Market Newsdesk

November 16, 2020 6:33 am

Cerevel Therapeutics Announces Third Quarter 2020 Financial Results and Key Business Highlights

Participants dosed in clinical trials for lead programs in
schizophrenia, epilepsy, anxiety and Parkinson’s disease

Debuted as publicly traded entity under symbol CERE

Net proceeds of approximately $440 million raised from completed business combination transaction with ARYA Sciences Acquisition Corp II and concurrent PIPE financing

BOSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) — Cerevel Therapeutics (Nasdaq: CERE), a company dedicated to unraveling the mysteries of the brain to treat neuroscience diseases, today announced financial results for the third quarter ended September 30, 2020 and provided recent business updates.

“During the third quarter of 2020 we made substantial progress towards our goal of becoming the premier neuroscience company,” said Tony Coles, M.D., chief executive officer and chairperson of Cerevel Therapeutics. “As a result of our business combination with Arya II and the accompanying PIPE financing, we now have the financial resources expected to fund our operating plan into 2023 and advance each of our lead programs in the clinic. Our goal is to make a profound impact in the lives of people with schizophrenia, anxiety, epilepsy and Parkinson’s disease and we have initiated enrollment in each of our clinical trials for these diseases.”

Third Quarter

and

Key Business Highlights

Dosed
participants in clinical trials for all three lead programs.

_°
CVL-231: the first participant was dosed in Part B of the Phase 1b trial of CVL-231 in patients with schizophrenia. The Phase 1b trial consists of Part A, a multiple ascending dose trial and Part B, a pharmacokinetic/pharmacodynamic trial. Dosing in Part A of the trial had started in the second half of 2019. Data from the Phase 1b trial are expected in the second half of 2021.
_° CVL-865: the first participant was dosed in the Phase 2 REALIZE trial evaluating CVL-865 as an adjunctive therapy in adults with drug-resistant focal onset seizures. Data from the REALIZE trial are expected in the second half of 2022. Additionally, the first participant was dosed in the Phase 1 proof-of-principle trial for acute anxiety in healthy volunteers. Data from this Phase 1 trial are expected in the second half of 2021.
_° Tavapadon: the first participants have been dosed in all three of the ongoing clinical trials in the Phase 3 program evaluating tavapadon in patients with Parkinson’s disease. Preliminary data readouts from the Phase 3 program are expected to be available beginning in the first half of 2023.

Debuted as publicly traded neuroscience company
. On October 28, 2020, Cerevel began trading as a public company via one of the largest go-public transactions in the biopharma industry to date. Following the completion of its business combination with ARYA Sciences Acquisition Corp II (Arya II), a special purpose acquisition company or SPAC, sponsored by Perceptive Advisors, Cerevel Therapeutics Holdings, Inc., the resulting combined company, commenced trading its shares under the symbol “CERE” and its warrants under the symbol “CEREW” on the Nasdaq Capital Market.
Raised net
proceeds of approximately $440 million
through completed business combination
. On July 29, 2020, Cerevel Therapeutics and Arya II entered into a definitive business combination agreement. Concurrently, a group of premier healthcare investors committed to participate in the transaction through a concurrent private investment in public equity (“PIPE”) financing. On October 27, 2020, the business combination was completed and net proceeds from the transaction totaled approximately $440 million, which included funds held in Arya II’s trust account and proceeds from the PIPE financing, less transaction expenses.

Third Quarter Financial Results

Cash and cash equivalents: Cash and cash equivalents were $13 million as of September 30 2020. Following receipt of the net proceeds from the business combination with Arya II and the concurrent PIPE financing, Cerevel Therapeutics expects its cash and cash equivalents will be sufficient to fund its current operating plan into 2023.
Research and Development (R&D) Expenses: R&D expenses were $24 million for the third quarter of 2020 as compared to $17 million for the third quarter of 2019. The increase in research and development expense was primarily due to higher program costs related to advancing our pipeline and increased personnel costs as we grew our organization.
General and Administrative (G&A) Expenses: G&A expenses were $10 million for the third quarter of 2020 as compared to $10 million for the third quarter of 2019.
Net Loss: Net loss was $39 million for the third quarter of 2020, as compared to net loss of $36 million for the third quarter of 2019.

About Cerevel Therapeutics

Cerevel Therapeutics is dedicated to unraveling the mysteries of the brain to treat neuroscience diseases. The company is tackling neuroscience diseases with a differentiated approach that combines expertise in neurocircuitry with a focus on receptor selectivity. Cerevel Therapeutics has a diversified pipeline comprising five clinical-stage investigational therapies and several preclinical compounds with the potential to treat a range of neuroscience diseases, including schizophrenia, epilepsy, Parkinson’s disease and substance use disorder. Headquartered in Boston, Cerevel Therapeutics is advancing its current research and development programs while exploring new modalities through internal research efforts, external collaborations or potential acquisitions. For more information, visit www.cerevel.com.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements in this press release include, but are not limited to, statements about the potential attributes and benefits of our product candidates, the format and timing of our product development activities and clinical trials,
including the expected timing of data announcements, and the sufficiency of our financial resources. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to various risks and uncertainties, including, among others: that clinical trial results may not be favorable; uncertainties inherent in the product development process (including with respect to the timing of results and whether such results will be predictive of future results); the impact of COVID-19 on the timing, progress and results of ongoing or planned clinical trials; other impacts of COVID-19, including operational disruptions or delays or to our ability to raise additional capital; whether and when, if at all, our product candidates will receive approval from the FDA or other regulatory authorities, and for which, if any, indications; competition from other biotechnology companies; uncertainties regarding intellectual property protection; and other risks identified in our SEC filings, including those under the heading “Risk Factors” in our definitive proxy statement/prospectus filed with the SEC on October 7, 2020. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Media Contact:

Rachel Eides
W2O pure
[email protected]

I
nvestor Contact:

Matthew Calistri
Cerevel Therapeutics
[email protected]

TABLE 1

CEREVEL THERAPEUTICS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2019			2020			2019			2020

Operating expenses:
Research and development	$	17,342		$	24,026		$	28,326		$	73,168
General and administrative	9,643			10,336			18,740			34,052
Total operating expenses	26,985			34,362			47,066			107,220
Loss from operations	(26,985		)	(34,362		)	(47,066		)	(107,220		)
Interest income, net	368			1			1,360			210
Other income (expense), net	(8,980		)	(4,684		)	(26,423		)	(11,976		)
Loss before income taxes	(35,597		)	(39,045		)	(72,129		)	(118,986		)
Income tax (provision) benefit, net	–			5			–			21
Net loss and comprehensive loss	$	(35,597	)	$	(39,040	)	$	(72,129	)	$	(118,965	)
Net loss per share, basic and diluted	$	(7.73	)	$	(5.49	)	$	(15.66	)	$	(17.89	)
Weighted-average shares used in calculating net loss per share, basic and diluted	4,608			7,112			4,605			6,648

TABLE 2

CEREVEL THERAPEUTICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	As of		As of
	December 31, 2019		September 30, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	79,551	$	12,808
Prepaid expenses and other current assets	7,526		3,076
Total current assets	87,077		15,884
Property and equipment, net	1,476		16,620
Operating lease assets	26,015		24,727
Restricted cash	4,131		4,200
Other long-term assets	2,107		5,606
Total assets	$	120,806	$	67,037

LIABILITIES, CONVERTIBLE STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	2,109	$	4,822
Accrued expenses and other current liabilities	10,175		22,181
Operating lease liabilities, current portion	2,592		2,206
Total current liabilities	14,876		29,209
Operating lease liabilities, net of current portion	25,819		29,515
Other long-term liabilities	2,288		9,060
Total liabilities	42,983		67,784
Convertible stock and stockholders’ (deficit) equity	77,823		(747		)
Total liabilities, convertible stock and stockholders’ (deficit) equity	$	120,806	$	67,037

TABLE 3

CEREVEL THERAPEUTICS HOLDINGS, INC.
SUMMARY OF CASH FLOWS
(unaudited, in thousands)

	For the Nine Months
	Ended September 30,
CASH FLOWS	2019			2020

Net cash flows used in operating activities	$	(34,907	)	$	(76,099	)
Net cash flows used in investing activities	(550		)	(11,341		)
Net cash flows provided by financing activities	58			20,766
Net decrease in cash, cash equivalents and restricted cash	(35,399		)	(66,674		)
Cash, cash equivalents and restricted cash, beginning of the period	95,443			83,682
Cash, cash equivalents and restricted cash, end of the period	$	60,044		$	17,008

Note:
Cash, cash equivalents and restricted cash balances include restricted cash of $4.2 million and $4.1 million as of September 30, 2020 and December 31, 2020, respectively.

TABLE 4

CEREVEL THERAPEUTICS HOLDINGS, INC.
GAAP TO NON-GAAP RECONCILIATION
(unaudited, in thousands, except per share amounts)

An itemized reconciliation between net loss per share on a GAAP basis and on a Non-GAAP basis is as follows:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2019			2020			2019			2020

GAAP net loss per share, basic and diluted	$	(7.73	)	$	(5.49	)	$	(15.66	)	$	(17.89	)
Adjustments to GAAP net loss per share (as detailed below)	2.54			1.15			6.56			3.65
Non-GAAP net loss per share, basic and diluted	$	(5.19	)	$	(4.34	)	$	(9.10	)	$	(14.24	)
Weighted-average shares used in calculating net loss per share	4,608			7,112			4,605			6,648


An itemized reconciliation between net loss on a GAAP basis and on a Non-GAAP basis is as follows:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2019			2020			2019			2020

GAAP net loss	$	(35,597	)	$	(39,040	)	$	(72,129	)	$	(118,965	)
Adjustments:
Research and development: equity-based compensation expense	879			1,059			1,530			2,883
General and administrative: equity-based compensation expense	1,820			2,413			2,262			6,981
General and administrative: write-off of deferred financing costs	–			–			–			2,485
Other income (expense), net: loss (gain) on fair value remeasurement of Equity Commitment	11,880			4,650			30,202			11,300
Other income (expense), net: loss (gain) on fair value remeasurement of Share Purchase Option	(2,900		)	30			(3,780		)	670
Non-GAAP net loss	$	(23,918	)	$	(30,888	)	$	(41,915	)	$	(94,646	)

Use of Non-GAAP Financial Measures
We supplement our consolidated financial statements presented on the basis of U.S. generally accepted accounting principles, or GAAP, by providing additional measures which may be considered “Non-GAAP” financial measures under applicable SEC rules. Our “Non-GAAP net loss per share” and “Non-GAAP net loss” financial measures exclude the following items included in our reported, or GAAP, net loss and net loss per share financial measures: equity-based compensation expense, changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option and a $2.5 million charge for the write-off of deferred financing costs associated with our IPO and other financing activities that were abandoned in June 2020 upon signing of the term sheet for our business combination agreement with ARYA Sciences Acquisition Corp II, or ARYA. We exclude equity-based compensation expense because it is a non-cash item, which is excluded from our internal operating plans and measurement of financial performance, although we consider the dilutive impact to our investors when awarding stock-based compensation and value such awards accordingly. We exclude changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option because, in connection our business combination with ARYA, these instruments were terminated and the exclusion of such non-cash charges provides better period-over-period comparability of our results of operations as viewed by management. We exclude the charge for the write-off of deferred financing costs associated with our abandoned IPO and other financing activities because these were one-time, non-recurring costs and their exclusion provides better period-over-period comparability of our results of operations as viewed by management. These non-GAAP financial measures are not in accordance with GAAP in the United States and should not be viewed in isolation or as a substitute for reported, or GAAP, net loss and net loss per share. In making any comparisons to other companies, investors should be aware that companies use different non-GAAP measures to evaluate their financial performance and should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.

