardest hit by COVID-19 and the global impact that followed,” said Jonathan Ornstein, Chairman and Chief Executive Officer. “Despite a significant reduction in flying, we were able to find creative ways to reduce costs, operate profitably, generate positive cash-flow, and protect our employees from involuntary furloughs. We also entered the cargo market through our new agreement with DHL – diversifying our revenue sources and creating new opportunities for our company. I can’t thank our hardworking employees enough, their dedication and professionalism truly went above and beyond this year.”

Mike Lotz, President and Chief Financial Officer, continued, “Given the impact of the pandemic, our financial performance exceeded our early expectations. We also improved our liquidity and closed on a $195 million five-year loan under the CARES Act.”

“Despite the global pandemic, our employees showed up day after day to safely and efficiently keep our operation moving,” said Brad Rich, Executive Vice President and Chief Operating Officer. Our operational performance coupled with our low-cost model helped Mesa extend our relationship with American; flying 40 CRJ-900 aircraft for a five-year term. We also took delivery of 10 of our 20 new E175 aircraft for United and added two 737-400F cargo aircraft to our fleet operating for DHL.”

We are providing the following Block Hour and Pass-Through Maintenance Expense Guidance going forward:

BLOCK HOURS Q1 Q2 Q3 Q4
FY2020 Actuals 115,562 108,305 31,622 57,622
FY2021 Guidance 68,000 73,000 * *

PASS THROUGH MTC Q1 Q2 Q3 Q4 Total
FY2020 Actuals 7.4 9.1 (2.5) 9.3 23.3
FY2021 Guidance 15.0 13.0 7.0 5.0 40.0

*to be provided in subsequent quarters

Reconciliation of non-GAAP financial measure
s

Although these financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), certain non-GAAP financial measures may provide investors with useful information regarding the underlying business trends and performance of Mesa’s ongoing operations and may be useful for period-over-period comparisons of such operations. The tables below reflect supplemental financial data and reconciliations to GAAP financial statements for the three and twelve months ended September 30, 2020 and the three and twelve months ended September 30, 2019. Readers should consider these non-GAAP measures in addition to, not a substitute for, financial reporting measures prepared in accordance with GAAP. These non-GAAP financial measures exclude some, but not all items that may affect the Company’s net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies.

Reconciliation of GAAP versus Non-GAAP Disclosures (unaudited)

(In thousands, except for per diluted share)

    Three months ended September 30, 2020
    Income Before

Taxes 		    Income Tax

(Expense)/Benefit 		    Net

Income 		    Net Income

per

Diluted Share
GAAP Income   $ 14,545     $ (3,170 )   $ 11,375     $ 0.32
                               
Interest Expense     9,452                        
Interest Income     (10 )                      
Depreciation and Amortization     20,640                        
EBITDA     44,627                        
                               
Aircraft Rent     9,606                        
EBITDAR     54,233                        
                               

    Three months ended September 30, 2019
    Income Before

Taxes 		    Income Tax

(Expense)/Benefit 		    Net

Income 		    Net Income

per

Diluted Share
GAAP Income   $ 17,059     $ (4,815 )   $ 12,244     $ 0.35
FY19 Adjustments (1)(3)     —       487       487        
Adjusted Income   $ 17,059     $ (4,328 )   $ 12,731     $ 0.36
                               
Interest Expense     13,607                        
Interest Income     (313 )                      
Depreciation and Amortization     20,465                        
EBITDA     50,818                        
                               
Aircraft Rent     11,103                        
EBITDAR     61,921                        
                               

    Twelve months ended September 30, 2020
    Income Before

Taxes 		    Income Tax

(Expense)/Benefit 		    Net

income 		    Net Income

per

Diluted Share
GAAP Income   $ 36,995     $ (9,531 )   $ 27,464     $ 0.78
                               
Interest Expense     44,120                        
Interest Income     (105 )                      
Depreciation and Amortization     82,296                        
Adjusted EBITDA     163,306                        
                               
Aircraft Rent     48,802                        
Adjusted EBITDAR     212,108                        
                               

    Twelve months ended September 30, 2019
    Income Before

Taxes 		    Income Tax

(Expense)/Benefit 		    Net

income 		    Net Income

per

Diluted Share
GAAP Income/(Loss)   $ 63,286     $ (15,706 )   $ 47,580     $ 1.36
FY19 Adjustments (1) (2) (3)     13,156       (3,265 )     9,891        
Adjusted Income   $ 76,442     $ (18,971 )   $ 57,471     $ 1.64
                               
Interest Expense     55,717                        
Interest Income     (1,501 )                      
Depreciation and Amortization     77,994                        
Adjusted EBITDA     208,652                        
                               
Aircraft Rent     52,206                        
Adjusted EBITDAR     260,858                        
                               

Adjustments for three months and twelve months ended September 30, 2019:

1) Includes lease termination expense of $9.5 million related to the acquisition of ten CRJ-700 aircraft previously leased during the three months ended September 30, 2019
2) Includes adjustment for loss on extinguishment of debt of $3.6 million related to repayment of the Company’s Spare Engine Facility during the nine months ended June 30, 2019
3) Includes adjustment for tax expense resulting from changes in various State income tax rates that were enacted throughout the year

Mesa Air Group will host a conference call with analysts on Wednesday, December 9 at 4:30pm ET/2:30pm MT. The conference call number is 888-469-2054 (Passcode: Phoenix). The conference call can also be accessed live via the web by visiting https://edge.media-server.com/mmc/p/i83np4c5. A recorded version will be available on Mesa’s website approximately two hours after the call for approximately 14 days.

