Market Newsdesk

November 24, 2020 6:33 am

Hormel Foods Reports Fourth Quarter And Fiscal 2020 Earnings

The company achieves record annual sales with growth from all four operating segments

PR Newswire

AUSTIN, Minn., Nov. 24, 2020 /PRNewswire/ — Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the fourth quarter of fiscal 2020. All comparisons are to the fourth quarter of fiscal 2019 unless otherwise noted.

The impact of the Sadler’s Smokehouse acquisition (March 2020) is excluded in the presentation of the fourth quarter of fiscal 2020 non-GAAP measures of organic volume and organic net sales. The impact of the CytoSport divestiture last year is excluded from prior year adjusted diluted earnings per share. Operating free cash flow is also presented as a non-GAAP metric.

EXECUTIVE SUMMARY – FISCAL 2020

Volume of 4.8 billion lbs., up 1%; organic volume¹ up 2%
Net sales of $9.6 billion, up 1%; organic net sales¹up 2%
Operating income of $1.1 billion, down 8%
Operating margin of 11.5% compared to 12.6% last year
Diluted earnings per share of $1.66, down 8%; down 2% to adjusted diluted earnings per share¹ last year
Cash flow from operations of $1.1 billion, up 22%
Operating free cash flow¹ of $0.8 billion, up 21%

EXECUTIVE SUMMARY – FOURTH QUARTER

Volume of 1.2 billion lbs., down 2%; organic volume¹ down 3%
Net sales of $2.4 billion, down 3%; organic net sales¹ down 4%
Operating margin of 11.4% compared to 12.8% last year
Effective tax rate of 15.9% compared to 21.0% last year
Diluted earnings per share of $0.43, down 9% from $0.47

EXECUTIVE COMMENTARY

“I’m proud of how our team overcame multiple challenges to deliver record sales this year,” said Jim Snee, chairman of the board, president and chief executive officer. “We grew sales in all four segments, which speaks to the strategic balance we have built into our company. In several of our domestic businesses, strong demand for our products exceeded the available supply. From a bottom-line perspective, our experienced leadership team managed through the incremental supply chain costs we incurred related to the pandemic, which was the largest driver of our earnings decline,” Snee said.

“For the quarter, growth in our International segment was incredibly strong, particularly in China, where we drove balanced growth between the retail and foodservice channels. International sales of SPAM^® luncheon meat and SKIPPY^®peanut butter remained robust,” Snee said. “We continued to see a high level of growth for many retail and deli brands, including Applegate^®, Columbus^®, Jennie-O^®, Hormel^®Black Label^®, Herdez^® and SKIPPY^®. Consistent with industry trends, our foodservice business showed declines this past quarter. As a leader in the industry, we will continue to support the distributor and operator community during this difficult time.”

“I am optimistic about generating sales and earnings growth in fiscal 2021. Our One Supply Chain team delivered steady production improvements throughout the quarter, and our production capacity for key product lines is structurally higher as we move into next year. The balance we have across the retail, deli, foodservice and international channels gives us confidence in our ability to perform well in many different economic scenarios,” Snee said. “This most recent surge of COVID-19 cases in communities does create a level of uncertainty in a number of areas, notably labor availability, customer demand and raw material markets. Our company has adjusted to these conditions and will continue to invest to meet the needs of our team members, customers, consumers and operators.”

STRATEGIC INVESTMENTS

“We opened our new Burke pizza toppings plant expansion this quarter, which will provide much-needed capacity for our pizza toppings business,” Snee said. “We are also on track to open our new state-of-the-art dry sausage production facility for Columbus^®charcuterie products during the first half of the year.”

“Finally, we are investing in a major capacity expansion for our pepperoni business,” Snee said. “Even before the pandemic, we needed more capacity to support our retail and foodservice businesses. This expansion will give us a long runway to continue growing in this important category.”

COVID-19 RESPONSE

“As we enter fiscal 2021, we are witnessing another dramatic increase in COVID-19 cases across the nation,” Snee said. “Employee safety remains our top priority, and we are doubling down on our awareness initiative, KEEP COVID OUT!, which reinforces the importance of taking preventive measures at our production facilities and in our communities where we work and live.”

For the full year, the company absorbed over $80 million in incremental supply chain costs primarily related to lower production volumes, employee bonuses and enhanced safety measures in its production facilities. The company estimates most of the incremental supply chain costs are temporary and can be minimized after the pandemic subsides.

DIVIDENDS

“We announced a five percent increase to our annual dividend, making the new dividend $0.98 per share,” Snee said. “This is the 55^th consecutive year in which we’ve increased our dividend, which is a testament to the strong and consistent performance our company continues to deliver.”

Effective Nov. 16, 2020, the company paid its 369^th consecutive quarterly dividend at the annual rate of $0.93 per share.

SEGMENT HIGHLIGHTS – FOURTH QUARTER

Refrigerated Foods

Volume down 4%; organic volume¹down 5%
Net sales down 5%; organic net sales¹ down 7%
Segment profit down 17%

Retail and deli sales growth from brands such as Applegate^®, Hormel^® Black Label^® and Columbus^®, in addition to the impact from the Sadler’s Smokehouse acquisition did not offset a significant decline in foodservice sales. Sales were impacted by production limitations due to the COVID-19 pandemic and lower inventory levels. The decline in segment profit was due to lower foodservice sales, incremental supply chain costs related to the COVID-19 pandemic and a decrease in commodity profits.

Grocery Products

Volume up 1%
Net sales down 1%
Segment profit up 1%

Demand for center store brands remained strong, led by growth from brands such as SKIPPY^®, Herdez^® and Hormel^® Compleats^®. Sales were impacted by lower inventory levels and production limitations related to the COVID-19 pandemic on certain center store products and lower sales for MegaMex foodservice items. Segment profit increased as improved results across the nut butters portfolio more than offset increased freight expense and lower earnings from our MegaMex foodservice business.

Jennie-O Turkey Store

Volume down 2%
Net sales down 6%
Segment profit down 21%

Volume and sales growth of Jennie-O^® lean ground products and whole birds were exceptionally strong. Reduced demand for foodservice and commodity products led to the overall decline in sales. Lower foodservice earnings and increased supply chain costs related to the COVID-19 pandemic drove the significant decline in segment profit.

International & Other

Volume down 1%
Net sales up 8%
Segment profit up 55%

Sales increased due to strong worldwide demand for SPAM^® luncheon meat and growth in China. Results in China were positively impacted by strong demand for branded retail items, such as SKIPPY^® peanut butter, and an accelerating recovery in the foodservice channel. The significant increase in segment profit was due to improved results in China, higher income from our partners in the Philippines, South Korea and Europe, and branded export growth.

CHANNEL HIGHLIGHTS – FOURTH QUARTER

In an effort to add an increased level of disclosure and clarity to the nature, timing and uncertainty of our revenue, net sales have been disaggregated into sales channels, which can also be found in the upcoming Form 10-K. The ongoing COVID-19 pandemic and subsequent changes in consumer behavior drove higher retail sales in each of the company’s segments. Overall deli channel sales increased even as some categories declined. Foodservice net sales continued to show declines, similar to prior quarters. International sales increased primarily due to sales increases in China.

U.S. retail net sales up 7%
U.S. deli net sales up 1%
U.S. foodservice net sales down 23%
International net sales up 2%

SELECTED FINANCIAL DETAILS – FISCAL 2020

Income Statement

Operating margin for the full year was 11.5% compared to 12.6%. The company was negatively impacted by higher operating costs in 2020 due to the impact of the COVID-19 pandemic.
Selling, general and administrative expenses increased by 5%. The increase was primarily related to one-time adjustments in 2019 related to the CytoSport sale.
Advertising investments were $124 million compared to $131 million last year.
The effective tax rate was 18.5% compared to 19.1% last year.
The fourth quarter and full year of fiscal 2021 contain an extra week as compared to fiscal 2020.

Cash Flow Statement

Cash flow from operations was $1,128 million, up 22% compared to last year. The increase was primarily due to effective management of working capital.
The company acquired the Sadler’s Smokehouse business for $271 million during the year.
Dividends paid to shareholders were $487 million. The company paid its 369^th consecutive quarterly dividend on Nov. 16 at the annual rate of $0.93 per share, an 11% increase over the prior year.
Capital expenditures were $368 million. The company’s target for capital expenditures in fiscal 2021 is $350 million. Large projects include a new dry sausage facility in Nebraska, a pepperoni capacity expansion project, Project Orion and many other projects to support growth of branded products.
Share repurchases totaled $12 million, representing 0.3 million shares purchased.
Depreciation and amortization expense for the full year was $206 million. Depreciation and amortization expense for fiscal 2021 is expected to be approximately $210 million.

Balance Sheet

The company is in a strong financial position with ample liquidity, a conservative level of debt and consistent cash flows.
Cash on hand increased to $1,714 million from $673 million at the beginning of the year primarily due to the cash proceeds from the $1.0 billion debt offering during the year.
Total long-term debt is $1,304 million compared to $250 million at the beginning of the year.
Working capital increased to $2,075 million from $1,256 million at the beginning of the year, primarily related to a higher cash balance from the debt offering during the year.

PRESENTATION

A conference call will be webcast at 9 a.m. CST on Nov. 24, 2020. Access is available at www.hormelfoods.com by clicking on “Investors.” The call will also be available via telephone by dialing 888-317-6003 and providing the access code 5831860. An audio replay is available by going to www.hormelfoods.com. The webcast replay will be available at noon CST, Nov. 24, 2020, and will remain on the website for one year.

ABOUT HORMEL FOODS – Inspired People. Inspired Food.™

Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenue across more than 80 countries worldwide. Its brands include SKIPPY^®, SPAM^®, Hormel^® Natural Choice^®, Applegate^®, Justin’s^®, Wholly^®, Hormel^® Black Label^®, Columbus^® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the “Global 2000 World’s Best Employers” list by Forbes magazine for three straight years, is one of Fortune magazine’s most admired companies, has appeared on Corporate Responsibility Magazine’s “The 100 Best Corporate Citizens” list for 12 years in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement – Inspired People. Inspired Food.™ – to bring some of the world’s most trusted and iconic brands to tables across the globe. For more information, visit www.hormelfoods.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statements regarding “Risk Factors” and “Forward-Looking Statements” that appear on pages 34-41 in the company’s Form 10-Q for the fiscal quarter ended Jul. 26, 2020, which can be accessed at hormelfoods.com in the “Investors” section.

Note: Due to rounding, numbers presented throughout this news release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.

¹
COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS
The non-GAAP adjusted financial measurement of adjusted diluted earnings per share is presented to provide investors with additional information to facilitate the comparison of past and present operations. Adjusted diluted earnings per share excludes the impact associated with the divestiture of the CytoSport business in fiscal 2019.

The non-GAAP adjusted financial measurements of organic net sales and organic volume are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic net sales and organic volume are defined as net sales and volume, excluding the impact of acquisitions and divestitures. Organic net sales and organic volume exclude the impacts of the Sadler’s Smokehouse acquisition (March 2020) in the Refrigerated Foods segment and the CytoSport divestiture (April 2019) in the Grocery Products, and International & Other segments.

The company defines the non-GAAP adjusted financial measurement of operating free cash flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less capital expenditures. The company views operating free cash flow as an important measure, because it is one factor in evaluating the amount of cash available for discretionary investments.

The company believes these non-GAAP financial measurements provide useful information to investors, because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP adjusted measures.

