Market Newsdesk

November 19, 2020 5:04 pm

Parkland appoints Marcel Teunissen as Chief Financial Officer

CALGARY, Alberta, Nov. 19, 2020 (GLOBE NEWSWIRE) — Parkland Corporation (“Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) is pleased to announce the appointment of Marcel Teunissen as Chief Financial Officer (“CFO”), effective December 1, 2020.

Marcel joins Parkland from Royal Dutch Shell, where he was Executive Vice President, Finance, Integrated Gas and New Energies, responsible for the financial management of Shell’s global portfolio of LNG assets and its emerging new energy business. With over 23 years of experience, Marcel has worked globally across the entire energy value chain, with an emphasis on refining, retail and related infrastructure.

“I am delighted to welcome Marcel to the Parkland Team and look forward to his contributions as we embark upon our next phase of growth,” said Bob Espey, President and Chief Executive Officer at Parkland. “His leadership experience, financial and business acumen, and broad global experiences make him an ideal fit to help drive our growth strategy and deliver market-leading results.”

Marcel brings an extensive background in corporate finance, treasury, financial planning and analysis, tax, strategic planning and commodity & financial risk management. He has also worked in many of the markets across Parkland’s diverse geographies, including Canada and the Caribbean.

Upon Marcel’s arrival, Darren Smart, who has served as interim CFO since December 2019, will return to his role of Senior Vice President, Strategy & Corporate Development which will be expanded to include developing and leading Parkland’s low-carbon and renewables strategy. Darren will continue to report directly to Bob Espey, President and Chief Executive Officer.

“I want to thank Darren for his tremendous work as interim CFO,” said Espey. “He embraced a large mandate through a global pandemic and ensured that we emerged with a stronger balance sheet and a high performing finance function. He accomplished this while simultaneously leading our Strategy and Corporate Development groups and developing a re-invigorated pipeline of accretive acquisition opportunities. Darren is key to Parkland’s success and I look forward to partnering with him to execute our aggressive growth agenda and to seize profitable, low-carbon and renewable opportunities.”

About Parkland Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves. Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

For Further Information

Investor Inquiries
Brad Monaco
Director, Capital Markets
587-997-1447
[email protected]

Media Inquiries
Simon Scott
Director, Corporate Communications
403-956-9272
[email protected]

November 19, 2020 5:03 pm

LifeLabs reports surpassing 800,000 COVID-19 molecular tests

Toronto, Nov. 19, 2020 (GLOBE NEWSWIRE) — LifeLabs is pleased to report results of over 800,000 COVID-19 molecular diagnostic tests for Canadians and their health care providers.

“I am so proud of our employees for all they’ve done to reach this remarkable milestone,” said Charles Brown, President and CEO of LifeLabs. “COVID-19 has presented challenges we had never seen before, and our amazing teams stepped up to work around-the-clock to ensure our operations is able to support daily COVID-19 lab tests for Canadians, their health care providers, and the health authorities in monitoring, understanding, and managing this virus.”

Throughout the pandemic, LifeLabs has worked closely with government partners and health authorities to continue building capacity for increasing the volume of testing. Since LifeLabs received the Ministry of Health’s direction to commence Sars-CoV-2 testing in March, operations quickly ramped up to go-live with testing in a single week and reduced a backlog of tests within the first couple weeks after scaling up operations.

“Most, if not all of our lab employees are working extended hours to support the constant increase for COVID-19 molecular diagnostic testing,” said Haleh Bahrami, VP of Lab Operations. “From our specimen management employees, to our diagnostic lab teams, our frontline employees, mobile lab staff, health and safety team members, couriers, and more, I’m so grateful for everyone who has done so well to come together and work as one team to meet these extraordinary testing demands.”

Throughout the pandemic, LifeLabs has also supported Canada’s response to this urgent public health care need by:

• Launching LifeLabs’ WorkClear™ program, an end-to-end solution that helps employers reduce the risk of workplace transmission of the Coronavirus by identifying asymptomatic and symptomatic carriers.
• Serving as the medical laboratory partner for the NHL’s Return to Play Plan, as part of the WorkClear program, to ensure all players and members of the hockey community stayed safe in the NHL bubble.
• Recently launching a COVID-19 Antibody Test, helping customers and their health care providers assess and determine prior COVID-19 infection.

For more information about LifeLabs’ response to COVID-19 and testing, visit lifelabs.com.

About LifeLabs

LifeLabs is Canada’s leading provider of laboratory diagnostic information and digital health connectivity systems, enabling patients and health care practitioners to diagnose, treat, monitor, and prevent disease. We support 20 million patient visits annually and conduct over 100 million laboratory tests through leading-edge technologies and our 5,700 talented and dedicated employees. We are a committed innovator in supporting Canadians to live healthier lives, operating Canada’s first commercial genetics lab and the country’s largest online patient portal, with more than 4.1 million Canadians receiving their results online. LifeLabs is 100% Canadian owned by OMERS Infrastructure, the infrastructure investment manager of one of Canada’s largest defined benefit pension plans. Learn more at lifelabs.com.

Communications team
LifeLabs
[email protected]

November 19, 2020 5:03 pm

BEST Inc. Announces Unaudited Third Quarter 2020 Financial Results

Company Announces Strategic Refocusing Plan

PR Newswire

HANGZHOU, China, Nov. 19, 2020 /PRNewswire/ — BEST Inc. (NYSE: BEST) (“BEST” or the “Company”), a leading integrated smart supply chain solutions and logistics services provider in China, today announced its unaudited financial results for the quarter ended September 30, 2020.

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, “We had a challenging third quarter amid intensified industry competition. Our Express segment execution did not meet the fast-changing market dynamics in both operation and pricing strategy, which led to lower volume growth and margin. Facing strong industry headwinds, we are taking steps to make major strategic adjustments and organizational changes to our business, focusing on our core logistics and supply chain management businesses, emphasizing service quality, enhancing operating efficiency, with the goal of putting us back on a path to profitability.”

Gloria Fan, BEST’s Chief Financial Officer, commented, “Our third-quarter performance reflects both the challenges and resiliency of our business. Revenue was RMB8.7 billion, relatively stable compared with the same period last year, while our gross margin contracted 5.4 percentage points year-over-year due to a challenging pricing environment that offset our volume growth across multiple business units, resulting in a net loss of RMB640 million. Despite the net loss, we generated net operating cash inflow of RMB115 million during the third quarter and maintained a healthy balance of cash and cash equivalents, restricted cash and short-term investments of RMB4.8 billion.”

FINANCIAL HIGHLIGHTS
^[1]

For the Quarter Ended September 30, 2020:

Revenue was RMB8,693.3 million (US$1,280.4 million), a decrease of 0.6% year-over-year (“YoY”). The decrease was primarily due to a decrease in average selling price (“ASP”) of Express business, partially offset by an increase in Express volume.
Gross Profit was RMB37.6 million (US$5.5 million), a decrease of 92.6% YoY compared to gross profit of RMB507.1 million in the same period of 2019. The decrease was primarily due to decreased ASP and increased costs of Express and Freight units. Gross Margin was 0.4%, a decrease of 5.4 percentage points (“ppts”) YoY.
Net Loss was RMB639.5 million (US$94.2 million), compared to a net loss of RMB6.7 million in the same period of 2019. Non-GAAP Net Loss^{[2] [3]}was RMB612.0 million (US$90.1 million), compared to non-GAAP Net Income of RMB16.7 million in the same period of 2019.
Diluted EPS
^[4] was negative RMB1.64(US$0.24), compared to negative RMB0.01 in the same period of 2019. Non-GAAP diluted EPS^{[3] [5]}was negative RMB1.57(US$0.23), compared to RMB0.05 in the same period of 2019.
EBITDA
^[3]
^[6] was negative RMB462.9 million (US$68.2 million), compared to RMB93.4 million in the same period of 2019. Adjusted EBITDA^[3]^[6]was negative RMB437.7 million (US$64.5 million), compared to RMB114.3 million in the same period of 2019.

Strategic Refocusing Plan

Following a comprehensive review of the Company’s business operations, BEST plans to implement extensive strategic adjustments to refocus its core businesses with a view to driving long-term growth and profitability.

1.
Core businesses: The Company will focus on its core logistics and supply chain management businesses.

a) Express: BEST will refocus its Express business on sustainable long-term growth and profitability by focusing on optimizing its product structure, improving operating efficiency, enhancing service quality and customer experience, and gaining market share.

b) Freight: BEST will continue to emphasize the e-commerce aspect of its freight services and solidify the Company’s competitive position by expanding its market share, improving operating efficiency and increasing profitability.

c) Supply Chain Management: BEST will focus on quality growth and profitability, continue to implement an improved asset-light model and grow the Company’s franchised Cloud OFC business.

2.
Non-core businesses: The Company announced the winding down of Store⁺ on November 15, 2020. The Company believes that by phasing out Store⁺, it can eliminate the significant cash-flow requirements associated with this early-stage business, allowing the Company to further prioritize capital allocation towards its core businesses. For its other non-core businesses, including UCargo, Capital and Global, the Company is considering all available strategic options with the goal of improving the Company’s profitability to maximize shareholder value.

3.
Management: BEST took significant steps to realign its management team to support the refocusing plan for its core businesses. As announced on November 15, 2020, and effective the same day, Mr. Xiaoqing Wang, former general manager of BEST’s Jiangsu province branch, assumed the position of vice president, general manager of Express, replacing Mr. Shaohua Zhou, who took up a new role in the Company.

4.
Cost measures: As part of the company-wide strategic refocusing plan, the Company intends to optimize its SG&A and R&D expenses to focus its resources on core businesses, anticipating estimated cost savings of approximately RMB200 million by the end of 2021. The savings will create a leaner and more focused organization by prioritizing expense control as well as optimizing efficiencies across the organization.

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented, “After a comprehensive review, we decided to take steps to refocus and streamline our operations, creating a leaner organization with greater financial flexibility. With a continued emphasis on our core capabilities, including Express, Freight and Supply Chain Management, we are evaluating strategic options available for our non-core businesses to eliminate or significantly reduce their capital requirements and capital losses. As we prioritize and deploy capital towards our core businesses, the goal is to improve our business fundamentals and competitive position. We believe with appropriate adjustments to our organization and cost structure, we can be on a path to profitability in the near future.

“As we look ahead, we remain confident in the strength of demand driven by e-commerce for integrated smart supply chain solutions and logistics services. We aim to achieve strong growth for Express and Freight, while seeking to further integrate our core business units. We expect this integration to create more cross-selling opportunities and maximize revenue and cost synergies, while also allowing us to focus on enhancing our product structure, stability and flexibility of our network, quality of services and overall operating efficiencies, which, taken as a whole, will enable BEST to deliver long-term value for our shareholders,” concluded Mr. Chou.

BUSINESS HIGHLIGHTS
^[7]

Core Logistics and Supply Chain

BEST Express – The Express segment execution did not meet the fast-changing market dynamics in both operation and pricing strategy, which led to lower volume growth and margin. Parcel volume increased by 24.8% YoY, representing market share of 10.6% during the quarter, which was 0.1 ppt lower compared with the second quarter. Gross margin contracted by 7.2 ppts due to an ASP decline of 21.9% YoY, partially offset by a decrease in average cost per parcel of 15.9% YoY.

BEST Freight – Freight continued its strong growth and achieved a growth rate higher than the industry average. Freight volume increased by 30.7% YoY in the third quarter of 2020. Its gross margin declined 5.3 ppts YoY, primarily due to a pricing lag after the government reinstated highway tolls in the second quarter. Average cost per tonne decreased by 12.6% YoY while ASP declined by 17.3% YoY.

BEST Supply Chain Management – Supply Chain Management focused on expanding the franchised Cloud OFC business, while targeting projects with higher margins and clients with strong credit profiles. Its gross margin decreased by 4.0 ppts YoY to 4.4%, primarily due to high cost structures associated with legacy key account customers, which are in the process of being terminated. The total number of orders fulfilled by Cloud OFCs increased by 18.3% YoY to 102.2 million in the third quarter of 2020, of which the total number of orders fulfilled by franchised Cloud OFCs increased by 32.0% YoY to 53.5 million. The number of franchised OFCs increased by 23.2% YoY to 345.

