Market Newsdesk

Arco Reports Third Quarter 2020 Financial Results

Arco delivered 2020 ACV in line with contracted value, confirms margin guidance for 2020 FY and expects solid growth between 20% and 25% for 2021 ACV

SÃO PAULO–(BUSINESS WIRE)–Arco Platform Limited, or Arco (Nasdaq: ARCE), today reported financial and operating results for the third quarter of 2020 ended September 30^th, 2020.

Letter from Ari de Sá Cavalcante Neto, Arco’s founder and CEO

The year of 2020 has been a testament to the resilience of our business, and we have planted seeds that will help us grow our company for years to come. As technology took a leading role in education overnight, we were able to quickly evolve to better serve existing clients and attract prospects, as well as deliver strong financial and operational results. As student, parent and educator habits changed drastically, we are excited at the opportunity to continue to disrupt our sector and shape the future of education.

While mostly working remotely from the safety of their homes, our team has delivered strong results during the first nine months of 2020. Arco has recorded 117% YoY revenue growth for the period, 148% increase in adjusted EBITDA and confirms its adjusted EBITDA guidance of 35.5-37.5% for the 2020 fiscal year. We have achieved these results while continuing to invest in our team, our solutions and our brand equity, the ingredients of our virtuous cycle focused on long-term growth. During this period, there have been no layoffs or pay-cuts; on the contrary, we have continued to grow our team by recruiting talented professionals in technology, pedagogical, frontline and management roles.

The accelerated evolution of our solutions and go-to-market strategy during the period has been a source of pride for us. Within days of the COVID-19 outbreak, we offered our partner schools a portfolio of technology tools, digital content and remote pedagogical support that helped them to continue providing high-quality education to students and perceived value to parents. As a result, we are experiencing high levels of user engagement and customer retention and satisfaction. In our business, trust and reputation are determinant to long term success, and we believe these results will drive growth for years to come.

Additionally, the change in our go-to-market strategy from in-person to digital-first has delivered a record number of leads at a lower cost per lead than past commercial cycles. Since September, when schools started to reopen and our sales team resumed travel, we have seen a strong rebound in new school intake. We expect to deliver solid annual contract value (ACV) growth of 20 to 25% for the 2021 school year.

The evolution in the way we operate and serve our clients has further reinforced our brand reputation, quality and distribution. While some companies perished and other benefited only in the short term, Arco emerges stronger with brighter long-term perspectives. With a 4% share in a R$25 billion fragmented market in urgent need of high-quality education, today continues to be day 1 for us. We thank our partner investors for their support and guidance during this period and Arco’s team for their relentless pursuit of excellence and value to our partner schools.

Key Messages

Resilient business leading to strong financial results

• Delivered 2020 ACV in line with contracted value: 4% gap to contracted value as temporary schools closure due to COVID-19 resulted in minor student dropout
• 3Q20 net revenues of R$208.7 million, 196% above 3Q19; 9M20 net revenues of R$ 705.2 million, 117% above 9M19
• 9M20 adjusted EBITDA grew 148% versus 2019, resulting in a margin of 36.2%
• On track to deliver FY adjusted EBITDA guidance of 35.5-37.5%

Solid growth expected for 2021 cycle

• Guidance for 2021 ACV growth between 20% and 25%, with a 2021 ACV guidance of R$1,150 to R$1,200 million
• Broader guidance range due to additional growth potential from delayed sales cycle
• Conservative assumptions for student dropout recovery

Bright long-term perspectives from stronger winning factors

• Accelerated product evolution delivered 3x user engagement and leading NPS levels
• Outstanding retention rates and healthy price increases
• Revamped go-to-market strategy led to record pipeline of leads
• As salesforce returned to the field, new school intake sharply rebounded

Exciting organic and M&A opportunities ahead to continue capturing large total addressable market

• Still scratching the surface of a large and fragmented market
• Robust M&A pipeline in all target verticals
• Positivo acceleration demonstrates our repeatable model of acquiring & improving
• Closing of Escola da Inteligência¹ unlocks new vertical for Arco, the high-growth social-emotional learning

Conference Call Information

Arco will discuss its third quarter 2020 results today, November 30^th, 2020, via a conference call at 4:30 p.m. Eastern Time. To access the call, please dial: +1 (412) 717-9627, +1 (844) 204-8942 or +55 (11) 3181 8565. An audio replay of the call will be available through December 7^th, 2020 by dialing +55 (11) 3193 1012 and entering access code 1608874#. A webcast of the call will be available on the Investor Relations section of the Company’s website at https://investor.arcoplatform.com/.

<sup>___________________

1</sup> Escola da Inteligência transaction is subject to customary closing conditions, including antitrust and other regulatory approvals.