TABLE 5

CEREVEL THERAPEUTICS HOLDINGS, INC.
GAAP TO NON-GAAP RECONCILIATION
(unaudited, in thousands, except per share amounts)

	For the Three Months									For the Three Months
	Ended September 30, 2019									Ended September 30, 2020
	GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP

Operating expenses:
Research and development (1)	$	17,342		$	(879	)	$	16,463		$	24,026		$	(1,059	)	$	22,967
General and administrative (2)	9,643			(1,820		)	7,823			10,336			(2,413		)	7,923
Total operating expenses	26,985			(2,699		)	24,286			34,362			(3,472		)	30,890
Loss from operations	(26,985		)	2,699			(24,286		)	(34,362		)	3,472			(30,890		)
Interest income, net	368			–			368			1			–			1
Other income (expense), net (3)	(8,980		)	8,980			–			(4,684		)	4,680			(4		)
Loss before income taxes	(35,597		)	11,679			(23,918		)	(39,045		)	8,152			(30,893		)
Income tax (provision) benefit, net	–			–			–			5			–			5
Net loss and comprehensive loss	$	(35,597	)	$	11,679		$	(23,918	)	$	(39,040	)	$	8,152		$	(30,888	)
Net loss per share, basic and diluted	$	(7.73	)	$	2.54		$	(5.19	)	$	(5.49	)	$	1.15		$	(4.34	)
Weighted-average shares used in calculating net loss per share, basic and diluted	4,608						4,608			7,112						7,112


	For the Nine Months									For the Nine Months
	Ended September 30, 2019									Ended September 30, 2020
	GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP

Operating expenses:
Research and development (4)	$	28,326		$	(1,530	)	$	26,796		$	73,168		$	(2,883	)	$	70,285
General and administrative (5) (6)	18,740			(2,262		)	16,478			34,052			(9,466		)	24,586
Total operating expenses	47,066			(3,792		)	43,274			107,220			(12,349		)	94,871
Loss from operations	(47,066		)	3,792			(43,274		)	(107,220		)	12,349			(94,871		)
Interest income, net	1,360			–			1,360			210			–			210
Other income (expense), net (7)	(26,423		)	26,422			(1		)	(11,976		)	11,970			(6		)
Loss before income taxes	(72,129		)	30,214			(41,915		)	(118,986		)	24,319			(94,667		)
Income tax (provision) benefit, net	–			–			–			21			–			21
Net loss and comprehensive loss	$	(72,129	)	$	30,214		$	(41,915	)	$	(118,965	)	$	24,319		$	(94,646	)
Net loss per share, basic and diluted	$	(15.66	)	$	6.56		$	(9.10	)	$	(17.89	)	$	3.65		$	(14.24	)
Weighted-average shares used in calculating net loss per share, basic and diluted	4,605						4,605			6,648						$	6,648

Notes For the Three Months Ended September 30, 2019 and 2020:

(1) GAAP Research and development expense includes $0.9 million and $1.1 million in equity-based compensation expense for the three months ended September 30, 2019 and 2020, respectively.

(2) GAAP General and administrative expense includes $1.8 million and $2.4 million in equity-based compensation expense for the three months ended September 30, 2019 and 2020, respectively.

(3) GAAP Other income (expense), net includes net losses of $9.0 million and $4.7 million on fair value remeasurement of our Equity Commitment and Share Purchase Option for the three months ended September 30, 2019 and 2020, respectively.

Notes For the Nine Months Ended September 30, 2019 and 2020:

(4) GAAP Research and development expense includes $1.5 million and $2.9 million in equity-based compensation expense for the nine months ended September 30, 2019 and 2020, respectively.

(5) GAAP General and administrative expense includes $2.3 million and $7.0 million in equity-based compensation expense for the nine months ended September 30, 2019 and 2020, respectively.

(6) GAAP General and administrative expense for the nine months ended September 30, 2020, includes a $2.5 million charge for the write-off of deferred financing costs associated with our IPO and other financing activities that were abandoned in June 2020, upon signing of the term sheet for our business combination agreement with ARYA Sciences Acquisition Corp II.

(7) GAAP Other income (expense), net includes net losses of $26.4 million and $12.0 million on fair value remeasurement of our Equity Commitment and Share Purchase Option for the nine months ended September 30, 2019 and 2020, respectively.

Use of Non-GAAP Financial Measures

We supplement our consolidated financial statements presented on the basis of U.S. generally accepted accounting principles, or GAAP, by providing additional measures which may be considered “Non-GAAP” financial measures under applicable SEC rules. Our “Non-GAAP net loss per share” and “Non-GAAP net loss” financial measures exclude the following items included in our reported, or GAAP, net loss and net loss per share financial measures: equity-based compensation expense, changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option and a $2.5 million charge for the write-off of deferred financing costs associated with our IPO and other financing activities that were abandoned in June 2020 upon signing of the term sheet for our business combination agreement with ARYA Sciences Acquisition Corp II, or ARYA. We exclude equity-based compensation expense because it is a non-cash item, which is excluded from our internal operating plans and measurement of financial performance, although we consider the dilutive impact to our investors when awarding stock-based compensation and value such awards accordingly. We exclude changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option because, in connection our business combination with ARYA, these instruments were terminated and the exclusion of such non-cash charges provides better period-over-period comparability of our results of operations as viewed by management. We exclude the charge for the write-off of deferred financing costs associated with our abandoned IPO and other financing activities because these were one-time, non-recurring costs and their exclusion provides better period-over-period comparability of our results of operations as viewed by management. These non-GAAP financial measures are not in accordance with GAAP in the United States and should not be viewed in isolation or as a substitute for reported, or GAAP, net loss and net loss per share. In making any comparisons to other companies, investors should be aware that companies use different non-GAAP measures to evaluate their financial performance and should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.

November 16, 2020 6:33 am

PAE to Acquire Metis Solutions, Expanding and Differentiating Its Intelligence Community and National Security Portfolio

Highlights

PAE will acquire Metis Solutions Corporation in a $92 million all-cash transaction.
The acquisition further strengthens PAE’s intelligence, defense and national security businesses in areas of high priority for the U.S. federal government.
In conjunction with the previously announced CENTRA Technology acquisition, the combination expands and differentiates PAE’s capabilities in intelligence analysis, training and program support for intelligence and defense customers.
The acquisition is expected to be accretive to key financial metrics including organic revenue growth, adjusted EBITDA margins and free cash flow.
Metis’ business will further broaden PAE’s customer reach and adds additional attractive contract vehicles to PAE’s portfolio.

FALLS CHURCH, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) — PAE (NASDAQ: PAE, PAEWW), a global leader in delivering smart solutions to the U.S. government and its allies, today announced that its subsidiary has entered into a definitive agreement to acquire Metis Solutions Corporation, a leading provider of intelligence analysis, operational and tactical training and program management, for approximately $92 million in cash. This represents a transaction multiple of approximately 9.7x CY2020 adjusted EBITDA, adjusted for estimated annual cost synergies.

PAE President and CEO John Heller commented:

“This acquisition expands and builds scale in intelligence analysis, training and program support, all of which are well-funded market areas of the U.S. government and our allied nations. Moreover, the acquisition of Metis is expected to be accretive to adjusted EBITDA margins and free cash flow. Additionally, in combination with CENTRA Technology, PAE will have significant breadth and depth across the Intelligence and National Security communities in capability and customer access.”

Metis is a leading provider of intelligence analysis, operational and tactical training and program management focused on supporting intelligence community, national security and defense customers. Headquartered in Arlington, Virginia, Metis has more than 450 employees, a majority of whom have top secret clearances with subject matter expertise across a broad range of critical national security issues.

“We are excited to join PAE and its heritage of service. Our shared cultures of service excellence and innovation make this a compelling combination. Together, we will pursue exciting new revenue opportunities,” said Christopher Wynes, Metis president and CEO. “Joining together with PAE will help accelerate growth in our intelligence and national security business and enable us to pursue a broader customer base across more markets.”

Strategic and Financial Benefits of the Acquisition

Breadth of Contract Vehicles
: The transaction brings more than eight strategic indefinite delivery, indefinite quantity contract vehicles, representing more than $60 billion of ceiling value that is expected to improve PAE’s business development pipeline in terms of number, size and win-rate percentage of opportunities.
Broadens Offerings
and Capabilities
: Expands and builds scale in PAE’s intelligence analysis, training and program support business areas. These market areas are all well-funded by the U.S. government and our allied nations.
Expands
Whitespace Opportunity
: Strategically positions PAE with new customers across the intelligence and defense communities.
Attractive Financial Profile
:
Metis’ current financial profile, coupled with expected cost synergies, is expected to be accretive to organic revenue growth, adjusted EBITDA margins and free cash flow per share.

Financing and Approvals

The transaction has been unanimously approved by the boards of directors of both PAE and Metis. It is expected to close this quarter. PAE expects to fund the purchase price of approximately $92 million with cash on hand and utilization of its delayed draw term loan.

PAE is reiterating its fiscal year 2020 financial outlook provided on November 5^th, 2020. The 2020 financial outlook does not incorporate anticipated financial results of CENTRA or Metis.

