Advertisements



The Queen"s Health Systems launches new website

The enhanced website features streamlined navigation so users can find the health care services they need more readily......»»

Category: topSource: bizjournalsNov 24th, 2021

Elon Musk said he"d donate $6 billion if the UN could prove it would help the hunger crisis. Here are all the other humanitarian disasters he"s tried to fix, and how it"s going so far.

Elon Musk has pledged to fix a lot of humanity's problems. He's doing a lot of good - but not all of his solutions seem to be working. Tesla CEO Elon Musk. Patrick Pleul/picture alliance via Getty Images Tesla and SpaceX CEO Elon Musk doesn't shy away from a crisis. He's actively working to solve existential problems like climate change and traffic gridlock. He's also tried to solve immediate issues like ventilator shortages to varying degrees of success. Elon Musk has courted controversy and made headlines for all the wrong reasons in the past, but he's also had some remarkable success in developing world-changing technology. For all his bluster, attacks on journalists, and eccentric behavior, he is also working to solve some of humanity's most dire problems. Climate change? Musk's electric car company, Tesla, has made electric cars exciting. Traffic woes and all the negative health effects of congestion-caused pollution? Musk created The Boring Company to dig a network of tunnels to avoid gridlocked freeways. Colonizing other planets to save ourselves from extinction? SpaceX is working on it. Beyond these moonshot initiatives, Musk has delivered real results. After Hurricane Maria knocked out power for millions of Puerto Rico's residents in 2017, Musk donated hundreds of solar-powered batteries to the island. And as the coronavirus began spreading worldwide, Tesla began working on ventilator parts and shipping medical devices to hospitals in need. Now, he's challenging the UN's plea for $6 billion to help millions at risk of dying due to starvation - but said he may cash out Tesla shares to help. Below, we check in on a few of humanity's problems Musk said he wants to solve. Thai rescue team members walk inside a cave where 12 boys and their soccer coach were trapped in Mae Sai, Chiang Rai province, northern Thailand. Royal Thai Navy via AP The crisis: Rescuing Thailand's cave boys. The fix: A "kid-size" submarine.During the mission to save 12 boys and their soccer coach from a flooded cave in Thailand, Musk gathered engineers from Tesla, SpaceX, and the Boring Company to create a "kid-size" submarine using rocket parts.The chief of the rescue mission said the device was not practical, and the rescue was completed successfully without Musk's device. A British diver involved in the rescue also called Musk's actions a "PR stunt" and said the submarine had no chance of working in this scenario. In response, Musk called the diver a "pedo guy" in a tweet, which has since been deleted.In September 2018, the diver filed a defamation lawsuit against Musk in California, but Musk has since been cleared.Still, a Thai military official said Musk's submarine could be useful for future missions, and engineers from SpaceX met with members of the Thai Navy to train them on using it. Musk tweeted that the engineers also received feedback from British divers about improving the technology. Demonstrators protest over the contaminated water crisis in Flint, Michigan on March 6, 2016. Rebecca Cook/Reuters The crisis: Flint's lead-contaminated water. The fix: Replacing pipes and adding water filters.Flint, Michigan, continues to grapple with the effects of a water crisis in which dangerous levels of lead were detected after the state switched the city's water supply (from Lake Huron to the Flint River) in 2014. Residents who got sick reported experiencing skin lesions, depression, and memory loss. The US Environmental Protection Agency says any water with lead levels above 15 parts per billion requires action to minimize exposure. In Flint, lead levels in some homes surpassed 4,000 ppb.Lead levels fell to 12 ppb by the end of 2016, and officials say the water is now safe to drink. Some Flint residents remain skeptical. Musk promised in July 2018 to fix the pipes in homes with water contamination "above FDA levels." He also tweeted that he would organize a weekend to add filters to houses in Flint and to "hopefully fix perception of those that are actually good."In 2018, the Musk Foundation donated $424,000 for laptops for Flint middle schoolers, as well as more than $480,000 to install new filtration systems for water fountains in all Flint schools. In August 2019, Flint schools approved testing of the new filtration systems provided by Musk, and two years later, the school district said the filters were in the final stages of testing. A Tesla vehicle drives through the Las Vegas Convention Center Loop. John Locher/AP Photo The crisis: Traffic, and the negative health effects of gridlock. The fix: An underground network of tunnels.Like many of us, Musk hates sitting in traffic. His solution to traffic-clogged freeways? Digging a network of underground tunnels.Traffic is more than just an annoyance. According to a 2014 study, the air pollution generated by traffic can lead to an increase in heart disease and stroke risk for those living near congested areas. Other studies have shown that people living near major roadways in congested cities have an increase in emergency room visits and mortality, among other health effects. Through the Boring Company, Musk is seeking to connect dense urban locations via an underground "Loop" system that could carry autonomous vehicles up to 155 miles-per-hour, cutting travel times across the city, and reducing traffic-caused pollution in the process. But it's been a slow-moving process for the company. Early plans to build tunnels in Los Angeles and Chicago fizzled out, and the first completed project in Las Vegas, a 1.7 mile loop that ferries people to the Las Vegas Convention Center, is "basically just Teslas in tunnels at this point," Musk has said.Still, Musk has plans to build a tunnel in Fort Lauderdale, is reportedly in talks to expand in Texas, and recently gained approval from Nevada's Clark County to build a 29-mile network of tunnels underneath the Las Vegas Strip, the company's biggest project to date. A woman tries to walk out from her house after the area was hit by Hurricane Maria in Salinas, Puerto Rico on September 21, 2017. REUTERS/Carlos Garcia Rawlins The crisis: Hurricane Maria's devastation in Puerto Rico. The fix: Powerwall batteries.After Hurricane Maria knocked out power for Puerto Rico's 3.5 million residents in September 2017 and left them without basic resources like running water, Tesla pledged to help install battery packs and repair solar panels on the island. While the official death toll was 64, a study released in the New England Journal of Medicine in 2018 claimed that over 4,000 more people died in the three months after the hurricane, largely due to problems getting medical care or medicines. That total death toll is likely closer to 3,000, according to researchers at George Washington University.Shortly after the hurricane, San Juan Mayor Carmen Cruz said that it could take up to six months to restore the electric grid, and Tesla sent hundreds of its Powerwall batteries to help residents in the interim.During an island-wide blackout in April 2018, Musk tweeted that Tesla batteries were delivering power to 662 locations in Puerto Rico, and that employees were working to install hundreds more. Two months later, Musk tweeted that Tesla has "about 11,000 projects underway in Puerto Rico." But since then, much of the equipment delivered to Puerto Rico has fallen into disrepair, according to a May 2019 HuffPost report, which found home and businesses with solar panels using diesel generators instead.Musk has successfully provided power to areas affected by natural disasters before. In 2010, Musk and what was then SolarCity donated a solar power system to a hurricane response center in the Gulf Coast village of Coden, Alabama. The project, built by SolarCity and funded by the Musk Foundation, provided residents with an alternate source of power in case of an outage.The following year, the Musk Foundation donated $250,000 to build a solar power system in Soma, a city in Japan's Fukushima prefecture that was devastated by a tsunami. FILE PHOTO: Rita Ebel, nicknamed "Lego grandma", builds a wheelchair ramp from donated Lego bricks in the living room of her flat in Hanau Reuters The crisis: Affordable housing. The fix: Lego-style bricks for building houses cheaply. Construction crews from Musk's Boring Company, which launched in 2016, excavate through rock and soil to bore tunnels. In March 2018, Musk tweeted that he intends to use leftover earth from these projects to form interlocking, Lego-style bricks that can be used for building houses.Musk reiterated this plan that May, saying the bricks will help create low-income housing. He wrote that "two people could build the outer walls of a small house in a day or so," but did not specify how much the bricks would cost. In July 2018, the Boring Company uploaded a video to Twitter showing the bricks being produced.Musk and the Boring Company haven't provided an update on this idea in well over two years. Musk has filed permits to open the Brick Store where these bricks could be sold, and has said he plans to build a 50-foot watchtower out of the bricks at the company's headquarters. The company's website used to say the bricks could be used as pavers and are "great for patios!" but that information has since been removed. Tesla Model 3 Feature China: Barcroft Media via Getty Images The crisis: Climate change and weaning humanity off fossil fuels.The fix: Electric cars and solar energy. If there's a grand vision that unites Musk's seemingly disparate ambitions, it's solving the existential problem of climate change. Central to that problem is weaning humans off fossil fuels and moving the world to renewable forms of energy. His electric car company, Tesla, produced the most profitable electric car ever sold in the Model 3. But the company's stock price is historically volatile (though that era appears to have come to an end), and Musk continues to make headlines for the wrong reasons. Musk has also struggled with meeting the demands of both his consumers and investors at Tesla. He called building and delivering the Model 3 "production hell" as Tesla raced to produce enough to meet Musk's promises. Beyond electric cars, a large component of Tesla's business is in solar energy, but that part of the business has seen its share of struggles as well. Still, Musk has done more than perhaps any other recent entrepreneur to make electric cars mainstream in our collective imagination. SpaceX launches its first super heavy-lift Starship SN8 rocket during a test from their facility in Boca Chica, Texas, on December 9, 2020. Gene Blevins/Reuters The crisis: A mass-extinction event wiping out all life from Earth.The fix: Colonizing Mars and becoming a multi-planetary species.Musk's rocket company, SpaceX, has lofty goals. One of its chief ambitions, Musk said, is the colonization of Mars, ultimately pushing humanity to become a "multi-planetary" species.In 2013, Musk expanded on his thinking around this: "Either we spread to other planets, or we risk going extinct," Musk said, per Futurism. "An extinction event is inevitable and we're increasingly doing ourselves in." Musk has said he's planning to build 1,000 387-foot rocket ships, called Starships, for deep-space travel, with the goal of launching three of them every day. Musk originally said the company would send a cargo mission to Mars in 2022, but he's since bumped that estimation to 2024, with a crewed mission heading to Mars by 2026.That said, we're still a long way from colonizing Mars. The technology to transform the dry, dusty Red Planet into a thriving Martian metropolis just doesn't exist yet. A firefighter monitors a back burn along Highway 50 next to a home that was partially wrapped in foil as crews continued structure prevention at the Caldor Fire in Strawberry, Calif., on Sunday, August 29, 2021. Carlos Avila Gonzalez/San Francisco Chronicle via Getty Images The crisis: California wildfires. The fix: Using Tesla products to help people in areas affected by fires. Northern California's Camp Fire is considered the deadliest in the state's history. More than 153,000 acres were burned in the fire and 85 people died. In the midst of the fire in 2018, Musk tweeted that Tesla cars have "hospital grade HEPA filters" and could help transport people in affected areas. Some Tesla owners praised Tesla's filters for helping them breathe more easily, but Musk was also criticized for inserting himself into another crisis, the Mercury News reported at the time.When the fires raged again in 2019, causing power failures throughout California, Musk once again plugged Tesla's products."Order Tesla Solar + Powerwall battery for 24/7 clean power & no blackouts!" Musk tweeted in October. He included a link to Tesla's website. However, as the Washington Post noted at the time, Tesla's solar setup can keep a home running for only about a day or two during a blackout and costs tens of thousands of dollars. Misha Friedman/Getty Images The crisis: Medical supply shortages related to the coronavirus.The fix: Using Tesla factories to produce ventilators and shipping medical devices to hospitals in need. In the early months of the pandemic, Musk was outspoken about the coronavirus on Twitter, positing medical advice and making unverified claims, such as the belief that children are "essentially immune" to COVID-19.But he's also said that Tesla would work on solving the issue of ventilator shortages - the machines are critical for patients enduring the most extreme respiratory effects of the virus - by both building parts for new ventilators using SpaceX and Tesla's expertise, and procuring medical devices to distribute to hospitals. But Musk's ventilator efforts were repeatedly called into question as critics questioned whether he was delivering the machines most needed to help COVID-19 patients, and whether he was even delivering the promised number of devices at all. Meanwhile, Tesla engineers quickly got to work on building ventilators - other automakers like Ford and GM did the same and have since completed production - though it's unclear whether Tesla ever delivered finished ventilators. Tesla CEO Elon Musk in Germany on Friday. Patrick Pleul/Pool via Reuters The crisis: 42 million people are on the brink of starvation. The fix: Donating $6 billion in Tesla stock.David Beasley, the executive director for the UN's World Food Programme, told CNN last month that "the billionaires need to step up now on a one-time basis" in order to help millions of people at risk of starvation. But Musk was skeptical of Beasley's claim, tweeting that if the organization "can describe on this Twitter thread exactly how $6B will solve world hunger," he would sell Tesla stock in order to donate. "But it must be open source accounting, so the public sees precisely how the money is spent," he added.In response, Beasley said that Musk's team could "review and work with us to be totally confident" of the organization's accounting, and clarified that he didn't say a $6 billion donation would "solve world hunger," as Musk purported. "This is a one-time donation to save 42 million lives during this unprecedented hunger crisis," Beasley tweeted.It's unclear whether Musk plans to follow through on the donation.Peter Kotecki contributed to an earlier version of this story.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 1st, 2021