Information related to COVID-19 pandemic

As of September 30th, 2020, there was a total impact of R$10,915 on the Company’s condensed consolidated financial statements related to the COVID-19 pandemic mainly related to: (i) revision of the Company’s estimated credit losses from its trade receivables based on expected increases in financial default and in unemployment rates in Brazil for the next months, which resulted in an increase of R$4,943 thousand, (ii) the Company incurred additional expenses of R$5,685 related to IT, network infrastructure and an integrated teaching platform, as well as expenses to maintain protective measures.

The future impact of the COVID-19 pandemic on an ongoing basis is still uncertain, and the Company’s management team will continue to closely monitor and assess the potential impacts it may have on the Company’s business, its financial performance and position.

For full disclosure regarding the COVID-19 discussion, please refer to the September 30th, 2020 condensed consolidated financial statements submitted to the Securities and Exchange Commission on Form 6-K.

About Arco Platform Limited (Nasdaq: ARCE)

Arco has empowered hundreds of thousands of students to rewrite their futures through education. Our data-driven learning, interactive proprietary content, and scalable curriculum allows students to personalize their learning experience with high-quality solutions while enabling schools to provide a broader approach to education.

Forward-Looking Statements

This press release contains forward-looking statements as pertains to Arco Platform Limited (the “Company”) within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the Company’s expectations or predictions of future financial or business performance conditions. The achievement or success of the matters covered by statements herein involves substantial known and unknown risks, uncertainties, and assumptions, including with respect to the COVID-19 pandemic. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward looking statements are made based on the Company’s current expectations and projections relating to its financial conditions, result of operations, plans, objectives, future performance and business, and these statements are not guarantees of future performance.

Statements which herein address activities, events, conditions or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. You can generally identify forward-looking statements by the use of forward-looking terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “evaluate,” “expect,” “explore,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “view,” or “will,” or the negative thereof or other variations thereon or comparable terminology. All statements other than statements of historical fact could be deemed forward looking, including risks and uncertainties related to statements about our competition; our ability to attract, upsell and retain customers; our ability to increase the price of our solutions; our ability to expand our sales and marketing capabilities; general market, political, economic, and business conditions in Brazil or abroad; and our financial targets which include revenue, share count and other IFRS measures, as well as non-IFRS financial measures including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, Free Cash Flow and Adjusted Free Cash Flow.

Forward-looking statements represent the Company management’s beliefs and assumptions only as of the date such statements are made, and the Company undertakes no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Further information on these and other factors that could affect the Company’s financial results is included in filings the Company makes with the Securities and Exchange Commission from time to time, including the section titled “Risk Factors” in the Company’s most recent Forms 20-F and 6-K. These documents are available on the SEC Filings section of the Investor Relations section of the Company’s website at: https://investor.arcoplatform.com/

Key Business Metrics

ACV Bookings: we define ACV Bookings as the revenue we would contractually expect to recognize from a partner school in each school year pursuant to the terms of our contract with such partner school, assuming no further additions or reductions in the number of enrolled students that will access our content at such partner school in such school year (we define “school year” for purposes of calculation of ACV Bookings as the twelve-month period starting in October of the previous year to September of the mentioned current year). We calculate ACV Bookings by multiplying the number of enrolled students at each partner school with the average ticket per student per year; the related number of enrolled students and average ticket per student per year are each calculated in accordance with the terms of each contract with the related partner school.

Non-GAAP Financial Measures

To supplement the Company’s condensed consolidated financial statements, which are prepared and presented in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board—IASB, we use Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, Free Cash Flow and Adjusted Free Cash Flow which are non-GAAP financial measures.

We calculate Adjusted EBITDA as profit (loss) for the year (or period) plus/minus income taxes, plus/minus finance result, plus depreciation and amortization, plus share of loss of equity-accounted investees, plus share-based compensation plan, restricted stock units and provision for payroll taxes (restricted stock units), plus M&A expenses, plus non-recurring expenses and plus effects related to COVID-19 pandemic. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by Net Revenue.

We calculate Adjusted Net Income as profit (loss) for the year (or period) plus share-based compensation plan, restricted stock units and provision for payroll taxes (restricted stock units), plus amortization of intangible assets from business combinations (which refers to the amortization of the following intangible assets from business combinations: (i) rights on contracts, (ii) customer relationships, (iii) educational system, (iv) trademarks, (v) non-compete agreement and (vi) software resulting from acquisitions), plus/minus changes in fair value of derivative instruments (which refers to (i) changes in fair value of derivative instruments—finance income, and plus (ii) changes in fair value of derivative instruments—finance costs), plus/minus changes in accounts payable to selling shareholders plus share of loss of equity-accounted investees, plus/minus changes in current and deferred tax recognized in statements of income applied to all adjustments to net income, plus/minus foreign exchange gains/loss on cash and cash equivalents, plus/minus interest expenses (income), net, plus M&A expenses, plus non-recurring expenses and plus effects related to COVID-19 pandemic. We calculate Adjusted Net Income Margin as Adjusted Net Income divided by Net Revenue.

