E.W. Scripps Company (SSP) – Stepping Up To The OTT Plate

Posted on May 10, 2021 by Admin

Monday, May 10, 2021

E.W. Scripps Company (SSP)
Stepping Up To The OTT Plate

The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation’s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 results exceed expectations. Total company revenues of $540.9 million exceeded our estimate of $526.3 million by 2.8%, with core advertising the largest upside variance to our estimates. Q1 Adjusted EBITDA far exceeded our estimates, $140.8 million versus our estimate of $107.4 million, as the company benefited from cost synergies from its January purchase of Ion Media.

Company provides guidance. Given the improved revenue visibility, management reinstated providing guidance for the upcoming quarter and provided more color full year free cash flow generation. The guidance was above our Q2 expectations …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.

CoreCivic, Inc. (CXW) – Post Call Update

Posted on May 10, 2021 by Admin

Monday, May 10, 2021

CoreCivic, Inc. (CXW)
Post Call Update

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A Fluid Situation. The situation in the Safety segment remains fluid. Again, the key issue is the USMS. We continue to believe there does not exist an acceptable and available alternative to the private industry. On the positive side, two facilities in which the USMS is currently exiting are in-demand from various State Department of Corrections. This should help mitigate the USMS impact, at least in the near-term.

Alabama. The Alabama project continues to move forward, although it has been pushed to the right due to the Barclay’s situation. In addition, a lawsuit has been filed to stop the construction of the facilities. We would note again that the State is under Federal Court order to improve conditions at its facilities …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Tulip Mania Compared to Cryptocurrencies and Meme Stock Investing

Posted on May 8, 2021 by Admin

From Tulips and Scrips to Bitcoin and Meme Stocks – How the Act of Speculating Became a Financial Mania

In the late 1990s, America experienced a dot-com mania. In the 2000s, the housing market went wild.

Today, there are manias in everything from bitcoin and nonfungible tokens to SPACs and meme stocks – obscure corners of the market that are getting increased attention. Whether these are the next bubbles to burst remains to be seen.

The sudden rise of all these relatively new asset classes – or the astronomical heights they’ve reached – may seem irrational or even enchanted. Describing them as speculative manias implies that individuals are lost in forces beyond their control and needn’t take responsibility for the actions of the crowd.

But, as I learned while researching my book “Speculation: A Cultural History from Aristotle to AI,” which will be published in June 2021, financial speculation hasn’t always been understood as a widespread craze – or even outside of individual choice.

Adam Smith and the rise of financial speculation

From ancient times until the late 1700s, the term “speculation” was used mainly by philosophers, scientists and authors to describe conjectures about the future. When speaking of traders who manipulated the prices of an asset to make an outsize profit, financial writers instead used terms like “engrossing” or “cornering” the market.

After a series of international credit scandals in the 1770s, though, “speculation” became the favored descriptor for high-risk financial gambling. Political economist Adam Smith used the term extensively in “Wealth of Nations,” published in 1776, after seeing it used to describe lotteries and smuggling. He saw in it a perfect term for how traders were trying to capitalize exponentially on the inherent risks and unknowns of the future.

George Washington even warned in 1779 that speculators “are putting the rights & liberties of this Country into the most eminent danger.”

Yet Smith, Washington and others still saw speculators of all types as individuals making calculated decisions, not as part of some maniacal collective or epidemic contagion.

Alexander Hamilton’s ‘Scripomania’ Takes Hold

That began to change thanks largely to the early American physician and thinker Benjamin Rush.

As surgeon general of the Continental Army and a prolific publisher of studies of mental illness, Rush penned a widely circulated article in 1787, “On the Different Species of Mania.” In it, he characterized speculative gambling alongside 25 other types of “manias” that he wrote had become pronounced in American life, including “land mania,” “horse mania,” “machine mania” and “monarchical mania.”

For Rush, speculation was a disease of the mind that spread from one to many and threatened the health of a young democracy that relied on rational decision-making by voters and politicians. The “spirit of speculation,” he foresaw, was not a good-hearted “spirit” of nation building, but rather could “destroy patriotism and friendship in many people.”

Rush’s terminology and his way of thinking caught on quickly. In the summer of 1791, “Scripomania” took hold as Alexander Hamilton sold the rights to buy shares – known as scrips for “subscriptions” – in the newfound Bank of the United States to shore up the nation’s finances following the Revolutionary War. Demand for the scrips soared; the Philadelphia General Advertiser declared that “an inveterate madness for speculation seems to possess this country!”

Calculated risk – minus the calculation

After that, the tie between “speculation” and “mania” spread and became inextricable – and it hasn’t been severed since. The Scottish journalist Charles Mackay sealed this connection in 1841 with his influential “Extraordinary Popular Delusions and the Madness of Crowds.” Since then, virtually every bubble, every rush in commodities and every market panic that has ensued has been called a “mania.”

The term has even been used retrospectively to refer to the behaviors that led to speculative bubbles in the distant past. The famous Dutch tulip bubble of 1637, for instance, was seen in its day as foolish and dangerous, but only after Mackay’s book was it labeled a “mania.”

The trouble with talking about wild financial events in this way is that society begins to confuse and distort the responsibility and nature of bubbles that inevitably crash, leaving ruin in their wake.

To speculate, at its core, is to make a bet about the future based on individual calculations of the risks of tomorrow. There’s nothing inherently contagious or mad about it. In fact, computers are often speculating now in place of human minds.

What we call a “mania” is just shorthand for saying that a lot of people – and machines – made the same bet, as happened in January when day traders – many of them inexperienced – drove up the price of GameStop. Maybe they were all acting rationally and in concert. Maybe they were duped by insiders or weren’t fully calculating those risks.

Whatever the explanation, using the term “mania” tells us only a small and potentially misleading part of the story.

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It was written by: Gayle Rogers, Professor, University of Pittsburgh.

Photo: Etherium Classic Wallpaper – Tulips used with permission.

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Release – Salem Media Group (SALM) – Announces First Quarter 2021 Total Revenue of $59.4 Million

Posted on May 7, 2021 by Admin

Salem Media Group, Inc. Announces First Quarter 2021 Total Revenue of $59.4 Million

IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (Nasdaq: SALM) released its results for the three months ended March 31, 2021.

First Quarter 2021 Results

For the quarter ended March 31, 2021 compared to the quarter ended March 31, 2020:

Consolidated

Total revenue increased 1.9% to $59.4 million from $58.3 million;
Total operating expenses decreased 27.9% to $55.0 million from $76.3 million;
Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (1) decreased 6.2% to $51.4 million from $54.8 million;
Operating income was $4.4 million compared to an operating loss of $18.0 million;
Net income was $0.3 million, or $0.01 net income per diluted share compared to a net loss of $55.2 million, or $2.07 net loss per share;
EBITDA (1) was $7.5 million compared to a loss of $14.3 million;
Adjusted EBITDA (1) increased 131.1% to $7.9 million from $3.4 million; and
Net cash used by operating activities increased 18.9% to $9.2 million from $7.7 million.

Broadcast

Net broadcast revenue decreased 2.5% to $44.0 million from $45.2 million;
Station Operating Income (“SOI”) (1) increased 36.3% to $10.7 million from $7.9 million;
Same Station (1) net broadcast revenue decreased 1.9% to $43.9 million from $44.8 million; and
Same Station SOI (1) increased 32.1% to $10.9 million from $8.2 million.

Digital Media

Digital media revenue increased 5.7% to $9.6 million from $9.1 million; and
Digital Media Operating Income (1) increased 21.6% to $0.9 million from $0.8 million.

Publishing

Publishing revenue increased 43.4% to $5.7 million from $4.0 million; and
Publishing Operating Income (1) was $0.5 million compared to a loss of $1.1 million.

