Alnylam Announces Innovative Value-Based Agreement Framework for OXLUMO™ (lumasiran) to Accelerate Access for Patients with Primary Hyperoxaluria Type 1 and Deliver Ultra-Rare Orphan Disease Pricing Solutions to U.S. Payers

Alnylam Announces Innovative Value-Based Agreement Framework for OXLUMO™ (lumasiran) to Accelerate Access for Patients with Primary Hyperoxaluria Type 1 and Deliver Ultra-Rare Orphan Disease Pricing Solutions to U.S. Payers

– Expedited Access to OXLUMO Aims to Support Children and Adults Living with PH1 who Face Inevitable Disease Progression and Irreversible Kidney Damage in the Absence of New Treatment Options –

– New Value-Based Agreement Framework Includes an Innovative Patient Need Adjustment that Offers Payers Increased Cost Predictability Across the Entire Spectrum of PH1 Patient Ages, from Infant to Adult –

– Express Scripts, Harvard Pilgrim, and Highmark are Among Leading Payers Pursuing Agreements in Principle –

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY), the leading RNAi therapeutics company, announced today a new framework for value-based agreements (VBAs) designed to help people with primary hyperoxaluria type 1 (PH1) gain access to OXLUMO™ (lumasiran). Now approved by the U.S. Food and Drug Administration (FDA) for the treatment of PH1 to lower urinary oxalate levels in pediatric and adult patients, OXLUMO is the first-ever approved targeted therapeutic that substantially curbs oxalate production in patients living with PH1, an ultra-rare genetic disease characterized by oxalate overproduction.

Alnylam is in active discussions with leading payers and has reached an agreement in principle with Express Scripts, Harvard Pilgrim, and Highmark to pursue VBAs for OXLUMO.

Oxalate overproduction in PH1 results in elevated urinary oxalate and the deposition of calcium oxalate crystals in the kidneys and urinary tract. People with PH1 typically endure intensive management of debilitating, painful and recurrent kidney stones. With limited treatment options previously available, the disease would inevitably progress to kidney failure, nephrocalcinosis (calcification of the kidneys), and multi-organ dysfunction as a consequence of systemic oxalosis (the spread of oxalate to organs and tissues outside of the kidneys).1 People with PH1 often present with kidney failure at the time of diagnosis.2 PH1 patients with renal failure undergo dialysis almost daily, for up to 10-12 hours per day and night.2 A dual or sequential liver/kidney transplant is then typically performed to resolve the underlying metabolic defect in the liver and restore kidney function,2 but these interventions are associated with life-long immunosuppression and a high risk of morbidity and mortality. Until now, there have been no FDA-approved pharmaceutical therapies for PH1. There are approximately one to three individuals per millionacross the U.S. and Europe with a confirmed PH1 diagnosis, of those it is estimated that 1,000 – 1,700 individuals have not yet received a liver transplant, making them potentially eligible for treatment.3

VBA Framework for OXLUMO

Building on the Alnylam Patient Access Philosophy and Alnylam’s ongoing commitment to deliver fair value to payers and providers, the Company has worked with payers on a new and enhanced VBA framework. Since OXLUMO is indicated for both pediatric and adult patients, and is dosed by weight, related costs can vary relative to each patient and use over time. As such, Alnylam has structured a new VBA component that specifically addresses many payers’ concerns for budget predictability and value, particularly for ultra-rare orphan disease therapies that are administered across a wide spectrum of ages from infants to adults.

The new VBA component, called a Patient Need Adjustment (PNA), is now being added to Alnylam’s overall VBA offering for OXLUMO. Participating payers will qualify for the PNA rebate if the average number of vials utilized by a plan member exceeds an established threshold, providing payers with greater short-term and long-term predictability. The PNA was designed to mitigate the risk of escalating or varying costs associated with dosing requirements, thereby accelerating access for people diagnosed with PH1.

To further address budget predictability, Alnylam is also making available its Prevalence Based Adjustment (PBA) component, which was first introduced last year for Alnylam’s second-approved therapy, GIVLAARI® (givosiran). There are often uncertainties in diagnosis rates and disease prevalence estimates in ultra-rare, poorly diagnosed orphan diseases, making it challenging for payers to predict the number of patients who will be covered within their plans. This feature triggers a rebate to participating payers if the number of diagnosed patients they cover exceeds current epidemiologic estimates for PH1.

“Value-based agreements for OXLUMO focus on three critical priorities for Alnylam in PH1: first, do everything possible to speed covered access to OXLUMO to begin reducing oxalate overproduction in patients; second, link OXLUMO price to actual value delivered; and, third, remove the cost variability to payers associated with medicines administered across a broad age range, while also addressing budget unpredictability concerns arising from uncertain prevalence estimates in ultra-rare diseases,” said Andy Orth, Senior Vice President, Head of U.S. Region at Alnylam. “Our new Patient Need Adjustment component was born out of direct feedback from our payer partners, and experience with our first two approved therapies. We’ve listened to the needs of payers covering PH1 patients and have responded with what we believe is an attractive solution. At Alnylam, we will continue to pursue commercial innovation that offers good value and straightforward pricing for potentially transformative RNAi therapies like OXLUMO, the first-ever approved medicine for PH1.”

“We’re pleased to expand on our legacy of innovative contracting with Alnylam and support access to a transformative therapy for patients with primary hyperoxaluria type 1. The Patient Need Adjustment is an innovative component of the OXLUMO value-based agreement intended to provide budget predictability,” said Michael Sherman, M.D., M.B.A., Chief Medical Officer of Harvard Pilgrim Health Care.

“With an expanding number of medicines being approved for rare and ultra-rare diseases, payers and plans face the increasingly difficult task of predicting costs for therapies while establishing coverage for patients in need. The Patient Need Adjustment is a responsible and very welcome model to address certain payer challenges, creating a solution that mitigates cost risks associated with ultra-rare medicines administered across a broad range of patient age groups,” said Steve Miller, M.D., Chief Medical Officer, CIGNA, Express Scripts.

“Highmark is focused on ensuring that our members have access to effective therapies, including increasingly available rare and ultra-rare disease therapies, while addressing costs,” said Sean Quinn, PharmD., Pharmaceutical Manufacturer Relations Director for Highmark Inc. “We have emerged as a leader in the value-based agreements space for therapies that address a number of chronic, high-cost health conditions. VBAs can help speed access to new medicines by tying outcomes to clinical trial performance, but payers are seeking other barometers for predicting need, which can be complex for therapies indicated across a spectrum of patient ages. We have collaborated with Alnylam to tackle new and evolving problems in rare and ultra-rare disease drug coverage, and are proud to work on this innovative Patient Need Adjustment to help people seeking treatment with OXLUMO.”

Alnylam’s Patient Access Philosophy

The innovative agreements announced today further reinforce Alnylam’s Patient Access Philosophy, which was created three years ago to seek solutions for patients, deliver value to payers and physicians, and remove barriers to access. This Philosophy commits that Alnylam will not increase the price of OXLUMO by more than the consumer price index for urban consumers (CPI-U), a measure of inflation, unless it is approved for new conditions by the U.S. FDA. Patients with private (commercial) insurance are expected to have little-to-no out-of-pocket copayments for OXLUMO. To see Alnylam’s progress, visit https://www.alnylam.com/about-alnylam/patient-access-philosophy/.

Alnylam Assist® and Alnylam Act®

Alnylam offers multiple programs to support patients. A comprehensive patient support services program, Alnylam Assist®, will help patients gain access to OXLUMO. Alnylam Assist® will offer an in-house team of Case Managers to assist patients with verification of insurance benefits and financial assistance for those who qualify. Patients will also be eligible to receive support from Patient Education Liaisons, who can answer questions about disease and treatment. Physicians and patients can learn more about Alnylam’s comprehensive patient services by visiting AlnylamAssist.com or calling 1-833-256-2748. Alnylam also continues to offer its third-party genetic testing service in the U.S., Canada, and Brazil, called Alnylam Act®. The program is provided at no charge to patients and their physicians and aims to reduce the time to accurate diagnoses for genetic diseases, such as PH1.

Visit OXLUMO.com for more information, including full Prescribing Information.

IMPORTANT SAFETY INFORMATION

Adverse Reactions

The most common adverse reaction that occurred in patients treated with OXLUMO was injection site reaction (38%). Symptoms included erythema, pain, pruritus, and swelling.

Pregnancy and Lactation

No data are available on the use of OXLUMO in pregnant women. No data are available on the presence of OXLUMO in human milk or its effects on breastfed infants or milk production. Consider the developmental and health benefits of breastfeeding along with the mother’s clinical need for OXLUMO and any potential adverse effects on the breastfed child from OXLUMO or the underlying maternal condition.

For additional information about OXLUMO, please see the full Prescribing Information.

About OXLUMO™ (lumasiran)

OXLUMO is an RNAi therapeutic targeting hydroxyacid oxidase 1 (HAO1) for the treatment of primary hyperoxaluria type 1 (PH1) to lower urinary oxalate levels in pediatric and adult patients. HAO1 encodes glycolate oxidase (GO), an enzyme upstream of the disease-causing defect in PH1. OXLUMO works by degrading HAO1 messenger RNA and reducing the synthesis of GO, which inhibits hepatic production of oxalate – the toxic metabolite responsible for the clinical manifestations of PH1. In the pivotal ILLUMINATE-A study, OXLUMO was shown to significantly reduce levels of urinary oxalate relative to placebo, with the majority of patients reaching normal or near-normal levels. Injection site reactions (ISRs) were the most common drug-related adverse reaction. In the ILLUMINATE-B pediatric Phase 3 study, OXLUMO demonstrated an efficacy and safety profile consistent to that observed in ILLUMINATE-A. OXLUMO utilizes Alnylam’s Enhanced Stabilization Chemistry (ESC)-GalNAc conjugate technology designed to increase potency and durability. OXLUMO is administered via subcutaneous injection once monthly for three months, then once quarterly thereafter at a dose based on actual body weight. For patients who weigh less than 10 kg, ongoing dosing remains monthly. OXLUMO should be administered by a healthcare professional. For more information about OXLUMO, visit OXLUMO.com.

About Primary Hyperoxaluria Type 1 (PH1)

PH1 is an ultra-rare genetic disease that affects an estimated one to three individuals per million in the United States and Europe. PH1 is characterized by oxalate overproduction in the liver. The excess oxalate results in the deposition of calcium oxalate crystals in the kidneys and urinary tract and can lead to the formation of painful and recurrent kidney stones and nephrocalcinosis. Renal damage is caused by a combination of tubular toxicity from oxalate, calcium oxalate deposition in the kidneys, and urinary obstruction by calcium oxalate stones. PH1 is associated with a progressive decline in kidney function, which exacerbates the disease as the excess oxalate can no longer be effectively excreted, resulting in subsequent accumulation and deposition of oxalate in bones, eyes, skin, and heart, leading to severe illness and death. Management options to date were limited to hyperhydration, crystallization inhibitors and, in a minority of patients with a specific genotype, pyridoxine (vitamin B6). These measures do not adequately address oxalate overproduction and are intended to delay inevitable progression to kidney failure and the need for intensive dialysis as a bridge to a dual or sequential liver/kidney transplant. Liver transplantation is the only intervention that addresses the underlying metabolic defect, but is associated with high morbidity and mortality, and life-long immunosuppression. Until today, there were no approved pharmaceutical therapies for PH1.