Futures Top 4,500 As Market Meltup Accelerates

Futures Top 4,500 As Market Meltup Accelerates Over the weekend, a Goldman flow trader explained why it expected a powerful market meltup to emerge in coming days, and this time Goldman was right because after trading at 4317 just one week ago, spoos are now almost 200 points higher, rising above 4500 this morning after a powerful ramp pushed US equity futures and global markets as an upbeat profit forecast from Johnson & Johnson which boosted (get it "boosted") its Revenue and EPS guidance, added to the positive momentum in corporate earnings generated by big banks last week and helped counter concerns about elevated inflation. At 715 a.m. ET, Dow e-minis were up 183 points, or 0.52%, S&P 500 e-minis were up 22.75 points, or 0.51%, and Nasdaq 100 e-minis were up 61.75 points, or 0.40%. Treasury yields were unchanged at 1.60% and the dollar slumped to a 4 week low. In premarket trading Johnson & Johnson - whose covid vaccine will soon be "mixed and matched" with mRNA platforms - rose 1.7% after it raised its 2021 adjusted profit forecast, even as it stuck to its outlook of $2.5 billion in sales from its COVID-19 vaccine this year. Walmart rose 2% after Goldman Sachs added the world’s largest retailer to its “Americas Conviction List”. Travelers Cos Inc rose 2.7% after the property and casualty insurer beat estimates for third-quarter profit. Large-cap FAAMG names all rose between 0.3% and 0.7%. Netflix Inc rose 0.1% ahead of its quarterly results later in the day, where it is expected to report blowout guidance for subscriber growth on the back of Squid Games. Here are some of the biggest U.S. movers today: Crypto stocks in spotlight as Bitcoin continued its climb toward all-time highs, bolstered by optimism over the launch of the first Bitcoin futures exchange-traded fund in the U.S. on Tuesday Hive Blockchain (HIVE US) +1.8%, Riot Blockchain (RIOT US) +2.3%, Marathon Digital (MARA US) +0.9%, Bitfarms (BITF US) +3.9% AgEagle Aerial Systems (UAVS US) shares rise as much as 16% in U.S. premarket after the provider of drones, sensors and software entered into a definitive agreement to buy Sensefly from Parrot at a valuation of $23m in cash and stock Steel Dynamics (STLD US) +1.5% in U.S. premarket trading after it reported 3Q adj. EPS above average analyst estimate Frontline (FRO US) jumps 6.5% in U.S. premarket trading, helped by rising oil prices Apple (AAPL US) marginally higher Tuesday premarket after analysts were upbeat on the company following an event where it showcased a revamp of its MacBook Pro laptops, along with new audio products EverQuote (EVER US) shares slipped Monday postmarket after co. cut 3Q revenue outlook TaskUS (TAS US) fell 6.8% Monday postmarket after holders offered shares via Goldman Sachs, JPMorgan Markets have taken comfort from robust earnings, but also grappling with the prospect of tightening monetary policy to quell price pressures. As Bloomberg notesm, traders are waiting to see if a slate of Federal Reserve speakers this week will try to calm the jitters stemming from the scaling back of pandemic-era policy support. “The world is watching interest rates more closely than it has for some time -- and rightly so, the moves have been emphatic, especially in the short-term maturities,” Chris Weston, head of research at Pepperstone Financial Pty, wrote in a note. He added it’s “impressive how resilient and calm markets are in the face of the rates repricing.” Still, the recent bounce in the Nasdaq 100 index has failed to shoo away the bears, with net short positions on the tech-heavy benchmark higher than at the peak of the pandemic, Citigroup strategists said. J&J, P&G, Philip Morris, Netflix and United Airlines are scheduled to report today. “We’ve seen companies post some fairly decent beats,” said Michael Hewson, chief market analyst at CMC Markets in London. “While it’s been notable that most have cited concerns about rising costs, as well as supply-chain disruptions, we haven’t seen many significant profit downgrades yet.” In Europe, gains for mining companies outweighed a retreat for the travel industry, lifting the Stoxx Europe 600 Index up 0.2%. Danone dropped 2.2% in Paris after the French food giant reported sales that were overall in line with expectations, but warned of rising costs of milk, packaging and transportation. Ericsson AB fell after sales were hit by supply chain issues.  Miners and oil & gas are the strongest sectors, healthcare and travel underperform. Here are some of the biggest European movers today: Moneysupermarket.com shares climb as much as 8.9% after the British price comparison website posted its 3Q update and announced the acquisition of cashback site Quidco for GBP101m in cash. Hochschild gains as much as 6.8% after the silver miner said it plans to spin off the rare earths project it bought two years ago and list the new company in Canada. Software AG drops as much as 14%, the most since 2014, after the company cut its FY bookings growth guidance in the Digital Business segment, which analysts highlight as a negative. Bachem falls as much as 11% to CHF745 after placing 750,000 new shares at CHF778 apiece to raise CHF584m for growth. Beijer Ref trades down as much 7.2% after the cooling and heatings systems manufacturer missed analyst estimates on both sales and profit in 3Q. Earlier in the session, Asian equities gained, buoyed by a rebound in technology shares listed in Hong Kong and elsewhere in the region amid better-than-expected earnings and lower valuations. The MSCI Asia Pacific Index climbed as much as 1%, as TSMC and Alibaba provided some of the biggest boosts. The Hang Seng Tech Index rose to its highest since Sept. 13, as Chinese authorities are said to be considering opening up access for content on Tencent and ByteDance platforms to search engines such as Baidu. “Markets are currently adjusting their expectations around regulatory risks,” said Jun Rong Yeap, market strategist at IG Asia.  Most benchmarks in the region were in the green as the earnings season comforted edgy investors, who are keenly watching inflation figures, supply chain bottlenecks and China’s growth slowdown. The Asian measure crossed above a key technical level that it’s been flip-flopping around for most of 2021. Some material and energy stocks took a breather, even as supply shortages and strong demand cause a price surge for raw materials. Profits for Asian oil refiners have shot back up to pre-pandemic levels as the shortage of gas and coal sparks a rush to secure alternative supplies. “The policy misstep, which I think is unlikely, is for central banks to confuse themselves by saying there’s inflation because of us, as aggregate demand is way too strong and so let’s fix a supply chain, Covid-driven pickup in costs by tightening monetary policies,” Ajay Kapur, head emerging markets strategy at BofA Global Research told Bloomberg Television. In a notable development, China Evergrande Group’s main onshore unit paid interest due Tuesday on a yuan bond, Reuters reported, citing four people with knowledge of the matter. Japanese equities rose, powered by advances in technology stocks as cyclicals fell. Electronics makers and telecommunications providers were the biggest boosts to the Topix, which gained 0.4%. Fast Retailing and SoftBank Group were the largest contributors to a 0.7% rise in the Nikkei 225. Australian stocks snapped a 3-day winning streak as banks, miners declined. The S&P/ASX 200 index fell 0.1% to close at 7,374.90, edging lower after three consecutive days of advances. Mining stocks and banks were the biggest drags on the benchmark. Appen was among the top performers, extending gains for a fifth straight session. Chalice Mining retreated, snapping a four-day winning streak. Higher interest rates would remove some of the heat from the nation’s property market, though it would come at the cost of fewer jobs and weaker wages growth, the Reserve Bank of Australia said in minutes of its October meeting released Tuesday.  In New Zealand, the S&P/NZX 50 index rose 0.5% to 13,065.92. “We are going to get a lot of information on whether margins are being squeezed by these shortages and higher prices and wages continuing to go up,” JoAnne Feeney, Advisors Capital Management partner and portfolio manager, said on Bloomberg Television. She added the delta-plus Covid variant could be among sources of volatility in the next few months. In rates, Treasury yields fell, led by the front end; Bund yields were also lower but by less than U.S. peers. Yields are richer by 2bp-3bp across front-end of the curve, cheaper by ~1bp across long-end, with 2s10s, 5s30s spreads steeper by 2bp-3bp; 10-year is little changed at 1.597%, with bunds, gilts lagging by ~2bp. Daily ranges remain narrow while bunds and gilts underperform. Stock index futures are rising, lifting S&P 500 futures to highest level in more than a month.  In FX, the Bloomberg Dollar Spot Index plunged as the dollar steepened its losses throughout the day; the greenback fell versus all of its Group-of-10 peers and risk-sensitive antipodean and Scandinavian currencies were the best performers.  The euro advanced a fifth consecutive day against the greenback to touch an almost three-week high of $1.1663. Options suggest the euro will rise above a string of resistance levels that it faces in the spot market. Australian and New Zealand dollars both advanced to the strongest in more than a month as lower Treasury yields dragged down the U.S. currency. Australia’s sovereign bonds rebounded after minutes from the nation’s latest central bank meeting prompted a rollback of early rate-hike bets. The central bank said it is committed to maintaining a supportive policy until actual inflation is sustainably within its 2%-3% target range. The yen snapped a three-day decline aided by falling U.S. yields and as traders saw the recent losses as excessive; Japan’s 20-year debt sale drew the lowest bid-to-cover ratio since 2015. In commodities, oil gained as Russia signaled that it won’t go out of its way to offer European consumers extra gas to ease the current energy crisis unless it gets regulatory approval to start shipments through the controversial Nord Stream 2 pipeline. Spot gold rallied, clawing back half of Friday’s losses to trade near $1,780/oz. Base metals are well bid. LME nickel and tin outperform, both rising over 2%. Looking at the day ahead, and we’ll hear from an array of central bank speakers, including the BoE’s Governor Bailey, Pill and Mann, the ECB’s Rehn, Centeno, Elderson, Panetta and Lane, along with the Fed’s Daly, Barkin, Bostic and Waller. Otherwise, US Data releases including September’s housing starts and building permits, and earnings today include Johnson & Johnson, Procter & Gamble, Netflix, Philip Morris International and BNY Mellon. Market Snapshot S&P 500 futures up 0.2% to 4,488.50 STOXX Europe 600 up 0.2% to 467.87 MXAP up 1.0% to 200.25 MXAPJ up 1.2% to 658.33 Nikkei up 0.7% to 29,215.52 Topix up 0.4% to 2,026.57 Hang Seng Index up 1.5% to 25,787.21 Shanghai Composite up 0.7% to 3,593.15 Sensex up 0.5% to 62,070.31 Australia S&P/ASX 200 little changed at 7,374.85 Kospi up 0.7% to 3,029.04 Brent Futures up 0.4% to $84.63/bbl Gold spot up 1.0% to $1,782.67 U.S. Dollar Index down 0.36% to 93.61 German 10Y yield rose 4.7 bps to -0.155% Euro up 0.4% to $1.1652 Top Overnight News from Bloomberg Bank of France Governor Francois Villeroy de Galhau says there is no reason to raise rates next year as inflation will come back below ECB’s 2% target, according to France Info radio interview U.S. Treasuries, European sovereigns, U.K. gilts and emerging-market credit are all set to lose money over the 12 months through September as dwindling coupons provide little cushion against rising yields, according to forecasts from Bloomberg Intelligence. Adding to the potentially toxic environment for bonds is the prospect of major central banks unwinding debt purchases and raising interest rates U.K. Prime Minister Boris Johnson promised to find a solution to Brexit’s Northern Ireland Protocol, a sign that a compromise will be reached with the European Union in a dispute that had threatened to spiral into a trade war. Bitcoin continued its climb toward all-time highs, bolstered by optimism over the upcoming launch of the first Bitcoin futures exchange-traded fund in the U.S. by asset manager ProShares China’s property and construction industries contracted in the third quarter for the first time since the start of the pandemic, weighed by a slump in real estate China’s central bank has room to cut the amount of cash banks must hold in reserve in order to boost liquidity and support economic growth, a government adviser said Contagion effects on inflation from the recent surge in energy prices can’t be excluded, but they are not the most likely scenario, Riksbank Deputy Governor Martin Floden says in parliamentary hearing A more detailed look at global markets courtesy of Newsquawk Asian equity markets were kept afloat with the region encouraged after the mostly positive lead from US, where equity markets shrugged off the hawkish calls on global rates and big tech gained including Apple which benefitted following its hardware event. ASX 200 (-0.1%) was initially marginally higher as tech mirrored the outperformance of the sector stateside and with notable gains in property stocks, although the advances in the index were capped and upside faded ahead of resistance at the 7,400 level and due to weakness in mining-related stocks following yesterday’s cooldown in commodity prices, as well as lower production results from BHP. Nikkei 225 (+0.7%) was underpinned as exporters benefitted from favourable currency flows, while the KOSPI (+0.7%) was also firmer with the index unfazed by the latest North Korean projectile launches which were said to be ballistic missiles and therefore banned under UN Security Council resolutions. Hang Seng (+1.5%) and Shanghai Comp. (+0.7%) adhered to the upbeat mood with Hong Kong the biggest gainer in the region amid strength across a broad range of sectors aside from energy due to the recent pullback in oil and with casino names also underwhelmed by weaker Q3 Macau gaming revenue compared with the prior quarter. Finally, 10yr JGBs nursed some of yesterday’s losses after global counterparts also found reprieve from the latest bout of bond selling pressure but with the recovery only marginal amid the mostly positive risk tone and following mixed results from the 20yr JGB auction. Top Asian News Alibaba Unveils One of China’s Most Advanced Chips Secretive Body Leads Xinjiang’s AI Policing, Report Finds China’s Central Bank Should Cut RRR, Government Adviser Says China’s Curbs on Fertilizer Exports to Worsen Global Price Shock European equities (Euro Stoxx 50 +0.1%; Stoxx 600 +0.2%) trade with an upside in an attempt to claw back some of yesterday’s losses with fresh macro impulses relatively light since Monday’s close. The Asia-Pac session was predominantly firmer with indices kept afloat by the mostly positive lead from the US and performance in the tech sector. As it stands, US equity index futures are marginally firmer with performance across the majors relatively even (ES +0.4%) as markets await a slew of large-cap earnings. In terms of market commentary, JP Morgan notes that global EPS revisions remain plentiful as sell-side analysts’ global EPS upgrades continue to outnumber EPS downgrades. That said, JPM is of the view that the trend is slowing. In terms of the sector breakdown, analysts note that Defensive Sectors show improving EPS revisions, whilst Global Cyclicals sectors such as Technology, Financials, Energy, Industrials and Discretionary dominate the largest upgrades. Back to Europe, sectors are mostly firmer with outperformance in Basic Resources amid upside in underlying commodity prices. Elsewhere, Retail names also outperform peers with some of the French luxury names such as Kering, LVMH and Hermes trying to claw back some of yesterday’s post-Chinese GDP losses with the former set to release earnings after-hours. To the downside, the Telecoms sector sits in modest negative as Ericsson (-0.3%) acts as a drag post-Q3 results. In terms of individual movers, Pearson (+3.6%) stands at the top of the Stoxx 600 after being upgraded at Credit Suisse, whilst Iberdrola (+3.2%) is also a notable gainer amid news that it is to invest USD 8.3bln into a North Sea wind farm complex – its largest global investment. Laggards include Teamviewer (-4.8%) following a broker downgrade at Exane, whilst broker action has also hampered IAG (-3.5%). In terms of large cap earnings, Danone (-1%) shares are seen lower after flagging rising costs and a slowdown in sales growth. Top European News European Gas Prices Drop on Windy and Mild Weather Forecasts Most of Barclays’ U.S. Workers Now Back in Office, Staley Says Poland Escalates Rule-of-Law Dispute, Risking EU Recovery Money Goldman Sachs Investment Banker Joins Nordic Venture Fund Hadean In FX, a downbeat session for the Dollar thus far as the index retreats further from the 94.000 mark to extend the lower bound of a two-week range. There has been little in terms of fundamental catalysts to trigger the selloff as yields remain elevated (albeit off recent highs), and market sentiment remains tentative. State-side, there is a lack of developments Capitol Hill, with US President Biden stating that he is "right now" going to try for a deal with Moderate Democratic Senator Manchin, while it was separately reported that Senator Manchin said he does not see how a deal on Biden's agenda will happen by October 31st. The DXY is more interesting from a technical standpoint after falling just short of the 100 WMA (94.213) during yesterday's session to a high of 94.174 and losses exacerbated overnight by a breach of support at the 21 DMA (98.879) – with the line acting as firm support over the past three consecutive trading sessions. The next levels to the downside naturally reside at the 93.500 mark – with clean air seen until the psychological mark. Below that, the September 28th low resides at 93.360, followed by the 50 DMA at 93.242 and the 27th Sept base at 93.206. Ahead, the data docket remains light, but Fed speak is abundant, although from regulars. AUD, NZD, CAD - The antipodeans top the G10 chart, with the NZD the marked outperformer as participants mull stepper RBNZ rate hikes following yesterday's hot Kiwi CPI metrics. ANZ Bank brought forward its forecast for the RBNZ to lift the OCR to a neutral rate of 2% by August 2022 from a prior forecast of a neutral rate by the end of 2022. NZD/USD surpassed its 200 DMA - which matches the 0.7100 psychological level (vs low 0.7079). The pair now probes 0.7150 with some potential resistance seen at 0.7156 (September 10th high), 0.7167 (September 6th high), and 0.7170 (September 3rd high). The Aussie meanwhile saw a relatively mundane RBA minutes release, but the AUD optimism is likely spurred by the rebound in base metals. AUD/USD found support at its 100 DMA (0.7406) and inches closer towards 0.7450. Gains in the CAD are still somewhat hampered by the slide in crude prices yesterday; nonetheless, USD/CAD re-eyes levels last seen in July. EUR, GBP, JPY - All benefit from the softer Dollar, although the Sterling fares slightly better as BoE market pricing provides further tailwinds; markets are currently assigning a 78% probability of a 25bps hike at the November 4th confab. HBSC weighed in this morning and suggested the economic fundamentals do not appear to have changed sufficiently to warrant the recent market move, with market pricing looking too aggressive given the balance of supply and demand in their view. This followed GS and JPM reeling in their BoE hike forecasts yesterday. GBP/USD extends upside above 1.3800 and topped its 100 DMA situated at 1.3809. On the UK docket, BoE’s Mann and Chief Economic Pill could provide some more meat on the bones following Governor Bailey’s weekend remarks. EUR/USD was bolstered above its 21 DMA (1.1620) and posts gains north of 1.1650 at the time of writing, with the pair also eyeing chunky OpEx with EUR 1.3bln between 1.1600-15 and EUR 581mln between 1.1670-75. EUR/GBP meanwhile tests 0.8450 to the downside from a current 0.8463 high. USD/JPY has pulled back after failing to breach resistance just ahead of the 114.50 mark, with the softer Buck bringing the pair back towards the 114.00 ahead – with Friday's base at 113.63. In commodities, WTI and Brent front-month futures are nursing yesterday’s wounds and prices remain elevated despite a lack of fresh catalysts and with the macro landscape little changed as of late. The themes remain a) OPEC+ supply, b) supply crunch in the natural gas, LNG, electricity, and coal markets and c) winter demand. Elsewhere, the White House said it is continuing to press OPEC members to address the oil supply issue and is also addressing logistics of supply. Furthermore, the White House will use every lever at its disposal and the FTC is also looking at possible price gouging. WTI Nov extends gains above USD 83/bbl (vs 82.05/bbl low) while Brent Dec aims at USD 85/bbl (vs low 83.83/bbl). Elsewhere, metals have been spurred by the retreat in the Dollar, with spot gold topping its 50 DMA (1,778/oz) after testing its 21 DMA (1,760/oz) overnight, with the yellow metal also seeing its 200 and 100 DMAs at 1,793/oz and 1,794/oz respectively. Over to base metals, Dalian iron ore futures snapped a four-day losing streak, with iron ore shipments departing from Australia and Brazil lower W/W according to Mysteel data. Copper prices meanwhile are buoyed with the LME future holding onto comfortable gains north of USD 10k/t. US Event Calendar 8:30am: Sept. Building Permits MoM, est. -2.4%, prior 6.0%, revised 5.6% 8:30am: Sept. Housing Starts MoM, est. -0.2%, prior 3.9% 8:30am: Sept. Building Permits, est. 1.68m, prior 1.73m, revised 1.72m 8:30am: Sept. Housing Starts, est. 1.61m, prior 1.62m DB's Jim Reid concludes the overnight wrap At home we have recently bought a wooden bench for our kitchen table with the names of our three kids carved into the seats. We are pretty confident that there’ll be no need for more names. The problem was though that we chose an elegant, flamboyant font. The twins have just started to learn how to recognise and write their own names with the school having a very strict letter formation. As such last night when we were discussing it, young James refused to accept that this was his name on the bench and was hysterical with anger screaming that the bench needed to go as it was wrong. He kept on shouting “that’s not my name”. Nothing could persuade him otherwise. I thought I was defusing the situation by playing the famous Ting Tings song “that’s not my name” on the kitchen speakers but this just made matters far worse just before bedtime. So if anyone wants a bench with Edward, Maisie and James carved into it let me know as it’s causing a lot of grief at home. It seems like rate hikes are increasingly being carved into markets at the moment as Bank of England Governor Bailey’s hawkish Sunday comments that we discussed yesterday set the tone for the last 24 hours. Rates opened very weak across the globe but a similar pattern broke out to that seen over the last couple of weeks where higher yields have either brought in fresh bond buyers or markets have decided that the higher rate story is enough of a potential risk-off or negative growth story that dip buying mentality sets in. So yields have been a bit 3 steps higher, two steps lower over the last couple of weeks even though the inflation data has been largely one way higher. It was the UK that saw the most seismic shifts yesterday after Governor Bailey’s comments, with yields on 2yr UK gilts (+13.1bps) seeing their biggest daily move higher since August 2015, and the 2s10s curve (-9.8bps) flattening by the most since the height of the pandemic in March 2020. Markets are now pricing in a move in the Bank Rate up to around 0.45% by the December meeting (from 0.1%), and up to around 0.95% by the June meeting, around 15-30bps more priced in across the next several meetings from Friday’s close. So tomorrow’s CPI release from the UK will be interesting in light of this but it will likely be the calm before the storm given favourable base effects and with other pipeline inflation items yet to feed into the data. You can get a sense of how the UK is moving much faster than others in its rate hike pricing in that the spread between 2yr gilts and treasury yields is now at its widest in favour of gilt yields since late 2014. Yields on shorter maturities saw the most sustained movement elsewhere as well as investors began to anticipate imminent rate hikes. In fact, by the close of trade yesterday, markets were just shy of pricing in 2 Fed hikes by the end of 2022, which is some way ahead of the Fed’s dot plot from last month, when half the members didn’t see any hikes until at least 2023. Indeed, December 2022 Eurodollar futures have increased some 40 basis points over the last month, whilst September 2022 futures have increased more than 20 basis points. 10yr Treasury yields climbed +3.0 to 1.600%, with the rise entirely driven by higher real yields (+4.6bps). They were at 1.625% at the session highs, though. Those movements were echoed in the Euro Area, although the main difference to the US and the UK was that higher inflation breakevens rather than real rates drove the moves higher in yields. By the close of trade, yields on 10yr bunds (+2.1bps), OATs (+2.2bps) and BTPs (+3.0bps) had all moved higher even if again a few bps off the highs for the session. On the inflation side, the 10yr German breakeven hit a post-2013 high of 1.85%, just as the 5y5y forward inflation swap for the Euro Area was up +4.5bps to 1.91%, its highest closing level since 2014. The prospect of faster rate hikes put a dampener on equities, especially earlier in the day, though the S&P 500 (+0.34%) recovered to close just -1.13% beneath its all-time closing high from early September. Cyclical industries led the index higher, with the FANG+ index of megacap tech stocks (+1.99%) seeing a strong outperformance as all but 1 of its 10 constituents moved higher on the day. It was a different story in Europe however, where the STOXX 600 fell -0.50% in line with the losses elsewhere on the continent. At the sectoral level, energy was the outperformer in Europe but faded into the US close. After 8 successive weekly advances for WTI oil prices, yesterday saw it hit fresh multi-year highs (again…) intraday, gaining as much as +1.89% during the London session. However WTI made an about turn after the London close, and ultimately finished only slightly higher (+0.19%) on the day. Elsewhere, Bitcoin increased +3.31% yesterday and is up another +1.95% this morning to $62,564, bringing it within 1.5% of its own all-time closing high back in April and 3.6% beneath its all-time intraday high. The cryptocurrency has rallied in recent weeks as news picked up that the first US bitcoin ETF would be approved. Later today the ProShares ETF is expected to start trading, offering US retail investors a new avenue to trade the world’s largest cryptocurrency. The ETF will offer exposure to bitcoin futures contracts rather than “physical” bitcoin. Stocks are trading higher in Asia overnight, with the Hang Seng (+1.30%), CSI (+1.01%), Shanghai Composite (+0.74%), the Nikkei (+0.73%) and the KOSPI (+0.61%) all advancing thanks to an outperformance from technology stocks. For now at least, positive earnings are outweighing the impact from the prospect of faster than expected interest rate hikes. However, the issues stemming from Evergrande will continue to remain in focus as the developer has a Yuan bond interest due today. Outside of Asia, futures are pointing towards modest gains at the open, with those on the S&P 500 (+0.06%) and the DAX (0.11%) moving higher. Turning to the pandemic, the continued decline in global cases over the last couple of months and the lack of new variants has rather taken it off the front business pages of late. That said, there were a few concerning indications yesterday when it came to the health picture. Firstly, China is dealing with a fresh cluster in its northwestern provinces, with further positive tests reported overnight. Second, there are signs that we could be facing a more severe flu season as we approach winter in the northern hemisphere, with the Walgreens Boots Alliance reporting that flu cases are 23% higher in the US relative to a year ago. Third, there were some questions from the UK, as former US FDA Commissioner Scott Gottlieb wrote on Twitter on Sunday that given the recent rise in UK cases and the “delta-plus” variant, that there should be “urgent research” to discover if it was more transmissible or had partial immune evasion. Finally, New Zealand (which had been pursuing a zero-Covid strategy in the past) reported a record 94 cases yesterday as Auckland remains in lockdown. There wasn’t a massive amount of data yesterday, though US industrial production fell -1.3% in September (vs. +0.1% expected), and the August number was also revised down half a percentage point to now show a -0.1% contraction. Partly that was thanks to the continuing effects of Hurricane Ida, which contributed around 0.6 percentage point of the overall drop in production, but the contraction also reflected supply-chain issues (eg auto chip shortages). Otherwise, the NAHB housing market index for October unexpectedly rose to 80 (vs. 75 expected). To the day ahead now, and we’ll hear from an array of central bank speakers, including the BoE’s Governor Bailey, Pill and Mann, the ECB’s Rehn, Centeno, Elderson, Panetta and Lane, along with the Fed’s Daly, Barkin, Bostic and Waller. Otherwise, US Data releases including September’s housing starts and building permits, and earnings today include Johnson & Johnson, Procter & Gamble, Netflix, Philip Morris International and BNY Mellon. Tyler Durden Tue, 10/19/2021 - 07:50.....»»

Category: dealsSource: nytOct 19th, 2021

BlackBerry Reports Second Quarter Fiscal Year 2022 Results

Revenue exceeds expectations and Company adds deep cybersecurity industry experience to drive growth - Total company revenue of $175 million. - IoT revenue of $40 million. - Cyber Security revenue of $120 million. - Licensing & Other revenue of $15 million. - Positive operating cash flow of $12 million. - Non-GAAP loss per basic and diluted share of $0.06; GAAP loss per basic and diluted share of $0.25. A non-cash accounting adjustment to the fair value of the convertible debentures, as a result of market and trading conditions, accounts for approximately $0.12 of GAAP loss per share. WATERLOO, ON, Sept. 22, 2021 /PRNewswire/ -- BlackBerry Limited (NYSE:BB, TSX:BB) today reported financial results for the three months ended August 31, 2021 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated). "Revenue for all businesses beat expectations this quarter.  The Cyber Security business unit delivered robust sequential billings and revenue growth and the IoT business unit performed well in the face of global chip shortage pressures," said John Chen, Executive Chairman & CEO, BlackBerry. "We are already seeing benefits from establishing the two key business units and are delighted to appoint John Giamatteo as President of Cyber Security.  Giamatteo, who was previously President and Chief Revenue Officer at McAfee, adds leading industry expertise. In IoT, design activity for our QNX products remains very strong, demonstrating both our industry leadership position and secular trends, such as ECU consolidation. In Cyber Security we received strong third-party validation of the effectiveness of our AI-driven, prevention-first suite of products, illustrating progress made with recent product launches." Second Quarter Fiscal 2022 Financial Highlights Total company revenue for the second quarter of fiscal 2022 was $175 million. Total company non-GAAP gross margin was 65% and GAAP gross margin was 64%. IoT revenue for the second quarter of fiscal 2022 was $40 million, with gross margin of 83% and ARR of $89 million. Cyber Security revenue for the second quarter of fiscal 2022 was $120 million, with gross margin of 59% and ARR of $364 million. Licensing and Other revenue for the second quarter of fiscal 2022 was $15 million as negotiations for the sale of a portion of the patent portfolio continue. Gross margin was 60%. Non-GAAP operating loss was $30 million. GAAP operating loss was $141 million, primarily due to a non-cash accounting adjustment to the fair value of the convertible debentures, resulting from market and trading conditions, of $67 million. Non-GAAP loss per share was $0.06 (basic and diluted). GAAP loss per share was $0.25 (basic and diluted). Total cash, cash equivalents, short-term and long-term investments were $772 million. Net cash generated from operating activities was $12 million. Business Highlights & Strategic Announcements BlackBerry has design wins with 24 of the world's leading 25 Electric Vehicle (EV) automakers. This has increased from 23 of the top 25 last quarter following an EV win with Daimler. BlackBerry IVY™ to deliver highly secure vehicle-based payments, leveraging direct access to vehicle sensor data and edge processing to create a "digital fingerprint". Delivered through a partnership with Car IQ. Nobo Technologies selects BlackBerry QNX® Neutrino® as foundation for new Digital Cockpit Controller for Great Wall Motors' Haval G6S SUV. Great Wall Motors is China's largest producer of SUV vehicles. sTraffic, Korea's leading solution developer for transportation infrastructure systems, selects QNX® OS for Safety as the foundation for their train traffic management system that includes unmanned train operations. BlackBerry launches BlackBerry® Jarvis 2.0® composition analysis tool. Delivered as a more user-friendly SaaS offering, Jarvis 2.0 empowers OEMs to validate and ensure the quality of their multi-tiered software bill of materials. BlackBerry awarded highest AAA rating by SE Labs in breach test of BlackBerry® Protect (EPP) and BlackBerry® Optics (EDR). The breach test adopted a range of real-world hacker tactics and BlackBerry's AI-driven products delivered complete prevention and detection with zero false positives. BlackBerry® UEM integrates with Microsoft 365, delivering BlackBerry's industry-leading security to Microsoft's productivity products. BlackBerry® AtHoc® critical event management platform used as foundation for autonomous flood risk and clean water monitoring solution. BlackBerry updates SecuSUITE capabilities to protect group phone calls and messages for governments and businesses from high risk eavesdropping. Appointment of New Cyber Security Business Unit PresidentBlackBerry has appointed John Giamatteo as President of the Cyber Security business unit.  With this strategic hire the company adds significant industry experience. Giamatteo will join the company on October 4th and report to Executive Chairman and CEO John Chen.  He will be responsible for business unit strategy, engineering, and go-to-market. Giamatteo brings to BlackBerry over 30 years of experience with technology companies. Most recently he served as President and Chief Revenue Officer of McAfee, where he was responsible for sales, marketing, and customer success.  During his time with McAfee, he delivered strong double-digit growth across its Enterprise, SMB and Consumer businesses as well as significant margin expansion across the portfolio.  Prior to that he served as Chief Operating Officer at AVG Technologies, a leading provider of Internet and mobile security. Giamatteo also held leadership positions with Solera Holdings, RealNetworks, Inc. and Nortel Network Corporation. "I'm excited to be joining BlackBerry and to be leading the Cyber Security business unit.  Never has the threat of cyberattacks been higher, nor more in the minds of management," said Giamatteo. "BlackBerry's AI-driven, prevention-first technology is well placed to scale to meet the constantly evolving cybersecurity needs of companies everywhere.  I'm very positive about the opportunities that we have as a company." Tom Eacobacci, BlackBerry's President and COO, has decided to pursue other opportunities and will leave the Company on October 29th.  BlackBerry thanks Tom for his hard work and contributions in his time at the Company. OutlookBlackBerry will provide fiscal year 2022 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website and on SEDAR. Use of Non-GAAP Financial MeasuresThe tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the company to comparable U.S. GAAP measures and an explanation of why the company uses them. Conference Call and WebcastA conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed by dialing +1 (877) 682-6267 or by logging on at BlackBerry.com/Investors. A replay of the conference call will also be available at approximately 8:30 p.m. ET by dialing +1 (800) 585-8367 and entering Conference ID #6149337 and at the link above. About BlackBerryBlackBerry (NYSE:BB, TSX:BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including more than 195M vehicles.  Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems.  BlackBerry's vision is clear - to secure a connected future you can trust. BlackBerry. Intelligent Security. Everywhere.  For more information, visit BlackBerry.com and follow @BlackBerry.   Investor Contact:BlackBerry Investor Relations+1 (519) 888-7465investor_relations@blackberry.com Media Contact:BlackBerry Media Relations+1 (519) 597-7273mediarelations@blackberry.com This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives including its expectations with respect to increasing and enhancing its product and service offerings.  The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, the ongoing COVID-19 pandemic, competition, and BlackBerry's expectations regarding its financial performance.  Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; the failure or perceived failure of BlackBerry's solutions to detect or prevent security vulnerabilities; the impact of the COVID-19 pandemic; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; BlackBerry's dependence on its relationships with resellers and channel partners; litigation against BlackBerry; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry's ability to obtain rights to use third-party software and its use of open source software; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry being found to have infringed on the intellectual property rights of others;  the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; BlackBerry's indebtedness; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; regulations regarding health and safety, hazardous materials usage and conflict minerals; acquisitions, divestitures and other business initiatives; foreign operations, including fluctuations in foreign currencies; the fluctuation of BlackBerry's quarterly revenue and operating results; the volatility of the market price of BlackBerry's common shares; adverse economic, geopolitical and environmental conditions. These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form    10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. BlackBerry has no intention and undertakes no 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.   BlackBerry Limited Incorporated under the Laws of Ontario (United States dollars, in millions except share and per share amounts) (unaudited) Consolidated Statements of Operations  Three Months Ended Six Months Ended August 31, 2021 May 31, 2021 August 31,2020 August 31, 2021 August 31, 2020 Revenue $ 175 $ 174 $ 259 $ 349 $ 465 Cost of sales 63 60 60 123 123 Gross margin 112 114 199 226 342 Gross margin % 64.0 % 65.5 % 76.8 % 64.8 % 73.5 % Operating expenses Research and development 58 57 57 115 114 Selling, marketing and administration 83 73 79 156 169 Amortization 45 46 46 91 92 Impairment of goodwill — — — — 594 Impairment of long-lived assets — — 21 — 21 Debentures fair value adjustment 67 (4) 18 63 19 253 172 221 425 1,009 Operating loss (141) (58) (22) (199) (667) Investment loss, net (1) (2) (5) (3) (5) Loss before income taxes (142) (60) (27) (202) (672) Provision for (recovery of) income taxes 2 2 (4) 4 (13) Net loss $ (144) $ (62) $ (23) $ (206) $ (659) Loss per share Basic $ (0.25) $ (0.11) $ (0.04) $ (0.36) $ (1.18) Diluted $ (0.25) $ (0.11) $ (0.04) $ (0.36) $ (1.18) Weighted-average number of common shares outstanding (000s) Basic 568,082 567,358 558,882 567,724 558,365 Diluted 568,082 567,358 558,882 567,724 558,365 Total common shares outstanding (000s) 566,995 566,248 556,468 566,995 556,468   BlackBerry Limited Incorporated under the Laws of Ontario (United States dollars, in millions) (unaudited) Consolidated Balance Sheets As at August 31, 2021 February 28, 2021 Assets Current Cash and cash equivalents $ 291 $ 214 Short-term investments 416 525 Accounts receivable, net of allowance of $9 and $10, respectively 121 182 Other receivables 23 25 Income taxes receivable 9 10 Other current assets 50 50 910 1,006 Restricted cash equivalents and restricted short-term investments 27 28 Long-term investments 38 37 Other long-term assets 13 16 Operating lease right-of-use assets, net 57 63 Property, plant and equipment, net 44.....»»

Category: earningsSource: benzingaSep 22nd, 2021

Wesana Health Reports Q3 2021 Financial Results

CHICAGO and TORONTO, Nov. 29, 2021 (GLOBE NEWSWIRE) -- Wesana Health Holdings Inc. ("Wesana" or the "Company") (CSE:WESA, OTCQB:WSNAF), a data driven life sciences company, has announced its quarterly financial results for the three- and nine-month period ending September 30, 2021. Q3 2021 Highlights Ended the third quarter with US$11,266,187 in cash Completed the acquisition of PsyTech and related transactions, launching Care Delivery as a new business segment consisting of Wesana Solutions, Wesana Clinics and PsyTech Connect Committed US$1.5mm in funding to Multidisciplinary Association for Psychedelic Studies ("MAPS") to work towards developing a partnership agreement on the research of the application of MAPS' psychedelic-assisted therapy programs towards the treatment of Traumatic Brain Injury ("TBI") Wesana was included as a core component of the AdvisorShares Psychedelics ETF Chad Bronstein, Executive Chairman of Wesana Health Commented: "The third quarter marked a number of important strategic developments for Wesana Health, including the PsyTech acquisition. Through the acquisition of PsyTech we have been able to expand our patient reach and overall patient impact through the addition of Care Delivery as a business segment. Notably, the Care Delivery segment, highlighted by the two flagship clinics in Chicago, provides key clinical protocols for Wesana to use as a base for greenfield expansion in addition to a network of acquisition targets through PsyTech Connect. The Care Delivery segment also provides an important future conduit to test Wesana's psychedelic drug development program having recently surpassed 4,000 administered ketamine treatments at the clinics level since inception. Additionally, we are incredibly pleased with our funding commitment to MAPS to work towards a partnership agreement. Assuming we can achieve successful partnership discussions, a research collaboration with MAPS could accelerate Wesana's timing to market on MDMA therapy for the treatment of TBI. We believe Wesana is ending the most recent quarter in a position of strength and expect that our continuous strategic investments in people, assets and capabilities will continue to deliver value to our expanding patient base." Selected Consolidated Financial Information The following table sets forth selected financial information derived from the Company's unaudited condensed interim combined and consolidated financial statements for the three- and nine-months ended September 30, 2021. The following information should be read in conjunction with the financial statements and the accompanying management's discussion and analysis ("MD&A"), which are available on the Company's website at www.wesanahealth.com and under the Company's SEDAR profile at www.sedar.com. For the three months ended ($USD) Sept 30, 2021 Dec 31, 2020 Change Cash Balance 11,266,187 1,266,781 9,999,406 Total Assets 36,284,015 1,267,293 31,016,722 Total Equity 33,671,164 63,181 33,607,983 Weighted Average Shares Outstanding 14,394,323 4,775,997 9,618,326 Fully Diluted Shares Outstanding (as converted*) 39,919,613 4,775,997 35,143,616 *The number is presented assuming all of the Company's outstanding Proportionate Subordinate Voting Shares and Super Voting Shares as at September 30, 2021 are converted into Subordinate Voting Shares and all of the Company's other outstanding convertible, exchangeable and exercisable securities as at September 30, 2021 are converted, exchanged or exercised in accordance with their terms. PsyTech Acquisition and Launch of the Care Delivery Segment On September 8, 2021, the Company completed the acquisition (the "PsyTech Acquisition") of Psychedelitech Inc. ("PsyTech") and the acquisition of Advanced Psychiatric Management LLC. Such acquisitions added three components that expanded the Company's business into Care Delivery: •       Wesana Clinics – Wesana Clinics is a chain of psychiatrist-led mental health clinics focused on delivering psychiatric care, inclusive of ketamine therapy, while also preparing for the delivery of other psychedelic therapies as they become available. The Wesana clinical network currently includes two flagship clinics located in Illinois with another under development contemplated to open in the first quarter of 2022. See "Cautionary Note Regarding Forward-Looking Information" below. •       Wesana Solutions – Wesana Solutions is a clinical software platform focused on improving mental healthcare through facilitating access to clinical protocols and tracking their efficacy. In concert with electronic medical records and practice management systems, Wesana Solutions is intended to be used in clinics delivering psychedelics and related therapies, targeting the developing international psychiatric clinic and research market, with initial clinical deployment to be focused on the United States. Wesana Solutions is contemplated to begin clinical deployment in the first quarter 2022 and will help Wesana gather and process neurological data about patient response to various compounds and protocols under investigation. See "Cautionary Note Regarding Forward-Looking Information" below. •        PsyTech Connect – PsyTech Connect is a community for the clinical use ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaNov 29th, 2021

The Queen"s Health Systems launches new website

The enhanced website features streamlined navigation so users can find the health care services they need more readily......»»