BEST UCargo – The number of registered drivers on the UCargo mobile app increased by 84.5% YoY to 288,322. The total number of transactions on the trucking brokerage platform increased by 37.2% YoY to 233,480.

BEST Capital – As of September 30, 2020, BEST Capital had provided financing solutions to 13,607 trucks in total, a quarter-over-quarter (“QoQ”) increase of 10.0% compared to June 30, 2020.

BEST Store⁺

The Store⁺ business continued to execute on its strategy of partnership model and enhancing order quality, allowing it to improve gross margin and reduce losses. Gross margin increased by 2.9 ppts YoY to 13.4%, while adjusted EBITDA margin improved by 1.8 ppts YoY to negative 9.5%. Despite these improving results, we decided to wind down Store+ operations by the end of 2020, except for self-operated WoWo stores, which the Company plans to continue running while evaluating various strategic options.

BEST Global

Global continued its strong momentum in Southeast Asia. In the third quarter, parcel volume in Thailand increased by 513.5% YoY to approximately 10 million, while parcel volume in Vietnam increased by 932.4% YoY to 10.3 million. The Company also made progress in expanding its express delivery services in Malaysia, Cambodia and Singapore.

Key Operational Metrics

	Three Months Ended			% Change YoY
Express Parcel Volume (in ‘000)	September 30, 2018	September 30, 2019	September 30, 2020	2019 vs 2018	2020 vs 2019
Express Parcel Volume (in ‘000)	1,371,055	1,890,842	2,359,773	37.9%	24.8%
Freight Volume (Tonne in ‘000)	1,474	1,885	2,464	27.9%	30.7%
Supply Chain Management Orders Fulfilled (in ‘000)	56,572	86,371	102,171	52.7%	18.3%
UCargo Number of Transactions (in ‘000)	136	170	233	25.3%	37.2%
Store⁺ Total Number of Orders Fulfilled (in ‘000)	935	903	820	(3.4%)	(9.2%)
Global Parcel Volume in Southeast Asia (in ‘000)	–	2,607	20,754	–	696.0%

FINANCIAL RESULTS

For the Quarter Ended September 30, 2020:

Revenue

The following table sets forth a breakdown of revenue by business segment for the periods indicated.

Table 1 – Breakdown of Revenue by Business Segment

	Three Months Ended
	September 30, 2019		September 30, 2020
(In ‘000, except for %)	RMB	% of Revenue	RMB	US$	% of Revenue	% Change YoY
Core logistics and supply chain:
Express	5,209,139	59.5%	5,076,101	747,629	58.5%	(2.6%)
Freight	1,375,411	15.7%	1,487,654	219,108	17.1%	8.2%
Supply Chain Management	452,328	5.2%	452,691	66,674	5.2%	0.1%
UCargo	702,150	8.0%	688,951	101,472	7.9%	(1.9%)
Capital	48,672	0.6%	54,725	8,060	0.6%	12.4%
Total for core logistics and supply chain	7,787,700	89.0%	7,760,122	1,142,943	89.3%	(0.4%)
Store⁺	861,964	9.9%	717,115	105,620	8.2%	(16.8%)
Global	95,632	1.1%	216,017	31,816	2.5%	125.9%
Total Revenue	8,745,296	100%	8,693,254	1,280,379	100%	(0.6%)

Core Logistics and Supply Chain

Express Service Revenue decreased by 2.6% YoY to RMB5,076.1 million (US$747.6 million) from RMB5,209.1 million, primarily due to a 21.9% YoY decrease in ASP per parcel, partially offset by a 24.8% YoY increase in parcel volume. The decrease in ASP is primarily attributable to competitive market dynamics.
Freight Service Revenue increased by 8.2% YoY to RMB1,487.7 million (US$219.1 million) from RMB1,375.4 million, primarily due to a 30.7% YoY increase in freight volume, partially offset by a 17.3% YoY decrease in ASP per tonne.
Supply Chain Management Service Revenue increased by 0.1% YoY to RMB452.7 million (US$66.7 million) from RMB452.3 million.
UCargo Service Revenue decreased by 1.9% YoY to RMB689.0 million (US$101.5 million) from RMB702.2 million, primarily due to discontinuation of several key account customers to minimize credit exposure.
Capital Service Revenue increased by 12.4% YoY to RMB54.7 million (US$8.1 million) from RMB48.7 million.

BEST Store⁺
– Revenue decreased by 16.8% YoY to RMB717.1 million (US$105.6 million) from RMB862.0 million, primarily due to efforts to enhance order quality to improve margins.

BEST Global – Revenue increased by 125.9% YoY to RMB216.0 million (US$31.8 million) from RMB95.6 million, primarily due to strong growth in parcel volumes in Southeast Asia.

Cost of Revenue

The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.

Table 2 – Breakdown of Cost of Revenue by Business Segment

	Three Months Ended					% of Revenue Change YoY
	September 30, 2019		September 30, 2020
(In ‘000, except for %)	RMB	% of Revenue	RMB	US$	% of Revenue
Core logistics and supply chain:
Express	(4,962,151)	95.3%	(5,205,390)	(766,671)	102.5%	7.2 ppt
Freight	(1,289,098)	93.7%	(1,473,252)	(216,987)	99.0%	5.3 ppt
Supply Chain Management	(414,197)	91.6%	(432,945)	(63,766)	95.6%	4.0 ppt
UCargo	(688,305)	98.0%	(675,295)	(99,460)	98.0%	0.0 ppt
Capital	(16,522)	33.9%	(8,066)	(1,188)	14.7%	(19.2 ppt)
Total for core logistics and supply chain	(7,370,273)	94.6%	(7,794,948)	(1,148,072)	100.4%	5.8 ppt
Store⁺	(771,078)	89.5%	(621,059)	(91,472)	86.6%	(2.9 ppt)
Global	(96,889)	101.3%	(239,653)	(35,297)	110.9%	9.6 ppt
Total Cost of Revenue	(8,238,240)	94.2%	(8,655,660)	(1,274,841)	99.6%	5.4 ppt

Cost of Revenue was RMB8,655.7 million (US$1,274.8 million) or 99.6% of revenue in the quarter ended September 30, 2020, compared to RMB8,238.2 million or 94.2% of revenue in the same quarter of 2019. The increase of 5.4 ppts in cost of revenue as a percentage of revenue was primarily attributable to increased costs of Express and Freight businesses.

Table 3 – Breakdown of Average Cost Per Parcel and Average Cost Per Tonne

	Three Months Ended		% Change
(in RMB)	September 30, 2019	September 30, 2020	YoY
Express:
Average Cost Per Parcel	2.62	2.21	(15.9%)
Average Transportation Cost Per Parcel	0.75	0.65	(13.3%)
Average Labor Cost Per Parcel	0.23	0.18	(21.7%)
Average Lease Cost Per Parcel	0.10	0.10	(0.0%)
Average Other Cost Per Parcel	0.11	0.10	(9.1%)
Average Last-mile Cost Per Parcel	1.43	1.18	(17.5%)
Freight:
Average Cost Per Tonne	683.9	597.8	(12.6%)

Express Service Average Cost per Parcel decreased by 15.9%, primarily due to improved operating efficiency and economies of scale.
Freight Service Average Cost per Tonne decreased by 12.6% YoY, primarily due to improved operating efficiency, network optimization and economies of scale.

Gross Profit was RMB37.6 million (US$5.5 million), compared to gross profit of RMB507.1 million in the same quarter of 2019; Gross Margin was 0.4%, compared to 5.8% in the same quarter of 2019.

Operating Expenses

The following table sets forth a breakdown of operating expenses and adjusted operating expenses by category for the periods indicated.

Table 4 – Breakdown of Operating Expenses and Adjusted Operating Expenses by Category

	Three Months Ended
	September 30, 2019		September 30, 2020
(In ‘000, except for %)	RMB	% of Revenue	RMB	US$	% of Revenue	% of Revenue Change YoY
Selling, General and Administrative Expenses	(488,381)	5.6%	(612,849)	(90,263)	7.0%	1.4 ppt
Adjusted for SBC Expenses	(18,166)	0.2%	(32,256)	(4,751)	0.3%	0.1 ppt
Adjusted Selling, General and Administrative Expenses	(470,215)	5.4%	(580,593)	(85,512)	6.7%	1.3 ppt
Research and Development Expenses	(64,522)	0.7%	(53,361)	(7,859)	0.6%	(0.1 ppt)
Adjusted for SBC Expenses	(2,291)	0.0%	(2,135)	(314)	0.0%	0.0 ppt
Adjusted Research and Development Expenses	(62,231)	0.7%	(51,226)	(7,545)	0.6%	(0.1 ppt)
Total Operating Expenses	(552,903)	6.3%	(666,210)	(98,122)	7.6%	1.3 ppt
Adjusted for SBC Expenses	(20,457)	0.2%	(34,391)	(5,065)	0.3%	0.1 ppt
Adjusted Total Operating Expenses	(532,446)	6.1%	(631,819)	(93,057)	7.3%	1.2 ppt

Selling, General and Administrative Expenses were RMB612.8 million (US$90.3 million) or 7.0% of revenue in the quarter ended September 30, 2020, compared to RMB488.4 million or 5.6% of revenue in the same quarter of 2019. The increase in selling, general and administrative expenses was primarily attributable to an accrued provision for certain trade receivables and losses on disposal of fixed assets due to an upgrade of Express’s equipment.

Research and Development Expenses were RMB53.4 million (US$7.9 million) or 0.6% of revenue in the quarter ended September 30, 2020, compared to RMB64.5 million, or 0.7% of revenue in the same quarter of 2019. The decrease in research and development expenses was primarily attributable to capitalization of certain research and development expenditure to intangible assets, as well as reduction in travel expenses.

Share-based Compensation (“SBC”) Expenses included in the cost and expense items above in the quarter ended September 30, 2020 were RMB35.0 million (US$5.2 million), compared to RMB21.0 million in the same quarter of 2019. In the third quarter of 2020, RMB0.6 million (US$0.1 million) was allocated to cost of revenue, RMB1.5 million (US$0.2 million) was allocated to selling expenses, RMB30.8 million (US$4.6 million) was allocated to general and administrative expenses, and RMB2.1 million (US$0.3 million) was allocated to research and development expenses.

Net Loss and Non-GAAP Net Income

Net Loss in the quarter ended September 30, 2020 was RMB639.5 million (US$94.2 million), compared to Net Loss of RMB6.7 million in the same period of 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), non-GAAP Net Loss in the quarter ended September 30, 2020 was RMB612.0 million (US$90.1 million), compared to non-GAAP Net Income of RMB16.7 million in the same quarter of 2019.

The following table sets forth a breakdown of non-GAAP net loss for the three months ended September 30, 2020 by segment.

Table
5
–
Breakdown of non-GAAP Net Loss by Segment

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store⁺

Global

Unallocated
^{^[8]}

Total

Non-GAAP Net
Income/(Loss)

(311,199)

(61,000)

(36,781)

(31,368)

28,447

(70,013)

(63,830)

(66,209)

(611,953)

Diluted EPS and non-GAAP diluted EPS

Diluted EPS in the quarter ended September 30, 2020 was negative RMB1.64(US$0.24), based on a weighted average of 385.4 million diluted shares outstanding during the quarter. This is compared to negative RMB0.01 on a weighted average of 388.8 million diluted shares outstanding in the same period of 2019. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and gain from appreciation of investment (if any for a given period), non-GAAP diluted EPS in the quarter ended September 30, 2020 was negative RMB1.57(US$0.23), compared to RMB0.05 in the same period of 2019. A reconciliation of non-GAAP diluted EPS to diluted EPS is included at the end of this results announcement.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA was negative RMB437.7 million (US$64.5 million), compared to RMB114.3 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 5.0%, compared to 1.3% in the quarter September 30, 2019.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

The following table sets forth a breakdown of adjusted EBITDA and adjusted EBITDA margin for the three months ended September 30, 2020 by segment.