About RNAi

RNAi (RNA interference) is a natural cellular process of gene silencing that represents one of the most promising and rapidly advancing frontiers in biology and drug development today. Its discovery has been heralded as “a major scientific breakthrough that happens once every decade or so,” and was recognized with the award of the 2006 Nobel Prize for Physiology or Medicine. By harnessing the natural biological process of RNAi occurring in our cells, a new class of medicines, known as RNAi therapeutics, is now a reality. Small interfering RNA (siRNA), the molecules that mediate RNAi and comprise Alnylam’s RNAi therapeutic platform, function upstream of today’s medicines by potently silencing messenger RNA (mRNA) – the genetic precursors – that encode for disease-causing or disease pathway proteins, thus preventing them from being made. This is a revolutionary approach with the potential to transform the care of patients with genetic and other diseases.

About Alnylam Pharmaceuticals

Alnylam (Nasdaq: ALNY) is leading the translation of RNA interference (RNAi) into a whole new class of innovative medicines with the potential to transform the lives of people afflicted with rare genetic, cardio-metabolic, hepatic infectious, and central nervous system (CNS)/ocular diseases. Based on Nobel Prize-winning science, RNAi therapeutics represent a powerful, clinically validated approach for the treatment of a wide range of severe and debilitating diseases. Founded in 2002, Alnylam is delivering on a bold vision to turn scientific possibility into reality, with a robust RNAi therapeutics platform. Alnylam’s commercial RNAi therapeutic products are ONPATTRO® (patisiran), GIVLAARI® (givosiran), and OXLUMO™ (lumasiran). Alnylam has a deep pipeline of investigational medicines, including six product candidates that are in late-stage development. Alnylam is executing on its “Alnylam 2020” strategy of building a multi-product, commercial-stage biopharmaceutical company with a sustainable pipeline of RNAi-based medicines to address the needs of patients who have limited or inadequate treatment options. Alnylam is headquartered in Cambridge, MA. For more information about our people, science and pipeline, please visit www.alnylam.com and engage with us on Twitter at @Alnylam or on LinkedIn.

Alnylam Forward Looking Statements

Various statements in this release concerning Alnylam’s future expectations, plans and prospects, including, without limitation, Alnylam’s views with respect to the safety and efficacy of OXLUMO as demonstrated in the ILLUMINATE-A and ILLUMINATE-B Phase 3 studies and the potential for OXLUMO to address the underlying pathophysiology of PH1 in adults, children and infants, the potential for OXLUMO to substantially curb or reduce oxalate production in pediatric and adult patients with PH1, expectations regarding Alnylam’s new framework for VBAs designed to help people with PH1 gain covered access to OXLUMO, link OXLUMO price to actual value delivered, remove the cost variability to payers associated with medicines administered across a broad age range, and address budget unpredictability concerns arising from uncertain estimated prevalence of ultra-rare diseases such as PH1, expectations regarding the attractiveness of Alnylam’s new VBA component to payers, expectations regarding the entry into definitive VBA agreements for OXLUMO with leading payers, including Express Scripts, Harvard Pilgrim, and Highmark, among others, and expectations regarding the potential for Alnylam to meet or exceed its “Alnylam 2020” guidance for the advancement and commercialization of RNAi therapeutics, constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results and future plans may differ materially from those indicated by these forward-looking statements as a result of various important risks, uncertainties and other factors, including, without limitation: the direct or indirect impact of the COVID-19 global pandemic or any future pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays in diagnoses of rare diseases, initiation or continuation of treatment for diseases addressed by Alnylam products, or in patient enrollment in clinical trials, potential supply chain disruptions, and other potential impacts to Alnylam’s business, the effectiveness or timeliness of steps taken by Alnylam to mitigate the impact of the pandemic, and Alnylam’s ability to execute business continuity plans to address disruptions caused by the COVID-19 or any future pandemic; Alnylam’s ability to discover and develop novel drug candidates and delivery approaches and successfully demonstrate the efficacy and safety of its product candidates; the pre-clinical and clinical results for its product candidates, which may not be replicated or continue to occur in other subjects or in additional studies or otherwise support further development of product candidates for a specified indication or at all; actions or advice of regulatory agencies, which may affect the design, initiation, timing, continuation and/or progress of clinical trials or result in the need for additional pre-clinical and/or clinical testing; delays, interruptions or failures in the manufacture and supply of its product candidates or its other marketed products, including OXLUMO; obtaining, maintaining and protecting intellectual property; intellectual property matters including potential patent litigation relating to its platform, products or product candidates; obtaining regulatory approval for its product candidates, and maintaining regulatory approval and obtaining pricing and reimbursement for its products, including ONPATTRO, GIVLAARI and OXLUMO; progress in continuing to establish an ex-United States infrastructure; successfully launching, marketing and selling its approved products globally, including ONPATTRO, GIVLAARI and OXLUMO, and achieving net product revenues for ONPATTRO within its revised expected range during 2020; Alnylam’s ability to successfully expand the indication for ONPATTRO in the future; competition from others using technology similar to Alnylam’s and others developing products for similar uses; Alnylam’s ability to manage its growth and operating expenses within the ranges of guidance provided by Alnylam through the implementation of further discipline in operations to moderate spend and its ability to achieve a self-sustainable financial profile in the future without the need for future equity financing; Alnylam’s ability to establish and maintain strategic business alliances and new business initiatives; Alnylam’s dependence on third parties, including Regeneron, for development, manufacture and distribution of certain products, including eye and CNS products, and Vir for the development of ALN-COV and other potential RNAi therapeutics targeting SARS-CoV-2 and host factors for SARS-CoV-2; the outcome of litigation; the risk of government investigations; and unexpected expenditures; as well as those risks more fully discussed in the “Risk Factors” filed with Alnylam’s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) and in other filings that Alnylam makes with the SEC. In addition, any forward-looking statements represent Alnylam’s views only as of today and should not be relied upon as representing its views as of any subsequent date. Alnylam explicitly disclaims any obligation, except to the extent required by law, to update any forward-looking statements.

1Lorenzo V, Torres A, Salido E. Primary hyperoxaluria. Nefrologia. 2014 May 21;34(3):398-412. English, Spanish. doi: 10.3265/Nefrologia.pre2014.Jan.12335. Epub 2014 Apr 30. PMID: 24798559.

2Cochat P, et al. Primary hyperoxaluria Type 1: indications for screening and guidance for diagnosis and treatment. Nephrol Dial Transplant. 2012 May;27(5):1729-36. doi: 10.1093/ndt/gfs078. PMID: 22547750.

3Lumasiran, in Development for the Treatment of Primary Hyperoxaluria Type I. Alnylam RNAi Roundtable 2020; (August 10, 2020). Available at: https://event.webcasts.com/viewer/event.jsp?ei=1351579&tp_key=7522004032

Alnylam Pharmaceuticals, Inc.

Christine Regan Lindenboom

(Investors and Media)

+1-617-682-4340

Josh Brodsky

(Investors)

+1-617-551-8276

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health

MEDIA:

Logo
Logo

The Boston Globe Names HqO a Top Place to Work for 2020

Magazine Honors the Best Employers in Massachusetts

BOSTON, Nov. 24, 2020 (GLOBE NEWSWIRE) — HqO has been named one of the Top Places to Work in Massachusetts in the 13th annual employee-based survey project from The Boston Globe. The Top Places to Work 2020 issue publishes online at Globe.com/TopPlaces on the night of November 19 and in Globe Magazine on November 22.

Top Places to Work recognizes the most admired workplaces in the state voted on by the people who know them best — their employees. The survey measures employee opinions about their company’s direction, execution, connection, management, work, pay and benefits, and engagement. The employers are placed into one of four groups: small, with 50 to 99 employees; medium, with 100 to 249 workers; large, with 250 to 999; and largest, with 1,000 or more.

“From day one, HqO has been focused on creating a vibrant workplace and culture,” said Chase Garbarino, co-founder and CEO of HqO. “Every team member understands our ‘Let’s Go’ core values — Learning, Excellence, Truth, Speed, Goodness, and Ownership — and lives them everyday. We’re proud to be named to the Boston Globe’s Top Places to Work list.”

HqO’s successful company culture is a testament to the products that it provides for its commercial real estate (CRE) clients. Through the HqOS™ operating system — which is comprised of HqO’s Tenant Experience Platform, Marketplace of best-in-class partners, and data and benchmarking platform called the Digital Grid™ — CRE landlords are empowered to increase their asset value by taking a data-driven approach in programming and personalizing both on-site and off-site experiences for their tenants. With the proper tools at hand, they have the flexibility, efficiency, and intelligence required to effectively operate a modern commercial real estate portfolio.

“This was a particularly challenging year to be a great place to work, and the companies that made our list went above and beyond to keep their employees safe, engaged, and cared for,” said Katie Johnston, the Globe’s Top Places to Work editor. “From offering help with childcare to making the workplace more equitable to holding virtual talent shows, these employers showed that the best get better in crisis.”

The rankings in Top Places to Work are based on confidential survey information collected by Energage (formerly WorkplaceDynamics), an independent company specializing in employee engagement and retention, from more than 80,000 individuals at 285 Massachusetts organizations. The winners share a few key traits, including offering progressive benefits, giving their employees a voice, and encouraging them to have some fun while they’re at it.

Top Places to Work online extras include sortable rankings and features such as showcasing companies that are going the extra mile to make their workplaces more equitable and to help employees connect with one another, and their communities, during the pandemic. All can be found at Globe.com/TopPlaces. Readers can follow the news on Twitter at #workboston.

About HqO

For owners and operators of commercial real estate, HqO is an integrated tenant experience platform and strategy solution that strengthens relationships with current and prospective tenants, unlocking business value for owners while bringing property management, marketing, and leasing teams closer to their customers.

For tenants, HqO is an award-winning tenant experience mobile app — connecting employees to the communities in and around their building and empowering them with tools to control their workday.

HqO is headquartered in Boston, with offices in New York City, Dallas, Los Angeles, London, and Paris. To learn more about HqO and request a software demo for your properties, visit www.hqo.co, and follow HqO on Twitter @HqOapp.

About Boston Globe Media Partners LLC

Boston Globe Media Partners, LLC provides news and information, entertainment, opinion and analysis through its multimedia properties. BGMP includes The Boston Globe, Globe.com, Boston.com, STAT and Globe Direct.

Primary Contact: Kristin Concannon

Phone: 833-225-5476

Email:


[email protected]



Amazon Brings Computer Science Education to the Home Classroom with the Cyber Robotics Challenge

Canada NewsWire

Free, virtual, first-of-its kind program teaches students the basics of coding and computer science in a real-world setting

TORONTO, Nov. 24, 2020 /CNW/ – Amazon (NASDAQ: AMZN) today announced the Canadian launch of the Amazon Cyber Robotics Challenge, a free computer science education program for elementary school students. As record numbers of children experience remote learning during the COVID-19 pandemic, the Cyber Robotics Challenge will be a tool for teachers and parents to help students learn coding skills in the virtual classroom.

“This is an unprecedented school year for parents and teachers, who are looking for new ways to engage students who are learning from home,” said Susan Ibach, Head of Amazon Future Engineer Canada. “Amazon is committed to ensuring that children and young adults – especially those from underrepresented and underserved communities – have the resources and skills to build their best future. Amazon’s Cyber Robotics Challenge helps students better understand computer science and its real-world applications, and engages those who may not have otherwise had the opportunity to build coding skills at an early stage of their education.”

Developed in partnership with online learning specialist CoderZ, and distributed in partnership with computer science education non-profit Canada Learning Code, the Amazon Cyber Robotics Challenge teaches students the basics of coding and allows them to practice their skills by completing a series of exercises that demonstrate how Amazon uses computer science and robotics to deliver products to customers. Lessons focus on a series of ‘robot training missions’ in which students code a virtual Hercules robot operating in an Amazon fulfillment centre.