Category: topSource: bizjournalsNov 24th, 2021

Medtronic"s (MDT) Q2 Earnings Beat, Revenues Lag Estimates

Medtronic (MDT) cuts revenue growth guidance for the full year on the projection of a severe pandemic impact to continue through the rest of the year. Medtronic plc MDT reported second-quarter fiscal 2022 adjusted earnings per share (EPS) of $1.32, which beat the Zacks Consensus Estimate by 3.1%. Adjusted earnings surged 29.4% from the year-ago adjusted figure. Currency-adjusted EPS came in at $1.28 for the quarter.Without certain one-time adjustments — including certain amortization and restructuring expenses and acquisition-related gains among others — GAAP EPS was 97 cents, reflecting a 169.4% surge from the year-ago reported figure.Total RevenuesWorldwide revenues in the reported quarter grossed $7.85 billion, up 2% on an organic basis (excluding the impacts of currency) and 2.6% on a reported basis. The top line, however, lagged the Zacks Consensus Estimate by 1%.In the quarter under review, U.S. sales (51% of total revenues) fell 1% year over year on a reported basis to $3.99 billion. Non-U.S. developed market revenues totaled $2.48 billion (32% of total revenues), depicting a 1% improvement on a reported basis (up 2% on an organic basis).Emerging market revenues (17% of total revenues) amounted to $1.37 billion, up 20% on a reported basis (up 16% organically).Segment DetailsThe company currently generates revenues from four major segments, namely Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio, and Diabetes.In the fiscal second quarter, Cardiovascular revenues rose 3% at CER to $2.83 billion, reflecting mid-single-digit organic growth in Coronary & Peripheral Vascular (CPV) and low-single-digit organic growth in Cardiac Rhythm & Heart Failure (CRHF) and Structural Heart & Aortic (SHA). CRHF sales totaled $1.47 billion, up 2.8% year over year at CER. Revenues from SHA were up 2% at CER to $750 million. CPV revenues were up 6.3% at CER to $606 million.Medtronic PLC Price, Consensus and EPS Surprise Medtronic PLC price-consensus-eps-surprise-chart | Medtronic PLC QuoteIn Medical Surgical, worldwide sales totaled $2.29 billion, unchanged year over year at CER. The quarter registered high-single-digit organic growth in Surgical Innovations (SI), partially offset by low double-digit organic declines in Respiratory, Gastrointestinal & Renal (RGR). Excluding the impact of ventilator sales declines, Medical Surgical revenues increased 6% organically.In Neuroscience, worldwide revenues of $2.14 billion were up 3% year over year at CER, driven by high-single-digit growth in Specialty Therapies and mid-single-digit growth in Neuromodulation, partially offset by low-single-digit decline in Cranial & Spinal Technologies (CST), all on an organic basis.Revenues at the Diabetes group rose 1% at CER to $585 million. Durable insulin pumps grew in the low-twenties, including high-teens growth in the United States and low-twenties growth in international markets on the continued launches of the MiniMed 770G and MiniMed 780G systems, respectively. However, this was offset by high-single digit sales decline in consumables.MarginsGross margin in the reported quarter expanded 355 basis points (bps) to 68.2% on an 8.3% rise in gross profit to $5.35 billion. Adjusted operating margin expanded 396 bps year over year to 26.2%. Selling, general and administrative expenses rose 0.6% to $2.62 billion. Research and development expenses increased 5.8% to $676 million.GuidanceMedtronic has updated its fiscal 2022 financial guidance.Considering the greater-than-expected market impact of the pandemic and healthcare system staffing challenges in the fiscal second quarter, which is expected to continue into the second half of fiscal 2022, Medtronic now expects fiscal 2022 organic revenue growth of 7-8% compared with the prior expectation of approximately 9%. Considering the current foreign exchange rate, fiscal 2022 revenues are now expected to be positively impacted by $0 to $50 million compared with the earlier expectation of a positive impact of $100 to $200 million.The Zacks Consensus Estimate for the company’s fiscal 2022 worldwide revenues is pegged at $32.93 billion.The full-year adjusted EPS guidance, however, has been reiterated in the range of $5.65 to $5.75 including an estimated 5 to 10 cents positive impact from foreign exchange. The Zacks Consensus Estimate for the year’s adjusted earnings is $1.28.Our TakeMedtronic’s second-quarter fiscal 2022 earnings beat the Zacks Consensus Estimate while revenues missed the mark. The sluggish top-line results reflected the unfavorable market impact of COVID-19 and health system labor shortages on medical device procedure volumes, primarily in the United States. In the quarter, Respiratory Interventions decreased in the mid-thirties, with sales of ventilators declining in the mid-fifties as demand returns to pre-pandemic levels. The company had to decline its revenue guidance for the full year on a projection of severe pandemic impact to continue through the rest of the year.On a positive note, the company registered organic growth in the Cardiovascular, Neuroscience and Diabetes segments. Within Cardiovascular, CRHF, CPV and SHA each registered organic growth. The quarter’s gross and operating margins showed improvements on a year-over-year basis.Zacks Rank and Key PicksThe company currently carries a Zacks Rank #4 (Sell).A few better-ranked stocks in the broader medical space that have announced quarterly results are Thermo Fisher Scientific Inc. TMO, Medpace Holdings, Inc. MEDP and AmerisourceBergen ABC.Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Thermo Fisher’s revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed estimates in the trailing four quarters, the average surprise being 9.02%.Medpace, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.Medpace has an estimated long-term growth rate of 16.4%. The company surpassed estimates in the trailing four quarters, the average surprise being 11.9%.AmerisourceBergen, carrying a Zacks Rank #2, reported fourth-quarter fiscal 2021 adjusted EPS of $2.39, which beat the Zacks Consensus Estimate by 1.27%. Revenues of $58.91 billion outpaced the consensus mark by 3.9%.AmerisourceBergen has an estimated long-term growth rate of 11.3%. The company surpassed estimates in the trailing four quarters, the average surprise being 5.48%. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report AmerisourceBergen Corporation (ABC): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 23rd, 2021

New sub, frigates, and aircraft carriers: How the UK navy is modernizing with plans for a "Global Britain"

The Royal Navy has added two carriers and plans to build 13 frigates and four ballistic-missile subs, all to support plans for global operations. An F-35 takes off from HMS Queen Elizabeth, August 2021.British Royal Navy/POPhot Jay Allen The UK plans boost to its naval fleet with 13 new frigates and four ballistic-missile submarines Aircraft carrier HMS Queen Elizabeth returning home after strike group deployment in Indo-Pacific. The new ships, new weapons, and new missions are part of the plan to be a "Global Britain." The UK Royal Navy is undergoing its biggest revamp in a generation. But its new First Sea Lord Vice-Adm. Sir Ben Key will have his work cut out as the country aims to boost its sea power.Key took the helm of the 30,000-sailor Royal Navy last month, after overseeing the UK's evacuation effort in Afghanistan in the aftermath of the Taliban's quick military victory over Kabul's government in August.New additions to the fleet include five Type 31 frigates, eight Type 26 "submarine hunters" and a four Dreadnought class ballistic submarines, named after the famous World War I battleship. One will be called HMS Dreadnought and the others will be named King George VI, Valiant and Warspite.These come in addition to two new aircraft carriers, HMS Queen Elizabeth, the Royal Navy's largest warship, and HMS Prince of Wales.The groundwork for the fleet's modernisation had been laid by Key's predecessor, Adm. Tony Radakin, who is to become the next chief of the defence staff.Radakin had pushed hard to speed up procurement procedures and harness the use of artificial intelligence in defence systems. This came amid the recent overhaul of the UK's defence policy.Sailors aboard a British Royal Navy Trafalgar-class submarine.Royal NavyBut with the Dreadnought project not due for delivery until the 2030s, and the frigates still being built, new security challenges, along with post-Brexit global ambitions, could still see the Royal Navy spread too thin."The Royal Navy is in better shape than 10 years ago with two large aircraft carriers, but in the short-term, we are overstretched," said Pete Sandeman, naval analyst and director of the website Navy Lookout."There is a lot of talk about the Indo-Pacific tilt, but we are still up to our neck with the Russians."The UK government published its post-Brexit defence strategy, the "Integrated Review of Security, Defence, Development and Foreign Policy: Global Britain in a Competitive Age," last March.Billed as the biggest review of the UK's defence and security since the end of the Cold War, it set out the UK's approach to the expected challenges of the next decade.The Royal Navy hailed the new strategy as meaning "new ships, more ships, new weapons, new technologies, new missions" to meet the ambitions of "Global Britain."The review, however, only named Russia as a specific threat to the UK, disappointing some China hawks in the government who would like to see a stronger British maritime presence in the Indo-Pacific region."It was clear about national priorities and regional resource allocation which helps planning — in terms of delivering a joint integrated coherence — it moved strategic thinking forward on those points," said Sidharth Kaushal, a research fellow at Royal United Services Institute and an expert in sea power.HMS Prince of Wales embarked with F-35s, September 2021.British Royal NavyIt did however describe a "tilt to the Indo-Pacific." The first deployment of the roughly £3 billion (US$4 billion) HMS Queen Elizabeth aircraft carrier and its strike group to the region this summer was designed to send a strong diplomatic signal of the UK government's intent. HMS Prince of Wales is also due to become fully operational by next year.In September, Defence Secretary Ben Wallace officially cut the first steel for the HMS Venturer, the first of five Type 31 frigates to be built in Scotland at a cost of £250 million per vessel. The frigates will serve to detect illegal activities at sea, gather intelligence and provide humanitarian aid, the UK government said.A month later, the Royal Navy revealed that the first of eight Type 26 frigates, HMS Glasgow, being built in the city of its name, was sufficiently ready to start assigning sailors. The frigates are being billed as the world's most advanced submarine hunters.Earlier this month, another £100 million maritime electronic warfare upgrade was announced to boost the navy's defences as Russia develops more effective electronic weaponry.Indeed, growing tensions with Russia, from Moscow's support for Belarus, Russian troop build-up near Ukraine's border and its 2014 annexing of Crimea, are among top concerns for the UK and Nato.HMS Defender makes on the River Clyde in Glasgow, Scotland, March 22, 2019.Jeff J Mitchell/Getty ImagesIn June, the UK's HMS Defender, a Type 45 destroyer equipped with anti-ship and anti-submarine weapons, undertook a freedom of navigation patrol in the Black Sea, near Crimea. Russia claimed to have fired warning shots near the ship.The UK said its ship was making innocent passage through Ukraine's territorial waters.However, a few days after the incident, secret documents relating to the HMS Defender's passage were discovered at a bus stop in Kent that apparently revealed the Royal Navy's plan to test Russia's reaction.HMS Defender then sailed to the Philippine Sea, where it joined HMS Queen Elizabeth and its F-35B fighter jets, along with a Dutch frigate and a US destroyer.—Royal Navy (@RoyalNavy) June 29, 2021Despite the hype, the Royal Navy strike group's maiden deployment, which included passage through the South China Sea, occurred without incident.That was until Wednesday, when one of the carrier's US$135 million F-35B jets crashed in the Mediterranean Sea during a routine operation on the ship's return voyage. The pilot ejected safely.In an interview with Sky News earlier this month, Commodore Steve Moorhouse, commanding officer of the UK Carrier Strike Group, said the frigates and helicopters operating with HMS Queen Elizabeth were able to locate Chinese submarines, allowing the UK's largest warship to steer clear."In that sort of cat-and-mouse type game, I am absolutely clear they are turning away at ranges where they are probably using us to facilitate their own training in the same way that we would do it towards them. So it wasn't causing us a concern," he said.An F-35B launches from HMS Queen Elizabeth, June 18, 2021.Royal Navy/LPhot Unaisi LukeThe carrier then engaged in a string of multinational exercises, clearly aimed at Beijing — including one with the US, Australia, Japan, New Zealand and South Korea.Sandeman said despite reports of leaking, the ship has proved remarkably reliable, although it doesn't yet have enough of its own F-35B jets and is reliant on the United States."It's a good sign we can integrate them (the US jets), but it's taking a long time to build our own," he said.The UK plans to have 48 of the jets by 2025. It had 24 F-35Bs before Wednesday's crash.Two offshore patrol ships, HMS Spey and HMS Tamar, left the UK in September on a five-year mission and are now in Hawaii heading out to the Indo-Pacific region where they are expected to venture as far north as the Bering Sea and as far south as New Zealand.—Commander UK Carrier Strike Group (@smrmoorhouse) November 13, 2021These ships are more designed to be the UK and Nato's eyes and ears in the region, designed not for conflict but for anti-narcotic and anti-piracy activities."They would not be competent against the Chinese navy by any means," Kaushal said."They can also advise and assist missions but it's not committing the navy's higher standard vessels to the region."Kaushal said the UK's naval strategy was more to assist its allies with technological backup, such as the nuclear-powered submarines being built for Australia as part of the new Aukus defence alliance that's seen as an attempt to contain China.Even if China was to invade Taiwan, he said it was unlikely the Royal Navy would get involved."I don't imagine us getting involved if Taiwan were to become a hot war.""One, the US has no commitment to do so, and second the Royal Navy is not really trained for a Taiwan Strait crisis. I don't doubt it would support the US diplomatically and financially. But I don't think it will become a belligerent force."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 22nd, 2021

Evogene Reports Third Quarter 2021 Financial Results

REHOVOT, Israel, Nov. 17, 2021 /PRNewswire/ -- Evogene Ltd. (NASDAQ:EVGN) (TASE: EVGN), a leading computational biology company targeting to revolutionize life-science product discovery and development across multiple market segments, announced today its financial results for the first nine months and the third quarter of 2021, ended September 30, 2021. Mr. Ofer Haviv, Evogene's President and Chief Executive Officer, stated, "I am very pleased with the overall progress and achievement of milestones we see across the board in our subsidiaries and in Evogene itself. Our subsidiaries are progressing according to plan, and we expect to hit additional milestones in the coming months. With this rapid progress, we see significant inherent value developing within each of our subsidiaries. "As stated previously, we believe that each subsidiary, valued independently, would result in a far greater combined market value for Evogene. In this regard, we wish to unlock the value of our subsidiaries and, as disclosed, are currently examining the possibility of turning one or more of our subsidiaries into public companies. This would allow investors access to the specific subsidiary of interest and the opportunity for the markets to assign it an independent value. We are currently undertaking the required preparations in our subsidiaries to support this process and are reviewing our options regarding investment banks to achieve this target. "Of course, the decision, if when and how to spin out a subsidiary will depend on many considerations, including market conditions, the subsidiaries financial needs, pipeline maturity, valuation, applicable regulations and other relevant aspects." Mr. Haviv concluded. Recent Achievements: Biomica  Immuno-Oncology program – Biomica recently signed an agreement with Rambam Health Care Campus for a clinical trial for its microbiome-based Immuno-Oncology Drug.  Biomica expects to initiate its first-in-human, proof-of-concept clinical trials with Rambam later this year and is currently waiting for the approval of the Israeli Ministry of Health in order to begin. Canonic MetaYield program – During October 2021, Canonic initiated commercial sales of G200 and G150, part of the G-nnovation series, following positive feedback from a pre-launch campaign, in which these products were marketed in Israel to a limited number of licensed patients. Canonic's G200 and G150 are cannabis inflorescence products marketed under the T20/C4 and T15/C3 categories, respectively[1]. This commercial launch, which was originally scheduled for 2022, was moved forward following the aforementioned positive feedback in Israel. AgPlenus Appointment of a new CEO – Dr. Brian Ember has been appointed as Chief Executive Officer of AgPlenus. Dr. Ember brings extensive experience in the ag-chemicals industry, holding various senior leadership roles, including Head of Global Portfolio Management and Head of Marketing and Business Development, Americas for Biotalys, an agricultural technology company focused on reinventing food protection with protein-based biocontrol solutions; Senior Director, Business Development for AgriMetis, an innovative crop protection company; and various management roles at BASF and Syngenta. Lavie Bio result™ inoculant (previously LAV.211) – Lavie Bio announced initial commercial launch of its first microbiome-based product for yield improvement - result™. This inoculant is being introduced for spring wheat following positive four-year field trials. The first phase of marketing, and initial market penetration, in the upcoming 2022 spring wheat season will be limited to target regions in North Dakota, which is estimated as an overall 6-million-acre spring-wheat market[2]. This initial phase of marketing will be accomplished under a distribution agreement with United Agronomy, as recently announced[3]. Initial sales are expected to be recorded in 2022. Change in management – Mr. Ido Dor, Lavie Bio's Chief Executive Officer, has announced that he is stepping down from his position. Evogene thanks Mr. Dor, who has been an integral part of the Evogene group over the past 10 years and significantly contributed to the activities and success over the years. Mr. Dor will continue to serve as a consultant of Lavie Bio. Lavie Bio is currently seeking a replacement for this position and during that period Mr. Ofer Haviv, Evogene's President and Chief Executive Officer, will serve as an active chairman of Lavie Bio. Evogene CRISPR-IL consortium - The Israeli Innovation Authority (IIA) informed Evogene of its decision to fund a second 18-month period of the CRISPR-IL consortium established last year. The consortium's mission is to develop and validate an end-to-end artificial intelligence (AI) system - "Go-Genome" - for genome-editing in multi-species for applications in pharma, agriculture, and aquaculture. Beyond activities within the consortium's scope, companies participating in the consortium may use "Go-Genome" for their own product development activities. In this respect, Evogene is currently conducting various proof-of-concept experiments in plant tissue, examining the feasibility of increasing the production of ingredients such as natural colors and anti-aging agents for food or cosmetic purposes. Appointment of a new board member – Mr. Dan Falk has been appointed to Evogene's Board of Directors, commencing November 17, 2021. Mr. Falk has extensive experience of more than 20 years in serving as a financial expert on public and private company boards, most recently on the boards of Nice Ltd., Ormat Technologies Inc. and Innoviz Technologies Ltd.. Additionally, in the past Mr. Falk held various executive positions in Orbotech Ltd. and Sapiens International Corporation. Consolidated Financial Results Summary Cash position: Evogene maintains a strong financial position for its activities with $61.6 million in consolidated cash, cash related accounts, bank deposits and marketable securities as of September 30, 2021, of which $9.3 million of Evogene's consolidated cash is appropriated to its subsidiary, Lavie Bio. During the first nine months of 2021, the consolidated net cash usage was approximately $17.3 million, or $13.6 million, if excluding Lavie Bio. This is in comparison to the first nine months of 2020, during which the consolidated cash usage was $13.4 million, or $9.3 million, if excluding Lavie Bio. These sums in 2021 exclude $29.6 million net raised through Evogene's at-the-market, or ATM, offerings (including $2.6 million raised under its current ATM, announced in March 2021) and excludes an additional $1.0 million in proceeds from grants received and exercises of options. During the third quarter, the consolidated cash usage, was $6.0 million, or $4.6 million, excluding Lavie Bio. This is in comparison to the third quarter of 2020, during which the consolidated cash usage was $4.6 million, or $3.0 million, if excluding Lavie Bio. The cash burn rate during the first nine months of 2021 and in the third quarter, was higher than during the same period in 2020, for the following reasons: During the second and third quarter of 2020, the burn rate was relatively low due to certain measures the company initiated to mitigate the impact of the COVID-19 pandemic on the Company. During the first nine months of 2021 Evogene's subsidiaries significantly expanded product development activities, including: - Biomica's ongoing preparations for the initiation of its first-in-human proof-of-concept study in the immuno-oncology program, later this year. - Lavie Bio's activities supporting the commercial launch of its inoculant product branded as result™ in 2022.- Canonic's pre-launch campaign, initiated in September 2021, prior to product commercialization, which took place in Israel during the fourth quarter of 2021. Management continues to estimate that the cash usage for the full year of 2021 will be within the anticipated range of $20-$22 million. These guidelines exclude the cash usage of Evogene's subsidiary Lavie Bio. Research and Development ("R&D") expenses: R&D expenses for the third quarter of 2021, which are reported net of grants received, were $5.8 million, in comparison to $4.0 million in the third quarter of 2020. The increase in R&D expenses was mainly attributed to the product development activities of the Company and its subsidiaries, as mentioned above. Business Development ("BD") expenses: BD expenses were $0.8 million for the third quarter of 2021, in comparison to $0.6 million in the third quarter of 2020. The increase was attributed mainly to Canonic's and Lavie Bio's preparations for commercialization. General and Administrative ("G&A") expenses: G&A expenses for the third quarter of 2021 were $2.0 million, in comparison to $1.2 million in the third quarter of 2020. The increase was mainly attributed to the increase of the costs of directors' and officers' insurance policies and a relative increase in salary expenses following a temporary reduction in such expenses in the corresponding quarter in 2020, due to steps taken to mitigate the financial impact of the COVID-19 pandemic on the Company Operating loss:  Operating loss for the third quarter of 2021 was $8.6 million in comparison to $5.6 million in the third quarter of 2020. Net loss: The net loss for the third quarter of 2021 was $8.3 million in comparison to a net loss of $5.4 million during third quarter of 2020. The increase in loss is attributed to the increase in product development activities, an increase in commercialization and marketing expenses and an increase in directors' and officers' insurance cost. Conference Call & Webcast Details: Date: November 17, 2021 Time: 9:00 am EST; 16:00 Israel time Dial-in number:1-888-281-1167 toll free from the United States, or +972-3-918-0609 internationally Webcast: Link available at www.evogene.com Replay Information: A replay of the conference call will be available approximately two hours following the completion of the call. To access the replay, please dial 1-888-326-9310 toll free from the United States, or +972-3-925-5901 internationally. The replay will be accessible through November 19, 2021, and an archive of the webcast will be available on the Company's website.  About Evogene Ltd.: Evogene (NASDAQ:EVGN, TASE: EVGN)), is a leading company in leveraging computational biology to design novel products for life-science-based industries including human health, agriculture, and industrial applications. Leveraging Big Data and Artificial Intelligence while incorporating a deep understanding of biology, Evogene established its unique technology, the Computational Predictive Biology (CPB) platform, to computationally design microbes, small molecules and genes as the core components for life-science products. Evogene holds a number of subsidiaries utilizing the CPB platform, for the development of human microbiome-based therapeutics, medical cannabis, ag-biologicals, ag-chemicals, seed traits and ag-solutions for castor oil production. For more information, please visit www.evogene.com. Forward Looking Statements This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "hopes" "intends", "anticipates", "plans", "believes", "scheduled", "estimates" or words of similar meaning. For example, Evogene is using forward-looking statement in this press release when it discusses its expected paths to value creation, its belief that turning one or more of its subsidiaries into public companies would allow the markets to assign them independent value, and the timelines for such plans, its and its' subsidiaries expected trials, studies, product advancements, pipelines, commercializations, sales, launches, milestones, target markets, cash usage and other plans for 2021 and 2022, the potential advantages of its technology and its anticipated entry into new fields of activity. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, those risk factors contained in Evogene's reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field-trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.     Evogene Investor Contact: US Investor Relations: Rivka Neufeld Joseph Green Investor Relations and Public Relations Manager Edison Group E: IR@evogene.com E: jgreen@edisongroup.com T: +972-8-931-1900 T: +1 646-653-7030  Laine Yonker  Edison Group  E: lyonker@edisongroup.com  T: +1 646-653-7035     CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION U.S. dollars in thousands (except share and per share data) September 30, December 31, 2021 2020 Unaudited Audited CURRENT ASSETS: Cash and cash equivalents $            37,633 $          46,229 Marketable securities 20,360 - Short-term bank deposits 3,600 2,000 Trade receivables 151 222 Other receivables and prepaid expenses 1,856 3,372 63,600 51,823 LONG-TERM ASSETS: Long-term deposits 25 9 Right-of-use-assets 2,195 1,872     Property, plant and equipment, net 2,127 2,072 Intangible assets, net 15,442 16,139 19,789 20,092 $            83,389 $          71,915 CURRENT LIABILITIES: Trade payables $              1,850 $               863 Employees and payroll accruals 2,361 2,535 Lease liability 927 777 Liabilities in respect of government grants 150 72 Pre-funded warrants - 4,144 Deferred revenues and other advances - 47 Other payables 1,253 1,238.....»»