Included in the results for the quarter ended March 31, 2021 are:

A $0.3 million ($0.2 million, net of tax, or $0.01 per share) net loss on the disposition of assets relates to the additional loss recorded at closing on the sale of radio station WKAT-AM and FM translator in Miami, Florida; and
A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.

Included in the results for the quarter ended March 31, 2020 are:

A $17.3 million impairment charge ($12.8 million, net of tax, or $0.48 per share), of which $0.3 million related to impairment of mastheads, and the remainder to broadcast licenses due to the financial impact of the COVID-19 pandemic;
A $0.3 million impairment charge ($0.2 million, net of tax, or $0.01 per share) related to the company’s goodwill.; and
A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.

Per share numbers are calculated based on 27,138,773 diluted weighted average shares for the quarter ended March 31, 2021, and 26,683,363 diluted weighted average shares for the quarter ended March 31, 2020.

Balance Sheet

As of March 31, 2021, the company had $216.3 million outstanding on the 6.75% senior secured notes due 2024 (the “Notes”) and no balance outstanding on the Asset Based Revolving Credit Facility (“ABL Facility”). The company received $11.2 million in aggregate principal amount of Paycheck Protection Plan (“PPP”) loans through the Small Business Administration that were available to our radio stations and networks under the Consolidated Appropriations Act.

Shelf Registration Statement and At-the-Market Facility

In April 2021, the company filed a prospectus supplement to our shelf registration statement on Form S-3 with the SEC covering the offering, issuance and sale of up to $15.0 million of the Company’s Class A Common Stock pursuant to an at-the-market facility, with B. Riley Securities, Inc. acting as sales agent.

Acquisitions and Divestitures

The following transactions were completed since January 1, 2021:

On April 28, 2021, the company closed on the acquisition of the Centerline New Media domain and digital assets for $1.3 million of cash. The digital content library will be operated within Salem Web Network’s church products division.
On March 18, 2021, the company sold radio station WKAT-AM and an FM translator in Miami, Florida for $3.5 million in cash. The company collected $3.2 million in cash upon closing and entered a promissory note for $0.3 million in cash due one year from the closing date.
On March 8, 2021, the company acquired the Triple Threat Trader newsletter. The company paid no cash at the time of closing and assumed deferred subscription liabilities of $0.1 million. As part of the purchase agreement, the company may pay up to an additional $11,000 in contingent earn-out consideration over the next two years based on the achievement of certain revenue benchmarks.

Pending transactions:

On April 20, 2021, the company entered into an Asset Purchase Agreement (“APA”) to sell Singing News Magazine and Singing News Radio (formerly Solid Gospel Network) for $0.1 million in cash. The buyer will assume the deferred subscription liability of $0.4 million. The sale is expected to close in the second quarter of 2021.
On April 10, 2021, the company entered into an agreement to sell approximately 34 acres of land in Lewisville, Texas, currently being used as the transmitter site for Company owned radio station KSKY-AM, for $12.1 million in cash. The company will retain enough of the property in the southwest corner of the site to operate the station. Following a due diligence period and satisfaction of several contingencies, the company expects to close on this transaction in the third quarter of 2021.
On February 4, 2021, the company entered into an APA to acquire KDIA-AM and KDYA-AM in San Francisco, California for $0.6 million in cash. The company paid $0.1 million in cash to an escrow account with $0.5 million of cash due upon closing. The purchase is subject to the approval of the FCC and is expected to close in the first half of 2021.
On February 5, 2020, the company entered into an APA with Word Broadcasting to sell radio stations WFIA-AM, WFIA-FM and WGTK-AM in Louisville, Kentucky for $4.0 million with a $250,000 credit applied to the sale price if closing occurs before March 31, 2020. Additionally, Word Broadcasting would receive a credit toward the purchase price of a sum equal to the monthly fees paid under the TBA that began in January 2017 for months 4-29 of the TBA and a sum equal to $2,000 per month for each monthly fee payment for months 30 and thereafter of the TBA; and a credit of the $450,000 option payment. The company estimated the loss on sale to be approximately $0.5 million net of tax if the sale closed by March 31, 2020 and $0.3 million net of tax if the sale closes later. Due to changes in debt markets, the transaction was not funded and it is uncertain when or if the transaction will close.

Conference Call Information

Salem will host a teleconference to discuss its results on May 6, 2021 at 4:00 p.m. Central Time. To access the teleconference, please dial (877) 524-8416, and then ask to be joined into the Salem Media Group First Quarter 2021 call or listen via the investor relations portion of the company’s website, located at investor.salemmedia.com. A replay of the teleconference will be available through May 20, 2021 and can be heard by dialing (877) 660-6853, passcode 13717857 or on the investor relations portion of the company’s website, located at investor.salemmedia.com.

Second Quarter 2021 Outlook

For the second quarter of 2021, the company is projecting total revenue to increase between 13% and 15% from second quarter 2020 total revenue of $52.9 million. The company is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to increase between 6% and 9% compared to the second quarter of 2020 non-GAAP operating expenses of $50.1 million.

A reconciliation of non-GAAP operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the potential high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP financial measure, in particular, the change in the estimated fair value of earn-out consideration, impairments and gains or losses from the disposition of fixed assets. The company expects the variability of the above charges may have a significant, and potentially unpredictable, impact on its future GAAP financial results.

About Salem Media Group, Inc.

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc., at www.salemmedia.com, Facebook and Twitter (@SalemMediaGrp).

Forward-Looking Statements

Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem’s reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

(1) Regulation G

Management uses certain non-GAAP financial measures defined below in communications with investors, analysts, rating agencies, banks and others to assist such parties in understanding the impact of various items on its financial statements. The company uses these non-GAAP financial measures to evaluate financial results, develop budgets, manage expenditures and as a measure of performance under compensation programs.

The company’s presentation of these non-GAAP financial measures should not be considered as a substitute for or superior to the most directly comparable financial measures as reported in accordance with GAAP.

Regulation G defines and prescribes the conditions under which certain non-GAAP financial information may be presented in this earnings release. The company closely monitors EBITDA, Adjusted EBITDA, Station Operating Income (“SOI”), Same Station net broadcast revenue, Same Station broadcast operating expenses, Same Station Operating Income, Digital Media Operating Income, Publishing Operating Income (Loss), and operating expenses excluding gains or losses on the disposition of assets, stock-based compensation, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation and amortization, all of which are non-GAAP financial measures. The company believes that these non-GAAP financial measures provide useful information about its core operating results, and thus, are appropriate to enhance the overall understanding of its financial performance. These non-GAAP financial measures are intended to provide management and investors a more complete understanding of its underlying operational results, trends and performance.

The company defines Station Operating Income (“SOI”) as net broadcast revenue minus broadcast operating expenses. The company defines Digital Media Operating Income as net Digital Media Revenue minus Digital Media Operating Expenses. The company defines Publishing Operating Income (Loss) as net Publishing Revenue minus Publishing Operating Expenses. The company defines EBITDA as net income before interest, taxes, depreciation, and amortization. The company defines Adjusted EBITDA as EBITDA before gains or losses on the disposition of assets, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before gain on bargain purchase, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are commonly used by the broadcast and media industry as important measures of performance and are used by investors and analysts who report on the industry to provide meaningful comparisons between broadcasters. SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not measures of liquidity or of performance in accordance with GAAP and should be viewed as a supplement to and not a substitute for or superior to its results of operations and financial condition presented in accordance with GAAP. The company’s definitions of SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures reported by other companies.

The company defines Adjusted Free Cash Flow as Adjusted EBITDA less cash paid for capital expenditures, less cash paid for income taxes, and less cash paid for interest. The company considers Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by its operations after cash paid for capital expenditures, cash paid for income taxes and cash paid for interest. A limitation of Adjusted Free Cash Flow as a measure of liquidity is that it does not represent the total increase or decrease in its cash balance for the period. The company uses Adjusted Free Cash Flow, a non-GAAP liquidity measure, both in presenting its results to stockholders and the investment community, and in its internal evaluation and management of the business. The company’s presentation of Adjusted Free Cash Flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The company’s definition of Adjusted Free Cash Flow is not necessarily comparable to similarly titled measures reported by other companies.