The Amazon Cyber Robotics Challenge curriculum was designed to complement other STEM and computer science coursework and can be broken into four, 45-minute or three, 60-minute lessons. The Challenge can be accessed free of charge, in English and French, by visiting the program Web site.

Studies have shown inspiring young children in STEM and computer science motivates them to stay interested in the field long-term, providing a critical foundation for future learning. The Canadian launch of the Amazon Cyber Robotics Challenge is the first step in a broader rollout of programming in Canada that reflects the company’s commitment to inspiring, educating, and training underrepresented and underserved children and young people to pursue careers in computer science. 

“Computer science is not a mandated part of our education system, which results in inequitable access to high-quality and comprehensive foundational courses across Canada. As computer science becomes an increasingly important part of our society, it is crucial that all students are given equal opportunities to access these foundational skills so they too can be inspired by the possibilities,” said Melissa Sariffodeen, CEO, Canada Learning Code.

For more information on the Amazon Cyber Robotics Challenge, visit the program Web site. 

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit www.amazon.com/about and follow @AmazonNews.

SOURCE Amazon Canada

Corus Entertainment Receives TSX Approval for Renewed Normal Course Issuer Bid

PR Newswire

TORONTO, ON, Nov. 24, 2020 /PRNewswire/ – Corus Entertainment Inc. (“Corus” or the “Company”) (TSX: CJR.B) announced today that the Toronto Stock Exchange (the “TSX”) has accepted the notice filed by the Company to renew its normal course issuer bid (“NCIB”) for a one year period.

On November 17, 2020, the Company announced its intention to seek TSX approval to renew its NCIB for an additional one year. The NCIB commences on November 26, 2020 and will terminate on November 25, 2021, or on such earlier date as the Company may complete its purchases pursuant to a Notice of Intention filed with the TSX. Under the NCIB, the Company is authorized to purchase up to 9,673,416 of its Class B non-voting shares (out of the 204,954,666 Class B non-voting shares outstanding as at November 1, 2020) representing approximately 5% of the public float as at November 1, 2020, by way of normal course purchases effected through the facilities of the TSX and/or alternative Canadian trading systems. Daily repurchases will be limited to a maximum of 313,762 Class B non-voting shares, representing 25% of the average daily trading volume for the six months ended October 31, 2020 (being 1,255,049 Class B non-voting shares), except where purchases are made in accordance with the “block purchase exception” of the TSX rules. All shares purchased by the Company under the NCIB will be cancelled.

In deciding to establish the NCIB, the Company believes that the market price of the Class B non-voting shares may not, from time to time, fully reflect their value and accordingly the purchase of the Class B non-voting shares would be in the best interest of the Company and an attractive and appropriate use of available funds.

Purchases will be made by the Company in accordance with the requirements of the TSX and the price which the Company will pay for any such Class B non-voting shares will be the market price of any such Class B non-voting shares at the time of acquisition, or such other price as may be permitted by the TSX.

In connection with the NCIB, the Company has entered into an automatic repurchase plan with its designated broker to allow for purchases of its Class B non-voting shares during certain pre-determined black-out periods, subject to certain parameters as to price and number of shares. Outside of these pre-determined black-out periods, shares will be repurchased in accordance with management’s discretion, subject to applicable law. The plan has been pre-cleared by the TSX and will terminate on November 25, 2021.

Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the Company sought and received approval from the TSX to purchase up to 9,913,940 Class B non-voting shares for the period commencing on November 12, 2019 to November 11, 2020, the Company purchased and cancelled an aggregate of 3,630,000 Class B non-voting shares on the open market at a weighted average price per share of $4.65.

Although the Company has a present intention to acquire its Class B non-voting shares pursuant to the NCIB, the Company will not be obligated to make any purchases and purchases may be suspended by the Company at any time.

Caution Concerning Forward-Looking Information

This press release contains forward-looking information and should be read subject to the following cautionary language:

To the extent any statements made in this report contain information that is not historical, these statements are forward-looking statements and may be “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking information”). These forward-looking statements relate to, among other things, statements related to the NCIB and future purchases of Class B non-voting shares pursuant to the NCIB, and can generally be identified by the use of words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions and risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the general market conditions and general outlook for the industry, interest rates, stability of the advertising, distribution, merchandise and subscription markets, operating and capital costs and tariffs, taxes and fees, our ability to source desirable content and our capital and operating results being consistent with our expectations. Actual results may differ materially from those expressed or implied in such information. Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading “Risks and Uncertainties” in the Management’s Discussion and Analysis for the year ended August 31, 2020 and under the heading “Risk Factors” in our Annual Information Form. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document. Unless otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

About Corus Entertainment Inc.

Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company’s portfolio of multimedia offerings encompass 34 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital assets, animation software, technology and media services. Corus is an established creator of globally distributed content through Nelvana animation studio, Corus Studios, and children’s book publishing house Kids Can Press. The company also owns innovative full-service social digital agency so.da, and lifestyle entertainment company Kin Canada. Corus’ roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX. Visit Corus at www.corusent.com.

Cision View original content:http://www.prnewswire.com/news-releases/corus-entertainment-receives-tsx-approval-for-renewed-normal-course-issuer-bid-301179438.html

SOURCE Corus Entertainment Inc.

­Nevro to Participate in Citi Bank Head Shoulders Knees and Toes Conference Call Series on November 30th

PR Newswire

REDWOOD CITY, Calif., Nov. 24, 2020 /PRNewswire/ — Nevro Corp. (NYSE: NVRO), a global medical device company that is providing innovative, evidence-based solutions for the treatment of chronic pain, today announced that D. Keith Grossman, Nevro’s Chairman, CEO and President will participate in Citi Bank’s Head Shoulders Knees and Toes Conference Call Series on November 30, 2020 at 2pm ET.

Investors interested in listening to the call may do so by dialing (856) 344-9142 in the U.S., using Conference ID: 3168278. This dial-in information is available on the “Investors” section of the Company’s website at: www.nevro.com.

About Nevro
Headquartered in Redwood City, California, Nevro is a global medical device company focused on providing innovative products that improve the quality of life of patients suffering from debilitating chronic pain. Nevro has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based, non-pharmacologic neuromodulation platform for the treatment of chronic pain. HF10 therapy has demonstrated the ability to reduce or eliminate opioids in ≥65% of patients across six peer-reviewed clinical studies. The Senza® System, Senza II™ System, and the Senza® Omnia™ System are the only SCS systems that deliver Nevro’s proprietary HF10® therapy. Senza, Senza II, Senza Omnia, HF10, Nevro and the Nevro logo are trademarks of Nevro Corp.

To learn more about Nevro, connect with us on LinkedIn, Twitter, Facebook and Instagram.

Investor Relations:

Matt Bacso, CFA
[email protected]

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/nevro-to-participate-in-citi-bank-head-shoulders-knees-and-toes-conference-call-series-on-november-30th-301179492.html

SOURCE Nevro Corp.

Jacobs Acquires Cyber and Intelligence Leader The Buffalo Group

Strengthens high priority analytics, all-source intelligence and cyber artificial intelligence capabilities

Combination provides robust suite of solutions for key missions across multi-domain operations: cyber, ground, sea, airborne and space

PR Newswire

DALLAS, Nov. 24, 2020 /PRNewswire/ — Jacobs (NYSE:J) announces it has acquired The Buffalo Group, a leader in advanced cyber and intelligence solutions, further strengthening Jacobs’ leading portfolio of national priority mission-focused, government solutions in the cyber domain and the Intelligence Community (IC). The terms of the acquisition were not disclosed.

Based in Reston, Va., The Buffalo Group brings high-impact analytical and technology capabilities to the United States Intelligence Community for key missions across multi-domains including cyber, ground, sea, airborne and space.

“Defending our nation against adversarial threats is growing in complexity. The Buffalo Group’s leading cyber and intelligence capabilities further strengthens our suite of national priority solutions across integrated multi-domain environments,” said Jacobs Chair and CEO Steve Demetriou. “Like Jacobs, The Buffalo Group has a proven track record of winning multibillion-dollar full and open enterprise contracts. Under the leadership of Caesar Nieves as head of our new Cyber and Intelligence business, the combination of Jacobs and The Buffalo Group will provide additional opportunities across the Intelligence Community, Combatant Commands and the U.S. Army.”

The Buffalo Group’s advanced, mission-critical solutions solve complex national priorities and security challenges in the areas of advanced analytics, advanced targeting, cybersecurity, cloud mitigation, DevSecOps (Development, Security and Operations), identity intelligence and biometrics, human intelligence, open-source and social media analysis, geospatial intelligence, cyber threat intelligence and artificial intelligence/machine learning. The Buffalo Group President Paul Courtney said, “Joining with Jacobs will enable The Buffalo Group’s talented team to deliver even more innovative technologies and capabilities to customers. With a proven record for delivering cutting-edge technology solutions that drive critical business outcomes, Jacobs represents a technical, cultural and philosophical fit for The Buffalo Group team.”

Advisors

For Jacobs, Fried Frank served as legal counsel. For The Buffalo Group, Pillsbury Winthrop Shaw Pittman LLP served as legal counsel and Baird acted as the exclusive financial advisor.

Earnings Call

Jacobs will host its quarterly earnings call on November 24 at 10:00 a.m. ET, during which this transaction will be discussed with the financial community. The conference call can be accessed by dialing participant toll free dial-in number: 833-231-8270 (U.S./Canada) or participant international dial-in number: 647-689-4115 using conference ID: 7372799. Interested parties can listen to the earnings call and view accompanying slides on the Jacobs investor page.

About Jacobs

At Jacobs, we’re challenging today to reinvent tomorrow by solving the world’s most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With approximately $14 billion in revenue and a talent force of more than 55,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector. Visit jacobs.com and connect with Jacobs on Facebook, InstagramLinkedIn and Twitter.

About The Buffalo Group

The Buffalo Group provides innovative capabilities and extensive domain expertise to solve complex national security challenges. The company offers a diverse set of analytic and technology capabilities, fused together in support of key missions for agencies across the Department of Defense and the Intelligence Community. The Buffalo Group supports a diversity of sensitive missions including counterterrorism, space / counterspace, and cyber threat intelligence.

Forward-Looking Statements
Statements made in this release that are not based on historical fact are forward-looking statements. We base these forward-looking statements on management’s current estimates and expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements. For a description of some additional factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our Form 10-K for the fiscal year ended October 2, 2020, and in particular the discussions contained under Items 1 – Business, 1A – Risk Factors, 3 – Legal Proceedings, and 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations, as well as the company’s other filings with the Securities and Exchange Commission. We do not undertake to update any forward-looking statements made herein.

For additional information, contact:

Jacobs
Investors:
Jonathan Doros, 817-239-3457
[email protected]

Media:
Amy Ochs, 214-912-9171
[email protected]

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/jacobs-acquires-cyber-and-intelligence-leader-the-buffalo-group-301179491.html

SOURCE Jacobs

Chico’s FAS, Inc. Reports Third Quarter Results

PR Newswire

FORT MYERS, Fla., Nov. 24, 2020 /PRNewswire/ — 


  • Sales grew 14.8% and gross margin expanded 740 basis points from second quarter

  • Soma’s 67% digital sales increase led Company’s year-over-year double-digit digital sales growth for the quarter

  • Significantly enhanced financial liquidity and flexibility with amended and extended $300 million credit facility; ended quarter with $145.2 million in cash and cash equivalents

  • Achieved $65.0 million in rent abatement and reduction commitments as part of comprehensive lease portfolio review

Chico’s FAS, Inc. (NYSE: CHS) (the “Company” or “Chico’s FAS”) today announced its financial results for the fiscal 2020 third quarter ended October 31, 2020 (the “third quarter”).

