Market Newsdesk

Berry Global Group, Inc. Reports Record Fourth Quarter and Fiscal Year 2020 Results

EVANSVILLE, Ind.–(BUSINESS WIRE)–
Berry Global Group, Inc. (NYSE:BERY) today reported its fourth quarter and fiscal year 2020 results, referred to in the following as the September 2020 quarter and fiscal 2020.

Fourth Quarter Highlights

(all comparisons made to the September 2019 quarter)

• Net sales of $3 billion with 4 percent organic volume growth
• Operating income of $349 million
• Operating EBITDA up 18 percent to $586 million
• Net income per diluted share of $1.44
• Adjusted net income per diluted share increase of 77 percent to $1.59

Fiscal Year Highlights

(all comparisons made to fiscal year 2019)

• Net sales of $11.7 billion with 2 percent organic volume growth
• Operating income up 21 percent to $1.2 billion
• Operating EBITDA up 41 percent to $2.2 billion
• Net income per diluted share up 38 percent to $4.14
• Adjusted net income per diluted share increase of 42 percent to $4.85
• RPC Group Plc (“RPC”) integration and synergy realization progressing better than plan
• Exceeded guidance for both cash flow from operations and free cash flow, recording $1.5 billion and $947 million, respectively.

Berry’s Chairman and CEO, Tom Salmon said, “Fiscal 2020 was a terrific year for Berry, during which we delivered record financial results that exceeded our expectations. Our key strategic priorities for fiscal 2020 were to generate profitable organic growth, integrate the business acquired with RPC, and further strengthen our balance sheet. I am pleased to report success in all three strategic priorities.

“The execution from our front-line team members, for not only achieving our financial performance results, but also in helping keep each other safe, while meeting the critical needs of our communities and customers, was nothing short of outstanding. In the face of significant adversity and complexity across the globe, our business continued to demonstrate our financial and operational stability throughout the year.

“We enter fiscal 2021 with confidence in our ability to grow organically as we have demonstrated this past year. I believe we are well positioned to see long-term, predictable, and sustainable growth with customer-linked capital investments that target continued expansion into both faster growing end markets and developing emerging markets.”

September 2020 Quarter Results

Consolidated Overview

Net sales were essentially flat with an organic volume increase of 4 percent and a favorable impact from foreign currency changes of $34 million offset by lower selling prices of $152 million due to the pass through of lower resin costs.

The operating income decrease is primarily attributed to a $214 million gain on the sale of our Seal for Life (“SFL”) business in the prior year partially offset by an $82 million favorable impact from cost productivity and product mix, a prior year inventory fair value step-up charge related to RPC purchase accounting adjustment of $39 million, and a $31 million increase from the 4 percent organic volume growth.

Consumer Packaging – International

The net sales decrease in the Consumer Packaging International segment is primarily attributed to lower selling prices of $55 million due to the pass through of lower resin costs partially offset by a $39 million favorable impact from foreign currency changes and an organic volume increase of 1 percent.

The operating income increase is primarily attributed to a $39 million inventory fair value step-up related to the RPC acquisition in the prior year quarter, a $21 million favorable impact from cost productivity and synergies, and a $23 million decrease in business integration costs.

Consumer Packaging – North America

The net sales growth in the Consumer Packaging North America segment is primarily attributed to an organic volume increase of 6 percent partially offset by lower selling prices of $43 million due to the pass through of lower resin costs.

The operating income increase is primarily attributed to a $19 million favorable impact from cost productivity and synergies along with a $14 million increase from the 6 percent organic volume growth.

Health, Hygiene, & Specialties

The net sales growth in the Health, Hygiene & Specialties segment is primarily attributed to organic volume growth of 12 percent, partially offset by lower selling prices of $19 million due to the pass through of lower resin costs, and prior quarter sales of $10 million related to the divested SFL business.

The operating income decrease is primarily attributed to a $214 million gain on the sale of our SFL business in the prior year quarter partially offset by $34 million favorable impact from cost productivity and product mix and a $13 million favorable impact from the 12 percent organic volume increase.

Engineered Materials

The net sales decrease in the Engineered Materials segment is primarily attributed to lower selling prices of $35 million due to the pass through of lower resin costs and a 1 percent decrease in organic volume.

The operating income increase is primarily attributed to a $9 million favorable impact from cost productivity and product mix.

Fiscal Year 2020 Results

Consolidated Overview

The net sales growth is primarily attributed to acquisition net sales of $3,346 million and an organic volume increase of 2%, partially offset by lower selling prices of $581 million due to the pass through of lower resin costs and prior year divestiture sales of $96 million.

The operating income increase is primarily attributed to acquisition operating income of $245 million, an $87 million favorable impact from cost productivity and product mix, a $47 million favorable impact from the 2% organic volume increase, a $39 million inventory fair value step-up related to the RPC acquisition in the prior year, a $35 million decrease in business integration expenses, and a $31 million decrease in depreciation and amortization. These improvements were partially offset by a $214 million unfavorable change from the prior year gain on the sale of our SFL business, a $32 million increase in selling, general and administrative expense, and prior year divestiture operating income of $28 million.

Consumer Packaging – International

The net sales growth in the Consumer Packaging International segment is primarily attributed to net sales of $2,971 from the RPC acquisition, a $39 million favorable impact from foreign currency changes, and an organic volume increase of 1%, partially offset by lower selling prices of $56 million due to the pass through of lower resin costs.

The operating income increase is primarily attributed to acquisition operating income of $196 million, a $39 million inventory fair value step-up related to the RPC acquisition in the prior year, a $21 million decrease in business integration costs, and a $21 million favorable impact from cost productivity and product mix.

Consumer Packaging – North America

The net sales growth in the Consumer Packaging North America segment is primarily attributed to acquisition net sales of $356 million related to the U.S. portion of the acquired RPC business and a 2% base volume improvement, partially offset by lower selling prices of $205 million due to the pass through of lower resin costs.

The operating income increase is primarily attributed to acquisition operating income of $47 million, a $27 million favorable impact from cost productivity and product mix, and a $16 million favorable impact from the base volume increase. These increases were partially offset by a $12 million increase in selling, general and administrative expenses.

Health, Hygiene, & Specialties

The net sales decrease in the Health, Hygiene & Specialties segment is primarily attributed to lower selling prices of $164 million due to the pass through of lower resin costs, prior year sales of $96 million related to the divested SFL business, and a $37 million unfavorable impact from foreign currency changes, partially offset by a 7% organic volume improvement.

The operating income decrease is primarily attributed to a $214 million unfavorable change from the prior year gain on the sale of our SFL business, prior year divestiture operating income of $28 million, and an $11 million increase in selling, general and administrative expenses. These decreases were partially offset by a $43 million favorable impact from cost productivity and product mix, a $36 million favorable impact from the organic volume improvement, and a $13 million decrease in depreciation and amortization expense.