Category: earningsSource: benzingaNov 17th, 2021

Northern Technologies International Corporation Reports Financial Results for Fiscal 2021

MINNEAPOLIS, Nov. 17, 2021 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ:NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the fourth quarter and fiscal year ended August 31, 2021. Full year fiscal 2021 financial and operating highlights include (with growth rates on a fiscal year-over-year basis): Consolidated net sales increased 18.6% to a record $56,494,000 ZERUST® net sales increased 32.1% to $45,554,000 ZERUST® oil and gas net sales increased 36.3% to $3,793,000 NTIC China net sales increased 29.3% to a record $17,344,000 Natur-Tec® product net sales decreased 16.9% to $10,939,000 Joint venture operating income increased 51.2% to $13,429,000 Net income attributable to NTIC increased to $6,281,000, compared to a net loss of $1,338,000 last year Net income per diluted share attributable to NTIC increased to $0.64, from a net loss of $(0.15) per share last year Consolidated balance sheet at August 30, 2021 was strong with no debt and total cash and cash equivalents of $7,680,000 "We closed fiscal 2021 with record quarterly and annual sales, as well as strong profitability. During the fourth quarter, consolidated sales increased 54.7% year-over-year, while sales at NTIC's joint ventures increased 79.3% year-over-year," said G. Patrick Lynch, President and Chief Executive Officer of NTIC. "Throughout fiscal 2021 we focused on safely serving our customers, supporting our employees, and investing in our long-term growth opportunities. I am proud of the progress we made during the course of fiscal 2021, and the positive momentum has kept right on going into the new fiscal year. This includes the recently announced expansion in China into a new NTIC-owned facility and the purchase of the remaining 50% ownership interest in our Indian joint venture. Furthermore, we continued investing in our Natur-Tec and ZERUST oil and gas business units to take advantage of long-term trends within these markets. All signs so far, are leading us to expect that fiscal 2022 will be another strong year of sales growth and higher profitability," concluded Mr. Lynch. NTIC's consolidated net sales increased 54.7% to $15,513,000 during the three months ended August 31, 2021, compared to $10,029,000 for the three months ended August 31, 2020. The year-over-year increase in consolidated sales was primarily due to sales growth across all the Company's product categories as a result of higher global demand and the recovery from the COVID-19 pandemic. For the full year ended August 31, 2021, consolidated net sales increased 18.6% to $56,494,000, compared to $47,639,000 for the prior fiscal year. The following tables set forth NTIC's net sales by product category for the three months and fiscal year ended August 31, 2021 and August 31, 2020 by segment:   Three Months Ended   August 31,2021   % of Net Sales   August 31,2020   % of Net Sales   % Change ZERUST® industrial net sales $ 10,163,474   65.5 %   $ 6,914,040   68.9 %   47.0 % ZERUST® joint venture net sales   662,032   4.3 %     467,649   4.7 %   41.6 % ZERUST® oil & gas net sales   1,846,046   11.9 %     770,331   7.7 %   139.6 % Total ZERUST® net sales $ 12,671,552   81.7 %   $ 8,152,020   81.3 %   55.4 % Total Natur-Tec® net sales   2,841,749   18.3 %     1,876,666   18.7 %   51.4 % Total net sales $ 15,513,301   100.0 %   $ 10,028,686   100.0 %   54.7 %   Fiscal Year Ended   August 31,2021   % of Net Sales   August 31,2020   % of Net Sales   % Change ZERUST® industrial net sales $ 38,737,771   68.6 %   $ 29,719,015   62.4 %   30.3 % ZERUST® joint venture net sales   3,023,197   5.4 %     1,972,646   4.1 %   53.3 % ZERUST® oil & gas net sales   3,793,466   6.7 %     2,782,874   5.8 %   36.3 % Total ZERUST® net sales $ 45,554,434   80.6 %   $ 34,474,535   72.4 %   32.1 % Total Natur-Tec® net sales   10,939,385   19.4 %     13,164,157   27.6 %   (16.9 )% Total net sales $ 56,493,819   100.0 %   $ 47,638,692   100.0 %   18.6 % NTIC's joint venture operating income increased 69.4% to $3,261,000 during the three months ended August 31, 2021, compared to joint venture operating income of $1,925,000 during the three months ended August 31, 2020. This increase was attributable to a corresponding reduction in total net sales of the joint ventures as fees for services provided to joint ventures are primarily a function of the net sales of NTIC's joint ventures, which increased 79.3% to $33,159,000 during the three months ended August 31, 2021, compared to $18,498,166 for the three months ended August 31, 2020. For fiscal year 2021, NTIC's joint venture operating income increased 51.2% to $13,429,000, compared to joint venture operating income of $8,883,000 during the full year ended August 31, 2020. Net sales at NTIC's joint ventures increased 39.0% to $120,955,000 during the full year ended August 31, 2021, compared to $87,030,000 for the full year ended August 31, 2020. Operating expenses, as a percent of net sales, for the fourth quarter of fiscal 2021 were 42.5%, compared to 53.0% for the same period last fiscal year. This improvement in operating leverage was due to higher fourth quarter sales, and NTIC's continued focus on controlling operating expenses. For the full year, operating expenses, as a percent of net sales, were 43.7%, compared to 49.0% for last fiscal year. The Company reported net income attributable to NTIC for the fourth quarter of fiscal 2021 of $1,652,000, or $0.17 per diluted share, compared to a loss of $(1,765,000), or $(0.19) per diluted share for the same period last fiscal year. For the full year ended August 31, 2021, net income attributable to NTIC increased to $6,281,000, or $0.64 per share, compared to a net loss of $(1,338,000), or a loss of $(0.15) per diluted share for last fiscal year. Net income attributable to NTIC for the 2020 fourth quarter and fiscal year included a one-time $1.6 million non-cash adjustment to the Company's U.S. deferred tax asset, which was required to remove the net U.S. deferred tax asset from NTIC's balance sheet. NTIC's balance sheet remains strong, with no debt, and working capital of $25,231,000 at August 31, 2021, including $7,861,000 in cash and cash equivalents and $5,000 in available for sale securities, compared to $27,105,000 of working capital at August 31, 2020, including $6,403,000 in cash and cash equivalents and $5,545,000 in available for sale securities. During the fiscal 2021 fourth quarter, the Company invested $6,200,000 to buy a new facility in China which reflects its commitment to the Chinese market and supports the expected growth within this geography. The new facility will support research and development, production, sales and marketing and training efforts in China. NTIC closed the transaction on July 6, 2021, and management expects to move into the new facility in early fiscal 2022. At August 31, 2021, the Company had $27,624,000 of investments in joint ventures, of which $15,920,000 or 57.6%, is cash, with the remaining balance mostly made up of other working capital. Conference Call and Webcast NTIC will host a conference call today at 8:00 a.m. Central Time to review its results of operations for the fourth quarter and full fiscal year of 2021 and its outlook, followed by a question and answer session. The conference call will be available to interested parties through a live audio webcast available through NTIC's website at www.ntic.com where the webcast will be archived and accessible for at least 12 months. The dial-in number for the conference call is (877) 670-9776 and the confirmation code is 6869755. About Northern Technologies International Corporation   Northern Technologies International Corporation develops and markets proprietary, environmentally beneficial products and services in over 60 countries either directly or via a network of subsidiaries, joint ventures, independent distributors and agents. NTIC's primary business is corrosion prevention marketed mainly under the ZERUST® brand. NTIC has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for over 45 years and, in recent years, has targeted and expanded into the oil and gas industry. NTIC offers worldwide on-site technical consulting for rust and corrosion prevention issues. NTIC's technical service consultants work directly with the end users of NTIC's products to analyze their specific needs and develop systems to meet their technical requirements. NTIC also markets and sells a portfolio of bio-based and biodegradable polymer resin compounds and finished products marketed under the Natur-Tec® brand.    Forward-Looking Statements   Statements contained in this release that are not historical information are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include NTIC's expectations that it will continue to see strong global demand and sales growth for its products and services as well as higher profitability in fiscal 2022, and other statements that can be identified by words such as "believes," "continues," "expects," "anticipates," "intends," "potential," "outlook," "will," "may," "would," "should," "guidance" or words of similar meaning, and the use of future dates. Such forward-looking statements are based upon the current beliefs and expectations of NTIC's management and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: the effects of the COVID-19 pandemic on NTIC's business and operating results; the effects of supply chain and shipping issues on NTIC's business and operating results; the health of the U.S. and worldwide economies, including in particular the U.S. automotive industry; the effect of economic uncertainty and trade disputes; NTIC's dependence on its joint ventures, including in particular in Germany, its relationships with its joint venture partners and the success of its joint ventures, including fees and dividend distributions that NTIC receives from them; risks associated with NTIC's international operations, including its NTIC China operations, its recent acquisition of the remaining 50% ownership interest in its former Indian joint venture, Harita-NTI, the United Kingdom's exit from the European Union and exposure to fluctuations in foreign currency exchange rates and tariffs, including in particular the Euro compared to the U.S. dollar; the effect of the, economic slowdown and political unrest; the level of growth in NTIC's markets; NTIC's investments in research and development efforts; acceptance of existing and new products; timing of NTIC's receipt of purchase orders under supply contracts; variability in sales to customers in the oil and gas industry and the effect on NTIC's quarterly financial results; increased competition; the costs and effects of complying with changes in tax, fiscal, government and other regulatory policies, and rules relating to environmental, health and safety matters; pending and potential litigation; and NTIC's reliance on its intellectual property rights and the absence of infringement of the intellectual property rights of others. More detailed information on these and additional factors which could affect NTIC's operating and financial results is described in the Company's filings with the Securities and Exchange Commission (SEC), including its annual report on Form 10-K for the fiscal year ended August 31, 2021 to be filed with the SEC, prior annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. NTIC urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. Additionally, NTIC undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - AUGUST 31, 2021 AND 2020      August 31, 2021   August 31, 2020 ASSETS         CURRENT ASSETS:         Cash and cash equivalents   $ 7,680,641     $ 6,403,032   Available for sale securities     4,634      .....»»

Category: earningsSource: benzingaNov 17th, 2021

Meritor Reports Fourth-Quarter and Fiscal Year 2021 Results

TROY, Mich., Nov. 17, 2021 /PRNewswire/ -- Meritor, Inc. (NYSE: MTOR) today announced financial results for its fourth quarter and full fiscal year ending September 30, 2021. Fourth-Quarter Highlights Sales were $945 million Net income attributable to Meritor and net income from continuing operations attributable to Meritor were $62 million and $63 million, respectively Diluted earnings per share from continuing operations was $0.88 Adjusted income from continuing operations attributable to Meritor was $57 million, or $0.80 of adjusted diluted earnings per share Adjusted EBITDA was $91 million Adjusted EBITDA margin was 9.6 percent Fourth-Quarter Results For the fourth quarter of fiscal year 2021, Meritor posted sales of $945 million, up $187 million, or approximately 25 percent, from the same period last year. This increase in sales was driven primarily by higher global truck production in all markets. Net income attributable to Meritor was $62 million, or $0.87 per diluted share, compared to net income attributable to Meritor of $1 million, or $0.01 per diluted share in the same period last year. Net income from continuing operations attributable to the company was $63 million, or $0.88 per diluted share, compared to net income from continuing operations attributable to the company of $1 million, or $0.01 per diluted share in the same period last year. The increase in net income year over year was driven primarily by higher sales volumes and lower tax expense including a net tax benefit from certain tax initiatives, partially offset by higher freight and steel costs. Adjusted income from continuing operations attributable to the company in the fourth quarter was $57 million, or $0.80 of adjusted diluted earnings per share, compared with $8 million, or $0.11 of adjusted diluted earnings per share in the same period last year. Adjusted EBITDA was $91 million, compared to $60 million in the fourth quarter of fiscal year 2020. Adjusted EBITDA margin for the fourth quarter of fiscal year 2021 was 9.6 percent, compared with 7.9 percent in the same period last year. The increase in adjusted EBITDA year over year was driven primarily by higher sales volumes, partially offset by higher freight and steel costs. Cash flow provided by operating activities in the fourth quarter of fiscal year 2021 was $51 million, compared to $77 million in the same period last year. Free cash flow for the fourth quarter of fiscal year 2021 was $8 million, compared to free cash flow of $37 million in the same period last year. The decrease in operating cash flow and free cash flow year over year was driven primarily by higher working capital requirements. Fourth-Quarter Segment Results Commercial Truck sales were $740 million in the fourth quarter of fiscal year 2021, up 32 percent compared to the fourth quarter of fiscal year 2020. The increase in sales was driven by higher global truck production in all markets. Commercial Truck segment adjusted EBITDA was $54 million in the fourth quarter of fiscal year 2021, up $30 million from the same period in the prior fiscal year. Segment adjusted EBITDA margin increased to 7.3 percent from 4.3 percent in the same period of the prior fiscal year. The increase in segment adjusted EBITDA and segment adjusted EBITDA margin was driven primarily by conversion on higher revenue, partially offset by higher freight and steel costs. Aftermarket & Industrial sales were $250 million in the fourth quarter of fiscal year 2021, up 11 percent compared to the fourth quarter of fiscal year 2020. The increase in sales was driven by higher sales volumes across the segment. Segment adjusted EBITDA for Aftermarket & Industrial was $34 million in the fourth quarter of fiscal years 2021 and 2020. Segment adjusted EBITDA margin decreased to 13.6 percent in the fourth quarter of fiscal year 2021, compared to 15.0 percent in the same period of the prior year. Segment adjusted EBITDA margin decreased primarily due to higher freight costs, which more than offset conversion on higher sales volumes. Fiscal Year 2021 Results For fiscal year 2021, Meritor posted sales of $3.8 billion, up $0.8 billion, or approximately 26 percent from the prior year. The increase in sales was driven primarily by higher global truck production in all markets. Net income attributable to Meritor was $199 million, or $2.73 per diluted share, compared to $245 million, or $3.24 per diluted share in the prior year. Net income from continuing operations attributable to the company was $200 million, or $2.74 per diluted share, compared to net income from continuing operations attributable to the company of $244 million, or $3.23 per diluted share in the prior year. The decrease in net income year over year was driven primarily by income, net of tax, associated with the termination of the company's distribution arrangement with WABCO Holdings, Inc. ("WABCO") in fiscal 2020 and higher freight, steel and electrification costs in fiscal year 2021, partially offset by conversion on higher revenue. Adjusted income from continuing operations in fiscal year 2021 was $195 million, or $2.68 of adjusted diluted earnings per share, compared to $73 million, or $0.97 of adjusted diluted earnings per share in the prior year. Adjusted EBITDA was $411 million in fiscal year 2021, compared with $272 million in fiscal year 2020. Adjusted EBITDA margin was 10.7 percent in fiscal year 2021, up 180 basis points compared with the prior fiscal year. The increase in adjusted EBITDA and adjusted EBITDA margin year over year was driven primarily by higher sales volumes, partially offset by higher freight, steel and electrification costs. Cash flow from operating activities in the fiscal year was $197 million, compared to $265 million in fiscal year 2020. Free cash flow for the full fiscal year was $107 million, compared to $180 million in fiscal year 2020. The decrease in cash provided by operating activities was driven primarily by $265 million of cash received in fiscal year 2020 from the termination of the distribution arrangement with WABCO and an increase in fiscal year 2021 working capital requirements. Outlook for Fiscal Year 2022 The company is providing the following guidance for fiscal year 2022: Revenue to be in the range of $4.1 billion to $4.3 billion Net income attributable to Meritor and net income from continuing operations attributable to Meritor to be in the range of $220 million to $255 million Diluted earnings per share from continuing operations in the range of $3.05 to $3.55 Adjusted diluted earnings per share from continuing operations to be in the range of $3.25 to $3.75 Adjusted EBITDA margin to be in the range of 11.5 percent to 12.5 percent Operating cash flow to be in the range of $275 million to $320 million Free cash flow to be in the range of $175 million to $200 million "While 2021 was a challenging industry environment, we performed well. Now in the last year of our M2022 plan, we remain focused on earnings and growth, particularly as we expand our customer base in the growing commercial vehicle electrification market," said Chris Villavarayan, CEO and president of Meritor. Fourth-Quarter and Fiscal Year 2021 Conference Call Meritor will host a conference call and webcast to discuss the company's fourth-quarter and full-year results for fiscal year 2021 on Wednesday, Nov. 17 at 9 a.m. ET. To participate, call (844) 412-1003 within the U.S. or (216) 562-0450 from outside the U.S. at least 10 minutes prior to the start of the call. Please reference conference ID: 2362339 when registering. Investors can also listen to the conference call in real time or access a recording of the call for seven days after the event by visiting the Investors page on meritor.com. A replay of the call will be available starting at 12 p.m. ET on Nov. 17 until 12 p.m. ET on Nov. 24 by calling (855) 859-2056 within the U.S. or (404) 537-3406 from outside the U.S. Please refer to replay conference ID 2362339. To access the listen-only audio webcast, visit meritor.com and select the webcast link from the Investors page. About Meritor Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. With more than a 110-year legacy of providing innovative products that offer superior performance, efficiency and reliability, the company serves commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world. Meritor is based in Troy, Michigan, United States, and is made up of approximately 9,600 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 19 countries. Meritor common stock is traded on the New York Stock Exchange under the ticker symbol MTOR. For important information, visit the company's website at www.meritor.com. Forward-Looking Statement This release contains statements relating to future results of the company (including certain outlooks, projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the duration and severity of the COVID-19 pandemic and its effects on public health, the global economy, and financial markets, as well as our industry, customers, operations, workforce, supply chains, distribution systems and demand for our products; reliance on major OEM customers and possible negative outcomes from contract negotiations with our major customers, including failure to negotiate acceptable terms in contract renewal negotiations and our ability to obtain new customers; the outcome of actual and potential product liability, warranty and recall claims; our ability to successfully manage rapidly changing volumes in the commercial truck markets and work with our customers to manage demand expectations in view of rapid changes in production levels; global economic and market cycles and conditions; availability and sharply rising costs of raw materials, including steel, transportation and labor, and our ability to manage or recover such costs; technological changes in our industry as a result of the trends toward electrified drivetrains and the integration of advanced electronics and their impact on the demand for our products and services; our ability to manage possible adverse effects on European markets or our European operations, or financing arrangements related thereto in the event one or more countries exit the European monetary union; risks inherent in operating abroad (including foreign currency exchange rates, restrictive government actions regarding trade, implications of foreign regulations relating to pensions and potential disruption of production and supply due to terrorist attacks or acts of aggression); risks related to our joint ventures; the ability to achieve the expected benefits of strategic initiatives and restructuring actions; our ability to successfully integrate the products and technologies of Fabco Holdings, Inc., AxleTech and Transportation Power, Inc. and future results of such acquisitions, including their generation of revenue and their being accretive; the demand for commercial and specialty vehicles for which we supply products; whether our liquidity will be affected by declining vehicle production in the future; OEM program delays; demand for and market acceptance of new and existing products; successful development and launch of new products; labor relations of our company, our suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of our suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of our debt; our ability to continue to comply with covenants in our financing agreements; our ability to access capital markets; credit ratings of our debt; the outcome of existing and any future legal proceedings, including any proceedings or related liabilities with respect to environmental, asbestos-related, or other matters; rising costs of pension benefits; possible changes in accounting rules; and other substantial costs, risks and uncertainties, including but not limited to those detailed in our Annual Report on Form 10-K for the year ended September 30, 2020 and from time to time in other filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. All earnings per share amounts are on a diluted basis. The company's fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters generally end on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter references relate to the company's fiscal year and fiscal quarters, unless otherwise stated. Non-GAAP Financial Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP"), we have provided information regarding non-GAAP financial measures. These non-GAAP financial measures include adjusted income (loss) from continuing operations attributable to the company, adjusted diluted earnings (loss) per share from continuing operations, adjusted EBITDA, adjusted EBITDA margin, segment adjusted EBITDA, segment adjusted EBITDA margin, free cash flow and free cash flow conversion. Adjusted income (loss) from continuing operations attributable to the company and adjusted diluted earnings (loss) per share from continuing operations are defined as reported income (loss) from continuing operations and reported diluted earnings (loss) per share from continuing operations before restructuring expenses, asset impairment charges and other special items as determined by management. Adjusted EBITDA is defined as income (loss) from continuing operations before interest, income taxes, depreciation and amortization, non-controlling interests in consolidated joint ventures, loss on sale of receivables, restructuring expenses, asset impairment charges and other special items as determined by management. Adjusted EBITDA margin is defined as adjusted EBITDA divided by consolidated sales from continuing operations. Segment adjusted EBITDA is defined as income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization, noncontrolling interests in consolidated joint ventures, loss on sale of receivables, restructuring expense, asset impairment charges and other special items as determined by management. Segment adjusted EBITDA excludes unallocated legacy and corporate expense (income), net. Segment adjusted EBITDA margin is defined as segment adjusted EBITDA divided by consolidated sales from continuing operations, either in the aggregate or by segment as applicable. Free cash flow is defined as cash flows provided by (used for) operating activities less capital expenditures. Free cash flow conversion is defined as free cash flow over adjusted income from continuing operations attributable to the company. Beginning in the second quarter of fiscal year 2021, the company no longer includes an adjustment for non-cash tax expense related to the use of deferred tax assets in jurisdictions with net operating loss carryforwards or tax credits in adjusted income (loss) from continuing operations attributable to the company and adjusted diluted earnings (loss) per share from continuing operations. Management believes these non-GAAP financial measures are useful to both management and investors in their analysis of the company's financial position and results of operations. In particular, adjusted EBITDA, adjusted EBITDA margin, segment adjusted EBITDA, segment adjusted EBITDA margin, adjusted income (loss) from continuing operations attributable to the company, adjusted diluted earnings (loss) per share from continuing operations and free cash flow conversion are meaningful measures of performance to investors as they are commonly utilized to analyze financial performance in our industry, perform analytical comparisons, measure value creation, benchmark performance between periods and measure our performance against externally communicated targets. Free cash flow is used by investors and management to analyze our ability to service and repay debt and return value directly to shareholders. Free cash flow conversion is a specific financial measure of our M2022 plan used to measure the company's ability to convert earnings to free cash flow and provides useful information about our ability to achieve strategic goals. Management uses the aforementioned non-GAAP financial measures for planning and forecasting purposes, and segment adjusted EBITDA is also used as the primary basis for the Chief Operating Decision Maker ("CODM") to evaluate the performance of each of our reportable segments. Our Board of Directors uses adjusted EBITDA margin, free cash flow, adjusted diluted earnings (loss) per share from continuing operations and free cash flow conversion as key metrics to determine management's performance under our performance-based compensation plans, provided that, solely for this purpose, adjusted diluted earnings (loss) per share from continuing operations also includes an adjustment for the use of deferred tax assets in jurisdictions with net operating loss carryforwards or tax credits.  Adjusted income (loss) from continuing operations attributable to the company, adjusted diluted earnings (loss) per share from continuing operations, adjusted EBITDA, adjusted EBITDA margin, segment adjusted EBITDA, segment adjusted EBITDA margin and free cash flow conversion should not be considered a substitute for the reported results prepared in accordance with GAAP and should not be considered as an alternative to net income or cash flow conversion calculations as an indicator of our financial performance. Free cash flow and free cash flow conversion should not be considered a substitute for cash provided by (used for) operating activities, or other cash flow statement data prepared in accordance with GAAP, or as a measure of financial position or liquidity. In addition, these non-GAAP cash flow measures do not reflect cash used to repay debt or cash received from the divestitures of businesses or sales of other assets and thus do not reflect funds available for investment or other discretionary uses. These non-GAAP financial measures, as determined and presented by the company, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.   MERITOR, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In millions, except per share amounts) Three Months EndedSeptember 30, Twelve Months EndedSeptember 30, 2021 2020 2021 2020 Sales $ 945 $ 758 $ 3,833 $ 3,044 Cost of sales (835) (699) (3,328) (2,716) GROSS PROFIT 110 59 505 328 Selling, general and administrative (67) (40) (270) (221) Income from WABCO distribution termination — — — 265 Other operating expense, net (4) (8) (17) (40) OPERATING INCOME 39 11 218 332 Other income, net 12 10 61 46 Equity in earnings of affiliates 10 3 34 14 Interest expense, net (14) (19) (79) (66) INCOME BEFORE INCOME TAXES 47 5 234 326 Provision (benefit) for income taxes 19 (5) (24) (78) INCOME FROM CONTINUING OPERATIONS 66 — 210 248 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax (1) — (1) 1 NET INCOME 65.....»»