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 104 cities in 39 states, the District of Columbia, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of November 30th, 2020, Mesa has a fleet of 157 aircraft with approximately 384 daily departures and 3,200 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc., United Airlines, Inc., and DHL.

Forward-Looking Statements

Certain statements contained in this press release that are not historical facts contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to the “safe harbor” created by those sections. Forward-looking statements can be identified by the use of words such as “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximate” or “plan,” or the negative of these words and phrases or similar words or phrases. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. For more information on risk factors for Mesa Air Group, Inc.’s business, please refer to the periodic reports the Company files with the Securities and Exchange Commission from time to time. Many of the risks identified in the periodic reports have been and will continue to be heightened as a result of the ongoing and numerous adverse effects arising from the COVID-19 pandemic. These forward-looking statements herein speak only as of the date of this press release and should not be relied upon as predictions of future events. Mesa Air Group, Inc. expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in Mesa Air Group, Inc.’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except as required by law.

MESA AIR GROUP, INC.

Consolidated Statements of Operations
and Comprehensive Income

(In thousands, except per share amounts) (Unaudited)

    Three Months Ended

September 30, 		    Twelve Months Ended

September 30, 		 
    2020     2019     2020     2019  
Operating revenues:                                
Contract revenue   $ 97,361     $ 172,248     $ 506,590     $ 682,834  
Pass-through and other     10,678       15,582       38,480       40,523  
Total operating revenues     108,039       187,830       545,070       723,357  
                                 
Operating expenses:                                
Flight operations     34,043       55,243       169,242       210,879  
Fuel     168       155       672       588  
Maintenance     47,102       57,010       192,123       196,514  
Aircraft rent     9,606       11,102       48,802       52,206  
Aircraft and traffic servicing     418       995       3,356       3,972  
General and administrative     13,014       12,406       52,246       50,527  
Depreciation and amortization     20,640       20,466       82,296       77,994  
Lease termination     —       —       —       9,540  
CARES Act Grant Recognition     (40,816 )     —       (83,834 )     —  
Total operating expenses     84,175       157,377       464,903       602,220  
Operating income     23,864       30,453       80,167       121,137  
                                 
Other (expenses) income, net:                                
Interest expense     (9,452 )     (13,607 )     (44,120 )     (55,717 )
Interest income     10       313       105       1,501  
Loss on extinguishment of debt     —       —       —       (3,616 )
Other (expense) income, net     123       (101 )     843       (19 )
Total other (expense), net     (9,319 )     (13,395 )     (43,172 )     (57,851 )
                                 
Income before taxes     14,545       17,058       36,995       63,286  
Income tax expense     3,170       4,815       9,531       15,706  
Net income and comprehensive income   $ 11,375     $ 12,243     $ 27,464     $ 47,580  
                                 
Net income per share attributable to common shareholders                                
Basic   $ 0.32     $ 0.35     $ 0.78     $ 1.37  
Diluted   $ 0.32     $ 0.35     $ 0.78     $ 1.36  
                                 
Weighted-average common shares outstanding                                
Basic     35,486       35,003       35,237       34,764  
Diluted     35,486       35,067       35,308       35,064  
                                 

MESA AIR GROUP, INC.

Consolidated Balance Sheets

(In thousands, except shares) (Unaudited)

    September 30,

2020 		    September 30,

2019 		 
ASSETS              
                 
CURRENT ASSETS:                
Cash and cash equivalents   $ 99,395     $ 68,855  
Restricted cash     3,446       3,646  
Receivables, net     13,712       23,080  
Expendable parts and supplies, net     22,971       21,337  
Prepaid expenses and other current assets     16,067       40,923  
Total current assets     155,591       157,841  
                 
Property and equipment, net     1,212,415       1,273,585  
Intangibles, net     8,032       9,532  
Lease and equipment deposits     1,899       2,167  
Operating Lease right-of-use assets     123,251       —  
Other Assets     742       8,792  
TOTAL ASSETS   $ 1,501,930     $ 1,451,917  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY              
                 
CURRENT LIABILITIES:                
Current portion of long-term debt and financing leases   $ 189,268     $ 165,900  
Current maturities of operating leases     43,932       —  
Accounts payable     53,229       49,930  
Accrued compensation     12,030       11,988  
Other accrued expenses     54,867       28,888  
Total current liabilities     350,490       256,706  
                 