The company defines Same Station net broadcast revenue as broadcast revenue from its radio stations and networks that the company owns or operates in the same format on the first and last day of each quarter, as well as the corresponding quarter of the prior year. The company defines Same Station broadcast operating expenses as broadcast operating expenses from its radio stations and networks that the company owns or operates in the same format on the first and last day of each quarter, as well as the corresponding quarter of the prior year. The company defines Same Station SOI as Same Station net broadcast revenue less Same Station broadcast operating expenses. Same Station operating results include those stations that the company owns or operates in the same format on the first and last day of each quarter, as well as the corresponding quarter of the prior year. Same Station operating results for a full calendar year are calculated as the sum of the Same Station-results for each of the four quarters of that year. The company uses Same Station operating results, a non-GAAP financial measure, both in presenting its results to stockholders and the investment community, and in its internal evaluations and management of the business. The company believes that Same Station operating results provide a meaningful comparison of period over period performance of its core broadcast operations as this measure excludes the impact of new stations, the impact of stations the company no longer owns or operates, and the impact of stations operating under a new programming format. The company’s presentation of Same Station operating results are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The company’s definition of Same Station operating results is not necessarily comparable to similarly titled measures reported by other companies.

For all non-GAAP financial measures, investors should consider the limitations associated with these metrics, including the potential lack of comparability of these measures from one company to another.

The Supplemental Information tables that follow the condensed consolidated financial statements provide reconciliations of the non-GAAP financial measures that the company uses in this earnings release to the most directly comparable measures calculated in accordance with GAAP. The company uses non-GAAP financial measures to evaluate financial performance, develop budgets, manage expenditures, and determine employee compensation. The company’s presentation of this additional information is not to be considered as a substitute for or superior to the directly comparable measures as reported in accordance with GAAP.

Salem Media Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)

		Three Months Ended
		March 31,
		2020			2021
		(Unaudited)
Net broadcast revenue		$	45,180		$	44,048
Net digital media revenue			9,104			9,619
Net publishing revenue			3,966			5,686
Total revenue			58,250			59,353
Operating expenses:
	Broadcast operating expenses		37,327			33,343
	Digital media operating expenses		8,326			8,673
	Publishing operating expenses		5,062			5,205
	Unallocated corporate expenses		4,210			4,288
	Change in the estimated fair value of contingent earn-out consideration		(5	)		—
	Impairment of indefinite-lived long-term assets other than goodwill		17,254			—
	Impairment of goodwill		307			—
	Depreciation and amortization		3,700			3,170
	Net (gain) loss on the disposition of assets		79			318
Total operating expenses			76,260			54,997
Operating income (loss)			(18,010	)		4,356
Other income (expense):
	Interest income		—			1
	Interest expense		(4,032	)		(3,926	)
	Gain on early retirement of long-term debt		49			—
	Net miscellaneous income and (expenses)		(52	)		22
Net income (loss) before income taxes			(22,045	)		453
Provision for income taxes			33,159			130
Net income (loss)		$	(55,204	)	$	323

Basic earnings (loss) per share Class A and Class B common stock		$	(2.07	)	$	0.01
Diluted earnings (loss) per share Class A and Class B common stock		$	(2.07	)	$	0.01

Basic weighted average Class A and Class B common stock shares outstanding			26,683,363			26,736,639
Diluted weighted average Class A and Class B common stock shares outstanding			26,683,363			27,138,773

Salem Media Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

		December 31, 2020		March 31, 2021
				(Unaudited)
Assets
Cash	$	6,325	$	23,394
Trade accounts receivable, net		24,469		22,974
Other current assets		15,002		11,739
Property and equipment, net		79,122		78,598
Operating and financing lease right-of-use assets		48,355		46,646
Intangible assets, net		347,547		347,093
Deferred financing costs		213		187
Other assets		3,538		3,323
Total assets	$	524,571	$	533,954

Liabilities and Stockholders’ Equity
Current liabilities	$	50,860	$	49,280
Long-term debt		213,764		225,143
Operating and financing lease liabilities, less current portion		47,847		46,152
Deferred income taxes		68,883		69,071
Other liabilities		7,938		8,236
Stockholders’ Equity		135,279		136,072
Total liabilities and stockholders’ equity	$	524,571	$	533,954

SALEM MEDIA GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Dollars in thousands, except share and per share data)
	Class A				Class B
	Common Stock				Common Stock				Additional
									Paid-In		Accumulated			Treasury
	Shares		Amount		Shares		Amount		Capital		Earnings (Deficit)			Stock			Total
Stockholders’ equity, December 31, 2019		23,447,317	$	227		5,553,696	$	56	$	246,680	$	(23,294	)	$	(34,006	)	$	189,663
Stock-based compensation		—		—		—		—		103		—			—			103
Cash distributions		—		—		—		—		—		(667	)		—			(667	)
Net loss		—		—		—		—		—		(55,204	)		—			(55,204	)
Stockholders’ equity, March 31, 2020		23,447,317	$	227		5,553,696	$	56	$	246,783	$	(79,165	)	$	(34,006	)	$	133,895
Distributions per share	$	0.025			$	0.025
	Class A				Class B
	Common Stock				Common Stock				Additional
									Paid-In		Accumulated			Treasury
	Shares		Amount		Shares		Amount		Capital		Earnings (Deficit)			Stock			Total
Stockholders’ equity, December 31, 2020		23,447,317	$	227		5,553,696	$	56	$	247,025	$	(78,023	)	$	(34,006	)	$	135,279
Stock-based compensation		—		—		—		—		78		—			—			78
Options exercised		185,782		2		—		—		390		—			—			392
Net income		—		—		—		—		—		323			—			323
Stockholders’ equity, March 31, 2021		23,633,099	$	229		5,553,696	$	56	$	247,493	$	(77,700	)	$	(34,006	)	$	136,072

SALEM MEDIA GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
	Three Months Ended March 31,
	2020			2021
OPERATING ACTIVITIES
Net income (loss)	$	(55,204	)	$	323
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Non-cash stock-based compensation		103			78
Depreciation and amortization		3,700			3,170
Amortization of deferred financing costs		227			213
Non-cash lease expense		2,252			2,161
Provision for bad debts		1,900			(295	)
Deferred income taxes		33,084			188
Change in the estimated fair value of contingent earn-out consideration		(5	)		—
Impairment of indefinite-lived long-term assets other than goodwill		17,254			—
Impairment of goodwill		307			—
Gain on early retirement of long-term debt		(49	)		—
Net (gain) loss on the disposition of assets		79			318
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue		2,419			2,549
Inventories		70			(93	)
Prepaid expenses and other current assets		(587	)		(750	)
Accounts payable and accrued expenses		4,478			2,490
Operating lease liabilities		(2,407	)		(2,497	)
Contract liabilities		133			1,122
Deferred rent income		(84	)		170
Other liabilities		6			29
Income taxes payable		57			21
Net cash provided by operating activities		7,733			9,197
INVESTING ACTIVITIES
Cash paid for capital expenditures net of tenant improvement allowances		(1,587	)		(1,859	)
Capital expenditures reimbursable under tenant improvement allowances and trade agreements		(84	)		—
Deposit on broadcast assets and radio station acquisitions		—			(100	)
Proceeds from sale of assets		2			3,501
Other		(428	)		(238	)
Net cash provided by (used in) investing activities		(2,097	)		1,304
FINANCING ACTIVITIES
Payments to repurchase 6.75% Senior Secured Notes		(3,392	)		—
Proceeds from borrowings under ABL Facility		33,319			16
Payments on ABL Facility		(31,745	)		(5,016	)
Proceeds from borrowings under PPP Loans		—			11,195
Payments of debt issuance costs		(1	)		(3	)
Proceeds from the exercise of stock options		—			392
Payments on financing lease liabilities		(18	)		(16	)
Payment of cash distribution on common stock		(667	)		—
Book overdraft		(1,885	)		—
Net cash provided by (used in) financing activities		(4,389	)		6,568
Net increase in cash and cash equivalents		1,247			17,069
Cash and cash equivalents at beginning of year		6			6,325
Cash and cash equivalents at end of period	$	1,253		$	23,394