Advisors

Crowell & Moring LLP acted as legal advisor to PAE in connection with the transaction.

Miles & Stockbridge P.C. acted as legal advisor and Raymond James & Associates, Inc. acted as financial advisor to Metis in connection with the transaction.

Conference Call and Webcast

PAE will host a conference call and webcast, November 16, 2020, at 8 a.m. ET and will post an investor presentation to its website. Management will review details of the acquisition, followed by a question-and-answer session. Listeners and other interested parties will be able to access a presentation summarizing the transaction on the PAE Investor Relations website.

Interested parties are invited to join the webcast from the PAE Investor Relations website. Due to the COVID-19 pandemic, teleconference providers globally are experiencing significant increases in conference call volume. As such, PAE recommends that parties participate by joining the webcast. Alternatively, if the webcast is not practical, attendees may listen to the conference call by dialing (855) 982-6676 and entering conference ID 2168537. The international dial-in access number is (614) 999-9188.

PAE will post an archive of the webcast following the call on the PAE Investor Relations website.

About PAE

For 65 years, PAE has tackled the world’s toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. With a global workforce of approximately 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. Our headquarters is in Falls Church, Virginia. Find us online at pae.com, on Facebook, Twitter and LinkedIn.

Forward-Looking Statements

This press release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our expectations and projections regarding the acquisition of Metis Solutions Corporation, PAE’s possible or assumed future results of operations, financial results, backlog, estimation of resources for contracts, strategy for and management of growth, needs for additional capital, risks related to government contracting generally, including failures to properly manage projects and subcontractors, susceptibility to claims, litigation and other disputes, and risks related to public health crises. These forward-looking statements are based on PAE’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside PAE’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements included in this release speak only as of the date of this release. PAE does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.

Non-GAAP Financial Measures

PAE Incorporated (the “Company”) uses adjusted EBITDA, adjusted EBITDA margin and free cash flow as supplemental non-GAAP measures of performance. PAE defines EBITDA as net income excluding (i) interest expense, (ii) provision for or benefit from income taxes and (iii) depreciation and amortization. Adjusted EBITDA excludes certain amounts included in EBITDA. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenues expressed as a percentage. Free cash flow is defined as cash flow provided by operating activities less capital expenditures.

PAE believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating the acquisition by PAE of Metis Solutions Corporation and the projected future operating and financial results of PAE. The non-GAAP financial measures provided in this press release are forward-looking.

PAE is not providing a quantitative reconciliation of adjusted EBITDA or adjusted EBITDA margin in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, the Company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income may vary significantly based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected GAAP net income being materially less than is indicated by estimated adjusted EBITDA (non-GAAP). In addition, the Company does not provide a reconciliation of forward-looking free cash flow (non-GAAP) to GAAP cash flows provided by operating activities and GAAP cash used in investing activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain line items used to calculate projected cash flows provided by operating activities and cash used in investing activities may vary significantly based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all line items needed in order to provide a GAAP calculation of projected free cash flow at this time.

Use of Projections

This press release contains projections with respect to the Company and Metis Solutions Corporation. The Company’s independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this press release, and accordingly, did not express an opinion or provide any other form of assurance with respect thereto for the purpose of this press release. These projections should not be relied upon as being necessarily indicative of future results.

For investor inquiries regarding PAE:

Mark Zindler
Vice President Investor Relations
PAE
703-717-6017
[email protected]

For media inquiries regarding PAE:

Terrence Nowlin
Senior Communications Manager
PAE
703-656-7423
[email protected]

November 16, 2020 6:33 am

InfuSystem to Present at Craig-Hallum Capital Group and Sidoti & Company Investment Conferences

ROCHESTER HILLS, Michigan, Nov. 16, 2020 (GLOBE NEWSWIRE) — InfuSystem Holdings, Inc. (NYSE American: INFU), (“InfuSystem” or the “Company”), a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers, announced today that Rich DiIorio, Chief Executive Officer and Barry Steele, Chief Financial Officer, will present at the following investor conferences:

Craig-Hallum Capital Group 11^th Annual Alpha Select Conference
Tuesday, November 17, 2020
One-on-one virtual meeting event

Sidoti & Company Virtual Microcap Conference 2020
Thursday, November 19, 2020
Presentation at 2:30 p.m. ET
Link: https://sidoti.zoom.us/webinar/register/WN_XgEp0aoWQPSry0EFHSZhbQ

A webcast of the Sidoti conference presentation will be posted under the investor relations section of InfuSystem’s website at www.infusystem.com. A replay of the presentation will be available following the event.

Management is scheduled to meet with investors on Tuesday, November 17 and Thursday, November 19, with one-on-one meetings to be held throughout the two days. Investors interested in arranging one-on-one meetings should contact your conference representative. Conversely, you may also call or email Lytham Partners at 602-889-9700, or [email protected].

About InfuSystem Holdings, Inc.

InfuSystem Holdings, Inc. (NYSE American: INFU), is a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers. INFU services are provided under a two-platform model. The lead platform is Integrated Therapy Services (“ITS”), providing the last-mile solution for clinic-to-home healthcare where the continuing treatment involves complex durable medical equipment and services. The ITS segment is comprised of the Oncology, Pain Management, and Wound Therapy businesses. The second platform, Durable Medical Equipment Services (“DME Services”), supports the ITS platform and leverages strong service orientation to win incremental business from its direct payor clients. The DME Services segment is comprised of direct payor rentals, pump and consumable sales, and biomedical services and repair. Headquartered in Rochester Hills, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Massachusetts and Ontario, Canada.

Forward-Looking Statements

Certain statements contained in this press release or made in the virtual conference are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to future actions, business plans, objectives and prospects, future operating or financial performance. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “strategy,” “future,” “likely,” variations of such words, and other similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Forward-looking statements are subject to factors, risks and uncertainties that could cause actual results to differ materially, including, but not limited to the uncertain impact of the COVID-19 pandemic,, our dependence on estimates of collectible revenue, potential litigation, changes in third-party reimbursement processes, changes in law and other risk factors disclosed in the Company’s most recent annual report on Form 10-K and, to the extent applicable, quarterly reports on Form 10-Q. All forward-looking statements made in this press release speak only as of the date hereof. We do not undertake any obligation to update any forward-looking statements to reflect future events or circumstances, except as required by law.

Additional information about InfuSystem Holdings, Inc. is available at

www.infusystem.com

.

# # #

CONTACT:
Joe Dorame, Joe Diaz & Robert Blum
Lytham Partners, LLC
602-889-9700

November 16, 2020 6:29 am

Magic Reports Third Quarter 2020 Financial Results with Both Record-Breaking Revenues of $95 million, reflecting a 11% Year Over Year Growth and Record-Breaking Operating Income of $11 million, reflecting a 30% Year Over Year Growth

Non-GAAP operating income for the third quarter increased 21% year over year to a record breaking $14.2 million

OR YEHUDA, Israel, Nov. 16, 2020 (GLOBE NEWSWIRE) — Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of end-to-end integration and application development platforms solutions and IT consulting services, announced today its financial results for the third quarter and nine-months ended September 30, 2020.

Financial Highlights for the Third Quarter Ended September 30, 2020

Revenues for the third quarter increased 11% to a record breaking $94.9 million compared to $85.8 million in the same period last year.
Operating income for the third quarter increased 30% to a record breaking $11.0 million compared to $8.5 million in the same period last year.
Non-GAAP operating income for the third quarter increased 21% to a record breaking $14.2 million compared to $11.8 million in the same period last year.
Net income attributable to Magic’s shareholders for the third quarter increased 43% to a record breaking $7.1 million, or $0.14 per fully diluted share, compared to $5.0 million, or $0.10 per fully diluted share in the same period last year.
Non-GAAP net income attributable to Magic’s shareholders for the third quarter increased 17% to a record breaking $9.5 million, or $0.19 per fully diluted share, compared to $8.1 million, or $0.17 per fully diluted share, in the same period last year.

Financial Highlights for the Nine-month Period Ended September 30, 2020

Revenues for the nine-months of 2020 increased 14% to $266.6 million compared to $234.7 million in the same period last year.
Operating income for the nine-months of 2020 increased 19% to $29.6 million compared to $24.9 million in the same period last year.
Non-GAAP operating income for the nine-months of 2020 increased 15% to $37.4 million compared to $32.5 million in the same period last year.
Net income attributable to Magic’s shareholders for the nine-months of 2020 increased 23% to $18.7 million, or $0.38 per fully diluted share, compared to $15.1 million, or $0.29 per fully diluted share in the same period last year.
Non-GAAP net income attributable to Magic’s shareholders for the nine-months of 2020 increased 23% to $26.9 million, or $0.55 per fully diluted share, compared to $21.8 million, or $0.45 per fully diluted share, in the same period last year.
Cash flow from operating activities for the nine-months of 2020 amounted to $41.3 million compared to $32.7 million in the same period last year.
As of September 30, 2020, Magic’s net cash, cash equivalents, short and long-term bank deposits and marketable securities amounted to $85.6 million.
With the outlook for 2020 improving despite COVID-19 Magic is raising its May 2020 guidance for full year 2020 revenues of between $358 million to $365 million on a constant currency basis, reflecting annual growth of 9.9% to 11.5%, as compared to its prior range of $350 million to $360 million, overall increasing the midpoint of its guidance 1.8%.

Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said:

“Magic delivered strong execution during the quarter on all its fronts as we advance our business globally, signing new business and increasing our revenue from existing customers. Fueled by outstanding strategic performance in Israel and North America we will continue with our proven strategy to enhance our portfolio, organically and through acquisitions in order to offer the best one-stop-shop for digital transformation.”

Conference Call Details

Magic’s management will host a conference call on Monday, November 16, 2020 at 10:00 am Eastern Daylight Time (5:00 p.m. Israel Daylight Time) to review and discuss Magic’s results.

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, call the international dial-in number.

NORTH AMERICA: +1-888-668-9141

UK: 0-800-917-5108

ISRAEL: 03-918-0609

ALL OTHERS: +972-3-918-0609

For those unable to join the live call, a replay of the call will be available under the Investor Relations section of Magic’s website, www.magicsoftware.com.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributable to Magic’s shareholders and Non-GAAP basic and diluted earnings per share.

Magic believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Magic’s financial condition and results of operations. Magic’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Magic urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Non-GAAP measures used in this press release are included in the financial tables of this release. These non-GAAP measures exclude the following items:

Amortization of purchased intangible assets and other related costs;
In-process research and development capitalization and amortization;
Equity-based compensation expenses;
The related tax, non-controlling interests and redeemable non-controlling interests effects of the above items;
Change in valuation of contingent consideration related to acquisitions;
Acquisition-related costs;

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included in the financial tables of this release.