We calculate Free Cash Flow as Net Cash Flows from Operating activities less acquisition of property and equipment less acquisition of intangible assets. We consider Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by operating activities and cash used for investments in property and equipment required to maintain and grow our business. We calculate Adjusted Free Cash Flow as free cash flow for the year (or period) plus (i) interest change in financial investments, (ii) M&A expenses and,(iii) non-recurring expenses.

We understand that, although Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, Free Cash Flow and Adjusted Free Cash Flow are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin Free Cash Flow and Adjusted Free Cash Flow may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies.

Arco Platform Limited
Interim Condensed Consolidated Statements of Financial Position
		September 30,			December 31,
(In thousands of Brazilian reais)		2020			2019
Assets		(unaudited)
Current assets
Cash and cash equivalents		526,844			48,900
Financial investments		906,671			574,804
Trade receivables		260,576			329,428
Inventories		52,714			40,106
Recoverable taxes		27,688			15,612
Financial instruments from acquisition of interest		–			3,794
Related parties		–			1,298
Other assets		20,089			14,630
Total current assets		1,794,582			1,028,572
Non-current assets
Financial instruments from acquisition of interest		27,887			32,152
Deferred income tax		223,784			156,748
Recoverable taxes		9,528			6,613
Financial investments		4,820			4,690
Related parties		15,186			14,813
Other assets		17,164			14,399
Investments and interests in other entities		70,252			48,574
Property and equipment		21,988			21,328
Right-of-use assets		19,351			21,631
Intangible assets		1,830,999			1,811,903
Total non-current assets		2,240,959			2,132,851
Total assets		4,035,541			3,161,423

		September 30,			December 31,
(In thousands of Brazilian reais)		2020			2019
Liabilities		(unaudited)
Current liabilities
Trade payables		30,799			34,521
Labor and social obligations		115,146			68,511
Taxes and contributions payable		17,513			7,508
Income taxes payable		38,162			52,038
Advances from customers		5,481			25,626
Lease liabilities		8,501			6,845
Loans and financing		2,186			98,561
Accounts payable to selling shareholders		376,310			117,959
Other liabilities		847			607
Total current liabilities		594,945			412,176
Non-current liabilities
Labor and social obligations		296			2,801
Lease liabilities		15,922			19,012
Loans and financing		300,618			–
Financial instruments from acquisition of interest		25,234			33,940
Provision for legal proceedings		774			251
Accounts payable to selling shareholders		919,712			1,098,273
Other liabilities		825			160
Total non-current liabilities		1,263,381			1,154,437
Equity
Share capital		11			11
Capital reserve		2,201,316			1,607,622
Share-based compensation reserve		80,680			84,546
Accumulated losses		(104,792	)		(97,369	)
Total equity		2,177,215			1,594,810
Total liabilities and equity		4,035,541			3,161,423

Arco Platform Limited
Interim Condensed Consolidated Statements of Income
	Three months period ended September 30,						Nine months period ended September 30,
(In thousands of Brazilian reais, except earnings per share)	2020			2019			2020			2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net revenue	208,730			70,572			705,173			325,193
Cost of sales	(44,485	)		(14,188	)		(154,825	)		(61,884	)
Gross profit	164,245			56,384			550,348			263,309
Operating expenses:
Selling expenses	(98,612	)		(47,639	)		(274,582	)		(123,089	)
General and administrative expenses	(72,108	)		(69,515	)		(199,030	)		(135,273	)
Other income (expense), net	3,234			(471	)		3,993			2,451
Operating profit (loss)	(3,241	)		(61,241	)		80,729			7,398
Finance income	13,418			16,187			35,597			47,104
Finance costs	(44,812	)		(104,968	)		(113,903	)		(133,823	)
Finance result	(31,394	)		(88,781	)		(78,306	)		(86,719	)
Share of loss of equity-accounted investees	(4,042	)		(794	)		(8,041	)		(1,953	)
Loss before income taxes	(38,677	)		(150,816	)		(5,618	)		(81,274	)
Income taxes – income (expense)
Current	(14,218	)		(3,103	)		(68,841	)		(32,254	)
Deferred	25,407			45,433			67,036			61,582
Total income taxes – income (expense)	11,189			42,330			(1,805	)		29,328
Net loss for the period	(27,488	)		(108,486	)		(7,423	)		(51,946	)
Basic loss per share – in Brazilian reais
Class A	(0.49	)		(2.11	)		(0.13	)		(1.02	)
Class B	(0.49	)		(2.11	)		(0.13	)		(1.02	)
Diluted loss per share – in Brazilian reais
Class A	(0.49	)		(2.11	)		(0.13	)		(1.02	)
Class B	(0.49	)		(2.11	)		(0.13	)		(1.02	)
Weighted-average shares used to compute net loss per share:
Basic	55,545			50,709			55,144			50,505
Diluted	55,737			51,276			55,336			51,072

