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United Natural Foods, Inc. Reports First Quarter Fiscal 2021 Results

United Natural Foods, Inc. Reports First Quarter Fiscal 2021 Results

PROVIDENCE, R.I.–(BUSINESS WIRE)–
United Natural Foods, Inc. (NYSE: UNFI) (the “Company” or “UNFI”) today reported financial results for the first quarter of fiscal 2021 (13 weeks) ended October 31, 2020.

First Quarter Fiscal 2021 Highlights (comparisons to first quarter fiscal 2020)

  • Net Sales increased 6.0% to $6.67 billion
  • Net loss of $1 million, including $43 million in pre-tax charges and costs
  • Adjusted EBITDA increased 30.6% to $159 million
  • Loss per diluted share of $0.02, reflective of charges and costs
  • Adjusted earnings per share (EPS) increased by $0.47 to $0.51
  • Prior guidance affirmed for net sales, adjusted EBITDA, and adjusted EPS

“I am pleased with the start to fiscal 2021 as UNFI leveraged strong sales growth into year-over-year expanded adjusted EBITDA margins for the third consecutive quarter,” said Steven L. Spinner, Chairman and Chief Executive Officer. “We’ve done a great job protecting the safety of our associates and helping our customers succeed in an evolving operating environment while building for the future through new distribution centers, customer solutions, and innovation across our business. Our newest distribution center will be a campus in Allentown, PA to service Key Food beginning next fall and facilitate further growth in the greater New York metropolitan market.”

 

13-Week Period Ended

 

 

($ in millions, except per share data)

October 31,

2020

 

November 2,

2019

 

Percent Change

Net Sales

$

6,673

 

 

$

6,297

 

 

6.0

%

Chains(1)

$

3,020

 

 

$

2,875

 

 

5.0

%

Independent retailers

$

1,672

 

 

$

1,557

 

 

7.4

%

Supernatural

$

1,214

 

 

$

1,111

 

 

9.3

%

Retail

$

595

 

 

$

515

 

 

15.5

%

Other(1)

$

581

 

 

$

590

 

 

(1.5

)%

Eliminations(1)

$

(409

)

 

$

(351

)

 

16.5

%

Net Loss

$

(1

)

 

$

(384

)

 

99.7

%

Adjusted EBITDA(2)

$

159

 

 

$

122

 

 

30.6

%

Loss Per Diluted Share

$

(0.02

)

 

$

(7.21

)

 

99.7

%

Adjusted EPS(2)

$

0.51

 

 

$

0.04

 

 

1,175.0

%

(1)

In first quarter of fiscal 2021, the presentation of net sales by customer channel has been recast to present the Chains and Other channel exclusive of the intercompany eliminations and present total eliminations as a separate sales channel. There was no impact to the Condensed Consolidated Statements of Operations. UNFI believes this new basis better reflects its channel presentation, as it further aligns with segment presentation and how sales channel information would appear following disposition of Retail, assuming all banners retain a supply agreement.

(2)

Please refer to the tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with U.S. GAAP.

First Quarter Fiscal 2021 Summary

Net sales from continuing operations benefited from strong customer demand from existing and new retailers, including the continued benefits of cross selling. The increase in Retail sales included the benefit of an approximately 200% increase in eCommerce sales at Cub Foods.

Gross margin rate in the first quarter of fiscal 2021 was 14.48% of net sales compared to 14.41% of net sales for the first quarter of fiscal 2020. Retail contributed approximately 17 basis points to the growth in the consolidated gross margin rate as a result of lower promotional spending and the retail segment representing a greater percentage of total net sales. Wholesale and the remaining business reduced the growth in the consolidated gross margin rate by approximately 10 basis points driven by lower levels of supplier-related income.

Operating expenses in the first quarter of fiscal 2021 were $901.0 million, or 13.50% of net sales. Operating expenses for the first quarter of fiscal 2020 were $883.7 million, which included charges and expenses of $18.0 million primarily related to customer notes receivable and surplus property depreciation. When excluding these items, operating expenses in the first quarter of fiscal 2020 were $865.7 million, or 13.75% of net sales. The decrease in operating expenses as a percent of net sales was driven by lower administrative costs and leveraging fixed operating expenses over higher net sales partially offset by higher operating costs related to the start up of three distribution centers.

Goodwill and asset impairment charge was $425.4 million in the first quarter of fiscal 2020 primarily reflecting the remaining goodwill attributable to the U.S. Wholesale reporting unit. There were no such charges in the first quarter of fiscal 2021.

Restructuring, acquisition and integration related expenses in the first quarter of fiscal 2021 were $16.4 million, primarily reflecting costs associated with advisory and transformational activities as we position our business for further value-creation post-acquisition, as well as distribution center consolidations, compared to $14.7 million in the first quarter of fiscal 2020.

Operating income in the first quarter of fiscal 2021 was $49.3 million and included $16.4 million of restructuring, acquisition and integration related expenses. When excluding this item, operating income in the first quarter of fiscal 2021 was $65.8 million, or 0.99% of net sales. Operating loss in the first quarter of fiscal 2020 was $416.5 million and included $425.4 million of goodwill and asset impairment charges, $14.7 million of restructuring, acquisition, and integration related expenses, and $18.0 million of additional charges and expenses, primarily related to customer notes receivable and surplus property depreciation. When excluding these items, operating income in the first quarter of fiscal 2020 was $41.6 million, or 0.66% of net sales. The increase in adjusted operating income, as a percent of net sales, was driven by higher net sales, the benefit of a higher gross margin rate, lower administrative costs and leveraging fixed operating expenses over higher net sales partially offset by higher operating costs related to the start up of three distribution centers.

Interest expense, net for the first quarter of fiscal 2021 was $69.1 million which included $24.1 million of non-cash charges primarily related to the acceleration of unamortized debt issuance costs and original issue discounts due to $608 million of term loan prepayments made in the quarter, driven by the $500 million senior unsecured notes issuance. When excluding these items, interest expense, net for the first quarter of fiscal 2021 was $45.1 million. Interest expense, net for the first quarter of fiscal 2020 was $49.7 million. The remaining decrease in interest expense, net was driven by lower amounts of outstanding debt and lower average interest rates.

Effective tax rate for continuing operations for the first quarter of fiscal 2021 was a benefit of 50.5% of pre-tax loss compared to a benefit of 14.7% for the first quarter of fiscal 2020. The change in the effective tax rate was primarily driven by a discrete tax benefit in the first quarter of fiscal 2021 related to employee stock awards compared to a discrete tax expense for this item in the first quarter of fiscal 2020. In addition, the first quarter of fiscal 2020 was impacted by a goodwill impairment charge.

Net loss for the first quarter of fiscal 2021 was $1.0 million, which included $16.4 million of restructuring, acquisition and integration related expenses and $24.1 million of non-cash charges primarily related to the acceleration of unamortized debt issuance costs and original issue discounts from the prepayment of the term loan. The net loss for the first quarter of fiscal 2020 was $383.9 million primarily due to the goodwill impairment charge in the first quarter of fiscal 2020 that did not recur in the first quarter of fiscal 2021.

Net loss per diluted share was $0.02 for the first quarter of fiscal 2021 compared to $7.21 for the first quarter of fiscal 2020. Adjusted earnings per share (adjusted EPS) was $0.51 for the first quarter of fiscal 2021 compared to adjusted EPS of $0.04 in the first quarter of fiscal 2020.

Adjusted EBITDA for the first quarter of fiscal 2021 was $159.0 million compared to $121.7 million for the first quarter of fiscal 2020. The increase primarily reflects the items discussed in operating income.

Total Outstanding Debt, net of cash, ended the quarter at $2.73 billion, reflecting an increase of $128 million in the first quarter of fiscal 2021 (compared to the fourth quarter of fiscal 2020). Cash used in operating activities was $58 million, reflecting the normal course increase in working capital to support the holiday selling period, which, combined with $41 million of capital expenditures, resulted in negative free cash flow of $99 million. The net debt to adjusted EBITDA leverage ratio improved to 3.9x.

Fiscal 2021 Outlook(1)

The Company is reaffirming its full-year outlook for net sales, adjusted EPS, and adjusted EBITDA and updating its outlook for net income, EPS, and capital expenditures as stated below. The updated outlook for capital expenditures is driven by the strategic investment in a new distribution center to service a major new customer and position the Company for growth in the New York metropolitan market. This outlook assumes that food-at-home consumption remains elevated and exceeds food consumed away from home for the rest of fiscal 2021. Compared to fiscal 2020, the sales growth of nearly $900 million (at the midpoint of the range provided below) will be more pronounced in the first half of fiscal 2021 prior to cycling the pandemic-related increase in customer demand that began in the third quarter of fiscal 2020.

Fiscal Year Ending July 31, 2021

 

 

 

% Growth Over

FY20 at Midpoint

Net Sales ($ in billions)

 

$27.0 – $27.8

 

3.3%

Net Income ($ in millions)

 

$130 – $160

 

—

Earnings Per Diluted Share (EPS)

 

$2.15 – $2.65

 

—

Adjusted EPS (2)(3)

 

$3.05 – $3.55

 

21.3%

Adjusted EBITDA(3) ($ in millions)

 

$690 – $730

 

5.5%

Capital Expenditures ($ in millions)

 

$250 – $300

 

—

(1)

The outlook provided above is for fiscal 2021 only and replaces and supersedes any and all guidance provided prior to the date hereof covering fiscal 2021 or subsequent years. This outlook is forward-looking, is based on management’s current estimates and expectations and is subject to a number of risks, including many that are outside of management’s control. See cautionary Safe Harbor Statement below.

(2)

The Company uses an adjusted effective tax rate in calculating Adjusted EPS. The adjusted effective tax rate is calculated based on adjusted net income before tax. It also excludes the potential impact of changes to uncertain tax positions, valuation allowances, stock compensation accounting (ASU 2016-09) and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate provides better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the underlying ongoing operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations.