RECONCILIATION OF NON-GAAP MEASURES
(In thousands, except per share amounts)

ADJUSTED EARNINGS (NON-GAAP)

	Fifty-Two Weeks Ended
	October 25, 2020		October 27, 2019
	GAAP Earnings		GAAP Earnings		CytoSport Business Impact		Non-GAAP Adjusted Earnings		% Change
TOTAL SEGMENT PROFIT	$	1,166,782	$	1,214,735	$	(26,808)	$	1,187,927	(1.8)
Net unallocated expense	52,307		5,362		16,469		21,831		139.6
Noncontrolling interest	272		342		—		342		(20.5)
EARNINGS BEFORE INCOME TAX	$	1,114,747	$	1,209,715	$	(43,277)	$	1,166,438	(4.4)
Provision for income taxes	206,393		230,567		12,656		243,223		(15.1)
NET EARNINGS	$	908,354	$	979,148	$	(55,933)	$	923,215	(1.6)
Less: Net earnings attributable to noncontrolling interest	272		342		—		342		(20.4)
NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION	$	908,082	$	978,806	$	(55,933)	$	922,873	(1.6)

DILUTED EARNINGS PER SHARE	$	1.66	$	1.80	$	(0.10)	$	1.70	(2.4)

OPERATING FREE CASH FLOW (NON-GAAP)

	Thirteen Weeks Ended						Fifty-Two Weeks Ended
	October 25, 2020		October 27, 2019		% Change		October 25, 2020		October 27, 2019		% Change
Net cash provided by operating activities	$	249,938	$	350,084			$	1,128,024	$	922,996
Purchases of property and equipment	(140,671)		(139,607)				(367,501)		(293,838)
TOTAL	$	109,267	$	210,477	(48.1)	%	$	760,523	$	629,158	20.9	%

ORGANIC VOLUME AND NET SALES (NON-GAAP)

	Thirteen Weeks Ended
	October 25, 2020						October 27, 2019
VOLUME (LBS.)	Reported GAAP		Acquisitions		Organic (Non-GAAP)		Reported GAAP		Divestitures		Organic (Non-GAAP)		Non-GAAP % Change
Grocery Products	317,743		—		317,743		313,489		—		313,489		1.4
Refrigerated Foods	572,873		(4,772)		568,101		598,474		—		598,474		(5.1)
Jennie-O Turkey Store	237,435		—		237,435		242,421		—		242,421		(2.1)
International & Other	81,383		—		81,383		82,493		—		82,493		(1.3)
TOTAL	1,209,434		(4,772)		1,204,662		1,236,877		—		1,236,877		(2.6)
NET SALES
Grocery Products	$	580,617	$	—	$	580,617	$	584,085	$	—	$	584,085	(0.6)
Refrigerated Foods	1,308,842		(27,364)		1,281,478		1,373,009		—		1,373,009		(6.7)
Jennie-O Turkey Store	373,471		—		373,471		398,512		—		398,512		(6.3)
International & Other	157,175		—		157,175		145,907		—		145,907		7.7
TOTAL	$	2,420,105	$	(27,364)	$	2,392,741	$	2,501,513	$	—	$	2,501,513	(4.3)


	Fifty-Two Weeks Ended
	October 25, 2020						October 27, 2019
VOLUME (LBS.)	Reported GAAP		Acquisitions		Organic (Non-GAAP)		Reported GAAP		Divestitures		Organic (Non-GAAP)		Non-GAAP % Change
Grocery Products	1,281,562		—		1,281,562		1,283,492		(69,910)		1,213,582		5.6
Refrigerated Foods	2,360,571		(15,298)		2,345,273		2,325,156		—		2,325,156		0.9
Jennie-O Turkey Store	815,425		—		815,425		789,337		—		789,337		3.3
International & Other	337,149		—		337,149		339,296		(2,052)		337,244		—
TOTAL	4,794,707		(15,298)		4,779,409		4,737,281		(71,962)		4,665,319		2.4
NET SALES
Grocery Products	$	2,385,291	$	—	$	2,385,291	$	2,369,317	$	(130,588)	$	2,238,729	6.5
Refrigerated Foods	5,271,061		(89,363)		5,181,698		5,210,741		—		5,210,741		(0.6)
Jennie-O Turkey Store	1,333,459		—		1,333,459		1,323,783		—		1,323,783		0.7
International & Other	618,650		—		618,650		593,476		(3,889)		589,587		4.9
TOTAL	$	9,608,462	$	(89,363)	$	9,519,099	$	9,497,317	$	(134,477)	$	9,362,840	1.7

HORMEL FOODS CORPORATION
SEGMENT DATA
(Unaudited) (In thousands)

	Thirteen Weeks Ended
	October 25, 2020		October 27, 2019		% Change
NET SALES
Grocery Products	$	580,617	$	584,085	(0.6)
Refrigerated Foods	1,308,842		1,373,009		(4.7)
Jennie-O Turkey Store	373,471		398,512		(6.3)
International & Other	157,175		145,907		7.7
TOTAL	$	2,420,105	$	2,501,513	(3.3)


SEGMENT PROFIT
Grocery Products	$	81,642	$	80,923	0.9
Refrigerated Foods	157,810		189,287		(16.6)
Jennie-O Turkey Store	32,618		41,031		(20.5)
International & Other	27,047		17,455		55.0
TOTAL SEGMENT PROFIT	299,116		328,696		(9.0)
Net unallocated expense	20,553		5,065		305.8
Noncontrolling interest	169		63		172.2
EARNINGS BEFORE INCOME TAX	$	278,732	$	323,694	(13.9)


	Fifty-Two Weeks Ended
	October 25, 2020		October 27, 2019		% Change
NET SALES
Grocery Products	$	2,385,291	$	2,369,317	0.7
Refrigerated Foods	5,271,061		5,210,741		1.2
Jennie-O Turkey Store	1,333,459		1,323,783		0.7
International & Other	618,650		593,476		4.2
TOTAL	$	9,608,462	$	9,497,317	1.2


SEGMENT PROFIT
Grocery Products	$	358,008	$	339,497	5.5
Refrigerated Foods	609,406		681,763		(10.6)
Jennie-O Turkey Store	105,585		117,962		(10.5)
International & Other	93,782		75,513		24.2
TOTAL SEGMENT PROFIT	1,166,782		1,214,735		(3.9)
Net unallocated expense	52,307		5,362		875.5
Noncontrolling interest	272		342		(20.4)
EARNINGS BEFORE INCOME TAX	$	1,114,747	$	1,209,715	(7.9)

HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share amounts)

	Thirteen Weeks Ended						Fifty-Two Weeks Ended
	October 25, 2020			October 27, 2019			October 25, 2020			October 27, 2019
Net sales	$	2,420,105		$	2,501,513		$	9,608,462		$	9,497,317
Cost of products sold	1,962,340			2,007,790			7,782,498			7,612,669
GROSS PROFIT	457,765			493,723			1,825,963			1,884,648
Selling, general and administrative	190,797			183,795			761,315			727,584
Equity in earnings of affiliates	9,729			11,068			35,572			39,201
OPERATING INCOME	276,697			320,996			1,100,220			1,196,265
Interest & investment income	10,306			5,793			35,596			31,520
Interest expense	(8,270)			(3,095)			(21,069)			(18,070)
EARNINGS BEFORE INCOME TAXES	278,732			323,694			1,114,747			1,209,715
Provision for income taxes	44,207			68,128			206,393			230,567
(effective tax rate)	15.9		%	21.0		%	18.5		%	19.1		%
NET EARNINGS	234,526			255,566			908,354			979,148
Less: net earnings attributable to noncontrolling interest	169			63			272			342
NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION	$	234,356		$	255,503		$	908,082		$	978,806

NET EARNINGS PER SHARE
Basic	$	0.43		$	0.48		$	1.69		$	1.83
Diluted	$	0.43		$	0.47		$	1.66		$	1.80

WEIGHTED AVG. SHARES OUTSTANDING
Basic	539,726			534,151			538,007			534,578
Diluted	548,029			543,802			546,592			545,232

Dividends declared per share	$	0.2325		$	0.2100		$	0.9300		$	0.8400

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) (In thousands)

	October 25, 2020		October 27, 2019
ASSETS
Cash and cash equivalents	$	1,714,309	$	672,901
Short-term marketable securities	17,338		14,736
Accounts receivable	702,419		574,396
Inventories	1,072,762		1,042,362
Income taxes receivable	41,449		19,924
Prepaid expenses	18,349		22,637
Other current assets	12,438		14,457
TOTAL CURRENT ASSETS	3,579,063		2,361,413

Goodwill	2,612,727		2,481,645
Other intangibles	1,076,285		1,033,862
Pension assets	183,232		135,915
Investments in and receivables from affiliates	308,372		289,157
Other assets	250,382		177,901
Property, plant & equipment, net	1,898,222		1,629,111
TOTAL ASSETS	$	9,908,282	$	8,109,004


LIABILITIES AND SHAREHOLDERS’ INVESTMENT
Accounts payable	$	644,609	$	590,033
Accrued expenses	59,136		62,031
Accrued worker’s compensation	25,070		24,272
Accrued marketing	108,502		96,305
Employee-related expenses	252,845		213,515
Taxes payable	22,480		6,208
Interest and dividends payable	132,632		112,685
Current maturities of long-term debt	258,691		—
TOTAL CURRENT LIABILITIES	1,503,965		1,105,049

Long-term debt, less current maturities	1,044,936		250,000
Pension and post-retirement benefits	552,878		536,490
Other long-term liabilities	157,399		115,356
Deferred income taxes	218,779		176,574
Accumulated other comprehensive loss	(395,250)		(399,500)
Other shareholder’s investment	6,825,576		6,325,035
TOTAL LIAB. & SHAREHOLDERS’ INVESTMENT	$	9,908,282	$	8,109,004

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)

	Thirteen Weeks Ended				Fifty-Two Weeks Ended
	October 25, 2020		October 27, 2019		October 25, 2020		October 27, 2019
OPERATING ACTIVITIES
Net earnings	$	234,526	$	255,566	$	908,354	$	979,148
Depreciation and amortization	56,007		42,994		205,781		165,209
(Increase) decrease in working capital	(74,876)		(9,303)		(29,013)		(215,548)
Other	34,282		60,827		42,902		(5,813)
NET CASH PROVIDED BY OPERATING ACTIVITIES	249,938		350,084		1,128,024		922,996

INVESTING ACTIVITIES
Net (purchase) sale of securities	53		(612)		(2,589)		(14,496)
Proceeds from sale of business	—		5,921		—		479,806
Acquisitions of businesses and intangibles	—		—		(270,789)		—
Purchases of property and equipment	(140,671)		(139,607)		(367,501)		(293,838)
Proceeds from sales of property and equipment	450		1,144		1,916		37,402
(Increase) decrease in investments, equity in affiliates, and other assets	(10,109)		(1,634)		(17,352)		11,279
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(150,276)		(134,788)		(656,316)		220,153

FINANCING ACTIVITIES
Proceeds from long-term debt	—		—		992,381		—
Repayments of long-term debt and finance leases	(2,147)		—		(8,368)		(374,840)
Dividends paid on common stock	(125,373)		(112,082)		(487,376)		(437,053)
Share repurchase	—		—		(12,360)		(174,246)
Other	9,700		11,788		81,895		59,895
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(117,820)		(100,294)		566,172		(926,244)
Effect of exchange rate changes on cash	3,098		(2,300)		3,526		(3,140)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(15,060)		112,702		1,041,407		213,765
Cash and cash equivalents at beginning of period	1,729,368		560,199		672,901		459,136
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	1,714,309	$	672,901	$	1,714,309	$	672,901

INVESTOR CONTACT:	MEDIA CONTACT:
Nathan Annis	(507) 437-5345
(507) 437-5248	[email protected]
[email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/hormel-foods-reports-fourth-quarter-and-fiscal-2020-earnings-301179417.html

SOURCE Hormel Foods Corporation

November 24, 2020 6:33 am

Immunic, Inc. to Participate in Investor Conferences in December

PR Newswire

NEW YORK, Nov. 24, 2020 /PRNewswire/ — Immunic, Inc. (Nasdaq: IMUX), a clinical-stage biopharmaceutical company developing a pipeline of selective oral immunology therapies aimed at treating chronic inflammatory and autoimmune diseases, today announced management’s participation in the following investor conferences in December:

November 30 – December 3: Piper Sandler 32^nd Virtual Healthcare Conference. Daniel Vitt, Ph.D., Chief Executive Officer and President of Immunic, will participate in a fireside chat. Beginning November 23, the fireside chat will be available for viewing anytime through December 3 by accessing the recording library on the Piper Sandler conference site. An archived replay of the presentation will be available on the “Events and Presentations” section of Immunic’s website at: ir.imux.com/events-and-presentations for a period of 90 days after the conference.
December 1-3: Evercore ISI 3^rd Annual HEALTHCONx Conference. Dr. Vitt will participate in a fireside chat on Thursday, December 3, at 12:10 pm ET. A live audio webcast of the presentation will be available on the “Events and Presentations” section of Immunic’s website at: ir.imux.com/events-and-presentations. An archived replay will be available on the company’s website for a period of one year after the conference.