Arco Platform Limited
Interim Condensed Consolidated Statements of Cash Flows
	Three months period ended September 30,						Nine months period ended September 30,
(In thousands of Brazilian reais)	2020			2019			2020			2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Operating activities
Loss before income taxes	(38,677	)		(150,816	)		(5,618	)		(81,274	)
Adjustments to reconcile loss before income taxes
Depreciation and amortization	29,715			8,106			89,763			24,449
Inventory reserves	(305	)		643			3,339			4,203
Allowance for doubtful accounts	15,679			7,286			28,233			9,489
Loss on sale/disposal of property and equipment and intangible assets disposed	72			462			1,524			593
Fair value change in financial instruments from acquisition interests	421			8,483			(438	)		10,349
Changes in accounts payable to selling shareholders	12,978			81,781			19,872			81,781
Share of loss of equity-accounted investees	4,042			795			8,041			1,953
Share-based compensation plan	(2,339	)		17,997			15,309			32,431
Accrued interest on loans and financing	9,077			–			16,052			–
Interest accretion on acquisition liability	13,013			10,270			49,990			24,710
Income non-cash equivalents	(4,200	)		–			(9,856	)		–
Interest on lease liabilities	641			449			2,060			1,231
Provision for legal proceedings	–			(111	)		594			100
Provision for payroll taxes (restricted stock units)	(10,212	)		16,881			(1,166	)		23,399
Foreign exchange income	(551	)		(532	)		(371	)		(16	)
Changes in fair value of step acquisitions	(3,248	)		–			(3,248	)		–
Gain on sale of investment	–			34			–			(3,252	)
Other financial income, net	(811	)		(279	)		(1,849	)		(1,481	)
	25,295			1,449			212,231			128,665
Changes in assets and liabilities
Trade receivables	22,354			48,195			40,821			39,786
Inventories	(489	)		(8,937	)		(8,052	)		(10,968	)
Recoverable taxes	(514	)		(2,177	)		(4,818	)		(7,550	)
Other assets	11,582			1,167			(7,319	)		(6,659	)
Trade payables	(76	)		7,833			(3,791	)		8,492
Labor and social obligations	29,210			6,986			44,832			18,340
Taxes and contributions payable	12,576			507			9,797			(540	)
Advances from customers	(31,099	)		(17,335	)		(20,273	)		(2,337	)
Other liabilities	95			(26	)		(887	)		(380	)
Cash generated from operations	68,934			37,662			262,541			166,849
Income taxes paid	(26,392	)		(5,430	)		(90,412	)		(28,640	)
Interest paid on lease liabilities	(476	)		(177	)		(1,186	)		(397	)
Interest paid on investment acquisition	(47	)		–			(47	)		–
Interest paid on loans and financing	(9,867	)		–			(9,867	)		–
Net cash flows from operating activities	32,152			32,055			161,029			137,812
Investing activities
Acquisition of property and equipment	(1,621	)		(1,780	)		(5,663	)		(7,609	)
Payment of investments and interests in other entities	(19,953	)		(1,218	)		(32,628	)		(5,418	)
Acquisition of subsidiaries, net of cash acquired	(22,002	)		–			(22,002	)		(16,137	)
Acquisition of intangible assets	(23,589	)		(7,982	)		(63,069	)		(26,361	)
Net purchases of financial investments	(199,739	)		(25,903	)		(322,141	)		(88,432	)
Loans to related parties	–			–			–			(14,000	)
Net cash flows used in investing activities	(266,904	)		(36,883	)		(445,503	)		(157,957	)

Financing activities
Capital increase	–			–			–			13,829
Capital increase proceeds from public offering	591,898			–			591,898			–
Share issuance costs	(17,531	)		–			(17,531	)		(673	)
Payment of lease liabilities	(1,949	)		(1,629	)		(5,728	)		(2,709	)
Payment of loans and financing	(300,314	)		(38	)		(300,314	)		(52	)
Payment to selling shareholders	47			–			(954	)		–
Loans and financing	300,000			–			498,372			–
Dividends paid by subsidiaries	–			–			(3,696	)		–
Net cash flows from (used in) financing activities	572,151			(1,667	)		762,047			10,395
Foreign exchange effects on cash and cash equivalents	551			533			371			17
Increase (decrease) in cash and cash equivalents	337,950			(5,962	)		477,944			(9,733	)
Cash and cash equivalents at the beginning of the period	188,894			–			48,900			12,301
Cash and cash equivalents at the end of the period	526,844			(5,962	)		526,844			2,568
Increase (decrease) in cash and cash equivalents	337,950			(5,962	)		477,944			(9,733	)