Table
6
–
Breakdown of Adjusted EBITDA and Adjusted EBITDA Margin by Segment

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store⁺

Global

Unallocated
^{^[9]}

Total

Adjusted EBITDA

(211,289)

(44,643)

(26,661)

(29,976)

34,482

(68,213)

(60,699)

(30,727)

(437,726)

Adjusted EBITDA
Margin

(4.2%)

(3.0%)

（
5.9%
）

(4.4%)

63.0%

(9.5%)

(28.1%)

–

(5.0%)

Core Logistics and Supply Chain – Adjusted EBITDA was negative RMB278.1 million (US$41.0 million), compared to RMB266.9 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 3.6%, compared to 3.4% in the quarter ended September 30, 2019.

Store⁺ – Adjusted EBITDA was negative RMB68.2 million (US$10.0 million), compared to negative RMB97.6 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 9.5%, compared to negative 11.3% in the quarter ended September 30, 2019.

Global – Adjusted EBITDA was negative RMB60.7 million (US$8.9 million), compared to negative RMB30.9 million in the quarter ended September 30, 2019. Adjusted EBITDA Margin was negative 28.1%, compared to negative 32.3% in the quarter ended September 30, 2019.

Cash and Cash Equivalents, Restricted Cash and Short-term Investments

As of September 30, 2020, cash and cash equivalents, restricted cash and short-term investments were RMB4,756.3 million (US$700.5 million), compared to RMB5,141.9 million as of June 30, 2020.

Net Cash Generated from Operating Activities

Net cash generated from operating activities was RMB115.4 million (US$17.0 million), compared to RMB237.3 million in the same period of 2019. The decrease in net cash generated from operating activities was mainly due to decreasing ASP in Express and Freight businesses.

Capital Expenditures (“CAPEX”)

CAPEX was RMB486.6 million (US$71.7 million), or 5.6% of total revenue in the quarter ended September 30, 2020, compared to CAPEX of RMB523.0 million, or 6.0% of total revenue, in the same period of 2019. The decrease in CAPEX was primarily due to payment timing differences.

SHARES OUTSTANDING

As of the date of this press release, the Company had approximately 385.4 million ordinary shares outstanding^[10]. Each American Depositary Share represents one Class A ordinary share.

FINANCIAL GUIDANCE

Due to its ongoing strategic refocusing plan, BEST is unable to provide financial guidance at this time. The Company currently plans to resume providing financial guidance in 2021.

WEBCAST AND CONFERENCE CALL INFORMATION

The Company will hold a conference call at 9:00 pm U.S. Eastern Time on November 19, 2020 (10:00 am Beijing Time on November 20), to discuss its financial results and operating performance for the third quarter of 2020.

Participants may access the call by dialing the following numbers:

United States	: +1-888-317-6003
Hong Kong	: 800-963976 or +852-5808-1995
Mainland China	: 4001-206115
International	: +1-412-317-6061
Participant Elite Entry Number	: 6127097

A replay of the conference call will be accessible through November 26, 2020 by dialing the following numbers:

United States	: +1-877-344-7529
International	: +1-412-317-0088
Replay Access Code	: 10149943

Please visit the Company’s investor relations website http://ir.best-inc.com/ on November 19, 2020 to view the earnings release prior to the conference call. A live and archived webcast of the conference call and a corporate presentation will be available at the same site.

ABOUT BEST INC.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-add services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics and financial services. BEST’s mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.

For investor and media inquiries, please contact:

BEST Inc.
Investor relations team
[email protected]

The Piacente Group, Inc.

Yang Song

Tel: +86-10-6508-0677
E-mail: [email protected]

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail:  [email protected]

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST’s strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST’s goals and strategies; BEST’s future business development, results of operations and financial condition; BEST ‘s ability to maintain and enhance its ecosystem; BEST ‘s ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

USE OF NON-GAAP FINANCIAL MEASURES

In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/profit margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, adjusted selling expenses, adjusted general and administrative expenses, adjusted research and development expenses, and non-GAAP diluted EPS, as supplemental measures in the evaluation of the Company’s operating results and in the Company’s financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” in the results announcement.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Summary of Unaudited Condensed Consolidated Income Statements
(In Thousands)

	Three Months Ended September 30,			Nine Months Ended September 30,
	2019	2020		2019	2020
	RMB	RMB	US$	RMB	RMB	US$
Revenue
Express	5,209,139	5,076,101	747,629	14,925,574	13,594,633	2,002,273
Freight	1,375,411	1,487,654	219,108	3,669,126	3,536,163	520,821
Supply Chain Management	452,328	452,691	66,674	1,587,176	1,369,991	201,778
Store⁺	861,964	717,115	105,620	2,206,044	1,837,314	270,607
Global	95,632	216,017	31,816	201,451	524,305	77,222
UCargo	702,150	688,951	101,472	1,665,167	1,562,054	230,066
Capital	48,672	54,725	8,060	153,462	152,524	22,464
Total Revenue	8,745,296	8,693,254	1,280,379	24,408,000	22,576,984	3,325,231
Cost of Revenue
Express	(4,962,151)	(5,205,390)	(766,671)	(14,303,701)	(13,570,902)	(1,998,778)
Freight	(1,289,098)	(1,473,252)	(216,987)	(3,466,109)	(3,532,534)	(520,286)
Supply Chain Management	(414,197)	(432,945)	(63,766)	(1,474,029)	(1,297,689)	(191,129)
Store⁺	(771,078)	(621,059)	(91,472)	(1,962,020)	(1,594,696)	(234,873)
Global	(96,889)	(239,653)	(35,297)	(215,376)	(602,511)	(88,740)
UCargo	(688,305)	(675,295)	(99,460)	(1,620,980)	(1,528,280)	(225,091)
Capital	(16,522)	(8,066)	(1,188)	(45,956)	(19,668)	(2,897)
Total Cost of Revenue	(8,238,240)	(8,655,660)	(1,274,841)	(23,088,171)	(22,146,280)	(3,261,794)
Gross Profit	507,056	37,594	5,538	1,319,829	430,704	63,437
Selling Expenses	(212,714)	(244,925)	(36,074)	(619,203)	(694,135)	(102,235)
General and Administrative Expenses	(275,667)	(367,924)	(54,189)	(863,913)	(993,627)	(146,345)
Research and Development Expenses	(64,522)	(53,361)	(7,859)	(181,058)	(164,175)	(24,180)
Total Operating Expenses	(552,903)	(666,210)	(98,122)	(1,664,174)	(1,851,937)	(272,760)
Loss from Operations	(45,847)	(628,616)	(92,584)	(344,345)	(1,421,233)	(209,323)
Interest Income	21,242	18,106	2,667	71,291	58,106	8,558
Interest Expense	(12,023)	(46,583)	(6,861)	(52,767)	(121,134)	(17,841)
Foreign Exchange
Gain/(Loss)	661	(9,199)	(1,355)	(3,405)	(9,014)	(1,328)
Other Income	38,225	40,700	5,994	91,860	112,569	16,580
Other Expense	(5,216)	(7,244)	(1,067)	(13,136)	(25,605)	(3,771)
Loss before Income Tax and Share of Net Loss of Equity Investees	(2,958)	(632,836)	(93,206)	(250,502)	(1,406,311)	(207,125)
Income Tax Expense	(3,691)	(6,633)	(977)	(11,793)	(14,735)	(2,170)
Loss before Share of Net loss of Equity Investees	(6,649)	(639,469)	(94,183)	(262,295)	(1,421,046)	(209,295)
Share of Net Loss of Equity Investees	(47)	(40)	(6)	(183)	(114)	(17)
Net Loss	(6,696)	(639,509)	(94,189)	(262,478)	(1,421,160)	(209,312)
Net Loss attributable to non- controlling interests	(3,214)	(5,959)	(878)	(8,644)	(20,390)	(3,003)
Net loss attributable to Best Inc.	(3,482)	(633,550)	(93,311)	(253,834)	(1,400,770)	(206,309)
Net loss attributable to ordinary shareholders	(3,482)	(633,550)	(93,311)	(253,834)	(1,400,770)	(206,309)

Summary of Unaudited Condensed Consolidated Balance Sheets
(in thousands)

	As of December 31, 2019	As of September 30, 2020
	RMB	RMB	US$
Assets
Current Assets
Cash and Cash Equivalents	1,994,683	1,814,016	267,176
Restricted Cash	1,786,832	2,008,550	295,827
Accounts and Notes Receivables	1,229,083	931,411	137,180
Inventories	140,006	166,402	24,508
Prepayments and Other Current Assets	2,750,126	3,383,635	498,356
Short–term Investments	1,057,598	306,490	45,141
Lease Rental Receivables	483,363	528,317	77,813
Amounts Due from Related Parties	246,758	156,522	23,053
Total Current Assets	9,688,449	9,295,343	1,369,054
Non–current Assets
Property and Equipment, Net	2,939,379	3,836,048	564,989
Intangible Assets, Net	121,587	111,800	16,466
Goodwill	490,986	499,433	73,559
Long–term Investments	230,855	240,580	35,434
Non–current Deposits	127,191	137,525	20,255
Other Non–current Assets	346,645	584,015	86,016
Operating Lease Right-of-use Assets	4,378,804	4,123,906	607,386
Lease Rental Receivables	993,260	784,057	115,479
Restricted Cash	175,700	627,218	92,379
Total non–current Assets	9,804,407	10,944,582	1,611,963
Total Assets	19,492,856	20,239,925	2,981,017
Liabilities and Shareholders’ Equity
Current Liabilities
Short–term Bank Loans	2,510,500	3,099,750	456,544
Securitization Debt	104,899	193,260	28,464
Accounts and Notes Payable	3,391,383	3,770,913	555,395
Accrued Expenses and Other Liabilities	2,019,634	2,264,224	333,484
Customer Advances and Deposits and Deferred Revenue	1,489,510	1,585,970	233,588
Operating Lease Liabilities	1,035,252	1,104,411	162,662
Financing Lease Liabilities	1,363	529	78
Amounts Due to Related Parties	9,769	21,919	3,228
Income Tax Payable	7,358	10,662	1,570
Total Current Liabilities	10,569,668	12,051,638	1,775,013
Non-current Liabilities
Securitization Debt	–	23,766	3,500
Convertible senior notes held by related parties	680,104	1,684,166	248,051
Convertible Senior Notes held by third parties	680,104	668,630	98,479
Operating Lease Liabilities	3,482,634	3,167,567	466,532
Financing Lease Liabilities	2,072	4,366	643
Deferred Tax Liabilities	25,806	23,857	3,514
Other Non–current Liabilities	137,184	196,585	28,954
Long-term Bank Loans	–	79,333	11,684
Total Non–current Liabilities	5,007,904	5,848,270	861,357
Total Liabilities	15,577,572	17,899,908	2,636,370
Shareholders’ Equity
Ordinary Shares	25,988	25,988	3,828
Treasury Shares	–	(211,352)	(31,129)
Additional Paid–In Capital	19,353,400	19,458,478	2,865,924
Statutory reserves	7,865	10,267	1,512
Accumulated Deficit	(15,629,537)	(17,088,455) ^[11]	(2,516,857)
Accumulated Other Comprehensive Income	163,196	165,778	24,416
BEST Inc. Shareholders’ Equity	3,920,912	2,360,704	347,694
Non-controlling Interests	(5,628)	(20,687)	(3,047)
Total Shareholders’ Equity	3,915,284	2,340,017	344,647
Total Liability and Shareholders’ Equity	19,492,856	20,239,925	2,981,017

Summary of Unaudited Condensed Consolidated Statements of Cash Flows
(In Thousands)

	Three Months Ended September 30,			Nine Months Ended September 30,
	2019	2020		2019	2020
	RMB	RMB	US$	RMB	RMB	US$
Net Cash Generated from/ (Used in) Operating Activities	237,337	115,351	16,989	366,029	(455,556)	(67,096)
Net Cash Used in Investing Activities	(556,306)	(539,659)	(79,483)	(1,383,557)	(708,826)	(104,399)
Net Cash Generated from Financing Activities	897,235	371,217	54,674	1,558,732	1,738,283	256,021
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	41,930	(106,521)	(15,689)	41,860	(81,332)	(11,979)
Net Increase/(Decrease) in Cash and Cash Equivalents, and Restricted Cash	620,196	(159,612)	(23,509)	583,064	492,569	72,547
Cash and Cash Equivalents, and Restricted Cash at Beginning of Period	2,962,276	4,609,396	678,891	2,999,408	3,957,215	582,835
Cash and Cash Equivalents, and Restricted Cash at End of Period	3,582,472	4,449,784	655,382	3,582,472	4,449,784	655,382