About Immunic, Inc.
Immunic, Inc. (Nasdaq: IMUX) is a clinical-stage biopharmaceutical company with a pipeline of selective oral immunology therapies aimed at treating chronic inflammatory and autoimmune diseases, including relapsing-remitting multiple sclerosis, ulcerative colitis, Crohn’s disease, and psoriasis. Immunic is developing three small molecule products: its lead development program, IMU-838, is a selective immune modulator that inhibits the intracellular metabolism of activated immune cells by blocking the enzyme DHODH and exhibits a host-based antiviral effect; IMU-935 is an inverse agonist of RORγt; and IMU-856 targets the restoration of the intestinal barrier function. Immunic announced positive results from its phase 2 EMPhASIS trial of IMU-838 in patients with relapsing-remitting multiple sclerosis, reporting achievement of both primary and key secondary endpoints with high statistical significance. IMU-838 is also in phase 2 clinical development for ulcerative colitis and COVID-19, with an additional phase 2 trial considered in Crohn’s disease. An investigator-sponsored proof-of-concept clinical trial for IMU-838 in primary sclerosing cholangitis is ongoing at the Mayo Clinic. For further information, please visit: www.imux.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to management’s participation in investor conferences. Immunic may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, the COVID-19 pandemic, risks and uncertainties associated with the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources to meet business objectives and operational requirements, the fact that the results of earlier studies and trials may not be predictive of future clinical trial results, the protection and market exclusivity provided by Immunic’s intellectual property, risks related to the drug development and the regulatory approval process and the impact of competitive products and technological changes. A further list and descriptions of these risks, uncertainties and other factors can be found in the section captioned “Risk Factors,” in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 16, 2020, the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the SEC on November 6, 2020, and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov or ir.imux.com/sec-filings. Any forward-looking statement made in this release speaks only as of the date of this release. Immunic disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made. Immunic expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this press release.

Contact Information

Immunic, Inc.

Jessica Breu

Head of Investor Relations and Communications
+49 89 2080 477 09
[email protected]

US IR Contact
Rx Communications Group
Melody Carey
+1 917 322 2571
[email protected]

US Media Contact
KOGS Communication
Edna Kaplan
+1 781 639 1910
[email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/immunic-inc-to-participate-in-investor-conferences-in-december-301179508.html

SOURCE Immunic, Inc.

November 24, 2020 6:33 am

NICE Named a Leader in Intelligent Authentication and Fraud Prevention for the Second Consecutive Year by Leading Analyst Firm

NICE Named a Leader in Intelligent Authentication and Fraud Prevention for the Second Consecutive Year by Leading Analyst Firm

The report forecasts NICE’s continued leadership for its innovative voice biometrics-based real-time authentication and powerful AI-driven proactive fraud prevention offerings

HOBOKEN, N.J.–(BUSINESS WIRE)–NICE (Nasdaq: NICE) today announced it has been recognized as a Leader for its Real-Time Authentication (RTA) and Fraud Prevention solutions by Opus Research for the second year successively. NICE’s innovative, self-learning ENLIGHTEN Fraud Prevention solution was highlighted as a key differentiator in the report entitled ’Intelligent Authentication and Fraud Prevention Intelliview.’ For a complimentary copy, click here.

“NICE distinguished itself by offering innovative solutions that fulfill requirements for real-time authentication over multiple channels,” explained Dan Miller, Lead Analyst at Opus Research. “Its clients have been impressed by the proactive nature of its fraud-detection solution and the simple process of passive enrollment, using existing recordings to create voiceprints.”

NICE achieved a top ranking in the report for its comprehensive authentication technology. NICE RTA was highlighted for its unique capabilities tailored specifically for the contact center environment, in particular its advanced enrollment capabilities, including passive, and historical call enrollment. The offering was also praised for its single voiceprint technology that allows consistent authentication and enrollment across all channels, as well as for additional validation capabilities that address complex calls, deep-fakes and multifactor authentication.

The Opus Research report particularly commended the innovative NICE ENLIGHTEN Fraud Prevention solution that combines NICE’s leading voice biometrics technology with its ENLIGHTEN customer engagement AI platform. The solution proactively and continuously detects fraudulent behavior across millions of calls, identifies calls with patterns of risky behavior and zooms-in to expose fraudsters attempting to authenticate into or take over consumer accounts.

“This recognition from Opus Research reinforces NICE’s vision and ability to continually deliver the market’s leading fraud prevention and voice biometrics offering,” said Barry Cooper, President, NICE Enterprise Group. “Keeping pace with rapidly shifting global trends and the increasing sophistication of fraudsters requires a level of agility which we believe is best achieved through innovation, and we are proud to receive a testament to this in the pages of the Opus Research report.”

About NICE

NICE (Nasdaq: NICE) is the world’s leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE Ltd. All other marks are trademarks of their respective owners. For a full list of NICE’s marks, please see: www.nice.com/nice-trademarks.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Cooper, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the “Company”). In some cases, such forward-looking statements can be identified by terms such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” “estimate,” or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of changes in economic and business conditions, including as a result of the COVID-19 pandemic; competition; successful execution of the Company’s growth strategy; success and growth of the Company’s cloud Software-as-a-Service business; changes in technology and market requirements; decline in demand for the Company’s products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners;, cyber security attacks or other security breaches against the Company; the effect of newly enacted or modified laws, regulation or standards on the Company and our products and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company’s reports filed from time to time with the SEC, including the Company’s Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201124005457/en/

Corporate Media Contact

Christopher Irwin-Dudek, +1 201 561 4442, ET, [email protected]

Investors

Marty Cohen, +1 551 256 5354, ET, [email protected]

Yisca Erez +972 9 775 3798, CET, [email protected]

KEYWORDS: New Jersey United States North America

INDUSTRY KEYWORDS: Hardware Semiconductor Electronic Design Automation Security Data Management Satellite Consumer Electronics Photography Technology Nanotechnology Telecommunications Software Networks VoIP Internet Mobile/Wireless

MEDIA:

Logo

November 24, 2020 6:33 am

Tiffany Reports Third Quarter Results

Tiffany Reports Third Quarter Results

Third Quarter Net Earnings Grow in Excess of 50 Percent Versus Year Ago

NEW YORK–(BUSINESS WIRE)–
Tiffany & Co. (NYSE: TIF) today reported its financial results for the three months (“third quarter”) and nine months (“year-to-date”) ended October 31, 2020. In the third quarter, worldwide net sales returned to the billion dollar level and represented a decrease of 1% as compared to the prior year; on a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see “Non-GAAP Measures”), worldwide net sales for the three months were 2% below the prior year. Net earnings increased 52% for the third quarter as compared to prior year (73% improvement when excluding certain costs related to the Merger (as defined below); see “Non-GAAP Measures”) reflecting higher gross and operating margins and a lower effective income tax rate. In the year-to-date, worldwide net sales decreased 25% as compared to the same period in the prior year and, on a constant-exchange-rate basis (see “Non-GAAP Measures”), decreased 24% in the nine months as compared to the prior year. Net earnings turned positive in the year-to-date.

Alessandro Bogliolo, Chief Executive Officer, said, “We had a strong third quarter both in sales on a relative basis and terrific results in profitability on an absolute basis, which speaks volumes about the enduring strength of the Tiffany brand and gives us confidence as we enter the important holiday season. I want to commend all our invaluable managers and extraordinary employees for the excellent results achieved in a very, very difficult environment.

“We believe that the results we released today demonstrate that our strong continuing execution against the strategic priorities we set three years ago positions us to achieve sustainable sales, margin and earnings growth for this legendary brand. Further to continued management focus and investment in that important market, sales in Mainland China continued to grow dramatically in the third quarter, increasing by over 70%, with comparable sales nearly doubling in that period as compared to the prior year. In addition, and consistent with our focus, e-commerce sales finished the third quarter up 92% globally as compared to the prior year, performing positively in all markets. As a result, total e-commerce sales represent 12% of total net sales in the year-to-date, as compared to 6% for each of the last three fiscal years. Finally, we saw an increase in another important metric – average unit retail price – in the third quarter in response to our strategic initiatives designed to focus consumers on our finest products, both online and in our stores. Absolutely noteworthy is the performance of T1, our newest gold and gold with diamonds collection, which was received particularly well in all markets and channels.”

Mr. Bogliolo closed by saying, “We look forward to surprising and delighting our consumers during the holiday season and the successful completion of the merger transaction with LVMH in early 2021.”

Mark Erceg, Chief Financial Officer added, “We believe that expanding operating margins by nearly 500 basis points in the third quarter as compared to the prior year and posting exceptionally strong net earnings growth against an extremely difficult macroeconomic backdrop demonstrates the strength and durability of the Tiffany brand, as well as the considerable skill and dedication of Tiffany’s management, craftspeople and sales professionals. By being very thoughtful and deliberate about cost management and capex spending, we were able to continue funding important strategic growth investments, like the renovation of our Fifth Avenue flagship store in New York City, finish the third quarter with ample liquidity from our cash-on-hand and unused borrowing capacity and, once again, remain in full compliance with our leverage ratio financial maintenance covenant and our fixed charge coverage ratio test for debt incurrence.”

In the third quarter:

Worldwide net sales of $1.0 billion decreased by 1% and comparable sales increased by 3% from the prior year; on a constant-exchange-rate basis, net sales decreased 2% and comparable sales increased 1% from the prior year.

Net earnings of $119 million were 52% higher than the prior year’s $78 million, and net earnings per diluted share were $0.98 versus $0.65 in the prior year. Excluding certain costs recorded in the period related to the pending acquisition of the Company (the “Merger”) by LVMH Moët Hennessy – Louis Vuitton SE (“LVMH”), pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of October 28, 2020 (the “Merger Agreement”), by and among the Company, LVMH, Breakfast Holdings Acquisition Corp. and Breakfast Acquisition Corp., third quarter net earnings of $136 million, or $1.11 per diluted share, were 73% higher than the prior year (see “Non-GAAP Measures”).