(3)

 

Please refer to the tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

Conference Call and Webcast

The Company’s first quarter fiscal 2021 conference call and audio webcast will be held today, Wednesday, December 9, 2020at 8:30 a.m. ET. A webcast of the conference call (and supplemental materials) will be available to the public, on a listen only basis, via the internet at the Investors section of the Company’s website www.unfi.com. The call can also be accessed at (877) 682 – 3423 (conference ID 8959225). An online archive of the webcast (and supplemental materials) will be available for 120 days.

About United Natural Foods

UNFI is North America’s premier food wholesaler delivering the widest variety of products to customer locations throughout North America including natural product superstores, independent retailers, conventional supermarket chains, ecommerce retailers, and food service customers. By providing this deeper ‘full-store’ selection and compelling brands for every aisle, UNFI is uniquely positioned to deliver great food, more choices, and fresh thinking to customers everywhere. Today, UNFI is the largest publicly-traded grocery distributor in America. To learn more about how UNFI is Moving Food Forward, visit www.unfi.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K for the year ended August 1, 2020 filed with the Securities and Exchange Commission (the “SEC”) on September 29, 2020 and other filings the Company makes with the SEC, and include, but are not limited to, the impact and duration of the COVID-19 outbreak; the Company’s dependence on principal customers; the Company’s sensitivity to general economic conditions including changes in disposable income levels and consumer spending trends; the Company’s ability to realize anticipated benefits of its acquisitions and dispositions, in particular, its acquisition of SUPERVALU; the Company’s reliance on the continued growth in sales of higher margin natural and organic foods and non-food products in comparison to lower margin conventional grocery products; increased competition in the Company’s industry as a result of increased distribution of natural, organic and specialty products and direct distribution of those products by large retailers and online distributors; the possibility that restructuring, asset impairment, and other charges and costs we may incur in connection with the sale or closure of our retail operations will exceed our current expectations; increased competition as a result of continuing consolidation of retailers in the natural product industry and the growth of supernatural chains; the addition or loss of significant customers or material changes to the Company’s relationships with these customers; union-organizing activities that could cause labor relations difficulties and increased costs; the Company’s ability to operate, and rely on third parties to operate reliable and secure technology systems; the relatively low margins of the Company’s business; moderated supplier promotional activity, including decreased forward buying opportunities; the Company’s ability to timely and successfully deploy its warehouse management system throughout its distribution centers and its transportation management system across the Company and to achieve efficiencies and cost savings from these efforts; the potential for additional asset impairment charges; the Company’s sensitivity to inflationary and deflationary pressures; the potential for disruptions in the Company’s supply chain or its distribution capabilities by circumstances beyond its control, including a health epidemic; the risk of interruption of supplies due to lack of long-term contracts, severe weather, work stoppages or otherwise; volatility in fuel costs; volatility in foreign exchange rates; and our ability to identify and successfully complete asset or business acquisitions. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced estimates, but it is not obligated to do so.

Non-GAAP Financial Measures: To supplement the financial information presented on a U.S. generally accepted accounting principles (“GAAP”) basis, the Company has included in this press release non-GAAP financial measures for adjusted EBITDA, adjusted earnings per diluted common share (“adjusted EPS”), adjusted effective tax rate, free cash flow and Adjusted EBITDA leverage. The non-GAAP adjusted earnings per diluted common share measure is a consolidated measure, which the Company reconciles by adding Net income attributable to UNFI plus goodwill and asset impairment benefits and charges, restructuring, acquisition, and integration related expenses, certain legal charges and gains, surplus property depreciation and interest expense, losses on debt extinguishment, discontinued operations store closures and other charges, net, the impact of diluted shares when GAAP earnings is presented as a loss and non-GAAP earnings represent income, and the tax impact of adjustments and the adjusted effective tax rate, which tax impact is calculated using the adjusted effective tax rate, and certain other non-cash charges or items, as determined by management. The non-GAAP adjusted effective tax rate excludes the potential impact of changes to various uncertain tax positions and valuation allowances, as well as stock compensation accounting (ASU 2016-09). The non-GAAP adjusted EBITDA measure is defined as a consolidated measure inclusive of continuing and discontinued operations results, which we reconcile by adding Net (loss) income from continuing operations, plus Total other expense, net and (Benefit) provision for income taxes, plus Depreciation and amortization calculated in accordance with GAAP, plus non-GAAP adjustments for Share-based compensation, Restructuring, acquisition and integration related expenses, Goodwill and asset impairment charges, Loss (gain) on sale of assets, certain legal charges and gains, certain other non-cash charges or items, as determined by management, plus Adjusted EBITDA of discontinued operations calculated in a manner consistent with the results of continuing operations outlined above. The non-GAAP free cash flow measure is defined as net cash provided by operating activities less capital expenditures. The non-GAAP net debt to adjusted EBITDA leverage is defined as the total face value of the Company’s outstanding short and long term debt and finance lease liabilities less net cash and cash equivalents, the sum of which is divided by adjusted EBITDA.

The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures and the calculation of net debt to adjusted EBITDA leverage are presented in the tables appearing below. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting the non-GAAP financial measures adjusted EBITDA and adjusted EPS aids in making period-to-period comparisons, assessing the performance of our business and understanding the underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business and are meaningful indicators of actual and estimated operating performance. The inclusion of free cash flow assists investors in understanding the cash generating ability of the Company separate from cash generated by the sale of assets. Net debt to adjusted EBITDA leverage ratio is a commonly used metric that assists investors in understanding and evaluating the Company’s capital structure and changes to its capital structure over time. The Company currently expects to continue to exclude the items listed above from non-GAAP financial measures. Management utilizes and plans to utilize these non-GAAP financial measures to compare the Company’s operating performance during the 2021 fiscal year to the comparable periods in the 2020 fiscal year and to internally prepared projections. These non-GAAP financial measures may differ from similarly titled measures of other companies.

UNITED NATURAL FOODS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(In thousands, except for per share data)
 

 

 

13-Week Period Ended

 

 

October 31,

2020

 

November 2,

2019

Net sales

 

$

6,672,607

 

 

$

6,296,612

 

Cost of sales

 

5,706,108

 

 

5,389,401

 

Gross profit

 

966,499

 

 

907,211

 

Operating expenses

 

900,962

 

 

883,688

 

Goodwill and asset impairment charges

 

—

 

 

425,405

 

Restructuring, acquisition and integration related expenses

 

16,428

 

 

14,672

 

Gain on sale of assets

 

(230

)

 

(90

)

Operating income (loss)

 

49,339

 

 

(416,464

)

Other expense (income):

 

 

 

 

Net periodic benefit income, excluding service cost

 

(17,033

)

 

(11,384

)

Interest expense, net

 

69,133

 

 

49,709

 

Other, net

 

(798

)

 

(400

)

Total other expense, net

 

51,302

 

 

37,925

 

Loss from continuing operations before income taxes

 

(1,963

)

 

(454,389

)

Benefit for income taxes

 

(991

)

 

(66,955

)

Net loss from continuing operations

 

(972

)

 

(387,434

)

Income from discontinued operations, net of tax

 

1,296

 

 

4,026

 

Net income (loss) including noncontrolling interests

 

324

 

 

(383,408

)

Less net income attributable to noncontrolling interests

 

(1,367

)

 

(519

)

Net loss attributable to United Natural Foods, Inc.

 

$

(1,043

)

 

$

(383,927

)

 

 

 

 

 

Basic (loss) earnings per share:

 

 

 

 

Continuing operations

 

$

(0.04

)

 

$

(7.29

)

Discontinued operations

 

$

0.02

 

 

$

0.08

 

Basic loss per share

 

$

(0.02

)

 

$

(7.21

)

Diluted (loss) earnings per share:

 

 

 

 

Continuing operations

 

$

(0.04

)

 

$

(7.29

)

Discontinued operations

 

$

0.02

 

 

$

0.08

 

Diluted loss per share

 

$

(0.02

)

 

$

(7.21

)

Weighted average shares outstanding:

 

 

 

 

Basic

 

55,171

 

 

53,213

 

Diluted

 

55,171

 

 

53,213

 

UNITED NATURAL FOODS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(In thousands, except for per share data)
 

 

 

October 31,

2020

 

August 1,

2020

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

49,046

 

 

$

46,993

 

Accounts receivable, net

 

1,165,946

 

 

1,120,199

 

Inventories

 

2,446,604

 

 

2,280,767

 

Prepaid expenses and other current assets

 

273,211

 

 

251,891

 

Current assets of discontinued operations

 

5,687

 

 

5,067

 

Total current assets

 

3,940,494

 

 

3,704,917

 

Property and equipment, net

 

1,662,659

 

 

1,701,216

 

Operating lease assets

 

1,010,744

 

 

982,808

 

Goodwill

 

19,671

 

 

19,607

 

Intangible assets, net

 

946,581

 

 

969,600

 

Deferred income taxes

 

106,931

 

 

107,624

 

Other assets

 

94,110

 

 

97,285

 

Long-term assets of discontinued operations

 

2,407

 

 

3,915

 

Total assets

 

$

7,783,597

 

 

$

7,586,972

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Accounts payable

 

$

1,729,786

 

 

$

1,633,448

 

Accrued expenses and other current liabilities

 

278,790

 

 

281,956

 

Accrued compensation and benefits

 

184,752

 

 

228,832

 

Current portion of operating lease liabilities

 

145,295

 

 

131,022

 

Current portion of long-term debt and finance lease liabilities

 

25,712

 

 

83,378

 

Current liabilities of discontinued operations

 

9,889

 

 

11,438

 

Total current liabilities

 

2,374,224

 

 

2,370,074

 

Long-term debt

 

2,620,587

 

 

2,426,994

 

Long-term operating lease liabilities

 

888,979

 

 

873,990

 

Long-term finance lease liabilities

 

137,694

 

 

143,303

 

Pension and other postretirement benefit obligations

 

274,698

 

 

292,128

 

Other long-term liabilities

 

339,541

 

 

336,487

 