Engineered Materials

The net sales decrease in the Engineered Materials segment is primarily attributed to lower selling prices of $159 million due to the pass through of lower resin costs and a 2% organic volume decline.

The operating income decrease was modestly impacted by the organic volume decline and an increase in selling, general and administrative expenses. These increases were partially offset by a $12 million decrease in depreciation and amortization expense.

Cash Flow

Our cash flow from operating activities was $552 million for the September quarter, and was over $1.5 billion for fiscal 2020 compared to $1.2 billion for the prior fiscal year. The Company’s free cash flow for fiscal 2020 was an annual record of $947 million, an increase of 24 percent compared to the prior year of $764 million.

Balance Sheet and Liquidity

Our total debt less cash and cash equivalents at the end of the September 2020 quarter was $9,487 million. Adjusted EBITDA for fiscal 2020 was $2,219 million.

In fiscal 2020 the Company paid off over $1 billion of debt while continuing to strengthen our balance sheet. Our financial profile remains solid, as we have a strong liquidity position with over $750 million of cash at the end of the quarter as well as an undrawn $850 million asset-based line of credit representing $1.6 billion of liquidity. Also, we have no financial maintenance covenants and no material refinancings to complete during the next 12 months.

Fiscal 2021 Guidance

We anticipate our fiscal year 2021 operating EBITDA to be in the range of $2.15 to $2.2 billion and free cash flow range of $875 to $975 million. The range of free cash flow includes $1.525 to $1.625 billion of cash flow from operations, partially offset by capital expenditures of $650 million. The capital expenditure plan is a nearly $70 million increase from our fiscal 2020 spending as our pipeline of customer linked growth projects continue to increase. Excluding incremental growth capital, our fiscal year 2021 free cash flow is expected to exceed $1 billion. This guidance considers the divestiture of our U.S. flexible packaging converting business, which we have assumed is completed in the first fiscal quarter of 2021. This business generated approximately $25 million dollars of operating EBITDA in fiscal 2020. We expect another year of organic volume growth of 2 percent, which is supported by our robust and growing pipeline, increased level of capital expenditures, and the positive trends and momentum we are seeing in each of our businesses. We also anticipate further strengthening our balance sheet and expect our leverage ratio to be 3.8 to 3.9 times at the end of fiscal 2021.

Investor Conference Call

The Company will host a conference call today, November 19, 2020, at 10 a.m. U.S. Eastern Time to discuss our fourth quarter and fiscal year 2020 results. The telephone number to access the conference call is (800) 305-1078 (domestic), or (703) 639-1173 (international), conference ID 5882099. We expect the call to last approximately one hour. Interested parties are invited to listen to a live webcast and view the accompanying slidesby visiting the Company’s Investor page at www.berryglobal.com. A replay of the conference call can also be accessed on the Investor page of the website beginning November 19, 2020, at 1 p.m. U.S. Eastern Time, to December 3, 2020, by calling (855) 859-2056 (domestic), or (404) 537-3406 (international), access code 5882099.

About Berry

Berry Global Group, Inc. (NYSE:BERY), headquartered in Evansville, Indiana, is committed to its mission of ‘Always Advancing to Protect What’s Important,’ and proudly partners with its customers to provide them with value-added protective solutions that are increasingly light-weighted and easier to recycle or reuse. The Company is a leading global supplier of a broad range of innovative rigid, flexible, and non-woven products used every day within consumer and industrial end markets. Berry, a Fortune 500 company, has over 47,000 employees and generated over $11.7 billion of net sales in fiscal 2020 from operations that span 295 locations on six continents. For additional information, visit Berry’s website at berryglobal.com.

Non-GAAP Financial Measures and Estimates

This press release includes non-GAAP financial measures such as operating EBITDA, Adjusted EBITDA, Adjusted net income, and free cash flow. A reconciliation of these non-GAAP financial measures to comparable measures determined in accordance with accounting principles generally accepted in the United States of America (GAAP) is set forth at the end of this press release. Information reconciling forward-looking operating EBITDA is not provided because such information is not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain Items, including debt refinancing activity or other non-comparable items. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP. Our estimates of the impact of COVID-19 are based on product mix and prior internal sales estimates compared to actual sales.

Forward Looking Statements

Statements in this release that are not historical, including statements relating to the expected future performance of the Company, are considered “forward looking” within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “seeks,” “approximately,” “intends,” “plans,” “projects,” “estimates,” “outlook,” “anticipates” or “looking forward,” or similar expressions that relate to our strategy, plans, intentions, or expectations. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates, and financial results or to our expectations regarding future industry trends are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results.

Important factors that could cause actual results to differ materially from our expectations, which we refer to as cautionary statements, are disclosed under “Risk Factors” and elsewhere in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission, including, without limitation, in conjunction with the forward-looking statements included in this press release. All forward-looking information and subsequent written and oral forward-looking statements attributable to us, or to persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Some of the factors that we believe could affect our results include: (1) risks associated with our substantial indebtedness and debt service; (2) changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices to our customers on a timely basis; (3) risks related to acquisitions or divestitures and integration of acquired businesses and their operations, and realization of anticipated cost savings and synergies; (4) risks related to international business, including as a result of the RPC transaction, including foreign currency exchange rate risk and the risks of compliance with applicable export controls, sanctions, anti-corruption laws and regulations; (5) uncertainty regarding the United Kingdom’s withdrawal from the European Union and the outcome of future arrangements between the United Kingdom and the European Union; (6) reliance on unpatented proprietary know-how and trade secrets; (7) the phase-out of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate or modification of the method used to calculate LIBOR, which may adversely affect interest rates; (8) increases in the cost of compliance with laws and regulations, including environmental, safety, anti-plastic legislation, production, and product laws and regulations; (9) employee shutdowns or strikes or the failure to renew effective bargaining agreements; (10) risks related to disruptions in the overall economy and the financial markets that may adversely impact our business, including as a result of the COVID-19 pandemic; (11) risk of catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions; (12) risks related to the failure of, inadequacy of, or attacks on our information technology systems and infrastructure; (13) risks related to market acceptance of our developing technologies and products; (14) general business and economic conditions, particularly an economic downturn; (15) risks that our restructuring programs may entail greater implementation costs or result in lower cost savings than anticipated; (16) ability of our insurance to fully cover potential exposures; (17) risks related to future write-offs of substantial goodwill; (18) risks of competition, including foreign competition, in our existing and future markets; new legislation or new regulations and the Company’s corresponding interpretations of either may affect our business and consolidated financial condition and results of operations; (20) risks related to the impact of travel and safety restrictions related to the COVID-19 pandemic, including on our internal controls over financial reporting and the ongoing process of implementing standardized internal control procedures within the recently acquired RPC business; and (21) the other factors discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained herein may not in fact occur. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date hereof. All forward-looking statements are made only as of the date hererof and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Berry Global Group, Inc. Consolidated Statements of Income (Unaudited) (in millions of dollars, except per share data amounts)
	Quarterly Period Ended							Fiscal Year Ended
	September 26, 2020			September 28, 2019				September 26, 2020			September 28, 2019
Net sales	$	3,008		$	3,019			$	11,709		$	8,878
Costs and expenses:
Cost of goods sold		2,342			2,511				9,301			7,259
Selling, general and administrative		219			199				850			583
Amortization of intangibles		74			75				300			194
Restructuring and transaction activities		24			(164	)			79			(132	)
Operating income		349			398				1,179			974
Other (income) expense, net		25			(4	)			31			155
Interest expense, net		96			128				435			329
Income before income taxes		228			274				713			490
Income tax expense		33			45				154			86
Net income	$	195		$	229			$	559		$	404
Net income per share:
Basic	$	1.47		$	1.73			$	4.22		$	3.08
Diluted		1.44			1.70				4.14			3.00
Outstanding weighted-average shares: (in millions)
Basic		133.1			132.2				132.6			131.3
Diluted		135.4			134.4				135.1			134.6