In the year-to-date:

Worldwide net sales declined 25% to $2.3 billion and comparable sales declined 22% from the prior year; on a constant-exchange-rate basis, net sales declined 24% from the prior year and comparable sales declined 21%.

Net earnings of $86 million were 75% lower than the prior year’s $340 million, and net earnings per diluted share were $0.71 versus $2.80 in the prior year. Excluding certain costs recorded in the period related to the Merger, as well as certain other items, year-to-date net earnings of $110 million, or $0.90 per diluted share, were 68% lower than the prior year (see “Non-GAAP Measures” for further details on these costs).

Net sales by region were as follows:

In the Americas, total sales decreased 16% in the third quarter and 36% in the year-to-date, to $354 million and $826 million, respectively; comparable sales decreased 15% in the third quarter and 35% in the year-to-date. Sales decreased across most of the region in the third quarter, which management primarily attributed to the decline in foreign tourism in the region related to the effects of COVID-19. The year-to-date decline also reflected the store closures resulting from COVID-19 across the region that began in mid-March and continued into June, with most stores in the region reopened in mid-June. On a constant-exchange-rate basis, total sales declined 15% in the third quarter and 35% in the year-to-date, and comparable sales declined 14% in the third quarter and 34% in the year-to-date.

In Asia-Pacific, total sales grew by 30% in the third quarter and decreased 7% in the year-to-date to $382 million and $854 million, respectively, which included comparable sales increases of 40% in the third quarter and 3% in the year-to-date. In the third quarter, total sales results reflected strong retail sales growth in Mainland China and Korea, partially offset by mixed performance across other markets in the region. In the year-to-date, total sales reflected strong e-commerce sales growth, as well as retail sales growth in Mainland China and Korea, which was more than offset by softness across the other markets in the region, which management attributed to the effects of COVID-19 and the resulting store closures across the region beginning with Mainland China in February and persisting for varying durations through early June, as well as a decline in wholesale travel retail sales. On a constant-exchange-rate basis, total sales increased 26% in the third quarter and decreased 6% year-to-date, while comparable sales increased 36% in the third quarter and 3% in the year-to-date as compared to the prior year.

In Japan, total sales decreased 8% in the third quarter and 25% in the year-to-date to $156 million and $353 million, respectively; comparable sales decreased 4% and 23% for those same periods, respectively. Management attributed the decrease in the third quarter to a decline in foreign tourism in the region, as well as strong growth in the prior year due to high consumer demand prior to the consumption tax increase which occurred on October 1, 2019. Management attributed the decline in total sales in the year-to-date to the effects of COVID-19, including the resulting store closures across the region, which primarily began in early April 2020 and continued through early June, and a decline in tourist traffic beginning early in the first quarter of fiscal 2020. On a constant-exchange-rate basis, total sales decreased 9% in the third quarter and 26% in the year-to-date, and comparable sales decreased 5% and 24%, respectively.

In Europe, total sales declined 6% in the third quarter and 24% in the year-to-date to $104 million and $249 million, respectively, and comparable sales declined 6% in the third quarter and 25% in the year-to-date. Management attributed the decline in sales in the third quarter across most of the region to a decline in foreign tourism related to the continuing effects of COVID-19. In the year-to-date, sales decreased across the region, which management also attributed to the effects of COVID-19 and the resulting store closures across the region, which began in mid-March and continued into June, with the vast majority of these stores reopened by mid-June. On a constant-exchange-rate basis, total sales decreased 9% in the third quarter and 24% in the year-to-date; comparable sales decreased 9% and 25%, respectively.

Other net sales decreased 30% to $12 million in the third quarter and 59% to $28 million in the year-to-date due to decreases in sales within the Emerging Markets region in both periods and a decrease in wholesale sales of diamonds in the year-to-date.

Tiffany has opened two Company-operated stores in the year-to-date and closed eight. At October 31, 2020, the Company operated 320 stores (122 in the Americas, 87 in Asia-Pacific, 59 in Japan, 47 in Europe, and five in the UAE). As of October 31, 2020, substantially all of the Company’s retail stores worldwide were fully or partially opened, in accordance with applicable guidelines established by local governments. In response to new restrictions and requirements implemented in late October 2020 and November 2020 in certain European countries as a result of increased COVID-19 infection rates, the Company has temporarily closed certain of its retail stores in that region. As of November 20, 2020, approximately 60% of the Company’s retail stores in Europe were temporarily closed in accordance with the applicable guidelines established by local governments. Substantially all of the Company’s stores in its other regions remained fully or partially open as of that date.

Sales for jewelry categories in the third quarter and year-to-date were as follows: Jewelry Collections increased 7% and decreased 21%, respectively; Engagement Jewelry decreased 6% and 28%, respectively; and Designer Jewelry decreased 6% and 23%, respectively.

Other highlights:

Gross margin (gross profit as a percentage of net sales) of 63.8% in the third quarter increased as compared to 61.7%, and gross margin of 61.2% in the year-to-date decreased as compared to 62.1%, in each case as compared to the respective prior year period. The increase in the third quarter was largely due to a change in sales mix to higher margin products. The decrease in the year-to-date was largely due to (i) sales deleverage on fixed costs resulting from the effects of COVID-19 on net sales, (ii) certain overhead costs not capitalized in the period resulting from certain manufacturing locations being closed or operating at reduced capacity during the period due to COVID-19 and (iii) an increase in inventory reserves, partially offset by a change in sales mix to higher margin products in the third quarter. Additionally, the year-to-date included the impact of a $12 million charge that was recorded in the three months ended April 30, 2020 to fully reserve the asset related to an expected insurance recovery in respect of the bankruptcy filing of a metal refiner to which the Company entrusted precious scrap metal.

Selling, general and administrative (“SG&A”) expenses decreased $29 million, or 6%, in the third quarter and $144 million, or 10%, in the year-to-date. SG&A included $18 million and $42 million, respectively, in costs related to the Merger; in the year-to-date, SG&A also included a $12 million charitable contribution to The Tiffany & Co. Foundation (see “Non-GAAP Measures” for further details). In the third quarter, the increase in SG&A from costs related to the Merger was more than offset by decreased marketing spending and continued prudent management of the Company’s operating expenses, which included the reduction or elimination of certain non-essential spending. In the year-to-date, the increase in SG&A from costs related to the Merger and the charitable contribution to The Tiffany & Co. Foundation were more than offset by decreased marketing spending (although marketing expense as percentage of net sales in the year-to-date was approximately in line with the Company’s historical percentage), decreased labor and incentive compensation costs as well as decreased store occupancy expenses. Excluding the Merger-related costs in both periods and the charitable contribution in the year-to-date noted above, SG&A expenses decreased $47 million, or 9%, in the third quarter and decreased $198 million, or 14%, in the year-to-date (see “Non-GAAP Measures”). In the year-to-date, SG&A expenses as a percentage of net sales increased due to sales deleverage on operating expenses resulting from the effects of COVID-19 on net sales. Changes in foreign currency exchange rates did not have a meaningful effect on SG&A expenses in the third quarter and year-to-date as compared with the prior year.

Earnings from operations as a percentage of net sales (“operating margin”) was 16.4% in the third quarter and 5.2% in the year-to-date, compared with 11.7% and 15.1% in the respective prior year periods. Excluding the Merger-related costs in both periods of 2020 and the charitable contribution in the year-to-date described in “Non-GAAP Measures,” operating margin was 18.2% in the third quarter and 7.5% in the year-to-date (see “Non-GAAP Measures”).

The effective income tax rate for the third quarter was 19.9% versus 25.4% in the prior year. The effective income tax rate in the year-to-date was 20.3% versus 21.3% in the prior year. The effective income tax rate for both periods was impacted by the reversal of previously established reserves for uncertain tax positions resulting from the favorable conclusion of a tax examination and the expiration of certain statutes of limitations, the impact of non-deductible transaction related expenses, as well as the application of an updated estimated annual effective income tax rate, which is influenced by the jurisdictional mix of earnings taxed at the statutory tax rates applicable to each jurisdiction. The Company’s effective income tax rate could be negatively impacted to the extent earnings are lower than anticipated in countries that have lower statutory tax rates and higher than anticipated in countries that have higher statutory tax rates. The effective income tax rates for the third quarter and year-to-date of 2019 were increased by an income tax expense of $6 million, or 550 basis points and 130 basis points, respectively, due to a reduction in the estimated Foreign Derived Intangible Income (“FDII”) benefit for fiscal 2019. The effective income tax rate in the year-to-date included the recognition of an income tax benefit of $8 million, or 170 basis points, related to an increase in the estimated fiscal 2018 FDII benefit as a result of U.S. Treasury guidance issued during the three months ended April 30, 2019.

Net inventories at October 31, 2020 were 4% below the prior year.

At October 31, 2020, cash and cash equivalents and short-term investments totaled $1.1 billion. Total debt (short-term borrowings and long-term debt) of $1.4 billion represented 44% of stockholders’ equity as compared to 31% in the prior year. This increase from the prior year was primarily the result of a $500 million drawdown on the Company’s revolving credit facility during the first quarter of 2020, which remained outstanding at October 31, 2020. The drawdown proceeds can be repaid at any time. Management believes that cash on hand, internally generated cash flows and the funds available under the Company’s revolving credit facilities are sufficient to support the Company’s liquidity and capital requirements for the foreseeable future.

On the sustainability front, in September, the Company proudly announced its 2025 Sustainability Goals, which establish a roadmap to guide the Company in its future sustainability efforts, and published the Company’s 10th Sustainability Report. In October, the Company received its results for the 2020 MSCI ESG Rating, and once again achieved a AAA rating, which places the Company in the top 5% of companies in MSCI’s Retail – Consumer Discretionary Sector.

The Company’s current expectations for fourth quarter of 2020 (“fourth quarter”) now include:
- A mid-single-digit percentage decline in total net sales relative to the same period in the prior year.
- A low-double-digit percentage increase in operating earnings relative to the same period in the prior year.
- A high-single-digit percentage increase in diluted earnings per share relative to the same period in the prior year.

The Company’s earnings expectations for the fourth quarter exclude certain costs that it will incur upon the closing of the Merger, as the parties to the Merger have not yet established a date on which that transaction will be completed. These expenses, which are expected to be significant, primarily include advisor fees and expenses related to the vesting of outstanding stock-based awards. For additional details regarding these advisor fees and vesting of outstanding stock-based awards, please see the Company’s Preliminary Proxy Statement on Schedule 14A filed with the U.S. Securities and Exchange Commission on November 16, 2020.

Next Scheduled Announcement

To receive email alerts of the timing of future financial news releases, as well as future announcements, please register at investor.tiffany.com (and click on “Contact Us/Email Alerts”).

About Tiffany & Co.

In 1837, Charles Lewis Tiffany founded his company in New York City where his store was soon acclaimed as the palace of jewels for its exceptional gemstones. Since then, TIFFANY & CO. has become synonymous with elegance, innovative design, fine craftsmanship and creative excellence. During the 20th century fame thrived worldwide with store network expansion and continuous cultural relevance, as exemplified by Truman Capote’s Breakfast at Tiffany’s and the film starring Audrey Hepburn.

Today, with more than 14,000 employees, TIFFANY & CO. and its subsidiaries design, manufacture and market jewelry, watches and luxury accessories – including more than 5,000 skilled artisans who cut diamonds and craft jewelry in the Company’s workshops, realizing its commitment to superlative quality. TIFFANY & CO. has a long-standing commitment to conducting its business responsibly, sustaining the natural environment, prioritizing diversity and inclusion, and positively impacting the communities in which we operate.