Molly Langenstein, Chief Executive Officer and President, Chico’s FAS said: “Eighteen months ago, we prioritized digital as the primary growth engine for all three of our brands, making major strategic shifts and investments to pivot us to a digital-first company. In March of this year, as our business became 100% digital overnight, we accelerated that transformation through innovation and state-of-the art technology enhancements. Even with our stores now reopened, we continue to generate year-over-year double-digit digital sales increases. As a digital-first company, we believe we are competitively positioned to accelerate growth and gain market share in 2021 and beyond.”  

“We are pleased that we achieved another quarter of sequential performance improvement, with total sales increasing by 14.8%, driven by strong digital performance and a rebound in store sales, and gross margin rate rising more than 700 basis points,” Langenstein added.  

Langenstein also noted, “During the third quarter, we significantly enhanced our financial liquidity and flexibility with the $300 million credit facility and commitments for $65 million in rent abatements and reductions. We are also on track to realize SG&A expense savings of 23% compared to our original plan for the year. All of these actions have created a solid financial foundation for Chico’s FAS that we believe has positioned us to emerge a stronger company. I remain optimistic about the future of Chico’s FAS.”


Business Highlights

Recent highlights include:

  • Chico’s FAS continued its evolution to a digital-first company, fast tracking several investments in innovative digital technology, leading to higher customer engagement and improved sales.
  • For the third quarter, total sales improved 14.8% from the thirteen weeks ended August 1, 2020 (the “second quarter”), driven by robust digital performance and rebounding store revenues.
  • Third quarter digital sales grew by double digits for the second quarter in a row. Year-over-year digital sales grew in all three brands, and Soma led the way with 67% growth compared to the thirteen weeks ended November 2, 2019 (“last year’s third quarter”).
  • Soma achieved a 10.5% total comparable sales growth for the third quarter compared to last year’s third quarter.
  • Total third quarter gross margin rate was up 740 basis points compared to the second quarter, reflecting a higher percentage of full-price selling on leaner inventory, reduced inventory write-offs and leverage of fixed occupancy costs.
  • In October, the Company meaningfully enhanced its liquidity and financial flexibility by amending and extending its credit facility for $300.0 million, which matures in October 2025. The Company’s balance sheet remains strong with $145.2 million in cash and cash equivalents at quarter end.
  • The Company achieved commitments of $65.0 million to date in rent abatements and reductions resulting from its comprehensive real estate and lease portfolio review. On a cash basis, management expects approximately $44.0 million of this amount will be realized in fiscal 2020, with the balance realized primarily in fiscal 2021. For income statement purposes, these rent abatements and reductions will be recognized pro rata over the remaining lease terms.
  • The Company continued the process of streamlining and refining its organizational structure, materially reducing its expense base to appropriately support its business needs. Excluding rent, management has identified approximately $235.0 million, or 23%, in annual expense savings compared to the original fiscal 2020 plan. The Company expects certain of these cost savings initiatives will benefit future years and reflect a cultural shift in how the business is managed.




Overview of Financial Results


For the thirteen weeks ended October 31, 2020 (the “third quarter”), the Company reported a net loss of $55.9 million, or $0.48 loss per diluted share. The third quarter net loss includes the after-tax impact of impairment charges of $6.3 million, or $0.06 per share. For last year’s third quarter, the net loss was $8.1 million, or $0.07 loss per diluted share. Last year’s third quarter net loss includes after-tax accelerated depreciation charges of $1.5 million, or $0.01 per share and the after-tax impact of severance and other related net charges (collectively, “Severance Charges”) of $2.1 million, or $0.02 per share.

For the thirty-nine weeks ended October 31, 2020, the Company reported a net loss of $281.0 million, or $2.43 loss per diluted share, compared to a net loss of $8.4 million, or $0.07 loss per diluted share, for the thirty-nine weeks ended November 2, 2019. The net loss for the thirty-nine weeks ended October 31, 2020 includes the after-tax impact of goodwill impairment charges of $72.9 million, or $0.63 per share; impairments on other indefinite-lived intangible assets of $24.6 million, or $0.21 per share; inventory write-offs of $34.1 million, or $0.29 per share; long-lived store asset impairments of $13.9 million, or $0.12 per share; impairment on right of use assets of $1.8 million, or $0.02 per share; and impairment on other long-lived assets of $6.3 million, or $0.06 per share. These charges represent $197.9 million of the pre-tax net loss and $153.7 million of the after-tax loss, or $1.33 per share, for the thirty-nine weeks ended October 31, 2020. The net loss for the thirty-nine weeks ended November 2, 2019 includes after-tax accelerated depreciation charges of $7.2 million, or $0.06 per share, and Severance Charges of $2.1 million, or $0.02 per share.

Results for the thirteen and thirty-nine weeks ended October 31, 2020 include after-tax charges related to the impact of the COVID-19 pandemic (the “pandemic”) totaling $6.3 million, or $0.06 per share, and $153.7 million, or $1.33 per share, respectively, as detailed in the tables below.


Summary of Significant Charges (1)


Thirteen Weeks Ended


October 31, 2020


Amount, pre-tax


% of Net Sales


Amount, after-tax


Per share impact


(dollars in thousands, except per share amounts)

Selling, general and administrative expenses:

Other long-lived asset impairment (2)

$

8,383

2.4

%

$

6,303

$

0.06


Total charges impacting selling, general
and administrative expenses


$


8,383


2.4


%


$


6,303


$


0.06



(1)


Includes only significant charges related to the pandemic. Less significant charges that may have been incurred are not reflected in the table above.



(2)

 


Includes impairment on capitalized implementation costs related to our cloud computing arrangements and other technology-related assets.

 


Summary of Significant Charges (1)


Thirty-Nine Weeks Ended


October 31, 2020


Amount, pre-tax (2)


% of Net Sales


Amount, after-tax


Per share impact


(dollars in thousands, except per share amounts)

Gross margin:

Inventory write-offs

$

55,357

5.9

%

$

34,107

$

0.29

Long-lived store asset impairment (2)

18,493

2.0

13,905

0.12

Right of use asset impairment

2,442

0.3

1,836

0.02

Total significant charges impacting gross margin

76,292

8.2

49,848

0.43

Selling, general and administrative expenses:

Other long-lived asset impairment (3)

8,383

0.9

6,303

0.06

Total charges impacting selling, general
and administrative expenses

8,383

0.9

6,303

0.06

Goodwill and intangible impairment:

Goodwill impairment

80,414

8.6

72,900

0.63

Indefinite-lived asset impairment

32,766

3.5

24,637

0.21

Total goodwill and intangible impairment
charges

113,180

12.1

97,537

0.84


Total significant charges


$


197,855


21.2


%


$


153,688


$


1.33



(1)


Includes only significant charges related to the pandemic. Less significant charges that may have been incurred are not reflected in the table above.



(2)

 


Primarily includes impairment on leasehold improvements at certain underperforming stores.



(3)


Includes impairment on capitalized implementation costs related to our cloud computing arrangements and other technology-related assets.




Net Sales


For the third quarter, net sales were $351.4 million, an improvement of 14.8% from the second quarter, reflecting robust digital performance and rebounding store revenues. Sales decreased approximately 27.5% from last year’s third quarter, reflecting a decline in store sales as well as the impact of 63 net permanent store closures since last year’s third quarter, partially offset by double-digit growth in digital sales.




Comparable Sales




(1)



Thirteen Weeks Ended


October 31, 2020


November 2, 2019

Chico’s

(32.3)

%

(3.6)

%

White House Black Market

(28.7)

(5.7)

Soma

10.5

11.3


Total Company

(24.1)

(2.2)



(1)

 


The Company is not providing comparable sales figures for the thirty-nine weeks ended October 31, 2020 as it is not a meaningful measure due to the significant impact of store closures during the first half of fiscal 2020 as a result of the pandemic.




Gross Margin


For the third quarter, gross margin was $77.2 million, or 22.0% of net sales, up 740 basis points from the second quarter. Gross margin in last year’s third quarter was $171.0 million, or 35.3% of net sales. The third quarter year-over-year decrease in gross margin rate primarily reflects deleverage of fixed occupancy costs as well as lower maintained margin in the third quarter. Lower maintained margin in part reflects the impact of our Semi-Annual Sale which was extended an additional week due to the timing of Labor Day this year.




Selling, General and Administrative Expenses


For the third quarter, SG&A expenses were $153.1 million, or 43.6% of net sales, compared to $180.6 million, or 37.3% of net sales, for last year’s third quarter. The $27.5 million decrease in SG&A expenses reflects the Company’s ongoing expense reduction initiatives to align its cost structure with sales, partially offset by the impact of pre-tax impairment charges of $8.4 million, or 2.4% of net sales, related to other long-lived assets.




Income Taxes


For the third quarter, the effective tax rate was 26.9% compared to 14.7% for last year’s third quarter. The 26.9% effective tax rate includes the annual benefit of the fiscal 2020 pre-tax loss due to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which is slightly offset by the impact of nondeductible book goodwill impairment charges. The 14.7% effective tax rate for last year’s third quarter was primarily the result of an income tax benefit on that third quarter’s operating loss, offset by an unfavorable fiscal 2018 provision-to-return adjustment, and a valuation allowance on certain deferred tax assets for charitable contributions with limitations.



Cash, Marketable Securities and Debt

At the end of the third quarter, cash and marketable securities totaled $145.2 million. Debt at the end of the third quarter totaled $149.0 million, remaining unchanged from the end of the first quarter of fiscal 2020.


Inventories

At the end of the third quarter, inventories totaled $256.5 million compared to $277.5 million at the end of last year’s third quarter. This $20.9 million, or 7.5%, decrease reflects inventory and assortments better aligned to consumer demand.




Fiscal 2020 Fourth-Quarter Outlook


Given the ongoing market disruption caused by the pandemic and related uncertainty on timing and extent of the market recovery, the Company is not providing fiscal 2020 fourth-quarter guidance at this time.




Conference Call Information


The Company is hosting a live conference call on Tuesday, November 24, 2020 beginning at 8:00 a.m. ET to review the operating results for the third quarter. The conference call is being webcast live over the Internet, which you may access in the Investors section of the Company’s corporate website, www.chicosfas.com. A replay of the webcast will remain available online for one year at http://chicosfas.com/investors/events-and-presentations

The phone number for the call is 1-877-883-0383. International callers should use 1-412-902-6506. The Elite Entry number, 0566754, is required to join the conference call. Interested participants should call 10-15 minutes prior to the 8:00 a.m. start to be placed in queue.

ABOUT CHICO’S FAS, INC.

Chico’s FAS is a Florida-based fashion company founded in 1983 on Sanibel Island, Fla. The Company reinvented the fashion retail experience by creating fashion communities anchored by service, which put the customer at the center of everything we do. As one of the leading fashion retailers in North America, Chico’s FAS is a company of three unique brands – Chico’s®, White House Black Market® and Soma® – each thriving in their own white space, founded by women, led by women, providing solutions that millions of women say give them confidence and joy.

Our Company has a passion for fashion, and each day, we provide clothing, shoes and accessories, intimate apparel and expert styling in our brick-and-mortar boutiques, digital online boutiques and through Style Connect, the Company’s proprietary digital styling tool that enables customers to conveniently shop wherever, whenever and however they prefer.

As of October 31, 2020, the Company operated 1,310 stores in the U.S. and sold merchandise through 68 international franchise locations in Mexico and 2 domestic franchise airport locations. The Company’s merchandise is also available at www.chicos.com, www.chicosofftherack.com, www.whbm.com, www.soma.com and www.mytelltale.com as well as through third-party channels.