Berry Global Group, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions of dollars)
	September 26, 2020			September 28, 2019
Assets:
Cash and cash equivalents	$	750		$	750
Accounts receivable, net		1,469			1,526
Inventories		1,268			1,324
Other current assets		330			157
Property, plant, and equipment, net		4,561			4,714
Goodwill, intangible assets, and other long-term assets		8,323			7,998
Total assets	$	16,701		$	16,469
Liabilities and Stockholders’ Equity:
Current liabilities, excluding debt	$	2,108		$	1,935
Current and long-term debt		10,237			11,365
Other long-term liabilities		2,264			1,551
Stockholders’ equity		2,092			1,618
Total liabilities and stockholders’ equity	$	16,701		$	16,469

Berry Global Group, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions of dollars)
	Fiscal Year Ended
	September 26, 2020				September 28, 2019
Cash flows from operating activities:
Net cash from operating activities		1,530				1,201
Cash flows from investing activities:
Additions to property, plant, and equipment, net		(583	)			(399	)
Divestiture of business		—				326
Acquisition of business & purchase price derivatives		(14	)			(6,178	)
Settlement of net investment hedges		281				—
Net cash from investing activities		(316	)			(6,251	)
Cash flows from financing activities:
Repayments on long-term borrowings		(2,436	)			(1,214	)
Proceeds from long-term borrowings		1,202				6,784
Proceeds from issuance of common stock		30				55
Debt financing costs		(16	)			(87	)
Repurchase of common stock		—				(74	)
Payment of tax receivable agreement		—				(38	)
Net cash from financing activities		(1,220	)			(5,426	)
Effect of currency translation on cash		6				(7	)
Net change in cash and cash equivalents		—				369
Cash and cash equivalents at beginning of period		750				381
Cash and cash equivalents at end of period	$	750			$	750

Berry Global Group, Inc. Condensed Consolidated Financial Statements Segment Information (Unaudited) (in millions of dollars)
	Quarterly Period Ended September 26, 2020
	Consumer Packaging – International			Consumer Packaging – North America			Health, Hygiene & Specialties				Engineered Materials			Total
Net sales	$	1,071		$	746		$	604			$	587		$	3,008
Operating income	$	104		$	94		$	73			$	78		$	349
Depreciation and amortization		78			60			44				25			207
Restructuring and transaction activities (1)		18			5			—				1			24
Other non-cash charges (2)		2			1			1				2			6
Operating EBITDA	$	202		$	160		$	118			$	106		$	586
	Quarterly Period Ended September 28, 2019
	Consumer Packaging – International			Consumer Packaging – North America			Health, Hygiene & Specialties				Engineered Materials			Total
Net sales	$	1,077		$	744		$	570			$	628		$	3,019
Operating income	$	13		$	67		$	250			$	68		$	398
Depreciation and amortization		82			59			46				29			216
Restructuring and transaction activities (1)		41			6			(212	)			3			(162	)
Other non-cash charges (2)		37			5			2				1			45
Operating EBITDA	$	173		$	137		$	86			$	101		$	497

(1)		The current quarter primarily includes transaction activity costs related to the RPC acquisition. The prior year quarter primarily includes the sale of our Seal for Life business of $214 million partially offset by restructuring and transaction related costs from the RPC acquisition.
(2)		Other non-cash charges for the September 2020 quarter primarily includes $5 million of stock compensation expense. Other non-cash charges for the September 2019 quarter primarily includes a $39 million inventory step up charge related to the RPC acquisition and $6 million of stock compensation expense.

Berry Global Group, Inc. Condensed Consolidated Financial Statements Segment Information (Unaudited) (in millions of dollars)
	Fiscal Year Ended September 26, 2020
	Consumer Packaging – International			Consumer Packaging – North America			Health, Hygiene & Specialties				Engineered Materials			Total
Net sales	$	4,195		$	2,850		$	2,330			$	2,334		$	11,709
Operating income	$	299		$	320		$	243			$	317		$	1,179
Depreciation and amortization		318			250			172				105			845
Restructuring and transaction activities (1)		55			11			6				7			79
Other non-cash charges (2)		31			10			5				8			54
Operating EBITDA	$	703		$	591		$	426			$	437		$	2,157
	Fiscal Year Ended September 28, 2019*
	Consumer Packaging – International			Consumer Packaging – North America			Health, Hygiene & Specialties				Engineered Materials			Total
Net sales	$	1,229		$	2,636		$	2,475			$	2,538		$	8,878
Operating income	$	12		$	234		$	410			$	318		$	974
Depreciation and amortization		93			216			188				116			613
Restructuring and transaction activities (1)		54			14			(198	)			8			(126	)
Other non-cash charges (2)		38			11			9				11			69
Operating EBITDA	$	197		$	475		$	405			$	453		$	1,530

(1)		Restructuring and transaction activity costs for the fiscal year ended September 26, 2020, are primarily related to the RPC acquisition. Restructuring and transaction activity costs for the fiscal year ended September 28, 2019, are primarily related to the sale of our Seal for Life business of $214 million, partially offset by restructuring and transaction activity costs from the RPC acquisition.
(2)		Other non-cash charges for the fiscal year ended September 26, 2020 primarily includes $33 million of stock compensation expense and a $19 million inventory step-up related to the RPC acquisition. Other non-cash charges for the fiscal year ended September 28, 2019 includes a$39 million inventory step up charge related to the RPC acquisition, $27 million of stock compensation expense and a $5 million inventory step up charge related to acquisitions and other non-cash charges.
		* Prior year has been restated to match our current structure.