About Magic Software Enterprises

Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of mobile and cloud-enabled application and business integration platforms.

For more information, visit www.magicsoftware.com.

Forward Looking Statements

Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as “will,” “look forward”, “expect,” “believe” and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in our Annual Report on Form 20-F for the year ended December 31, 2019 and subsequent reports and filings made from time to time with the Securities and Exchange Commission.

Magic® is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.

Press Contact:

Noam Amir
Magic Software Enterprises
[email protected]

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. Dollars in thousands

	September 30,		December 31,
	2020		2019
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	79,395	$	81,915
Short-term bank deposits		2,784		6,996
Marketable securities		1,181		6,600
Trade receivables, net		99,798		96,694
Other accounts receivable and prepaid expenses		11,484		12,845
Total current assets		194,642		205,050

LONG-TERM RECEIVABLES:
Severance pay fund		4,248		4,013
Deferred tax assets		2,280		2,188
Operating lease right-of-use assets		23,115		14,956
Other long-term receivables		2,910		3,594
Other long-term deposits		2,285		2,285
Total long-term receivables		34,838		27,036

PROPERTY AND EQUIPMENT, NET		5,910		3,649
INTANGIBLE ASSETS AND GOODWILL, NET		187,108		168,871

TOTAL ASSETS	$	422,498	$	404,606

LIABILITIES AND EQUITY

CURRENT LIABILITIES:
Short-term debt	$	10,748	$	7,079
Trade payables		11,871		10,990
Accrued expenses and other accounts payable		37,541		32,619
Current maturities of operating lease liabilities		2,898		3,833
Liabilities due to acquisition activities		5,510		3,638
Deferred revenues and customer advances		8,958		8,724
Total current liabilities		77,526		66,883

NON-CURRENT LIABILITIES:
Long-term debt		18,070		15,540
Deferred tax liability		14,845		11,069
Long-term operating lease liabilities		20,220		11,119
Long-term liabilities due to acquisition activities		9,325		8,613
Accrued severance pay		5,062		4,770
Total non-current liabilities		67,522		51,111

REDEEMABLE NON-CONTROLLING INTERESTS		16,588		21,915

EQUITY:
Magic Software Enterprises equity		247,284		247,838
Non-controlling interests		13,578		16,859
Total equity		260,862		264,697

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY	$	422,498	$	404,606

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. Dollars in thousands (except per share data)

	Three months ended						Nine months ended
	September 30,						September 30,
	2020			2019			2020			2019

	Unaudited						Unaudited
Revenues	$	94,892		$	85,843		$	266,621		$	234,703
Cost of Revenues		65,794			58,458			187,914			160,442
Gross profit		29,098			27,385			78,707			74,261
Research and development, net		2,316			2,235			6,479			6,277
Selling, marketing and general and administrative expenses		15,749			16,654			42,607			43,062
Total operating costs and expenses		18,065			18,889			49,086			49,339
Operating income		11,033			8,496			29,621			24,922
Financial expenses, net		(589	)		(622	)		(1,207	)		(828	)
Income before taxes on income		10,444			7,874			28,414			24,094
Taxes on income		2,039			1,380			6,108			4,897
Net income	$	8,405		$	6,494		$	22,306		$	19,197
Net income attributable to redeemable non-controlling interests		(500	)		(1,045	)		(1,061	)		(3,057	)
Net income attributable to non-controlling interests		(820	)		(491	)		(2,570	)		(995	)
Net income attributable to Magic’s shareholders	$	7,085		$	4,958		$	18,675		$	15,145

Net earnings per share attributable to Magic’s shareholders :
Basic	$	0.15		$	0.10		$	0.38		$	0.29
Diluted	$	0.14		$	0.10		$	0.38		$	0.29

Weighted average number of shares used in computing net earnings per share
Basic		49,031			48,897			48,997			48,888
Diluted		49,049			48,991			49,046			48,985

MAGIC SOFTWARE ENTERPRISES LTD.

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

U.S. Dollars in thousands (except per share data)

	Three months ended						Nine months ended
	September 30,						September 30,
	2020			2019			2020			2019

	Unaudited						Unaudited

GAAP gross profit	$	29,098		$	27,385		$	78,707		$	74,261
Amortization of capitalized software and acquired technology		1,284			1,246			3,965			3,679
Amortization of other intangible assets		353			277			889			552
Non-GAAP gross profit	$	30,735		$	28,908		$	83,561		$	78,492


GAAP operating income	$	11,033		$	8,496		$	29,621		$	24,922
Gross profit adjustments		1,637			1,523			4,854			4,231
Amortization of other intangible assets		1,757			2,039			4,335			4,859
Capitalization of software development		(784	)		(876	)		(2,474	)		(3,128	)
Costs related to acquisitions		538			314			1,039			1,294
Increase in valuation of contingent consideration related to acquisitions					255						255
Stock-based compensation		–			–			–			75
Non-GAAP operating income	$	14,181		$	11,751		$	37,375		$	32,508


GAAP net income attributable to Magic’s shareholders	$	7,085		$	4,958		$	18,675		$	15,145
Operating income adjustments		3,148			3,255			7,754			7,586
Expenses attributed to non-controlling interests and redeemable non-controlling interests		(232	)		(109	)		(407	)		(728	)
Changes in unsettled fair value of contingent consideration related to acquisitions		454			–			1,602			–
Deferred taxes on the above items		(1,001	)		(25	)		(695	)		(181	)
Non-GAAP net income attributable to Magic’s shareholders	$	9,454		$	8,079		$	26,929		$	21,822

Non-GAAP basic net earnings per share	$	0.19		$	0.17		$	0.55		$	0.45
Weighted average number of shares used in computing basic net earnings per share		49,031			48,897			48,997			48,888

Non-GAAP diluted net earnings per share	$	0.19		$	0.17		$	0.55		$	0.45
Weighted average number of shares used in computing diluted net earnings per share		49,049			48,991			49,046			48,980

Summary of Non-GAAP Financial Information

U.S. Dollars in thousands (except per share data)

	Three months ended								Nine months ended
	September 30,								September 30,
	2020				2019				2020				2019
	Unaudited				Unaudited				Unaudited				Unaudited

Revenues	$	94,892	100	%	$	85,843	100	%	$	266,621	100	%	$	234,703	100	%
Gross profit		30,735	32.4	%		28,908	33.7	%		83,561	31.3	%		78,492	33.4	%
Operating income		14,181	14.9	%		11,751	13.7	%		37,375	14.0	%		32,508	13.9	%
Net income attributable to Magic’s shareholders		9,454	10.0	%		8,079	9.4	%		26,929	10.1	%		21,822	9.3	%

Basic earnings per share	$	0.19			$	0.17			$	0.55			$	0.45
Diluted earnings per share	$	0.19			$	0.17			$	0.55			$	0.45

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. Dollars in thousands

	For the Nine months ended September 30,
	2020			2019
	Unaudited			Unaudited

Cash flows from operating activities:

Net income	$	22,306		$	19,197
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,096			10,037
Stock-based compensation		–			75
Change in deferred taxes, net		(382	)		(758	)
Amortization of marketable securities premium and accretion of discount		57			147
Net change in operating assets and liabilities:
Trade receivables, net		5,919			6,307
Other long-term and short-term accounts receivable and prepaid expenses		158			2,761
Trade payables		(179	)		(5,540	)
Exchange rate of loans		(44	)		1,712
Accrued expenses and other accounts payable		3,803			(5,608	)
Deferred revenues		(401	)		4,365
Net cash provided by operating activities		41,333			32,695

Cash flows from investing activities:

Capitalized software development costs		(2,474	)		(3,128	)
Purchase of property and equipment		(2,448	)		(1,057	)
Cash paid in conjunction with acquisitions, net of acquired cash		(16,534	)		(20,889	)
Proceeds from maturity and sale of marketable securities		5,429			2,450
Proceeds from short-term bank deposits		5,075			5,127
Investment in marketable securities		–			(202	)
Net cash used in investing activities		(10,952	)		(17,699	)

Cash flows from financing activities:

Proceeds from exercise of options by employees		229			69
Issuance of ordinary shares, net		–			(9	)
Dividend paid		(12,502	)		(14,963	)
Dividend paid to non-controlling interests		(6,408	)		(400	)
Dividend paid to redeemable non-controlling interests		(2,013	)		(2,589	)
Purchase of redeemable non-controlling interest		–			(1,237	)
Purchase of non-controlling interest		(18,016	)		–
Short-term and long-term loans received		9,090			878
Repayment of short-term and long-term loans		(2,811	)		(7,681	)
Net cash used in financing activities		(32,431	)		(25,932	)

Effect of exchange rate changes on cash and cash equivalents		(470	)		699

Change in cash and cash equivalents		(2,520	)		(10,237	)
Cash and cash equivalents at the beginning of the year		81,915			87,126
Cash and cash equivalents at end of the period	$	79,395		$	76,889

November 16, 2020 6:18 am

Manufacturing Industry at High Risk of Severe Impact from COVID-19 Pandemic

Print & publishing, Industrial Equipment, Apparel, and Textile Products among the top 5 most affected sectors

Allentown, PA, Nov. 16, 2020 (GLOBE NEWSWIRE) — The manufacturing industry in the United States is standing at the precipice of severe negative impacts due to COVID-19, according to a new report from the global business intelligence experts, Creditsafe. According to the report, many manufacturers could see a significant decrease in their revenue, which may bring about difficult decisions on how best to navigate these difficult times.

The data shows that the following manufacturing sectors are the most likely to be severely impacted.

Printing and Publishing
Miscellaneous Manufacturing
Industrial Machinery and Equipment
Fabricated Metal Products
Apparel and Other Textile Products

When combined, these industries represent over half a million businesses across the United States, with over 17% of them expected to experience a severe negative impact from the Coronavirus.

“Manufacturing represents a significant amount of revenue, jobs, and businesses within the US,” comments Matthew Debbage, Creditsafe Americas and Asia’s CEO, “Our research and analysis shows that the 10 most affected states could see a decrease $400 billion from the manufacturing industry alone. This type of impact will have long term effects for the entire country.”