Salem Media Group, Inc.
Supplemental Information
(in thousands)

		Three Months Ended
		March 31,
		2020				2021
		(Unaudited)
	Reconciliation of Total Operating Expenses to Operating Expenses excluding Gains or Losses on the disposition of assets, Stock-based Compensation Expense, Changes in the Estimated Fair Value of Contingent Earn-out Consideration, Impairments and Depreciation and Amortization Expense (Recurring Operating Expenses)
	Operating Expenses	$	76,260			$		54,997
	Less depreciation and amortization expense		(3,700)					(3,170)
	Less change in estimated fair value of contingent earn-out consideration		5					—
	Less impairment of indefinite-lived long-term assets other than goodwill		(17,254)					—
	Less impairment of goodwill		(307)					—
	Less net (gain) loss on the disposition of assets		(79)					(318)
	Less stock-based compensation expense		(103)					(78)
	Total Recurring Operating Expenses	$	54,822			$		51,431

	Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue
	Net broadcast revenue	$	45,180			$		44,048
	Net broadcast revenue – acquisitions		—					—
	Net broadcast revenue – dispositions		(223)					4
	Net broadcast revenue – format change		(176)					(140)
	Same Station net broadcast revenue	$	44,781			$		43,912

	Broadcast operating expenses	$	37,327			$		33,343
	Broadcast operating expenses – acquisitions		—					—
	Broadcast operating expenses – dispositions		(502)					(106)
	Broadcast operating expenses – format change		(260)					(178)
	Same Station broadcast operating expenses	$	36,565			$		33,059

	Reconciliation of SOI to Same Station SOI
	Station Operating Income	$	7,853			$		10,705
	Station operating loss – acquisitions		—					—
	Station operating loss – dispositions		279					110
	Station operating loss – format change		84					38
	Same Station – Station Operating Income	$	8,216			$		10,853

Salem Media Group, Inc.
Supplemental Information
(in thousands)
				Three Months Ended
				March 31,
				2020			2021
				(Unaudited)
	Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss)
	Net broadcast revenue			$	45,180		$		44,048
	Less broadcast operating expenses				(37,327)				(33,343)
	Station Operating Income			$	7,853		$		10,705

	Net digital media revenue			$	9,104		$		9,619
	Less digital media operating expenses				(8,326)				(8,673)
	Digital Media Operating Income			$	778		$		946

	Net publishing revenue			$	3,966		$		5,686
	Less publishing operating expenses				(5,062)				(5,205)
	Publishing Operating Income (Loss)			$	(1,096)		$		481

The company defines EBITDA (1) as net income before interest, taxes, depreciation, and amortization. The table below presents a reconciliation of EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP. The company defines Adjusted EBITDA (1) as EBITDA (1) before gains or losses on the disposition of assets, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. The table below presents a reconciliation of Adjusted EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. Adjusted EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.

Salem Media Group, Inc.
Supplemental Information
(in thousands)
	Three Months Ended
	March 31,
	2020			2021
		(Unaudited)
Net income (loss)	$	(55,204	)	$	323
Plus interest expense, net of capitalized interest		4,032			3,926
Plus provision for income taxes		33,159			130
Plus depreciation and amortization		3,700			3,170
Less interest income		—			(1	)
EBITDA	$	(14,313	)	$	7,548
Less net (gain) loss on the disposition of assets		79			318
Less change in the estimated fair value of contingent earn-out consideration		(5	)		—
Plus impairment of indefinite-lived long-term assets other than goodwill		17,254			—
Plus impairment of goodwill		307			—
Plus gain on early retirement of long-term debt		(49	)		—
Plus net miscellaneous income and expenses		52			(22	)
Plus non-cash stock-based compensation		103			78
Adjusted EBITDA	$	3,428		$	7,922

The company defines Adjusted Free Cash Flow (1) as Adjusted EBITDA (1) less cash paid for capital expenditures, less cash paid for income taxes, and less cash paid for interest. The company considers Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by its operations after cash paid for capital expenditures, cash paid for income taxes and cash paid for interest. A limitation of Adjusted Free Cash Flow as a measure of liquidity is that it does not represent the total increase or decrease in its cash balance for the period. The company uses Adjusted Free Cash Flow, a non-GAAP liquidity measure, both in presenting its results to stockholders and the investment community, and in its internal evaluation and management of the business. The company’s presentation of Adjusted Free Cash Flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The company’s definition of Adjusted Free Cash Flow is not necessarily comparable to similarly titled measures reported by other companies.

The table below presents a reconciliation of Adjusted Free Cash Flow to net cash provided by operating activities, the most directly comparable GAAP measure. Adjusted Free Cash Flow is a non-GAAP liquidity measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.

Salem Media Group, Inc.
Supplemental Information
(in thousands)

	Three Months Ended
	March 31,
	2020		2021
		(Unaudited)
Net cash provided by operating activities	$	7,733	$	9,197
Non-cash stock-based compensation		(103)		(78)
Depreciation and amortization		(3,700)		(3,170)
Amortization of deferred financing costs		(227)		(213)
Non-cash lease expense		(2,252)		(2,161)
Provision for bad debts		(1,900)		295
Deferred income taxes		(33,084)		(188)
Change in the estimated fair value of contingent earn- out consideration		5		—
Impairment of indefinite-lived long-term assets other than goodwill		(17,254)		—
Impairment of goodwill		(307)		—
Net (gain) loss on the disposition of assets		(79)		(318)
Gain on early retirement of long-term debt		49		—
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue		(2,419)		(2,549)
Inventories		(70)		93
Prepaid expenses and other current assets		587		750
Accounts payable and accrued expenses		(4,478)		(2,490)
Contract liabilities		(133)		(1,122)
Operating lease liabilities (deferred rent)		2,407		2,497
Deferred rent income		84		(170)
Other liabilities		(6)		(29)
Income taxes payable		(57)		(21)
Net income (loss)	$	(55,204)	$	323
Plus interest expense, net of capitalized interest		4,032		3,926
Plus provision for (benefit from) income taxes		33,159		(79)
Plus depreciation and amortization		3,700		3,170
Less interest income		—		(1)
EBITDA	$	(14,313)	$	7,548
Plus net (gain) loss on the disposition of assets		79		318
Plus change in the estimated fair value of contingent earn-out consideration		(5)		—
Plus impairment of indefinite-lived long-term assets other than goodwill		17,254		—
Plus impairment of goodwill		307		—
Plus gain on early retirement of long-term debt		(49)		—
Plus net miscellaneous income and expenses		52		(22)
Plus non-cash stock-based compensation		103		78
Adjusted EBITDA	$	3,428	$	7,922
Less net cash paid for capital expenditures (1)		(1,587)		(1,859)
Plus cash received (paid for) taxes		(18)		79
Less cash paid for interest, net of capitalized interest		(165)		(53)
Adjusted Free Cash Flow	$	1,658	$	6,089

(1)

Net cash paid for capital expenditures reflects actual cash payments net of cash reimbursements under tenant improvement allowances and net of property and equipment acquired in trade transactions.