Berry Global Group, Inc. Reconciliation Schedules (Unaudited) (in millions of dollars, except per share data)
	Quarterly Period Ended								Fiscal Year Ended
	September 26, 2020				September 28, 2019				September 26, 2020				September 28, 2019
Net income	$	195			$	229			$	559			$	404
Add: other (income) expense, net		25				(4	)			31				155
Add: interest expense, net		96				128				435				329
Add: income tax expense		33				45				154				86
Operating income	$	349			$	398			$	1,179			$	974
Add: non-cash amortization from 2006 private sale		6				7				25				28
Add: restructuring and transaction activities (1)		24				(162	)			79				(126	)
Add: other non-cash charges (2)		6				45				54				69
Adjusted operating income (8)	$	385			$	288			$	1,337			$	1,240
Add: depreciation		133				141				545				419
Add: amortization of intangibles (3)		68				68				275				166
Operating EBITDA (8)	$	586			$	497			$	2,157			$	1,530
Add: Unrealized synergies (4)										62
Adjusted EBITDA (8)									$	2,219
Cash flow from operating activities	$	552			$	630			$	1,530			$	1,201
Net additions to property, plant, and equipment		(165	)			(128	)			(583	)			(399	)
Payment of tax receivable agreement		—				(22	)			—				(38	)
Free cash flow (8)	$	387			$	480			$	947			$	764
Net income per diluted share	$	1.44			$	1.70			$	4.14			$	3.00
Other expense, net		0.18				(0.03	)			0.23				1.15
Non-cash amortization from 2006 private sale		0.04				0.05				0.19				0.21
Restructuring and transaction activities		0.18				(1.20	)			0.58				(0.93	)
Other non-cash charges (5)		—				0.29				0.14				0.29
Non-comparable tax items (6)		(0.15	)			—				(0.15	)			—
Income tax impact on items above (7)		(0.10	)			0.09				(0.28	)			(0.31	)
Adjusted net income per diluted share (8)	$	1.59			$	0.90			$	4.85			$	3.41

			Estimated Fiscal 2021
Cash flow from operating activities			$1,525 – $1,625
Additions to property, plant, and equipment			(650)
Free cash flow (8)			$875 – $975

(1)		The current quarter primarily includes transaction activity costs related to the RPC acquisition. The prior year quarter primarily includes the sale of our Seal for Life business of $214 million partially offset by restructuring and transaction related costs from the RPC acquisition. The fiscal year ended September 26, 2020, primarily includes restructuring and transaction costs related to the RPC acquisition. Restructuring and transaction activity costs for the fiscal year ended September 28, 2019, are primarily related to the sale of our Seal for Life business of $214 million, partially offset by restructuring and transaction activity costs from the RPC acquisition.
(2)		Other non-cash charges for the September 2020 quarter primarily includes $5 million of stock compensation expense. Other non-cash charges for the September 2019 quarter primarily includes a $39 million inventory step up charge related to the RPC acquisition and $6 million of stock compensation expense. Other non-cash charges for the fiscal year ended September 26, 2020 primarily includes $33 million of stock compensation expense and a $19 million inventory step-up related to the RPC acquisition. Other non-cash charges for the fiscal year ended September 28, 2019, includes a $39 million inventory step up charge related to the RPC acquisition, $27 million of stock compensation expense and a $5 million inventory step up charge related to acquisitions and other non-cash charges.
(3)		Amortization excludes non-cash amortization from the 2006 private sale of $6 million, $7 million, $25 million, and $28 million for the September 2020 quarter, September 2019 quarter, fiscal year ended September 26, 2020, and fiscal year ended September 28, 2019, respectively.
(4)		Represents unrealized cost savings related to acquisitions.
(5)		No adjustment was made only for the current quarter. An adjustment was made for the $39 million inventory step up charge related to the RPC acquisition in the prior year quarter. No adjustments were made for stock compensation expense or any other non-cash charges to net income per diluted share for the September 2020 quarter or prior year quarter. An adjustment was made for the $19 million inventory step up charge related to the RPC acquisition for the fiscal year ended September 2020. An adjustment was made for the $39 million inventory step up charge related to the RPC acquisition for the fiscal year ended September 2019. No adjustments were made for stock compensation expense or any other non-cash charges to net income per diluted share for the fiscal years ended September 2020 or 2019.
(6)		During fiscal year 2020 the Company obtained certain tax benefits of $20 million deemed as non-comparable.
(7)		Income tax effects on adjusted net income is calculated using 25 percent for both the September 2020, September 2019 quarters, and for the fiscal years ended for 2020 and 2019, respectively. The rates used represents the Company’s expected effective tax rate for each respective period.
(8)		Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. Organic sales growth excludes the impact of currency translation effects and acquisitions. These non-GAAP financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures. Berry’s management believes that Adjusted net income and other non-GAAP financial measures are useful to our investors because they allow for a better period-over-period comparison of operating results by removing the impact of items that, in management’s view, do not reflect our core operating performance.
		We define “free cash flow” as cash flow from operating activities less additions to property, plant, and equipment and payments under the tax receivable agreement. We believe free cash flow is useful to an investor in evaluating our liquidity because free cash flow and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company’s liquidity. We also believe free cash flow is useful to an investor in evaluating our liquidity as it can assist in assessing a company’s ability to fund its growth through its generation of cash.
		Adjusted EBITDA is used by our lenders for debt covenant compliance purposes. We also use Adjusted EBITDA and Operating EBITDA among other measures to evaluate management performance and in determining performance-based compensation. Adjusted EBITDA and Operating EBITDA and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company’s performance. We also believe EBITDA and Adjusted net income are useful to an investor in evaluating our performance without regard to revenue and expense recognition, which can vary depending upon accounting methods.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201119005164/en/

Company Contact:

Dustin Stilwell, Head of Investor Relations

+1 (812) 306 2964

[email protected]

KEYWORDS: Indiana United States North America

INDUSTRY KEYWORDS: Packaging Chemicals/Plastics Other Manufacturing Manufacturing

MEDIA:

Logo

Wells Fargo Launches WellsOne® Virtual Card Payments Service

Digital features provide business customers with enhanced security and controls

SAN FRANCISCO–(BUSINESS WIRE)–
Wells Fargo announced today a new solution to help business customers eliminate paper checks by using one-time virtual card numbers to digitally pay invoices through the WellsOne^® Virtual Card Payments service.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201119005158/en/

Available to WellsOne Commercial Card customers, this service offers a convenient way to make business payments with the security and control of a credit card, while providing suppliers with options to help receive payments faster. As businesses continue to extend remote work plans due to the pandemic, these digital benefits have become increasingly central to maintaining payment operations to help keep funds flowing between trading partners.

“It’s important we continue to introduce simple ways to help our customers transition to new digital payment strategies by using products and channels they are already familiar with,” said Mary Mazzochi, senior vice president and manager of the Commercial Card product suite at Wells Fargo. “Unlike paper checks, our virtual card service provides more transparent, precise payment timing to help optimize working capital, and added controls like single-use numbers help further mitigate the risk of fraud.”