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES

The table below sets forth a reconciliation of the Company’s net loss to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:

Table 7 –
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store⁺

Global

Unallocated
^{^[12]}

Total

Net Income/(Loss)

(314,911)

(63,702)

(39,729)

(32,235)

28,379

(73,582)

(66,984)

(76,745)

(639,509)

Add

Depreciation &
Amortization

98,294

16,357

10,120

1,392

381

3,622

4,320

7,005

141,491

Interest Expense

–

46,583

Income Tax Expense

1,616

–

5,654

(364)

(273)

–

6,633

Subtract

Interest Income

–

(18,106)

EBITDA

(215,001)

(47,345)

(29,609)

(30,843)

34,414

(70,324)

(62,937)

(41,263)

(462,908)

Add

Share-based
Compensation
Expenses

3,712

2,702

2,948

867

2,111

2,238

20,374

35,020

Subtract

Gain from
appreciation of
investments

–

(9,838)

Adjusted EBITDA

(211,289)

(44,643)

(26,661)

(29,976)

34,482

(68,213)

(60,699)

(30,727)

(437,726)

Adjusted EBITDA
Margin

(4.2%)

(3.0%)

(5.9%)

(4.4%)

63.0%

(9.5%)

(28.1%)

–

(5.0%)

Three Months Ended September 30, 2019

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store⁺

Global

Unallocated
^{^[13]}

Total

Net Income/(Loss)

117,440

26,579

(10,651)

(7,033)

28,534

(102,365)

(35,275)

(23,925)

(6,696)

Add

Depreciation &
Amortization

63,765

13,492

13,895

530

3,570

2,373

7,904

105,601

Interest Expense

–

12,023

Income Tax Expense

–

4,345

(385)

(278)

–

3,691

Subtract

Interest Income

–

(21,242)

EBITDA

181,205

40,071

3,253

(6,961)

33,409

(99,180)

(33,180)

(25,240)

93,377

Add

Share-based
Compensation
Expenses

10,363

2,332

2,474

655

1,617

2,263

1,195

20,959

Adjusted EBITDA

191,568

42,403

5,727

(6,306)

33,469

(97,563)

(30,917)

(24,045)

114,336

Adjusted EBITDA
Margin

3.7%

3.1%

1.3%

(0.9%)

68.8%

(11.3%)

(32.3%)

–

1.3%

The table below sets forth a reconciliation of the Company’s net loss to non-GAAP net loss, non-GAAP net loss margin for the periods indicated:

Table 8 –
Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss Margin

Three Months Ended September 30, 2020

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store⁺

Global

Unallocated
^{^[14]}

Total

Net Income/(Loss)

(314,911)

(63,702)

(39,729)

(32,235)

28,379

(73,582)

(66,984)

(76,745)

(639,509)

Add

Share-based
Compensation
Expenses

3,712

2,702

2,948

867

2,111

2,238

20,374

35,020

Amortization of
Intangible Assets
Resulting from
Business
Acquisition

–

1,458

916

–

2,374

Subtract

Gain from
appreciation of
investments

–

(9,838)

Non-GAAP Net
Income/(Loss)

(311,199)

(61,000)

(36,781)

(31,368)

28,447

(70,013)

(63,830)

(66,209)

(611,953)

Non-GAAP Net
Income/(Loss)
Margin

(6.1%)

(4.1%)

(8.1%)

(4.6%)

52.0%

(9.8%)

(29.5%)

–

(7.0%)

Three Months Ended September 30, 2019

Core logistics and supply chain

(In RMB’000)

Express

Freight

Supply Chain

UCargo

Capital

Store⁺

Global

Unallocated

Total

Net Income/(Loss)

117,440

26,579

(10,651)

(7,033)

28,534

(102,365)

(35,275)

(23,925)

(6,696)

Add

Share-based Compensation Expenses

10,363

2,332

2,474

655

1,617

2,263

1,195

20,959

Amortization of Intangible Assets Resulting from Business Acquisitions

–

1,541

930

–

2,471

Non-GAAP Net Income/(Loss)

127,803

28,911

(8,177)

(6,378)

28,594

(99,207)

(32,082)

(22,730)

16,734

Non-GAAP Net Loss Margin

2.5%

2.1%

(1.8%)

(0.9%)

58.7%

(11.5%)

(33.5%)

–

0.2%

The table below sets forth a reconciliation of the Company’s diluted EPS to non-GAAP diluted EPS for the periods indicated:

Table 9 – Reconciliation of Diluted EPS and Non-GAAP Diluted EPS

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020		2020
(In ‘000)	RMB	US$	RMB	US$
Net Loss Attributable to Ordinary Shareholders	(633,550)	(93,311)	(1,400,770)	(206,309)
Add
Share-based Compensation Expenses	35,020	5,158	110,954	16,342
Amortization of Intangible Assets Resulting from Business Acquisitions	2,374	350	7,266	1,070
Subtract
Gain from appreciation of investments	(9,838)	(1,449)	(9,838)	(1,449)
Non-GAAP Net Loss Attributable to Ordinary Shareholders for Computing Non-GAAP Diluted EPS	(605,994)	(89,252)	(1,292,388)	(190,346)
Weighted Average Diluted Shares Outstanding During the Quarter
Diluted	385,430,134	385,430,134	388,136,651	388,136,651
Diluted (Non-GAAP)	385,430,134	385,430,134	388,136,651	388,136,651
Diluted EPS	(1.64)	(0.24)	(3.61)	(0.53)
Add
Non-GAAP adjustment to net loss per share	0.07	0.01	0.28	0.04
Non-GAAP Diluted EPS	(1.57)	(0.23)	(3.33)	(0.49)

^[1]

All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on figures before rounding.

^[2]

Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).

^[3]

See the sections entitled “Use of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.

^[4]

Diluted earnings per share, or Diluted EPS, is calculated by dividing net profit attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period.

^[5]

Non-GAAP diluted earnings per share, or non-GAAP diluted EPS, represents diluted earnings per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).

^[6]

EBITDA represents net loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).

^[7]

All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year-over-year comparisons are based on figures before rounding.

^[8]

Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

^[9]

Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

^[10]

The total number of shares outstanding excludes shares reserved for future issuances upon exercise or vesting of awards granted under the Company’s share incentive plans.

^[11]

Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,807, and accumulated loss from operations of RMB7,594,648

^[12]

Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

^[13]

Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

^[14]

Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

^[15]

Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.

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SOURCE BEST Inc.

November 19, 2020 5:03 pm

BlackRock Florida Municipal 2020 Term Trust & BlackRock Municipal 2020 Term Trust: Announcement of Adoption of Plan of Termination

BlackRock Florida Municipal 2020 Term Trust & BlackRock Municipal 2020 Term Trust: Announcement of Adoption of Plan of Termination

NEW YORK–(BUSINESS WIRE)–
BlackRock Advisors, LLC announced today that the Board of each of BlackRock Florida Municipal 2020 Term Trust (NYSE:BFO, CUSIP: 09250M109) and BlackRock Municipal 2020 Term Trust (NYSE:BKK, CUSIP: 09249X109) (each, a “Fund” and together, the “Funds”) approved the adoption of a Plan of Termination. Under each Fund’s Plan of Termination, which is effective as of November 19, 2020, the Fund will begin the process of liquidating portfolio assets and unwinding its affairs. Each Fund expects to make a final liquidating distribution or transfer any remaining assets into a liquidation trust, if necessary, on or around December 23, 2020.

Upon the effectiveness of each Fund’s Plan of Termination, the Automatic Dividend Reinvestment Plan of each Fund has been suspended with respect to any dividends or distributions for which the record date is on or after November 19, 2020. All such dividends or distributions will be paid in cash.

An investment objective for each Fund is to return $15.00 per common share (the initial public offering price per common share) to holders of common shares on or about December 31, 2020. As of the close of business on November 18, 2020, BFO’s and BKK’s net asset value (“NAV”) per share was $14.81 and $15.08, respectively. BFO will not achieve its investment objective of returning $15.00 per common share on or about December 31, 2020. There is no assurance that BKK will achieve its investment objective of returning $15.00 per common share on or about December 31, 2020. Each Fund’s daily NAV can be found at www.blackrock.com.

Each Fund’s common shares will continue to trade the “regular way” on the New York Stock Exchange through December 14, 2020 and will be suspended from trading before the opening on December 15, 2020.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of September 30, 2020, the firm managed approximately $7.81 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this release.

Forward-Looking Statements

This press release, and other statements that BlackRock or the Funds may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to a Fund’s or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

With respect to the Funds, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for a Fund or in a Fund’s net asset value; (2) the relative and absolute investment performance of a Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to a Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

Annual and Semi-Annual Reports and other regulatory filings of the Funds with the SEC are accessible on the SEC’s website atwww.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on BlackRock’s website is not a part of this press release.

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1-800-882-0052

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

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November 19, 2020 5:03 pm

Dollar General Extends its Mission through Annual Holiday Support

Dollar General Extends its Mission through Annual Holiday Support

Major Retailer to Collect In-Store Donations and Provide $485,000 to Nonprofits and Schools;

Celebrates 15^th Anniversary with St. Jude Children’s Research Hospital

GOODLETTSVILLE, Tenn.–(BUSINESS WIRE)–
Dollar General (NYSE:DG) is excited to announce its annual holiday support of the communities it calls home through in-store collections and $485,000 in donations to benefit local toy drives, including the Marine Toys for Tots Foundation, St. Jude Children’s Research Hospital’s Thanks and Giving® campaign and area schools and nonprofit organizations.

“During this season of giving, we look forward to spreading holiday cheer across our hometown communities,” said Denine Torr, Dollar General’s senior director of community initiatives. “Some of the greatest gifts are health, happiness and hope. Our work to support the research and care at St. Jude, to ensure children have holiday presents through toy drives and Toys for Tots and by extending surprise gifts to nonprofits and schools help us to extend the spirit of the season and our mission of Serving Others.”

Specific activations this holiday season include:

15^th Anniversary Partnership with St. Jude’s Thanks and Giving® campaign: In 2020, Dollar General is commemorating its 15^th anniversary of partnering with the St. Jude Children’s Research Hospital’s Thanks and Giving® campaign. To further support St. Jude, the Company will provide a $125,000 donation and collect in-store donations from November 20 through December 18. Since 2005, Dollar General and customers’ in-store donations have provided more than $26.3 million to support childhood cancer research.
Additionally, DG plans to help make the holidays brighter by extending cheer and donating Santa’s Workshop presents to children and their families at St. Jude this season.

Local Toy Drives: DG also plans to support families this holiday season through its annual in-store toy drives. Between November 20 and December 4, customers may donate toys at each DG store to benefit a local toy drive or the Marine Toys for Tots Foundation. Store managers at each store chooses the recipient organization of the toy drive so that items donated are distributed in the local community. Dollar General is also providing a $100,000 donation to the Marine Toys for Tots Foundation to support and further their work.

School and Nonprofit Donations: As part of DG’s efforts to strengthen local communities, the Company plans to surprise 26 schools and nonprofit organizations with $10,000 each over the holiday season. Funding aims to support education and hunger relief efforts.

For additional information, photographs or items to supplement a story, please visit the DG Newsroom, contact the Media Relations Department at 1-877-944-DGPR (3477) or via email at [email protected].

About Dollar General Corporation

Dollar General Corporation has been delivering value to shoppers for more than 80 years through its mission of Serving Others. Dollar General helps shoppers Save time. Save money. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 16,720 stores in 46 states as of July 31, 2020. In addition to high-quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo. Learn more about Dollar General at www.dollargeneral.com.