NONCURRENT LIABILITIES:                
Long-term debt and financing leases – excluding current portion     542,456       677,423  
Noncurrent operating lease liabilities     62,531       —  
Deferred credits     5,705       12,134  
Deferred income taxes     64,275       55,303  
Deferred revenue, net of current portion     14,369       —  
Other noncurrent liabilities     1,409       24,483  
Total noncurrent liabilities     691,694       769,343  
Total liabilities     1,042,184       1,026,049  
                 
STOCKHOLDERS’ EQUITY:                
Preferred stock of no par value, 5,000,000 shares authorized; no shares issued and outstanding     —       —  
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 35,194,902 (2020) and 31,413,287 (2019) shares issued and outstanding, and 0 (2020) and 3,600,953 (2019) warrants issued and outstanding     242,772       238,504  
Retained earnings     215,087       187,364  
Total stockholders’ equity     457,859       425,868  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,501,930     $ 1,451,917  
                 

Operating Highlights (unaudited)

    Three months ended  
    September 30  
    2020     2019     Change  
Available Seat Miles (thousands)     1,450,478       2,775,477       (47.7 )%
Block Hours     57,622       115,175       (50.0 )%
Departures     30,524       64,077       (52.4 )%
Average Stage Length (miles)     624       569       9.7 %
Passengers     1,415,817       3,789,696       (62.6 )%
                         

Source: Mesa Air Group, Inc.

Mesa Air Group, Inc.
Investor Relations
Brian Gillman
[email protected]
(602) 685-4010



Posted on

AquaBounty Technologies, Inc. Announces Proposed Public Offering of Common Stock

MAYNARD, Mass., Dec. 09, 2020 (GLOBE NEWSWIRE) — AquaBounty Technologies, Inc. (Nasdaq: AQB) (“AquaBounty” or the “Company”), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, today announced that it has commenced a proposed underwritten public offering of common stock of the Company. In addition, the Company expects to grant the underwriters of the offering a 30-day option to purchase additional shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Oppenheimer & Co. Inc. and Lake Street Capital Markets, LLC are acting as joint book-running managers for this offering. National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), is acting as co-manager for the offering. The Company currently intends to use the net proceeds of this offering for working capital costs and general corporate purposes, including potentially purchasing land and towards costs associated with the construction or site development for a new production farm.

A shelf registration statement on Form S-3 relating to the public offering of the shares of common stock described above was filed with the Securities and Exchange Commission (“SEC”) and was declared effective on April 27, 2018. A preliminary prospectus supplement describing the terms of the offering will be filed with the SEC and will form a part of the effective registration statement. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may be obtained, when available, from Oppenheimer & Co. Inc. Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by calling (212) 667-8563, or by emailing [email protected]; or Lake Street Capital Markets, LLC, Attention: Syndicate Department, 920 Second Avenue South, Suite 700, Minneapolis, Minnesota 55402, or by calling (612) 326-1305, or by emailing [email protected]; or at the SEC’s website at http://www.sec.gov.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About AquaBounty

AquaBounty Technologies, Inc. is a leader in the field of land-based aquaculture and the use of technology for improving its productivity and sustainability. The Company’s objective is to ensure the availability of high-quality seafood to meet global consumer demand while addressing critical production constraints in the most popular farmed species.

The Company’s AquAdvantage fish program is based upon a single, specific molecular modification in fish that results in more rapid growth in early development. With aquaculture facilities located in Prince Edward Island, Canada, and Indiana, USA, AquaBounty is raising its disease-free, antibiotic-free salmon in land-based recirculating aquaculture systems, offering a reduced carbon footprint and no risk of pollution of marine ecosystems as compared to traditional sea-cage farming.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended, that involve significant risks and uncertainties about AquaBounty, including but not limited to statements with respect to the completion, timing, size, and use of proceeds of the proposed underwritten offering of common stock. AquaBounty may use words such as “expect,” “anticipate,” “project,” “intend,” “plan,” “aim,” “believe,” “seek,” “estimate,” “can,” “focus,” “will,” and “may” and similar expressions to identify such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are risks relating to, among other things, whether or not AquaBounty will be able to raise capital, the final terms of the underwritten offering of common stock, market and other conditions, the satisfaction of customary closing conditions related to the underwritten offering of common stock, AquaBounty’s business and financial condition, and the impact of general economic, public health, industry or political conditions in the United States or internationally. For additional disclosure regarding these and other risks faced by AquaBounty, see disclosures contained in AquaBounty’s public filings with the SEC, including the “Risk Factors” in the company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and prospectus supplement for this offering. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and AquaBounty undertakes no obligation to update such statements as a result of new information, except as required by law.

Contact

AquaBounty Technologies, Inc.
Dave Conley, Director of Communications
+1 613 294 3078