To initiate, customers electronically send payment instructions from their enterprise resource planning system. Those to be paid by card are routed to the WellsOne Virtual Card Payments service, where each card payment is assigned a virtual number tied to a commercial card account. The virtual number, which can be used only once and for the exact dollar amount issued, is then sent through a digital secure channel to the supplier for payment processing.

Wells Fargo also offers an automated, straight-through processing option, in which customers send virtual card payments directly to their suppliers’ banks. This process bypasses the need for any manual entry or interaction with suppliers, and gives customers control over payment timing as they are not dependent on suppliers to process the payments.

The WellsOne Virtual Card Payments service helps make it easier to track, reconcile, and remit payments. Its intuitive dashboard with responsive design quickly surfaces items needing action while enhanced reporting identifies exceptions, monitors credit balances, and flags items that require repair. Other features include a robust audit trail, expanded search options, and access to 24 months of reporting data. Additionally, the WellsOne Commercial Card Supplier Analysis and Onboarding service helps customers engage suppliers and determine the best accounts to pay by card.

The WellsOne Commercial Card is a purchasing tool used by businesses of all sizes for procurement, travel and entertainment, account payable invoices, and transportation expenses.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.92 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,200 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 31 countries and territories to support customers who conduct business in the global economy. Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo.

News Release Category: WF-PS

View source version on businesswire.com: https://www.businesswire.com/news/home/20201119005158/en/

Media

Amy Konrath, 704-410-5528

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Banking Professional Services Insurance Finance

MEDIA:

Photo

Man sitting at table with laptop, reading papers while talking on mobile phone. (Photo: Wells Fargo)

Photo

Woman looking at computer screen who is with man sitting behind a computer desk. (Photo: Wells Fargo)

Build-A-Bear Workshop, Inc. Announces Third Quarter Fiscal 2020 Results Release Date, Webcast and Conference Call

ST. LOUIS–(BUSINESS WIRE)–
Build-A-Bear Workshop, Inc. (NYSE: BBW), today announced that the Company will report third quarter fiscal 2020 results for the period ended October 31, 2020, on Thursday, December 3, 2020, prior to the opening of trading on the New York Stock Exchange. The Company will host its quarterly investor conference call to discuss the results at 9 a.m. ET on the same day.

The dial-in number for the live conference call is (201) 493-6780 (domestic and international). The access code is Build-A-Bear. The live Internet broadcast may be accessed at the Company’s investor relations website, http://IR.buildabear.com. The call is expected to conclude by 10 a.m. ET.

A replay of the conference call will be available via the internet and telephone. The replay of the conference call webcast will be available at the investor relations website for one year. A telephone replay will be available beginning at approximately 12 p.m. ET on December 3, 2020, until 11:59 p.m. ET on December 10, 2020. The telephone replay is available by calling (844) 512-2921. The access code is 13713287.

About Build-A-Bear Workshop, Inc.:

Build-A-Bear is a multi-generational global brand focused on “adding a little more heart to life” appealing to a wide array of consumer groups who enjoy the personal expression in making their own “furry friends” to celebrate and commemorate life moments. The 500+ interactive brick-and-mortar retail locations provide guests of all ages an interactive entertaining experience, which often fosters a lasting and emotional brand connection. The company also offers an engaging e-commerce/digital purchasing activity called the “Bear-Builder” at www.buildabear.com. In addition, the company leverages its brand’s power and equity beyond retail through entertaining content, wholesale products and non-plush consumer product categories via licensing agreements with leading manufacturers. Build-A-Bear Workshop, Inc. (NYSE: BBW) posted total revenue of $338.5 million in fiscal 2019. For more information, visit the Investor Relations section of buildabear.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201119005125/en/

Voin Todorovic

Build-A-Bear Workshop

314-423-8000 x5221

KEYWORDS: Missouri United States North America

INDUSTRY KEYWORDS: Family Retail Consumer Department Stores Children Specialty

MEDIA:

Posted on November 19, 2020 7:33 am

Plus Products Announces Date for the Release of Third Quarter 2020 Financial Results, Conference Call and Webcast

SAN MATEO, Calif., Nov. 19, 2020 (GLOBE NEWSWIRE) — Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”) today announced it will report its financial and operational results for the three months ended September 30, 2020 after markets close on November 23, 2020.

Conference Call Details

At 5:00 pm Eastern Time / 2:00 pm Pacific Time the same day (November 23, 2020) the Company will host a conference call and webcast to discuss the financial results and its recent corporate highlights.

Participant Dial-In Numbers:

Toll-Free: (866) 220-4156

Toll / International: (864) 663-5231

*Participants should request the Plus Products Earnings Call or provide conference ID: 1087279

Please dial-in or log-on to the webcast at least 15 minutes before the start of the call

The call will also be webcast at https://edge.media-server.com/mmc/p/sqg6kpjg

Please visit the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. Following the conclusion of the call, there will be an archived audio webcast of the conference call available for replay on the Company’s website at PlusProductsInc.com.

Jake Heimark, Co-founder and Chief Executive Officer, and Nate Pearson, Chief Financial Officer, will be conducting a question and answer session following the prepared remarks.

About PLUS

PLUS is a cannabis food company focused on using nature to bring balance to consumers’ lives. PLUS’s mission is to make cannabis safe and approachable – that begins with high-quality products that deliver consistent consumer experiences. PLUS is headquartered in San Mateo, CA.

Fo
r further information contact:

Jake Heimark
CEO & Co-founder
[email protected]

Investors:

Blake Brennan
Investor Relations
[email protected]
Tel +1 213.282.6987

Media:

Mattio Communications
[email protected] 

The CSE does not accept responsibility for the adequacy or accuracy of this release.

Posted on November 19, 2020 7:33 am

FTI Consulting Receives Procurement Success Award for New York City COVID-19 PPE Sourcing

WASHINGTON, Nov. 19, 2020 (GLOBE NEWSWIRE) — FTI Consulting, Inc. (NYSE: FCN) today announced that the firm received the “Special Contribution Award 2020, Outstanding Contribution Award for COVID-19” at the Procurement Success Awards 2020.

The Procurement Success Awards are described as the top-level procurement award ceremony in the Asia Pacific region. FTI Consulting was recognized for its global effort, working directly with the Office of the Mayor of the City of New York and suppliers in China, to deliver personal protective equipment to New York City during the height of the COVID-19 pandemic. The firm helped identify a large pool of suppliers and developed a shortlist of qualified vendors based on product quality, reputation, certification, scalability, price and on-site visits to the facilities.

In addition to the sourcing, logistics and regulatory components, FTI Consulting leveraged its expertise to help expand New York City’s warehouse network. The team refined stockpile targets based on projected needs and daily burn rates and provided ongoing analytics around specific hospital data, vendor performance, market trends, price fluctuations and spend details. By refreshing and reimagining the city’s inventory system, the team ensured that proper equipment was available, identifiable and ultimately delivered to healthcare workers on the frontlines of the COVID-19 pandemic.