Mandatory closures, changes in buyer behavior, disruptions to the supply chain, amongst other factors, are all contributing to the overall risk that the manufacturing industry is facing. In turn, the industry could cause ripples of its own through a loss of employment, decreases in revenue, and notable delays in production.

The pandemic has caused the U.S., and specifically manufacturers, to look to a more localized supply chain and bring several types of critical manufacturing sectors back to U.S. soil. John Boyd, president of Boyd Co., a corporate relocation consulting firm, says, “The pandemic has made it clear that overextended and risky supply chains can no longer be tolerated. The U.S. pharmaceutical and medical devices sectors—now dangerously concentrated in China—will be the first in line to disinvest there and reinvest back in the U.S. Bi-partisan legislation is being crafted in Washington to encourage this reshoring through tax breaks and other incentives.”

Unfortunately, the return to US-based manufacturing will take time and money. The pandemic may impact $ 400 billion in revenue in 2020. The report describes how States such as Nevada and California are the top two most affected regarding manufacturing, according to Creditsafe. Leaders of these states will have to figure out how to help their local manufacturers survive while attracting new businesses to their regions.

The outlook of the manufacturing industry is far from certain; one thing is sure, business, as usual, will no longer be enough, and manufacturers, like so many other industries, must find a way to adapt to an ever-evolving economic landscape.

To learn more about the effects of COVID-19 on the manufacturing industry download the full report for free.

About Creditsafe USA

Creditsafe is the world’s most used supplier of company credit reports. Privately owned and independently minded, Creditsafe is looking to change the way business information is used by providing high-quality data in an easy to use format that everyone in an organization can benefit from.

Creditsafe’s global database is one of the most rapidly expanding in the industry and also one of the most comprehensive. Each day over 500,000 users around the world leverage the company’s database to gather strategic, insightful business information. Creditsafe’s database is updated over a million times a day with information gathered from thousands of sources. In 99.9% of the cases, reports requested by customers are delivered instantly. Over forty percent of Creditsafe’s customers leverage the company’s internationally reporting capabilities.

Attachment

ManufacturingReport front page

Nathan Kolb
Creditsafe
4342297209
[email protected]

November 16, 2020 6:09 am

Ada S. McKinley Community Services Sees Dramatic Increase of 33% in Youth Referrals to Its Foster Care Program; Boosts Efforts to Recruit Foster Parents

Chicago, Illinois, Nov. 16, 2020 (GLOBE NEWSWIRE) — Ada S. McKinley Community Services, one of the largest human service and education providers in Illinois, is seeing a 33 percent increase in the number of youth cases needing foster parents since the start of the COVID-19 pandemic, and is launching a new effort during the Holiday Season to urge eligible people to become foster parents. With the cancellation of face-to-face meetings and concerns about the spread of the Coronavirus, recruiting traditional and specialized foster parents has become more difficult.

“We need loving people to open their hearts and homes to help these children. They are the unseen victims of COVID-19 who’ve faced the trauma of being removed from their homes in the midst of the pandemic,” said Jamal Malone, CEO of Ada S. McKinley Community Services.

“Currently there are not enough licensed foster parents to help the youth who come to us. The foster parents who bring these children into their homes say it’s a rewarding experience to help a child in need,” said Malone.

Malone assures potential foster parents that very extensive COVID-19 precautions are taken before placing children in homes. Ada S. McKinley Community Services also has a unique history for supporting foster children through other programs including Head Start Early Learning Centers and our nationally renowned College Placement Program which has placed over 70,000 youth in more than 400 U.S. colleges and universities.

Sandra Minter is a foster parent who strongly encourages potential foster parents to attend an orientation class. She’s serving an eight-year-old girl with special needs, whom Minter describes as “a delight.”

“My third grader faced emotional challenges when I welcomed her to my home, and they are pretty much manageable. She has brought life back into my life. This child is a joy to be with. It’s rewarding just to know I’m helping somebody who needs help and cannot help themselves. All you need is the heart to do it. It’s not hard at all,” said Minter.

Ada S. McKinley also operates an Emergency Foster Care Shelter on Chicago’s South Side, staffed 24 hours-a-day with professional Foster Parents for emergency placements. The shelter is one of just two emergency shelters in Chicago, and one of only five in Illinois.

Individuals interested in becoming foster parents can learn more by calling the Ada S. McKinley Community Services’ Foster Parent Recruitment Hotline at 773-602-2660 ext. 3243 or attending online orientation classes scheduled for November 18, 2020 at 11 a.m., December 2, 2020 at 11 a.m., January 13, 2021 at 11 a.m.

Those interested in donating to Ada S. McKinley can donate via this LINK.

About Ada S. McKinley Community Services

Ada S. McKinley Community Services is one of Chicago’s largest, most respected and impactful Human Services organizations. Serving more than 7,000 people annually at over 70 program sites in the Chicago metropolitan area, Wisconsin and Indiana, Ada S. McKinley Community Services’ wide-ranging programs fall under the umbrellas of child development and youth, employment and community support, and behavioral health and clinical. The 101-year old nonprofit was founded during the Spanish Flu Pandemic with a mission to serve African American World War I veterans who were denied government services, and to help southern families fleeing to Chicago during the Great Migration. The organization’s mission is to empower, educate and employ people to change lives and strengthen communities.

For more information and updates on how the agency continues to meet the needs of people affected by the COVID-19 pandemic, please visit www.adasmckinley.org and follow us on Facebook, YouTube, LinkedIn and Instagram.

Attachments

Michelle Damico
Michelle Damico Communications
312-423-6627
[email protected]

November 16, 2020 6:08 am

CytoDyn Announces Registration of Trademark for VYROLOGIX in Several Countries

Vyrologix is the proprietary name for leronlimab

VANCOUVER, Washington, Nov. 16, 2020 (GLOBE NEWSWIRE) — CytoDyn Inc. (OTC.QB: CYDY), (“CytoDyn” or the “Company”), a late-stage biotechnology company developing leronlimab (PRO 140), a CCR5 antagonist with the potential for multiple therapeutic indications, today announced that nine of the Company’s trademark applications to register the VYROLOGIX mark have now successfully passed through formal examination.

In summary, the U.S. and E.U. applications have been allowed, applications in Hong Kong, China and Russia have registered, and the Company’s applications in Australia, Israel, New Zealand and Singapore will each proceed to registration once they have passed through the opposition period unopposed.

Vyrologix (pronounced – vie-ro-loj-iks) is the proprietary name for leronlimab and the trademark is now VYROLOGIX. Final approval of Vyrologix as the proprietary name for leronlimab is conditional on FDA approval of the Company’s Biologics License Application and new drug application. Our recently developed stylized trademark and logo are as follows:

A Media Snippet accompanying this announcement is available by clicking on the image or link below:

CytoDyn Inc.: Media Snippet

Nader Pourhassan, Ph.D., President and Chief Executive Officer of CytoDyn, stated, “These multi-national acceptances of our trademark applications further demonstrate our commercial readiness to deliver leronlimab to patients of the world upon regulatory approval. Our team of legal advisors have been working on this important milestone for several months and we have now achieved one of many objectives in several major markets.”

About Coronavirus Disease 2019

CytoDyn completed its Phase 2 clinical trial (CD10) for COVID-19, a double-blinded, randomized clinical trial for mild-to-moderate patients in the U.S. which produced statistically significant results for NEWS2. Enrollment continues in its Phase 2b/3 randomized clinical trial for the severe-to-critically ill COVID-19 population in several hospitals and clinics throughout the U.S., which are identified on the Company’s website under the “Clinical Trial Enrollment” section of the homepage; an interim analysis on the first 195 patients was conducted mid-October and is expected to occur again after enrollment reaches 293 patients.

About Leronlimab (PRO 140)

The FDA has granted a Fast Track designation to CytoDyn for two potential indications of leronlimab for critical illnesses. The first indication is a combination therapy with HAART for HIV-infected patients and the second is for metastatic triple-negative breast cancer. Leronlimab is an investigational humanized IgG4 mAb that blocks CCR5, a cellular receptor that is important in HIV infection, tumor metastases, and other diseases, including NASH. Leronlimab has completed nine clinical trials in over 800 people and met its primary endpoints in a pivotal Phase 3 trial (leronlimab in combination with standard antiretroviral therapies in HIV-infected treatment-experienced patients).

In the setting of HIV/AIDS, leronlimab is a viral-entry inhibitor; it masks CCR5, thus protecting healthy T cells from viral infection by blocking the predominant HIV (R5) subtype from entering those cells. Leronlimab has been the subject of nine clinical trials, each of which demonstrated that leronlimab could significantly reduce or control HIV viral load in humans. The leronlimab antibody appears to be a powerful antiviral agent leading to potentially fewer side effects and less frequent dosing requirements compared with daily drug therapies currently in use.

In the setting of cancer, research has shown that CCR5 may play a role in tumor invasion, metastases, and tumor microenvironment control. Increased CCR5 expression is an indicator of disease status in several cancers. Published studies have shown that blocking CCR5 can reduce tumor metastases in laboratory and animal models of aggressive breast and prostate cancer. Leronlimab reduced human breast cancer metastasis by more than 98% in a murine xenograft model. CytoDyn is, therefore, conducting a Phase 1b/2 human clinical trial in metastatic triple-negative breast cancer and was granted Fast Track designation in May 2019.

The CCR5 receptor appears to play a central role in modulating immune cell trafficking to sites of inflammation. It may be crucial in the development of acute graft-versus-host disease (GvHD) and other inflammatory conditions. Clinical studies by others further support the concept that blocking CCR5 using a chemical inhibitor can reduce the clinical impact of acute GvHD without significantly affecting the engraftment of transplanted bone marrow stem cells. CytoDyn is currently conducting a Phase 2 clinical study with leronlimab to support further the concept that the CCR5 receptor on engrafted cells is critical for the development of acute GvHD, blocking the CCR5 receptor from recognizing specific immune signaling molecules is a viable approach to mitigating acute GvHD. The FDA has granted orphan drug designation to leronlimab for the prevention of GvHD.

About CytoDyn

CytoDyn is a late-stage biotechnology company developing innovative treatments for multiple therapeutic indications based on leronlimab, a novel humanized monoclonal antibody targeting the CCR5 receptor. CCR5 appears to play a critical role in the ability of HIV to enter and infect healthy T-cells. The CCR5 receptor also appears to be implicated in tumor metastasis and immune-mediated illnesses, such as GvHD and NASH.