Selected Debt Data		Outstanding at	Applicable Interest Rate
Selected Debt Data		March 31, 2021	Applicable Interest Rate
Senior Secured Notes due 2024 (1)	$	216,341,000	6.75%
Asset-based revolving credit facility (2)	$	—	—%
Small Business Administration Paycheck Protection Plan loans (3)	$	11,194,895	1.00%

(1)		$216.3 million notes with semi-annual interest payments at an annual rate of 6.75%.
(2)		Outstanding borrowings under the ABL Facility, with interest spread ranging from Base Rate plus 0.50% to 1.00% for base rate borrowings and LIBOR plus 1.50% to 2.00% for LIBOR rate borrowings.
(3)		The PPP loans accrue interest at 1% annually and mature in five years for any amount that is not forgiven.

Evan D. Masyr
Executive Vice President and Chief
Financial Officer
(805) 384-4512
evan@salemmedia.com

Source: Salem Media Group, Inc.

Release – Avivagen (VIVXF)(VIV:CA) – Terminates Exclusive U.S. Sales and Distribution Agreement

Posted on May 7, 2021 by Admin

Avivagen Terminates Exclusive U.S. Sales and Distribution Agreement

Agreement with CSA Animal Nutrition to be terminated effective immediately
Avivagen to explore new sales and distributions opportunities to capitalize on significant market opportunity in the United States

OTTAWA, Ontario — Avivagen Inc. (TSXV:VIV, OTCQB:VIVXF) (“Avivagen”), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely enhances feed intake and supports immune function, thereby supporting general health and performance, has announced that it has terminated its sales and distribution agreement with CSA Animal Nutrition in the United States.

“We’ve seen demand for OxC-beta™ Livestock grow rapidly in key markets across Asia and throughout Mexico, and will be looking to replicate that same corporate strategy and success in the United States moving forward,” said Kym Anthony, Chief Executive Officer, Avivagen Inc. “We appreciate all of CSA’s efforts on Avivagen’s behalf over the past few years.”

With production of 215 million tonnes of livestock feed in 2020, the United States accounts for 18% of the world’s 1.19 Billion tonne global livestock feed market.ⁱ

About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about ?-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Philippines, Mexico, Taiwan, New Zealand, Thailand, Brazil, Australia and Malaysia.

Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.

About Avivagen
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.

Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions. Statements set out in this news release relating to the future plans of Avivagen’s customers and the potential for additional and/or increased orders from such customers, Avivagen’s expectations as to growth of its branding in certain jurisdictions, continued distribution and acceptance of Avivagen’s technology, anticipated growth in demand for Avivagen’s products, the potential for Avivagen’s products to be commercialized in human applications, the anticipated date of fulfillment for the order described, the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as well as fill a critical need for health support in certain livestock applications where antibiotics are precluded and the size of market opportunities are all forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, the order described may not result in new orders for Avivagen’s products, the customer plans may change due to many reasons, demand for Avivagen’s products may not continue to grow and could decline, Avivagen’s brand recognition may not increase as anticipated or could be impacted by negative events, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications, including human applications, and may not be widely accepted as a replacement for antibiotics in livestock feeds, new market access may not occur in the timeline or manner expected by Avivagen, timing of fulfillment of the order may be delayed beyond current expectation for a number of reasons which would push fulfillment and recognition of revenues for this order into a future quarter and the market opportunities may not be as large as Avivagen anticipates, in each case due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

^{https://www.world-grain.com/articles/14784-global-feed-output-rises-by-1-in-2020}

Contacts

Avivagen Inc.
Drew Basek
Director of Investor Relations
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Phone: 416-540-0733
E-mail: d.basek@avivagen.com

Kym Anthony
Chief Executive Officer
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Head Office Phone: 613-949-8164
Website: www.avivagen.com

Release – Ocugen (OCGN) – Provides Business Update and First Quarter 2021 Financial Results

Posted on May 7, 2021 by Admin

Ocugen Provides Business Update and First Quarter 2021 Financial Results

COVAXIN demonstrates 100% efficacy against severe COVID-19 disease (including hospitalization)
Master File submitted for U.S. Food and Drug Administration review prior to a planned Emergency Use Authorization application for COVAXIN
$100.0 million in gross proceeds raised through a registered direct offering of common stock
Key talent acquired representing an instrumental step to position Ocugen for future growth

MALVERN, Pa., May 07, 2021 (GLOBE NEWSWIRE) — Ocugen, Inc. (“Ocugen”) (Nasdaq: OCGN), a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and developing a vaccine to save lives from COVID-19, today reported first quarter 2021 financial results along with a general business update.

“We continue our dedication to help save lives from COVID-19 by bringing COVAXIN to the U.S. market while simultaneously driving our ophthalmology gene therapy pipeline toward the clinic. We shared compelling second interim analysis results of Bharat Biotech’s Phase 3 clinical trial in India as well as positive data from in-vitro studies regarding COVAXIN’s ability to neutralize emerging variants. We continue to make progress toward Emergency Use Authorization for COVAXIN while also considering clinical development in special populations, such as children, as well as booster doses. We are delighted to have raised additional capital to fund our ongoing and future operations and to allow us to recruit key talent during this important stage of our growth,” said Dr. Shankar Musunuri, Chairman, Chief Executive Officer, and Co-Founder of Ocugen.

Business Highlights

COVAXIN Demonstrates Positive Efficacy and Variant Neutralization Results — In April 2021, Ocugen announced that its co-development partner, Bharat Biotech International Limited (“Bharat Biotech”), shared positive results from the second interim analysis of its Phase 3 clinical trial of COVAXIN showing 78% overall efficacy against COVID-19 disease, 100% efficacy against severe COVID-19 disease (including hospitalization), and 70% efficacy against asymptomatic COVID-19 infection, indicating the potential to significantly reduce virus transmission. COVAXIN has additionally demonstrated a remarkable safety profile with several million doses administered to date in India. Moreover, in-vitro studies conducted by the Indian Council of Medical Research-National Institute of Virology have provided data suggesting effectiveness in neutralizing the double mutant India variant, the U.K. variant, and the Brazil variant. Based on broad immunogenicity, Ocugen believes that COVAXIN has the potential to be effective against other emerging variants. COVAXIN is based on proven technology and Ocugen plans to consider clinical development in special populations, such as children, as well as booster doses.
Continued Progress Toward U.S. Emergency Use Authorization (“EUA”) — Ocugen is currently in discussions with the U.S. Food and Drug Administration (“FDA”) regarding the development of COVAXIN and has submitted key information and data to date as a Master File for FDA review prior to a planned EUA application once additional data is received from Bharat Biotech from the ongoing Phase 3 clinical trial. Ocugen is additionally in discussions with the Biomedical Advanced Research and Development Authority, commonly known as BARDA, regarding the U.S. government’s support of COVAXIN.
Capital Raised — In April 2021, Ocugen sold an aggregate of 10.0 million shares of its common stock priced at a premium to market at $10.00 per share in a registered direct offering. The registered direct offering generated net proceeds of $93.4 million, after deducting placement agent’s fees and other offering expenses payable by Ocugen, further strengthening Ocugen’s balance sheet and further extending its cash runway.
Attracted and Hired Significant Key Talent — Ocugen has increased its headcount to 26 full-time employees as of as of the date of this press release, including the addition of John Paul Gabriel as the Senior Vice President of Manufacturing and Supply Chain. Mr. Gabriel is an established biopharma and vaccines operations leader, who will be instrumental in the technology transfer from Bharat Biotech for the manufacturing of COVAXIN for the U.S. market. Ocugen will continue to expand its headcount this year as necessary for the development and commercialization of COVAXIN and the advancement of the ophthalmology pipeline into the clinic.
Continued Advancement of Ophthalmology Pipeline — Ocugen’s ophthalmology pipeline continues to advance toward the initiation of four Phase 1/2 clinical trials by the end of 2022 including OCU400, Ocugen’s lead gene therapy candidate, entering the clinic in the second half of this year. Ocugen has continued to make progress in preclinical development including sharing promising preclinical results for OCU200 at the Wet Age-Related Macular Degeneration Conference in April 2021.