Long-term liabilities of discontinued operations

 

15

 

 

1,738

 

Total liabilities

 

6,635,738

 

 

6,444,714

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.01 par value, authorized 5,000 shares; none issued or outstanding

 

—

 

 

—

 

Common stock, $0.01 par value, authorized 100,000 shares; 56,749 shares issued and 56,135 shares outstanding at

October 31, 2020; 55,306 shares issued and 54,691 shares outstanding at August 1, 2020

 

568

 

 

553

 

Additional paid-in capital

 

572,170

 

 

568,736

 

Treasury stock at cost

 

(24,231

)

 

(24,231

)

Accumulated other comprehensive loss

 

(225,722

)

 

(237,946

)

Retained earnings

 

827,353

 

 

837,633

 

Total United Natural Foods, Inc. stockholders’ equity

 

1,150,138

 

 

1,144,745

 

Noncontrolling interests

 

(2,279

)

 

(2,487

)

Total stockholders’ equity

 

1,147,859

 

 

1,142,258

 

Total liabilities and stockholders’ equity

 

$

7,783,597

 

 

$

7,586,972

 

UNITED NATURAL FOODS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

 

13-Week Period Ended

(In thousands)

 

October 31,

2020

 

November 2,

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income (loss) including noncontrolling interests

 

$

324

 

 

$

(383,408

)

Income from discontinued operations, net of tax

 

1,296

 

 

4,026

 

Net loss from continuing operations

 

(972

)

 

(387,434

)

Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

77,189

 

 

75,141

 

Share-based compensation

 

12,242

 

 

1,247

 

Gain on sale of assets

 

(230

)

 

(90

)

Closed property and other restructuring charges

 

497

 

 

3,108

 

Goodwill and asset impairment charges

 

—

 

 

425,405

 

Net pension and other postretirement benefit income

 

(17,021

)

 

(11,370

)

Deferred income tax benefit

 

2,254

 

 

(61,762

)

LIFO charge

 

6,670

 

 

6,873

 

Provision for losses on receivables, net

 

(278

)

 

13,098

 

Loss on debt extinguishment

 

23,750

 

 

73

 

Non-cash interest expense and other adjustments

 

3,750

 

 

3,833

 

Changes in operating assets and liabilities

 

(163,033

)

 

(202,503

)

Net cash used in operating activities of continuing operations

 

(55,182

)

 

(134,381

)

Net cash used in operating activities of discontinued operations

 

(2,484

)

 

(488

)

Net cash used in operating activities

 

(57,666

)

 

(134,869

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Capital expenditures

 

(41,380

)

 

(45,048

)

Proceeds from dispositions of assets

 

4,446

 

 

1,669

 

Other

 

(58

)

 

(1,366

)

Net cash used in investing activities of continuing operations

 

(36,992

)

 

(44,745

)

Net cash provided by investing activities of discontinued operations

 

1,486

 

 

20,864

 

Net cash used in investing activities

 

(35,506

)

 

(23,881

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Proceeds from borrowings of long-term debt

 

500,000

 

 

2,050

 

Proceeds from borrowings under revolving credit line

 

1,569,088

 

 

1,338,446

 

Repayments of borrowings under revolving credit line

 

(1,339,100

)

 

(1,100,746

)

Repayments of long-term debt and finance leases

 

(614,010

)

 

(83,510

)

Proceeds from the issuance of common stock and exercise of stock options

 

71

 

 

1,735

 

Payment of employee restricted stock tax withholdings

 

(8,879

)

 

(819

)

Payments for debt issuance costs

 

(10,582

)

 

—

 

Distributions to noncontrolling interests

 

(1,159

)

 

(1,060

)

Repayments of other loans

 

(164

)

 

—

 

Net provided by financing activities

 

95,265

 

 

156,096

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

56

 

 

(10

)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

2,149

 

 

(2,664

)

Cash and cash equivalents, at beginning of period

 

47,070

 

 

45,267

 

Cash and cash equivalents at end of period

 

49,219

 

 

42,603

 

Less: cash and cash equivalents of discontinued operations

 

(173

)

 

(726

)

Cash and cash equivalents

 

$

49,046

 

 

$

41,877

 

Supplemental disclosures of cash flow information:

 

 

 

 

Cash paid for interest

 

$

44,120

 

 

$

49,296

 

Cash payments (refunds) for federal and state income taxes, net

 

5,728

 

 

(28,874

)

Leased assets obtained in exchange for new operating lease liabilities

 

70,833

 

 

37,020

 

Leased assets obtained in exchange for new finance lease liabilities

 

346

 

 

—

 

Capital expenditures included in accounts payable

 

$

21,399

 

 

$

33,605

 

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

UNITED NATURAL FOODS, INC.

UNAUDITED

Reconciliation of Net loss from continuing operations and Income from discontinued operations, net of tax to Adjusted

EBITDA (unaudited)
 

 

13-Week Period Ended

(in thousands)

October 31,

2020

 

November 2,

2019

Net loss from continuing operations

$

(972

)

 

$

(387,434

)

Adjustments to continuing operations net loss:

 

 

 

Less net income attributable to noncontrolling interests

(1,367

)

 

(519

)

Total other expense, net

51,302

 

 

37,925

 

Benefit for income taxes

(991

)

 

(66,955

)

Depreciation and amortization

77,189

 

 

75,141

 

Share-based compensation

4,149

 

 

3,925

 

Goodwill and asset impairment charges(1)

—

 

 

425,405

 

Restructuring, acquisition and integration related expenses(2)

16,428

 

 

14,672

 

Gain on sale of assets

(230

)

 

(90

)

Note receivable charges(3)

—

 

 

12,516

 

Legal reserve charge(4)

—

 

 

1,850

 

Other retail expense(5)

1,609

 

 

—

 

Adjusted EBITDA of continuing operations

157,117

 

 

116,436

 

Adjusted EBITDA of discontinued operations(6)

1,840

 

 

5,258

 

Adjusted EBITDA

$

158,957

 

 

$

121,694

 

 

 

 

 

Income from discontinued operations, net of tax

$

1,296

 

 

$

4,026

 

Adjustments to discontinued operations net income:

 

 

 

Total other expense, net

—

 

 

(61

)

Provision for income taxes

526

 

 

1,293

 

Restructuring, store closure and other charges, net

18

 

 

—

 

Adjusted EBITDA of discontinued operations

$

1,840

 

 

$

5,258

 

(1)

Fiscal 2020 reflects a goodwill impairment charge attributable to a reorganization of our reporting units and a sustained decrease in market capitalization and enterprise value of the Company, resulting in a decline in the estimated fair value of the U.S. Wholesale reporting unit. In addition, this charge includes a goodwill finalization charge attributable to the SUPERVALU acquisition and an asset impairment charge.

(2)

Fiscal 2021 primarily reflects costs associated with advisory and transformational activities as we position our business for further value-creation post-acquisition. Fiscal 2020 primarily reflects closed property reserve charges and administrative and operational restructuring costs.

(3)

Reflects reserves and charges for notes receivable issued by the SUPERVALU business prior to its acquisition to finance the purchase of stores by its customers.

(4)

Reflects a charge to settle a legal proceeding.

(5)

Reflects expenses associated with event-specific damages to certain retail stores.

(6)

UNFI believes the inclusion of discontinued operations results within Adjusted EBITDA provides investors a meaningful measure of total performance.

Reconciliation of Net loss per Diluted Common Share to Adjusted Net income per Diluted Common Share (unaudited)
 

 

 

13-Week Period Ended

 

 

October 31,

2020

 

November 2,

2019

Net loss attributable to UNFI per diluted common share

 

$

(0.02

)

 

$

(7.21

)

Goodwill and asset impairment charges(1)

 

—

 

 

7.99

 

Restructuring, acquisition and integration related expenses(2)

 

0.30

 

 

0.28

 

Surplus property depreciation and interest expense(3)

 

0.01

 

 

0.08

 

Note receivable charges(4)

 

—

 

 

0.24

 

Loss on debt extinguishment(5)

 

0.44

 

 

—

 

Legal reserve charge(6)

 

—

 

 

0.03

 

Other retail expense(7)

 

0.03

 

 

—

 

Tax impact of adjustments and adjusted effective tax rate(8)

 

(0.21

)

 

(1.29

)

Impact of dilutive shares(9)

 

(0.04

)

 

—

 

Adjusted net income per diluted common share (Retail in Discontinued Operations)

 

0.51

 

 

0.12

 

Depreciation and amortization adjustment(10)

 

—

 

 

(0.08

)

Adjusted net income per diluted common share (Retail in Continuing Operations)

 

$

0.51

 

 

$

0.04

 

(1)

Fiscal 2020 reflects a goodwill impairment charge attributable to a reorganization of our reporting units and a sustained decrease in market capitalization and enterprise value of the Company, resulting in a decline in the estimated fair value of the U.S. Wholesale reporting unit. In addition, this charge includes a goodwill finalization charge attributable to the SUPERVALU acquisition and an asset impairment charge.

(2)

Fiscal 2021 primarily reflects costs associated with advisory and transformational activities as we position our business for further value-creation post-acquisition. Fiscal 2020 primarily reflects closed property reserve charges and administrative and operational restructuring costs.

(3)

Reflects surplus, non-operating property depreciation and interest expense. Fiscal 2020 includes accelerated depreciation related to a location on which we recognized a gain that is included in Restructuring, acquisition and integration related expenses.

(4)

Reflects reserves and charges for notes receivable issued by the SUPERVALU business prior to its acquisition to finance the purchase of stores by its customers.

(5)

Reflects non-cash charges related to the acceleration of unamortized debt issuance costs and original issue discounts due to term loan prepayments.

(6)

Reflects a charge to settle a legal proceeding.

(7)

Reflects expenses associated with event-specific damages to certain retail stores.

(8)

Represents the tax effect of the pre-tax adjustments using an adjusted effective tax rate. The adjusted effective tax rate is calculated based on adjusted net income before tax, and its impact reflects the exclusion of changes to uncertain tax positions, valuation allowances, tax impacts related to the exercise of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate will provide better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the true operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations.