CytoDyn has successfully completed a Phase 3 pivotal trial with leronlimab in combination with standard antiretroviral therapies in HIV-infected treatment-experienced patients. The FDA met telephonically with Company key personnel and its clinical research organization and provided written responses to the Company’s questions concerning its recent Biologics License Application (“BLA”) for this HIV combination therapy in order to expedite the resubmission of its BLA filing for this indication.

CytoDyn has completed a Phase 3 investigative trial with leronlimab as a once-weekly monotherapy for HIV-infected patients. CytoDyn plans to initiate a registration-directed study of leronlimab monotherapy indication. If successful, it could support a label extension. Clinical results to date from multiple trials have shown that leronlimab can significantly reduce viral burden in people infected with HIV. No drug-related serious site injection reactions reported in about 800 patients treated with leronlimab and no drug-related SAEs reported in patients treated with 700 mg dose of leronlimab. Moreover, a Phase 2b clinical trial demonstrated that leronlimab monotherapy can prevent viral escape in HIV-infected patients; some patients on leronlimab monotherapy have remained virally suppressed for more than six years.

CytoDyn is also conducting a Phase 2 trial to evaluate leronlimab for the prevention of GvHD and a Phase 1b/2 clinical trial with leronlimab in metastatic triple-negative breast cancer. More information is at www.cytodyn.com.

Forward-Looking Statements

This press release contains certain forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believes,” “hopes,” “intends,” “estimates,” “expects,” “projects,” “plans,” “anticipates” and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Forward-looking statements specifically include statements about leronlimab, its ability to have positive health outcomes, the possible results of clinical trials, studies or other programs or ability to continue those programs, the ability to obtain regulatory approval for commercial sales, and the market for actual commercial sales. The Company’s forward-looking statements are not guarantees of performance, and actual results could vary materially from those contained in or expressed by such statements due to risks and uncertainties including: (i) the sufficiency of the Company’s cash position, (ii) the Company’s ability to raise additional capital to fund its operations, (iii) the Company’s ability to meet its debt obligations, if any, (iv) the Company’s ability to enter into partnership or licensing arrangements with third parties, (v) the Company’s ability to identify patients to enroll in its clinical trials in a timely fashion, (vi) the Company’s ability to achieve approval of a marketable product, (vii) the design, implementation and conduct of the Company’s clinical trials, (viii) the results of the Company’s clinical trials, including the possibility of unfavorable clinical trial results, (ix) the market for, and marketability of, any product that is approved, (x) the existence or development of vaccines, drugs, or other treatments that are viewed by medical professionals or patients as superior to the Company’s products, (xi) regulatory initiatives, compliance with governmental regulations and the regulatory approval process, (xii) general economic and business conditions, (xiii) changes in foreign, political, and social conditions, and (xiv) various other matters, many of which are beyond the Company’s control. The Company urges investors to consider specifically the various risk factors identified in its most recent Form 10-K, and any risk factors or cautionary statements included in any subsequent Form 10-Q or Form 8-K, filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to update any forward-looking statements to take into account events or circumstances that occur after the date of this press release.

CYTODYN CONTACTS

Investors:
Michael Mulholland
Office: 360.980.8524, ext. 102
[email protected]

November 16, 2020 6:07 am

AIR Worldwide Provides Annual Global View of Risk

Report Highlights Protection Gap When Disaster Strikes

Boston, Nov. 16, 2020 (GLOBE NEWSWIRE) — Catastrophe modeling firm AIR Worldwide (AIR) today released its 2020 Global Modeled Catastrophe Losses report, detailing key loss metrics from AIR’s global industry exceedance probability (EP) curve. Based on the report, AIR estimates that the global modeled insured average annual loss from catastrophes worldwide is nearly USD 100 billion. The 1 percent aggregate exceedance probability insured loss (or the 100-year return period loss) is nearly USD 301 billion. The 2020 report derives its loss metrics from the most current suite of global property and crop models from AIR, including new models and updates released during 2020 as well as databases of property values for more than 110 countries; the report excludes losses from AIR’s pandemic, cyber, and casualty models. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.

The global aggregate average annual loss (AAL) and exceedance probability loss metrics for 2020 reflect changes in risk based on AIR’s annual review of industry insured values around the world and includes the impact of enhancements to the AIR Earthquake Model for Australia, AIR’s Earthquake and Tropical Cyclone Models for the Caribbean, and updates to the Hurricane and Inland Flood Models for the United States.

“For regions and perils covered by catastrophe models, the protection gap represents not only potential business growth opportunities for the insurance industry to offer essential protection to vulnerable home- and business-owners, but a responsibility to act,” said Bill Churney, president at AIR Worldwide. “Understanding the protection gap can also help governments assess the risks to their citizens and critical infrastructure, and develop risk-informed emergency management, hazard mitigation, and public risk financing strategies to enhance global resilience and reduce the ultimate costs from catastrophic events.”

The report provides both global insured and insurable loss estimates based on AIR’s global suite of models; the difference between covered (insured) and eligible (insurable) exposures suggests areas of potential profitable growth in markets already identified as vulnerable to catastrophic events. Examination of economic and insured losses reveals how wide the protection gap is and how sizable losses can be for societies following a devastating catastrophe.
The year 2020 opened with the most powerful earthquake Puerto Rico had experienced since 1918—the last time the island updated its earthquake preparedness plan. Also in January, numerous bushfires continued to burn across Australia. Since the second half of 2019, the fires had scorched more than 10 million hectares (~25 million acres).

In June, one of the costliest natural disasters ever in Canada struck on June 13: the Calgary hailstorm. August brought the Complex Fire, which became the largest wildfire in California’s history and the first-ever “gigafire,” so called because it burned more than 1 million acres. On August 10, a derecho caused widespread catastrophic damage in the Midwest, bringing heavy rainfall, hurricane-force winds as well as significant hail in some locations.

The Atlantic hurricane season has brought record-breaking number of named storms impacting the entire coastline from eastern Texas near the Louisiana border to the western Florida Panhandle.

“The ability for the global (re)insurance industry, financial institutions, governments, and non-governmental organizations to prepare for large losses before they occur is critical to continued solvency and resilience,” said Rob Newbold, executive vice president at AIR Worldwide. “With the insight provided by AIR’s global suite of models, companies can pursue profitable expansion in a market that is ever-more connected, and amid regulatory environments that are increasingly rigorous. These holistic analytics can give insurers and reinsurers greater confidence that the risk they’ve assumed is risk they can afford to take.”

Download the 2020Global Modeled Catastrophe Losses report here: https://airww.co/GlobalEP2020

About AIR Worldwide

AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, supply chain disruptions, terrorism, pandemics, casualty catastrophes, and cyber incidents. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, longevity modeling, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com. For more information about Verisk, a leading data analytics provider serving customers in insurance, energy and specialized markets, and financial services, please visit www.verisk.com.

###

For more information, contact:
Kevin Long
AIR Worldwide
01-617-267-6645
[email protected]

November 16, 2020 6:05 am

China Yuchai Announces Selected Unaudited Data for the Third Quarter of 2020

PR Newswire

SINGAPORE, Nov. 16, 2020 /PRNewswire/ — China Yuchai International Limited (NYSE: CYD) (“China Yuchai” or the “Company”), a leading manufacturer and distributor of engines for on- and off-road applications in China through its main operating subsidiary, Guangxi Yuchai Machinery Company Limited (“GYMCL”), announced today selected preliminary unaudited data for the third quarter and the first nine months ended September 30, 2020 and 2019. The financial information presented herein is reported using International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

China Yuchai has previously announced that it will only announce six month and annual financial results in the future. However, the Company is announcing these selected preliminary third quarter and nine month results to provide investors with a timely update, giving consideration to the business uncertainty caused by the impact of the COVID-19 pandemic.

Three Months Ended September 30,	2020	2019
Revenue	RMB 5.4 Billion	RMB 3.3 Billion
Unit Sales	118,488	70,140
Net earnings attributable to China Yuchai’s shareholders	RMB 108.4 Million	RMB 50.3 Million

First Nine Months Ended September 30,	2020	2019
Revenue	RMB 15.4 Billion	RMB 12.3 Billion
Unit Sales	331,670	281,499
Net earnings attributable to China Yuchai’s shareholders	RMB 414.1 Million	RMB 395.3 Million

About China Yuchai International

China Yuchai International Limited, through its subsidiary, GYMCL, engages in the manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications in China. GYMCL also produces diesel power generators. The engines produced by GYMCL range from diesel to natural gas and hybrid engines. Through its regional sales offices and authorized customer service centers, GYMCL distributes its engines directly to auto OEMs and retailers and provides maintenance and retrofitting services throughout China. Founded in 1951, GYMCL has established a reputable brand name, strong research and development team and significant market share in China with high-quality products and reliable after-sales support. In 2019, GYMCL sold 376,148 engines and is recognized as a leading manufacturer and distributor of engines in China. For more information, please visit http://www.cyilimited.com.

Safe Harbor Statement

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. China Yuchai cautions that this data involves risks and uncertainties, and actual full results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China including those discussed in China Yuchai’s Form 20-Fs under the headings “Risk Factors”, “Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. Among others, if the COVID-19 pandemic is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected due to a deteriorating market for automotive sales, an economic slowdown in China and abroad, a potential weakening of the financial condition of our customers, or other factors that we cannot foresee. Recent performance may not be indicative of future performance. This data is applicable only as of the date it is made and China Yuchai specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

For more information:

Investor Relations
Kevin Theiss
Tel: +1-212-521-4050
Email: [email protected]

View original content:http://www.prnewswire.com/news-releases/china-yuchai-announces-selected-unaudited-data-for-the-third-quarter-of-2020-301173479.html

SOURCE China Yuchai International Limited

November 16, 2020 6:03 am

Medley Management Inc. Reports Third Quarter 2020 Results

PR Newswire

NEW YORK, Nov. 16, 2020 /PRNewswire/ — Medley Management Inc. (NYSE: MDLY) (“MDLY” or the “Company”) today reported its financial results for its third quarter ended September 30, 2020. All share and per share results reflect the 1-for-10 reverse stock split which was effective on October 30, 2020.

Summary

Fee earning assets under management were $1.7 billion as of September 30, 2020
Total assets under management were $3.4 billion as of September 30, 2020
Total revenues were $8.3 million for the three months ended September 30, 2020 and $24.8 million for the nine months ended September 30, 2020
U.S. GAAP net loss per share attributable to Medley Management Inc. was $0.19 for Q3 2020
Core Net Loss Per Share was $0.16 for Q3 2020

Results of Operations for the Three Months Ended September 30, 2020

Total revenues were $8.3 million for the three months ended September 30, 2020 compared to $11.5 million for the same period in 2019. Revenues consisted of $7.9 million of management fees and other revenue and $0.4 million of investment income. The decrease in total revenues was due primarily to lower base management fees as a result of a decrease in fee earning assets under management, which was mainly driven by a reduction in leverage and change in portfolio valuations.