Commenting on the award, Bill He, a Senior Managing Director and Leader of the Business Transformation practice in Asia at FTI Consulting, said, “We are pleased that we were able to leverage our logistics and procurement expertise across the global FTI Consulting platform to help deliver the necessary protective equipment to frontline workers as they battled the COVID-19 pandemic.”

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 6,200 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $2.35 billion in revenues during fiscal year 2019. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.

FTI Consulting, Inc.

555 12^th Street NW
Washington, DC 20004
+1.202.312.9100

Investor
Contact
:

Mollie Hawkes
+1.617.747.1791
[email protected]

Media
Contact
:

Matthew Bashalany
+1.617.897.1545
[email protected]

Posted on November 19, 2020 7:33 am

CloudMD Closes Acquisition of Re:Function, a Profitable Rehabilitation Clinic Network

$5.8 million in revenue and over 19% EBITDA

VANCOUVER, British Columbia, Nov. 19, 2020 (GLOBE NEWSWIRE) — CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telehealth company revolutionizing the delivery of healthcare to patients, is pleased to announce that it has closed the previously announced acquisition of Re:Function Health Group Inc. (“Re:Function”), a leading rehabilitation clinic network, with 8 clinics and 37 specialists and allied health professionals.

Dr.
Essam Hamza, CEO of CloudMD commented, “We are excited to close the acquisition of Re:Function and have already started working with the entire team. Through strategic M&A, we have acquired a number of already successful standalone healthcare solutions that combined, will create one transformative platform that emphasizes whole-personcare. The integration of these solutions is already very much underway and already showing early beneficial results. I am extremely proud of our team for their diligence and focus in building the solid foundation which has enabledCloudMD to be a leader in the space.”

Re:Function is a state-of-the-art rehabilitation company built by like-minded health professionals offering superior patient focused care, with a longitudinal approach to healthcare delivery. Re:Function provides assessments for enterprise clients, insurers and corporations for long-term disability claims and return to work outcomes. CloudMD will integrate its telemedicine solutions throughout the clinics, layering on additional allied health and specialist functions to the platform. The practice is made up of four key rehabilitation pillars, Re:Build (physiotherapy), Re:Think (counselling), Re:View (medlegal consulting) and Re:Tool (vocational rehabilitation), and a team of specialists including: Occupational Therapists, Physiotherapists, Kinesiologists, Psychologists, Psychiatrists and Counsellors.

The acquisition will be immediately accretive to CloudMD as the Re:Function group of clinics generated approximately $5.8 million in revenues with earnings before interest, taxes, depreciation and amortization (EBITDA) margins exceeding 19% over the last fiscal year ending January, 2020.

Re:Function’s principle Directors, Ralph Cheesman and Mike Smith, both Occupational Therapists, will be joining CloudMD to lead the continued expansion of allied health services across North America, and together will provide a multidisciplinary, team-based approach to treatment.

Terms of
Agreement

In consideration for the purchase of 100% of the outstanding securities of Re:Function, CloudMD has agreed to pay shareholders aggregate consideration of C$8,000,000 payable as follows: (i) C$3,000,000 in cash, subject to a working capital adjustment; (ii) C$3,500,000 in shares of the Company; and (iii) a performance-based earnout of C$1,500,000, which is payable in shares of the Company in annual issuances over a period of three years. All shares issued pursuant to the acquisition are issued at a deemed price of C$0.88 per share and are priced by calculating the ten-day volume weighted average trading price of the Company’s shares for the 10 trading days prior to the execution of the binding term sheet executed on August 21, 2020. The shares will be subject to certain contractual restrictions on trading for a period of thirty months from the date of issuance.

About Re:Function Health Group

Re:Function is a state-of-the-art rehabilitation company built by like-minded health professionals offering superior patient focused care, with a longitudinal approach to healthcare delivery. The practice is made up of four key rehabilitation pillars, Re:Build (physiotherapy), Re:Think (counselling), Re:View (medlegal consulting) and Re:Tool (vocational rehabilitation), and a team of specialists including: Occupational Therapists, Physiotherapists, Kinesiologists, Psychologists, Psychiatrists and Counsellors. For more information visit www.refunction.ca

About CloudMD Software & Services

CloudMD is digitizing the delivery of healthcare by providing a patient centric approach, with an emphasis on continuity of care. The Company offers SAAS based health technology solutions to healthcare providers across North America and has developed proprietary technology that delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, educational resources and artificial intelligence (AI). CloudMD currently services a combined ecosystem of over 500 clinics, almost 4000 licensed practitioners and 8 million patient charts across North America.

ON BEHALF OF THE BOARD OF DIRECTORS

“Dr. Essam Hamza, MD”

Chief Executive Officer

FOR ADDITIONAL INFORMATION CONTACT:

Julia Becker

VP, Investor Relations

[email protected]

Forward Looking Statements

This news release contains forward-looking statements that are based on CloudMD’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Non-GAAP
and Non-IFRS
Measures

This press release refers to “EBITDA” and “EBITDA margins” which are non-GAAP and non-IFRS financial measures that do not have a standardized meaning prescribed by GAAP or IFRS. The Company’s presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These financial measures are intended to provide additional information to investors concerning the Company’s and Re:Function’s performance. EBITDA is defined as earnings before interest, taxes, depreciation and amortization and EBITDA margins is defined as EBITDA as a percent of total revenue. EBITDA and EBITDA margins are Non-IFRS measures the Company uses as an indicator of financial health and excludes several items which may be useful in the consideration of the financial condition of the Company and Re:Function, as applicable, including interest expense, income taxes, depreciation, and amortization.

The
TSX Venture
Exchange does not accept responsibility for the adequacy or accuracy of this release.

Posted on November 19, 2020 7:33 am

Marathon Gold Reports Additional Berry Drill Results, Valentine Gold Project

Results include 3.70 g/t Au over 42m, 1.68 g/t Au over 26m, 1.47 g/t Au over 30m, 1.68 g/t Au over 24m

TORONTO, Nov. 19, 2020 (GLOBE NEWSWIRE) — Marathon Gold Corporation (“Marathon” or the “Company”;TSX: MOZ) is pleased to report additional drill results from recent exploration drilling at the Valentine Gold Project, central Newfoundland (the “Project”). These latest results represent fire assay data from fifteen drill holes located within the new Berry Zone which were completed as part of the ongoing Berry infill drill program. Highlights include:

• VL-20-8
  89 intersected 3.70 g/t Au over 42 metres including 73.26 g/t Au over 1 metre and 13.48 g/t Au over 1 metre and 11.84 g/t Au over 1 metre and 11.77 g/t Au over 1 metre, and 1.68 g/t Au over 24 metres including 10.66 g/t Au over 1 metre, and 25.74 g/t Au over 1 metre;
• VL-20-8
  86 intersected 1.68 g/t Au over 26 metres including 10.55 g/t Au over 1 metre;
• VL-20-8
  80 intersected 1.47 g/t Au over 30 metres including 10.54 g/t Au over 1 metre;
• VL-20-8
  83 intersected 1.42 g/t Au over 18 metres;
• VL-20-8
  81 intersected 1.42 g/t Au over 13 metres and 1.12 g/t Au over 12 metres;
• VL-20-891 intersected 1.03 g/t Au over 16 metres and 3.82 g/t Au over 5 metres including 11.01 g/t Au over 1 metre;
• VL-20-893 intersected 3.52 g/t Au over 10 metres including 12.54 g/t Au over 1 metre; and,
• VL-20-8
  77 intersected 33.29 g/t Au over 1 metre.