Arco Platform Limited
Reconciliation of Non-GAAP Measures
		Three months period ended September 30,						Nine months period ended September 30,
(In thousands of Brazilian reais)		2020			2019			2020			2019
Adjusted EBITDA Reconciliation		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Loss for the period		(27,488	)		(108,486	)		(7,423	)		(51,946	)
(+/-) Income taxes		(11,189	)		(42,330	)		1,805			(29,328	)
(+/-) Finance result		31,394			88,781			78,306			86,719
(+) Depreciation and amortization		29,715			8,106			89,763			24,449
(+/-) Share of loss of equity-accounted investees		4,042			794			8,041			1,953
EBITDA		26,474			(53,135	)		170,492			31,847
(+) Share-based compensation plan, restricted stock units and provision for payroll taxes (restricted stock units).		19,840			34,878			51,280			55,830
(+) M&A expenses		1,697			8,486			5,688			12,909
(+) Non-recurring expenses		6,694			2,467			16,752			2,467
(+) Effects related to COVID-19 pandemic		2,922			–			10,915			–
Adjusted EBITDA		57,627			(7,304	)		255,127			103,053
Net Revenue		208,730			70,572			705,173			325,193
EBITDA Margin		12.7	%		-75.3	%		24.2	%		9.8	%
Adjusted EBITDA Margin		27.6	%		-10.3	%		36.2	%		31.7	%
		Three months period ended September 30,						Nine months period ended September 30,
(In thousands of Brazilian reais)		2020			2019			2020			2019
Adjusted Net Income Reconciliation		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Loss for the period		(27,488	)		(108,486	)		(7,423	)		(51,946	)
(+) Share-based compensation plan, restricted stock units and provision for payroll taxes (restricted stock units).		19,840			34,878			51,280			55,830
(+) Amortization of intangible assets from business combinations		18,483			3,623			54,718			9,688
(+/-) Changes in fair value of derivative instruments		421			8,483			(438	)		10,349
(+/-) Changes in accounts payable to selling shareholders		12,978			81,781			19,872			81,781
(+/-) Share of loss of equity-accounted investees		4,042			794			8,041			1,953
(+/-) Tax effects		(12,768	)		(40,733	)		(55,192	)		(54,457	)
(+/-) Foreign exchange on cash and cash equivalents		(551	)		(532	)		(371	)		(16	)
(+/-) Interest expenses (income), net		12,513			10,008			49,009			23,889
(+) M&A expenses		1,697			8,486			5,688			12,909
(+) Non-recurring expenses		6,694			2,467			16,752			2,467
(+) Effects related to COVID-19 pandemic		2,922			–			10,915			–
Adjusted Net Income		38,783			769			152,851			92,447
Net Revenue		208,730			70,572			705,173			325,193
Adjusted Net Income Margin		18.6	%		1.1	%		21.7	%		28.4	%

		Three months period ended September 30,						Nine months period ended September 30,
(In thousands of Brazilian reais)		2020			2019			2020			2019
Free Cash Flow Reconciliation		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash generated from operations		68,934			37,662			262,541			166,849
(-) Income tax paid		(26,392	)		(5,430	)		(90,412	)		(28,640	)
(-) Interest paid on lease liabilities		(476	)		(177	)		(1,186	)		(397	)
(-) Interest paid on investment acquisition		(47	)		–			(47	)		–
(-) Interest paid on loans and financing		(9,867	)		–			(9,867	)		–
Cash Flow from Operating Activities		32,152			32,055			161,029			137,812
(-) Acquisition of property and equipment		(1,621	)		(1,780	)		(5,663	)		(7,609	)
(-) Acquisition of intangible assets		(23,589	)		(7,982	)		(63,069	)		(26,361	)
Free Cash Flow		6,942			22,293			92,297			103,842
(+) Interest change in financial investments		4,200			–			9,856			–
(+) M&A expenses		1,697			–			5,688			–
(+) Others		(1,765)			–			12,643			–
(+) Labor and social obligations of restricted stock units		(13,548	)		–			(13,548	)		–
Adjusted Free Cash Flow		(2,474)			22,293			106,936			103,842

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005922/en/

Investor Relations Contact:

Arco Platform Limited

Carina Carreira

[email protected]

KEYWORDS: South America Brazil

INDUSTRY KEYWORDS: Primary/Secondary Preschool Education Technology Software Continuing Training

MEDIA:

Logo

Walmart Announces Dr. Cheryl Pegus as Executive Vice President of Health & Wellness

BENTONVILLE, Ark.–(BUSINESS WIRE)–
Today, Walmart announced Dr. Cheryl Pegus as Walmart’s Executive Vice President, Health & Wellness. In this role, Dr. Pegus will further develop Walmart’s bold healthcare vision, leading health and wellness across the Walmart enterprise. Dr. Pegus will report to Walmart U.S. CEO John Furner, and her first day with Walmart will be Dec. 21st.