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Crystal Ghassemi

Media Hotline: 1-877-944-DGPR (3477)

[email protected]

KEYWORDS: Tennessee United States North America

INDUSTRY KEYWORDS: Fund Raising Other Philanthropy Philanthropy

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November 19, 2020 5:03 pm

ACAMS’ 2nd Annual AML and Anti-Financial Crime Conference – Virtual Caribbean to Bring Together Region’s Most Prominent Compliance Experts for Groundbreaking 2-Day Event

ACAMS’ 2nd Annual AML and Anti-Financial Crime Conference – Virtual Caribbean to Bring Together Region’s Most Prominent Compliance Experts for Groundbreaking 2-Day Event

Speakers include officials from the Caribbean Financial Action Task Force, Caribbean Development Bank, Cayman Islands Monetary Authority, Bank of Jamaica, Bahamas Financial Services Board, and the OECD

CHICAGO–(BUSINESS WIRE)–
As part of its ongoing effort to support compliance professionals across the globe during these trying times, ACAMS will host its 2nd Annual AML & Anti-Financial Crime Conference – Virtual Caribbean beginning on Dec. 1. The unique, two-day training and networking event will feature key financial regulators, high-ranking law enforcement officials, compliance executives and other subject-matter experts for panel discussions on the Caribbean’s most pressing anti-financial crime concerns, including regulatory expectations related to the COVID-19 pandemic, the threat of trade-based money laundering and the hurdles to maintaining correspondent banking services in jurisdictions deemed high-risk.

Attendees of the Virtual Caribbean conference will also have the opportunity to network online with their peers and ask questions of the region’s supervisory officials and compliance experts, all from the safety of their homes. In addition to the strong line-up of speakers, this year’s conference will feature more female speakers and panelists than ever, with women actually outnumbering their male counterparts.

“Compliance professionals who attended our inaugural Caribbean conference in Miami last year made it clear that correspondent banking, corruption and human trafficking are among the region’s biggest AFC priorities, and we’re proud to say that we have senior governmental officials from the Bahamas, Jamaica, Curacao, Trinidad & Tobago and the United States speaking to these issues this year,” said Angela Salter, interim president of ACAMS. “We’re all looking forward to hearing directly from keynote speaker Lt. Col. Edward Croft, who currently serves as the Chair of the Caribbean Financial Action Task Force (CFATF) and will offer attendees insights into CFATF’s priorities over the coming year.”

“ACAMS recognizes that the Caribbean remains a vital global financial center, with a compliance sector that is comprised as much of individuals as it is of institutions,” she said. “The Virtual Caribbean conference is an unparalleled opportunity for those compliance professionals to learn from the region’s leading AFC experts and network with their peers from other firms.”

Taken together, the panels offer actionable, practical guidance for attendees to adopt and adapt for their own institutions on topics as diverse as artificial intelligence tools, enhanced risk management and emerging threats related to fraud and sanctions evasion.

Participants will be able to view panels in real-time or watch on-demand content that will be made available for 90-days following the conference. The full program for the conference can be found here.

About ACAMS®

ACAMS is a member of Adtalem Global Education (NYSE: ATGE), a leading workforce solutions provider headquartered in the United States. ACAMS is the largest international membership organization dedicated to enhancing the knowledge and skills of anti-money laundering (AML) and financial crime prevention professionals from a wide range of industries. Its CAMS certification is the most widely recognized AML certification among compliance professionals worldwide. Its new Certified Global Sanctions Specialist (CGSS) certification commenced in January 2020. Visit acams.org for more information.

About Adtalem Global Education

The purpose of Adtalem Global Education is to empower students to achieve their goals, find success, and make inspiring contributions to our global community. Adtalem Global Education Inc. (NYSE: ATGE; member S&P MidCap 400 Index) is a leading workforce solutions provider and the parent organization of American University of the Caribbean School of Medicine, Association of Certified Anti-Money Laundering Specialists, Becker Professional Education, Chamberlain University, EduPristine, OnCourse Learning, Ross University School of Medicine and Ross University School of Veterinary Medicine. For more information, please visit adtalem.com and follow us on Twitter (@adtalemglobal) and LinkedIn.

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Lashvinder Kaur

[email protected]

+44 7388 264478

KEYWORDS: Illinois Trinidad and Tobago United States Caribbean Bahamas Jamaica North America

INDUSTRY KEYWORDS: Finance Law Enforcement/Emergency Services Professional Services Legal Public Policy/Government

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November 19, 2020 5:03 pm

First Trust Senior Floating Rate 2022 Target Term Fund Declares its Monthly Common Share Distribution of $0.0153 Per Share for December

First Trust Senior Floating Rate 2022 Target Term Fund Declares its Monthly Common Share Distribution of $0.0153 Per Share for December

WHEATON, Ill.–(BUSINESS WIRE)–
First Trust Senior Floating Rate 2022 Target Term Fund (the “Fund”) (NYSE: FIV) has declared the Fund’s regularly scheduled monthly common share distribution in the amount of $0.0153 per share payable on December 15, 2020, to shareholders of record as of December 2, 2020. The ex-dividend date is expected to be December 1, 2020. The monthly distribution information for the Fund appears below.

First Trust Senior Floating Rate 2022 Target Term Fund (FIV):
Distribution per share:	$0.0153
Distribution Rate based on the November 18, 2020 NAV of $9.31:	1.97%
Distribution Rate based on the November 18, 2020 closing market price of $8.68:	2.12%

The majority, and possibly all, of this distribution will be paid out of net investment income earned by the Fund. A portion of this distribution may come from net short-term realized capital gains or return of capital. The final determination of the source and tax status of all distributions paid in 2020 will be made after the end of 2020 and will be provided on Form 1099-DIV.

The Fund is a diversified, closed-end management investment company. The Fund’s investment objectives are to seek a high level of current income and to return $9.85 per common share of beneficial interest (“Common Share”) of the Fund (the original net asset value (“Original NAV”) per Common Share before deducting offering costs of $0.02 per Common Share) to the holders of Common Shares on or about February 1, 2022 (the “Termination Date”). The Fund, under normal market conditions, pursues its objectives by primarily investing at least 80% of its Managed Assets in a portfolio of senior secured floating-rate loans of any maturity. “Managed Assets” means the total asset value of the Fund minus the sum of its liabilities, other than the principal amount of borrowings. There can be no assurance that the Fund’s investment objectives will be achieved.

As a result of the sharp and sudden economic shock resulting from the unprecedented shut down of significant parts of the U.S. economy in March due to the COVID-19 pandemic, the value of the Fund’s assets experienced a significant decline. Consequently, the Fund was required to sell assets and pay down outstanding indebtedness in order to remain in compliance with applicable limitations on leverage imposed on the Fund by applicable law. While the market for the Fund’s assets has improved, sales of the Fund’s investments during the downturn had a negative impact on the Fund’s NAV. In addition, due to the Federal Open Market Committee lowering the Federal Funds target rate to 0%-.25% from 1.50% – 1.75% in March 2020, LIBOR rates declined significantly which reduced the income earning potential of the Fund and its ability to increase NAV through withholding Fund income. As a result, based on current market conditions and expectations, the Fund believes that it is unlikely to achieve its objective of returning $9.85 per Common Share upon its termination. The ultimate NAV of the Fund that will be returned to shareholders upon termination of the Fund will be dependent on a number of factors including, but not limited to, the severity of the economic contraction, the level of income earned in the portfolio, default losses experienced in the portfolio, trading losses in the portfolio and the use of leverage. As indicated above, the recent decline in interest rates, with 3-month LIBOR falling to 0.22% as of October 31, 2020 from 1.45% as of March 31, 2020, has reduced the income generated by the portfolio. Moreover, the portfolio management team anticipates actively reducing the Fund’s leverage and shifting the portfolio composition to shorter dated higher quality holdings as the Fund approaches its termination date. As a result of these actions, investors should anticipate periodic reductions in the Fund’s distribution per share going forward.

First Trust Advisors L.P. (“FTA”) is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $147 billion as of October 31, 2020 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be appropriate for all investors.

Principal Risk Factors: Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.

The Fund will typically invest in senior loans rated below investment grade, which are commonly referred to as “junk” or “high-yield” securities and considered speculative because of the credit risk of their issuers. Such issuers are more likely than investment grade issuers to default on their payments of interest and principal owed to the Fund, and such defaults could reduce the Fund’s NAV and income distributions. An economic downturn would generally lead to a higher non-payment rate, and a senior loan may lose significant market value before a default occurs. Moreover, any specific collateral used to secure a senior loan may decline in value or become illiquid, which would adversely affect the senior loan’s value.

The senior loan market has seen an increase in loans with weaker lender protections which may impact recovery values and/or trading levels in the future. The absence of financial maintenance covenants in a loan agreement generally means that the lender may not be able to declare a default if financial performance deteriorates. This may hinder the Fund’s ability to reprice credit risk associated with a particular borrower and reduce the Fund’s ability to restructure a problematic loan and mitigate potential loss. As a result, the Fund’s exposure to losses on investments in senior loans may be increased, especially during a downturn in the credit cycle or changes in market or economic conditions.

In the event a borrower fails to pay scheduled interest or principal payments on a senior loan held by the Fund, the Fund will experience a reduction in its income and a decline in the value of the senior loan, which will likely reduce dividends and lead to a decline in the net asset value of the Fund’s common shares. If the Fund acquires a senior loan from another lender, for example, by acquiring a participation, the Fund may also be subject to credit risks with respect to that lender. Although senior loans may be secured by specific collateral, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may decline below the principal amount of the senior loan subsequent to the Fund’s investment. Also, to the extent that collateral consists of stock of the borrower or its subsidiaries or affiliates, the Fund bears the risk that the stock may decline in value, be relatively illiquid, and/or may lose all or substantially all of its value, causing the senior loan to be under collateralized. Therefore, the liquidation of the collateral underlying a senior loan may not satisfy the issuer’s obligation to the Fund in the event of non-payment of scheduled interest or principal, and the collateral may not be readily liquidated.

Many financial instruments use or may use a floating rate based upon the London Interbank Offered Rate (LIBOR), which is being phased out by the end of 2021. There remains some uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate.

The Fund’s limited term may cause it to invest in lower-yielding securities or hold the proceeds of securities sold near the end of its term in cash or cash equivalents, which may adversely affect the performance of the Fund or the Fund’s ability to maintain its dividend.

A second lien loan may have a claim on the same collateral pool as the first lien or it may be secured by a separate set of assets. Second lien loans are typically secured by a second priority security interest or lien on specified collateral securing the Borrower’s obligation under the interest. Because second lien loans are second to first lien loans, they present a greater degree of investment risk. Specifically, these loans are subject to the additional risk that the cash flow of the Borrower and property securing the loan may be insufficient to meet scheduled payments after giving effect to those loans with a higher priority. In addition, loans that have a lower than first lien priority on collateral of the Borrower generally have greater price volatility than those loans with a higher priority and may be less liquid.

Because the assets of the Fund will be liquidated in connection with its termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, or at a time when a particular security is in default or bankruptcy, or otherwise in severe distress, which may cause the Fund to lose money. Although the Fund has an investment objective of returning Original NAV to Common Shareholders on or about the Termination Date, the Fund may not be successful in achieving this objective. The return of Original NAV is not an express or implied guarantee obligation of the Fund. There can be no assurance that the Fund will be able to return Original NAV to Common Shareholders, and such return is not backed or otherwise guaranteed by the Advisor or any other entity.

The Fund’s portfolio is also subject to credit risk, interest rate risk, liquidity risk, prepayment risk and reinvestment risk. Interest rate risk is the risk that fixed-income securities will decline in value because of changes in market interest rates. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and that the value of a security may decline as a result. Credit risk may be heightened for the Fund because it invests in below investment grade securities. Liquidity risk is the risk that the fund may have difficulty disposing of senior loans if it seeks to repay debt, pay dividends or expenses, or take advantage of a new investment opportunity. Prepayment risk is the risk that, upon a prepayment, the actual outstanding debt on which the Fund derives interest income will be reduced. The Fund may not be able to reinvest the proceeds received on terms as favorable as the prepaid loan. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called instruments at market interest rates that are below the Fund’s portfolio’s current earnings rate.

The risks of investing in the Fund are spelled out in the shareholder reports and other regulatory filings.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

The Fund’s daily closing New York Stock Exchange price and net asset value per share as well as other information can be found at www.ftportfolios.com or by calling 1-800-988-5891.