Additional Information and Where to Find It

This communication may be deemed to be solicitation material in respect of the proposed acquisition of Tiffany & Co. (the “Company”) by LVMH Moët Hennessy – Louis Vuitton SE (“Parent”) pursuant to the Amended and Restated Merger Agreement (the “Amended Merger Agreement”), dated as of October 28, 2020, by and among the Company, Parent, Breakfast Holdings Acquisition Corp. (“Holding”) and Breakfast Acquisition Corp. (“Merger Sub”). In connection with the proposed acquisition, the Company filed a preliminary proxy statement on Schedule 14A with the U.S. Securities Exchange Commission (the “SEC”), and intends to file other relevant materials with the SEC, including a proxy statement in definitive form. Following the filing of the definitive proxy statement with the SEC, the Company will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the proposed acquisition. INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ CAREFULLY ALL RELEVANT DOCUMENTS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED WITH THE SEC, INCLUDING THE COMPANY’S PROXY STATEMENT, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSED ACQUISITION. Investors and security holders will be able to obtain copies of the proxy statement and other documents filed with the SEC (when available) free of charge at the SEC’s website, /www.sec.gov or at the Company’s website at investor.tiffany.com/financial-information or by writing to the Corporate Secretary at 200 Fifth Avenue, New York, New York 10010, Attn: Corporate Secretary (Legal Department).

Participants in Solicitation

The Company and its directors, executive officers and certain of its employees may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in respect of the proposed acquisition. Information about the directors and executive officers of the Company is set forth in its proxy statement for its 2020 annual meeting of stockholders, which was filed with the SEC on April 20, 2020, and the preliminary proxy statement filed with the SEC in connection with the proposed acquisition on November 16, 2020. Other information regarding the participants in the proxy solicitations in connection with the proposed acquisition, and a description of any interests that they have in the proposed acquisition, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC regarding the proposed acquisition when they become available. These documents may be obtained for free at the SEC’s website at www.sec.gov, and via the Company’s Investor Relations section of its website at investor.tiffany.com/financial-information.

Forward-Looking Statements:

The historical trends and results reported in this release should not be considered an indication of future performance. Further, statements contained in this release that are not statements of historical fact, including those that refer to plans, assumptions and expectations for future periods, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, each as amended. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the Merger and about the future plans, assumptions and expectations for the Company’s business and its results, including the Company’s expectations for fourth quarter results. Forward-looking statements provide current expectations of future events and include any statement that does not directly relate to any historical or current fact. Words such as ‘anticipates,’ ‘assumes,’ ‘believes,’ ‘can,’ ‘estimates,’ ‘expects,’ ‘forecasts,’ ‘intends,’ ‘may,’ ‘outlook,’ ‘plans,’ ‘projects,’ ‘pursues,’ ‘scheduled,’ ‘should,’ ‘will,’ or other similar expressions may identify such forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements the Company makes regarding its plans, assumptions, expectations, beliefs and objectives with respect to the Merger; the Company’s assumptions, expectations and beliefs with respect to COVID-19, including the continuing impact thereof on the Company’s business, sales, cash flows and results of operations; store openings and closings; store productivity; the renovation of the Company’s New York Flagship store, including the timing and cost thereof, and the temporary relocation of its retail operations to 6 East 57th Street; product introductions; sales; sales growth; sales trends; store traffic; the Company’s strategy and initiatives and the pace of execution thereon; the amount and timing of investment spending; the Company’s objectives to compete in the global luxury market and to improve financial performance; retail prices; gross margin; operating margin; expenses; interest expense and financing costs; effective income tax rate; the nature, amount or scope of charges resulting from recent revisions to the U.S. tax code; net earnings and net earnings per share; share count; inventories; capital expenditures; cash flow; liquidity, including the need to incur additional indebtedness; compliance with covenants under the Company’s debt instruments, including the financial ratio thresholds set forth therein; currency translation; macroeconomic and geopolitical conditions; growth opportunities; litigation outcomes and recovery related thereto; amounts recovered under Company insurance policies; contributions to Company pension plans; and certain ongoing or planned real estate, product, marketing, retail, customer experience, manufacturing, supply chain, information systems development, upgrades and replacement, and other operational initiatives and strategic priorities.

These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those discussed in forward-looking statements, including as a result of factors, assumptions, risks and uncertainties, which are outside of the Company’s control. The inclusion of such statements should not be regarded as a representation that any plans, estimates or expectations will be achieved. You should not place undue reliance on such statements. Important factors, risk and uncertainties that could cause actual results to differ materially from such plans, estimates or expectations include, but are not limited to, the following: the COVID-19 pandemic, including the duration and scope thereof, the availability of a vaccine or cure that mitigates the effect of the virus, the potential for additional waves of outbreaks and changes in financial, business, travel and tourism, consumer discretionary spending and other general consumer behaviors, political, public health and other conditions, circumstances, requirements and practices resulting therefrom; global macroeconomic and geopolitical developments; changes in interest and foreign currency rates; changes in taxation policies and regulations (including changes effected by the recent revisions to the U.S. tax code) or changes in the guidance related to, or interpretation of, such policies and regulations; shifting tourism trends; protest activity in the U.S.; regional instability; violence (including terrorist activities); political activities or events (including the potential for rapid and unexpected changes in government, economic and political policies, the imposition of additional duties, tariffs, taxes and other charges or other barriers to trade, including as a result of changes in diplomatic and trade relations or agreements with other countries); weather conditions that may affect local and tourist consumer spending; changes in consumer confidence, preferences and shopping patterns, as well as the Company’s ability to accurately predict and timely respond to such changes; shifts in the Company’s product and geographic sales mix; variations in the cost and availability of diamonds, gemstones and precious metals; adverse publicity regarding the Company and its products, the Company’s third-party vendors or the diamond or jewelry industry more generally; any non-compliance by third-party vendors and suppliers with the Company’s sourcing and quality standards, codes of conduct, or contractual requirements as well as applicable laws and regulations; changes in the Company’s competitive landscape; disruptions impacting the Company’s business and operations; failure to successfully implement or make changes to the Company’s information systems; changes in the cost and timing estimates associated with the renovation of the Company’s New York Flagship store; delays caused by third parties involved in the aforementioned renovation; any casualty, damage or destruction to the Company’s New York Flagship store or 6 East 57th Street location; the Company’s ability to successfully control costs and execute on, and achieve the expected benefits from, the operational initiatives and strategic priorities referenced above; conditions to the completion of the Merger, including stockholder approval of the Merger proposal, may not be satisfied or the regulatory approvals or waivers required for the Merger may not be obtained or maintained, in each case, on the terms expected or on the anticipated schedule; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement between the parties to the Merger or affect the ability of the parties to recognize the benefits of the Merger; the effect of the announcement or pendency of the Merger on the Company’s business relationships, operating results and business generally; risks that the Merger disrupts the Company’s current plans and operations and potential difficulties in the Company’s employee retention; risks that the Merger may divert management’s attention from the Company’s ongoing business operations; potential litigation that may be instituted against the Company or its directors or officers related to the Merger or the Merger Agreement between the parties to the Merger and any adverse outcome of any such litigation; the amount of the costs, fees, expenses and other charges related to the Merger, including in the event of any unexpected delays; other risks to consummation of the Merger, including the risk that the Merger will not be consummated within the expected time period, or at all, which may affect the Company’s business and the price of common stock of the Company; and any adverse effects on the Company by other general industry, economic, business and/or competitive factors. The consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a significant negative effect on the Company’s financial condition, results of operations, credit rating, liquidity or stock price. In addition, a continued increase in the number of COVID-19 cases in the countries in which the Company operates its retail stores could lead to additional store closures during the three months ending January 31, 2021, which could have a significant negative impact on the Company’s business, sales, cash flows and results of operations in that period. There can also be no assurance that the Merger will be completed, or if it is completed, that it will close within the anticipated time period, or that the expected benefits of the Merger will be realized. Developments relating to these and other factors may also warrant changes to the Company’s operating and strategic plans, including with respect to store openings, closings and renovations, capital expenditures, information systems development, inventory management, and continuing execution on, or timing of, the aforementioned initiatives and priorities. Such consequences and changes could also cause actual results to differ materially from the expected results expressed in, or implied by, the forward-looking statements.

Forward-looking statements reflect the views and assumptions of management as of the date of this communication with respect to future events. The Company does not undertake, and hereby disclaims, any obligation, unless required to do so by applicable securities laws, to update any forward-looking statements as a result of new information, future events or other factors. The inclusion of any statement in this communication does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.

Additional information about potential risks and uncertainties that could affect the Company’s business and financial results is included under “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020, and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 1A. Risk Factors” in the Company’s most recent Quarterly Report on Form 10-Q, the preliminary proxy statement on Schedule 14A that the Company filed on November 16, 2020 and in the Company’s other filings made with the SEC from time to time, which are available via the SEC’s website at www.sec.gov. Readers of this release should consider the risks, uncertainties and factors outlined above and in the aforementioned Form 10-K and Form 10-Q in evaluating, and are cautioned not to place undue reliance on, the forward-looking statements contained herein.

TIFFANY & CO. AND SUBSIDIARIES

(Unaudited)

NON-GAAP MEASURES

The Company reports information in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Internally, management also monitors and measures its performance using certain sales and earnings measures that include or exclude amounts, or are subject to adjustments that have the effect of including or excluding amounts, from the most directly comparable GAAP measure (“non-GAAP financial measures”). The Company presents such non-GAAP financial measures in reporting its financial results to provide investors with useful supplemental information that will allow them to evaluate the Company’s operating results using the same measures that management uses to monitor and measure its performance. The Company’s management does not, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures presented here may not be comparable to similarly-titled measures used by other companies.

Net Sales

The Company’s reported net sales reflect either a translation-related benefit from strengthening foreign currencies or a detriment from a strengthening U.S. dollar. Internally, management monitors and measures its sales performance on a non-GAAP basis that eliminates the positive or negative effects that result from translating sales made outside the U.S. into U.S. dollars (“constant-exchange-rate basis”). Sales on a constant-exchange-rate basis are calculated by taking the current year’s sales in local currencies and translating them into U.S. dollars using the prior year’s foreign currency exchange rates. Management believes this constant-exchange-rate basis provides a useful supplemental basis for the assessment of sales performance and of comparability between reporting periods. The following tables reconcile the sales percentage increases (decreases) from the GAAP to the non-GAAP basis versus the previous year:

	Third Quarter 2020 vs. 2019						Year-to-date 2020 vs. 2019
	GAAP Reported		Translation Effect		Constant- Exchange- Rate Basis		GAAP Reported		Translation Effect		Constant- Exchange- Rate Basis
Net Sales:
Worldwide	(1)	%	1	%	(2)	%	(25)	%	(1)	%	(24)	%
Americas	(16)		(1)		(15)		(36)		(1)		(35)
Asia-Pacific	30		4		26		(7)		(1)		(6)
Japan	(8)		1		(9)		(25)		1		(26)
Europe	(6)		3		(9)		(24)		—		(24)
Other	(30)		—		(30)		(59)		—		(59)

Comparable Sales:
Worldwide	3	%	2	%	1	%	(22)	%	(1)	%	(21)	%
Americas	(15)		(1)		(14)		(35)		(1)		(34)
Asia-Pacific	40		4		36		3		—		3
Japan	(4)		1		(5)		(23)		1		(24)
Europe	(6)		3		(9)		(25)		—		(25)
Other	(7)		—		(7)		(31)		—		(31)

	Third Quarter 2020 vs. 2019						Year-to-date 2020 vs. 2019
	GAAP Reported		Translation Effect		Constant- Exchange- Rate Basis		GAAP Reported		Translation Effect		Constant- Exchange- Rate Basis
Jewelry sales by product category:
Jewelry collections	7	%	2	%	5	%	(21)	%	(1)	%	(20)	%
Engagement jewelry	(6)		1		(7)		(28)		—		(28)
Designer jewelry	(6)		1		(7)		(23)		1		(24)

Statement of Earnings

Internally, management monitors and measures its earnings performance excluding certain items listed below. Management believes excluding such items provides a useful supplemental basis for the assessment of the Company’s results relative to the corresponding period in the prior year. The following tables reconcile certain GAAP amounts to non-GAAP amounts:

(in millions, except per share amounts)	GAAP			Charges related to the Merger^a			Non-GAAP
Three Months Ended October 31, 2020
Gross Profit	$	643.5		$	0.4		$	643.9
As a % of sales	63.8		%	—		%	63.9		%
Selling, general & administrative (“SG&A”) expenses	478.5			(18.0)			460.5
As a % of sales	47.5		%	(1.8)		%	45.7		%
Earnings from operations	165.0			18.4			183.4
As a % of sales	16.4		%	1.8		%	18.2		%
Provision for income taxes ^b	29.6			1.9			31.5
Net earnings	119.0			16.5			135.5
Diluted earnings per share	0.98			0.14			1.11

^aCosts recorded in the third quarter of 2020 related to the Merger.