To learn more about Chico’s FAS, visit www.chicosfas.com. The information on our corporate website is not, and shall not be deemed to be, a part of this press release or incorporated into our federal securities law filings.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements, including without limitation the quote from Ms. Langenstein and the section captioned “Business Highlights,” relate to expectations and projections regarding the Company’s future performance and may include the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” “outlook,” “project,” “should,” “strategy,” “potential”, “confident” and similar terms. These forward-looking statements are based largely on information currently available to our management and on our current expectations, assumptions, plans, estimates, judgments and projections about our business and our industry, and are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those expressed or implied by such forward-looking statements. Although we believe our expectations are based on reasonable estimates and assumptions, there is no assurance that our expectations will, in fact, occur or that our estimates or assumptions will be correct, and we caution investors and all others not to place undue reliance on such forward-looking statements. Factors that could cause actual results to differ include, but are not limited to: the effects of the COVID-19 pandemic and uncertainties about its depth and duration, including any resurgence, as well as the impacts to general economic conditions and the economic slowdown affecting consumer behavior and discretionary spending (before and after the COVID-19 pandemic) and any temporary store closures or other restrictions (including reduced hours or capacity) due to government mandates; the effectiveness of store reopenings, cost reduction initiatives (including our ability to effectively restructure our lease portfolio to obtain future rent relief), the extent, availability and effectiveness of any COVID-19 stimulus packages or loan programs, including the CARES Act, the ability of our third-party business partners, including our suppliers, logistics providers, vendors and landlords, to meet their obligations to us in light of financial stress, staffing shortages, liquidity challenges, bankruptcy filings by other industry participants and other disruptions due to the COVID-19 pandemic, the impact of the COVID-19 pandemic on our manufacturing operations in China, and trends in consumer behavior and spending during and after the end of the pandemic; our ability to successfully implement any alternatives that we pursue including our ability to achieve the cost savings and additional liquidity described in this release; government actions and policies; increases in unemployment rates and taxes; local, regional, national and international economic conditions; changes in the general economic and business environment; changes in the general or specialty retail or apparel industries, including the extent of the market demand and overall level of spending for women’s private branded clothing and related accessories; the exiting of store operations in Canada and other future permanent store closures; the effectiveness of our brand strategies, awareness and marketing programs; the ability to successfully execute and achieve the expected results of our business strategies and particular strategic initiatives (including, but not limited to, the Company’s digital strategy, organizational restructure, retail fleet optimization plan and three operating priorities which are driving stronger sales through improved product and marketing; optimizing the customer journey by simplifying, digitizing and extending the Company’s unique and personalized service; and transforming sourcing and supply chain operations to increase product speed to market and improve quality), sales initiatives and multi-channel strategies; customer traffic; our ability to appropriately manage our inventory and allocation processes; our ability to leverage inventory management and targeted promotions; the successful recruitment of leadership and the successful transition of members of our senior management team; uncertainties regarding future unsolicited offers to buy the Company and our ability to respond effectively to them as well as to actions of activist shareholders and others; changes in the political environment that create consumer uncertainty; the risk that our investments in merchandise or marketing initiatives may not deliver the results we anticipate; significant changes to product import and distribution costs (such as unexpected consolidation in the freight carrier industry, and the ability to remain competitive with customer shipping terms and costs pertaining to product deliveries and returns); new or increased taxes or tariffs that could impact, among other things, our sourcing from foreign suppliers; the risk that future legislation may prohibit certain imports from China; and significant shifts in consumer behavior. Other risk factors are detailed from time to time in the Company’s Quarterly Reports on Form 10-Q, Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. These factors should be considered in evaluating forward–looking statements contained herein. There can be no assurance that the actual future results, performance, or achievements expressed or implied by such forward-looking statements will occur. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that projected results expressed or implied in such statements will not be realized.

 

(Financial Tables Follow)

Investor Relations Contact:

Tom Filandro

ICR, Inc.
(646) 277-1235
[email protected]

Media Relations Contact:
Pashen Black
Director of Corporate Public Relations
(239) 218-3388
[email protected]

 

Chico’s FAS, Inc. • 11215 Metro Parkway • Fort Myers, Florida 33966 • (239) 277-6200

 


Chico’s FAS, Inc. and Subsidiaries

Condensed Consolidated Statements of Loss

(Unaudited)

(in thousands, except per share amounts)


Thirteen Weeks Ended


Thirty-Nine Weeks Ended


October 31, 2020


November 2, 2019


October 31, 2020


November 2, 2019


Amount


% of

Sales


Amount


% of

Sales


Amount


% of

Sales


Amount


% of

Sales


Net Sales:

Chico’s

$

163,847

46.6

%

$

249,973

51.5

%

$

434,868

46.4

%

$

795,599

52.6

%

White House Black Market

104,024

29.6

154,941

32.0

270,197

28.8

455,695

30.2

Soma

83,545

23.8

79,792

16.5

232,789

24.8

259,496

17.2


Total Net Sales

351,416

100.0

484,706

100.0

937,854

100.0

1,510,790

100.0

Cost of goods sold

274,252

78.0

313,668

64.7

827,019

88.2

980,299

64.9


Gross Margin

77,164

22.0

171,038

35.3

110,835

11.8

530,491

35.1

Selling, general and administrative
expenses

153,096

43.6

180,586

37.3

390,571

41.6

536,977

35.5

Goodwill and intangible impairment

0.0

0.0

113,180

12.1

0.0


Loss from Operations

(75,932)

(21.6)

(9,548)

(2.0)

(392,916)

(41.9)

(6,486)

(0.4)

Interest (expense) income, net

(536)

(0.2)

25

0.0

(1,387)

(0.1)

79

0.0


Loss before Income Taxes

(76,468)

(21.8)

(9,523)

(2.0)

(394,303)

(42.0)

(6,407)

(0.4)

Income tax (benefit) provision

(20,600)

(5.9)

(1,400)

(0.3)

(113,300)

(12.0)

2,000

0.2


Net Loss

$

(55,868)

(15.9)

%

$

(8,123)

(1.7)

%

$

(281,003)

(30.0)

%

$

(8,407)

(0.6)

%


Per Share Data:

Net loss per common share – basic

$

(0.48)

$

(0.07)

$

(2.43)

$

(0.07)

Net loss per common and common
equivalent share – diluted

$

(0.48)

$

(0.07)

$

(2.43)

$

(0.07)

Weighted average common shares
outstanding – basic

116,174

114,997

115,887

114,744

Weighted average common and
common equivalent shares outstanding
– diluted

116,174

114,997

115,887

114,744

Dividends declared per share

$

$

$

0.0900

$

0.2625

 

 


Chico’s FAS, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)


October 31, 2020


February 1, 2020


November 2, 2019


ASSETS


Current Assets:

Cash and cash equivalents

$

126,497

$

63,972

$

70,188

Marketable securities, at fair value

18,667

63,893

57,253

Inventories

256,542

246,737

277,473

Prepaid expenses and other current assets

36,766

41,069

44,722

Income taxes receivable

56,774

7,131

8,876


Total Current Assets

495,246

422,802

458,512


Property and Equipment, net

256,715

315,382

323,591


Right of Use Assets

582,074

648,397

664,052


Other Assets:

Goodwill

16,360

96,774

96,774

Other intangible assets, net

6,164

38,930

38,930

Other assets, net

37,839

20,374

18,511


Total Other Assets

60,363

156,078

154,215

$

1,394,398

$

1,542,659

$

1,600,370


LIABILITIES AND SHAREHOLDERS’ EQUITY


Current Liabilities:

Accounts payable

$

147,354

$

134,204

$

151,664

Current lease liabilities

208,351

157,043

155,403

Other current and deferred liabilities

123,474

114,498

112,456


Total Current Liabilities

479,179

405,745

419,523


Noncurrent Liabilities:

Long-term debt

149,000

42,500

46,250

Long-term lease liabilities

509,118

555,922

578,971

Other noncurrent and deferred liabilities

14,284

8,188

8,512

Deferred taxes

52

212

3,999


Total Noncurrent Liabilities

672,454

606,822

637,732


Commitments and Contingencies


Shareholders’ Equity:

Preferred stock

Common stock

1,199

1,184

1,186

Additional paid-in capital

496,993

492,129

490,281

Treasury stock, at cost

(494,395)

(494,395)

(494,395)

Retained earnings

238,877

531,602

546,461

Accumulated other comprehensive gain (loss)

91

(428)

(418)


Total Shareholders’ Equity

242,765

530,092

543,115

$

1,394,398

$

1,542,659

$

1,600,370

 

 


Chico’s FAS, Inc. and Subsidiaries

Condensed Consolidated Cash Flow Statements

(Unaudited)

(in thousands)


Thirty-Nine Weeks Ended


October 31, 2020


November 2, 2019


Cash Flows from Operating Activities:

Net loss

$

(281,003)

$

(8,407)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Goodwill and intangible impairment

113,180

Inventory write-offs

59,687

7,035

Depreciation and amortization

48,536

67,876

Non-cash lease expense

163,072

160,363

Exit of frontline Canada operations

498

Right of use asset impairment

3,236

Loss on disposal and impairment of property and equipment, net

27,554

225

Deferred tax benefit

(18,409)

(778)

Share-based compensation expense

5,600

5,353

Changes in assets and liabilities:

Inventories

(71,004)

(49,290)

Prepaid expenses and other assets

(2,704)

(13,899)

Income tax receivable

(49,643)

3,038

Accounts payable

12,923

8,261

Accrued and other liabilities

19,097

(2,600)

Lease liability

(94,500)

(169,970)

Net cash (used in) provided by operating activities

(63,880)

7,207


Cash Flows from Investing Activities:

Purchases of marketable securities

(5,351)

(35,020)

Proceeds from sale of marketable securities

50,500

39,967

Purchases of property and equipment

(9,537)

(22,126)

Net cash provided by (used in) investing activities

35,612

(17,179)


Cash Flows from Financing Activities:

Proceeds from borrowings

255,500

Payments on borrowings

(149,000)

(11,250)

Payments of debt issuance costs

(4,279)

Proceeds from issuance of common stock

412

1,088

Dividends paid

(10,701)

(30,992)

Payments of tax withholdings related to share-based awards

(1,133)

(2,549)

Net cash provided by (used in) financing activities

90,799

(43,703)

Effects of exchange rate changes on cash and cash equivalents

(6)

(265)

Net increase (decrease) in cash and cash equivalents

62,525

(53,940)


Cash and Cash Equivalents, Beginning of period

63,972

124,128


Cash and Cash Equivalents, End of period

$

126,497

$

70,188

 

Supplemental Detail on Net Loss Per Common Share Calculation

In accordance with accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of loss per common share pursuant to the “two-class” method. For the Company, participating securities are comprised entirely of unvested restricted stock awards granted prior to fiscal 2020 and performance-based restricted stock units (“PSUs”) that have met their relevant performance criteria.

Net loss per share is determined using the two-class method when it is more dilutive than the treasury stock method. Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during the period, including participating securities. Diluted net loss per share reflects the dilutive effect of potential common shares from non-participating securities such as restricted stock awards granted after fiscal 2019, stock options, PSUs and restricted stock units. For the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019, potential common shares were excluded from the computation of diluted loss per share to the extent they were antidilutive.