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Press Inquiries Jane Doyle 630-765-8775

Analyst Inquiries Jeff Margolin 630-915-6784

Broker Inquiries Jeff Margolin 630-915-6784

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Professional Services Finance

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November 19, 2020 5:03 pm

BellRing Brands Reports Results for the Fourth Quarter and Fiscal Year 2020

ST. LOUIS, Nov. 19, 2020 (GLOBE NEWSWIRE) — BellRing Brands, Inc. (NYSE:BRBR) (“BellRing”), a holding company operating in the global convenient nutrition category, today reported results for the fourth quarter and fiscal year ended September 30, 2020.

Highlights:

Fourth quarter net sales of $282.6 million; operating profit of $49.0 million; net earnings available to Class A common stockholders of $10.0 million and Adjusted EBITDA of $56.7 million
Fiscal year net sales of $988.3 million; operating profit of $164.0 million; net earnings available to Class A common stockholders of $23.5 million and Adjusted EBITDA of $197.2 million
Fiscal year 2021 net sales and Adjusted EBITDA expected to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million)

Fourth Quarter Operating Results

Net sales were $282.6 million, an increase of 31.7%, or $68.1 million, compared to the prior year period. Premier Protein net sales increased 37.2%, with volumes up 40.6%, and Premier Protein ready-to-drink (“RTD”) shake net sales increased 39.8%, with volumes up 46.2%. Premier Protein net sales benefited from RTD shake distribution gains for both existing and new products, incremental promotional activity and lapping a reduction in customer trade inventory levels in the prior year period. Additionally, net sales benefited from an increase in customer trade inventory levels, as RTD shake shipments exceeded consumption driven by certain promotional events and retailer shelf resets that occurred early in the first quarter of 2021. Dollar consumption of Premier Protein RTD shakes increased 20% in the 13-week period ended September 26, 2020 as compared to the same period in 2019 (inclusive of Nielsen Total US xAOC including Convenience and management estimates of untracked channels).

Dymatize net sales increased 14.5%, with volumes increasing 22.1%, as strong growth in eCommerce and in the mass and club channels were partially offset by declines in international. PowerBar net sales increased 1.0%, with volumes declining 13.6%. Dymatize and PowerBar net sales improved when compared to the third quarter of 2020, but the international business continued to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic.

Gross profit was $89.8 million, or 31.8% of net sales, an increase of 17.1%, or $13.1 million, compared to the prior year period gross profit of $76.7 million, or 35.8% of net sales. The lower gross profit margin was driven by anticipated higher input costs (predominantly milk-based proteins for RTD shakes) and lower average net selling prices, resulting from incremental promotional activity.

Selling, general and administrative (“SG&A”) expenses were $35.2 million, or 12.5% of net sales, an increase of $0.1 million compared to the prior year period SG&A expenses of $35.1 million, or 16.4% of net sales. SG&A expenses included $3.1 million higher employee-related expenses and $1.8 million incremental public company costs (inclusive of stock-based compensation), which were partially offset by $2.7 million lower costs related to BellRing’s separation from Post Holdings, Inc. (“Post”). Separation costs were treated as adjustments for non-GAAP measures.

Operating profit was $49.0 million, an increase of 36.1%, or $13.0 million, compared to the prior year period operating profit of $36.0 million.

Interest expense, net was $13.5 million and primarily related to debt borrowed in connection with the creation of BellRing’s capital structure in the first quarter of 2020. No interest expense was recorded in the prior year period.

Income tax expense was $0.0 million in the fourth quarter of 2020, an effective income tax rate of 0.0%, compared to $9.3 million in the fourth quarter of 2019, an effective income tax rate of 25.8%. In the fourth quarter of 2020, the effective income tax rate differed significantly from the statutory rate as a result of (i) taking into account for U.S. federal, state and local income tax purposes a 28.8% distributive share of the items of income, gain, loss and deduction of BellRing Brands, LLC (“BellRing LLC”) and (ii) a favorable adjustment recorded in connection with finalizing the tax deductibility of transaction costs associated with BellRing’s initial public offering (the “IPO”).

Net earnings available to Class A common stockholders were $10.0 million compared to zero in the prior year period. Net earnings available to Class A common stockholders excluded $25.5 million of net earnings attributable to the Company’s redeemable noncontrolling interest (“NCI”) compared to $26.7 million excluded in the prior year period. Net earnings per diluted share of Class A common stock were $0.26. Adjusted net earnings available to Class A common stockholders were $9.8 million, or $0.25 per diluted share of Class A common stock.

Adjusted EBITDA was $56.7 million, an increase of 22.5%, or $10.4 million, compared to the prior year period Adjusted EBITDA of $46.3 million. Adjusted EBITDA in the fourth quarter of 2020 included an adjustment for the portion of BellRing LLC’s consolidated net earnings which was allocated to NCI, resulting in the calculation of Adjusted EBITDA including 100% of BellRing.

Fiscal Year 2020 Operating Results

Net sales were $988.3 million, an increase of 15.7%, or $133.9 million, compared to the prior year. Premier Protein net sales increased 21.8%, with volumes increasing 22.7%. Dymatize net sales declined 3.5%, with volumes declining 0.8%. PowerBar net sales declined 20.1%, with volumes declining 28.9%.

Gross profit was $338.0 million, or 34.2% of net sales, an increase of 8.4%, or $26.2 million, compared to the prior year gross profit of $311.8 million, or 36.5% of net sales. The lower gross profit margin was driven by anticipated higher input costs (predominantly milk-based proteins for RTD shakes) and incremental promotional activity.

SG&A expenses were $151.8 million, or 15.4% of net sales, an increase of $24.7 million compared to the prior year SG&A expenses of $127.1 million, or 14.9% of net sales, with the increase primarily driven by $13.1 million higher marketing and consumer advertising expenses and $8.7 million incremental public company costs (inclusive of stock-based compensation). SG&A expenses for fiscal years 2020 and 2019 included $1.9 million and $6.7 million, respectively, of costs related to BellRing’s separation from Post, which were treated as adjustments for non-GAAP measures.

Operating profit was $164.0 million, an increase of 0.9%, or $1.5 million, compared to the prior year operating profit of $162.5 million.

Interest expense, net was $54.7 million and primarily related to debt borrowed in connection with the creation of BellRing’s capital structure in the first quarter of 2020. No interest expense was recorded in the prior year.

Income tax expense was $9.2 million in fiscal year 2020, an effective income tax rate of 8.4%, compared to $39.4 million in fiscal year 2019, an effective income tax rate of 24.2%. For fiscal year 2020, the effective income tax rate differed significantly from the statutory rate primarily as a result of taking into account for U.S. federal, state and local income tax purposes a 28.8% distributive share of the items of income, gain, loss and deduction of BellRing LLC in the period subsequent to BellRing’s IPO.

Net earnings available to Class A common stockholders were $23.5 million compared to zero in the prior year. Net earnings available to Class A common stockholders excluded $76.6 million of net earnings attributable to the Company’s NCI compared to $123.1 million excluded in the prior year. Net earnings per diluted share of Class A common stock were $0.60. Adjusted net earnings available to Class A common stockholders were $23.9 million, or $0.61 per diluted share of Class A common stock.

Adjusted EBITDA was $197.2 million, a decrease of 0.5%, or $0.9 million, compared to the prior year Adjusted EBITDA of $198.1 million. Adjusted EBITDA for fiscal year 2020 included an adjustment for the portion of BellRing LLC’s consolidated net earnings which was allocated to NCI, resulting in the calculation of Adjusted EBITDA including 100% of BellRing.

Basis of Presentation

On October 21, 2019, BellRing closed its IPO of 39.4 million shares of Class A common stock. Upon completion of the IPO and certain transactions completed in connection with the IPO, BellRing became the holding company for BellRing LLC (which became the holding company for Post’s historical active nutrition business). Effective October 21, 2019, BellRing allocates a portion of the consolidated net earnings of BellRing LLC to NCI reflecting the entitlement of Post to a portion of the consolidated net earnings. As of September 30, 2020, Post held 71.2% of the economic interest of BellRing LLC. Prior to October 21, 2019, Post held 100% of the economic interest of BellRing LLC, which was allocated to NCI.

For the period prior to the IPO, BellRing’s financial statements present the combined results of Post’s historical active nutrition business which have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Post. The combined financial statements reflect the historical results of operations, financial position and cash flows of the active nutrition business and the allocation of certain Post corporate expenses relating to the active nutrition business based on the historical financial statements and accounting records of Post. In the opinion of management, the assumptions underlying the active nutrition business’s historical combined financial statements, including the basis on which the expenses have been allocated from Post, were reasonable. However, the allocations may not reflect the expenses that BellRing may have incurred as a separate company for the period presented.

The historical financial results in this release for the three and twelve months ended September 30, 2019 differ from the results of the BellRing Brands segment for the same period reported by Post. Reconciliations between the operating profit and Adjusted EBITDA as reported by BellRing in this release to the BellRing Brands segment profit and segment Adjusted EBITDA as reported by Post in Post’s fourth quarter and fiscal year 2020 earnings release are included later in this release.

COVID-19 Commentary

BellRing continues to monitor the impact of the COVID-19 pandemic on its business and remains focused on ensuring its ability to safeguard the health of its employees, including their economic health, maintaining the continuity of its supply chain to serve customers and consumers and preserving financial liquidity to mitigate the uncertainty caused by the pandemic.

The convenient nutrition category continues to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic. In the fourth quarter of 2020, the liquids and powders sub-categories returned to growth relatively in line with their pre-pandemic growth rates. However, the bar sub-category continues to experience year-over-year declines. International net sales for Dymatize and PowerBar products improved when compared to the third quarter of 2020, but continue to be negatively impacted by changes in consumer behavior as discussed earlier. The trajectory of volume recovery for Dymatize and PowerBar is expected to be impacted by changes in the degree of restrictions on mobility and gathering, including closures of specialty retail stores and gyms.

As of September 30, 2020, BellRing had $48.7 million in cash and cash equivalents and the available borrowing capacity under its revolving credit facility was $170.0 million.

Outlook

For fiscal year 2021, BellRing management expects net sales and Adjusted EBITDA to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million).

BellRing management expects the following:

Net sales growth to be high single digits in the first half of 2021 and mid teens in the second half of 2021;
Adjusted EBITDA growth to occur entirely in the second half of 2021, resulting from the timing of material and logistics cost increases, as well as incremental investments in brand building; and
Quarterly Adjusted EBITDA pacing in the first half of 2021 to be similar to 2020.

BellRing management expects fiscal year 2021 capital expenditures of approximately $4 million.

BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for NCI, separation costs and other charges reflected in BellRing’s reconciliation of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding BellRing’s non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures.”

Use of Non-GAAP Measures

BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted net earnings available to Class A common stockholders, Adjusted diluted earnings per share of Class A common stock and Adjusted EBITDA. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided later in this release under “Explanation and Reconciliation of Non-GAAP Measures.”

Management uses certain of these non-GAAP measures, including Adjusted EBITDA, as key metrics in the evaluation of underlying company performance, in making financial, operating and planning decisions and, in part, in the determination of cash bonuses for its executive officers and employees. Additionally, BellRing LLC is required to comply with certain covenants and limitations that are based on variations of EBITDA in BellRing LLC’s financing documents. Management believes the use of these non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance of BellRing and in the analysis of ongoing operating trends. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described later in this release. These non-GAAP measures may not be comparable to similarly titled measures of other companies. For additional information regarding BellRing’s non-GAAP measures, see the related explanations provided under “Explanation and Reconciliation of Non-GAAP Measures” later in this release.

BellRing Conference Call to Discuss Earnings Results and Outlook

BellRing will host a conference call on Friday, November 20, 2020 at 10:30 a.m. EST to discuss financial results for the fourth quarter and fiscal year 2020 and fiscal year 2021 outlook and to respond to questions. Darcy H. Davenport, President and Chief Executive Officer, and Paul A. Rode, Chief Financial Officer, will participate in the call.

Interested parties may join the conference call by dialing (833) 954-1568 in the United States and (409) 216-6583 from outside of the United States. The conference identification number is 4971167. Interested parties are invited to listen to the webcast of the conference call, which can be accessed by visiting the Investor Relations section of BellRing’s website at www.bellring.com. A slide presentation containing supplemental material will also be available at the same location on BellRing’s website.