^bThe income tax effect resulting from the adjustments has been calculated as both current and deferred tax expense, based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying adjustment.

(in millions, except per share amounts)	GAAP			Charges related to the Merger^c			Sydney, Australia Recovery and Charitable Contribution ^d			Non-GAAP
Nine Months Ended October 31, 2020
Gross Profit	$	1,414.1		$	1.3		$	—		$	1,415.4
As a % of sales	61.2		%	0.1		%	—		%	61.3		%
SG&A expenses	1,294.9			(41.7)			(12.0)			1,241.2
As a % of sales	56.0		%	(1.8)		%	(0.5)		%	53.7		%
Earnings from operations	119.2			43.0			12.0			174.2
As a % of sales	5.2		%	1.9		%	0.5		%	7.5		%
Other expense (income), net	(20.6)			—			31.4			10.8
Provision for income taxes ^e	21.9			4.3			(4.5)			21.7
Net Earnings	86.3			38.7			(14.9)			110.1
Diluted earnings per share	0.71			0.32			(0.12)			0.90

^c_{Costs recorded in the year-to-date of 2020 related to the Merger.}

^d_{Recognition of (i) a pre-tax gain of $31.4 million related to amounts received as compensation for the previous acquisition of the premises containing one of the Company’s leased retail stores and an administrative office in Sydney, Australia under compulsory acquisition laws in that country and (ii) a pre-tax expense of $12.0 million for a charitable contribution to The Tiffany & Co. Foundation funded in the first quarter of 2020 in connection with the compensation referenced above.}

^e_{The income tax effect resulting from the adjustments has been calculated as both current and deferred tax expense (benefit), based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying adjustment.}

TIFFANY & CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited, in millions, except per share amounts)

	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Net sales	$	1,008.2	$	1,014.6	$	2,310.8	$	3,066.1

Cost of sales	364.7		388.9		896.7		1,163.4

Gross profit	643.5		625.7		1,414.1		1,902.7

Selling, general and administrative expenses	478.5		507.2		1,294.9		1,439.1

Earnings from operations	165.0		118.5		119.2		463.6

Interest expense and financing costs	10.7		9.2		31.6		29.4

Other expense (income), net	5.7		4.2		(20.6)		2.2

Earnings from operations before income taxes	148.6		105.1		108.2		432.0

Provision for income taxes	29.6		26.7		21.9		92.1

Net earnings	$	119.0	$	78.4	$	86.3	$	339.9

Net earnings per share:

Basic	$	0.98	$	0.65	$	0.71	$	2.81
Diluted	$	0.98	$	0.65	$	0.71	$	2.80

Weighted-average number of common shares:

Basic	121.4		120.3		121.3		121.0
Diluted	121.7		120.6		121.7		121.3

TIFFANY & CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions)

	October 31, 2020		January 31, 2020		October 31, 2019
ASSETS

Current assets:
Cash and cash equivalents and short-term investments	$	1,145.7	$	897.4	$	529.6
Accounts receivable, net	200.3		240.0		218.0
Inventories, net	2,485.1		2,463.9		2,577.0
Prepaid expenses and other current assets	318.8		274.2		276.2

Total current assets	4,149.9		3,875.5		3,600.8

Operating lease right-of-use assets	1,108.1		1,102.7		1,065.5
Property, plant and equipment, net	1,112.2		1,098.8		1,043.5
Other assets, net	565.1		583.1		549.2

	$	6,935.3	$	6,660.1	$	6,259.0

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Short-term borrowings	$	543.1	$	147.9	$	89.9
Accounts payable and accrued liabilities	439.8		541.5		491.9
Current portion of operating lease liabilities	225.4		202.8		211.2
Income taxes payable	22.7		16.4		21.8
Merchandise credits and deferred revenue	68.8		61.8		62.4

Total current liabilities	1,299.8		970.4		877.2

Long-term debt	888.0		884.1		883.8
Pension/postretirement benefit obligations	381.3		374.5		289.8
Long-term portion of operating lease liabilities	996.4		1,008.4		966.7
Other long-term liabilities	91.1		87.3		99.0
Stockholders’ equity	3,278.7		3,335.4		3,142.5

	$	6,935.3	$	6,660.1	$	6,259.0

TIF-E

View source version on businesswire.com: https://www.businesswire.com/news/home/20201124005512/en/

Jason Wong

(973) 254-7612

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Fashion Retail Luxury Health Infectious Diseases Specialty

MEDIA:

Logo

November 24, 2020 6:33 am

American Woodmark Corporation Announces Second Quarter Results

American Woodmark Corporation Announces Second Quarter Results

WINCHESTER, Va.–(BUSINESS WIRE)–
American Woodmark Corporation (NASDAQ: AMWD) (the “Company”) today announced results for its second fiscal quarter ended October 31, 2020.

Net sales for the second fiscal quarter increased 4.8% to $448.6 million compared with the same quarter of the prior fiscal year. The Company experienced double digit growth in the repair and remodel sales channel during the second quarter of fiscal 2021 as the market demand recovered with consumer confidence increasing. Net sales for the first six months of the current fiscal year decreased 2.0% to $838.7 million from the comparable period of the prior fiscal year.

Net income was $22.3 million ($1.31 per diluted share) for the second quarter of fiscal 2021 compared with $22.2 million ($1.31 per diluted share) in the same quarter of the prior fiscal year. Net income for the second quarter of fiscal 2021 was negatively impacted by higher material and logistics costs, in addition to our investments made in the Company regarding labor and product launch costs. Net income for the first six months of the current fiscal year was $38.7 million ($2.27 per diluted share) compared with $49.0 million ($2.90 per diluted share) for the same period of the prior fiscal year. The Company incurred pre-tax restructuring costs totaling $2.8 million during the second quarter of fiscal 2021 and $6.3 million during the first half of 2021 related to the permanent layoffs due to COVID-19 announced in the fourth quarter of fiscal 2020 and the first quarter of fiscal 2021 and the closure of its Humboldt, Tennessee manufacturing plant announced in June 2020. Adjusted EPS per diluted share was $1.97 for the second quarter of fiscal 2021 compared with $1.84 in the same quarter of the prior fiscal year and $3.62 for the first six months of the current fiscal year compared with $3.97 for the same period of the prior fiscal year.

Adjusted EBITDA for the second fiscal quarter was $65.0 million, or 14.5% of net sales, compared to $62.9 million, or 14.7% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the first six months of the fiscal year was $121.9 million, or 14.5% of net sales, compared to $132.5 million, or 15.5% of net sales, for the same period of the prior fiscal year.

“Our teams continued to perform well and drove solid performance for the quarter. Our home center and independent dealer and distribution businesses delivered positive growth, we achieved adjusted EBITDA margins of 14.5% and we paid down $40.0 million of our term loan facility,” said Scott Culbreth, President and CEO. “I continue to be impressed by our team’s ability to execute during these challenging times while maintaining a safe work environment.”

Cash provided by operating activities for the first six months of the current fiscal year was $76.6 million and free cash flow totaled $57.4 million. As of October 31, 2020, the Company had $112.6 million of cash on hand with no term loan debt maturities until December 2022 plus access to $93.0 million of additional availability under its revolving credit facility. The Company paid down $40.0 million of its term loan facility during the first six months of the current fiscal year.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, builders and through a network of independent dealers and distributors. At October 31, 2020, the Company operated seventeen manufacturing facilities in the United States and Mexico and eight primary service centers located throughout the United States.

Use of Non-GAAP Financial Measures

We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading “Non-GAAP Financial Measures.”

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

(AMWD-ER)


AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Operating Results

	Three Months Ended				Six Months Ended
	October 31				October 31
	2020		2019		2020		2019

Net sales	$	448,583	$	428,016	$	838,670	$	855,381
Cost of sales & distribution	359,072		340,966		$	669,021	$	673,812
Gross profit	89,511		87,050		$	169,649	$	181,569
Sales & marketing expense	21,608		20,451		$	41,506	$	41,138
General & administrative expense	30,229		29,900		$	60,212	$	59,332
Restructuring charges	2,791		(188)		$	6,251	$	(207)
Operating income	34,883		36,887		$	61,680	$	81,306
Interest expense, net	5,981		7,436		$	12,011	$	15,524
Other income, net	(981)		(527)		$	(2,669)	$	(534)
Income tax expense	7,627		7,815		$	13,597	$	17,272
Net income	$	22,256	$	22,163	$	38,741	$	49,044

Earnings Per Share:
Weighted average shares outstanding – diluted	17,047,296		16,955,835		17,036,652		16,932,236

Net income per diluted share	$	1.31	$	1.31	$	2.27	$	2.90


Condensed Consolidated Balance Sheet
(Unaudited)
	October 31		April 30
	2020		2020

Cash & cash equivalents	$	112,560	$	97,059
Customer receivables	149,165		106,344
Inventories	127,715		111,836
Other current assets	14,913		9,933
Total current assets	404,353		325,172
Property, plant & equipment, net	198,895		203,824
Operating lease assets, net	128,125		127,668
Trademarks, net	556		2,222
Customer relationship intangibles, net	144,611		167,444
Goodwill	767,612		767,612
Other assets	28,726		28,864
Total assets	$	1,672,878	$	1,622,806

Current portion – long-term debt	$	2,096	$	2,216
Short-term operating lease liabilities	19,519		18,896
Accounts payable & accrued expenses	173,533		134,494
Total current liabilities	195,148		155,606
Long-term debt	555,911		594,921
Deferred income taxes	47,701		52,935
Long-term operating lease liabilities	113,511		112,454
Other liabilities	15,413		6,352
Total liabilities	927,684		922,268
Stockholders’ equity	745,194		700,538
Total liabilities & stockholders’ equity	$	1,672,878	$	1,622,806


Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Six Months Ended
	October 31
	2020		2019

Net cash provided by operating activities	$	76,568	$	86,232
Net cash used by investing activities	(18,930)		(18,288)
Net cash used by financing activities	(42,137)		(74,165)
Net increase (decrease) in cash and cash equivalents	15,501		(6,221)
Cash and cash equivalents, beginning of period	97,059		57,656

Cash and cash equivalents, end of period	$	112,560	$	51,435

Non-GAAP Financial Measures

We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below.

Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period’s results against the corresponding prior period’s results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Adjusted EPS per diluted share

We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company’s results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the acquisition of RSI Home Products, Inc. (“RSI acquisition”) and the subsequent restructuring charges that the Company incurred related to the acquisition, (2) non-recurring restructuring charges, (3) the amortization of customer relationship intangibles and trademarks, (4) net gain on debt forgiveness and modification and (5) the tax benefit of RSI acquisition expenses and subsequent restructuring charges, the net gain on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. The amortization of intangible assets is driven by the RSI acquisition and will recur in future periods. Management has determined that excluding amortization of intangible assets from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability and we have also received similar feedback from some of our investors.

Adjusted EBITDA and Adjusted EBITDA margin

We use Adjusted EBITDA and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe Adjusted EBITDA and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance.

We define Adjusted EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks, (5) expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition, (6) non-recurring restructuring charges, (7) stock-based compensation expense, (8) gain/loss on asset disposals, (9) change in fair value of foreign exchange forward contracts and (10) net gain on debt forgiveness and modification. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business.

We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.

Free cash flow

To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations.

Net leverage

Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.

We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA.

A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:


Reconciliation of Adjusted Non-GAAP Financial Measures to the GAAP Equivalents

	Three Months Ended						Six Months Ended
	October 31						October 31
(in thousands)	2020			2019			2020			2019

Net income (GAAP)	$	22,256		$	22,163		$	38,741		$	49,044
Add back:
Income tax expense	7,627			7,815			13,597			17,272
Interest expense, net	5,981			7,436			12,011			15,524
Depreciation and amortization expense	13,019			12,164			25,978			24,027
Amortization of customer relationship intangibles and trademarks	12,250			12,250			24,500			24,500
EBITDA (Non-GAAP)	$	61,133		$	61,828		$	114,827		$	130,367
Add back:
Acquisition and restructuring related expenses (1)	61			(130)			121			(89)
Non-recurring restructuring charges (2)	2,791			—			6,251			—
Change in fair value of foreign exchange forward contracts (3)	(566)			(152)			(1,821)			(96)
Stock-based compensation expense	1,266			1,178			2,227			2,075
Loss on asset disposal	286			151			332			217
Adjusted EBITDA (Non-GAAP)	$	64,971		$	62,875		$	121,937		$	132,474

Net Sales	$	448,583		$	428,016		$	838,670		$	855,381
Adjusted EBITDA margin (Non-GAAP)	14.5		%	14.7		%	14.5		%	15.5		%

(1) Acquisition and restructuring related expenses are comprised of expenses related to the acquisition of RSI Home Products, Inc. and the subsequent restructuring charges that the Company incurred related to the acquisition.

(2) Nonrecurring restructuring charges are comprised of expenses incurred related to the permanent layoffs due to COVID-19 and the closure of the manufacturing plant in Humboldt, Tennessee. The three and six months ended October 31, 2020, includes accelerated depreciation expense of $0.2 million and $1.3 million, respectively, related to Humboldt.

(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other income in the operating results.


Reconciliation of Net Income to Adjusted Net Income

	Three Months Ended				Six Months Ended
	October 31				October 31
(in thousands, except share data)	2020		2019		2020		2019

Net income (GAAP)	$	22,256	$	22,163	$	38,741	$	49,044
Add back:
Acquisition and restructuring related expenses	61		(130)		121		(89)
Non-recurring restructuring charges	2,791		—		6,251		—
Amortization of customer relationship intangibles and trademarks	12,250		12,250		24,500		24,500
Tax benefit of add backs	(3,850)		(3,103)		(7,903)		(6,200)
Adjusted net income (Non-GAAP)	$	33,508	$	31,180	$	61,710	$	67,255

Weighted average diluted shares	17,047,296		16,955,835		17,036,652		16,932,236
Adjusted EPS per diluted share (Non-GAAP)	$	1.97	$	1.84	$	3.62	$	3.97


Free Cash Flow

	Six Months Ended
	October
	2020		2019

Cash provided by operating activities	$	76,568	$	86,232
Less: Capital expenditures (1)	19,124		20,101
Free cash flow	$	57,444	$	66,131

(1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays.


Net Leverage

	Twelve Months Ended
	October 31
(in thousands)	2020

Net income (GAAP)	$	64,559
Add back:
Income tax expense	22,012
Interest expense, net	25,513
Depreciation and amortization expense	51,464
Amortization of customer relationship intangibles and trademarks	49,000
EBITDA (Non-GAAP)	212,548
Add back:
Acquisition and restructuring related expenses (1)	242
Non-recurring restructuring charges (2)	6,440
Change in fair value of foreign exchange forward contracts (3)	(623)
Stock-based compensation expense	4,140
Loss on asset disposal	2,745
Adjusted EBITDA (Non-GAAP)	$	225,492

	As of
	October 31
	2020
Current maturities of long-term debt	$	2,096
Long-term debt, less current maturities	555,911
Total debt	558,007
Less: cash and cash equivalents	(112,560)
Net debt	$	445,447

Net leverage (4)	1.98

(1) Acquisition and restructuring related expenses are comprised of expenses related to the acquisition of RSI Home Products, Inc. and the subsequent restructuring charges that the Company incurred related to the acquisition.

(2) Nonrecurring restructuring charges are comprised of expenses incurred related to the permanent layoffs due to COVID-19 and the closure of the manufacturing plant in Humboldt, Tennessee.

(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other income in the operating results.

(4) Net debt divided by Adjusted EBITDA for the twelve months ended October 31, 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201124005226/en/

Kevin Dunnigan

Treasury Director

540-665-9100

KEYWORDS: Virginia United States North America

INDUSTRY KEYWORDS: Other Manufacturing Construction & Property Interior Design Manufacturing Home Goods Building Systems Architecture Retail Residential Building & Real Estate

MEDIA:

Logo

November 24, 2020 6:33 am

Etrion Presents at Fearnley Securites Annual Renewables Seminar 2020

GENEVA, Switzerland, Nov. 24, 2020 (GLOBE NEWSWIRE) — Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), a solar independent power producer, announces that the Company’s Chief Executive Officer, Marco A. Northland, will be presenting at the Fearnley Securites Annual Renewables Seminar on Tuesday, November 24, 2020 at 2:10 pm Central European Time.

The presentation will be live online and a copy of the material will be available on Etrion’s website www.etrion.com shortly afterwards.

About Etrion

Etrion Corporation is an independent power producer that develops, builds, owns and operates utility-scale solar power generation plants. The Company owns and operates 57 MWp of solar capacity and owns the 45 MWp Niigata project under construction, all in Japan. The Company is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker symbol “ETX”. Etrion’s largest shareholder is the Lundin family, which owns approximately 36% of the Company’s shares directly and through various trusts.

Subscribe to receive Etrion’s press releases by email as soon as they are published.

Click here to subscribe

For additional information, please visit the Company’s website at www.etrion.com or contact:

Christian Lacueva – Chief Financial Officer
Telephone: +41 (22) 715 20 90

Note: The capacity of power plants in this release is described in approximate megawatts on a direct current (“DC”) basis, also referred to as megawatt-peak (“MWp”).

Etrion discloses the information provided herein pursuant to the Swedish Securities Market Act. The information was submitted for publication at 12:30 p.m. CET on November 24, 2020.

November 24, 2020 6:33 am

MediciNova Announces Initiation of Master Virus Seed Stock Production for its Intranasal COVID-19 Vaccine using BC-PIV Vector Technology

LA JOLLA, Calif., Nov. 24, 2020 (GLOBE NEWSWIRE) — MediciNova, Inc., a biopharmaceutical company traded on the NASDAQ Global Market (NASDAQ:MNOV) and the JASDAQ Market of the Tokyo Stock Exchange (Code Number: 4875), today announced that Good Manufacturing Practice (GMP)-based Master Virus Seed Stock (MVSS) production of its novel intranasal SARS-CoV-2 vaccine for COVID-19, using BC-PIV technology, has been initiated at Millipore Sigma BioReliance Services, a group company of Merck KGaA, Darmstadt, Germany.

Yuichi Iwaki, M.D., Ph.D., President and Chief Executive Officer of MediciNova, Inc. commented, “We are pleased to begin production of MVSS, a key step in the production of vaccines, at Millipore Sigma BioReliance Services. We look forward to producing an effective intranasal COVID-19 vaccine and reporting additional development progress in the near future.”

About Master Virus Seed Stock (MVSS)

MVSS is a seed virus necessary to produce BC-PIV/S. By infecting MVSS to the packaging cells, BC-PIV/S is produced, which is then recovered and purified to produce the BC-PIV SARS-CoV-2 vaccine for clinical studies.

About
the
BC-PIV
SARS-CoV-2
V
accine
for
COVID-19

BC-PIV, an innovative non-transmissible viral vector co-developed by BioComo and Mie University, is derived from the recombinant human parainfluenza virus type 2 (hPIV2). It is highly efficient in its ability to transfer multiple foreign proteins to recipients and has a strong safety profile as no secondary infectious virus is produced. BC-PIV is designed to display not only the gene but also the foreign protein itself on the surface and inside of the viral membrane. Therefore, it can carry the large membrane proteins of viruses and signal transduction receptors/ligand proteins on the viral surface. BC-PIV is able to carry the proteins that require a proper three-dimensional structure or multimeric structure while maintaining the structure. BC-PIV elicits good immunogenicity against antigen proteins without adjuvants. The BC-PIV SARS-CoV-2 vaccine prototype has been developed to include the specific SARS-CoV-2 antigen protein in order to express maximum antigenicity. The BC-PIV SARS-COV-2 vaccine can be developed as an intranasal vaccine in addition to an intramuscular injection because of its high affinity to nasal and upper respiratory tract mucosa, which is the same route of the natural infection of SARS-CoV-2. An intranasal vaccine is expected to induce local mucosal immunity. To date, BioComo has succeeded in producing a recombinant Ebola virus vaccine (https://www.nature.com/articles/s41598-019-49579-y) and a Respiratory Syncytial virus prefusion F vaccine (unpublished data) using this BC-PIV platform technology.

About BioComo

BioComo, a biotech company founded at Mie Prefecture Japan in May 2008, is developing cutting-edge technology platforms for creating the novel and predominant vaccine carriers and adjuvants to enhance immunity in collaboration with the Microbiology and Molecular Genetics Department of Mie University. They have already succeeded in the development of a highly efficacious and state-of-the art vaccine carrier and novel adjuvant candidates. Their technology will be applied to the production of the next generation vaccines for the prevention of infections such as RS virus, Ebola virus, Influenza virus, and SARS-CoV-2. It will also enable faster and more cost-effective production of those vaccines. BC-PIV is the core platform technology which carries the corporate namesake, BioComo, and the leading vaccine carrier that is derived from the recombinant human parainfluenza virus 2 (hPIV2) vectors. BioComo is dedicated to inventing new vaccines for both global infection threats as well as malignant tumors.

About MediciNova

MediciNova, Inc. is a publicly traded biopharmaceutical company founded upon acquiring and developing novel, small-molecule therapeutics for the treatment of diseases with unmet medical needs with a primary commercial focus on the U.S. market. MediciNova’s current strategy is to focus on BC-PIV SARS-COV-2 vaccine for COVID-19, MN-166 (ibudilast) for neurological disorders such as progressive multiple sclerosis (MS), amyotrophic lateral sclerosis (ALS) and substance dependence (e.g., alcohol use disorder, methamphetamine dependence, opioid dependence) and glioblastoma, as well as prevention of acute respiratory distress syndrome (ARDS) caused by COVID-19, and MN-001 (tipelukast) for fibrotic diseases such as nonalcoholic steatohepatitis (NASH) and idiopathic pulmonary fibrosis (IPF). MediciNova’s pipeline also includes MN-221 (bedoradrine) for the treatment of acute exacerbations of asthma and MN-029 (denibulin) for solid tumor cancers. MediciNova is engaged in strategic partnering and other potential funding discussions to support further development of its programs. For more information on MediciNova, Inc., please visit www.medicinova.com.