The following unaudited table sets forth the computation of net loss per basic and diluted share shown on the face of the accompanying condensed consolidated statements of loss (in thousands, except per share amounts):


Thirteen Weeks Ended


Thirty-Nine Weeks Ended


October 31, 2020


November 2, 2019


October 31, 2020


November 2, 2019


Numerator

Net loss

$

(55,868)

$

(8,123)

$

(281,003)

$

(8,407)

Net income and dividends declared allocated to
participating securities

(173)

Net loss available to common shareholders

$

(55,868)

$

(8,123)

$

(281,176)

$

(8,407)


Denominator

Weighted average common shares outstanding –
basic

116,174

114,997

115,887

114,744

Dilutive effect of non-participating securities

Weighted average common and common
equivalent shares outstanding – diluted

116,174

114,997

115,887

114,744


Net loss per common share:

Basic

$

(0.48)

$

(0.07)

$

(2.43)

$

(0.07)

Diluted

$

(0.48)

$

(0.07)

$

(2.43)

$

(0.07)

 

 


Chico’s FAS, Inc. and Subsidiaries


Store Count and Square Footage

Thirteen Weeks Ended October 31, 2020


(Unaudited)


August 1, 2020


New Stores


Closures


October 31, 2020


Store Count:

Chico’s frontline boutiques

520

(2)

518

Chico’s outlets

123

123

WHBM frontline boutiques

354

1

(1)

354

WHBM outlets

56

56

Soma frontline boutiques

242

(1)

241

Soma outlets

18

18


Total Chico’s FAS, Inc.

1,313

1

(4)

1,310


August 1, 2020


New Stores


Closures


Other Changes in
SSF


October 31, 2020


Net Selling Square Footage (SSF):

Chico’s frontline boutiques

1,416,966

(3,987)

1,412,979

Chico’s outlets

309,921

309,921

WHBM frontline boutiques

830,363

2,196

(2,810)

829,749

WHBM outlets

117,484

117,484

Soma frontline boutiques

456,606

(2,049)

454,557

Soma outlets

34,329

34,329


Total Chico’s FAS, Inc.

3,165,669

2,196

(8,846)

3,159,019

As of October 31, 2020, the Company’s franchise operations consisted of 68 international retail locations in Mexico and 2 domestic airport locations.


 


Chico’s FAS, Inc. and Subsidiaries

Store Count and Square Footage

Thirty-Nine Weeks Ended October 31, 2020

(Unaudited)


February 1, 2020


New Stores


Closures


October 31, 2020


Store count:

Chico’s frontline boutiques

525

(7)

518

Chico’s outlets

123

123

Chico’s Canada

4

(4)

WHBM frontline boutiques

362

1

(9)

354

WHBM outlets

59

(3)

56

WHBM Canada

6

(6)

Soma frontline boutiques

244

(3)

241

Soma outlets

18

18


Total Chico’s FAS, Inc.

1,341

1

(32)

1,310


February 1, 2020


New Stores


Closures


Other Changes in
SSF


October 31, 2020


Net Selling Square Footage (SSF):

Chico’s frontline boutiques

1,429,592

(19,050)

2,437

1,412,979

Chico’s outlets

309,921

309,921

Chico’s Canada

9,695

(9,695)

WHBM frontline boutiques

848,778

2,196

(20,391)

(834)

829,749

WHBM outlets

123,735

(6,504)

253

117,484

WHBM Canada

15,588

(15,588)

Soma frontline boutiques

460,153

(5,308)

(288)

454,557

Soma outlets

34,329

34,329


Total Chico’s FAS, Inc.

3,231,791

2,196

(76,536)

1,568

3,159,019

As of October 31, 2020, the Company’s franchise operations consisted of 68 international retail locations in Mexico and 2 domestic airport locations.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/chicos-fas-inc-reports-third-quarter-results-301179347.html

SOURCE Chico’s FAS, Inc.

TerrAscend Receives Permit to Dispense Medical Cannabis at its First New Jersey Dispensary

Canada NewsWire

Sales to Commence Immediately at The Apothecarium Phillipsburg

NEW YORK and TORONTO, Nov. 24, 2020 /CNW/ – TerrAscend Corp. (“TerrAscend”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that it has received the final permit from the NJ Department of Health (“NJ DOH”) to dispense medical cannabis from its first dispensary in New Jersey. The 3,500 square-foot dispensary, located at 55 South Main Street in downtown Phillipsburg, is situated in the historic Phillipsburg National Bank & Trust building and is the first Alternative Treatment Center (“ATC”) in Warren County.

The Apothecarium Phillipsburg will commence serving medical patients today, by appointment only, followed by an official grand opening on November 30, 2020. The new full service medical dispensary offers a broad range of patient education resources, including multiple private consultation rooms and highly trained wellness consultation staff to assist patients and caregivers. TerrAscend operates a cultivation and manufacturing facility located in Boonton, New Jersey (the “Boonton Facility”) and expects to open three ATC’s in the Northern region of New Jersey.

“I’m thrilled to open the first of our three Apothecarium retail dispensaries in New Jersey and look forward to providing medical cannabis patients with access to the essential medicine they need,” said Jason Ackerman, CEO of TerrAscend. “I’m proud of our team for their efforts in achieving this milestone and look forward to providing outstanding care and service to support the health and well-being of New Jersey residents.”

New Jersey, which recently voted to legalize a forthcoming adult-use cannabis program, is the 11th largest state in the U.S. by population, with nearly 9 million residents, and more than 94,000 registered medical cannabis patients. The Company expects to open the remaining two ATCs, or dispensaries in 2021 upon regulatory approval. The Northern region of New Jersey has the highest density of patients in the state, and TerrAscend is one of four permit holders. 

Greg Rochlin, CEO of TerrAscend Northeast, added, “With production at our Boonton cultivation and manufacturing facility scaling up, we have assembled a comprehensive portfolio of high-quality cannabis products and brands to serve this rapidly growing market. As with all of our Apothecarium dispensaries, we are committed to providing patients with quality medical cannabis in a welcoming environment with empathy, education, and ongoing personal support.”

The Apothecarium Phillipsburg offers a wide variety of medical cannabis products, including dried flower, vaporizable and activated oils, pre-rolls, capsules, tinctures, topicals, and a comprehensive selection of smoking and ancillary products. Additionally, the new dispensary carries TerrAscend’s recently launched Kind Tree branded cannabis products grown at the Company’s Boonton Facility. Like other Apothecarium stores, the modern, tech-forward aesthetic is designed to be both comfortable and easy to navigate for seniors, first-time dispensary visitors, and patients with serious medical conditions.

To comply with new state COVID-19 restrictions and CDC guidelines, in-person visits require pre-registration and only patients with appointments are permitted to shop in the store. The dispensary also offers online ordering and in-store pickup, with curbside pickup and delivery service launching shortly. All Apothecarium dispensaries have implemented strict safety standards to protect guests and team members. The Company’s New Jersey safety protocols include strict social distancing inside and outside the dispensaries, a mask requirement for everyone inside the dispensaries, no contact check-in procedures and ongoing sanitizing throughout the day.

For operating hours, visit The Apothecarium website and shop by location at apothecarium.com.

About TerrAscend

TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, and California in addition to operating as a licensed producer in Canada. TerrAscend operates an award-winning chain of Apothecarium dispensary retail locations as well as scaled cultivation, processing and manufacturing facilities on both the East and West coasts. TerrAscend’s best-in-class cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use market. The Company owns a number of synergistic businesses and brands, including The Apothecarium, Ilera Healthcare, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com.

Forward Looking Information

This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and include statements with respect to future revenue and profits. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, current and future market conditions; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States; and the risk factors set out in the Company’s most recently filed MD&A, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.

The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend’s operations and financial performance.

SOURCE TerrAscend

Lightspeed Appoints Manon Brouillette to its Board of Directors

PR Newswire

Accomplished CEO joins the global commerce company as it continues to propel SMBs through the next era of digital transformation

MONTRÉAL, Nov. 24, 2020 /PRNewswire/ – Lightspeed POS Inc., a global commerce leader, today announced the appointment of distinguished technology CEO Manon Brouillette to its board of directors. Brouillette brings valuable insights and a fresh perspective as Lightspeed actively rolls out new innovations in cloud-based technology for SMBs in the retail, hospitality, and golf industries. As one of Canada’s 100 Most Powerful Women, she will provide superior expertise as a former executive who led telecommunications giant, Videotron.

In her previous role as CEO of Videotron, Brouillette spearheaded a series of large-scale strategic rollouts until January 2019. This included Videotron’s entry into the wireless market ($1B investment), making the company Canada’s fastest-growing carrier, and transforming the cable television business model into a multiplatform, on-demand and linear video service. Since then, she has worked as an advisor to venture capital and private equity firms, and sits on the board of Altice USA (NYSE:ATUS), National Bank of Canada (TSX:NA), Sonder and Ipsy.

“I’ve had the unique opportunity to closely watch Lightspeed scale its operations on a global level,” said Brouillette. “I’m thrilled to join Lightspeed’s board of directors during this pivotal moment in the company’s history. I’ve long admired businesses that make up the fabric of their community, and I am eager to support Lightspeed’s mission to help complex SMBs accelerate business growth with the adoption of industry-leading digital solutions.”

“We are truly grateful to have Manon Brouillette join our board of directors with her extensive experience establishing and growing technology leaders,” said Dax Dasilva, Lightspeed Founder and CEO. “Brouillette’s esteemed career transforming corporations for a new digital era adds another imperative voice of leadership that will drive our business forward.”

Further demonstrating the company’s growth, Lightspeed recently announced its entry into a definitive purchase agreement to complete the landmark acquisition of ShopKeep, a leading cloud commerce platform provider based in New York City. Lightspeed has also released new innovations to support SMBs as they future-proof their businesses. This includes the recent launch of Lightspeed Subscriptions, a module that allows retailers to collect recurring revenue, and Lightspeed Capital powered by Stripe, a resource that provides select retailers with quick and easy financing. Within hospitality, this includes Lightspeed eCom for Restaurant, a solution helping food service users seamlessly transition their businesses online, and Lightspeed Order Ahead, a cost-efficient online ordering management system designed to facilitate takeout for restaurateurs seeking new revenue streams.

About Lightspeed

Lightspeed (NYSE and TSX: LSPD) powers complex small and medium-sized businesses with its cloud-based, omnichannel commerce platforms in over 100 countries. With smart, scalable and dependable point of sale systems, Lightspeed provides all-in-one solutions that drive innovation and digital transformation within the retail, hospitality and golf industries. Its product suite enables SMBs to sell across channels, manage operations, engage with consumers, accept payments and ultimately grow their business.

Headquartered in Montreal, Canada, Lightspeed is trusted by favorite local businesses worldwide, where communities go to shop and dine. Lightspeed has staff located in Canada, USA, Europe, and Australia.

Forward Looking Statements

This news release may include forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those risk factors identified in our most recent Management’s Discussion and Analysis of Financial Condition and Results of Operations, under “Risk Factors” in our most recent Annual Information Form, and in our other filings with the Canadian Securities regulatory authorities and the U.S. Securities and Exchange Committee, all of which are available under our profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Readers are cautioned to consider these and other factors carefully when making decisions with respect to Lightspeed’s subordinate voting shares and not to place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. Except as may be expressly required by applicable law, Lightspeed does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please visit: www.lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and Twitter

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/lightspeed-appoints-manon-brouillette-to-its-board-of-directors-301179309.html

SOURCE Lightspeed POS Inc.

iClick Interactive Asia Group Limited Reports 2020 Third-Quarter Unaudited Financial Results

– Reaches Another Record Quarter in Key Financials –

– Enterprise Solutions Business Extends Record-breaking Growth for Four Consecutive Quarters –

PR Newswire

HONG KONG, Nov. 24, 2020 /PRNewswire/ — iClick Interactive Asia Group Limited (“iClick” or the “Company”) (NASDAQ: ICLK), an independent online marketing and enterprise data solutions provider in China, today announced unaudited financial results for the third quarter ended September 30, 2020.