(9)

The computation of diluted earnings per share is calculated using diluted weighted average shares outstanding, which includes the net effect of dilutive stock awards.

(10)

In the fourth quarter of fiscal 2020 we recorded a pre-tax charge of $50.0 million related to the change in presentation of Retail to continuing operations. This charge was calculated under GAAP as the depreciation and amortization expense that would have been recognized had Retail been included in continuing operations for the full time period since the SUPERVALU acquisition date. This adjustment attributes the pro rata amount of the non-cash charge recognized in the fourth quarter of fiscal 2020 to the applicable time periods in which it would have been recognized had Retail been included within continuing operations since the acquisition date. UNFI believes the inclusion of this adjustment is a useful indicator of performance to both management and investors, as it provides a relative comparison to how UNFI’s results of operations will be reported on an ongoing basis.

Calculation of Net Debt to Adjusted EBITDA Leverage Ratio (unaudited)

(in thousands, except ratios)

 

October 31, 2020

Current portion of long-term debt and finance lease liabilities

$

25,712

 

Long-term debt

2,620,587

 

Long-term finance lease liabilities

137,694

 

Less: Cash and cash equivalents

(49,046

)

Net carrying value of debt and finance lease liabilities

2,734,947

 

Debt issuance costs, net

42,122

 

Original issue discount on debt

22,316

 

Net debt and finance lease liabilities

2,799,385

 

Adjusted EBITDA(1)

$

710,185

 

Adjusted EBITDA leverage ratio

3.9 x

(1)

Adjusted EBITDA reflects the summation of the trailing four quarters ended October 31, 2020.

Reconciliation of Trailing Four Quarters Net income from continuing operations and Income from discontinued operations, net of tax to Adjusted EBITDA (unaudited)

 

Last Four Quarters Ended

 

(in thousands)

October 31, 2020

(52 weeks)

Net income from continuing operations

$

132,453

 

Adjustments to continuing operations net income:

 

Less net income attributable to noncontrolling interests

(5,777

)

Total other expense, net

162,216

 

Benefit for income taxes

(24,481

)

Depreciation and amortization

283,583

 

Share-based compensation

43,913

 

Restructuring, acquisition and integration related expenses

88,139

 

Loss on sale of assets

16,992

 

Legal (settlement income) reserve charge

(654

)

Other retail expense

3,359

 

Adjusted EBITDA of continuing operations

699,743

 

Adjusted EBITDA of discontinued operations

10,442

 

Adjusted EBITDA

$

710,185

 

 

 

Loss from discontinued operations, net of tax

$

(17,932

)

Adjustments to discontinued operations net income (loss):

 

Total other expense, net

57

 

Provision for income taxes

(5,232

)

Restructuring, store closure and other charges, net

33,549

 

Adjusted EBITDA of discontinued operations

$

10,442

 

Reconciliation of Net cash used in operating activities to Free cash flow (unaudited)

 

 

 

 

 

13-Week Period Ended

(in thousands)

October 31, 2020

(13 weeks)

 

November 2, 2019

(13 weeks)

Net cash used in operating activities

$

(57,666)

 

 

$

(134,869)

 

Capital expenditures

(41,380)

 

 

(45,048)

 

Free cash flow

$

(99,046)

 

 

$

(179,917)

 

FISCAL 2021 GUIDANCE

Reconciliation of 2021 Guidance for Estimated Net Income per diluted Common Share to Estimated Non-GAAP

Adjusted Net Income per diluted Common Share (unaudited)
 

 

 

Fiscal Year Ending July 31, 2021

 

 

Low Range

 

Estimate

 

High Range

Net income attributable to United Natural Foods, Inc. per diluted common share

 

$

2.15

 

 

 

 

$

2.65

 

Restructuring, acquisition and integration related expenses

 

 

 

0.46

 

 

 

Loss on debt extinguishment

 

 

 

0.55

 

 

 

Surplus property depreciation and interest expense

 

 

 

0.10

 

 

 

Discontinued operations store closures and other charges, net

 

 

 

0.12

 

 

 

Tax impact of adjustments and adjusted effective tax rate(1)

 

 

 

(0.33

)

 

 

Adjusted net income per diluted common share

 

$

3.05

 

 

 

 

$

3.55

 

(1)

The estimated adjusted effective tax rate excludes the potential impact of changes in uncertain tax positions, tax impacts related to ASU 2006-09 regarding stock compensation and valuation allowances. Refer to the reconciliation for adjusted effective tax rate.

Reconciliation of 2021 Guidance for Net Income Attributable to United Natural Foods, Inc. to Adjusted EBITDA (unaudited)
 

 

 

Fiscal Year Ending July 31, 2021

(in thousands)

 

Low Range

 

Estimate

 

High Range

Net income attributable to United Natural Foods, Inc.

 

$

130,000

 

 

 

 

$

160,000

 

Provision for income taxes

 

48,000

 

 

 

 

58,000

 

Restructuring, acquisition and integration related costs

 

 

 

27,000

 

 

 

Closed property depreciation and interest expense

 

 

 

6,000

 

 

 

Discontinued operations store closures and other charges, net

 

 

 

7,000

 

 

 

Net interest expense

 

 

 

209,000

 

 

 

Other (income) expense, net

 

 

 

(1,000

)

 

 

Depreciation and amortization

 

 

 

278,000

 

 

 

Share-based compensation

 

 

 

54,000

 

 

 

Net periodic benefit income, excluding service costs

 

 

 

(68,000

)

 

 

Adjusted EBITDA

 

$

690,000

 

 

 

 

$

730,000

 

Reconciliation of Estimated 2021 and Actual 2020 U.S. GAAP Effective Tax Rate to Adjusted Effective Tax Rate (unaudited)
 

 

 

Estimated

Fiscal 2021

 

Actual Fiscal 2020

U.S. GAAP Effective Tax Rate

 

27

%

 

26

%

Discrete quarterly recognition of GAAP items(1)

 

—

%

 

(1

)%

Tax impact of other charges and adjustments(2)

 

1

%

 

1

%

Changes in valuation allowances(3)

 

(1

)%

 

1

%

Impact of goodwill impairment

 

—

%

 

11

%

Impact of CARES Act(4)

 

—

%

 

(11

)%

Adjusted Effective Tax Rate(5)

 

27

%

 

27

%

Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results.

(1)

Reflects changes in tax laws excluding the CARES Act, uncertain tax positions, the tax impacts related to the exercise of share-based compensation awards and any prior-year Internal Revenue Service or other tax jurisdiction audit adjustments.

(2)

Reflects the tax impact of pre-tax adjustments other than the goodwill impairment that are excluded from pre-tax income when calculating adjusted EPS.

(3)

Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations.

(4)

Reflects the impact of tax loss carrybacks to 35% tax years allowed under the CARES Act as compared to the 21% tax rate applicable to tax loss carryforwards.

(5)

The Company establishes an estimated adjusted effective tax rate at the beginning of the fiscal year based on the best available information. The Company re-evaluates its estimated adjusted effective tax rate as appropriate throughout the year and adjusts for any material changes. The actual adjusted effective tax rate at the end of the fiscal year is based on actual results and accordingly may differ from the estimated adjusted effective tax rate used during the year.

 

INVESTOR CONTACT:

Steve Bloomquist

Vice President, Investor Relations

952-828-4144

KEYWORDS: Rhode Island United States North America

INDUSTRY KEYWORDS: Other Consumer Discount/Variety Other Retail Supermarket Specialty Convenience Store Food/Beverage Consumer Supply Chain Management Retail

MEDIA:

Posted on

Element Solutions Inc Increases 2020 Financial Guidance

Element Solutions Inc Increases 2020 Financial Guidance

  • Persisting strength in high-end electronics and industrial end-markets
  • Full year 2020 adjusted EBITDA expected to be approximately $415 million; increasing fourth quarter 2020 adjusted EBITDA expectation to approximately $118 million from between $90 million and $95 million
  • Expect free cash flow to grow year-over-year to greater than $240 million
  • Expect 2020 year-end net debt to adjusted EBITDA ratio of approximately 3.0x
  • Expect mid-to-high single digit growth in adjusted EPS for the full year 2020

MIAMI–(BUSINESS WIRE)–
Element Solutions Inc (NYSE:ESI) (“ESI” or the “Company”), a global and diversified specialty chemicals company, today provided an update to its 2020 financial guidance.

Executive Commentary

Chief Executive Officer Benjamin Gliklich said, “Our electronics and automotive-oriented businesses continue to perform exceptionally well. This quarter, the resilient macro environment, demand from new product launches in the mobile markets, and overall strong execution have translated to healthy results through November. We are raising our Q4 2020 adjusted EBITDA guidance to approximately $118 million from between $90 million and $95 million. This translates to expected adjusted EBITDA for the full year 2020 of approximately $415 million and year-over-year growth in full year adjusted earnings per share and free cash flow. The resilience in our businesses, our ability to protect margins, and capital allocation to improve earnings conversion are working to compound per share value even in this challenging year.”

Mr. Gliklich continued, “Two key factors are driving this year’s results. First is our highly-variable cost model, which has long been one of the hallmarks of our business. Our team has proven its ability to operate the model deftly. We have been able to manage cost effectively to preserve margin and sustain robust cash flows. Second and more notably, strong, secular growth dynamics are driving many of our end-markets, offsetting, if not benefitting from, COVID-19’s impact this year. Our business provides enabling technology and service to next generation communications infrastructure, mobile devices and electric vehicles. This should continue to be the case for years to come.”

About Element Solutions

Element Solutions Inc is a leading global specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, the innovative solutions of the Company’s businesses enable customers’ manufacturing processes in several key industries, including electronic circuitry, semiconductor, communications infrastructure, automotive systems, industrial surface finishing, consumer packaging and offshore energy.

More information about the Company is available at www.elementsolutionsinc.com.