Total expenses from operations were $7.6 million for the three months ended September 30, 2020 compared to $12.5 million for the same period in 2019. The variance was attributed to a $3.1 million decrease in compensation and benefits expense and a$1.8 million decrease in general, administrative and other expenses. The decrease in compensation and benefits expense was primarily attributed to a decline in average headcount and decline in stock compensation expense. The decrease in other expenses was due primarily to a decrease in professional fees, primarily driven by lower costs associated with our terminated merger with Sierra Income Corporation (“Sierra”). General and administrative expenses also declined as a result of headcount reduction, employees working remotely and restrictions on travel and other expenses due to the impact of the continuing COVID-19 pandemic.

Total other expenses, net were $2.7 million for the three months ended September 30, 2020 and consisted of $2.5 million of interest expense and $0.2 million of other expenses. Total other expenses, net were $0.9 million for the three months ended September 30, 2019 and consisted of $2.9 million of interest expense, $1.8 million of other income and $0.2 million of dividend income. Of the $1.8 million of other income, $2.0 million relates to an unrealized gain on shares held of MCC. During the three months ended September 30, 2020, we did not hold any shares of MCC, resulting in no unrealized gains or losses recorded in the period.

Net loss attributable to Medley Management Inc. and non-controlling interests in Medley LLC was $1.7 million for the three months ended September 30, 2020 compared to a net loss of $3.3 million for the same period in 2019. Medley Management Inc.’s net loss per share was $0.19 for the three months ended September 30, 2020 compared to a net loss per share of $0.86 for the same period in 2019.

Pre-Tax Core Net Loss was $1.0 million for the three months ended September 30, 2020 compared to $0.9 million for the same period in 2019. Core Net Loss Per Share was $0.16 for the three months ended September 30, 2020, compared to $0.18 for the same period in 2019. Core EBITDA was $1.7 million for the three months ended September 30, 2020 compared to $2.1 million for the same period in 2019.

Results of Operations for the Nine Months Ended September 30, 2020

Total revenues were $24.8 million for the nine months ended September 30, 2020 compared to $38.2 million for the same period in 2019. Revenues consisted of $26.1 million of management fees and other revenue and $1.3 million of investment loss. The decrease was due primarily to lower base management fees as a result of a decrease in fee earning assets under management, which was mainly driven by a decline in portfolio valuations, a reduction in leverage, and a decline in investment income due to equity losses and reversal of previously recorded carried interest.

Total expenses from operations were $28.8 million for the nine months ended September 30, 2020 compared to $34.8 million for the same period in 2019. The decrease was due primarily to a decline in compensation and benefits as a result of lower average headcount and discretionary bonuses, offset in part by an increase in professional fees. Included in total expenses are costs associated with our terminated merger of $3.5 million for each of the nine months ended September 30, 2020 and 2019.

Total other expenses, net were $13.4 million for the nine months ended September 30, 2020 and consisted of $8.0 million of interest expense and $5.6 million of other expenses, offset in part by $0.1 million of dividend income. Total other expenses, net were $8.3 million for the nine months ended September 30, 2019 and consisted of $8.6 million of interest expense, $0.6 million of other expenses, offset by $0.9 million of dividend income. The increase of $5.6 million in other expenses was due primarily to the revaluation of our revenue share payable.

Net loss attributable to Medley Management Inc. and non-controlling interests in Medley LLC was $15.9 million for the nine months ended September 30, 2020 compared to $4.8 million for the same period in 2019. Medley Management Inc.’s net loss per share was $3.39 for the nine months ended September 30, 2020 compared to $1.32 for the same period in 2019.

Pre-Tax Core Net Income (Loss) was $(11.7) million for the nine months ended September 30, 2020 compared to $0.7 million for the same period in 2019. Core Net Loss Per Share was $1.88 for the nine months ended September 30, 2020, compared to Core Net Income Per Share of $0.13 for the same period in 2019. Core EBITDA was $(3.3) million for the nine months ended September 30, 2020 compared to $9.8 million for the same period in 2019.

Investor Contact:

Sam Anderson

Head of Capital Markets & Risk Management
Medley Management Inc.
212-759-0777

Media Contact:

Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co. LP
212-257-4170

Key Performance Indicators:

	For the Three Months Ended September 30, (unaudited)						For the Nine Months Ended September 30, (unaudited)
	2020			2019			2020			2019

	(dollars in thousands, except AUM, share and per share amounts)
Consolidated Financial Data:
Pre-Tax (Loss) Income	$	(2,015)		$	(1,881)		$	(17,431)		$	(4,989)
Net loss attributable to Medley Management Inc. and non-controlling interests in Medley LLC	$	(1,696)		$	(3,312)		$	(15,854)		$	(4,848)
Net loss per Class A common stock	$	(0.19)		$	(0.86)		$	(3.39)		$	(1.32)
Net Income Margin ⁽¹⁾	(20.4)		%	(28.7)		%	(64.0)		%	(12.7)		%
Weighted average shares – Basic and Diluted	639,216			589,933			631,620			583,449

Non-GAAP Data:
Pre-Tax Core Net Income (Loss) ⁽²⁾	$	(1,038)		$	(926)		$	(11,748)		$	656
Core Net Income (Loss) ⁽²⁾	$	(837)		$	(987)		$	(10,749)		$	378
Core EBITDA ⁽³⁾	$	1,677		$	2,123		$	(3,259)		$	9,830
Core Net Income (Loss) Per Share ⁽⁴⁾	$	(0.16)		$	(0.18)		$	(1.88)		$	0.13
Core Net Income Margin ⁽⁵⁾	(7.0)		%	(5.4)		%	(26.5)		%	1.2		%
Pro-Forma Weighted Average Shares Outstanding ⁽⁶⁾	3,560,303			3,450,758			3,495,108			3,333,909

Other Data (at period end, in millions):
AUM	$	3,408		$	4,271		$	3,408		$	4,271
Fee Earning AUM	$	1,670		$	2,320		$	1,670		$	2,320

(1)	Net Income Margin equals Net income (loss) attributable to Medley Management Inc. and non-controlling interests in Medley LLC divided by total revenue.
(2)	Pre-Tax Core Net Income is calculated as Core Net Income before income taxes. Core Net Income reflects net income (loss) attributable to Medley Management Inc. and non-controlling interests in Medley LLC adjusted to exclude reimbursable expenses associated with the launch of funds, stock-based compensation associated with restricted stock units that were granted in connection with our IPO, non-recurring expenses associated with strategic initiatives, such as our terminated merger with Sierra, other non-core items and the income tax expense associated with the foregoing adjustments. Please refer to the reconciliation of Core Net Income to Net income (loss) attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Exhibit B for additional details.
(3)	Core EBITDA is calculated as Core Net Income before interest expense, income taxes, depreciation and amortization. Please refer to the reconciliation of Core EBITDA to Net income (loss) attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Exhibit B for additional details.
(4)	Core Net Income Per Share is calculated as Core Net Income, adjusted for the income tax effect of assuming that all of our pre-tax earnings were subject to federal, state and local corporate income taxes, divided by Pro-Forma Weighted Average Shares Outstanding (as defined below). We assume that all of our pre-tax earnings are subject to federal, state and local corporate income taxes. In determining corporate income taxes, we used a combined effective corporate tax rate of 44.0% and 33.0% for 2020 and 2019, respectively. The rate differential in 2020 from 2019 is attributed to the tax benefit from the CARES Act which allows for the current year carryback of net operating losses to years in which the Federal rate was 34.0% rather than the current rate of 21.0%. Please refer to the calculation of Core Net Income Per Share in Exhibit C for additional details.
(5)	Core Net Income Margin equals Core Net Income Per Share divided by total revenue per share.
(6)	The calculation of Pro-Forma Weighted Average Shares Outstanding assumes the conversion by the pre-IPO holders of up to 2,673,516 and 2,631,658 vested and unvested LLC Units for 2,673,516 and 2,631,658 shares of Class A common stock at the beginning of each of the periods ended 2020 and 2019, respectively, as well as the vesting of the weighted average number of restricted stock units granted to employees and directors during each of the periods presented.

Fee Earning AUM

The table below presents the quarter-to-date roll forward of our total fee earning AUM:

							% of Fee Earning AUM
	Permanent Capital Vehicles		Long-dated Private Funds and SMAs		Total		Permanent Capital Vehicles		Long-dated Private Funds and SMAs

	(Dollars in millions)
Ending balance, June 30, 2020	$	983	$	674	$	1,657	59	%	41	%
Commitments	—		25		25
Capital reduction	(14)		—		(14)
Distributions	—		(14)		(14)
Change in fund value	26		(10)		16
Ending balance, September 30, 2020	$	995	$	675	$	1,670	60	%	40	%

Total fee earning AUM increased by $13.0 million, or 0.8%, to $1.7 billion as of September 30, 2020 compared to June 30,
2020, due primarily to permanent reductions in leverage during the period.

The table below presents the year-to-date roll forward of our total fee earning AUM:

							% of Fee Earning AUM
	Permanent Capital Vehicles		Long-dated Private Funds and SMAs		Total		Permanent Capital Vehicles		Long-dated Private Funds and SMAs

	(Dollars in millions)
Ending balance, December 31, 2019	$	1,361	$	777	$	2,138	64	%	36	%
Commitments	(91)		59		(32)
Capital reduction	(106)		—		(106)
Distributions	(21)		(90)		(111)
Change in fund value	(148)		(71)		(219)
Ending balance, September 30, 2020	$	995	$	675	$	1,670	60	%	40	%

Total fee earning AUM decreased by $468.0 million, or 22%, to $1.7 billion as of September 30, 2020 compared to
December 31, 2019, due primarily to changes in fund value, distributions and debt repayments representing capital reductions.

About Medley

Medley is an alternative asset management firm offering yield solutions to retail and institutional investors. Medley’s national direct origination franchise is a premier provider of capital to the middle market in the U.S. Medley has $3.4 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE:MCC) (TASE:MCC) and Sierra Income Corporation, and several private investment vehicles. Over the past 18 years, Medley has provided capital to over 400 companies across 35 industries in North America.⁽¹⁾

Medley LLC, the operating company of Medley Management Inc., has outstanding bonds which trade on the NYSE under the symbols (NYSE:MDLX) and (NYSE:MDLQ).