All quoted intersections comprise uncut gold assays in core lengths. All significant assay intervals are reported in Table 1.

Matt Manson, President & CEO commented: “These latest results from the new Berry Zone continue to demonstrate long intersections of Quartz-Tourmaline-Pyrite-Gold mineralization in characteristic “Main Zone” configurations within our in-fill drill area. By the end of this month we expect to have completed our 52,000 metre 2020 exploration drill program at the Valentine Gold project, including the 8,000 metres of infill drilling at Berry. Assay results from this drilling are expected to be released in batches through the end of the year and into January. These will include assay results from Berry, the Sprite Corridor between Berry and the Frozen Ear Pond (FEP) Road, the FEP Road to the Marathon Deposit, and the Narrows area located northeast of the Marathon Deposit. The results of the Berry drilling will then be incorporated in a new Mineral Resource estimate. Given the success of our 2020 exploration drilling, and the scale of mineralization we are seeing at Berry, we anticipate an equally vigorous exploration program in 2021.”

Gold mineralization at the Valentine Gold Project is contained predominantly within shallowly southwest dipping, en-echelon stacked Quartz-Tourmaline-Pyrite-Gold (“QTP-Au”) veins. At the Leprechaun and Marathon Deposits, as well as at the new Berry Zone, these QTP-Au veins form densely stacked and northwest plunging “Main Zone” envelopes within intrusive host rocks on the hanging wall (northwest) side of the Valentine Lake Shear Zone. The extent of mineralization appears related to the size and frequency of sheared mafic dykes which extend northeast-southwest within the hanging wall, parallel to the shear zone. Exploration drilling is generally undertaken in two orientations: down steeply towards the northwest at a high angle to the individual veins and down-plunge of the Main Zone stacking, or obliquely towards the southeast sub-parallel to the individual veins and across the strike of Main Zone mineralization.

The results released today are derived from fourteen drillholes located between sections 13400E and 13650E at the western end of the Berry in-fill area (VL-20-877, 878, 880, 881, 883, 884, 885, 886, 887, 888, 889, 890, 891 and 894), and one hole at section 13970E close to the eastern end (VL-20-893; Figures 2 and 3). All holes were oriented steeply down to the northwest.

Overall, fourteen of the fifteen drill holes returned “significant” drill intersections of greater than 0.7 g/t Au (Table 1). Each of these fourteen holes returned additional intersections with gold grades above the 0.3 g/t Au cut-off used in the January 2020 Mineral Resource Estimate for the Project. No economic mineralization was encountered in drill hole VL-20-878 which stayed within footwall sedimentary rocks.

Technical Investor Session

The Company will be hosting an online technical session focussing on exploration and engineering plans for the Valentine Gold Project on November 24th at 10:00 A.M. EST. A presentation by management will be followed by Q&A. To register, please visit: bit.ly/2IAKeeO

Table 1: Significant assay intervals, Sprite Corridor, Valentine Gold Project

DDH	Section	Az	Dip	From	To	Core Length (m)	True Thickness (m)	Gold g/t	Gold g/t (cut)
VL-20-877	13400	345	-79	16	17	1	0.95	0.76
				58	59	1	0.95	1.74
				95	97	2	1.9	0.79
				125	126	1	0.95	3.00
				130	132	2	1.9	1.27
				135	136	1	0.95	0.87
				143	146	3	2.85	1.26
				150	151	1	0.95	0.83
				153	154	1	0.95	33.29	30
VL-20-880	13430	345	-76	97	98	1	0.95	1.19
				101	102	1	0.95	1.05
				125	126	1	0.95	2.56
				144	174	30	28.5	1.47
including				155	156	1	0.95	10.54
VL-20-881	13450	343	-77	18	28	10	9.5	1.09
				36	38	2	1.9	1.59
				42	43	1	0.95	1.62
				55	56	1	0.95	0.71
				70	71	1	0.95	2.87
				103	116	13	12.35	1.42
				123	125	2	1.9	1.05
				134	146	12	11.4	1.12
				154	163	9	8.55	1.18
				178	179	1	0.95	0.74
				183	185	2	1.9	2.53
				189	190	1	0.95	2.04
VL-20-883	13480	343	-78	28	29	1	0.95	1.36
				82	83	1	0.95	3.11
				97	98	1	0.95	0.92
				104	107	3	2.85	1.20
				137	155	18	17.1	1.42
				176	178	2	1.9	1.39
VL-20-884	13500	347	-79	88	89	1	0.95	3.03
VL-20-885	13480	345	-81	71	73	2	1.9	0.88
				78	79	1	0.95	1.37
				81	82	1	0.95	0.71
				86	88	2	1.9	1.55
				96	97	1	0.95	1.28
				128	129	1	0.95	2.82
				178	180	2	1.9	0.82
VL-20-886	13480	344	-80	97	123	26	24.7	1.68
				120	121	1	0.95	10.55
				128	129	1	0.95	0.76
				86	88	2	1.9	1.55
				96	97	1	0.95	1.28
				128	129	1	0.95	2.82
VL-20-887	13480	337	-78	59	76	17	16.15	0.84
VL-20-888	13540	343	-75	17	18	1	0.95	1.45
				40	41	1	0.95	0.94
VL-20-889	13580	342	-77	11	12	1	0.95	0.89
				15	16	1	0.95	25.74
				21	22	1	0.95	0.85
				37	79	42	39.9	3.70	2.67
including				44	45	1	0.95	11.77
Including				52	53	1	0.95	11.84
Including				71	72	1	0.95	73.26	30
Including				78	79	1	0.95	13.48
				117	123	6	5.7	0.90
				126	127	1	0.95	2.26
				129	130	1	0.95	0.93
				145	146	1	0.95	1.96
				155	179	24	22.8	1.68
Including				156	157	1	0.95	10.66
				204	205	1	0.95	0.85
				209	210	1	0.95	1.73
				251	252	1	0.95	0.97
				268	269	1	0.95	1.21
				280	281	1	0.95	6.43
				297	298	1	0.95	0.74
VL-20-890	13580	342	-76	54	55	1	0.95	0.75
				62	63	1	0.95	15.01
				81	82	1	0.95	1.20
				126	127	1	0.95	4.82
				132	133	1	0.95	4.30
VL-20-891	13630	342	-75	8	10	2	1.9	5.04
				25	26	1	0.95	3.38
				30	34	4	3.8	2.66
				42	43	1	0.95	3.16
				106	107	1	0.95	0.94
				135	136	1	0.95	0.91
				140	156	16	15.2	1.03
				170	174	4	3.8	2.89
				188	189	1	0.95	0.90
				195	200	5	4.75	3.82
Including				199	200	1	0.95	11.01
				253	254	1	0.95	1.62
VL-20-89 3	13970	345	-75	24	25	1	0.95	8.08
				35	36	1	0.95	2.60
				43	44	1	0.95	1.40
				48	51	3	2.85	1.39
				56	66	10	9.5	3.52
Including				61	62	1	0.95	12.54
				93	94	1	0.95	1.13
				102	103	1	0.95	7.17
				107	108	1	0.95	5.84
				124	126	2	1.9	1.35
				221	223	2	1.9	0.76
VL-20-89 4	13650	343	-75	128	129	1	0.95	0.85
				138	139	1	0.95	0.96
				144	145	1	0.95	1.16
				151	152	1	0.95	2.31