Non-GAAP Financial Measures

This press release includes the following financial measures which are not calculated in accordance with GAAP: adjusted EBITDA, adjusted earnings per share (EPS), free cash flow and net debt to adjusted EBITDA ratio. These measures are defined as follows:

Adjusted EBITDA: Adjusted EBITDA is defined as EBITDA (earnings before interest, provision for income taxes, depreciation and amortization), excluding the impact of additional items included in GAAP earnings which the Company believes are not representative or indicative of its ongoing business or are considered to be associated with its capital structure. Management believes adjusted EBITDA provides investors with a more complete understanding of the long-term profitability trends of ESI’s business and facilitate comparisons of its profitability to prior and future periods

Adjusted Earnings Per Share (EPS): Adjusted EPS is defined as net income (loss) from continuing operations attributable to common stockholders adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eliminates the amortization associated with intangible assets, incremental depreciation associated with the step-up of fixed assets and incremental cost of sales associated with the step-up of inventories recognized in purchase accounting for acquisitions. Further, the Company adjusts its effective tax rate. The full-year 2019 adjusted EPS is based on the Company’s new capital structure which assumed that the sale of Agricultural Solutions, the Company’s former segment sold on January 31, 2019 (the “Arysta Sale”), had closed and its new credit agreement had been in place on January 1, 2019, which the Company believes is more reflective of the current capital structure of the Company.

Free cash flow: Free cash flow is defined as net cash flows from operating activities less net capital expenditures. Net capital expenditures include capital expenditures less proceeds from the disposal of property, plant and equipment. Management believes that free cash flow, which measures the Company’s ability to generate cash from its business operations, is an important financial measure for use in evaluating the Company’s financial performance. However, free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of the Company’s liquidity. The full year 2019 free cash flow adjusts for one-time cash operating expenses related to the Arysta Sale and for the payment of a portion of the contingent consideration related to the acquisition of MacDermid, Incorporated, and assumes that the Company’s new capital structure was in place on January 1, 2019.

Net Debt to Adjusted EBITDA Ratio: Net debt to adjusted EBITDA ratio is defined as total debt (current installments of long-term debt, revolving credit facilities and long-term debt), excluding unamortized discounts and debt issuance costs, less cash, divided by adjusted EBITDA.

The Company does not provide a quantitative reconciliation of these forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for restructurings, refinancings, divestitures, impairments, integration and acquisition-related expenses, share-based compensation amounts, non-recurring, unusual or unanticipated charges, expenses or gains, adjustments to inventory and other charges reflected in the reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

Forward-Looking Statements

This release is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 as it contains “forward-looking statements” within the meaning of the federal securities laws. These statements will often contain words such as “expect,” “anticipate,” “project,” “will,” “should,” “believe,” “intend,” “plan,” “assume,” “estimate,” “predict,” “seek,” “continue,” “outlook,” “may,” “might,” “aim,” “can have,” “likely,” “potential” “target,” “hope,” “goal,” “priority,” “guidance” or “confident” and variations of such words and similar expressions and include, but are not limited to, statements, beliefs, projections and expectations regarding full year and fourth quarter 2020 adjusted EBITDA guidance; free cash flow 2020 outlook; expected year-over-year free cash flow growth in 2020; expected adjusted EPS growth for the full year 2020; resilience in the Company’s businesses; the Company’s ability to protect margins; capital allocation; and continuing trends in the future. These projections and statements are based on management’s estimates, assumptions or expectations with respect to financial performance and future events, and are believed to be reasonable, though are inherently uncertain and difficult to predict. Such projections and statements are based on the assessment of information available to management as of the current date, and management does not undertake any obligations to provide any further updates. Actual results could differ materially from those expressed or implied in the forward-looking statements if one or more of the underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the duration and spread of the coronavirus (COVID-19) pandemic; new information concerning its transmission and severity; actions taken or that might be taken by governments, businesses or individuals to contain or reduce its repercussions and mitigate its economic implications; evolving macroeconomic factors, including general economic uncertainty, unemployment rates, and recessionary pressures; decreased consumer spending levels; reduction or changes in customer demand for the Company’s products and services; the Company’s ability to manufacture, sell and provide its products and services, including as a result of travel restrictions, closed borders, operating restrictions imposed on its facilities or reduced ability of its employees to continue to work efficiently; increased operating costs (whether as a results of changes to the Company’s supply chain or increases in employee costs or otherwise); collectability of customer accounts; additional and prolonged devaluation of other countries’ currencies relative to the dollar; the general impact of the pandemic on the Company’s customers, employees, suppliers, vendors and other stakeholders; the Company’s ability to realize the expected benefits of its cost containment and cost savings measures; outstanding debt and debt leverage ratio; shares repurchases; expected returns to stockholders; and the impact of acquisitions, divestitures, restructurings, refinancings, impairments and other unusual items, including the Company’s ability to raise and/or retire new debt and/or equity and to integrate and obtain the anticipated benefits, results and synergies from these items or other related strategic initiatives. Additional information concerning these and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by Element Solutions with the Securities and Exchange Commission. Element Solutions undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:

Varun Gokarn

Senior Director, Strategy and Finance

Element Solutions Inc

1-561-406-8465

[email protected]

Media Contact:

Liz Cohen

Managing Director

Kekst CNC

1-212-521-4845

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Chemicals/Plastics Manufacturing

MEDIA:

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Carvana Brings The New Way to Buy a Car® to Arkansas

Carvana Brings The New Way to Buy a Car® to Arkansas

Leading Online Auto Retailer Carvana Now Offers Little Rock As-Soon-As-Next-Day Vehicle Delivery

LITTLE ROCK, Ark.–(BUSINESS WIRE)–Carvana (NYSE: CVNA), a leading e-commerce platform for buying and selling used cars, now offers as-soon-as next-day vehicle delivery in Little Rock. In as little as 5 minutes, from the comfort of home or on the go via mobile device, customers can shop more than 20,000 vehicles on Carvana.com, finance, purchase, sell or trade their current vehicle to Carvana and schedule as-soon-as-next-day delivery.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201209005124/en/

Carvana makes Arkansas debut, offering as-soon-as-next day vehicle delivery to Little Rock area residents. (Photo: Business Wire)

Carvana makes Arkansas debut, offering as-soon-as-next day vehicle delivery to Little Rock area residents. (Photo: Business Wire)

Carvana customers save valuable time and money with The New Way to Buy a Car® by skipping the dealership and shopping online. And Carvana never charges hidden, bogus fees like “documentation fees,” which can often be added to the price of a vehicle at the last minute.

All 20,000+ vehicles in Carvana’s national inventory are photographed in 360 degrees, so customers get a high-definition virtual tour, along with the peace of mind of a 7-day return policy. This upgrade to the traditional test drive gives customers the time to ensure their vehicle fits their life, whether installing car seats or seeing how much cargo space it offers for groceries. Additionally, Carvana vehicles are Carvana Certified, having passed a rigorous, 150-point inspection, have never been in a reported accident and have no frame damage. Features, imperfections and updated information about open safety recalls are listed on every car’s vehicle description page.

Customers looking to trade in their vehicle, or sell a vehicle, can also skip the dealership by simply entering their VIN or license plate number on Carvana.com, answer a few questions and Carvana can pick up the vehicle and bring them a check, as soon as the next day.

“Our goal is to bring The New Way to Buy a Car® to as many customers as possible, and making our Arkansas debut in Little Rock brings us even closer to that goal, ” said Ernie Garcia, founder and CEO of Carvana. “We look forward to now offering as-soon-as-next-day vehicle delivery to Little Rock area residents and we’re confident they will appreciate the ease and transparency Carvana brings to car buying.”

Carvana now offers as-soon-as-next-day vehicle delivery in 264 markets across the U.S.

About Carvana (NYSE: CVNA)

Founded in 2012 and based in Phoenix, Carvana’s (NYSE: CVNA) mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 20,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana’s patented, automated Car Vending Machines.

For further information on Carvana, please visit www.carvana.com, or connect with us on Facebook, Instagram or Twitter.

Carvana

Amy O’Hara

[email protected]

KEYWORDS: United States North America Arkansas Arizona

INDUSTRY KEYWORDS: Online Retail Retail General Automotive Automotive Specialty

MEDIA:

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Carvana makes Arkansas debut, offering as-soon-as-next day vehicle delivery to Little Rock area residents. (Photo: Business Wire)
Posted on

Fulcrum Therapeutics to Host Virtual Key Opinion Leader Event Featuring FTX-6058 for Sickle Cell Disease

Event will review the company’s novel approach to inducing fetal hemoglobin

Live webcast on December 15, 2020 at 8:30am ET

CAMBRIDGE, Mass., Dec. 09, 2020 (GLOBE NEWSWIRE) — Fulcrum Therapeutics, Inc. (Nasdaq: FULC), a clinical-stage biopharmaceutical company focused on improving the lives of patients with genetically defined rare diseases, today announced that it will host a Key Opinion Leader (KOL) meeting on Tuesday, December 15, 2020 from 8:30am – 10:00am ET to discuss the company’s program with FTX-6058 for select hemoglobinopathies, including sickle cell disease and beta-thalassemia.

Dr. Maureen Achebe and Dr. Gerd Blobel will join senior executives from Fulcrum in presenting and discussing sickle cell disease, the treatment landscape and the FTX-6058 program followed by a Question and Answer session. Maureen Achebe, MD is currently Clinical Director, Non-Malignant Hematology Clinic, Assistant Director, Brigham and Women’s Hospital Outpatient Infusion Center, Director, Brigham and Women’s Hospital Sickle Cell Program and Assistant Professor of Medicine, Harvard Medical School. Gerd Blobel, MD, PhD is currently Frank E. Weise III professor of pediatrics, University of Pennsylvania and Co-director Epigenetics Institute. He also holds the Frank E. Weise III Endowed Chair of Pediatrics at The Children’s Hospital of Philadelphia and the Perelman School of Medicine.