Category: earningsSource: benzingaNov 17th, 2021

Profiting from "Elevators" to Space

The "final frontier" is the beginning of a trillion-dollar space economy with limitless profit potential for investors. Jeremy highlights the advancements in technology making this happen and a few companies already blazing a trail to the stars. The final frontier is ready to be explored and the companies involved have tremendous opportunities for profit. Over the next few decades, a trillion-dollar space economy will be formed. Investors need to educate themselves to the movers and shakers before it’s too late.While there are literal gold mines awaiting in space, the “elevators” to get there will be the first to see growth. Advances in technology and reusable rockets have made the trip to space much easier and more affordable. This has opened the eyes of the investment community as billionaires switch their focus from earth to the stars.Reusable Rocket Technology Cost has been the biggest reason most space programs couldn’t get off the ground since the original Apollo missions. Governments could only spend so much in the initial stages of space exploration. But technology has now improved and there is private money coming into the industry like never before.Reusable launch systems have changed the game. Initially, the goal was to save part of the component stages, but now we have technology that can save all of the stages and provide a fully reusable rocket. This important step saves on cost and makes the next stages of space exploration feasible.The Elevators to SpaceAccording to Morgan Stanley analyst Adam Jonas, falling launch costs and easier access to space compares to elevators allowing construction of skyscrapers to take off in the early 20th century.Before the elevator, tall buildings simply didn’t work. Jonas says “We think of reusable rockets as an elevator to low Earth orbit (LEO)”. He believes this technology will allow space opportunities to mature, which is why Morgan Stanley thinks space exploration will be the next trillion-dollar industry.And Jonas isn’t the only bullish one on space, as Bank of America sees the space industry growing to $2.7 trillion in 30 years.With all this opportunity, the smart money is starting to notice. Investors are piling in and billionaires that grew up with Star Wars and Star Trek are pioneering the exploration with their own money.Keep reading . . .------------------------------------------------------------------------------------------------------Emerging Space Economy to Create $2.7 Trillion Wealth Opportunity Right now is the perfect time to invest in the fast-growing space exploration industry.Companies need to launch thousands of satellites as quickly as possible. Scientists are more serious about exploring the Moon and nearby planets than they have been in decades. And space tourism could soon be as “normal” as cross-country airplane flights.But you may be surprised which companies are most likely to dominate the $2.7 trillion space economy. Zacks has just released a Space Exploration: The Next Trillion-Dollar Industry, a new special report to highlight 4 surprising stocks with massive profit potential. Access to this report ends midnight Sunday, November 14.See Zacks’ Top Space Stocks Now >> ------------------------------------------------------------------------------------------------------The Companies That Are Shooting for the Moon1) Blue OriginFounded way back in 2000, Blue Origin only recently gained momentum after Jeff Bezos stepped down from Amazon. Bezos believes that in the coming decades millions of people will have moved on from Earth, living and working in space at some capacity.Blue Origin wants to lower the cost of space travel through reusable rockets in order to increase access to space. The company has designs not just to fly people to space, but also offer space tourism and other services. Additionally, the company launches orbital satellites and has been competing for the Artemis moon lander mission.Blue Origin’s New Shepard is a fully reusable launch system that will be used for space tourism. New Glenn is still under development and will be a heavy-lift orbital launch vehicle aiming to carry payloads into space.2) SpaceX Still a private company, recent funding rounds put the value of SpaceX around $75 billion.SpaceX is already sending payloads into space for NASA, the Pentagon and others with its Falcon 9 rocket. Additionally, the company has sent astronauts to ISS and more recently, sent the first all-civilian crew into orbit. The Inspiration4 mission utilized the SpaceX Crew Dragon capsule, which took the crew into orbit for three days, before reentering the atmosphere and splashing down safely into the Atlantic.Future missions and goals for the company include landing astronauts on the moon, space tourism and of course, Mars colonization. Musk has said that if everything goes well, we could land people on Mars in about a decade.3) Virgin GalacticIn late 2019, Virgin Galactic became the first publicly traded commercial space company and Sir Richard Branson became the first billionaire in space.On July 11th, the company successfully flew its first crewed flight, which included the English businessman.According to the company’s website, Virgin Galactic’s mission will be “A Spaceline for Earth” that will open space to everybody. The only issue is that right now, flights are priced at $450,000 a pop.In Conclusion The next multi-trillion-dollar economy is taking shape today. Those that find the right investment will be rewarded handsomely – especially those that get in early on the action.Investors should be actively searching for the companies that are making moves in this industry. Not only will the elevators to space give investors big returns, but other space sub-sectors will be filled with massive opportunity.Don’t miss the next biggest chance to take your portfolio to infinity and beyond!According to our research, there are just a handful of space stocks investors will want to pay attention to right now – and they’re not the ones you’d probably guess.SpaceX and the other big-name companies may get all the news coverage, but a handful of lesser-known companies are poised for significant upside, both in the near term and for years to come. I just released a brand-new Special Report to point you in the right direction. I invite you to download it today.  Space Exploration: The Next Trillion-Dollar Industry reveals 4 cutting edge stocks I believe will richly reward shareholders. One of them is planning to launch rockets 10 times faster than SpaceX. Most investors have never heard of this company, but it could soon be one of the most recognized names in the tech world.This is an investing opportunity decades in the making – and it’s finally here.I encourage you to check out this report today. But don't delay. The deadline to download Space Exploration: The Next Trillion-Dollar Industry is midnight Sunday, November 14.See 4 cutting-edge space stocks now >> Good Investing,Jeremy MullinStock StrategistJeremy Mullin has been a professional trader for more than 15 years with specific expertise in profiting from patterns set by High-Frequency Traders. He is the editor of Zacks Counterstrike. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 12th, 2021

Guardion Health Sciences Announces Financial Results for the Three Months Ended September 30, 2021

HOUSTON, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Guardion Health Sciences, Inc. (NASDAQ:GHSI) ("Guardion" or the "Company"), a clinical nutrition and diagnostics company that develops clinically supported nutrition, medical foods, supplements and medical devices, announced its financial results for the three months and nine months ended September 30, 2021. The Company also provided a corporate update to shareholders. Financial highlights for the three months ended September 30, 2021 include the following: Total revenue of $3,148,612 for the three months ended September 30, 2021, as compared to $253,188 for the three months ended September 30, 2020, reflecting the first full quarter of operations of the Viactiv brand, which represented approximately 95% of total revenue for the period. The Viactiv line of supplements was acquired by the Company on June 1, 2021.   Net loss for the three months ended September 30, 2021 of $(3,014,836) or $(0.12) per share, as compared to a net loss of $(2,143,494) or $(0.15) per share for the three months ended September 30, 2020. Cash and short-term investments balance of $10,558,662 and working capital of $12,896,498 at September 30, 2021. Additional important events that occurred during the three months ended September 30, 2021 and subsequently include the following: Completed the successful integration of the operations of the Viactiv brand and related systems into the Company's operations. Relocated the corporate offices from San Diego, California to Houston, Texas. Entered into an agreement to terminate the lease on the Company's San Diego, California corporate office and main warehouse facility, which was utilized primarily for the Company's ocular products business. The termination agreement was effective on October 31, 2021 and is expected to reduce overhead costs. Guardion moved its product inventory to an experienced third-party logistics provider. Launched a new and improved corporate and investor website to better engage with the Company's investors, customers and other stakeholders. The website can be accessed at its current URL, www.guardionhealth.com. Bret Scholtes, Guardion's President and Chief Executive Officer, commented, "We are encouraged by our third quarter results, which demonstrated measurable progress towards our goal of building a leading clinical nutrition company. Our revenue growth, driven by the performance of the recently acquired Viactiv product line, represents the highest quarterly sales results in Guardion's history. We achieved these results despite the challenging supply chain environment, and our management team is actively focusing on supply chain matters given industry-wide constraints. In addition, the Viactiv brand has been completely and successfully integrated into our business, and we remain confident in our ability to drive organic growth through expansion of the Viactiv brand. Our focus is now shifting to ways that we can successfully leverage the established distribution channels and brand awareness of Viactiv to accelerate the growth of the Company into a leader in clinical nutrition. "Our efforts in the upcoming quarter will be concentrated on growing the market share of our current products, while at the same time expanding upon those attributes that we believe are fundamental to that growth. These include expanding Viactiv's brand awareness and consumer acceptance through increased marketing and development of direct-to-consumer opportunities; leveraging and expanding our experienced management team; significantly growing our distribution networks and relationships while creating opportunities to develop new approaches and maximizing our product development and launch initiatives. We believe that this leveraging of the established Viactiv brand will be critical to establishing a consistent track record of growth in both revenue and profitability." Mr. Scholtes continued, "Over the long-term, Guardion believes that its success will depend on its ability to create value in well-differentiated and robust brands through strong clinically proven claims that address consumer needs in growing markets, both domestically and internationally. Guardion is committed to bringing compelling products to market that serve a distinct need, under meaningful and differentiated brands that are supported by strong science. We firmly believe that Guardion is now much better positioned to create value for its shareholders as a result of the Viactiv acquisition." "Mr. Scholtes concluded, "Finally, as we embark on this important work, we anticipate more opportunities to increase the frequency of shareholder communications to be able to report on achieving measurable and tangible milestones as part of the Company's overall long-term progress." Financial Results Three Months Ended September 30, 2021 and 2020 Total revenue for the three months ended September 30, 2021 increased to $3,148,612, as compared total revenue for the three months ended September 30, 2020 of $253,188. The significant increase in revenue is due to the Company's commercialization of its Viactiv products. We achieved these results despite the challenging supply chain environment. Management is actively focusing on supply chain matters in light of industry-wide supply chain constraints.  Through September 30, 2021, the Company has not experienced negative impacts to its supply chain, however, the Company cannot make any assurances in future periods. Operating expenses for the three months ended September 30, 2021 were $4,403,545, as compared to operating expenses for the three months ended September 30, 2020 of $ 2,290,745. Net loss for the three months ended September 30, 2021 was $(3,014,836), as compared to net loss for the three months ended September 30, 2020 of $(2,143,494). These results of operations are not comparable to prior periods as we have significantly increased our gross revenues and cost of goods sold with our acquisition and successful integration of Activ. Nine Months Ended September 30, 2021 and 2020 Total revenue for the nine months ended September 30, 2021 was $4,605,628, as compared total revenue for the nine months ended September 30, 2020 of $1,689,820. The change in overall performance in 2021 as compared to 2020 is attributable to the Company's acquisition and successful integration of the Viactiv brand and product line on June 1, 2021. Operating expenses for the nine months ended September 30, 2021 were $12,272,371, as compared to operating expenses for the nine months ended September 30, 2020 of $6,018,137. Net loss for the nine months ended September 30, 2021 was $(10,224,649) as compared to net loss for the nine months ended September 30, 2020 of $(5,197,567). These results of operations are not comparable to prior periods as we have significantly increased our gross revenues and cost of goods sold with our acquisition and successful integration of Activ. About Guardion Health Sciences, Inc. Guardion Health Sciences, Inc. (NASDAQ:GHSI), is a clinical nutrition and diagnostics company. Guardion's portfolio of science-based, clinically supported nutrition, medical foods, and diagnostic products support healthcare professionals, their patients, and consumers in achieving health goals. Guardion's commercial and developmental initiatives are supported by equally impressive scientific and medical advisory boards, led by seasoned business executives and physicians with many years of experience. This combination of expertise and scientific knowledge forms the foundation of Guardion's growing position within the clinical nutrition marketplace. Information and risk factors with respect to Guardion and its business, including its ability to successfully develop and commercialize its proprietary products and technologies, may be obtained in the Company's filings with the U. S. Securities and Exchange Commission (the "SEC") at www.sec.gov. Forward-Looking Statement Disclaimer With the exception of the historical information contained in this news release, the matters described herein may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements contain information about our expectations, beliefs, plans or intentions regarding our product development and commercialization efforts, research and development efforts, business, financial condition, results of operations, strategies or prospects, and other similar matters. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," "hopes" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict, and involve unknown risks and uncertainties that may individually or materially impact the matters discussed herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the integration of new management team members, the implementation of new financial, management, accounting and business software systems, the integration of the Viactiv acquisition and possibly additional acquisition targets, the impact of the COVID-19 pandemic on the Company's business, operations and the economy in general, the Company's ability to successfully develop and commercialize its proprietary products and technologies, and the Company's ability to maintain compliance with Nasdaq's listing requirements. Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investor Relations Contact:CORE IRScott Arnold516-222-2560scotta@coreir.com Media Relations Contact:Jules AbrahamDirector of Public RelationsCORE IR917-885-7378julesa@coreir.com   Guardion Health Sciences, Inc.Condensed Consolidated Balance Sheets       September 30,     December 31,       2021     2020         (Unaudited)           Assets                                   Current assets                 Cash   $ 3,563,854     $ 8,518,732   Short-term investments     6,994,808       -   Accounts receivable, net     2,268,623       11,248   Inventories     792,633       384,972   Prepaid expenses     1,246,711       179,931                     Total current assets     14,866,629       9,094,883                     Property and equipment, net     269,487       285,676   Intangible assets, net     11,553,333       50,000   Goodwill     11,893,134       -   Deposits     1,282       11,751   Right of use asset, net     29,305       418,590                     Total assets   $ 38,613,170     $ 9,860,900                     Liabilities and Stockholders' Equity                                   Current liabilities                 Accounts payable   $ 1,182,955     $ 608,313   Accrued expenses     473,257       127,637   Operating lease liability – current     313,909       162,845   Payable to former officer     -       148,958   Derivative warrant liability     -       25,978                     Total current liabilities     1,970,121       1,073,731                     Operating lease liability – long term     -       271,903                     Total liabilities     1,970,121       1,345,634                     Commitments and contingencies                                   Stockholders' Equity                                   Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding     -       -   Common stock, $0.001 par value; 250,000,000 shares authorized; 24,426,993 shares and 15,170,628 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively     24,427       15,171   Additional paid-in capital     100,900,334       62,583,423   Accumulated deficit     (64,281,712 )     (54,083,328 )                   Total stockholders' equity     36,643,049       8,515,266                     Total liabilities and stockholders' equity   $ 38,613,170     $ 9,860,900                       Guardion Health Sciences, Inc.Condensed Consolidated Statements of Operations (Unaudited)                                 Three Months EndedSeptember 30,     Nine Months EndedSeptember 30,       2021    .....»»

Category: earningsSource: benzingaNov 10th, 2021

Infrastructure: What"s The Bang For The Buck?

Infrastructure: What's The Bang For The Buck? By Philip Marey, Senior US Strategist at Rabobank Summary Last Friday, the House of Representatives finally approved the bipartisan infrastructure bill. Although long overdue given the state of US infrastructure, it will hit the economy at a time of full employment and after a couple of years of high inflation. This means that the bang for the buck will be substantially eroded. The attention of Congress now turns to the health care, education and child care bill that the Democrats want to pass through reconciliation, i.e. without Republican support. However, so far Democratic unity on this bill has been more difficult to find than a bipartisan majority for infrastructure spending. Meanwhile, the December 3 deadline for the debt ceiling and government funding is approaching rapidly. Introduction Last Friday, Nancy Pelosi made a U-turn and surprised everybody with the announcement that the House of Representatives would vote on the infrastructure bill and then take a procedural vote on the reconciliation bill, holding it for final passage until there was a CBO score. Until then, the two bills were tied together, as progressive Democrats were not willing to approve the infrastructure bill before the reconciliation bill (aimed at health care, education, child care), and moderate Democrats did not want to pass the reconciliation bill before the infrastructure bill. In order to break the deadlock, Pelosi called the progressives’ bluff and offered the CBO-contingent solution proposed by the Black Caucus. Although the progressives were not happy about this, they folded. While 6 Democrats defected, 13 Republicans more than made up for them. A victory for centrists in both parties, but those in the Democratic Party now have their hands tied to the numbers that the CBO comes up with for the reconciliation bill. And of course a victory for Nancy Pelosi, who finally took the risk of challenging the progressives. Ironically, she needed moderate Republicans to save the infrastructure bill from defecting progressive Democrats such as AOC. Economic impact: what’s the bang for the buck? While the law is presented as a $1 trillion infrastructure package, this includes spending on infrastructure the government had already planned for the next decade. The additional spending amounts to about $550 billion for roads, passenger railways, subway systems, airports, ports, power facilities, and broadband networks. The funds are expected to start flowing in the second half of 2022, but the bulk would be spent in 2024 and later. If an infrastructure plan arrives during a slowdown or recession, the bang for the buck is relatively high. Unemployed construction workers can get a job and idle machines are put to use. However, this time the recession is already behind us and we are even experiencing labor shortages. By the time the bulk of the infrastructure activities should start, the economy is expected to be at full employment. Note that the Fed expects to hike before the end of 2022 because of full employment. This means that the infrastructure builders will compete for workers and machines that are expected to be short in supply to begin with by 2024. This will make the projects more expensive, so the bang for the buck is much lower than in case of a recession. What’s more, with high inflation in 2021 and a large part of 2022, higher prices of materials and equipment will also erode the purchasing power of the infrastructure package. This comes on top of monopoly power in for example freight railroads and broadband, which is reducing the bang for the buck in any phase of the business cycle. So after Trump slashed taxes during an economic expansion, Biden now launches an infrastructure spending package into full employment. The timing of US economic policies seems a bit off in recent years. Instead of counter-cyclical fiscal policies they have turned cyclical. Evidently, the political cycle trumps the business cycle in DC. Still, infrastructure spending has long-term benefits that will outlive the business cycle. Especially, in the US which has an outdated infrastructure compared to some other industrialized nations. What’s more, from a cyclical perspective the next recession could still hit the economy before the decade of additional infrastructure spending is over. In terms of additional annual GDP growth, estimates reach at most 0.1 to 0.2 percentage points in the coming years and even less in later years. So not a major change in economic growth. Electoral impact: too late for this and next year’s elections The electoral limitations of the infrastructure plan for the Democrats are twofold. In the first place, this is a bipartisan bill, supported by a minority of Republicans. Although most Republicans voted against it, the yes voters were predominantly from swing districts, increasing their electability next year. Meanwhile, the majority of Republicans will continue to claim that only a small portion of the infrastructure package ($110 billion) goes to traditional infrastructure, and that the package is not paid for (the CBO estimated that it would increase federal borrowing by $256 billion over 10 years). In the second place, the bulk of the benefits will not arrive until 2024. Democrats will argue that the infrastructure package will alleviate supply chain bottlenecks, but voters are not likely to reap the benefits prior to the November 2022 midterm elections. Meanwhile, rampant inflation is eroding the purchasing power of middle and lower class voters, while the Fed continues to pump up the stock portfolios of wealthy voters until June next year. (Note that tapering is not tightening.) This means that the voters will mostly experience higher prices and constrained supply before the midterm elections in November next year. But at least Biden can claim he has delivered a bipartisan bill, which swing voters may appreciate more than the progressive reconciliation bill. This could help rebuild his tarnished image. However, the passage of the infrastructure bill came too late to help Democratic candidates in last week’s elections, which did not go very well for them. Reconciliation is next Congress is on recess this week and returns on November 15. On top of the agenda will be the $1.75 trillion reconciliation bill. It is difficult to keep track of what’s in the reconciliation bill. Last Wednesday, Pelosi put the four weeks of paid family leave and negotiated changes on prescription drugs and immigration back in the reconciliation bill. These changes are likely to be rejected by the Senate, but Pelosi seems done waiting for what Manchin and Sinema exactly want before starting the process on the reconciliation bill. We are likely to see more changes, especially after the bill has been sent to the Senate. It is interesting to note that these days it seems easier to pass a bipartisan bill than a Democrats-only reconciliation bill. In fact, if moderate Republicans had not come to the rescue, the infrastructure bill would have failed in the House because of Democratic defections. While the bipartisan infrastructure bill had already passed the Senate prior to Friday’s passage in the House, the reconciliation bill still has to be approved by both the House and the Senate. It could take weeks before the CBO has finalized its full analysis of the reconciliation bill, but lawmakers may be satisfied with a few preliminary projection tables. So Congress will be focused on the reconciliation bill during the remainder of November. Don’t forget the deadlines However, there is a December 3 deadline for the debt ceiling and government funding. McConnell already said last month the Democrats were on their own next time. It remains to be seen if he will blink again in this game of chicken, but if he does not, the Democrats would have to include a raise in the debt ceiling in the reconciliation bill. However, the Democrats are again betting on a bipartisan increase in the debt limit. If the debt ceiling is not raised in time, the extraordinary measures taken by the Treasury Department are expected to run out after December 3 and a federal government default would become inevitable sometime between mid-December and mid-February according to estimates by the Bipartisan Policy Center. What’s more, if no government funding bill or continuing resolution is passed by December 3, the federal government will have to shut down partially in early December. Note that a continuing resolution would prevent a shutdown, but imply a substantial cut in defense spending. Unfortunately, the reconciliation bill may take up most of Congress’ time in coming weeks, leaving little time for the two fiscal deadlines. Conclusion While this bipartisan infrastructure law was long overdue given the state of US infrastructure, it will hit the economy at a time of full employment and after a couple of years of high inflation. This means that the bang for the buck will be substantially eroded. The attention of lawmakers now turns to the health care, education and child care bill that the Democrats want to pass through reconciliation, i.e. without Republican support. So far this has been more difficult than reaching bipartisan agreement on an infrastructure bill. As we noted earlier, President Biden is trying to hold together a broad and shaky coalition. Tyler Durden Tue, 11/09/2021 - 18:25.....»»

Category: blogSource: zerohedgeNov 9th, 2021

Atotech Reports Third Quarter 2021 Results and Narrows 2021 Full-Year Guidance Range