“I am thrilled to welcome Dr. Pegus to the Walmart family to advance our efforts to continue exploring healthcare solutions for customers and associates, and helping Americans live better – and healthier,” said John Furner, CEO of Walmart U.S. “She is an exceptional leader who will help us deliver care of the highest quality that people can receive at the right time, regardless of insurance coverage. This has never been more important as it is now, while the pandemic continues to put a strain on our healthcare system.”

Dr. Pegus joins Walmart from her most recent role as Cambia Health Solution’s President of Consumer Health Solutions and Chief Medical Officer, where she was responsible for clinical and consumer strategy to increase access to affordable, equitable care. She directed platform consumer solutions including Journi, clinical services, pharmacy, provider and medical management activities. After working in private practice for several years as a cardiologist, Dr. Pegus joined Pfizer where she focused on the development of clinical protocols and early disease management programs. She also served at Aetna, where her work supported a focus on wellness, women’s health, health equity initiatives and predictive analytics. Dr. Pegus served as the first Chief Medical Officer at Walgreens.

Additionally, Dr. Pegus is co-founder of A New Beat, an organization dedicated to improving the cardiovascular health and careers of women and under-represented minorities. She sits on the board of the American Heart Association and is the immediate past board chair for the Association of Black Cardiologists.

Walmart Health & Wellness consists of more than 4,700 pharmacies, more than 3,400 Vision Centers, Walmart Health centers, digital health capabilities and Walmart Insurance Services, LLC. The company’s goal is to transform the cost and convenience of essential health care and improve the well-being of all communities we serve.

“I am humbled to be joining the Walmart organization and for the opportunity to partner internally and externally to build upon existing initiatives for accessible and affordable care for associates and the communities we serve,” said Dr. Pegus.

Walmart’s quarterly wellness days have provided more than four million free health screenings, and its $4 generic drug price program revolutionized the industry and resulted in significant savings for customers and helped lower the cost of healthcare overall, while demonstrating Walmart’s commitment to offering affordable, accessible healthcare.

About Walmart:

Walmart Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,500 stores under 56 banners in 27 countries and eCommerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart and on Twitter at twitter.com/walmart.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005907/en/

Marilee McInnis – 800-331-0085

KEYWORDS: Arkansas United States North America

INDUSTRY KEYWORDS: Retail Health Other Retail Other Health General Health Pharmaceutical Cardiology

MEDIA:

Posted on November 30, 2020 4:18 pm

Principal Financial Group Adds New Global Leaders to Executive Team

Principal Financial Group Adds New Global Leaders to Executive Team

Luis Valdés to retire after 26 years

DES MOINES, Iowa–(BUSINESS WIRE)–
Principal Financial Group^® today announced global leadership changes – elevating regional presidents Roberto Walker (Latin America) and Thomas Cheong (Asia) of Principal International to its executive management team and announcing the retirement of Luis Valdés, CEO and president of Principal International. Walker and Cheong will report to Dan Houston, chairman, president, and CEO of Principal^®.

The addition of Walker and Cheong to the executive team emphasizes the growing significance of international markets and the global customer for Principal. Based in Santiago, Chile, and Hong Kong SAR, these two leaders bring direct, local perspectives on regional market dynamics and customer preferences which will help inform new solutions and distribution pathways in and outside of their markets.

“We’re excited to add strong, international leaders to our executive management team who have deep understanding of our customers – across markets, customer segments, and product lines – and will help to build our voice and expertise as a global retirement leader,” said Houston. “Roberto and Thomas have unique perspectives on serving diverse customer populations that are invaluable to Principal as we work to diversify not only our solutions, but also the way we bring those solutions to a broad range of customers. Their leadership will help us to deliver on our commitment of helping more people gain access to financial security around the world.”

Walker, senior vice president and president of Principal Latin America, and Cheong, senior vice president and president of Principal Asia, are promoted to executive vice presidents as part of the changes, effective Jan. 1, 2021. Walker joined Principal in 1996 and has led Latin America for Principal International since 2011. Cheong joined Principal in 2015 as vice president of North Asia for Principal International and took over leadership responsibilities for the entire Asia region in 2019.

Valdés will retire March 31, 2021, after 26 years with Principal serving in several global leadership roles. He led Principal International as president and CEO the past nine years – driving significant growth in Latin America and Asia, including several major acquisitions for Principal to grow its footprint in key emerging markets. Valdés will serve as chairman of the Principal International board for two years following his retirement.