First Quarter 2021 Financial Results

Ocugen’s cash, cash equivalents, and restricted cash totaled $44.9 million as of March 31, 2021, compared to $24.2 million as of December 31, 2020. Ocugen had 188.2 million shares of common stock outstanding as of March 31, 2021.
Research and development expenses for the three months ended March 31, 2021 were $2.9 million compared to $1.7 million for the three months ended March 31, 2020. General and administrative expenses for the three months ended March 31, 2021 were $4.2 million compared to $2.3 million for the three months ended March 31, 2020. Ocugen reported a $0.04 net loss per share for the three months ended March 31, 2021 compared to a $0.07 net loss per share for the three months ended March 31, 2020.

About Ocugen, Inc.
Ocugen, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and developing a vaccine to save lives from COVID-19. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with one drug — “one to many,” and our novel biologic product candidate aims to offer better therapy to patients with underserved diseases such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy. We are co-developing Bharat Biotech’s COVAXIN vaccine candidate for COVID-19 in the U.S. market. For more information, please visit www.ocugen.com.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such forward-looking statements include information about qualitative assessments of available data, potential benefits, expectations for clinical trials, and anticipated timing of clinical trial readouts and regulatory submissions. This information involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as risks associated with preliminary and interim data, including the possibility of unfavorable new clinical trial data and further analyses of existing clinical trial data; the risk that clinical trial data are subject to differing interpretations and assessments, including during the peer review/publication process, in the scientific community generally, and by regulatory authorities; whether and when data from Bharat Biotech’s clinical trials will be published in scientific journal publications and, if so, when and with what modifications; whether the FDA will be satisfied with the design of and results from preclinical and clinical studies of COVAXIN, which have been conducted by Bharat Biotech in India; whether and when any Biologics License and/or EUA applications may be filed in the United States for COVAXIN; whether and when any such applications may be approved by the FDA; decisions by the FDA impacting labeling, manufacturing processes, safety and/or other matters that could affect the availability or commercial potential of COVAXIN in the United States, including development of products or therapies by other companies. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (“SEC”), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.

Corporate Contact:
Ocugen, Inc.
Sanjay Subramanian
CFO and Head of Corp. Dev.
IR@Ocugen.com

Media Contact:
LaVoieHealthScience
Lisa DeScenza
ldescenza@lavoiehealthscience.com
+1 978-395-5970

OCUGEN, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

	March 31, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	44,792		$	24,039
Advance for COVAXIN supply	4,988			—
Prepaid expenses and other current assets	1,576			1,839
Total current assets	51,356			25,878
Property and equipment, net	762			633
Restricted cash	151			151
Other assets	1,578			714
Total assets	$	53,847		$	27,376
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	1,040		$	395
Accrued expenses and other current liabilities	2,703			2,941
Short-term debt, net	374			234
Operating lease obligation	164			44
Total current liabilities	4,281			3,614
Non-current liabilities
Operating lease obligation, less current portion	1,375			389
Long term debt, net	1,702			1,823
Total liabilities	7,358			5,826
Stockholders’ equity
Convertible preferred stock	1			—
Common stock	1,883			1,841
Treasury stock	(48		)	(48		)
Additional paid-in capital	125,032			93,059
Accumulated deficit	(80,379		)	(73,302		)
Total stockholders’ equity	46,489			21,550
Total liabilities and stockholders’ equity	$	53,847		$	27,376

OCUGEN, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(Unaudited)

	Three months ended March 31,
	2021			2020
Operating expenses
Research and development	$	2,872		$	1,652
General and administrative	4,185			2,277
Total operating expenses	7,057			3,929
Loss from operations	(7,057		)	(3,929		)
Other income (expense)
Interest expense	(20		)	(15		)
Total other income (expense)	(20		)	(15		)
Net loss	$	(7,077	)	$	(3,944	)
Shares used in calculating net loss per common share — basic and diluted	186,298,122			52,627,228
Net loss per share of common stock — basic and diluted	$	(0.04	)	$	(0.07	)

Release – Neovasc (NVCN) – Announces First Quarter 2021 Financial Results

Posted on May 7, 2021 by Admin

Neovasc Announces First Quarter 2021 Financial Results

VANCOUVER and MINNEAPOLIS – (NewMediaWire) – May 06, 2021 – Neovasc, Inc. (“Neovasc” or the “Company”) (NASDAQ, TSX: NVCN), today reported financial results for the first quarter ended March 31, 2021.

First Quarter Highlights

Generated revenue of $451,794 in the quarter as Neovasc Reducer(TM) implants rebounded after being suppressed for much of 2020 due to the COVID-19 pandemic.
Continued to advance our program to expand reimbursement for Reducer in the EU and the US, and received a CPT Category III code from the American Medical Association for transcatheter implantation of a coronary sinus reduction device.
Completed a registered direct share offering in February, raising gross proceeds of $72 million.

Subsequent Highlights

Held initial discussions with the U.S. Food and Drug Administration (FDA) regarding the initiation of COSIRA II, a proposed study of the Reducer device in the US.
Received ICD-10 procedural Code for Reducer device implantation.
Assigned to MS-DRGs 228-229 for in-patient Reducer procedures in the United States.
Enrolled the 300th Reducer patient in the Reducer-1 post-market clinical study.

Neovasc realized better-than-expected Reducer implants in the first quarter, as we continued to advance our efforts to commercialize the Reducer and further develop the Tiara devices, aided tremendously by a significant event for Neovasc; the completion of a $72 million private placement in February 2021. This transaction solidifies the Companys finances and importantly provides a clear operational pathway for the next 18 months as we seek to realize value for our two devices, said Fred Colen, President and Chief Executive Officer of Neovasc. We are advancing the development of our IDE Clinical trial for Reducer with the FDA, in the form of an amended COSIRA II IDE Study and continue to pursue expanded reimbursement status for this unique device in Europe and the US. Our reimbursement progress in the U.S. has been noteworthy, as we have gained CPT, ICD-10 and MS DRG codes in the past several weeks. We also continued to enlarge the Reducers footprint in Europe, and we are excited about the opportunities in that market. We remain engaged with our notified body in Europe as we are evaluating options to potentially pursue Tiara TA approval under the Medical Device Regulation. Separately, we are continuing to develop the next-generation Tiara TF device, with the goal of a first-in-human implant towards the end of 2021. We look forward to forging ahead in 2021 with our value creation strategies based on our two devices.

Financial results for the first quarter ended March 31, 2021

Revenues decreased 15% to $451,794 for the quarter ended March 31, 2021, compared to revenues of $532,895 for the same period in 2020 as restrictions from COVID-19 in certain European markets limited elective procedures including Reducer.

The overall gross margin for the quarter ended March 31, 2021 was 84%, compared to 77% gross margin for the same period in 2020 as we sold more product in markets where we sell the Reducer via our direct sales force.

Total expenses for the quarter ended March 31, 2021 were $10,551,976 compared to $7,564,437 for the same period in 2020, representing an increase of $2,987,539 explained by a $1,630,124 increase in legal expenses and underwriters fees related to the February 2021 Financing and a $1,335,634 increase in non-cash share-based payments.

Operating losses and comprehensive losses for the quarter ended March 31, 2021 were $10,172,575 and $2,873,001, respectively, or $0.04 basic and diluted loss per share, as compared with $7,156,105 operating losses and $2,673,406 comprehensive losses, or $0.38 basic and diluted loss per share, for the same period in 2020.