Generates third quarter revenue of $383 million, an increase of 18% over the prior-year period, including chemistry organic revenue growth of 6% Reports net income of $19 million, an increase of 75% compared to Q3 2020 Delivers Adjusted EBITDA of $112 million, a 10% increase over the prior-year period Net leverage decreased to 3.1x Confirms guidance for full year 2021 organic revenue growth, which is expected to be in the range of 13% to 14%, including full year chemistry organic revenue growth of approximately 10% Narrows guidance for full year 2021 Adjusted EBITDA1, which is anticipated to be in the range of $440 million to $450 million. BERLIN, Germany, Nov. 09, 2021 (GLOBE NEWSWIRE) --  Atotech (NYSE:ATC), a leading specialty chemicals technology company and a market leader in advanced electroplating solutions, today reported financial results for the third quarter of 2021. The company maintained its revenue guidance and narrowed the Adjusted EBITDA guidance range for the full year 2021. Chemistry organic revenue growth, a key performance indicator for the Company, increased 6% over the third quarter of 2020. Chemistry organic revenue growth reflects chemistry revenue growth excluding the impact of foreign exchange translation ("FX") and palladium pass-through ("palladium"). Management Commentary Geoff Wild, Atotech's Chief Executive Officer said, "We are pleased by our strong third quarter performance. Atotech delivered results fully in-line with our expectations and our nine-months results are at record levels, despite the continuing disruption of global supply chains. The strength of demand and the resilience of our business model enables us to feel comfortable reiterating our full-year guidance. "This quarter, we saw strong demand in our Electronics segment for our semiconductor-related businesses as well as IC-substrates. In our GMF segment, we experienced good demand for construction-related products, partially offset by a slowdown in demand from the automotive OEMs, which was primarily felt towards the end of the quarter. We also observed increasing demand for our sustainability-related products. "As expected, in Q3 we saw freight costs decline from the first half; however, this improvement was counter-balanced by broad-based inflationary pressure, including raw material price increases. As a result, we have implemented price increases to our customers to mitigate those effects and will be rolling those price increases out over the coming months." Third-quarter 2021 Results Total revenue was $383 million for the third quarter of 2021, an increase of 18% over the prior-year period. Total organic revenue, which reflects total revenue excluding the impact of FX and palladium, increased 10%. Over the quarter, FX provided a 4% tailwind and palladium increased total revenue by a further 4%. These results were supported by organic growth in chemistry revenue of 6%. Adjusted EBITDA was $112 million for the third quarter of 2021, a 10% increase over the prior-year period, reflecting the chemistry organic volume growth and FX tailwinds, partially offset by increased costs associated with higher raw-material, freight and energy costs. Diluted earnings per share was $0.10 for the period ended September 30, 2021, and Adjusted EPS was $0.27. Adjusted EBITDA margin was 29% for the third quarter of 2021. The decline reflects the margin dilution from higher palladium prices as well as broad-based inflation in raw material costs. Third-quarter 2021 Segment Highlights Electronics: Revenue for the third quarter of 2021 in our Electronics segment was $254 million, an increase of 23% over the prior-year period. Total organic revenue grew 13%, consisting of 7% chemistry organic growth and a 60% increase in equipment organic revenue. Palladium pass-through increased revenue by 6% and FX was a 4% tailwind for the quarter. The Electronics organic revenue increase was driven by continued demand for the Company's advanced semiconductor packaging and IC-substrate solutions. End-market demand for computing applications and automobile electrification continued to gain momentum, but the overall slowdown in the Automobile sector for Electronics was also noticeable. As in prior quarters this year, the global build-out of production capacity for PCBs and semiconductors translated into strong demand for our equipment. Adjusted EBITDA for our Electronics segment was $84 million for the third quarter of 2021, an 18% increase over the prior-year period, primarily driven by chemistry volume growth. Adjusted EBITDA margin was 33%, a decline of 135 basis points, driven by dilution from higher palladium prices and the product-mix effect from lower gross- margin equipment revenue. General Metal Finishing: Revenue for the third quarter of 2021 in our GMF segment was $129 million, an increase of 9% over the prior-year period. Total organic GMF revenue increased 5%, consisting of 6% chemistry organic revenue growth and a 29% decline in organic revenue for equipment. Palladium and FX added 1% and 3% to revenue for the quarter, respectively. Chemistry organic revenue growth was primarily a function of continued recovery from the pandemic-depressed markets of 2020, supported by continued strength in sanitary and construction end-markets as well as sustainability projects. Automotive end-market demand slowed towards the end of the quarter. Adjusted EBITDA for our GMF segment was $28 million, an 8% decline compared to the prior-year quarter, primarily reflecting broad-based inflation in raw materials. Full Year 2021 Guidance Regarding the Company's 2021 outlook, Peter Frauenknecht, Atotech's Chief Financial Officer said, "As a result of our solid third quarter, we reiterate our revenue guidance. We continue to expect full year 2021 total organic revenue growth to be in the range of 13% to 14%, including full year organic growth in chemistry revenue of approximately 10%, which excludes the impact of FX and palladium pass-through. Additionally, we now expect full year 2021 adjusted EBITDA to be in the range of $440 million to $450 million, which represents a $2.5 million improvement over our prior guidance, at the mid-point." MKS Transaction On July 1, 2021, MKS Instruments, Inc. ("MKS"), a global provider of technologies that enable advanced processes and improve productivity, and Atotech Limited announced that they had entered into a definitive agreement pursuant to which MKS will acquire Atotech for $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech common share (the "MKS Transaction"). The MKS Transaction is to be effected by means of a scheme of arrangement under Article 125 of the Companies (Jersey) Law 1991 (as amended). The MKS Transaction has been unanimously approved by the MKS and Atotech boards of directors and each of the resolutions put to the Company's shareholders at the court meeting and the general meeting convened in connection with the MKS Transaction, which were each held on November 3, 2021, were passed by the requisite majority of votes. The closing of the MKS Transaction remains subject to the approval of the Royal Court of Jersey, regulatory approvals, and other customary closing conditions, and is expected to close by the fourth quarter of 2021. Conference Call In light of the pending transaction with MKS, the Company will not host a conference call today. Cautionary Statement Regarding Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "target," and similar expressions and variations or negatives of these words. These forward-looking statements, which are subject to risks, uncertainties, and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies, and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, and such differences could be material. We undertake no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances. More information on potential factors that could affect Atotech's financial results is available in "Forward-Looking Statements", the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" within Atotech's most recent Annual Report on Form 20-F, and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission (the "SEC"), and such factors include, but are not limited to: the uncertainty of the magnitude, duration, geographic reach, impact on the global economy of the COVID-19 pandemic, as well as the current and potential travel restrictions, stay-at-home orders, and other economic restrictions implemented to address it; uncertainty, downturns, and changes in our target markets; foreign currency exchange rate fluctuations; reduced market acceptance and inability to keep pace with evolving technology and trends; loss of customers; increases in costs or reductions in the supplies of raw materials that may materially adversely affect our business, financial condition, and results of operations; our ability to provide products and services in light of changing environmental, health and safety, product liability, financial, and other legislation and regulation; our failure to compete successfully in product development; our ability to successfully execute our growth initiatives, business strategies, and operating plans; whether the secular trends we expect to drive growth in our business materialize to the degree we expect them to, or at all; material costs relating to environmental and health-and-safety requirements or liabilities; underfunded defined benefit pension plans; risk that the insurance we maintain may not fully cover all potential exposures; failure to comply with the anti-corruption laws of the United States and various international jurisdictions; tariffs, border adjustment taxes, or other adverse trade restrictions and impacts on our customers' value chains; political, economic, and legal uncertainties in China, the Chinese government's control of currency conversion and expatriation of funds, and the Chinese government's policy on foreign investment in China; regulations around the production and use of chemical substances that affect our products; the United Kingdom's withdrawal from the European Union; weak intellectual property rights in jurisdictions outside the United States; intellectual property infringement and product liability claims; our substantial indebtedness; our ability to obtain additional capital on commercially reasonable terms may be limited; risks related to our derivative instruments; our ability to attract, motivate, and retain senior management and qualified employees; increased risks to our global operations including, but not limited to, political instability, acts of terrorism, taxation, and unexpected regulatory and economic sanctions changes, among other things; natural disasters that may materially adversely affect our business, financial condition, and results of operations; the inherently hazardous nature of chemical manufacturing that could result in accidents that disrupt our operations and expose us to losses or liabilities; damage to our brand reputation; Carlyle's ability to control our common shares; risks relating to the proposed MKS Transaction, including that such transaction may not be consummated, any statements of belief and any statements of assumptions underlying any of the foregoing; and other factors beyond our control. Additional Information and Where to Find It Shareholders may obtain a free copy of the scheme document published by Atotech on September 28, 2021 in relation to the MKS Transaction (the "Scheme Document") and other documents Atotech files with the SEC (when available) through the website maintained by the SEC at www.sec.gov. The Scheme Document is also available free of charge on Atotech's investor relations website at investors.atotech.com together with copies of materials it files with, or furnishes to, the SEC. No Offer or Solicitation This communication is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the proposed MKS Transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. The proposed MKS Transaction will be implemented solely pursuant to the scheme of arrangement, subject to the terms and conditions of the definitive agreement between MKS and Atotech, dated July 1, 2021, which contains the full terms and conditions of the proposed MKS Transaction. Non-IFRS Financial Measures This communication contains certain non-IFRS financial measures designed to complement the financial information presented in accordance with IFRS because management believes such measures are useful to investors. However, our use of these non-IFRS financial measures may vary from that of others in our industry. Our non-IFRS metrics have limitations as analytical tools, and you should not consider them in isolation or as alternatives to consolidated net income (loss) or other performance measures derived in accordance with IFRS as measures of operating performance, operating cash flows or liquidity. The Company believes that these measures are important and supplement discussions and analysis of its results of operations and enhances an understanding of its operating performance. See the Appendix for a reconciliation of the non-IFRS financial measures. About Atotech Atotech is a leading specialty chemicals technology company and a market leader in advanced electroplating solutions. Atotech delivers chemistry, equipment, software, and services for innovative technology applications through an integrated systems-and-solutions approach. Atotech solutions are used in a wide variety of end-markets, including smartphones and other consumer electronics, communications infrastructure, and computing, as well as in numerous industrial and consumer applications such as automotive, heavy machinery, and household appliances. Atotech, headquartered in Berlin, Germany, is a team of 4,000 experts in over 40 countries generating annual revenues of $1.2 billion (2020). Atotech has manufacturing operations across Europe, the Americas, and Asia. With its well-established innovative strength and industry-leading global TechCenter network, Atotech delivers pioneering solutions combined with unparalleled on-site support for over 9,000 customers worldwide. For more information about Atotech, please visit us at atotech.com. Financial Statement Tables ATOTECH LIMITED Income Statement   Three months ended(unaudited) ($ in millions), except earnings per share Sept 30, 2021 Sept 30, 2020 Revenue $ 383.0   $ 325.4   Cost of sales, excluding depreciation and amortization   (193.2 )   (142.9 ) Depreciation and amortization   (44.0 )   (44.3 ) Selling, general and administrative expenses   (72.2 )   (71.3 ) Research and development expenses   (14.2 )   (13.2 ) Restructuring benefit (expenses)   (0.1 )   (0.1 ) Operating profit (loss)   59.3     53.7   Interest expense   (14.5 )   (36.2 ) Other income (expense), net   (2.1 )   10.8   Income (loss) before income taxes   42.7     28.3   Income tax expense   (23.3 )   (17.3 ) Consolidated net income (loss) $ 19.4   $ 11.1   Earnings per share     Basic earnings (loss) per share   0.10     (0.25 ) Diluted earnings (loss) per share   0.10     (0.25 )   Three months ended(unaudited) ($ in millions) Sept 30, 2021 Sept 30, 2020 Consolidated net income (loss) $ 19.4   $ 11.1   Other comprehensive income (loss)     Actuarial gains and losses   1.5     (4.7 ) Tax effect   (0.5 )   1.4   Items not potentially reclassifiable to statement of income   1.1     (3.3 ) Currency translation adjustment   (35.2 )   65.5   Hedge reserve   (0.1 )   (3.6 ) Thereof: Income (cost) of Hedging (OCI II)   0.3     3.7   Items potentially reclassifiable to statement of income (loss), net of tax   (35.3 )   61.9   Total other comprehensive income (loss), net amount.....»»

Category: earningsSource: benzingaNov 9th, 2021

Orchard Therapeutics Reports Third Quarter 2021 Financial Results and Highlights Recent Business Updates

Updates from OTL-201 Clinical Proof-of-Concept Study in MPS-IIIA and OTL-204 Preclinical Study for GRN-FTD at ESGCT Showcase Potential for HSC Gene Therapy in Multiple Neurodegenerative Disorders Launch Activities for Libmeldy® Across Key European Countries, including Reimbursement Discussions, Progressing in Anticipation of Treating Commercial Patients Frank Thomas, President and Chief Operating Officer, to Step Down Following Transition in 2022; Search for a Chief Financial Officer Initiated   Cash and Investments of Approximately $254M Provide Runway into First Half 2023 BOSTON and LONDON, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Orchard Therapeutics (NASDAQ:ORTX), a global gene therapy leader, today reported financial results for the quarter ended September 30, 2021, as well as recent business updates and upcoming milestones. "This quarter, we are pleased by the progress demonstrated by our investigational neurometabolic HSC gene therapy programs with promising preclinical and clinical updates at ESGCT," said Bobby Gaspar, M.D., Ph.D., chief executive officer of Orchard. "With follow-up in OTL-201 for MPS-IIIA patients now ranging between 6 and 12 months, biomarker data remain highly encouraging, showing supraphysiological enzyme activity and corresponding substrate reductions in the CSF and urine. The launch strategy for Libmeldy is also advancing in Europe with momentum building on reimbursement discussions and patient finding activities." Recent Presentations and Business Updates Data presentations at ESGCT Clinical and pre-clinical data from across the company's investigational hematopoietic stem cell (HSC) gene therapy portfolio were featured in two oral and seven poster presentations at the European Society of Gene & Cell Therapy Congress (ESGCT) on October 19-22. Highlights from key presentations are summarized below: OTL-201 for Mucopolysaccharidosis type IIIA (MPS-IIIA): A poster presentation featured supportive biomarker data from the first four patients with evaluable results, with duration of follow-up ranging from 6 to 12 months. The treatment has been generally well-tolerated in all enrolled patients (n=5) with no treatment-related serious adverse events (SAEs). Supraphysiological N-sulphoglucosamine sulphohydrolase (SGSH) enzyme activity above the normal range was seen in leukocytes and plasma within one to three months in all evaluable patients (n=4). A greater than 90% reduction in urinary glycosaminoglycans (GAGs) was seen within three months in all evaluable patients (n=4). SGSH activity in the cerebrospinal fluid (CSF) increased from undetectable at baseline to within or above the normal range by six months in all patients with available data (n=3). CSF GAGs decreased from baseline in patients with available data (n=3). OTL-204 for Progranulin-mutated Frontotemporal Dementia (GRN-FTD):   Preliminary in vivo data from the preclinical proof-of-concept study showed that murine GRN-/- HSPCs, transduced with an LV expressing progranulin under the control of a novel promoter, are able to engraft and repopulate the brain myeloid compartment of FTD mice and to locally deliver the GRN enzyme. R&D Investor Event Summary In September, Orchard hosted an R&D investor event highlighting its discovery and research engine in HSC gene therapy, including an update on the OTL-104 program in development for NOD2 Crohn's disease (NOD2-CD) and potential new applications in HSC-generated antigen-specific regulatory T-cells (Tregs) and HSC-vectorization of monoclonal antibodies (mAbs). The discussion also covered the differentiated profile of Orchard's HSC gene therapy approach, which has exhibited favorable safety, long-term durability and broad treatment applicability. In particular, Orchard's lentiviral vector-based HSC gene therapy programs have shown no indication of insertional oncogenesis and no evidence of clonal dominance due to integration into oncogenes. Importantly, the promoters and regulatory elements of Orchard vectors are derived from human (not viral) sequences and are specifically designed to have limited enhancer activity on neighboring genes thereby mitigating the potential for safety concerns. In addition, because of the fundamental biological differences between the HSC and adeno-associated virus (AAV) gene therapy approaches, Orchard's programs have not, to date, seen the safety and durability concerns experienced by the AAV gene therapy field. Libmeldy (atidarsagene autotemcel) launch in Europe Orchard is providing an update on the following key launch activities for Libmeldy in Europe: Discussions with health authorities and payors are underway across Europe in key markets including Germany, the UK, France and Italy. Qualification of treatment centers is progressing with The University of Tübingen in Germany ready to treat commercial patients and other centers in the final stages of qualification and treatment readiness. Disease awareness and patient identification activities continue and have supported patient referrals in major European centers. Orchard's partnerships in the Middle East and Turkey allow for opportunities to treat eligible patients from these territories at qualified European centers. Orchard is providing sponsorship for an ongoing newborn screening pilot in Germany and is working with laboratories to implement pilots in Italy, the UK, France and Spain. Executive organizational update The company also announced that Frank Thomas will step down from his role as president and chief operating officer, following a transition in 2022. A search for a chief financial officer is underway. Mr. Thomas' other responsibilities will be assumed by existing members of the leadership team in commercial and corporate affairs. Orchard recently strengthened the executive team with the appointments of Nicoletta Loggia as chief technical officer and Fulvio Mavilio as chief scientific officer and the promotion of Leslie Meltzer to chief medical officer.  "I want to extend my gratitude to Frank Thomas for his immense contributions to Orchard," said Gaspar. "During his tenure, Frank oversaw the transition of the organization to a publicly traded company and has managed operations with a focus on cross-company innovation, including his role as a key architect in creating and executing the focused business plan we rolled out in 2020. Along with the entire board of directors and leadership team, I appreciate Frank's commitment to facilitate a smooth transition during this time." Gaspar continued, "Our search is focused on a CFO to lead the broad strategic planning efforts necessary to capitalize on the full potential of our hematopoietic stem cell gene therapy platform. We have a strong team in place to aid Orchard's success in this next phase of growth and are well capitalized through the anticipated completion of several value-creating milestones." Upcoming Milestones In June 2021, Orchard announced several portfolio updates following recent regulatory interactions for the company's investigational programs in metachromatic leukodystrophy (MLD), Mucopolysaccharidosis type I Hurler syndrome (MPS-IH) and Wiskott-Aldrich syndrome (WAS). OTL-200 for MLD in the U.S: Based on feedback received from the U.S. Food and Drug Administration (FDA), the company is preparing for a Biologics License Application (BLA) filing for OTL-200 in pre-symptomatic, early-onset MLD in late 2022 or early 2023, using data from existing OTL-200 patients. This approach and timeline are subject to the successful completion of activities remaining in advance of an expected pre-BLA meeting with FDA, including future CMC regulatory interactions and demonstration of the natural history data as a representative comparator for the treated population. OTL-203 for MPS-IH: Orchard is incorporating feedback from FDA and the European Medicines Agency (EMA) into a revised global registrational study protocol, with study initiation expected to occur in 2022. OTL-201 for MPS-IIIA: Additional interim data from this proof-of-concept study are expected to be presented at medical meetings in 2022, including early clinical outcomes of cognitive function. OTL-103 for WAS: The company expects a MAA submission with EMA for OTL-103 in WAS in 2022, subject to the completion of work remaining on potency assay validation and further dialogue with EMA. The company will provide updated guidance for a BLA submission in the U.S. following additional FDA regulatory interactions. Third Quarter 2021 Financial Results Revenue from product sales of Strimvelis were $0.7 million for the third quarter of 2021 compared to $2.0 million in the same period in 2020, and cost of product sales were $0.2 million for the third quarter of 2021 compared to $0.7 million in the same period in 2020. Collaboration revenue was $0.5 million for the third quarter of 2021, resulting from the collaboration with Pharming Group N.V. entered into in July 2021. This revenue represents expected reimbursements for preclinical studies and a portion of the $17.5 million upfront consideration received by Orchard under the collaboration, which will be amortized over the expected duration of the agreement. Research and development (R&D) expenses were $20.8 million for the third quarter of 2021, compared to $14.7 million in the same period in 2020. The increase was primarily due to higher manufacturing and process development costs for the company's neurometabolic programs and lower R&D tax credits as compared to the same period in 2020. R&D expenses include the costs of clinical trials and preclinical work on the company's portfolio of investigational gene therapies, as well as costs related to regulatory, manufacturing, license fees and development milestone payments under the company's agreements with third parties, and personnel costs to support these activities. Selling, general and administrative (SG&A) expenses were $13.0 million for the third quarter of 2021, compared to $13.0 million in the same period in 2020. SG&A expenses are expected to increase in future periods as the company builds out its commercial infrastructure globally to support additional product launches following regulatory approvals. Net loss was $36.4 million for the third quarter of 2021, compared to $20.3 million in the same period in 2020. The increase in net loss as compared to the prior year was primarily due to higher R&D expenses as well as the impact of foreign currency transaction gains and losses. The company had approximately 125.5 million ordinary shares outstanding as of September 30, 2021. Cash, cash equivalents and investments as of September 30, 2021, were $254.1 million compared to $191.9 million as of December 31, 2020. The increase was primarily driven by net proceeds of $143.6 million from the February 2021 private placement and $17.5 million in upfront payments from the July 2021 collaboration with Pharming Group N.V., offset by cash used for operating activities and capital expenditures. The company expects that its cash, cash equivalents and investments as of September 30, 2021 will support its currently anticipated operating expenses and capital expenditure requirements into the first half of 2023. This cash runway excludes an additional $67 million that could become available under the company's credit facility and any non-dilutive capital received from potential future partnerships or priority review vouchers granted by the FDA following future U.S. approvals. About Libmeldy / OTL-200 Libmeldy (atidarsagene autotemcel), also known as OTL-200, has been approved by the European Commission for the treatment of MLD in eligible early-onset patients characterized by biallelic mutations in the ARSA gene leading to a reduction of the ARSA enzymatic activity in children with i) late infantile or early juvenile forms, without clinical manifestations of the disease, or ii) the early juvenile form, with early clinical manifestations of the disease, who still have the ability to walk independently and before the onset of cognitive decline. Libmeldy is the first therapy approved for eligible patients with early-onset MLD. The most common adverse reaction attributed to treatment with Libmeldy was the occurrence of anti-ARSA antibodies. In addition to the risks associated with the gene therapy, treatment with Libmeldy is preceded by other medical interventions, namely bone marrow harvest or peripheral blood mobilization and apheresis, followed by myeloablative conditioning, which carry their own risks. During the clinical studies, the safety profiles of these interventions were consistent with their known safety and tolerability. For more information about Libmeldy, please see the Summary of Product Characteristics (SmPC) available on the EMA website. Libmeldy is approved in the European Union, UK, Iceland, Liechtenstein and Norway. OTL-200 is an investigational therapy in the US. Libmeldy was developed in partnership with the San Raffaele-Telethon Institute for Gene Therapy (SR-Tiget) in Milan, Italy. About Orchard At Orchard Therapeutics, our vision is to end the devastation caused by genetic and other severe diseases. We aim to do this by discovering, developing and commercializing new treatments that tap into the curative potential of hematopoietic stem cell (HSC) gene therapy. In this approach, a patient's own blood stem cells are genetically modified outside of the body and then reinserted, with the goal of correcting the underlying cause of disease in a single treatment. In 2018, the company acquired GSK's rare disease gene therapy portfolio, which originated from a pioneering collaboration between GSK and the San Raffaele Telethon Institute for Gene Therapy in Milan, Italy. Today, Orchard has a deep pipeline spanning pre-clinical, clinical and commercial stage HSC gene therapies designed to address serious diseases where the burden is immense for patients, families and society and current treatment options are limited or do not exist. Orchard has its global headquarters in London and U.S. headquarters in Boston. For more information, please visit www.orchard-tx.com, and follow us on Twitter and LinkedIn. Availability of Other Information About Orchard Investors and others should note that Orchard communicates with its investors and the public using the company website (www.orchard-tx.com), the investor relations website (ir.orchard-tx.com), and on social media (Twitter and LinkedIn), including but not limited to investor presentations and investor fact sheets, U.S. Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information that Orchard posts on these channels and websites could be deemed to be material information. As a result, Orchard encourages investors, the media, and others interested in Orchard to review the information that is posted on these channels, including the investor relations website, on a regular basis. This list of channels may be updated from time to time on Orchard's investor relations website and may include additional social media channels. The contents of Orchard's website or these channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933. Forward-Looking Statements This press release contains certain forward-looking statements about Orchard's strategy, future plans and prospects, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include express or implied statements relating to, among other things, Orchard's business strategy and goals, including its plans and expectations for the commercialization of Libmeldy, the therapeutic potential of Libmeldy (OTL-200) and Orchard's product candidates, including the product candidates referred to in this release, Orchard's expectations regarding its ongoing preclinical and clinical trials, including the timing of enrollment for clinical trials and release of additional preclinical and clinical data, the likelihood that data from clinical trials will be positive and support further clinical development and regulatory approval of Orchard's product candidates, and Orchard's financial condition and cash runway into the first half of 2023. These statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, many of which are beyond Orchard's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements.  In particular, these risks and uncertainties include, without limitation: the risk that prior results, such as signals of safety, activity or durability of effect, observed from clinical trials of Libmeldy will not continue or be repeated in our ongoing or planned clinical trials of Libmeldy, will be insufficient to support regulatory submissions or marketing approval in the US or to maintain marketing approval in the EU, or that long-term adverse safety findings may be discovered; the risk that any one or more of Orchard's product candidates, including the product candidates referred to in this release, will not be approved, successfully developed or commercialized; the risk of cessation or delay of any of Orchard's ongoing or planned clinical trials; the risk that Orchard may not successfully recruit or enroll a sufficient number of patients for its clinical trials; the risk that prior results, such as signals of safety, activity or durability of effect, observed from preclinical studies or clinical trials will not be replicated or will not continue in ongoing or future studies or trials involving Orchard's product candidates; the delay of any of Orchard's regulatory submissions; the failure to obtain marketing approval from the applicable regulatory authorities for any of Orchard's product candidates or the receipt of restricted marketing approvals; the inability or risk of delays in Orchard's ability to commercialize its product candidates, if approved, or Libmeldy, including the risk that Orchard may not secure adequate pricing or reimbursement to support continued development or commercialization of Libmeldy; the risk that the market opportunity for Libmeldy, or any of Orchard's product candidates, may be lower than estimated; and the severity of the impact of the COVID-19 pandemic on Orchard's business, including on clinical development, its supply chain and commercial programs.  Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. Other risks and uncertainties faced by Orchard include those identified under the heading "Risk Factors" in Orchard's quarterly report on Form 10-Q for the quarter ended September 30, 2021, as filed with the U.S. Securities and Exchange Commission (SEC), as well as subsequent filings and reports filed with the SEC. The forward-looking statements contained in this press release reflect Orchard's views as of the date hereof, and Orchard does not assume and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.   Condensed Consolidated Statements of Operations Data (In thousands, except share and per share data) (Unaudited)     Three months ended September 30,   Nine months ended September 30,     2021       2020      .....»»