“Luis has been central to growing Principal International from an emerging business into a significant contributor today with strong profitability,” said Houston. “He has a passion for what he does – from leading critical acquisitions to advising international lawmakers on sound pension policy. We’re grateful for his leadership and will count on his continued counsel as Principal International board chair.”

Principal continues to evaluate and evolve its operating model to meet the needs of customers around the world – tailoring its expertise as a global retirement leader to meet and address local needs while using local insight to advance the company’s global strategies.

About Principal^®

Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005900/en/

Media Contact: Jane Slusark, 515-362-0482, [email protected]

Investor Contact: John Egan, 515-235-9500, [email protected]

KEYWORDS: Iowa United States North America

INDUSTRY KEYWORDS: Banking Professional Services Insurance Finance

MEDIA:

Logo

VMware to Present at the Barclays Global TMT Conference

PALO ALTO, Calif.–(BUSINESS WIRE)–
VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced that Pat Gelsinger, VMware’s chief executive officer, will present as a keynote speaker at the Barclays Global TMT conference on Wednesday, December 9, 2020 at 11:00 a.m. PT/ 2:00 p.m. ET.

A live webcast will be available on VMware’s Investor Relations page at http://ir.vmware.com. The replay of the webcast will be available for two months.

About VMware

VMware software powers the world’s complex digital infrastructure. The company’s cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. For more information, please visit https://www.vmware.com/company.html

Additional Information

VMware’s website is located at www.vmware.com, and its investor relations website is located at http://ir.vmware.com. VMware’s goal is to maintain the investor relations website as a portal through which investors can easily find or navigate to pertinent information about VMware, all of which is made available free of charge. The additional information includes materials that VMware files with the SEC; announcements of investor conferences and events at which its executives talk about VMware’s products, services and competitive strategies; webcasts of our quarterly earnings calls, investor conferences and events (archives of which are also available for a limited time); additional information on VMware’s financial metrics, including reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures; press releases on quarterly earnings, product and service announcements, legal developments and international news; corporate governance information; and other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005885/en/

Sandra Kerrigan

VMware Investor Relations

[email protected]

Michael Thacker

VMware Global Communications

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Telecommunications Software Networks Hardware Data Management Technology Mobile/Wireless Other Technology

MEDIA:

Logo

VMware to Present at theMorgan Stanley Future of Application Development Conference

PALO ALTO, Calif.–(BUSINESS WIRE)–
VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced that Ajay Patel, VMware’s general manager, modern applications business unit will present at the Morgan Stanley Future of Application Development Conference on Thursday, December 10, 2020 at 10:30 a.m. PT/ 1:30 p.m. ET.

A live webcast will be available on VMware’s Investor Relations page at http://ir.vmware.com. The replay of the webcast will be available for two months.

About VMware

VMware software powers the world’s complex digital infrastructure. The company’s cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. For more information, please visit https://www.vmware.com/company.html

Additional Information

VMware’s website is located at www.vmware.com, and its investor relations website is located at http://ir.vmware.com. VMware’s goal is to maintain the investor relations website as a portal through which investors can easily find or navigate to pertinent information about VMware, all of which is made available free of charge. The additional information includes materials that VMware files with the SEC; announcements of investor conferences and events at which its executives talk about VMware’s products, services and competitive strategies; webcasts of our quarterly earnings calls, investor conferences and events (archives of which are also available for a limited time); additional information on VMware’s financial metrics, including reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures; press releases on quarterly earnings, product and service announcements, legal developments and international news; corporate governance information; and other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005882/en/

Sandra Kerrigan

VMware Investor Relations

[email protected]

Michael Thacker

VMware Global Communications

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Data Management Security Technology Telecommunications Mobile/Wireless Software Networks

MEDIA:

Logo

Barclays Announces the Redemption of Certain ETNs

NEW YORK–(BUSINESS WIRE)–Barclays Bank PLC (“Barclays”) announced today that it will exercise its issuer call option and redeem, in full, each series of exchange-traded notes listed in the table below (each, an “ETN” and collectively, the “ETNs”). Further details regarding the redemption of these ETNs are highlighted in the table below:

Asset Class	ETN Name	ETN Ticker	Exchange	Redemption Date	Final Valuation Date
Rates	iPath Inverse US Treasury Composite ETN	TAPR	Cboe	12/15/2020	12/8/2020
Rates	iPath Series B US Treasury 10-year Bear ETN	BTYS	Cboe	12/15/2020	12/8/2020
Equity	Barclays ETN+ FI Enhanced Global High Yield Series B ETN	FIYY	NYSE Arca	12/15/2020	12/10/2020
Equity	Barclays ETN+ FI Enhanced Europe 50 Series B ETN	FLEU	NYSE Arca	12/15/2020	12/10/2020
Equity	Barclays ETN+ FI Enhanced Europe 50 Series C ETN	FFEU	NYSE Arca	12/15/2020	12/10/2020

On the Redemption Date, holders of the ETNs will receive a cash payment per ETN equal to the relevant Closing Indicative Value for each series of ETNs (as defined in the relevant prospectus relating to the ETNs) on the related Final Valuation Date. The Final Valuation Dates are specified in the table above. Trading of the ETNs will be suspended before the market open on the business day following the Final Valuation Date.