Three Months Ended September 30,


2020


2019


Percentage


change


(US$ in thousands)


(Unaudited)


Financial Metrics:

Revenue

Marketing solutions

60,124

51,555

17%

Enterprise solutions

8,781

2,613

236%

Total revenue

68,905

54,168

27%

Gross profit

20,121

13,557

48%

Net (loss)/income

(7,097)

863

N/M

Adjusted EBITDA[1]

4,701

1,446

225%

Adjusted net income/(loss)[1]

2,424

(517)

N/M

Diluted adjusted net income/(loss) per ADS[1]

0.03

(0.01)

N/M


Operating Metrics:

Gross billing

167,084

180,182

(7)%


[1] For more details on these non-GAAP financial measures, please see the tables captioned “Unaudited
Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.”

“We have delivered record revenue and gross profit in the third quarter of 2020, as China continues to recover from the coronavirus pandemic,” said Jian “T.J.” Tang, iClick’s Chief Executive Officer and Co-Founder. “Revenue for the third quarter was US$68.9 million, an increase of 27% from the same period of last year, while our gross profit rose to US$20.1 million, up 48% on a year-over-year basis. We recorded a net loss of US$7.1 million, primarily due to the fair value losses of convertible notes and derivative liabilities, as our stock price performance remained strong during the third quarter of 2020. However, our adjusted EBITDA increased by 225% year-over-year to US$4.7 million. In addition, we had adjusted net income of US$2.4 million in the third quarter of 2020. This marks the fourth consecutive quarter of adjusted net income. These solid results of operations are strong evidence of our brand customers’ recognition of the value added by our data-driven solutions.

“These strong financial results were driven by continued growth in both our Marketing Solutions and Enterprise Solutions segments. The Marketing Solution segment, our core business, reached record revenue with a 17% year-over-year increase to US$60.1 million. Just as encouraging, the higher-margin Enterprise Solutions segment also set a revenue record with a 236% increase year-over-year to US$8.8 million in the third quarter of 2020. This was the fourth consecutive quarter of sequential growth in the Enterprise Solutions segment, and we reiterate our optimism regarding the future growth potential of this business, driven by a robust outlook for ‘smart retail’.”

“Following the equity financing in September, our cash position has become stronger, and we are well-capitalized not only to execute our business plan even better but also to seek M&A opportunities more actively as part of our growth strategy,” T.J. continued. “Lastly, the coronavirus epidemic has brought rapid changes to online consumer behaviour in China and we will continue to monitor the pandemic’s impact on our operations and keep our investors informed.”

Third Quarter 2020 Results:

Revenue for the third quarter of 2020 grew to US$68.9 million, up approximately 27% from US$54.2 million for the same period of the prior year, attributable to the increase in contributions from existing Marketing Solutions and Enterprise Solutions.

Revenue from Marketing Solutions grew to US$60.1 million for the third quarter of 2020, up approximately 17% from US$51.6 million for the third quarter of 2019, primarily as a result of growing market demand from specified action marketing campaigns.

Revenue from Enterprise Solutions was US$8.8 million for the third quarter of 2020, up approximately 236% from US$2.6 million for the third quarter of 2019, primarily due to the increasing need for online and offline consumers’ behavioral data integration.

Gross profit for the third quarter of 2020 was US$20.1 million, representing an approximately 48% increase compared with US$13.6 million for the third quarter of 2019, mainly due to continual expansion of the Company’s Marketing Solutions and contribution from higher-margin Enterprise Solutions.

Total operating expenses were US$20.0 million for the third quarter of 2020, compared with US$15.8 million for the third quarter of 2019. Higher expenses are attributed to the increase in share-based compensation expense of US$1.2 million and an additional expected credit loss provision of US$2.6 million in view of the uncertainties associated with COVID-19.

Operating income was US$0.1 million for the third quarter of 2020, compared with an operating loss of US$2.3 million for the third quarter of 2019. This improvement was a result of the strong growth in gross profit, which was partially offset by the increase in operating expenses.

Net loss totalled US$7.1 million for the third quarter of 2020, compared with net income of US$0.9 million for the third quarter of 2019. This was mainly because of (i) the fair value losses of convertible notes of US$1.4 million in the third quarter of 2020, compared to the US$2.9 million fair value gain of convertible notes in the third quarter of 2019, and (ii) the fair value losses of derivative liabilities of US$6.3 million in the third quarter of 2020.

Net loss attributable to the Company’s shareholders per basic and diluted ADS for the third quarter of 2020 were US$0.08, compared with a net income attributable to the Company’s shareholders per basic ADS of US$0.02, and a net loss attributable to the Company’s shareholders per diluted ADS of US$0.02 for the third quarter of 2019.

Adjusted EBITDA for the third quarter of 2020 rose to US$4.7 million, compared with US$1.4 million for the third quarter of 2019, mainly due to the strong growth in gross profit of US$6.6 million, which was partially offset by a US$4.2 million increase in operating expenses. For a reconciliation of the Company’s adjusted EBITDA from net (loss)/income, its most comparable GAAP measure, please refer to “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Adjusted net income for the third quarter of 2020 was US$2.4 million, compared with an adjusted net loss of US$0.5 million in the third quarter of 2019. For a reconciliation of the Company’s adjusted net income/(loss) from net (loss)/income, its most comparable GAAP measure, please refer to “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Gross billing
[2] was US$167.1 million for the third quarter of 2020, representing a 7% decrease compared with US$180.2 million for the third quarter of 2019. This decline was primarily due to the Company’s efforts to optimize its client base to achieve better credit control and to retain and attract customers with a strong financial position amid macroeconomic uncertainties.

As of September 30, 2020, the Company had cash and cash equivalents, time deposits and restricted cash of US$128.0 million, compared with US$61.1 million as of December 31, 2019.

Share Repurchase Program

On January 15, 2020, the Company announced a share repurchase program in which it may purchase its own ADSs with an aggregate value of up to US$10.0 million over the 12-month period ending on December 29, 2020. As of September 30, 2020, the aggregate value of purchased shares was approximately US$0.7 million.


[2] Gross billing is defined as the aggregate dollar amount that clients pay the Company after deducting rebates paid and discounts given to.

Outlook

Based on the information available as of the date of this press release, iClick provides the following outlook for the fourth quarter of 2020 and updated guidance for the full year given actual results from the first three quarters of fiscal 2020:

Fourth Quarter 2020:

  • Revenue is estimated to be between US$73 million and US$76 million.
  • Revenue from Enterprise Solutions is estimated to be between US$8.5 million and US$10.5 million.
  • Gross profit is estimated to be between US$20.5 million and US$23.5 million.

Full Year 2020:

  • Revenue is estimated to be between US$240 million and US$260 million.
  • Gross profit is estimated to be between US$70 million and US$75 million.
  • Adjusted EBITDA is estimated to be between US$14 million and US$17 million.

The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, expected foreign exchange fluctuation, and customer demand, which are all subject to change. Please also refer to the factors set out under the section titled “Safe Harbor Statement.”

We noted that the advertising budgets recovered across-the-board during the third quarter, as a result of the relaxation of restrictions on economic and social life due to a slowdown of COVID-19 cases in China. Based on the current commercial environment, we anticipate that brands may allocate more of their advertising budgets to mobile and online targeted marketing, with the potential to benefit our mobile and performance-focused Marketing Solutions business. Brands may also see the importance of online and offline consumer behavioural data integration and analysis, which may favour our Enterprise Solutions business in the long run.

With iClick’s diversified customer base of stable, top-tier brands, and the Chinese government’s efforts to contain the spread of the coronavirus, we remain cautiously optimistic for the rest of the year and 2021. However, outbreaks of COVID-19 around the world may continue to impact market conditions and potentially trigger a longer period of global economic slowdown. This could affect the overall sentiment and advertising budgets of our branding customers, which in turn may impact our Marketing Solution business in the short term. The rapid development and fluidity of the current situation precludes any prediction as to the ultimate adverse impact of COVID-19. Management will continue to closely monitor the outbreak’s impact on our operations and financial results this year and will particularly focus on business retention and accounts receivable recoverability.

Conference Call

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on November 24, 2020 (9:00 PM Beijing/Hong Kong time on November 24, 2020). A live and archived webcast of the conference call will be available on iClick’s investor relations website at http://ir.i-click.com.

Dial-in details for the conference call are as follows:

United States:

+1-888-346-8982

International:

+1-412-902-4272

Hong Kong:

+852-800-905945

Mainland China:

+86-4001-201203

Participants please ask to join the iClick Interactive Asia Group Limited conference call.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until December 1, 2020:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Canada:

+1-855-669-9658

Replay Access Code:

10149740

About iClick Interactive Asia Group Limited

iClick Interactive Asia Group Limited (NASDAQ: ICLK) is an independent online marketing and enterprise data solutions provider that connects worldwide marketers with audiences in China. Built on cutting-edge technologies, our proprietary platform possesses omni-channel marketing capabilities and fulfils various marketing objectives in a data-driven and automated manner, helping both international and domestic marketers reach their target audiences in China. Headquartered in Hong Kong, iClick was established in 2009 and is currently operating in ten locations worldwide including Asia and Europe. For more information, please visit ir.i-click.com.

Non-GAAP Financial Measures

The Company uses adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS, each a non-GAAP financial measure, in evaluating the Company’s operating results and for financial and operational decision-making purposes.

The Company believes that adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS help identify underlying trends in the Company’s business that could otherwise be obscured by the effect of the expenses and gains that the Company includes in net loss. The Company believes that adjusted EBITDA and adjusted net income/(loss) provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s performance and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

Adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS should not be considered in isolation or construed as an alternative to net loss or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

These non-GAAP financial measures were presented with the most directly comparable GAAP financial measures together for facilitating a more comprehensive understanding of operating performance between periods.

Safe Harbor Statement

This announcement contains forward-looking statements, including those related to the Company’s business strategies, operations and financial performance. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s fluctuations in growth; its success in implementing its mobile and new retail strategies, including extending its solutions beyond its core online marketing business; its success in structuring a CRM & Marketing Cloud platform; relative percentage of its gross billing recognized as revenue under the gross and net models; its ability to retain existing clients or attract new ones; its ability to retain content distribution channels and negotiate favourable contractual terms; market competition, including from independent online marketing technology platforms as well as large and well-established internet companies; market acceptance of online marketing technology solutions and enterprise solutions; effectiveness of its algorithms and data engines; its ability to collect and use data from various sources; ability to integrate and realize synergies from acquisitions, investments or strategic partnership; the duration of the COVID-19 outbreak and its potential impact on the Company’s business and financial performance; fluctuations in foreign exchange rates; general economic conditions in China and other jurisdictions where the Company operates; and the regulatory landscape in China and other jurisdictions where the Company operates. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:


In China:


In the United States:


iClick Interactive Asia Group Limited


Core IR

Lisa Li

Tom Caden

Phone: +86-21-3230-3931 #892

Tel: +1-516-222-2560

E-mail: [email protected]

E-mail: [email protected]

(financial tables follow)

 

 


ICLICK INTERACTIVE ASIA GROUP LIMITED


Unaudited Condensed Consolidated Statements of Comprehensive Loss

(US$’000, except share data and per share data, or otherwise noted, unaudited)


Three
 
Months
 
Ended


September
 
30,


Nine
 
Months
 
Ended


September
 
30,


2020


2019


2020


2019


Revenue

68,905

54,168

176,053

142,733

Cost of revenue

(48,784)

(40,611)

(126,054)

(103,190)


Gross profit

20,121

13,557

49,999

39,543


Operating expenses

Research and development expenses

(1,174)