Notes on


the Calculation of Assay Intervals

1. “Significant” assay intervals are defined as 1m core length or more of mineralization with an average fire assay result of greater than 0.7 g/t Au, representing the bottom cut-off for high-grade mill feed in the Marathon April 2020 Pre-Feasibility Study mine plan (see technical report dated April 21, 2020). Assay intervals with an average fire assay result of between 0.3 g/t Au and 0.7 g/t Au are above
   the
   cut-off used in the January 2020 Mineral Resource Estimate for the Project but are not considered “significant”
   for the purposes of
   this news release
   .
2. Cut gold grades are calculated at 30 g/t Au.
3. No significant assays were returned in drill hole
   s
   VL-20-
   8
   7
   8
   

Figure 1: Location Map, Valentine Gold Project. (See News Release Dated February 3, 2020 for a Description of the 2020 Exploration Drill Program) is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/45733e0c-754e-4202-9724-b20dc813ebd7

Figure 2: Location of Berry Zone Exploration Drill Hole Collars VL-20-877 to VL-20-894 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f6979e9c-a717-4958-b48e-5dfa60c74593

Figure 3: Cross section 13580E (View NE) Sprite Corridor, Valentine Gold Project is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cb23a20c-a27d-4314-b9b5-7dac48ea2522

Qualified Person

Disclosure of a scientific or technical nature in this news release was prepared under the supervision of Nicholas Capps, P.Geo. (NL), Project Manager for exploration at the Valentine Gold Project. Exploration data quality assurance and control for Marathon is under the supervision of Jessica Borysenko, P.Geo (NL), GIS Manager for Marathon Gold Corporation. Both Mr. Capps and Ms. Borysenko are qualified persons under National Instrument (“NI”) 43-101.

Quality Assurance-Quality Control (“QA/QC”)

QA/QC protocols followed at the Valentine Gold Project include the insertion of blanks and standards at regular intervals in each sample batch. Drill core is cut in half with one half retained at site, the other half tagged and sent to Eastern Analytical Limited in Springdale, NL. All reported core samples are analyzed for Au by fire assay (30g) with AA finish. All samples above 0.30 g/t Au in economically interesting intervals are further assayed using metallic screen to mitigate the presence of coarse gold. Significant mineralized intervals are reported in Table 1 as core lengths and estimated true thickness (70 – 95% of core length), and reported with and without a top-cut of 30 g/t Au applied.

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

About Marathon

Marathon (TSX:MOZ) is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The Project comprises a series of four mineralized deposits along a 20-kilometre system. An April 2020 Pre-Feasibility Study outlined an open pit mining and conventional milling operation over a twelve-year mine life with a 36% after-tax rate of return. The Project has estimated Proven Mineral Reserves of 1.3 Moz (26.3 Mt at 1.52 g/t) and Probable Mineral Reserves of 0.6 Moz (14.8 Mt at 1.23 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 1.9 Moz (31.7 Mt at 1.86 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.19 Moz (23.2 Mt at 1.60 g/t). Additional Inferred Mineral Resources are 0.96 Moz (16.77 Mt at 1.78 g/t Au). Please see the Technical Report dated April 21, 2020 for further details and assumptions relating to the Valentine Gold Project.

For more information, please contact:

Matt Manson President & CEO Tel: 416 987-0711 [email protected]

Hannes Portmann CFO & Business Development Tel: 416 855-8200 [email protected]

Amanda Mallough Senior Associate, Investor Relations Tel: 416 855-8202 [email protected]

To find out more information on Marathon Gold Corporation and the Valentine Gold Project, please visit www.marathon-gold.com.

Cautionary Statement Regarding Forward-Looking Information

Certain information contained in this news release, constitutes forward-looking information within the meaning of Canadian securities laws (“forward-looking statements”). All statements in this news release, other than statements of historical fact, which address events, results,
outcomes
or developments that Marathon expects to occur are forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. More particularly and without restriction, this news release contains forward-looking statements and information about Marathon’s intention to complete the Offering and the timing thereof, economic analyses for the Valentine Gold Project, capital and operating costs, processing and recovery estimates and strategies, future exploration and mine plans, objectives and expectations and corporate planning of Marathon, future feasibility studies and environmental impact statements and the timetable for completion and content thereof and statements as to management’s expectations with respect to, among other things, the matters and activities contemplated in this news release.

Forward-looking statements involve known and unknown risks,
uncertainties
and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. A mineral resource that is classified as “inferred” or “indicated” has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category of mineral resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable mineral reserves.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include receipt of all necessary regulatory approvals, completion of all conditions to closing of the Offering, availability of financing to fund Marathon’s exploration and development activities, the ability of the current exploration program to identify and expand mineral resources, operational risks in exploration and development for gold, Marathon’s ability to realize the pre-feasibility study, delays or changes in plans with respect to exploration or development projects or capital expenditures, uncertainty as to calculation of mineral resources, changes in commodity and power prices, changes in interest and currency exchange rates, the ability to attract and retain qualified personnel, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral resources), changes in development or mining plans due to changes in logistical, technical or other factors, title defects, government approvals and permits, cost escalation, changes in general economic conditions or conditions in the financial markets, environmental regulation, operating hazards and risks, delays, taxation rules, competition, public health crises such as the COVID-19 pandemic and other uninsurable risks, liquidity risk, share price volatility, dilution and future sales of common shares, aboriginal claims and consultation, cybersecurity threats, climate change, delays and other risks described in Marathon’s documents filed with Canadian securities regulatory authorities.

You can find further information with respect to these and other risks in Marathon’s Amended and Restated Annual Information Form for the year ended December 31, 2019 and other filings made with Canadian securities regulatory authorities available at

www.sedar.com

. Other than as specifically required by law, Marathon undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results otherwise.