The live webcast will be accessible through the Investor Relations section of the company’s website https://ir.fulcrumtx.com/events-and-presentations. Following the live webcast, an archived replay will also be available on the website for up to 90 days.

About
FTX-6058

FTX-6058 is a highly potent small molecule inhibitor of EED capable of inducing robust HbF protein expression in cell and murine models. Fulcrum believes the pharmacokinetics and human dose simulations support that FTX-6058 may be given as a once daily oral compound. The validation of EED as a target for sickle cell disease and the discovery of FTX-6058 as a novel HbF-inducing small molecule were conducted using Fulcrum’s proprietary Product Engine. The company’s composition of matter patent covering FTX-6058 and related structures has been granted. Preclinical data with FTX-6058 showed an increase in HbF levels up to approximately 30% of total hemoglobin. Fulcrum has initiated a Phase 1 trial with FTX-6058 in healthy volunteers.

About Fulcrum Therapeutics 
Fulcrum Therapeutics is a clinical-stage biopharmaceutical company focused on improving the lives of patients with genetically defined rare diseases in areas of high unmet medical need. Fulcrum’s proprietary product engine identifies drug targets which can modulate gene expression to treat the known root cause of gene mis-expression. The company has advanced losmapimod to Phase 2 clinical development for the treatment of facioscapulohumeral muscular dystrophy (FSHD) and Phase 3 for the treatment of COVID-19. Fulcrum has also advanced FTX-6058, a small molecule designed to increase expression of fetal hemoglobin for the treatment of sickle cell disease and beta thalassemia, into Phase 1 clinical development.

Please visit www.fulcrumtx.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties, including statements regarding the development status of the Company’s product candidates and the potential advantages and therapeutic potential of the Company’s product candidates. All statements, other than statements of historical facts, contained in this press release, including statements regarding the Company’s strategy, future operations, future financial position, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in, or implied by, such forward-looking statements. These risks and uncertainties include, but are not limited to, risks associated with Fulcrum’s ability to obtain and maintain necessary approvals from the FDA and other regulatory authorities; continue to advance its product candidates in clinical trials; initiate and enroll clinical trials on the timeline expected or at all; correctly estimate the potential patient population and/or market for the Company’s product candidates; replicate in later clinical trials positive results found in preclinical studies and/or earlier-stage clinical trials of losmapimod and its other product candidates; advance the development of its product candidates under the timelines it anticipates in current and future clinical trials; obtain, maintain or protect intellectual property rights related to its product candidates; manage expenses; and raise the substantial additional capital needed to achieve its business objectives. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, see the “Risk Factors” section, as well as discussions of potential risks, uncertainties and other important factors, in the Company’s most recent filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date hereof and should not be relied upon as representing the Company’s views as of any date subsequent to the date hereof. The Company anticipates that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so.

C
ontact:

Investors:
Christi Waarich
Director, Investor Relations and
Corporate Communications
617-651-8664
[email protected]

Stephanie Ascher
Stern Investor Relations, Inc.
[email protected]
212-362-1200

Media:
Kaitlin Gallagher
Berry & Company Public Relations
kgallagher@berrypr.com
212-253-8881

 



Posted on

CMR Surgical- Strong Commercial Progress in India and the Middle East

Strong Commercial Progress in India and the Middle East

·Versius has been adopted by a number of new hospitals, making the system available to patients in different regions of India

·Partnerships agreed and systems delivered in Egypt and the United Arab Emirates as CMR expands into the Middle East  

CAMBRIDGE, UK – 9 DECEMBER 2020. 00:01 (GMT). CMR Surgical (CMR), the company behind the next-generation surgical robotic system Versius®, today provides an update on progress in India and the Middle East as it continues to increase its commercial presence in these regions as part of its global expansion strategy.

Versius has been adopted by a number of new hospitals in India, as CMR sees increased momentum for Versius across the region.  The latest hospitals to adopt the system include Swagat Hospital, in Guwahati, Lima Hospital in Chennai and SP Well Forte in Trivandrum.

In the Middle East region, CMR recently secured a partnership with ATG Group in Egypt, in addition to an existing partnership with Gulf Drug in the United Arab Emirates to bring Versius to the region. These partnerships will see Versius rolled out to hospitals in the Middle East this year.  

Per Vegard Nerseth, Chief Executive Officer of CMR Surgical commented: “Asia and the Middle East are markets with a significant untapped potential for surgical robotics and we are delighted to now have Versius adopted by a good number of hospitals across the region. We continue to see very strong global demand for the system across the world and look forward to our further expansion plans in 2021 as we bring minimal access surgery to people around the world.”

Professor Dr Subhash Khanna, Chief Medical Director and Head of Department of Minimal Access, G.I and Robotic Surgery from Swagat Super Specialty Surgical Institute commented: “I have always been a strong proponent of using minimal access surgery for advanced surgical work and I am proud that our centre has become one of the leading surgical robotic centres in the country by adopting Versius as a new technology. With the Versius robot coming as a member of the family in my operating theatre, I have been able to do further advanced work with greater accuracy and efficiency. Versius allows us to see in close detail through a 3D image, as well as giving us maximum surgical precision. The system brings the most value when the procedure would otherwise be open. The robot also helps in reducing my fatigue as I can work the controls while sitting at a console instead of standing over the patient for hours. The introduction of Versius has transformed my attitudes towards complex procedures which have started looking much simpler now. This technology if safely and effectively applied, can make medical care more successful.”

CMR has introduced Versius across markets in Europe, Asia and now the Middle East, with over 1,000 surgical procedures successfully completed using Versius to date.


 — ENDS —


Media Contacts:

If you wish to see more, please contact CMR Surgical at:

Sarah Ghabina / Ashley Davis-Marin

Global Communications Manager / Senior Communications Executive, CMR Surgical

T +44(0) 1223 755801
E[email protected]

Mary-Jane Elliott / Angela Gray / Lindsey Neville

Consilium Strategic Communications

T +44 (0)20 3709 5700
E[email protected]

Tim Cockroft, akt health communications

T +44(0) 7957 325 583
E[email protected]


Notes to Editors:


The Versius

®

Surgical Robotic System

Versius® resets expectations of robotic surgery. Versius fits into virtually any operating room set-up and integrates seamlessly into existing workflows, increasing the likelihood of robotic minimal access surgery (MAS). The portable and modular design of Versius allows the surgeon to only use the number of arms needed for a given procedure.

Biomimicking the human arm, Versius gives surgeons the choice of optimised port placement alongside the dexterity and accuracy of small fully-wristed instruments. With 3D HD vision, easy-to adopt instrument control and a choice of ergonomic working positions, the open surgeon console has the potential to reduce stress and fatigue and allows for clear communication with the surgical team. By thinking laparoscopically and operating robotically with Versius, patients, surgeons and healthcare professionals can all benefit from the value that robotic MAS brings.


About CMR Surgical Limited

CMR Surgical (CMR) is a global medical devices company dedicated to transforming surgery with Versius®, a next-generation surgical robot.

Headquartered in Cambridge, United Kingdom, CMR is committed to working with surgeons, surgical teams and hospital partners, to provide an optimal tool to make robotic minimal access surgery universally accessible and affordable. With Versius, we are on a mission to redefine the surgical robotics market with practical, innovative technology and data that can improve surgical care.

Founded in 2014, CMR Surgical is a private limited company backed by an international shareholder base.



Posted on

Medicenna Announces Oral Presentation at the 2nd Annual Glioblastoma Drug Development Summit

– Presentation taking place
today
, December
9
,
2020 at
10:50
AM
ET

TORONTO and HOUSTON, Dec. 09, 2020 (GLOBE NEWSWIRE) — Medicenna Therapeutics Corp. (“Medicenna” or “the Company”) (NASDAQ: MDNA TSX: MDNA), a clinical stage immuno-oncology company, today announced that Dr. Fahar Merchant, President and CEO of Medicenna and Dr. Ruthie Davi of Acorn AI will be presenting an oral presentation as part of the 2nd Annual Glioblastoma Drug Development Summit, which is being held virtually today through December 10, 2020.

The presentation will include updated data from the Phase 2b trial (MDNA55-05) evaluating MDNA55 in recurrent glioblastoma (rGBM) patients, as well as an overview of a planned MDNA55 Phase 3 registration trial. Following the End of Phase 2 Meeting, the United States Food and Drug Administration (FDA) has agreed that this registration trial can utilize an innovative open-label hybrid design that allows use of matched external control for two-thirds of the trial’s control arm. Such a design should provide the opportunity to accelerate trial timelines and reduce costs when compared with a traditional randomized control trial.

Details on the oral presentation are shown below:

Title: MDNA55, an IL4-Guided Toxin in Recurrent GBM: Phase 2b Results & Use of an External Control Arm in a Registration Trial
Session Name: Immuno-oncology & Therapy
PresentationDate & Time: Today, December 9, 2020 at 10:50 AM ET

Slides from the presentation will be posted to the “Events and Presentations” page of Medicenna’s website following the conference.


Upcoming Key Opinion Leader


(KOL)


Call on MDNA55 for the Treatment of


rGBM


MDNA55-05 trial data and the proposed Phase 3 registration trial design will also be the subject of an upcoming KOL call being hosted by Medicenna. Details on the KOL call are shown below:

Featured KOLs: Dr. David Reardon, MD, Harvard Medical School; Dr. John Sampson, MD, PhD, Duke School of Medicine; Dr. Ruthie Davi, PhD, Acorn AI; and Dr. Amy McKee, MD, Parexel
Date & Time: Friday, December 11, 2020 at 11:00 AM ET
Registration: To register, please click here

About Medicenna

Medicenna is a clinical stage immunotherapy company focused on the development of novel, highly selective versions of IL-2, IL-4 and IL-13 Superkines and first in class Empowered Superkines for the treatment of a broad range of cancers. Medicenna’s long-acting IL2 Superkine asset, MDNA11, is a next-generation IL-2 with superior CD122 binding without CD25 affinity and therefore preferentially stimulates cancer killing effector T cells and NK cells when compared to competing IL-2 programs. Medicenna’s lead IL4 Empowered Superkine, MDNA55, has completed a Phase 2b clinical trial for rGBM, the most common and uniformly fatal form of brain cancer. MDNA55 has been studied in five clinical trials involving 132 subjects, including 112 adults with rGBM. MDNA55 has obtained Fast-Track and Orphan Drug status from the FDA and FDA/EMA, respectively. For more information, please visit www.medicenna.com.