Category: earningsSource: benzingaNov 4th, 2021

L.B. Foster Reports Third Quarter Operating Results

PITTSBURGH, Nov. 02, 2021 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ:FSTR), a leading provider of products and services for the rail industry and solutions to support critical infrastructure projects, today reported its 2021 third quarter operating results, which included the following performance highlights: Net sales for the 2021 third quarter were $130.1 million, an $11.7 million increase, or 9.9%, over the third quarter of 2020. Gross profit for the 2021 third quarter was $22.3 million, a $0.2 million improvement, or 1.0%, from the prior year quarter. The 2021 third quarter gross profit margin was 17.1% versus 18.6% in last year's comparable quarter. Selling and administrative expenses for the 2021 third quarter were $20.1 million, a $3.0 million increase, or 17.5%, over the prior year quarter. Selling and administrative expenses as a percent of net sales increased to 15.4% compared to 14.4% last year. Net income from continuing operations for the 2021 third quarter was $2.3 million, or $0.21 per diluted share, a decrease of $1.35 per diluted share from the prior year quarter. Adjusted net income from continuing operations1 was $0.2 million, or $0.02 per diluted share, compared to adjusted net income of $1.0 million, or $0.09 per diluted share, for the prior year quarter. Adjusted net income from continuing operations1 for the 2021 third quarter of 2021 excludes a net gain on the sale of the Company's Piling Products ("Piling") business of $2.0 million. Adjusted net income from continuing operations1 for 2020 third quarter excludes restructuring charges of $0.2 million and a non-recurring income tax benefit of $15.8 million resulting from the divestiture of the IOS Test and Inspection Services business. Adjusted EBITDA from continuing operations1 for the 2021 third quarter was $4.4 million, a $3.0 million decrease versus the prior year comparable quarter. Adjusted EBITDA from continuing operations for the quarter excludes a $2.7 million pre-tax gain on the sale of the Piling business. Net operating cash flow used in the third quarter totaled $13.7 million, a $21.7 million decrease compared to the prior year quarter. Net debt1 as of September 30, 2021 was $26.0 million, an $11.4 million decrease from December 31, 2020. The Company's adjusted net leverage ratio1 was 1.2x as of September 30, 2021. Backlog, as adjusted for the divestiture of the Piling business, increased by $20.4 million, or 9.8%, compared to the prior year quarter, driven by a $19.7 million increase in Infrastructure Solutions backlog. New orders totaling $125.6 million for the 2021 third quarter increased 18.5% over the prior year quarter and 10.7% sequentially, both adjusted for the Piling divestiture. 1 See "Non-GAAP Disclosures" at the end of this press release for information regarding the following non-GAAP measures from continuing operations used in this release: adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, net debt, adjusted net leverage ratio, free cash flow. CEO CommentsJohn Kasel, President and Chief Executive Officer, commented, "Third quarter revenues increased substantially year over year, driven by the strength in our rail, precast concrete products, and fabricated steel business lines. These results, coupled with significant growth in backlog and new orders versus the third quarter of 2020 as well as sequentially, positions us well for continued growth in the coming quarters. Like many industrial companies, we were impacted by raw material, labor, supply chain, service partner, and lingering covid-related disruptions during the quarter which adversely impacted our ability to execute on our order book. In addition, margins year over year continue to reflect the adverse impact in our Infrastructure Solutions segment related to weakness in the midstream energy market. Despite these challenges, overall margins improved slightly on a sequential basis due to improved business mix and our cost mitigation efforts. Orders booked in the third quarter were up both year over year and sequentially, and we continue to build momentum heading into 2022, with the potential for additional tailwinds from the pending infrastructure bill from the U.S. Federal government." Mr. Kasel added, "We believe the work accomplished during the quarter has laid the groundwork for driving growth over the next several years. We completed our comprehensive strategy reassessment, which established our playbook for transforming the Company's performance going forward. We also accomplished one of the key objectives in our strategic plan by divesting the Piling business, which generated a significant amount of capital that we believe can be redeployed to businesses with a stronger competitive position in more attractive and growing markets in order to create more value for our shareholders. This transaction was a meaningful step as we continue to improve our balance sheet. Coupled with completing the amendment to our credit facility resulting in much more favorable terms, we now have significantly more flexibility to fund both accretive, bolt-on acquisitions and investment in organic growth initiatives in our core businesses. Of course, we will continue to focus on mitigating the current operating challenges we face, but our team is energized more than ever by the vision we've established and the opportunities that lie ahead." Third Quarter Results Net sales for the third quarter of 2021 were $130.1 million, an $11.7 million increase, or 9.9%, compared to the prior year quarter due to a 15.6% increase in the Rail Technologies and Services segment ("Rail") and 3.2% increase in the Infrastructure Solutions segment net sales. The $10.0 million increase in the Rail segment was attributable to both the Rail Products and Rail Technologies business units. The $1.7 million increase in the Infrastructure Solutions segment resulted from increases in both the Fabricated Steel and Precast Concrete Products business units, partially offset by the Coatings and Measurement business unit which continued to face a challenging environment in the midstream energy market due to excess pipeline infrastructure capacity. Gross profit for the 2021 third quarter was $22.3 million, a $0.2 million increase, or 1.0%, over the prior year quarter. The consolidated gross profit margin of 17.1% decreased by 150 basis points versus last year, with the decline attributable to both segments. Infrastructure Solutions gross profit declined from the prior year quarter by $0.8 million, while Rail gross profit increased by $1.0 million. The decline in gross profit margin in Infrastructure Solutions, which was down 180 basis points compared to the prior year period, is principally attributable to the decline in revenues in the Coatings and Measurement business unit. Rail segment gross profit margin declined by 140 basis points due primarily to the product mix in Rail Technologies business unit during the current quarter. Selling and administrative expenses in the third quarter increased $3.0 million, or 17.5%, over the prior year quarter, primarily attributable to increases in personnel related costs and operating costs associated with the Piling divestiture. Selling and administrative expenses as a percent of net sales increased to 15.4%, a 100-basis point increase from the prior year quarter. Net income from continuing operations for the 2021 third quarter was $2.2 million, or $0.21 per diluted share, a $14.3 million reduction, or $1.35 per diluted share, from the prior year quarter. Adjusted net income from continuing operations1 for the third quarter of 2021 was $0.2 million, or $0.02 per diluted share compared to adjusted net income from continuing operations1 of $1.0 million or $0.09 per diluted share in the prior year quarter. Adjusted net income from continuing operations1 for the third quarter of 2021 excludes the $2.0 million net gain on the sale of the Piling business. Adjusted net income from continuing operations1 for third quarter of 2020 excludes restructuring charges, net of tax, of $0.2 million and a non-recurring income tax benefit of $15.8 million resulting from the divestiture of the IOS Test and Inspection Services business. Adjusted EBITDA from continuing operations1 for the 2021 third quarter was $4.4 million, a 40.7% decrease compared to the prior year quarter. Adjusted EBITDA from continuing operations for the quarter excludes the $2.7 million gain on the sale of the Piling business. Adjusted EBITDA from continuing operations for the prior year quarter excludes restructuring charges of $0.3 million. Over the last four quarters, the Company reduced its net debt1 from $39.8 million to $26.0 million as of September 30, 2021, a $13.7 million reduction. The Company's adjusted net leverage ratio1 was 1.2x, with total available funding capacity of $103.5 million as of September 30, 2021. Third quarter new orders were $138.9 million, an increase of $8.4 million from the prior year quarter. Excluding Piling Products, new orders were $125.6 million, up $19.6 million, or 18.5%, from the prior year quarter. New orders in the Rail and Infrastructure Solutions segments increased by $15.5 million and $4.1 million, respectively, compared to the prior year quarter excluding new orders for the divested Piling division. First Nine Months Results Net sales for the nine months ended September 30, 2021 were $400.7 million, a $18.8 million increase, or 4.9%, compared to the prior year period. The sales increase was attributable to the Rail segment, which increased 9.5% from the prior year period, partially offset by a 0.6% decrease in Infrastructure Solutions. Gross profit for the nine months ended September 30, 2021 was $67.3 million, a $6.1 million decrease, or 8.3%, from the prior year period. The 16.8% consolidated gross profit margin decreased by 240 basis points compared to the prior year period, with the decline attributable to Infrastructure Solutions. Gross profit increased $2.9 million in the Rail segment. In Infrastructure Solutions, gross profit declined from the prior year by $9.0 million, driven by the decline in revenues in the Coatings and Measurement business unit. Infrastructure Solutions' gross profit margin was down by 510 basis points compared to the prior year period. Selling and administrative expenses for the nine months ended September 30, 2021 increased by $1.6 million, or 2.8%, over the prior year period, primarily driven by increases in professional services costs. Selling and administrative expenses as a percent of net sales decreased to 14.4%, a 30-basis point decline from the prior year period. Net income from continuing operations for the nine months ended September 30, 2021 was $3.8 million, or $0.36 per diluted share, a $19.7 million reduction, or $1.85 per diluted share, from the prior year period. Adjusted net income from continuing operations1 for the nine months ended September 30, 2021 was $1.8 million, or $0.17 per diluted share compared to adjusted net income from continuing operation of $7.9 million, or $0.75 per diluted share for the prior year period. Adjusted net income from continuing operations1 for the nine months ended September 30, 2021 excludes the $2.0 million net gain on the sale of the Piling business. Adjusted net income from continuing operations1 for the nine months ended September 30, 2020 excludes restructuring and relocation costs, net of tax, of $1.7 million, a non-recurring benefit, net of tax, of $1.4 million from a distribution associated with the Company's interest in an unconsolidated partnership and a non-recurring income tax benefit of $15.8 million resulting from the sale of the IOS Test and Inspection Services business. Adjusted EBITDA from continuing operations1 for the nine months ended September 30, 2021 was $15.5 million, a 38.4% decrease compared to the prior year period. Adjusted EBITDA from continuing operations for the quarter excludes the $2.7 million gain on the sale of the Piling business. Adjusted EBITDA from continuing operations for the nine months ended September 30, 2020 excludes restructuring and relocation costs of $2.2 million and a non-recurring benefit of $1.9 million from a distribution associated with the Company's interest in an unconsolidated partnership. Operating cash used for the period was $6.8 million, as compared to $16.2 million in operating cash provided in the prior year period. The $23.0 million decrease in operating cash flows was primarily as a result of increases in working capital when compared to the prior year period, which is partially attributable to the improvement in sales volume. New orders for the nine months ended September 30, 2021 were $413.1 million, a 4.5% improvement over the prior year period. As adjusted for the Piling Products divestiture, new orders were $354.2 million for the nine months ended September 30, 2021, a $10.7 million increase, or 3.1%, over the prior year period. New orders in Infrastructure Solutions, excluding Piling, increased $4.8 million, while new orders in the Rail segment increased by $5.9 million compared to the prior year period. Market OutlookThe Company's backlog, adjusted for the divestiture of the Piling division, increased by $20.4 million, or 9.8%, over September 30, 2020. Order activity continues to strengthen, particularly in the Rail segment with $84.0 million in new orders in the third quarter, a 18.5% sequential increase and a 22.6% increase versus the third quarter of 2020. The Company is maintaining its optimistic outlook regarding longer-term trends in the North American transit and freight markets. However, global ridership levels remain depressed relative to pre-pandemic levels, a trend which is expected to continue to adversely impact the Company's friction management consumable sales, particularly in international markets. The Coatings and Measurement business line, which primarily serves midstream energy customers, is expected to remain weak despite rising energy prices as the lack of investment in energy infrastructure continues to persist. The Company is not projecting any meaningful recovery in this business unit from current levels for the foreseeable future, and will continue to adjust the cost structure of this business as appropriate to mitigate the effects of these negative market conditions as much as possible. The present inflationary environment is expected to continue to pressure margins, particularly in the Precast Concrete Products and Fabricated Steel business lines, although actions to mitigate these impacts are on-going. In addition, the Company continues to take proactive steps to manage disruptions in raw materials, labor, supply chains, service partner resources, as well as lingering covid-related effects in an attempt to mitigate their adverse impact on its operations and results as much as possible. The Company expects its businesses will continue to directly benefit from infrastructure investment activity, particularly if a U.S. Federal infrastructure bill is passed by Congress in the fourth quarter of 2021. Additionally, with the proceeds from the Piling business divestiture coupled with the additional flexibility and capacity resulting from its recently amended credit agreement, the Company believes that it has significant capability to execute on organic and acquisitive growth opportunities in 2022 and beyond. Third Quarter Conference CallL.B. Foster Company will conduct a conference call and webcast to discuss its third quarter 2021 operating results on Tuesday, November 2, 2021 at 11:00 AM ET. The call will be hosted by Mr. John Kasel, President and Chief Executive Officer. Listen via audio and access the slide presentation on the L.B. Foster web site: www.lbfoster.com, under the Investor Relations page. The conference call can also be accessed by dialing 833-614-1392 (U.S. & Canada) or 914-987-7113 (International). A conference call replay will be available through November 9, 2021. To access the replay, please dial 855-859-2056 (U.S. & Canada) or 404-537-3406 (International) and provide the access code: 5087674. The conference call replay will also be available via webcast through L.B. Foster's Investor Relations page of the company's website. About L.B. Foster CompanyL.B. Foster Company and its subsidiaries provide products and services for the rail industry and solutions to support critical infrastructure projects. The Company's innovative engineering and product development solutions address the safety, reliability, and performance of its customers' challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com. This release may contain "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements provide management's current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Sentences containing words such as "believe," "intend," "plan," "may," "expect," "should," "could," "anticipate," "estimate," "predict," "project," or their negatives, or other similar expressions of a future or forward-looking nature generally should be considered forward-looking statements. Forward-looking statements in this earnings release are based on management's current expectations and assumptions about future events that involve inherent risks and uncertainties and may concern, among other things, the Company's expectations relating to our strategy, goals, projections, and plans regarding our financial position, liquidity, capital resources, and results of operations and decisions regarding our strategic growth initiatives, market position, and product development. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. The Company cautions readers that various factors could cause the actual results of the Company to differ materially from those indicated by forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: the COVID-19 pandemic, including the impact of any worsening of the pandemic, or the emergence of new variants of the virus, on our financial condition or results of operations, and any future global health crises, and the related social, regulatory, and economic impacts and the response thereto by the Company, our employees, our customers, and national, state, or local governments, including vaccine mandates; volatility in the prices of oil and natural gas and the related impact on the upstream and midstream energy markets, which could result in further cost mitigation actions, including additional shutdowns or furlough periods; a continuation or worsening of the adverse economic conditions in the markets we serve, whether as a result of the current COVID-19 pandemic, including its impact on travel and demand for oil and gas, the volatility in the prices for oil and gas, governmental travel restrictions, project delays, and budget shortfalls, or otherwise; volatility in the global capital markets, including interest rate fluctuations, which could adversely affect our ability to access the capital markets on terms that are favorable to us; restrictions on our ability to draw on our credit agreement, including as a result of any future inability to comply with restrictive covenants contained therein; a continuing decrease in freight or transit rail traffic, including as a result of the COVID-19 pandemic; environmental matters, including any costs associated with any remediation and monitoring; the risk of doing business in international markets, including compliance with anti-corruption and bribery laws, foreign currency fluctuations and inflation, and trade restrictions or embargoes; our ability to effectuate our strategy, including cost reduction initiatives, and our ability to effectively integrate acquired businesses or to divest businesses, such as the third quarter of 2021 disposition of the Piling Products business, 2020 disposition of the IOS Test and Inspection Services business and acquisition of the LarKen Precast business, and to realize anticipated benefits; costs of and impacts associated with shareholder activism; continued customer restrictions regarding the on-site presence of third party providers due to the COVID-19 pandemic; the timeliness and availability of materials from our major suppliers, including any continuation or worsening of the disruptions in the supply chain experienced as a result of the COVID-19 pandemic, as well as the impact on our access to supplies of customer preferences as to the origin of such supplies, such as customers' concerns about conflict minerals; labor disputes; cyber-security risks such as data security breaches, malware, ransomware, "hacking," and identity theft, including as experienced in 2020, which could disrupt our business and may result in misuse or misappropriation of confidential or proprietary information, and could result in the significant disruption or damage to our systems, increased costs and losses, or an adverse effect to our reputation; the effectiveness of our continued implementation of an enterprise resource planning system; changes in current accounting estimates and their ultimate outcomes; the adequacy of internal and external sources of funds to meet financing needs, including our ability to negotiate any additional necessary amendments to our credit agreement or the terms of any new credit agreement, and reforms regarding the use of LIBOR as a benchmark for establishing applicable interest rates; the Company's ability to manage its working capital requirements and indebtedness; domestic and international taxes, including estimates that may impact taxes; domestic and foreign government regulations, including tariffs; economic conditions and regulatory changes caused by the United Kingdom's exit from the European Union; a lack of state or federal funding for new infrastructure projects; an increase in manufacturing or material costs; the loss of future revenues from current customers; and risks inherent in litigation and the outcome of litigation and product warranty claims. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. Significant risks and uncertainties that may affect the operations, performance, and results of the Company's business and forward-looking statements include, but are not limited to, those set forth under Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2020, or as updated and/or amended by our other current or periodic filings with the Securities and Exchange Commission. Investor Relations:   Stephanie Listwak L.B. Foster Company (412) 928-3417 415 Holiday Drive investors@lbfoster.com Suite 100   Pittsburgh, PA 15220 L.B. FOSTER COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except per share data)     Three Months EndedSeptember 30,   Nine Months EndedSeptember 30,     2021   2020   2021   2020                   Sales of goods   $ 112,813     $ 101,945     $ 351,668     $ 321,212   Sales of services   17,240     16,420     48,987     60,623   Total net sales   130,053     118,365     400,655     381,835   Cost of goods sold   93,521     82,881     292,733     263,537   Cost of services sold   14,256     13,423     40,655     44,977   Total cost of sales   107,777     96,304     333,388     308,514   Gross profit   22,276     22,061     67,267     73,321   Selling and administrative expenses   20,056     17,066     57,849     56,273   Amortization expense   1,462     1,428     4,397     4,271   Interest expense - net   722     940     2,454     2,841   Other income - net   (2,880 )   (209 )   (2,751 )   (1,909 ) Income from continuing operations before income taxes   2,916     2,836     5,318     11,845   Income tax expense (benefit) from continuing operations   676     (13,742 )   1,494     (11,698 ) Income from continuing operations   2,240     16,578     3,824     23,543   Net loss attributable to noncontrolling interest   (30 )   —     (64 )   —   Income from continuing operations attributable to L.B. Foster Company   2,270     16,578     3,888     23,543          .....»»

Category: earningsSource: benzingaNov 2nd, 2021

Will China Pop The Global Everything Bubble? (Spoiler Alert: Yes)

Will China Pop The Global Everything Bubble? (Spoiler Alert: Yes) Authored by Charles Hugh Smith via OfTwoMinds blog, The line of dominoes that is already toppling extends around the entire global economy and financial system. Plan accordingly. That China faces structural problems is well-recognized. The list of articles in the August issue of Foreign Affairs dedicated to China reflects this: Xi's Gamble: the Race to Consolidate Power and Stave Off Disaster China's Economic Reckoning: The Price of Failed Reforms The Robber Barons of Beijing: Can China Survive its Gilded Age? Life of the Party: How Secure Is the CCP? (Chinese Communist Party) These are thorny, difficult issues: a demographic cliff resulting from the one-child policy, soaring wealth-income inequality, pervasive corruption, public health issues (diabesity, etc.), environmental damage and a slowing economy. What the conventional analysts do not fully grasp, in my view, are 1) the existential threat to the CCP and China's economy posed by its unprecedented, metastasizing credit-asset bubble and 2) its incipient energy crisis. As I explained in a recent blog post, What's Really Going On in China?, the CCP and the government informally institutionalized moral hazard (the disconnection of risk and consequence) as a core economic policy. Every financial loss, no matter how risky or debt-ridden, was covered by the state (via bail-out, refinancing debt, new loans, etc.) as a "cost of rapid development," a reflection of the view that some inefficiency and waste was inevitable in the rapid development of industry, housing, infrastructure and a consumer economy. What China's leaders did not fully understand was this implicit guarantee of bail-outs--the equivalent of "The Fed has our backs"--incentivized debt-funded speculation as the lowest-risk, highest-return "investment," especially when compared to low-profit, risky investments in low-margin export industries. (Recall the average profit margins of Chinese exporting enterprises is 1% to 3%.) This is the hidden driver of China's sagging productivity and economy: debt in all sectors is skyrocketing to fund speculation, not productivity. This institutionalization of moral hazard has incentivized the least productive and highest-risk gambles--not just for large conglomerates like EverGrande, but for middle-class households who've invested in the shadow-banking system (unregulated private-sector pools of capital lent out to risky borrowers at high rates of interest) and bought second, third and fourth "investment" flats. The contradictions in this mass investing of savings in empty condos are systemic and dangerous: 1) once a flat is rented, it loses value due to being "used" and 2) the vast majority of the market for "investment" flats is illiquid, as most new buyers want a new flat, not an old one, so the market for old flats is extremely thin outside the most desirable inner rings of Beijing and Shanghai. This mass investment in illiquid empty flats has generated social and financial perversities: now that flats in desirable areas cost 30-40 times an average white-collar salary, young people must vacuum up the entire extended family's savings in order to afford a flat. Those young men who are unable to buy a flat find their marriages prospects are dismal. One result of the marriage of state control and private-sector Wild-West speculation is a truly vast wealth-income divide that is bound up with corruption in a mutually reinforcing feedback: the richer you become, the closer to power you get, and vice versa. Since China's informal shadow-banking system is opaque even to state regulators, it's quite possible that China's leaders do not have a full grasp of the extent of systemic risk bound up in the excesses of shadow banking. To paraphrase Donald Rumsfeld's famous dictum, this is an unknown unknown for China's policy makers. This truly monumental accumulation of debt and speculation is now an existential threat to the Party on two levels: 1) since all bubbles pop regardless of any other conditions, when this bubble pops, the economic blow will be severe enough to threaten the Party's control of the economy 2) the crushing of phantom wealth will cause people to seek a scapegoat, and the Party is Target #1 since it coddled the well-connected and wealthy but did not protect the 99% from the dire consequences of the bubble bursting. Having engineered the bubble's expansion by creating mountains of debt and implicit promises of bail-outs, the CCP and government have backed themselves into a corner: there is no pain-free way to deflate a speculative bubble of such astounding proportions. Considering the life history of President Xi (especially his first-hand experience of the Cultural Revolution 1966-1976), his writings and his consolidation of power, it is very clear to me that Xi understands the bubble is close to escaping his control and so time is short and the policy options are limited to triage, that is, saving the healthiest and letting Nature take care of those closest to expiring. I also see evidence that Xi grasps the absolute need to break the near-universal confidence that the state will bail out everyone who borrows and speculates so wildly that their gambles go bad. The general assumption is that "China can't afford to let Evergrande fail" because this enormous conglomerate will obviously topple many dominoes, generating great financial pain. I think the that President Xi's view is the opposite: "we can't afford to bail out Evergrande" because that would open the floodgates of moral hazard that Xi is trying to close. The state bailing out private-sector gamblers (and state-owned enterprises) is what led to the massive moral hazard-debt bubble that Xi is determined to pop now while he still can control the process. In other words, President Xi understands this is the do-or-die moment to regain control of an out-of-control moral hazard driven financial bubble, and the only way to do so is to push the losses onto everyone with exposure, the driver being the stark choice to either regain control by popping the bubble now or letting it expand and implode in an uncontrolled (and hence Party-threatening) fashion. Xi concluded that the first step to being able to push the losses onto everyone with exposure to speculative bets was to consolidate power to such a degree that the usual self-interested factions that would use their power to evade the consequences could be forced to accept their share of the losses. Given the history and structure of the Party, this required Xi to extend his control to levels not seen since Deng or Mao. In my view, Xi correctly concluded the hour was getting late and the institutional resistance to the end of the implicit promises of state bailouts and endless debt expansion could only be overcome if his political power was near-absolute. The popping of moral hazard and the debt-speculation bubble are necessary to preserve CCP and state power; half-measures that protected corrupt cronies would only increase the public's outrage when the bubble finally burst. In this light, Xi's multi-year campaign against the most visible corruption and his recent touting of "common prosperity" have set the stage for his forcing the end of moral hazard and the controlled demolition of the excesses of debt and speculation that have harmed the economy and threatened the control of the CCP. Now comes the grand ironies. China's ability to generate stupendous amounts of new debt basically bailed out the global economy in 2008-09, 2015-16 and 2020. Yes, the Federal Reserve bailed out the global banking sector (to the tune of $16 trillion in backstops and credit lines) in 2008-09 and inflated a speculative bubble in the U.S. by creating $3.5 trillion in quantitative easing, but China's expansion of debt was an equally important source of global demand, which is what stopped global economies from sinking into recession. The cost of these "saves" were not understood at the time: the elevation of moral hazard to quasi-religious status in the U.S. and China and the expansion of debt-funded speculative bubbles to unprecedented heights. There are only two policy options: 1) Grasp the nettle and refuse to bail out debt-funded speculative excesses, thereby popping the Everything Bubble, or 2) play the game of keeping the bubble expanding until it implodes on its own, an end-game made inevitable by the systemic instabilities intrinsic to bubbles. Xi has correctly chosen Policy #1, and to do so has positioned the Party as the defender of the people, i.e. anti-corruption, shackling the Big Tech billionaires like Jack Ma, and announcing that the state will not bail out EverGrande. The Federal Reserve and the political leadership of the U.S. have foolishly chosen Policy #2, inflating the bubble while letting the consequences of this moral hazard bubble--wealth-income inequality and corruption--explode higher, fatally undermining the credibility of both the Fed and America's political class. As the supply chain disruptions have revealed, the global economy and financial system are tightly bound systems, and as such are extraordinarily exposed to the risks of cascading collapses as key nodes become chokepoints or break down. While the Federal Reserve prints trillions to further inflate the bubble, the global energy shortages are already crippling key sectors in the economies of China and the EU. Reality is about to intrude on the Fed's fantasy that speculative bubbles can remain disconnected from the real-world economy forever. In summary: the popping of the global Everything Bubble is not Xi's goal; it is the inevitable second-order effect (collateral damage) of China's debt-speculation bubble popping. Given the tightly-bound financial system, the collapse of EverGrande is far more the story of dominoes toppling rather than direct losses: it's not the direct losses that will bring down the global financial system, it's the dominoes toppling as those who take the direct losses implode and become insolvent, missing their loan/bond payments, being unable to meet their counterparty obligations, and so on. The consensus in the West is that China cannot afford to let its bubble pop because the pain will be so severe. Those who believe this have a poor grasp of Chinese history, especially in the 20th century. If crashing China's bubble is the nuclear option, Xi has reason to be confident he can push the pain level to 11 and most will accept it, and those who don't will join Jack Ma in forced retirement. I reckon Xi views ending moral hazard and popping the bubble in China as a situation that will only get worse the longer he puts it off. The grand irony now is that rather than saving the global economy by expanding its own debt bubble, China will pop the global Everything Bubble. To state the obvious, being a linchpin in the global economy makes China a consequential domino. Anyone who thinks the Fed's speculative bubble in the U.S. can magically become immune to the collapse of tightly-bound dominoes is indulging in magical thinking. China's extreme excesses of debt and speculation are already unraveling, and Xi is backed into a corner. There is no cost-free escape, only triage, and Xi has charted a path to preserve the Party's control by forcing everyone with exposure to absorb the inevitable losses when unprecedented bubbles pop. The line of toppling dominoes extends around the entire global economy and financial system. Plan accordingly. *  *  * This essay was first published as a weekly Musings Report sent exclusively to subscribers and patrons at the $5/month ($54/year) and higher level. Thank you, patrons and subscribers, for supporting my work and free website. If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com. My recent books: A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF). Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF). Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF). The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF). Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).   Tyler Durden Sun, 10/31/2021 - 13:30.....»»