A replay of the conference call will be available through Friday, December 4, 2020 by dialing (800) 585-8367 in the United States and (404) 537-3406 from outside of the United States and using the conference identification number 4971167. A webcast replay also will be available for a limited period on BellRing’s website in the Investor Relations section.

Prospective Financial Information

Prospective financial information is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the prospective financial information described above will not materialize or will vary significantly from actual results. For further discussion of some of the factors that may cause actual results to vary materially from the information provided above, see “Forward-Looking Statements” below. Accordingly, the prospective financial information provided above is only an estimate of what BellRing’s management believes is realizable as of the date of this release. It also should be recognized that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecasted. In light of the foregoing, the information should be viewed in context and undue reliance should not be placed upon it.

Forward-Looking Statements

Certain matters discussed in this release and on BellRing’s conference call are forward-looking statements, including BellRing’s net sales, Adjusted EBITDA and capital expenditures outlook for fiscal year 2021 and statements regarding the effect of the COVID-19 pandemic on BellRing’s business and BellRing’s continuing response to the COVID-19 pandemic. These forward-looking statements are sometimes identified from the use of forward-looking words such as “believe,” “should,” “could,” “potential,” “continue,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may” or “would” or the negative of these terms or similar expressions, and include all statements regarding future performance, earnings projections, events or developments. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include, but are not limited to, the following:

the impact of the COVID-19 pandemic, including negative impacts on the global economy and capital markets, the health of BellRing’s employees, BellRing’s ability and the ability of its third party manufacturers to manufacture and deliver its products, operating costs, demand for its on-the-go products and its operations generally;
BellRing’s dependence on sales from its RTD protein shakes;
BellRing’s ability to continue to compete in its product categories and its ability to retain its market position and favorable perceptions of its brands;
BellRing’s dependence on a limited number of third party contract manufacturers and suppliers for the manufacturing of most of its products, including one manufacturer for the substantial majority of its RTD protein shakes;
BellRing’s reliance on a limited number of third party suppliers to provide certain ingredients and packaging;
significant volatility in the cost or availability of inputs to BellRing’s business (including freight, raw materials, packaging energy and other supplies);
BellRing’s ability to anticipate and respond to changes in consumer and customer preferences and behaviors and introduce new products;
disruptions or inefficiencies in BellRing’s supply chain, including as a result of BellRing’s reliance on third party suppliers or manufacturers for the manufacturing of many of its products, pandemics (including the COVID-19 pandemic), changes in weather conditions, natural disasters, agricultural diseases and pests and other events beyond BellRing’s control;
consolidation in BellRing’s distribution channels;
BellRing’s ability to expand existing market penetration and enter into new markets;
allegations that BellRing’s products cause injury or illness, product recalls and withdrawals and product liability claims and other litigation;
legal and regulatory factors, such as compliance with existing laws and regulations, as well as new laws and regulations and changes to existing laws and regulations and interpretations thereof, affecting BellRing’s business, including current and future laws and regulations regarding food safety, advertising and labeling;
BellRing’s ability to identify, complete and integrate or otherwise effectively execute acquisitions or other strategic transactions and effectively manage its growth;
fluctuations in BellRing’s business due to changes in its promotional activities and seasonality;
risks associated with BellRing’s international business;
the loss of, a significant reduction of purchases by or the bankruptcy of a major customer;
the ultimate impact litigation or other regulatory matters may have on BellRing;
the accuracy of BellRing’s market data and attributes and related information;
changes in estimates in critical accounting judgments;
economic downturns that limit customer and consumer demand for BellRing’s products;
changes in economic conditions, disruptions in the United States and global capital and credit markets, changes in interest rates, volatility in the market value of derivatives and fluctuations in foreign currency exchange rates;
BellRing’s ability to protect its intellectual property and other assets;
costs, business disruptions and reputational damage associated with information technology failures, cybersecurity incidents and/or information security breaches;
impairment in the carrying value of goodwill or other intangibles;
BellRing’s high leverage, its ability to obtain additional financing (including both secured and unsecured debt) and its ability to service its outstanding debt (including covenants that restrict the operation of its business);
risks related to BellRing’s ongoing relationship with Post, including Post’s control over BellRing;
ability to control the direction of BellRing’s business, conflicts of interest or disputes that may arise between Post and BellRing and BellRing’s obligations under various agreements with Post, including under the tax receivable agreement;
risks associated with BellRing’s public company status, including the additional expenses BellRing will continue to incur to create and maintain the corporate infrastructure to operate as a public company;
BellRing’s ability to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002;
significant differences in BellRing’s actual operating results from any guidance BellRing may give regarding its performance;
BellRing’s ability to hire and retain talented personnel, employee absenteeism, labor strikes, work stoppages or unionization efforts; and
other risks and uncertainties described in BellRing’s filings with the Securities and Exchange Commission.

These forward-looking statements represent BellRing’s judgment as of the date of this release. BellRing disclaims, however, any intent or obligation to update these forward-looking statements.

About BellRing Brands, Inc.

BellRing Brands, Inc. is a rapidly growing leader in the global convenient nutrition category. Its primary brands, Premier Protein®, Dymatize® and PowerBar®, appeal to a broad range of consumers across all major product forms, including ready-to-drink protein shakes, powders and nutrition bars, and are distributed across a diverse network of channels including club, food, drug, mass, eCommerce, specialty and convenience. BellRing’s commitment to consumers is to strive to make highly effective products that deliver best-in-class nutritionals and superior taste. For more information, visit www.bellring.com.

Contact:

Investor Relations
Jennifer Meyer
[email protected]
(314) 644-7665

Media Relations
Lisa Hanly
[email protected]
(314) 665-3180

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

(in millions, except for per share data)

	Three Months Ended September 30,				Year Ended September 30,
	2020		2019		2020		2019
Net Sales	$	282.6	$	214.5	$	988.3	$	854.4
Cost of goods sold	192.8		137.8		650.3		542.6
Gross Profit	89.8		76.7		338.0		311.8
Selling, general and administrative expenses	35.2		35.1		151.8		127.1
Amortization of intangible assets	5.6		5.6		22.2		22.2
Operating Profit	49.0		36.0		164.0		162.5
Interest expense, net	13.5		—		54.7		—
Earnings before Income Taxes	35.5		36.0		109.3		162.5
Income tax expense	—		9.3		9.2		39.4
Net Earnings Including Redeemable Noncontrolling Interest	35.5		26.7		100.1		123.1
Less: Net earnings attributable to redeemable noncontrolling interest	25.5		26.7		76.6		123.1
Net Earnings Available to Class A Common Stockholders	$	10.0	$	—	$	23.5	$	—

Earnings per share of Class A Common Stock:
Basic	$	0.25	$	—	$	0.60	$	—
Diluted	$	0.26	$	—	$	0.60	$	—

Weighted-Average Shares of Class A Common Stock Outstanding:
Basic	39.4		—		39.4		—
Diluted	39.5		—		39.5		—

RECONCILIATION OF OPERATING PROFIT, AS REPORTED BY BELLRING,

TO BELLRING BRANDS SEGMENT PROFIT, AS REPORTED BY POST (Unaudited)

(in millions)

	Three Months Ended September 30, 2019		Year Ended September 30, 2019
Operating profit, as reported by BellRing	$	36.0	$	162.5
Allocated costs ⁽¹⁾	4.3		12.6
BellRing Brands segment profit, as reported by Post	$	40.3	$	175.1

⁽¹⁾ Allocated costs are general and administrative costs that are attributable to BellRing and have been allocated by Post to BellRing. BellRing includes these costs in its SG&A expenses and Operating Profit measures in its Consolidated Statements of Operations. Post classifies these costs as unallocated corporate expenses, which are reported by Post in general corporate expenses and other.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

	September 30, 2020			September 30, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	48.7		$	5.5
Receivables, net	83.1			68.4
Inventories	150.5			138.2
Prepaid expenses and other current assets	7.9			7.4
Total Current Assets	290.2			219.5

Property, net	10.2			11.7
Goodwill	65.9			65.9
Other intangible assets, net	274.3			296.5
Other assets	12.9			0.9
Total Assets	$	653.5		$	594.5


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt	$	63.8		$	—
Accounts payable	56.7			61.7
Other current liabilities	32.6			31.0
Total Current Liabilities	153.1			92.7

Long-term debt	622.6			—
Deferred income taxes	9.0			14.1
Other liabilities	29.8			1.3
Total Liabilities	814.5			108.1

Redeemable noncontrolling interest	2,021.6			—

Stockholders’ Equity
Preferred stock	—			—
Common stock	0.4			—
Accumulated deficit	(2,179.0		)	—
Net investment of Post Holdings, Inc.	—			489.0
Accumulated other comprehensive loss	(4.0		)	(2.6		)
Total Stockholders’ Equity	(2,182.6		)	486.4
Total Liabilities and Stockholders’ Equity	$	653.5		$	594.5

SELECTED CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited)

(in millions)

	Year Ended September 30,
	2020			2019
Cash provided by (used in):
Operating activities	$	97.2		$	98.3
Investing activities	(2.1		)	(3.2		)
Financing activities	(52.6		)	(100.2		)
Effect of exchange rate changes on cash and cash equivalents	0.7			(0.3		)
Increase (decrease) in cash and cash equivalents	$	43.2		$	(5.4	)

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES

BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted net earnings available to Class A common stockholders, Adjusted diluted earnings per share of Class A common stock and Adjusted EBITDA. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided in the tables following this section. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described below. These non-GAAP measures may not be comparable to similarly titled measures of other companies.

Adjusted net earnings available to Class A common stockholders and Adjusted diluted earnings per share of Class A common stock

BellRing believes Adjusted net earnings available to Class A common stockholders and Adjusted diluted earnings per share of Class A common stock are useful to investors in evaluating BellRing’s operating performance because they exclude items that affect the comparability of BellRing’s financial results and could potentially distort an understanding of the trends in business performance.

Adjusted net earnings available to Class A common stockholders and Adjusted diluted earnings per share of Class A common stock are adjusted for the following items:

a.	Separation costs: BellRing has excluded certain expenses incurred to effect its separation from Post and to support its transition into a separate stand-alone, publicly-traded entity as the amount and frequency of such adjustments are not consistent. Additionally, BellRing believes that these costs do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
b.	Foreign currency gain/loss on intercompany loans: BellRing has excluded the impact of foreign currency fluctuations related to intercompany loans denominated in currencies other than the functional currency of the respective legal entity in evaluating BellRing’s performance to allow for more meaningful comparisons of performance to other periods.
c.	Income tax: BellRing has included the income tax impact of the non-GAAP adjustments using a rate described in the footnote of the reconciliation table, as BellRing believes that its GAAP effective income tax rate as reported is not representative of the income tax expense impact of the adjustments.

Adjusted EBITDA

BellRing believes that Adjusted EBITDA is useful to investors in evaluating BellRing’s operating performance and liquidity because (i) BellRing believes it is widely used to measure a company’s operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a measure of corporate performance exclusive of BellRing’s capital structure and the method by which the assets were acquired and (iii) it is a financial indicator of a company’s ability to service its debt, as BellRing LLC is required to comply with certain covenants and limitations that are based on variations of EBITDA in BellRing LLC’s financing documents. Management uses Adjusted EBITDA to provide forward-looking guidance to forecast future results.

Adjusted EBITDA reflects adjustments for income tax expense, interest expense, net and depreciation and amortization and the adjustments for separation costs and foreign currency gain/loss on intercompany loans, as discussed above. Additionally, Adjusted EBITDA reflects adjustments for the following items:

d.	NCI adjustment : BellRing has included adjustments for the portion of its consolidated net earnings/loss which was allocated to NCI, allowing for the calculation of Adjusted EBITDA to include 100% of BellRing as BellRing’s management evaluates BellRing’s operating performance on a basis that includes 100% of BellRing.
e.	Stock-based compensation : BellRing’s compensation strategy after the IPO includes the use of BellRing stock-based compensation to attract and retain executives and employees by aligning their long-term compensation interests with BellRing’s stockholders’ investment interests. BellRing’s director compensation strategy includes an election by any director who earns retainers in which the director may elect to defer compensation granted as a director to BellRing Class A common stock, earning a match on the deferral, both of which are stock-settled upon the director’s retirement from the BellRing board of directors. BellRing’s compensation strategy prior to the IPO included the use of Post stock-based compensation to attract and retain executives and employees by aligning their long-term compensation interests with Post’s shareholders’ investment interests; after the IPO, BellRing continues to be charged for Post stock-based compensation through the master services agreement with Post. BellRing has excluded stock-based compensation as stock-based compensation can vary significantly based on reasons such as the timing, size and nature of the awards granted and subjective assumptions which are unrelated to operational decisions and performance in any particular period and do not contribute to meaningful comparisons of BellRing’s operating performance to other periods.