Forward-Looking Statements

Statements included herein may contain “forward-looking statements.” Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission, including those described in the section “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Except as required by law, the Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements made herein speak only as of the date of this press release.

Non-GAAP Financial Measures

We make reference to certain non-GAAP financial measures in this press release. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP is contained in the exhibits attached hereto.

Non-GAAP measures used by management include Pre-Tax Core Net Income (Loss), Core Net Income (Loss), Core EBITDA, Core Net Income (Loss) Per Share and Core Net Income Margin. Management believes that these measures provide analysts, investors and management with helpful information regarding our underlying operating performance and our business, as they remove the impact of items management believes are not reflective of underlying operating performance. These non-GAAP measures are also used by management for planning purposes, including the preparation of internal budgets; and for evaluating the effectiveness of operational strategies. Additionally, we believe these non-GAAP measures provide another tool for investors to use in comparing our results with other companies in our industry, many of whom use similar non-GAAP measures. There are limitations associated with the use of non-GAAP financial measures as compared to the use of the most directly comparable U.S. GAAP financial measure and these measures supplement and should be considered in addition to and not in lieu of the results of operations discussed below. Furthermore, such measures may be inconsistent with measures presented by other companies.

This press release does not constitute an offer for any Medley fund.

Available Information

Medley Management Inc.’s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available at www.mdly.com.

⁽¹⁾Medley Management Inc. is the parent company of Medley LLC and several registered investment advisors (collectively, “Medley”). Assets under management refers to assets of our funds, which represents the sum of the net asset value of such funds, the drawn and undrawn debt (at the fund level, including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). Assets under management are as of September 30, 2020.

Exhibit A. Consolidated Statements of Operations of Medley Management Inc.

	For the Three Months Ended September 30, (unaudited)				For the Nine Months Ended September 30, (unaudited)
	2020		2019		2020		2019

	(in thousands, except share and per share data)
Revenues
Management fees	$	6,275	$	9,607	$	19,807	$	30,728
Other revenues and fees	1,635		2,621		6,269		7,731
Investment income (loss):
Carried interest	(3)		(142)		83		651
Other investment income (loss), net	419		(550)		(1,384)		(922)
Total Revenues	8,326		11,536		24,775		38,188

Expenses
Compensation and benefits	4,040		7,090		17,119		22,069
General, administrative and other expenses	3,599		5,403		11,682		12,763
Total Expenses	7,639		12,493		28,801		34,832

Other Income (Expense)
Dividend income	—		182		137		942
Interest expense	(2,535)		(2,874)		(7,950)		(8,646)
Other (expenses) income, net	(167)		1,768		(5,592)		(641)
Total other expenses, net	(2,702)		(924)		(13,405)		(8,345)
Loss before income taxes	(2,015)		(1,881)		(17,431)		(4,989)
Benefit from income taxes	(320)		(188)		(1,637)		(281)
Net Loss	(1,695)		(1,693)		(15,794)		(4,708)
Net income attributable to redeemable non-controlling interests and non-controlling interests in consolidated subsidiaries	1		1,619		60		140
Net loss attributable to non-controlling interests in Medley LLC	(1,574)		(2,796)		(13,788)		(4,078)
Net Loss Attributable to Medley Management Inc.	$	(122)	$	(516)	$	(2,066)	$	(770)

Net Loss Per Share of Class A Common Stock:
Basic	$	(0.19)	$	(0.86)	$	(3.39)	$	(1.32)
Diluted	$	(0.19)	$	(0.86)	$	(3.39)	$	(1.32)
Weighted average shares outstanding – Basic and Diluted	639,216		589,933		631,620		583,449

Exhibit B. Reconciliation of Core Net Income (Loss) and Core EBITDA to Net Income (Loss) Attributable to Medley Management Inc. and Non-controlling Interests in Medley LLC

	For the Three Months Ended September 30, (unaudited)				For the Nine Months Ended September 30, (unaudited)
	2020		2019		2020		2019

	(in thousands)
Net loss attributable to Medley Management Inc.	$	(122)	$	(516)	$	(2,066)	$	(770)
Net loss attributable to non-controlling interests in Medley LLC	(1,574)		(2,796)		(13,788)		(4,078)
Net loss attributable to Medley Management Inc. and non- controlling interests in Medley LLC	$	(1,696)	$	(3,312)	$	(15,854)	$	(4,848)
Reimbursable fund startup expenses	—		22		1		283
IPO date award stock-based compensation	—		282		—		555
Expenses associated with strategic initiatives	992		2,070		3,519		3,486
Other non-core items:
Severance expense	(14)		200		2,103		1,462
Other	—		—		120		—
Income tax expense on adjustments	(119)		(249)		(638)		(560)
Core Net Income (Loss)	$	(837)	$	(987)	$	(10,749)	$	378
Interest expense	2,535		2,874		7,950		8,647
Income taxes	(201)		61		(999)		278
Depreciation and amortization	180		175		539		527
Core EBITDA	$	1,677	$	2,123	$	(3,259)	$	9,830

Exhibit C. Calculation of Core Net Income (Loss) Per Share

	For the Three Months Ended September 30, (unaudited)				For the Nine Months Ended September 30, (unaudited)
	2020		2019		2020		2019

	(in thousands, except share and per share amounts)
Numerator
Core Net Income (Loss)	$	(837)	$	(987)	$	(10,749)	$	378
Add: Income taxes	(201)		61		(999)		278
Pre-Tax Core Net Income (loss)	$	(1,038)	$	(926)	$	(11,748)	$	656

Denominator
Class A common stock	639,216		589,933		631,620		583,449
Conversion of LLC Units and restricted LLC Units to Class A common stock	2,673,516		2,631,664		2,655,031		2,538,974
Restricted Stock Units	247,571		229,161		208,457		211,486
Pro-Forma Weighted Average Shares Outstanding ⁽¹⁾	3,560,303		3,450,758		3,495,108		3,333,909
Pre-Tax Core Net Income (Loss) Per Share	$	(0.29)	$	(0.27)	$	(3.36)	$	0.20
Less: corporate income taxes per share ⁽²⁾	0.13		0.09		1.48		(0.07)
Core Net Income (Loss) Per Share	$	(0.16)	$	(0.18)	$	(1.88)	$	0.13

(1)

The calculation of Pro-Forma Weighted Average Shares Outstanding assumes the conversion by the pre-IPO holders of up
to 2,673,516 and 2,631,658 vested and unvested LLC Units for 2,673,516 and 2,631,658 shares of Class A common stock at
the beginning of each of the periods ended 2020 and 2019, respectively, as well as the vesting of the weighted average
number of restricted stock units granted to employees and directors during each of the periods presented.

(2)

Assumes that all of our pre-tax earnings are subject to federal, state and local corporate income taxes. In determining
corporate income taxes, we used a combined effective corporate tax rate of 44.0% and 33.0% for 2020 and 2019, respectively.
The rate differential in 2020 from 2019 is attributed to the tax benefit from the CARES Act which allows for the current year
carryback of net operating losses to years in which the Federal rate was 34.0% rather than the current rate of 21.0%.

Exhibit D. Reconciliation of Net Income Margin to Core Net Income Margin

	For the Three Months Ended September 30, (unaudited)				For the Nine Months Ended September 30, (unaudited)
	2020		2019		2020		2019

Net Income Margin	(20.4)	%	(28.7)	%	(64.0)	%	(12.7)	%
Reimbursable fund startup expenses ⁽¹⁾	—	%	0.2	%	—	%	0.7	%
IPO date award stock-based compensation ⁽¹⁾	—	%	2.4	%	—	%	1.5	%
Expenses associated with strategic initiatives ⁽¹⁾	11.9	%	17.9	%	14.2	%	9.1	%
Other non-core items: ⁽¹⁾
Severance expense	(0.2)	%	1.7	%	8.5	%	3.8	%
Other	—	%	—	%	0.5	%	—	%
Provision for income taxes ⁽¹⁾	(3.8)	%	(1.6)	%	(6.6)	%	(0.7)	%
Corporate income taxes ⁽²⁾	5.5	%	2.7	%	20.9	%	(0.6)	%
Core Net Income Margin	(7.0)	%	(5.4)	%	(26.5)	%	1.2	%

(1)

Adjustments to Net income (loss) attributable to Medley Management Inc. and non-controlling interests in Medley LLC to
calculate Core Net Income are presented as a percentage of total revenue.

(2)

Assumes that all our pre-tax earnings, including adjustments above, are subject to federal, state and local corporate income
taxes. In determining corporate income taxes, we used a combined effective corporate tax rate of 44.0% and 33.0% for the
three and nine months ended September 30, 2020 and 2019, respectively. The rate differential in 2020 from 2019 is attributed
to the tax benefit from the CARES Act which allows for the current year carryback of net operating losses to years in which
the Federal rate was 34.0% rather than the current rate of 21.0%.

Exhibit E. Consolidated Balance Sheets of Medley Management Inc.

	As of
	September 30, 2020 (unaudited)		December 31, 2019

	(in thousands)
Assets
Cash and cash equivalents	$	6,048	$	10,558
Investments, at fair value	9,637		13,287
Management fees receivable	5,799		8,104
Right-of-use assets under operating leases	5,206		6,564
Other assets	12,021		10,283
Total Assets	$	38,711	$	48,796

Liabilities, Redeemable Non-controlling Interests and Equity
Liabilities
Senior unsecured debt, net	$	118,958	$	118,382
Loans payable, net	10,000		10,000
Due to former minority interest holder, net	7,233		8,145
Operating lease liabilities	7,420		8,267
Accounts payable, accrued expenses and other liabilities	27,080		22,835
Total Liabilities	170,691		167,629

Redeemable Non-controlling Interests	—		(748)

Equity
Class A common stock	7		6
Class B common stock	—		—
Additional paid in capital	16,657		13,835
Accumulated deficit	(24,796)		(22,960)
Total stockholders’ deficit, Medley Management Inc.	(8,132)		(9,119)
Non-controlling interests in consolidated subsidiaries	(477)		(391)
Non-controlling interests in Medley LLC	(123,371)		(108,575)
Total Deficit	(131,980)		(118,085)
Total Liabilities, Redeemable Non-controlling Interests and Equity	$	38,711	$	48,796

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SOURCE Medley Management Inc.