Category: smallbizSource: nytOct 31st, 2021

Portland General Electric Announces Third Quarter 2021 Results

PORTLAND, Ore., Oct. 29, 2021 /PRNewswire/ -- Portland General Electric Company (NYSE:POR) today reported net income of $50 million, or 56 cents per diluted share, for the third quarter of 2021. This compares with a loss of $17 million, or 19 cents per diluted share, for the third quarter of 2020, which reflects the $1.09 loss per diluted share from previously disclosed trading losses. "While high temperatures and power market volatility significantly impacted our region and results this quarter, our year-to-date performance is on track," said Maria Pope, PGE president and CEO. "We are pleased to be issuing the renewable RFP in December, an important step in meeting our decarbonization goals while also ensuring we have sufficient generating capacity as we transition to a clean energy future." Third Quarter 2021 Compared to Third Quarter 2020 Total revenues were driven by higher retail energy deliveries, due to strong residential demand, growth in high-tech manufacturing, and the impacts of warmer weather. Purchased power and fuel expense increased in part due to lower hydro and wind production. Operating expenses increased, primarily driven by additional vegetation management for wildfire prevention. Administrative expenses increased primarily due to normalization of incentive expenses compared to the prior year and wage and benefit pressures.  Lower tax expense was associated with asset retirement timing differences. Company Updates Advancing Plans to Add Renewables and Non-Emitting Resources As previously announced, PGE estimates that it will need to nearly triple the amount of clean and renewable energy serving customers, in addition to removing coal from its portfolio. As a result, PGE estimates by 2030 it will need approximately 1,500 to 2,000 MW of clean and renewable resources and approximately 800 MW of non-emitting dispatchable capacity resources. PGE is seeking approximately 1,000 MW of renewable and non-emitting capacity resources by initiating its public request for proposals process in December. Request for Proposals (RFP): PGE expects to bring on at least 375 to 500 MW of renewable resources and 375 MW of non-emitting dispatchable capacity by the end of 2024. If beneficial to customers and in balance with affordability, PGE will work with the Oregon Public Utilities Commission (OPUC) to evaluate the opportunity to procure additional resources through this RFP with a potential target of achieving one-third of the clean resources needed to meet its 2030 emission reduction targets. Green Future Impact: As part of the RFP, PGE will seek to procure an incremental 100 MW for this program. 2022 General Rate Case Update In October, PGE reached agreement with all interested parties in its 2022 General Rate Case on cost of capital issues. The agreement supports a capital structure of 50% debt and 50% equity, a 9.5% return on equity and a 6.8% cost of capital, which reflects updates for actual and forecasted debt costs. The stipulation remains subject to OPUC approval. PGE will continue to work with parties throughout this proceeding on all other remaining elements of the case. A final order is expected in April 2022. PGE has proposed prices to go into effect on May 9, 2022. Significant Progress on Strategic Sustainability Goals Distribution System Plan: In October, PGE filed its inaugural Distribution System Plan (DSP) that paves the way for innovative planning to upgrade the grid and accelerate clean energy resources using approaches that align with community priorities. Voluntary Renewable Energy Program: For the twelfth consecutive year, PGE's voluntary renewable energy program was ranked number one in the nation by the National Renewable Energy Laboratory. PGE has more than 200,000 customers voluntarily enrolled in its Green Future Program, making it the largest in the nation. Green Financing Program: In October, PGE announced a series of actions in support of integrating sustainability into its financing plans, establishing a Green Financing Framework, issuing an inaugural green bond, and amending its revolving credit facility to include sustainability-linked provisions. 2020 Environmental, Social and Governance Report: In September, PGE released a comprehensive ESG report which aligns with the Task Force on Climate-Related Financial Disclosures (TCFD) framework and describes how the company plans to move forward on its clean energy goals, environmental stewardship commitments, community engagement programs, and diversity, equity, and inclusion journey. For more information visit www.portlandgeneral.com/about/who-we-are/sustainability. Quarterly Dividend As previously announced, on October 26, 2021, the board of directors of Portland General Electric Company declared a quarterly common stock dividend of $0.43 per share. The quarterly dividend is payable on or before January 18, 2022 to shareholders of record at the close of business on December 27, 2021. 2021 Earnings Guidance PGE is reaffirming its estimate for full-year 2021 earnings guidance of $2.70 to $2.85 per diluted share based on the following assumptions: An increase in annual energy deliveries of 2.5% to 3.0%, weather-adjusted, which reflects year over year: Commercial segment growth, as economic recovery has taken hold earlier and more rapidly than anticipated; Strong growth in the industrial segment reflecting expansions in high tech manufacturing and digital services; These increases are partially offset by a decrease in residential demand as customers spend less time at home; Normal temperatures in its utility service territory for the remainder of the year; Hydro conditions for the remainder of the year that reflect current estimates; Wind generation based on five years of historical levels or forecast studies when historical data is not available; Normal thermal plant operations for the remainder of the year; Capital expenditures of $700 million; Average construction work in progress balance from $340 million to $390 million; Operating and maintenance expense from between $605 million and $625 million; Depreciation and amortization expense between $410 million and $430 million; Effective tax rate of 10% to 15%; Cash from operations from between $575 and $625 million, which represents the cash timing difference of regulatory deferrals; No new common equity to be issued for investment or operations; and Continuation of existing regulatory mechanisms and deferrals during 2021. Third Quarter 2021 Earnings Call and Webcast — October 29, 2021 PGE will host a conference call with financial analysts and investors on Friday, October 29, 2021, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, October 29, 2021, through 2 p.m. ET on Friday, November 5, 2021. Maria Pope, president and CEO; Jim Ajello, senior vice president of Finance, CFO, and treasurer; and Jardon Jaramillo, senior director, Investor Relations, Treasury, and Risk Management, will participate in the call. Management will respond to questions following formal comments. Non-GAAP Financial Measures Management believes that excluding the effects of the energy trading losses provides a meaningful representation of the Company's comparative earnings per share. The Company has adjusted this amount to maintain comparability between periods. The effect of the energy trading losses was $1.09 per diluted share. PGE's reconciliations of non-GAAP earnings for the three and nine months ended September 30, 2020 are below. Non-GAAP Earnings Reconciliation for the three and nine months ended September 30, 2020 (Dollars in millions, except EPS) Net Income (Loss) Diluted EPS GAAP-based as reported for the three months ended September 30, 2020 $ (17) $ (0.19) Exclusion of certain trading losses 127 1.42 Tax effect (1) (30) (0.33) Non-GAAP-based as reported for the three months ended September 30, 2020 $ 80 $ 0.90 GAAP-based as reported for the nine months ended September 30, 2020 $ 103 $ 1.15 Exclusion of certain trading losses 127 1.42 Tax effect (1) (30) (0.33) Non-GAAP-based as reported for the nine months ended September 30, 2020 $ 200 $ 2.24 (1) Tax effects are determined based on the Company's forecasted annual effective tax rate applied to year-to-date ordinary income or loss The attached unaudited condensed consolidated statements of income and comprehensive income, condensed consolidated balance sheets and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release. About Portland General Electric Company Portland General Electric (NYSE:POR) is a fully integrated energy company based in Portland, Oregon, with operations across the state. The company serves approximately 900,000 customers with a service area population of 2 million Oregonians in 51 cities. PGE owns 16 generation plants across Oregon and other Northwestern states and maintains and operates 14 public parks and recreation areas. For over 130 years, PGE has delivered safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. PGE and its 3,000 employees are working with customers to build a clean energy future, with goals of achieving at least an 80% reduction in greenhouse gas (GHG) emissions by 2030 and 100% reduction in GHG emissions by 2040. In 2021, PGE became the first U.S. utility to join The Climate Pledge. In 2020, PGE, employees, retirees and the PGE Foundation donated $5.6 million and volunteered 18,200 hours with more than 400 nonprofits across Oregon. For the eighth year in a row PGE achieved a perfect score on the 2021 Human Rights Campaign Foundation's Corporate Equality Index, a national benchmarking survey and report on corporate policies and practices related to LGBTQ workplace equality. For more information visit www.PortlandGeneral.com/news. Safe Harbor Statement Statements in this release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements represent our estimates and assumptions as of October 29, 2021. The Company assumes no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. Forward-looking statements include statements regarding the Company's full-year earnings guidance (including expectations regarding annual retail deliveries, average hydro conditions, wind generation, normal thermal plant operations, operating and maintenance expense and depreciation and amortization expense) as well as other statements containing words such as "anticipates," "assumes," "believes," "conditioned upon," "estimates," "expects," "intends," "plans," "projected," "promises," "seeks," "should," and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including, without limitation:  demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the Company's generation and battery storage facilities, including hydro conditions, wind conditions, disruption of transmission and distribution, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the Company's inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy market conditions, which could affect the availability and cost of purchased power and fuel; the development of alternative technologies; changes in capital and credit market conditions, which could affect the access to and availability of cost of capital and result in delay or cancellation of capital projects or execution of the Company's strategic plan as currently envisioned; the outcome of various legal and regulatory actions; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or third party liability; cyber security breaches of the Company's customer information system or operating systems, data security breaches, or acts of terrorism, which could disrupt operations, require significant expenditures, or result in claims against the Company; PGE business activities are concentrated in one region and future performance may be affected by events and factors unique to Oregon; and widespread health emergencies or outbreaks of infectious diseases such as the novel coronavirus disease (COVID-19), which may affect our financial position, results of operations and cash flows. As a result, actual results may differ materially from those projected in the forward-looking statements.   Prospective investors should also review the risks and uncertainties listed in the Company's most recent annual report on Form 10-K and the Company's reports on Forms 8-K and 10-Q filed with the United States Securities and Exchange Commission (SEC), including management's discussion and analysis of financial condition and results of operations and the risks described therein from time to time. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov and on the Company's website, investors.portlandgeneral.com. Investors should not rely unduly on any forward-looking statements. POR Source: Portland General Company     PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOMEAND COMPREHENSIVE INCOME(Dollars in millions, except per share amounts)(Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Revenues, net $ 654 $ 556 $ 1,811 $ 1,589 Alternative revenue programs, net of amortization (12) (9) (23) — Total revenues 642 547 1,788 1,589 Operating expenses: Purchased power and fuel 259 292 613 554 Generation, transmission and distribution 80 65 236 215 Administrative and other 82 63 247 208 Depreciation and amortization 101 108 305 320 Taxes other than income taxes 37 35 110 104 Total operating expenses 559 563 1,511 1,401 Income (loss) from operations 83 (16) 277 188 Interest expense, net 33 35 100 102 Other income:.....»»

Category: earningsSource: benzingaOct 29th, 2021

See inside the $500 million Legacy Tower in Miami, a 55-story "pandemic-ready" condo complex that will include a hotel and high-tech medical center

Legacy Tower at Miami Worldcenter is a $500 million skyscraper ready for any future pandemics. It'll house residences, a hotel, and a medical center. Legacy Tower at Miami Worldcenter is being billed as the world's first "pandemic-ready" skyscraper. The 55-story, $500 million building will be part hotel, part residences, and part medical facility. It'll have things like cleaning robots, voice-operated elevators, operating rooms, and medical labs. COVID-19 wasn't the world's first pandemic, and it likely won't be our last either, experts say.In Florida, developers are bracing for the world's next pandemic with construction of a new 55-story, $500 million skyscraper.The building is called Legacy Tower at Miami Worldcenter, and it's being billed as "the world's first COVID-Conscious, Pandemic-Ready, all-in-one, residential, hotel and medical center skyscraper," according to a press release. It involves a partnership between Adventist Health, Accor Hotels, developer Royal Palm Companies, and human longevity research organization Blue Zones."During the best of times, our travelers, residents and members get to experience a true luxury lifestyle hotel and residences with the perks of being attached to a state-of-the-art Blue Zones medical and wellbeing center," Royal Palm Companies CEO Daniel Kodsi told Insider."And during the worst of times, Legacy will be one of the cleanest-designed buildings you can shelter safely in during pandemics - with access to health professionals, a pharmacy, medical- grade air quality and cleaning, food delivery and more. If you do get sick, advanced medical help is just downstairs from your room for a safe place to quarantine while you recover, close to family and loved ones staying nearby in the building," he added.As far as its living spaces go, the tower will feature 310 Microluxe residences and 219 hotel rooms, as well as amenities like lounges, restaurants, shops, and a rooftop infinity pool.The building's "pandemic-ready" features include disinfection robots, voice-activated elevators, medical imaging facilities, surgery rooms, and an on-site pharmacy, lab, and medical team.Here's what the tower is expected to look like when it's finished: Groundbreaking for the tower began in August. This rendering shows what it may look like when it's complete. Legacy Miami Worldcenter/Royal Palm Companies According to its website, the tower is being built with four key trends in mind: the growth of luxury travel, the rise of vacation rentals, consumer desire for lifestyle experiences, and the demand for wellness and medical tourism. Legacy Miami Worldcenter/Royal Palm Companies Inside, you'll find several lobbies throughout the tower, including this one. Legacy Miami Worldcenter/Royal Palm Companies Just down the hall is a store of items commonly used in Kampo, a traditional Japanese herbal medicine system with roots in China. Legacy Miami Worldcenter/Royal Palm Companies At the end of the hall is a juice bar looking onto the city. Legacy Miami Worldcenter/Royal Palm Companies Some of the tower's "pandemic-ready" features include UV disinfecting ventilation systems, a robotic parking garage, touchless entry systems, and voice-activated elevators. Legacy Miami Worldcenter/Royal Palm Companies As far as health facilities go, the tower will have 10 floors of medical facilities, including an area called The Center for Health + Performance. Legacy Miami Worldcenter/Royal Palm Companies The center will include a futuristic-looking "biolab." Rooms here look relatively unassuming from the outside... Legacy Miami Worldcenter/Royal Palm Companies ...but have essentially floor-to-ceiling panels inside to show patients a wide range of personal health information. Legacy Miami Worldcenter/Royal Palm Companies Other biolabs in the building might look more like this, according to a different rendering. Legacy Miami Worldcenter/Royal Palm Companies There are also plans for a bike room, complete with a futuristic unicycle exercise bike and a massive screen to immerse you in nature during your ride. Legacy Miami Worldcenter/Royal Palm Companies The room will also have medical exam rooms, which visitors can wait for in this lounge. Legacy Miami Worldcenter/Royal Palm Companies Here's a look at the inside of one of the exam rooms. Legacy Miami Worldcenter/Royal Palm Companies In addition, the tower will have operating rooms, medically equipped hotel rooms for post-surgical patients, and imaging facilities for MRIs, CT scans, X-rays, mammograms, and ultrasounds.There will also be a pharmacy, dispensary, lab and on-call medical team of doctors, nurses, therapists, and other healthcare professionals. Besides medical facilities, the tower will have 310 Microluxe residences. One of the room configurations is expected to look something like this. Legacy Miami Worldcenter/Royal Palm Companies On one side is the master bedroom. Legacy Miami Worldcenter/Royal Palm Companies Here's the master bathroom nearby. Legacy Miami Worldcenter/Royal Palm Companies Just outside is a dining area. Legacy Miami Worldcenter/Royal Palm Companies Directly behind that is a wardrobe, minibar, and kitchen. Legacy Miami Worldcenter/Royal Palm Companies The adjacent living room overlooks the city. Legacy Miami Worldcenter/Royal Palm Companies Another room configuration will look more like this. Legacy Miami Worldcenter/Royal Palm Companies In this layout, the living room is directly to the right of the master bed, separated by a curtain. Legacy Miami Worldcenter/Royal Palm Companies Here, the wardrobe, desk, and kitchen are just opposite the bed. Legacy Miami Worldcenter/Royal Palm Companies On the other side of the bed, also separated by a curtain, is the bathroom. Legacy Miami Worldcenter/Royal Palm Companies The residences have floor-to-ceiling windows, as seen in this living room during the day... Legacy Miami Worldcenter/Royal Palm Companies ...and at night... Legacy Miami Worldcenter/Royal Palm Companies ...and even in this bathroom. Legacy Miami Worldcenter/Royal Palm Companies Among its many amenities, the tower has a rooftop atrium and event space. Legacy Miami Worldcenter/Royal Palm Companies Here's a closer look at it. Legacy Miami Worldcenter/Royal Palm Companies Here's what you might see sitting in the sky lounge looking out onto the city during the day. Legacy Miami Worldcenter/Royal Palm Companies And here's how it'd look at night. Legacy Miami Worldcenter/Royal Palm Companies Just outside is a rooftop pool. Legacy Miami Worldcenter/Royal Palm Companies Elsewhere in the building, guests will find this technology bar. Legacy Miami Worldcenter/Royal Palm Companies There are also lounges, restaurants, shops, a spa, and more. Construction on the tower is expected to finish in 2024. Legacy Miami Worldcenter/Royal Palm Companies "With Legacy Hotel & Residences being the first to have a COVID-conscious and pandemic-ready design, it sets the stage for the future of real estate and building design," Royal Palm Companies CEO Daniel Kodsi told Insider. Legacy Miami Worldcenter/Royal Palm Companies "Future developments will now more seriously consider incorporating medical-grade filtration systems, UV sterilization, voice-activated elevators and touchless room key access as essential amenities for the safety of their residents and guests," Kodsi said. Legacy Miami Worldcenter/Royal Palm Companies Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 21st, 2021

Tri Pointe Homes, Inc. Reports 2021 Third Quarter Results

-Diluted Earnings Per Share of $1.17--Homebuilding Gross Margin Percentage of 26.3%--Monthly Absorption Rate of 4.1--Backlog Units up 14% Year-Over-Year--Backlog Dollar Value up 17% Year-Over-Year- INCLINE VILLAGE, Nev., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the "Company") (NYSE:TPH) today announced results for the third quarter ended September 30, 2021. "Tri Pointe Homes generated a significant year-over-year increase in profitability in the third quarter of 2021, driven by strong revenue growth and margin expansion," said Doug Bauer, Chief Executive Officer of Tri Pointe Homes. "Our teams did an excellent job navigating the supply chain issues that persist in our industry, enabling us to post a 25% year-over-year increase in deliveries. With the strong pricing power we have experienced this year, our homebuilding gross margin was 26.3% for the quarter, which is a record for our company. The combination of increased deliveries and greater margins resulted in net income of $133.2 million for the quarter, or $1.17 per diluted share, representing year-over-year growth of 69% and 92%, respectively." Mr. Bauer continued, "Our return on average tangible equity was 20.8%* on a trailing twelve-month basis following our third quarter results, representing a 650-basis-point improvement over the same period last year. Our steadily improving return profile has been driven in large part by several strategic initiatives we have implemented, which include better asset turns, a more land-light strategy, consistent share repurchases, the maturation of our early-stage divisions and enhanced operational and process improvements. We have been extremely pleased with the way these initiatives have led to meaningful improvements to our return on average tangible equity and believe the strategic changes we have made will continue to benefit our stockholders." Mr. Bauer concluded, "With a robust backlog, a healthy demand outlook and a strong balance sheet, Tri Pointe Homes is poised to finish 2021 on a high note and carry that momentum into 2022. We believe a number of the demand drivers that are currently in place should persist for the foreseeable future, creating an excellent operating environment for our company. As a result, we are extremely optimistic about the future of Tri Pointe Homes." Results and Operational Data for Third Quarter 2021 and Comparisons to Third Quarter 2020 Net income was $133.2 million, or $1.17 per diluted share, compared to $78.7 million, or $0.61 per diluted share. Home sales revenue of $1.0 billion compared to $826.0 million, an increase of 25% New home deliveries of 1,632 homes compared to 1,303 homes, an increase of 25% Average sales price of homes delivered of $630,000 compared to $634,000, a decrease of 1% Homebuilding gross margin percentage of 26.3% compared to 22.1%, an increase of 420 basis points Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 28.8%** SG&A expense as a percentage of homes sales revenue of 9.6% compared to 9.8%, a decrease of 20 basis points Net new home orders of 1,349 compared to 1,933, a decrease of 30% Active selling communities averaged 109.0 compared to 134.0, a decrease of 19% Net new home orders per average selling community were 12.4 orders (4.1 monthly) compared to 14.4 orders (4.8 monthly) Cancellation rate of 9% in each period Backlog units at quarter end of 3,619 homes compared to 3,188, an increase of 14% Dollar value of backlog at quarter end of $2.4 billion compared to $2.1 billion, an increase of 17% Average sales price of homes in backlog at quarter end of $671,000 compared to $648,000, an increase of 4% Ratios of debt-to-capital and net debt-to-net capital of 36.3% and 24.3%**, respectively, as of September 30, 2021 Repurchased 2,974,328 shares of common stock at a weighted average price per share of $21.93 for an aggregate dollar amount of $65.2 million in the three months ended September 30, 2021 Ended the third quarter of 2021 with total liquidity of $1.2 billion, including cash and cash equivalents of $587.4 million and $589.9 million of availability under the Company's unsecured revolving credit facility * Return on average tangible equity is calculated as net income for the trailing twelve months divided by average stockholders' equity less goodwill and other intangible assets for the trailing five quarters ** See "Reconciliation of Non-GAAP Financial Measures" "We continued to see excellent demand for our homes during the third quarter of 2021, as evidenced by our sales pace of 4.1 orders per community per month," said Tri Pointe Homes President and Chief Operating Officer Tom Mitchell. "The order activity was broad-based both in terms of geography and price point, a sign that there is wide-ranging appeal for our premium brand and innovative new home designs. We intend to capitalize on this continued demand by opening over 100 new communities through the next five quarters and expect to end 2022 with approximately 40% more active communities than the previous year. We are excited about our growth prospects in the coming quarters and believe we are in a great position to benefit from the strong housing fundamentals that continue to drive new home demand." Outlook For the full year, the Company expects to open approximately 70 new communities and end the year with between 110 and 115 active selling communities. In addition, the Company anticipates delivering between 6,000 and 6,300 homes at an average sales price between $635,000 and $640,000. The Company expects homebuilding gross margin percentage to be in the range of 24.5% to 25.0% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 9.8% to 10.2%. Finally, the Company expects its effective tax rate for the full year to be approximately 25%. Earnings Conference Call The Company will host a conference call via live webcast for investors and other interested parties beginning at 10:00 a.m. Eastern Time on Thursday, October 21, 2021.  The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer, and Glenn Keeler, Chief Financial Officer. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company's website at presentation slides on the internet through the Investors section of the Company's website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes Third Quarter 2021 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the call. A replay of the call will be available for two weeks following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13723766. An archive of the webcast will also be available on the Company's website for a limited time. About Tri Pointe Homes, Inc. One of the largest homebuilders in the U.S., Tri Pointe Homes® (NYSE:TPH) is a publicly traded company and a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities in 10 states, with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. Tri Pointe has won multiple Builder of the Year awards, most recently in 2019, and made Fortune magazine's 2017 100 Fastest-Growing Companies list. Named one of the Best Places to Work by the Orange County Business Journal for four consecutive years, Tri Pointe Homes also became a Great Place to Work-CertifiedTM company in 2021. For more information, please visit TriPointeHomes.com. Forward-Looking Statements Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements that are included in this press release are generally accompanied by words such as "anticipate," "believe," "could," "estimate," "expect," "future," "goal," "guidance," "intend," "likely," "may," "might," "outlook," "plan," "potential," "predict," "project," "should," "strategy," "target," "will," "would," or other words that convey future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of the ongoing COVID-19 pandemic, which are highly uncertain and subject to rapid change, cannot be predicted and will depend upon future developments, including the emergence and spread of new strains or variants of COVID-19, the severity and the duration of the outbreak, the duration of existing and future social distancing and shelter-in-place orders, further mitigation strategies taken by applicable government authorities, the availability and acceptance of effective vaccines, adequate testing and treatments and the prevalence of widespread immunity to COVID-19; the impacts on our supply chain, the health of our employees, service providers and trade partners, and the reactions of U.S. and global markets and their effects on consumer confidence and spending; the effects of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations, particularly within California; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, and labor; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in California; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or outbreaks of contagious diseases, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers' confidential information or other forms of cyber-attack; and additional factors discussed under the sections captioned "Risk Factors" included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business. Investor Relations Contact: Drew Mackintosh, Mackintosh Investor RelationsInvestorRelations@TriPointeHomes.com, 949-478-8696 Media Contact: Carol Ruiz, cruiz@newgroundco.com, 310-437-0045   KEY OPERATIONS AND FINANCIAL DATA (dollars in thousands) (unaudited)   Three Months Ended September 30,   Nine Months Ended September 30,   2021   2020   Change   % Change   2021   2020   Change   % Change Operating Data: (unaudited) Home sales revenue $ 1,028,950     $ 826,036     $ 202,914       25   %   $ 2,754,932     $ 2,187,816     $ 567,116       26   % Homebuilding gross margin $ 270,926     $ 182,580     $ 88,346       48   %   $ 690,337     $ 470,044     $ 220,293       47   % Homebuilding gross margin % 26.3 %   22.1 %   4.2   %       25.1 %   21.5 %   3.6   %     Adjusted homebuilding gross margin %* 28.8 %   25.0 %   3.8   %       27.9 %   24.4 %   3.5   %     SG&A expense $ 98,365     $ 81,037     $ 17,328       21   %   $ 276,926     $ 246,259     $ 30,667       12   % SG&A expense as a % of home sales revenue 9.6 %   9.8 %   (0.2 ) %       10.1 %   11.3 %   (1.2 ) %     Net income $ 133,156     $ 78,682     $ 54,474       69   %   $ 321,827     $ 167,093     $ 154,734       93   % Adjusted EBITDA* $ 215,880     $ 140,792     $ 75,088       53   %   $ 543,945     $ 329,519     $ 214,426       65   % Interest incurred $ 24,280     $ 20,063     $ 4,217       21   %   $ 68,017     $ 62,670     $ 5,347       9   % Interest in cost of home sales $ 25,656     $ 23,495     $ 2,161       9   %   $ 77,185     $ 62,118     $ 15,067       24   %                                 Other Data:                               Net new home orders 1,349     1,933     (584 )     (30 ) %   4,958     4,926     32       1   % New homes delivered 1,632     1,303     329       25   %   4,303     3,490     813       23   % Average sales price of homes delivered $ 630     $ 634     $ (4 )     (1 ) %   $ 640     $ 627     $ 13       2   % Cancellation rate 9 %   9 %   0   %       7 %   14 %   (7 ) %     Average selling communities 109.0     134.0     (25.0 )     (19 ) %   112.1     138.8     (26.7 )     (19 ) % Selling communities at end of period 109     126     (17 )     (13 ) %                 Backlog (estimated dollar value) $ 2,428,412     $ 2,067,366     $ 361,046       17   %                 Backlog (homes) 3,619     3,188     431       14   %                 Average sales price in backlog $ 671     $ 648     $ 23       4   %                                                   September 30,   December 31,                           2021   2020   Change   % Change                 Balance Sheet Data: (unaudited)                             Cash and cash equivalents $ 587,405     $ 621,295     $ (33,890 )     (5 ) %                 Real estate inventories $ 3,136,477     $ 2,910,142     $ 226,335       8   %                 Lots owned or controlled 38,777     35,641     3,136       9   %                 Homes under construction (1) 4,097     3,044     1,053       35   %                 Homes completed, unsold 18     68     (50 )     (74 ) %                 Debt $ 1,343,782     $ 1,343,001     $ 781       0   %                 Stockholders' equity $ 2,354,136     $ 2,232,537     $ 121,599       5   %                 Book capitalization $ 3,697,918     $ 3,575,538     $ 122,380       3   %                 Ratio of debt-to-capital 36.3 %   37.6 %   (1.3 ) %                     Ratio of net debt-to-net capital* 24.3 %   24.4 %   (0.1 ) %                     (1) Homes under construction included 83 and 86 models at September 30, 2021 and December 31, 2020, respectively. * See "Reconciliation of Non-GAAP Financial Measures" CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)   September 30,   December 31,   2021   2020 Assets (unaudited)     Cash and cash equivalents $ 587,405     $ 621,295   Receivables 86,926     63,551   Real estate inventories 3,136,477     2,910,142   Investments in unconsolidated entities 75,046     75,056   Goodwill and other intangible assets, net 156,603     158,529   Deferred tax assets, net 43,618     47,525   Other assets 147,610     145,882   Total assets $ 4,233,685     $ 4,021,980           Liabilities       Accounts payable $ 119,699     $ 79,690   Accrued expenses and other liabilities 416,056     366,740   Loans payable 257,381     258,979   Senior notes 1,086,401     1,084,022   Total liabilities 1,879,537     1,789,431           Commitments and contingencies               Equity       Stockholders' equity:       Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively —     —   Common stock, $0.01 par value, 500,000,000 shares authorized; 112,386,496 and 121,882,778 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 1,124     1,219   Additional paid-in capital 145,004     345,137   Retained earnings 2,208,008     1,886,181   Total stockholders' equity 2,354,136     2,232,537   Noncontrolling interests 12     12   Total equity 2,354,148     2,232,549   Total liabilities and equity $ 4,233,685     $ 4,021,980   CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)   Three Months Ended September 30,   Nine Months Ended September 30,   2021   2020   2021   2020 Homebuilding:    .....»»

Category: earningsSource: benzingaOct 21st, 2021