RECONCILIATION OF NET EARNINGS AVAILABLE TO CLASS A COMMON STOCKHOLDERS

TO ADJUSTED NET EARNINGS AVAILABLE TO CLASS A COMMON STOCKHOLDERS (Unaudited)

(in millions)

	Three Months Ended September 30, 2020			October 21, 2019 to September 30, 2020
Net Earnings Available to Class A Common Stockholders	$	10.0		$	23.5
Dilutive impact of net earnings attributable to NCI	0.1			0.1
Net Earnings for Diluted Earnings per Share	10.1			23.6

Adjustments:
Separation costs after the IPO	—			0.8
Foreign currency gain on intercompany loans	(0.3		)	(0.5		)
Total Net Adjustments	(0.3		)	0.3
Income tax effect on adjustments ⁽¹⁾	—			—
Adjusted Net Earnings Available to Class A Common Stockholders	$	9.8		$	23.9

⁽¹⁾ For both periods, the income tax effect for separation costs was calculated using a rate of 0.0% as the amounts are primarily non-deductible separation costs for income tax purposes. For both periods, the income tax effect on foreign currency gain on intercompany loans was calculated using a rate of 7.0%, which represents the effective income tax rate on BellRing’s 28.8% distributive share.

RECONCILIATION OF DILUTED EARNINGS PER SHARE OF CLASS A COMMON STOCK

TO ADJUSTED DILUTED EARNINGS PER SHARE OF CLASS A COMMON STOCK (Unaudited)

	Three Months Ended September 30, 2020			October 21, 2019 to September 30, 2020
Diluted Earnings per share of Class A Common Stock	$	0.26		$	0.60

Adjustments:
Separation costs after the IPO	—			0.02
Foreign currency gain on intercompany loans	(0.01		)	(0.01		)
Total Net Adjustments	(0.01		)	0.01
Income tax effect on adjustments ⁽¹⁾	—			—
Adjusted Diluted Earnings per share of Class A Common Stock	$	0.25		$	0.61

⁽¹⁾ For both periods, the income tax effect for separation costs was calculated using a rate of 0.0% as the amounts are primarily non-deductible separation costs for income tax purposes. For both periods, the income tax effect on foreign currency gain on intercompany loans was calculated using a rate of 7.0%, which represents the effective income tax rate on BellRing’s 28.8% distributive share.

RECONCILIATION OF NET EARNINGS AVAILABLE TO CLASS A COMMON STOCKHOLDERS

TO ADJUSTED EBITDA (Unaudited)

(in millions)

	Three Months Ended September 30,							Year Ended September 30,
	2020				2019			2020				2019
Net Earnings Available to Class A Common Stockholders	$	10.0			$	—		$	23.5			$	—
Income tax expense	—				9.3			9.2				39.4
Interest expense, net	13.5				—			54.7				—
Depreciation and amortization	6.3				6.3			25.3				25.3
NCI adjustment	25.5				26.7			76.6				123.1
Stock-based compensation	1.7				1.3			6.5				3.6
Separation costs	—				2.7			1.9				6.7
Foreign currency gain on intercompany loans	(0.3		)		—			(0.5		)		—
Adjusted EBITDA	$	56.7			$	46.3		$	197.2			$	198.1
Adjusted EBITDA as a percentage of Net Sales	20.1			%	21.6		%	20.0			%	23.2		%

RECONCILIATION OF ADJUSTED EBITDA, AS REPORTED BY BELLRING,

TO BELLRING BRANDS SEGMENT ADJUSTED EBITDA, AS REPORTED BY POST (Unaudited)

(in millions)

	Three Months Ended September 30, 2019		Year Ended September 30, 2019
Adjusted EBITDA, as reported by BellRing	$	46.3	$	198.1
Allocated costs, net of non-GAAP adjustments ⁽¹⁾	0.6		2.7
BellRing Brands segment Adjusted EBITDA, as reported by Post	$	46.9	$	200.8

⁽¹⁾ Allocated costs are general and administrative costs that are attributable to BellRing and have been allocated by Post to BellRing. BellRing includes these costs in its SG&A expenses and Operating Profit measures in its Consolidated Statements of Operations. Post classifies these costs as unallocated corporate expenses, which are reported by Post in general corporate expenses and other. In the above presentation, these costs are shown on a net basis, as they exclude certain items which have been treated as adjustments for the calculation of Adjusted EBITDA as described earlier in this release under “Explanation and Reconciliation of Non-GAAP Measures.”

November 19, 2020 5:03 pm

Celestica Announces TSX Acceptance of Normal Course Issuer Bid

TORONTO, Nov. 19, 2020 (GLOBE NEWSWIRE) — Celestica Inc. (NYSE: CLS)(TSX: CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, today announced the Toronto Stock Exchange (the TSX) has accepted the Company’s notice to launch a Normal Course Issuer Bid (the Bid).

Under the Bid, the Company may repurchase on the open market (or as otherwise permitted), at its discretion during the period commencing on November 24, 2020 and ending on the earlier of November 23, 2021 and the completion of purchases under the Bid, up to 9,021,320 subordinate voting shares, representing approximately 10% of the “public float” of the subordinate voting shares (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such bids. Under the TSX rules, the average daily trading volume of the subordinate voting shares on the TSX during the six months ended October 31, 2020 was 180,228 and, accordingly, daily purchases on the TSX pursuant to the Bid will be limited to 45,057 subordinate voting shares, other than purchases made pursuant to the block purchase exception. The actual number of subordinate voting shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of the Company, subject to applicable law and the rules of the TSX. In accordance with the TSX rules, the maximum number of subordinate voting shares which may be repurchased for cancellation under the Bid will be reduced by the number of subordinate voting shares purchased for delivery pursuant to stock-based compensation plans.

Purchases are expected to be made through the facilities of the New York Stock Exchange and the Toronto Stock Exchange, or such other permitted means (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The Bid will be funded using existing cash resources and draws on its credit facility, and any subordinate voting shares repurchased by the Company under the Bid will be cancelled.

As of November 13, 2020, the Company had 110,455,664 issued and outstanding subordinate voting shares and a “public float” (within the meaning of the rules of the TSX) of 90,213,203 subordinate voting shares.

The Company believes that the purchases are in the best interest of the Company and constitute a desirable use of its funds.

The Company previously implemented a normal course issuer bid for its subordinate voting shares which expired on December 18, 2019. Under its prior bid, the Company was authorized to purchase up to 9,490,802 subordinate voting shares and repurchased and cancelled 8,260,380 subordinate voting shares at a weighted average price of US$8.15 per share. In the past 12 months, the Company repurchased 3,628,537 subordinate voting shares for delivery pursuant to the Company’s stock-based compensation plans.

About Celestica

Celestica enables the world’s best brands. Through our recognized customer-centric approach, we partner with leading companies in aerospace and defense, communications, enterprise, HealthTech, industrial, capital equipment, and energy to deliver solutions for their most complex challenges. As a leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development – from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers.

For more information, visit www.celestica.com.

Our securities filings can also be accessed at www.sedar.com and www.sec.gov.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of Canadian securities laws, including, without limitation, statements related to: the Company’s intention to commence the Bid and the timing and quantity of any purchases of subordinate voting shares under the Bid. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, and for forward-looking information under applicable Canadian securities laws.

Forward-looking statements are provided to assist readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are not guarantees of future performance and are subject to risks that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including, among others, the risks discussed in our public filings at

www.sedar.com

and

www.sec.gov

, including in our 2019 Annual Report on Form 20-F (see, among other risk disclosures, Item 3(D), “Key Information — Risk Factors” and Item 11, “Quantitative and Qualitative Disclosures about Market Risk”) and our most recent Management’s Discussion and Analysis filed with, and subsequent reports on Form 6-K furnished to, the U.S. Securities and Exchange Commission, and as applicable, the Canadian Securities Administrators, as well as risks related to: the Company’s future capital requirements; market and general economic conditions; demand for the Company’s customers’ products; and unforeseen legal or regulatory developments.

Our forward-looking statements contained in this release are based on various assumptions, many of which involve factors that are beyond our control. Our material assumptions include those discussed in our public filings at

www.sedar.com

and

www.sec.gov

, under the heading “Forward-Looking Statements”, or similarly named sections, among other assumption disclosures, including in our 2019 Annual Report on Form 20-F and our most recent Management’s Discussion and Analysis filed with, and subsequent reports on Form 6-K furnished to, the U.S. Securities and Exchange Commission, and as applicable, the Canadian Securities Administrators, as well as related to the following: the Company’s view with respect to its financial condition and prospects; the stability of general economic and market conditions; currency exchange rates and interest rates; the availability of cash for repurchases of outstanding subordinate voting shares under the Bid; the existence of alternative uses for the Company’s cash resources which may be superior to effecting repurchases under the Bid; compliance by third parties with their contractual obligations; and compliance with applicable laws and regulations pertaining to the Bid. While management believes these assumptions to be reasonable under the current circumstances, they may prove to be inaccurate. Forward-looking statements speak only as of the date on which they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law

All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

Contacts:

Celestica Communications 
(416) 448-2200 
[email protected] 

Celestica Investor Relations 
(416) 448-2211 
[email protected]

November 19, 2020 5:03 pm

Hub Group Honored With the 2020 Humanitarian Logistics Award

OAK BROOK, Ill., Nov. 19, 2020 (GLOBE NEWSWIRE) — Hub Group (NASDAQ: HUBG) announced today it was honored with the 2020 Humanitarian Logistic Award by the American Logistics Aid Network (ALAN). ALAN created this award in 2017 “to honor individuals and organizations that have demonstrated an ongoing and sustained commitment to helping others in their time of greatest need.”

During the COVID-19 crisis, temperature controlled storage became a growing need across hospitals, food banks, government agencies and other frontline support. In response, Hub Group donated 211 refrigerated trailers to 59 non-profit organizations, adding up to over 9 million cubic feet of refrigerated storage space, the equivalent of two average-sized refrigerated warehouses. “Hub Group was able to connect with organizations that needed temperature controlled storage the most. We wanted our permanent trailer donations to make a real difference,” said Phillip Yeager, Hub Group’s President and COO.

Through collaboration with ALAN, Hub Group was introduced to Feeding America, a large nationwide system of food banks. “Hub Group’s donation of 31 refrigerated containers provided much-needed cold storage to help our network respond and deliver an average of 37% more weekly food distributions,” said Mike Loeffl, VP of Supply Chain Logistics and Operations at Feeding America. These weekly food distributions directly benefited communities that were stricken with unexpected joblessness and higher dependency on food banks.

“At Hub Group, we pride ourselves on sustainability, supporting our communities and giving back. Whether through our Cause Container program or our membership in initiatives like SmartWay, helping others is not a one-time event for us, but rather an integral part of how we do business. Especially in unprecedented times like 2020, it was a privilege to make a positive impact in so many areas with our trailer donations,” said David Yeager, Hub Group’s Chairman and CEO.

ABOUT HUB GROUP: Hub Group is the premier customer-centric supply chain company, offering comprehensive transportation and logistics management solutions. Keeping our customers’ needs in focus, Hub Group designs, continually optimizes and applies industry-leading technology to our customers’ supply chains for better service, greater efficiency and total visibility. As an award-winning, publicly traded company (NASDAQ: HUBG) with $3.7 billion in revenue, our 5,000 employees across the globe are always in pursuit of “The Way Ahead” – a commitment to service, integrity and innovation. For more information, visit www.hubgroup.com.

Contact Jennifer Telek from Hub Group Inc. 630 217 4772