An investment in iPath ETNs involves significant risks and may not be suitable for all investors. The ETNs are riskier than ordinary unsecured debt securities and have no principal protection. For more information on risks associated with the ETNs, please see “Selected Risk Considerations” below and the risk factors included in the relevant prospectus.

The prospectus for the ETNs to which this communication relates can be found at:

http://ipathetn.com/taprprospectus

http://ipathetn.com/btysprospectus

https://www.sec.gov/Archives/edgar/data/0000312070/000110465920027983/a20-11081_10424b2.htm

https://www.sec.gov/Archives/edgar/data/0000312070/000110465920028042/a20-11081_12424b2.htm

https://www.sec.gov/Archives/edgar/data/0000312070/000110465920027984/a20-11081_11424b2.htm

Barclays is the issuer of iPath^® ETNs and Barclays Capital Inc. is the Issuer’s agent in the distribution. Please contact Barclays for further questions:

Financial advisors:

• Directly contact Barclays at [email protected] or 1-212-528-7990 to obtain further information

Individual investors:

• Instruct your broker/advisor/custodian to email us at [email protected] or to call us at: 1-212-528-7990

You may call in together with your broker/advisor/custodian or have them speak to us on your behalf.

About Barclays

Barclays is a transatlantic consumer and wholesale bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US.

With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 83,500 people. Barclays moves, lends, invests and protects money for customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.com

Selected Risk Considerations

An investment in the iPath ETNs described herein involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described under “Risk Factors” in the applicable prospectus supplement and pricing supplement.

You May Lose Some or All of Your Principal: The ETNs are exposed to any decrease in the level of the underlying index between the applicable inception date and the applicable valuation date. Additionally, if the level of the underlying index is insufficient to offset the negative effect of the investor fee and other applicable costs, you will lose some or all of your investment at maturity or upon redemption, even if the value of such index level has increased or decreased, as the case may be. Because the ETNs are subject to an investor fee and other applicable costs, the return on the ETNs will always be lower than the total return on a direct investment in the index components. The ETNs are riskier than ordinary unsecured debt securities and have no principal protection.

Credit of Barclays Bank PLC: The ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC, and are not, either directly or indirectly, an obligation of or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, depends on the ability of Barclays Bank PLC to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of Barclays Bank PLC will affect the market value, if any, of the ETNs prior to maturity or redemption. In addition, in the event Barclays Bank PLC were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.

Issuer Redemption: If specified in the applicable prospectus, Barclays Bank PLC will have the right to redeem or call a series of ETNs (in whole but not in part) at its sole discretion and without your consent on any trading day on or after the inception date until and including maturity.

Market and Volatility Risk: The market value of the ETNs may be influenced by many unpredictable factors and may fluctuate between the date you purchase them and the maturity date or redemption date. You may also sustain a significant loss if you sell your ETNs in the secondary market. Factors that may influence the market value of the ETNs include prevailing market prices of the U.S. stock markets or the U.S. Treasury market, the index components included in the underlying index, and prevailing market prices of options on such index or any other financial instruments related to such index; and supply and demand for the ETNs, including economic, financial, political, regulatory, geographical or judicial events that affect the level of such index or other financial instruments related to such index.

A Trading Market for the ETNs May Not Develop: The liquidity of the ETNs may be limited, as we are not required to maintain any listing of the ETNs.

No Interest Payments from the ETNs: You may not receive any interest payments on the ETNs.

Restrictions on the Minimum Number of ETNs and Date Restrictions for Redemptions: Except as otherwise specified in the applicable product prospectus, you must redeem at least the minimum number of ETNs specified in the applicable product prospectus at one time in order to exercise your right to redeem your ETNs on any redemption date. You may only redeem your ETNs on a redemption date if we receive a notice of redemption from you by certain dates and times as set forth in the product prospectus.

Uncertain Tax Treatment: Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation.

The ETNs may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of ETNs you may redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemption or maturity of ETNs. Sales in the secondary market may result in significant losses.

The “Barclays 10Y US Treasury Futures Targeted Exposure Index™” and the Barclays Inverse US Treasury Futures Composite Index™ are trademarks of Barclays Bank PLC.

© 2020 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs and the iPath logo are registered trademarks of Barclays Bank PLC. All other trademarks, servicemarks or registered trademarks are the property, and used with the permission, of their respective owners.

NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201130005866/en/

Press Contact:

Danielle Popper

+1 212 526 5963

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

Logo