(1,423)

(3,474)

(4,272)

Sales and marketing expenses

(9,035)

(10,569)

(26,151)

(31,437)

General and administrative expenses

(9,819)

(3,856)

(20,946)

(10,694)


Total operating expenses

(20,028)

(15,848)

(50,571)

(46,403)


Operating income/(loss)

93

(2,291)

(572)

(6,860)

Interest expense

(772)

(476)

(1,787)

(1,013)

Interest income

742

110

1,104

324

Other gains, net

1,652

759

3,040

1,971

Fair value losses on derivative liabilities

(6,343)

(11,466)

Fair value (losses)/gain on convertible notes

(1,426)

2,938

(4,433)

946


(Loss)/income before income tax expense

(6,054)

1,040

(14,114)

(4,632)

Share of losses from an equity investee

(16)

(217)

(85)

(231)

Income tax (expense)/benefit

(1,027)

40

(1,347)

13

Net (loss)/income

(7,097)

863

(15,546)

(4,850)

Net loss attributable to noncontrolling interests

545

550

1,642

987


Net (loss)/income attributable to iClick Interactive Asia


   Group Limited

s ordinary shareholders

(6,552)

1,413

(13,904)

(3,863)

Net (loss)/income

(7,097)

863

(15,546)

(4,850)

Other comprehensive income/(loss):

Foreign currency translation adjustment, net of

US$nil tax

3,671

(1,591)

4,283

(1,502)


Comprehensive loss

(3,426)

(728)

(11,263)

(6,352)


Comprehensive loss attributable to noncontrolling


   interests

466

550

1,581

987


Comprehensive loss attributable to iClick Interactive


   Asia Group Limited

(2,960)

(178)

(9,682)

(5,365)


Net (loss)/income per ADS attributable to iClick


   Interactive Asia Group Limited

— Basic

(0.08)

0.02

(0.19)

(0.07)

— Diluted

(0.08)

(0.02)

(0.19)

(0.07)


Weighted average number of ADS used in per


   share calculation:

— Basic

83,847,077

57,573,081

74,377,252

57,273,115

— Diluted

83,847,077

67,184,218

74,377,252

65,915,823

 

 


ICLICK INTERACTIVE ASIA GROUP LIMITED


Unaudited Condensed Consolidated Balance Sheets

(US$’000, except share data and per share data, or otherwise noted, unaudited)


As of


September 30, 2020


As of


December 31, 2019


Assets


Current assets

Cash and cash equivalents, time deposit and restricted cash

128,016

61,116

Accounts receivable, net of allowance for doubtful receivables of US$8,156 and US$3,469 as of

   September 30, 2020 and December 31, 2019 respectively3

139,992

143,971

Other current assets

58,722

40,306


Total current assets

326,730

245,393


Non-current assets

Goodwill

65,710

65,710

Other assets

72,954

10,413


Total non-current assets

138,664

76,123


Total assets

465,394

321,516


Liabilities and equity


Current liabilities

Accounts payable (including accounts payable of the consolidated variable interest entity (“VIE”) and its subsidiaries

   without recourse to the Company of US$651 and US$27 as of September 30, 2020 and December 31, 2019, respectively)

27,443

66,161

Deferred revenue (including deferred revenue of the consolidated VIE and its subsidiaries without recourse to the

   Company of US$1,438 and US$866 as of September 30, 2020 and December 31, 2019, respectively)

26,349

27,089

Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the

   consolidated VIE and its subsidiaries without recourse to the Company of US$1,200 and US$1,802 as of

   September 30, 2020 and December 31, 2019, respectively)

27,842

19,937

Bank borrowings

79,412

36,851

Convertible notes at fair value

49,008

Income tax payable

5,430

3,780

Lease liabilities

954

1,114


Total current liabilities

167,430

203,940


Non-current liabilities

Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and its subsidiaries without

   recourse to the Company of US$176 and US$187 as of September 30, 2020

   and December 31, 2019, respectively)

13,982

1,865

Lease liabilities

1,032

706

Other liabilities

443

449


Total non-current liabilities

15,457

3,020


Total liabilities

182,887

206,960


Equity

Ordinary shares – Class A (US$0.001 par value; 80,000,000 shares authorized as of September 30, 2020 and

   December 31, 2019, respectively; 40,385,058 and 23,870,027 shares issued and outstanding as of

   September 30, 2020 and December 31, 2019, respectively)

40

24

Ordinary shares – Class B (US$0.001 par value; 20,000,000 shares authorized as of September 30, 2020 and

   December 31, 2019, respectively; 4,820,608 shares issued and outstanding as of September 30, 2020 and

   December 31, 2019, respectively)

5

5

Treasury shares (2,129,679 shares and 1,744,873 shares as of September 30, 2020 and

   December 31, 2019, respectively)

(5,346)

(4,858)

Additional paid-in capital

481,022

305,344

Statutory reserves

81

81

Accumulated other comprehensive losses

(3,257)

(7,479)

Accumulated deficit[3]

(208,891)

(191,016)

Total iClick Interactive Asia Group Limited shareholders’ equity

263,654

102,101

Noncontrolling interests

18,853

12,455


Total equity

282,507

114,556


Total liabilities and equity

465,394

321,516


[3] The Company adopted ASC 326 using the modified retrospective method started from January 1, 2020, which changes the impairment model for financial
assets measured at amortized costs by using a new forward-looking “expected loss” model that replaced the “incurred loss” model and resulted in the earlier
recognition of allowances for losses. The adoption of ASC 326 resulted in recognition of allowance for doubtful accounts receivable of US$4.0 million and
a corresponding increase in accumulated losses of US$4.0 million on January 1, 2020, for the cumulative effect of adopting ASC 326. The consolidated
financial information related to periods prior to January 1, 2020 were not restated, and continue to be reported in accordance with previously applicable
GAAP.

 

 


ICLICK INTERACTIVE ASIA GROUP LIMITED


Unaudited Reconciliations of GAAP and Non-GAAP Results

(US$’000, except share data and per share data, or otherwise noted, unaudited)

Adjusted EBITDA represents net (loss)/income before (i) depreciation and amortization, (ii) interest expense, (iii) interest income, (iv) income tax
expense/(benefit), (v) share-based compensation, (vi) fair value losses on derivative liabilities, (vii) fair value (losses)/gain on convertible notes, (viii)
other gains, net, (ix) convertible notes issuance cost, (x) net loss attributable to noncontrolling interests, (xi) share of losses from an equity investee,
(xii) cost related to new business setup or acquisitions, and (xiii) cost related to filing of Form F-3.

The table below sets forth a reconciliation of the Company’s adjusted EBITDA from net (loss)/income for the
periods indicated:


Three
 
Months
 
Ended

September
 
30,


Nine
 
Months
 
Ended

September
 
30,


2020


2019


2020


2019


Net (loss)/income

(7,097)

863

(15,546)

(4,850)

Add/(less):

Depreciation and amortization

1,220

1,637

4,707

5,015

Interest expense

772

476

1,787

1,013

Interest income

(742)

(110)

(1,104)

(324)

Income tax expense/(benefit)

1,027

(40)

1,347

(13)


EBITDA

(4,820)

2,826

(8,809)

841

Add/(less):

Share-based compensation

1,612

431

3,879

1,657

Fair value losses on derivative liabilities

6,343

11,466

Fair value losses/(gain) on convertible notes

1,426

(2,938)

4,433

(946)

Other gains, net[4],[10]

(849)

(265)

(1,022)

(803)

Convertible notes issuance cost[5]

44

Net loss attributable to noncontrolling interests[6]

545

550

1,642

987

Share of losses from an equity investee[7]

16

217

85

231

Cost related to new business setup or acquisitions[8]

352

63

749

Cost related to filing of Form F-3[9]

428

273

428

782


Adjusted EBITDA
[10]

4,701

1,446

12,209

3,498


[4] Other gains, net, have been adjusted out, except for amounts of US$803 thousand, US$494 thousand, US$2,018 thousand, and US$1,168
thousand in relation to government grants for the three months ended September 30, 2020 and 2019 and for the nine months ended September 30,
2020 and 2019, respectively.


[5] Convertible notes issuance cost represents legal and professional fee for the issue of convertible notes.


[6] Net loss attributable to noncontrolling interests has been adjusted back because the Company’s management regularly reviews EBITDA excluding
noncontrolling interests as a measure of its operational performance.


[7] Share of losses from an equity investee represents share of losses incurred by the Company’s Thailand business operated through an equity investee
over which the Company has significant influence, and which is not considered to be a part of the core business that the Company operates through its
consolidated entities.


[8] Cost related to new business setup or acquisition represents transaction cost for setting up Thailand business and other acquisitions, including audit,
legal and professional fee in connection therewith.


[9] Cost related to the filing of Form F-3 represents audit, legal and professional fees.


[10] The comparative figures for the three months ended September 30, 2019 and nine months ended September 30, 2019 were restated to conform to
the presentation of the figures for the same periods of 2020.

 

 

Adjusted net income/(loss) represents net (loss)/income before (i) share-based compensation, (ii) fair value losses
on derivative liabilities, (iii) fair value losses/(gain) on convertible notes, (iv) other gains, net, (v) convertible notes
issuance cost, (vi) net loss attributable to noncontrolling interests, (vii) share of losses from an equity investee, (viii)
cost related to new business setup or acquisitions, and (ix) cost related to filing of Form F-3. There is no material
tax effects on these non-GAAP adjustments.

The table below sets forth a reconciliation of the Company’s adjusted net income/(loss) from net (loss)/income for
the periods indicated:


Three
 
Months
 
Ended


September
 
30,


Nine
 
Months
 
Ended


September
 
30,


2020


2019


2020


2019


Net (loss)/income

(7,097)

863

(15,546)

(4,850)

Add/(less):

Share-based compensation

1,612

431

3,879

1,657

Fair value losses on derivative liabilities

6,343

11,466

Fair value losses/(gain) on convertible notes

1,426

(2,938)

4,433

(946)

Other gains, net[4],[10]

(849)

(265)

(1,022)

(803)

Convertible notes issuance cost[5]

44

Net loss attributable to noncontrolling interests[6]

545

550

1,642

987

Share of losses from an equity investee[7]

16

217

85

231

Cost related to new business setup or acquisitions[8]

352

63

749

Cost related to filing of Form F-3[9]

428

273

428

782


Adjusted net income/(loss)
[10]

2,424

(517)

5,472

(2,193)

 

The diluted adjusted net income/(loss) per ADS for the periods indicated are calculated as follows:


Three
 
Months
 
Ended


September
 
30,


Nine
 
Months
 
Ended


September
 
30,


2020


2019


2020


2019

Net (loss)/income:

(7,097)

863

(15,546)

(4,850)

Add: Non-GAAP adjustments to net (loss)/income[10]

9,521

(1,380)

21,018

2,657

Adjusted net income/(loss)[10]

2,424

(517)

5,472

(2,193)

Denominator for net (loss)/income per ADS – Weighted

   average ADS outstanding

83,847,077

67,184,218

74,377,252

65,915,823

Denominator for diluted adjusted net income/(loss) per

   ADS – Weighted average ADS outstanding

90,085,165

67,184,218

80,615,340

65,915,823

Diluted net (loss)/income per ADS

(0.08)

0.01

(0.21)

(0.07)

Add: Non-GAAP adjustments to net (loss)/income per ADS

0.11

(0.02)

0.28

0.04

Diluted adjusted net income/(loss) per ADS

0.03

(0.01)

0.07

(0.03)

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/iclick-interactive-asia-group-limited-reports-2020-third-quarter-unaudited-financial-results-301179666.html

SOURCE iClick Interactive Asia Group Limited