Forward-Looking Statement

This news release contains forward-looking statements under applicable securities laws and relate to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects”, “believes” and similar expressions. All statements other than statements of historical fact, included in this release, including the future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include the risks detailed in the annual information form of the Company dated May 14, 2020 and in other filings made by the Company with the applicable securities regulators from time to time in Canada and the United States.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect and that study results could change over time as the study is continuing to follow up all subjects and new data are continually being received which could materially change study results. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by Canadian and United States securities law.



Further Information

For further information about the Company please contact:

Elizabeth Williams, Chief Financial Officer, 416-648-5555, [email protected]

Investor Contact

For more investor information, please contact:

Dan Ferry, Managing Director, LifeSci Advisors, 617-430-7576, [email protected]

Posted on

Canadian GoldCamps Issues Corporate Update

TORONTO, Dec. 09, 2020 (GLOBE NEWSWIRE) — Canadian GoldCamps Corp. (formerly, Supreme Metals Corp.) (“Canadian GoldCamps”, or the “Company”) (CSE: CAMP) (FSE: A68) is pleased to announce that it has entered into an agreement to appoint Micon International Limited (“Micon”) to prepare and update the mineral resource estimate and technical report (“Technical Report”) for the Company’s Elm Tree Project located in New Brunswick. Micon will act as an independent Qualified Person and will prepare the Technical Report in accordance with the requirements of the Canadian National Instrument 43-101 (NI 43-101).


Elm Tree Project highlights include:

  • Total property package covering approximately 7,000 acres.
  • 2010 Micon Preliminary Economic Assessment1 indicating robust IRR at $1,100/oz gold. The Company intends to update this PEA for the historic “Elmtree project”.
  • The current property sits on the majority (265,000 oz) of the NI 43-1011 compliant 294,000 ounces of gold from the historic Elmtree project, which is near surface and includes a higher grade 5 g/t envelope.
  • Deposit remains open in all directions – a complete digital database of property drill, geochemical, and geophysical data will allow the Company to quickly identify new targets, expand the known zones of mineralization and restart exploration.
  • 176 drill holes in the property district, 69 completed during 1985-87 and the remaining during 2005-10.
  • Substantial additional prospective land position acquired in area.
  • Amenable to open pit mining.
  • Metallurgical studies completed by SGS and RPC indicate 98% gold recovery on the higher- grade western gabbro zone (WGZ).
  • Skilled labour force including regional DNR office.
  • Mining friendly location near City of Bathurst and airport 30 km southeast, paved road access to project, highway and power adjacent to the property.

Qualified Persons Review

The technical and scientific information contained within this news release has been reviewed and approved by Bob Komarechka, P.Geo., a director of Canadian GoldCamps Corp. and Qualified Person as defined by National Instrument 43-101 policy.

References:

  1. Murahwi, C., Martin, A. and Godard, M., 2011: Technical Report NI 43-101 on the Mineral Resource Estimate for the Elmtree Gold Property, Gloucester County, New Brunswick Canada, pages 56, 61-62 and 65.
  2. Shoemaker, S., Jacobs, C., Cullen, M., 2010: Technical report on Preliminary Assessment of the Elmtree Gold Property, Gloucester County, New Brunswick, Canada.

About Canadian Gold
C
amps Corp.

Canadian GoldCamps is a Canadian based exploration company focused on acquiring prospective properties and making new gold discoveries in established gold camps in Canada, focusing on Ontario and Quebec. With a long history of mining, excellent infrastructure and a rich geological environment, the superior geologic province in Ontario and Quebec is one of the best places globally for discovering world-class deposits.

For further information, please contact:

Canadian GoldCamps
Brendan Purdy, Interim CEO
Tel: 604-687-2038


Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. There is no assurance the private placement, property option, change of board or reinstatement of trading referred to above will close on the terms as stated, or at all. The Company disclaims any intention or obligation to revise or update such statements.



Posted on

POINT Biopharma Announces New Board Appointments


Jonathan Ross Goodman, Gerry Hogue and Peggy Gilmour join POINT


’


s Board of Directors

TORONTO, Dec. 09, 2020 (GLOBE NEWSWIRE) — POINT Biopharma Inc. (POINT), a radiopharmaceutical company dedicated to bringing the many benefits of precision radioligand therapy to cancer patients, today announced the appointment of Jonathan Ross Goodman, Gerry Hogue and Peggy Gilmour to its Board of Directors.

Mr. Goodman was the co-founder, President and CEO of publicly-traded Paladin Labs Inc (TSE:PLB), which was acquired in 2014 by Endo International Inc. (NASDAQ:ENDP) for $3.2 billion. The same day that Paladin was sold, Mr. Goodman started a second publicly-traded specialty pharmaceutical company, Knight Therapeutics Inc. (TSE:GUD). Mr. Goodman is a recipient of the Globe and Mail’s Top 40 Under 40 award, Federation CJA’s Sam Steinberg Award for entrepreneurial excellence and Koach Award for leading campaigner, UIA Federations of Canada National Young Leadership Award of Distinction, the Special Recognition Award by Brain Injury Canada, Bernard Gross Leadership Award by ORT Montreal, was appointed Honorary Chairman of the Ride to Conquer Cancer and was named Quebec Entrepreneur of the Year in the Life Sciences by the National Post and Ernst & Young.

Gerry Hogue is the founder of VieCure, an oncology EMR software platform, and presently serves as its President & CEO. Mr. Hogue has spent many years working in the field of enabling technologies for cancer care. In 1993, Mr. Hogue founded OpTx Corporation, which created the world’s first oncology-specific electronic medical record and decision support system.

Peggy Gilmour is a senior finance, risk management and audit executive with a deep understanding of both US and Canadian regulatory environments. Most recently, Ms. Gilmour was Board Chair of the Institute of Internal Auditors, Toronto Chapter, and has previously held board, audit, governance & risk roles with organizations such as Metrolinx, Interac and Ontario Pension Board. A chartered accountant by training, Ms. Gilmour gained her extensive finance experience as CFO of the Operations & Technology Division within BMO Financial Group and as SVP of Finance at Aviva Insurance Canada.

“I am very pleased to welcome these highly qualified individuals to POINT’s Board of Directors,” says Allan Silber, Executive Chairman of POINT’s board. “Their significant experience in pharmaceuticals, oncology, regulatory and audit will further accelerate POINT’s success.”

About POINT Biopharma

POINT Biopharma is a globally focused radiopharmaceutical company building a platform for the clinical development and commercialization of radioligands that fight cancer. POINT is combining a portfolio of best in class radiopharmaceutical assets, a seasoned management team, strategic partnerships in radio-isotope supply, manufacturing technology and novel direct to patient targeting to revolutionize theranostic drug development and radioligand commercialization.

Media Inquiries:

Ari Shomair

VP, Corporate Affairs
[email protected]
(647) 812-2417
www.pointbiopharma.com



Posted on

Skyharbour Signs Definitive Agreement with Pitchblende Energy and Valor Resources to Option 80% of the North Falcon Point Uranium Property

VANCOUVER, British Columbia, Dec. 09, 2020 (GLOBE NEWSWIRE) — Skyharbour Resources Ltd. (TSX-V: SYH)(OTCQB: SYHBF) (Frankfurt: SC1P) (the “Company”) is pleased to announce the execution of a Definitive Agreement with Australian-registered Pitchblende Energy Pty Ltd (“Pitchblende”) and Valor Resources (ASX: VAL), which provides Pitchblende an earn-in option to acquire an 80% working interest in the North Falcon Point Uranium Project, to be renamed the Hook Lake Uranium Project (the “Property”).

Skyharbour’s Uranium Project Map in the Athabasca Basin:

https://skyharbourltd.com/_resources/maps/SYH-Athabasca-Map.pdf

Under the Definitive Agreement, and subject to completion of the acquisition of Pitchblende by ASX-listed Valor Resources Limited (ASX: VAL) (“Valor”), Pitchblende will contribute cash and exploration expenditure consideration totaling CAD $3,975,000 over a three-year period (“Project Consideration”). Of the Project Consideration, $475,000 will be in cash payments to Skyharbour as well as $3,500,000 in exploration expenditures. Valor will also issue a total of 233,333,333 shares (“Consideration Shares”) upfront.

Skyharbour’s President and CEO, Jordan Trimble commented: “We are thrilled to have this Definitive Agreement signed as we continue to execute on our business model by adding value to our project base in the Athabasca Basin through strategic partnerships as well as focused mineral exploration at our flagship Moore Lake Project. We are excited to have the opportunity to work with new partners in Pitchblende and Valor led by experienced management and technical teams at our North Falcon Point Project while maintaining a 100% interest at the Frasers Lakes Uranium and Thorium Deposit at the South Falcon Point Project. News will be forthcoming on exploration plans and the timing is excellent given the recent upward momentum in the uranium market.”