About Neovasc Inc.
Neovasc is a specialty medical device company that develops, manufactures and markets products for the rapidly growing cardiovascular marketplace. The Company is a leader in the development of minimally invasive transcatheter mitral valve replacement technologies, and minimally invasive devices for the treatment of refractory angina. Its products include the Neovasc Reducer(TM), for the treatment of refractory angina, which is not currently commercially available in the United States (2 U.S. patients have been treated under Compassionate Use) and has been commercially available in Europe since 2015, and Tiara(TM), for the transcatheter treatment of mitral valve disease, which is currently under clinical investigation in the United States, Canada, Israel and Europe. For more information, visit: www.neovasc.com.

NEOVASC INC.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in U.S. dollars) (Unaudited)

	March 31, 2021	December 31, 2020

ASSETS
Current assets
Cash and cash equivalents		$ 70,493,894	$ 12,935,860
Accounts receivable		1,073,745	987,057
Finance lease receivable		99,876	95,849
Inventory		903,277	839,472
Research and development supplies		318,966	167,378
Prepaid expenses and other assets		652,489	705,471
Total current assets		73,542,247	15,731,087

Non-current assets
Restricted cash		477,271	470,460
Right-of-use asset		736,998	830,551
Finance lease receivable		17,634	42,841
Property and equipment		770,333	803,280
Deferred loss on 2021 derivative warrant liabilities		14,658,134	–
Total non-current assets		16,660,370	2,147,132

Total assets		$ 90,202,617	$ 17,878,219

LIABILITIES AND EQUITY
Liabilities
Current liabilities
Accounts payable and accrued liabilities		$ 5,095,860	$ 7,243,500
Lease liabilities		297,342	342,910
2019 Convertible notes		154,431	38,633
2020 Convertible notes and warrants and derivative warrant liabilities		141,248	37,525
Total current liabilities		5,688,881	7,662,568

Non-current Liabilities
Lease liabilities		526,354	596,881
2019 Convertible notes		6,241,751	6,156,724
2020 Convertible notes and warrants and derivative warrant liabilities		2,433,303	1,484,529
2021 Derivative warrant liabilities		3,414,080	–
Total non-current liabilities		12,615,488	8,238,134

Total liabilities		$ 18,304,369	$ 15,900,702

Equity
Share capital		$ 439,485,101	$ 369,775,383
Contributed surplus		38,129,070	35,045,056
Accumulated other comprehensive loss		(8,321,303)	(7,615,717)
Deficit		(397,394,620)	(395,227,205)
Total equity		$ 71,898,248	$ 1,977,517

Total liabilities and equity		$ 90,202,617	$ 17,878,219

NEOVASC INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the three months ended March 31,
(Expressed in U.S. dollars) (Unaudited)

	2021	2020

REVENUE	$ 451,794	$ 532,895
COST OF GOODS SOLD	(72,393)	(124,563)
GROSS PROFIT	379,401	408,332

EXPENSES
Selling expenses	637,979	553,529
General and administrative expenses	5,292,569	2,487,502
Product development and clinical trials expenses	4,621,428	4,523,406
	10,551,976	7,564,437

OPERATING LOSS	(10,172,575)	(7,156,105)

OTHER INCOME/(EXPENSE)
Interest and other income	10,020	33,669
Interest and other expense	(40,409)	29,336
Loss on foreign exchange	(35,295)	(651)
Unrealized gain on warrants, derivative liability warrants and convertible notes	12,450,053	3,132,982
Realized loss on exercise or conversion of warrants, derivative liability warrants and convertible notes	(2,114,651)	(143,750)
Amortization of deferred loss	(2,265,290)	–
	8,004,428	3,051,586
LOSS BEFORE TAX	(2,168,147)	(4,104,519)

Tax expense	732	(7,072)
LOSS FOR THE PERIOD	$ (2,167,415)	$ (4,111,591)

OTHER COMPREHENSIVE INCOME FOR THE PERIOD
Fair market value changes in convertible notes due to changes in own credit risk	(705,586)	1,438,185
LOSS AND OTHER COMPREHENSIVE LOSS FOR THE PERIOD	$ (2,873,001)	$ (2,673,406)

LOSS PER SHARE
Basic and diluted loss per share	$ ($0.04)	$ (0.38)

Investors
Mike Cavanaugh
Westwicke/ICR
Phone: +1.646.877.9641
Mike.Cavanaugh@westwicke.com

Media
Sean Leous
Westwicke/ICR
Phone: +1.646.866.4012
Sean.Leous@westwicke.com

Forward-Looking Statement Disclaimer

Certain statements in this news release contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws that may not be based on historical fact. When used herein, the words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend,” “believe”, and similar expressions, are intended to identify forward-looking statements. Forward-looking statements may involve but are not limited to, the Company’s operational pathway for the next 18 months, the development of the Company’s IDE trial for Reducer with the FDA, the expanded reimbursement status for the Reducer in Europe and the US, the potential pursuit of Tiara TA approval under the Medical Device Directive, the Company’s plans and timelines regarding the US study of the Tiara TF device, expectations as to the future growth of the Company, the expansion of its product range and the growing cardiovascular marketplace. Many factors and assumptions could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the doubt about the Company’s ability to continue as a going concern; risks related to the recent COVID-19 coronavirus outbreak or other health epidemics, which could significantly impact the Company’s operations, sales or ability to raise capital or enroll patients in clinical trials and complete certain Tiara development milestones on the Company’s expected schedule; risks relating to the Company’s need for significant additional future capital and the Company’s ability to raise additional funding; risks relating to the sale of a significant number of Common Shares; risks relating to the possibility that the Company’s common shares (the Common Shares) may be delisted from the Nasdaq or the TSX, which could affect their market price and liquidity; risks relating to the Company’s conclusion that it did have effective internal control over financial reporting as of December 31, 2020 but not at December 31, 2019 and 2018; risks relating to the Common Share price being volatile; risks relating to the possibility that the Common Shares may be delisted from the Nasdaq or the TSX, which could affect their market price and liquidity; risks relating to the Company’s significant indebtedness, and its effect on the Company’s financial condition; risks relating to lawsuits that the Company is subject to, which could divert the Company’s resources and result in the payment of significant damages and other remedies; risks relating to claims by third-parties alleging infringement of their intellectual property rights; risks relating to the Company’s ability to establish, maintain and defend intellectual property rights in the Company’s products; risks relating to results from clinical trials of the Company’s products, which may be unfavorable or perceived as unfavorable; the Company’s history of losses and significant accumulated deficit; risks associated with product liability claims, insurance and recalls; risks relating to use of the Company’s products in unapproved circumstances, which could expose the Company to liabilities; risks relating to competition in the medical device industry, including the risk that one or more competitors may develop more effective or more affordable products; risks relating to the Company’s ability to achieve or maintain expected levels of market acceptance for the Company’s products, as well as the Company’s ability to successfully build its in-house sales capabilities or secure third-party marketing or distribution partners; risks relating to the Company’s ability to convince public payors and hospitals to include the Company’s products on their approved products lists; risks relating to new legislation, new regulatory requirements and the efforts of governmental and third-party payors to contain or reduce the costs of healthcare; risks relating to increased regulation, enforcement and inspections of participants in the medical device industry, including frequent government investigations into marketing and other business practices; risks relating to the extensive regulation of the Company’s products and trials by governmental authorities, as well as the cost and time delays associated therewith; risks relating to post-market regulation of the Company’s products; risks relating to health and safety concerns associated with the Company’s products and industry; risks relating to the Company’s manufacturing operations, including the regulation of the Company’s manufacturing processes by governmental authorities and the availability of two critical components of the Reducer; risks relating to the possibility of animal disease associated with the use of the Company’s products; risks relating to the manufacturing capacity of third-party manufacturers for the Company’s products, including risks of supply interruptions impacting the Company’s ability to manufacture its own products; risks relating to the Company’s dependence on limited products for substantially all of the Company’s current revenues; risks relating to the Company’s exposure to adverse movements in foreign currency exchange rates; risks relating to the possibility that the Company could lose its foreign private issuer status under U.S. federal securities laws; risks relating to the possibility that the Company could be treated as a “passive foreign investment company”; risks relating to breaches of anti-bribery laws by the Company’s employees or agents; risks relating to future changes in financial accounting standards and new accounting pronouncements; risks relating to the Company’s dependence upon key personnel to achieve its business objectives; risks relating to the Company’s ability to maintain strong relationships with physicians; risks relating to the sufficiency of the Company’s management systems and resources in periods of significant growth; risks relating to consolidation in the health care industry, including the downward pressure on product pricing and the growing need to be selected by larger customers in order to make sales to their members or participants; risks relating to the Company’s ability to successfully identify and complete corporate transactions on favorable terms or achieve anticipated synergies relating to any acquisitions or alliances; risks relating to conflicts of interests among the Company’s officers and directors as a result of their involvement with other issuers; and risks relating to anti-takeover provisions in the Company’s constating documents which could discourage a third-party from making a takeover bid beneficial to the Company’s shareholders.These risk factors and others relating to the Company are discussed in greater detail in the “Risk Factors” section of the Company’s Annual Information Form and in the Management’s Discussion and Analysis for the three months ended March 31, 2021 (copies of which may be obtained at www.sedar.com or www.sec.gov). The Company has no intention and undertakes no obligation to update or revise any forward-looking statements beyond required periodic filings with securities regulators, whether as a result of new information, future events or otherwise, except as required by law.