Statements in this press release that are not historical in nature constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the future development and efficacy of
BC-PIV SARS-COV-2 vaccine
,
MN-166, MN-001, MN-221, and MN-029. These forward-looking statements may be preceded by, followed by or otherwise include the words
“believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “can,” “could,” “may,” “will,” “would,” “considering,” “planning” or similar expressions. These forward-looking statements involve a number of risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results or events to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, risks of obtaining future partner or grant funding for development of
BC-PIV SARS-COV-2 vaccine
,
MN-166, MN-001, MN-221, and MN-029 and risks of raising sufficient capital when needed to fund MediciNova’s operations and contribution to clinical development, risks and uncertainties inherent in clinical trials, including the potential cost, expected timing and risks associated with clinical trials designed to meet FDA guidance and the viability of further development considering these factors, product development and commercialization risks, the uncertainty of whether the results of clinical trials will be predictive of results in later stages of product development, the risk of delays or failure to obtain or maintain regulatory approval, risks associated with the reliance on third parties to sponsor and fund clinical trials, risks regarding intellectual property rights in product candidates and the ability to defend and enforce such intellectual property rights, the risk of failure of the third parties upon whom MediciNova relies to conduct its clinical trials and manufacture its product candidates to perform as expected, the risk of increased cost and delays due to delays in the commencement, enrollment, completion or analysis of clinical trials or significant issues regarding the adequacy of clinical trial designs or the execution of clinical trials, and the timing of expected filings with the regulatory authorities, MediciNova’s collaborations with third parties, the availability of funds to complete product development plans and MediciNova’s ability to obtain third party funding for programs and raise sufficient capital when needed, and the other risks and uncertainties described in MediciNova’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2019 and its subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof. MediciNova disclaims any intent or obligation to revise or update these forward-looking statements.

INVESTOR CONTACT:
	Geoff O’Brien Vice President MediciNova, Inc. [email protected]

November 24, 2020 6:33 am

SpringWorks Therapeutics to Participate in the Evercore ISI HealthCONx Conference

STAMFORD, Conn., Nov. 24, 2020 (GLOBE NEWSWIRE) — SpringWorks Therapeutics, Inc. (Nasdaq: SWTX), a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer, today announced that Saqib Islam, Chief Executive Officer, will participate in a Fireside Chat at the 3rd Annual Evercore ISI HealthCONx Conference, taking place virtually on Wednesday, December 2, 2020 at 12:35 p.m. ET.

A video webcast will be available on the “Events & Presentations” page within the Investors & Media section of the company’s website at https://ir.springworkstx.com. A replay of the webcast will be available on SpringWorks’ website for a limited time following the conference.

About SpringWorks Therapeutics

SpringWorks is a clinical-stage biopharmaceutical company applying a precision medicine approach to acquiring, developing and commercializing life-changing medicines for underserved patient populations suffering from devastating rare diseases and cancer. SpringWorks has a differentiated portfolio of small molecule targeted oncology product candidates and is advancing two potentially registrational clinical trials in rare tumor types, as well as several other programs addressing highly prevalent, genetically defined cancers. SpringWorks’ strategic approach and operational excellence in clinical development have enabled it to rapidly advance its two lead product candidates into late-stage clinical trials while simultaneously entering into multiple shared-value partnerships with industry leaders to expand its portfolio. For more information, visit www.springworkstx.com and follow @SpringWorksTx on Twitter and LinkedIn.

Contact:

Kim Diamond
Phone: 203-561-1646
Email: [email protected]

November 24, 2020 6:25 am

ICE Benchmark Administration expands ICE Term SONIA Reference Rates methodology to include Tradeweb’s Dealer to Client data

ICE Benchmark Administration expands ICE Term SONIA Reference Rates methodology to include Tradeweb’s Dealer to Client data

LONDON–(BUSINESS WIRE)–
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE Benchmark Administration Limited (“IBA”) has expanded the input data used in its ICE Term SONIA Reference Rates “Waterfall” methodology to include Tradeweb’s dealer to client data.

In July 2020, IBA launched an initial, beta version of its ICE Term SONIA Reference Rates (“ICE TSRR”). ICE TSRR are designed to measure average expected (i.e. forward-looking) SONIA rates over one, three and six month tenor periods, based on a “Waterfall” methodology using eligible prices and volumes for specified SONIA-linked interest rate derivative products.

Level 1 of the Waterfall uses tradeable bid and offer prices and volumes for eligible SONIA-linked overnight interest rate swaps available on the central limit order books of BGC Partners, TP-ICAP, and Tradition to calculate the ICE TSRR. If these trading venues do not provide sufficient eligible input data, the newly expanded Waterfall uses dealer to client prices and volumes for eligible SONIA-linked overnight interest rate swaps available on Tradeweb’s institutional platform to calculate a rate at Level 2. If there is also insufficient eligible input data at Level 2, the ICE TSRR is determined at Level 3 of the Waterfall using SONIA-linked futures data published by electronic trading venues.

“Expanding the Waterfall to introduce dealer to client data further strengthens the robustness of the ICE TSRR methodology, using the best available data to help us provide reliable and representative rates to users in all market circumstances,” said Tim Bowler, President of IBA.

“We are pleased that ICE has chosen to include Tradeweb data in its ‘Waterfall’ methodology for Term SONIA Reference Rates,” said Lisa Schirf, Managing Director, Global Head of Data Strategy at Tradeweb. “Our robust pricing adds to the transparency and auditability of the ICE TSRR calculation, addressing the market’s need for accurate and independently validated compliant data.”

ICE TSRR beta rates are published daily on theICE Term Risk Free Rates (RFR) Portal, a comprehensive data source for market participants of risk free and alternative reference rates. Data on the ICE Term RFR Portal is currently published for information and illustrative purposes only and may not be used as a benchmark in financial instruments. IBA will announce in due course when the ICE TSRR will be made available as a benchmark for use in financial instruments.

About ICE Benchmark Administration

ICE Benchmark Administration is authorized and regulated by the Financial Conduct Authority for the regulated activity of administering a benchmark, and is authorized as a benchmark administrator under the EU Benchmarks Regulation.

About Intercontinental Exchange

Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 6, 2020.

About SONIA

The “SONIA” mark is used under licence from the Bank of England (the benchmark administrator of SONIA), and the use of such mark does not imply or express any approval or endorsement by the Bank of England. “Bank of England” and “SONIA” are registered trademarks of the Bank of England.

Source: Intercontinental Exchange

ICE-CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20201124005528/en/

ICE Media Contact

Rebecca Mitchell

+44 7951 057351

[email protected]

ICE Investor Contact

Warren Gardiner

770-835-0114

[email protected]

KEYWORDS: Europe United States United Kingdom North America

INDUSTRY KEYWORDS: Finance Banking Professional Services Technology Software

MEDIA:

Logo

Posted on November 24, 2020 6:08 am
L Catterton to Sell Cholula to McCormick

PR Newswire

GREENWICH, Conn., Nov. 24, 2020 /PRNewswire/ — L Catterton, the largest and most global consumer-focused private equity firm, today announced it has entered into a definitive agreement to sell Cholula, a leading producer and distributor of hot sauce, to McCormick & Company, Incorporated (NYSE: MKC) for $800 million. The transaction is subject to customary closing conditions.

Since acquiring Cholula in April 2019, L Catterton established Cholula as a standalone enterprise and transformed the organization, while driving a robust value creation plan that has positioned the company for continued growth. L Catterton completed a successful carve-out, recruited an industry-leading management team, and laid a strong operational foundation to support growth. In partnership with Cholula’s exceptional leadership team, L Catterton helped unlock Cholula’s potential by investing heavily behind the brand and product, with a focus on building consumer awareness and loyalty. Cholula’s ambitious commercial strategy centered on investments designed to drive new restaurant partnerships, retail distribution, and in-store execution. Under L Catterton’s ownership, Cholula grew household penetration by over 50% and gained meaningful market share.

“L Catterton was the perfect partner as we executed on the strategic transformation of the Cholula business,” said Maura Mottolese, Chief Executive Officer of Cholula. “With the support, resources, and operational expertise of the L Catterton team, we established Cholula as a high-performing standalone business, vastly improved our commercial execution efforts, and pivoted our foodservice strategy to position Cholula for long-term growth and success. L Catterton was well-positioned to acquire and grow the Cholula business by virtue of its global footprint, including its presence and local team in Mexico. We look forward to building on our success as part of the McCormick family.”

“Cholula is one of the most iconic assets within the food and beverage landscape, and we immediately recognized that there were a number of exciting ways to realize its potential as a standalone business,” said Scott Dahnke, Global Co-CEO of L Catterton. “In a category that continues to benefit from a number of strong secular tailwinds and attractive consumer trends, Cholula’s best-in-class team and refocused business strategy have positioned the company as a clear leader in a large and growing segment.”

Matt Leeds, Partner at L Catterton, added, “Cholula fits perfectly with L Catterton’s strategy of investing behind powerful brands in advantaged categories. It has been a true privilege to partner with Cholula’s exceptional management team, and to have participated in the success of this beloved brand.”

“We are incredibly excited that Cholula will be joining the McCormick family. It has achieved remarkable success since being acquired by L Catterton in early 2019. We look forward to building on Cholula’s already strong foundation to continue the momentum through the next stage of Cholula’s future growth,” said Lawrence E. Kurzius, Chairman, President and Chief Executive Officer of McCormick.

L Catterton has significant experience investing globally in CPG brands. Current and former CPG investments include The Honest Company, Kettle Brands, Zarbee’s, Home Chef, Ainsworth Pet Nutrition, Plum Organics, Wellness Pet Food, YoCrunch, Ferrara Candy Company, and Sweet Leaf Tea, as well as other leading consumer brands such as Restoration Hardware, Peloton, Sandro/Maje, CorePower Yoga, SteelSeries, ClearChoice, and Equinox.

Morgan Stanley & Co. LLC is acting as lead financial advisor to Cholula; Houlihan Lokey, Inc. is acting as financial advisor to Cholula; and Kirkland & Ellis LLP is acting as legal advisor to L Catterton and Cholula.

About Cholula

Cholula’s delicious hot sauce is created from a generations-old recipe featuring carefully selected arbol and piquin peppers and a secret blend of signature spices. Its unique recipe delivers a robust flavor with just the right amount of heat, with versatility far beyond the everyday condiment. Cholula’s distinctive wooden cap and artistic yellow label are testaments to the quality tradition of Mexican artisanship, and each bottle of Cholula is crafted with care in Jalisco, Mexico. Introduced into the U.S. in 1989, Cholula’s hot sauce now comes in six varieties and is enjoyed around the world.

About L Catterton

With approximately $20 billion of equity capital across seven fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton’s team of nearly 200 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH, and Groupe Arnault. For more information about L Catterton, please visit www.lcatterton.com.

Contacts

Andi Rose / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

View original content:http://www.prnewswire.com/news-releases/l-catterton-to-sell-cholula-to-mccormick-301179615.html

SOURCE L Catterton

Posts pagination

Previous page Page 1 … Page 43,519 Page 43,520 Page 43,521 … Page 44,364 Next page