North Falcon Point Project Summary:

Pitchblende will have the right to earn an 80% working interest in the North Falcon Point Project (to be renamed the Hook Lake Uranium Project) located 60 km east of the Key Lake Uranium Mine in northern Saskatchewan. Covering 25,846 hectares, the 16 contiguous mineral claims host several prospective areas of uranium mineralisation including:

  • Hook Lake / Zone S – High grade surface outcrop with reported grades in grab samples up to 68% U3O8; a bio-geochemical survey carried out over the trenches in 2015 responded positively with along-strike anomalies 2 km to the northeast
  • Nob Hill – Fracture-controlled vein-type uranium mineralisation on surface outcrop with up to 0.130% – 0.141% U3O8 in grab samples; diamond drilling intersected anomalous uranium in several drill holes with values up to 422 ppm U over 0.5 m
  • West Way – Vein type U mineralisation within a NE-trending shear zone; grab samples taken from the surface showing contained variable uranium values including up to 0.475% U3O8 and drilling of the structure intersected the altered shear zone at depth, along with anomalous Cu, Ni, Co, As, V, U, & Pb
  • Grid T – Fracture-hosted secondary uranium mineralisation in sheared calc-silicates and marbles in a 100 m x 20 m zone of anomalous radioactivity with grab samples having up to 800 ppm U
  • Alexander Lake Boulder Field – 30 biotite-quartz-k-feldspar pegmatite boulders NE of Alexander Lake; the best results include 360 ppm U, 1,400 ppm U and 1,600 ppm U respectively
  • Thompson Lake Boulder Field – Numerous radioactive boulders and blocks of pegmatized meta-arkose, pegmatite, and granite; the best value obtained was 738 ppm U from a granite boulder
  • NE Alexander Lake – Several calc-silicate, plagioclase-quartz granulite, quartzite, and meta-arkose boulders with up to 4,800 ppm U, 7,600 ppm Mo and 1,220 ppm Ni

The project area is in close proximity to two all-weather northern highways and grid power. Historical exploration has consisted of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area. Compilation and reinterpretation of previous exploration work results is already underway. It is anticipated that the initial phase of exploration work by Pitchblende will include further bio-geochemical surveys, detailed UAV magnetics, ground gravity and resistivity surveys as well as detailed geological and structural mapping. Based on this work drill targets will be selected. If carried to completion, a joint venture would be formed being 80% to Pitchblende and 20% to Skyharbour.

Option Agreement Terms for the
North
Falcon Point Project:

Under the terms of the Definitive Agreement, Pitchblende may acquire up to an 80% interest in the Property by incurring an aggregate of $3,500,000 in exploration expenditures, paying a total of $475,000 and issuing an aggregate 233,333,333 Valor shares to Skyharbour as follows:

Date Cash Payments Exploration Expenditures Valor
Shares
Issued
On Closing $50,000 $0 233,333,333
On or before the first anniversary of Closing $75,000 $750,000 0
On or before the second anniversary of Closing $175,000 $1,000,000 0
On or before the third anniversary of Closing $175,000 $1,750,000 0
TOTAL $
4
7
5
,000 		$
3,500,000 		2
33
,
333
,
333

The transaction is subject to various conditions precedent including Valor shareholder approval as well as ASX and regulatory approval.

About Pitchblende Energy Pty Ltd
:

Pitchblende is the subject of a binding terms sheet pursuant to which, subject to Valor shareholder approval, it will become a wholly owned subsidiary of Valor.

About Valor Resources Ltd:

Valor Resources Limited (ASX: VAL) is an exploration company listed on the Australian Securities Exchange focused on creating shareholder value through acquisitions and exploration activities. The company is acquiring uranium projects in the Athabasca Basin of Northern Saskatchewan, Canada through the acquisition of Pitchblende Energy Pty Ltd which is subject to shareholder approval.

George Bauk is the Executive Chairman of Valor and has over 30 years of experience within the resource industry in both production and exploration with assets in Australia and internationally. Mr. Bauk holds a Bachelor of Business (Accounting and Finance) from Edith Cowan University, is a Fellow of the CPA and has an MBA from the University of New England. He has held global operational and corporate roles with WMC Resources and Western Metals. Mr. Bauk has a strong background in strategic management, business planning, capital raising, and has experience with a variety of commodities. Mr. Bauk is a member of the WA resources industry having previously held a number of senior governing positions with the Chamber of Minerals and Energy including Vice President.

Mr. Bauk has overseen several uranium exploration projects in the US, Tanzania and Western Australia, partnering with AREVA in Western Australia whilst being Managing Director of Northern Uranium prior to transitioning to Northern Minerals. In 2006, Mr. Bauk was focussed on the southern Tanzanian region which was the region known for the successful Mkuju River discovery by Mantra Resources. During his time as Managing Director of Northern Minerals, he led its rapid development from a greenfields heavy rare earth explorer to one of a few global producers of high value dysprosium outside of China.

Gary Billingsley, a resident of Saskatoon, has also recently joined Valor as a non-Executive Director and brings over 48 years of experience in the resource industry. Mr. Billingsley holds a Bachelor of Science Advanced Degree in Geology from the University of Saskatchewan in Canada. He also obtained his Chartered Accountant designation and currently also holds designations as both a Professional Engineer and Professional Geoscientist. Mr. Billingsley has held several operational and corporate roles from Chief Mine Geologist to President and CEO of both small and large public companies. Besides a strong technical background, he has extensive experience on the corporate and capital markets side of the industry. He has served on board committees including Audit, Compensation, Corporate Governance and Environment, Health and Safety committees. His public company experience covers commodities including oil and gas, base metals, gold, diamonds, uranium, potash and rare earths.

Some highlights of Mr. Billingsley’s career include leading the team that put Saskatchewan’s largest gold mine into production, still producing after 29 years; discovering several diamond-bearing kimberlites in Saskatchewan, one of which has now completed final feasibility; playing a major role in taking a junior potash company public, that was subsequently purchased by BHP; and establishing one of the first companies to recognize the importance of developing rare earth projects outside of China including downstream capacity.

Qualified Person:

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s Head Technical Advisor and a Director, as well as a Qualified Person. 

About Skyharbour Resources Ltd.:

Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada’s Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with six drill-ready projects. Skyharbour has acquired from Denison Mines, a large strategic shareholder of the Company, a 100% interest in the Moore Uranium Project which is located 15 kilometres east of Denison’s Wheeler River project and 39 kilometres south of Cameco’s McArthur River uranium mine. Moore is an advanced stage uranium exploration property with high grade uranium mineralization at the Maverick Zone with drill results returning up to 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres.

Skyharbour has option agreements with Orano Canada Inc. and Azincourt Energy whereby Orano and Azincourt can earn in up to 70% of the Preston Project through a combined $9,800,000 in total exploration expenditures, as well as $1,700,000 in total cash payments and Azincourt shares. Preston is a large, geologically prospective property proximal to Fission Uranium’s Triple R deposit as well as NexGen Energy’s Arrow deposit.

The Company owns a 100% interest in the South Falcon Uranium Project on the eastern perimeter of the Basin which contains a NI 43-101 inferred resource totaling 7.0 million pounds of U3O8 at 0.03% and 5.3 million pounds of ThO2 at 0.023%. Skyharbour has signed a Definitive Agreement with Australian company Pitchblende Energy, which is being acquired by ASX-listed Valor Resources, on the North Falcon Uranium Project whereby Pitchblende can earn-in 80% of the project through $3,500,000 in total exploration expenditures, $475,000 in total cash payments over three years and an initial share issuance.

Skyharbour’s goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions

Skyharbour’s Uranium Project Map in the Athabasca Basin:

http://skyharbourltd.com/_resources/maps/SYH-Athabasca-Map.pdf

To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com.

SKYHARBOUR RESOURCES LTD.

“Jordan Trimble”

Jordan Trimble
President and CEO

For further information contact myself or:
Spencer Coulter
Corporate Development and Communications
Skyharbour Resources Ltd.
Telephone: 604-687-3376
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.



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ONroute Makes Significant Donation to Support Our Troops After Month-Long Campaign

TORONTO, Dec. 09, 2020 (GLOBE NEWSWIRE) — ONroute Service Centres (ONroute) proudly presented Support Our Troops with a $48,723 donation today following a month-long fundraising campaign honouring Canadian Armed Forces (CAF) serving members, veterans and their families. Customers visiting any of ONroute’s 23 locations between November 1st and 30th were invited to donate one dollar to Support Our Troops and their programs that support military members, the ill and injured, and contribute to empowering family resiliency.

“We are honoured to offer this contribution to Support Our Troops, an organization that is doing truly important and significant work for members of our Canadian Armed Forces,” says Melanie Teed-Murch, CEO of ONroute. “We appreciate and thank every customer who chose to donate throughout November. This is a testament to small acts of generosity that ultimately make a huge difference.”

Support Our Troops is the official charitable cause of the Canadian Armed Forces. It works to meet the unique needs and special challenges faced by members of the Canadian Armed Forces community as a result of their service to Canada and Canadians. Some of these challenges include dangers of the job, long absences from home, and relocation across Canada and the world. Support Our Troops helps military members, Veterans, the ill and injured, and their families, through a series of grants and programs.

“In November, Canadians pause to remember those who made the ultimate sacrifice while serving our country in uniform,” says Commodore (Ret’d) Sean N. Cantelon, CEO of Canadian Forces Morale and Welfare Services (CFMWS). “We are so appreciative of ONroute and their customers for the exceptional support they have shown our military community throughout this campaign. Thanks to the generosity of Canadians stopping at ONroute on their travels, Support Our Troops can help make a difference in the lives of the women and men of the Canadian Armed Forces, and their families.”

In addition to the Support Our Troops fundraising campaign, ONroute also offered a free beverage for all service members and veterans on Remembrance Day.

About ONroute

ONroute is a Canadian operated company that provides a clean, safe and friendly environment at our rest stops along the busy 401 and 400 in Ontario. We proudly serve over 40 million customers per year in our 23 locations that are open 24 hours a day, 365 days a year. ONroute proudly partners with highly recognized brands in the quick service food industry to offer our customers variety and choice as they travel along the highway to their destination. Whether individual families, commuter or fleet and tour operators, we are here to help our travelers along their journey.

About Support Our Troops

Established in 2007, Support Our Troops meets the unique needs and special challenges faced by members of the Canadian Armed Forces community as a result of military service. This includes providing financial assistance to promote family resiliency and to support the recovery, rehabilitation, and reintegration of members with a physical and/or mental illness or injury. It operates within Canadian Forces Morale and Welfare Services.

Media Contact

Colleen Ryan
647-232-6867
[email protected]