Release – Sierra Metals Inc. (SMT:CA)(SMTS) – Reports Consolidated Financial Results For The First Quarter Of 2021

Posted on May 7, 2021 by Admin

Sierra Metals Reports Consolidated Financial Results For The First Quarter Of 2021

CONFERENCE CALL MAY 7, 2021 AT 10:30 AM (EDT)

(All $ figures reported in USD)

Revenue from metals payable of $69.6 million in Q1 2021, a 25% increase from $55.6 million in Q1 2020
Operating cash flows before movements in working capital of $25.6 million in Q1 2021, a 63% increase from $15.7 million in Q1 2020
Adjusted EBITDA of $25.3 million in Q1 2021, a 57% increase from $16.1 million in Q1 2021
Q1 2021 consolidated production includes 7.9 million pounds of copper, a 33% decrease; 1.0 million ounces of silver, a 1% increase; 24.1 million pounds of zinc, an 11% increase; 9.0 million pounds of lead, a 1% decrease; and 2,636 ounces of gold, a 28% decrease respectively, compared to Q1 2020 due to reduced mining of higher grade areas primarily due to restrictions resulting from COVID-19
Cash costs and AISC per copper equivalent payable pound compared to Q1 2020 increased at Yauricocha 26% and 18% respectively; at Bolivar cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively; and at Cusi cash costs per silver equivalent payable pound decreased by 17% while the AISC was flat
Record quarterly throughput of 3,728 tonnes per day (“tpd”) at the Yauricocha Mine in Peru
$74.3 million of cash and cash equivalents as at March 31, 2021
A shareholder conference call to be held Friday, May 7, 2021, at 10:30 AM (EDT)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today reported revenue of $69.6 million and an adjusted EBITDA of $25.6 million on the throughput of 774,421 tonnes and metal production of 25.5 million copper equivalent pounds or 3.7 million silver equivalent ounces, or 79.8 million zinc equivalent pounds for the three-month period ended March 31, 2021.

Image 1: Piedras Verdes Mill at Bolivar (Photo: Business Wire)

Despite the decline in quantities of payable metals due to ongoing COVID-19 related operational challenges and external factors, the Company generated higher revenues, adjusted EBITDA and operating cash flows during Q1 2021.

The Yauricocha Mine achieved 14% higher throughput in Q1 2021 compared to Q1 2020, despite the various operational challenges posed by the COVID-19 pandemic. Zinc equivalent production dropped 9% as compared to Q1 2020. In terms of copper equivalent pound, the decline was 21% due to a higher increase in copper prices than the zinc prices compared to Q1 2020. Metal production declined (except zinc and silver) as ore grades fell due to a decline of tonnage contributions from the high-grade cuerpos chicos zones. The copper-rich Esperanza zone also had some operational issues that have since been resolved. Cash costs per copper equivalent payable pound increased 26%, whereas cash costs per zinc equivalent payable pound increased by 9% as compared to Q1 2020. AISC per copper equivalent payable pound increased by 14%, as the increase in cash cost was partially offset by lower treatment and refining charges and lower sustaining capital. AISC per zinc equivalent payable pound increased by 4% as compared to Q1 2020.

The Bolivar Mine processed 371,608 tonnes in Q1 2021, representing a mere 2% decrease from tonnes processed in Q1 2020, despite the ongoing challenges due to COVID-19 and bad weather at the beginning of the quarter. The decrease in throughput combined with lower grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. Cash costs and AISC per copper equivalent payable pound increased by 37% and 57%, respectively, as compared to Q1 2020.

The Cusi Mine achieved 2% lower throughput at 30% higher silver grades during Q1 2021, resulting in 17% higher silver equivalent production as compared to Q1 2020. Cash costs per silver equivalent ounce decreased by 17%, but AISC per silver equivalent payable ounce was in line with Q1 2020, as higher sustaining capital offset the impact of the increase in silver equivalent payable ounces in Q1 2021.

Consolidated production of silver increased 1% to 1.0 million ounces, copper decreased 33% to 7.9 million pounds, lead decreased 1% to 9.0 million pounds, zinc increased 11% to 24.1 million pounds, and gold decreased 28% to 2,636 ounces compared to Q1 2020.

Luis Marchese, CEO of Sierra Metals, commented, “The safety of our workforce and the communities in which we operate is paramount. The COVID-19 pandemic has enacted various direct and indirect challenges which have affected our ability to operate as effectively as expected. Additionally, an extended power outage at Cusi affected our operations during the quarter. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to lower metal production and a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year.”

He continued, “Looking ahead, the year continues to be busy with many exciting developments such as the anticipated receipt of the Informe Tecnico Minero (“ITM”) permit at Yauricocha, which will allow us to increase throughput by 20%. We also continue advancing the completion of Preliminary Feasibility Studies for all mines, examining increases in throughput starting in 2024. We also expect to begin construction of an iron ore processing plant at Bolivar, expected to produce 500,000 tonnes per year of 62% iron ore fines. This is expected to enhance Bolivar’s profitability while also lowering our transportation and tailing development costs. Furthermore, we continue with our brownfield and greenfield exploration programs. We have had recent success in the area between the Esperanza and Cachi Cachi zones with the discovery of high-grade copper silver and zinc oxide material as reported in a press release dated April 13, 2020.”

He concluded, “The Company continues to have a strong balance sheet to support the Company’s capital expenditures and growth initiatives. While we are facing challenges from COVID-19 currently, the mid-term plans remain in place.”

The following table displays selected financial and operational information for the three months ended March 31, 2021:

	Three Months Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)	March 31, 2021		March 31, 2020
Operating
Ore Processed / Tonnes Milled		774,421		740,698
Silver Ounces Produced (000’s)		961		948
Copper Pounds Produced (000’s)		7,895		11,775
Lead Pounds Produced (000’s)		9,004		9,079
Zinc Pounds Produced (000’s)		24,123		21,646
Gold Ounces Produced		2,636		3,657
Copper Equivalent Pounds Produced (000’s)¹		25,496		31,170
Zinc Equivalent Pounds Produced (000’s)¹		79,778		84,466
Silver Equivalent Ounces Produced (000’s)¹		3,741		4,751

Cash Cost per Tonne Processed	$	47.54	$	46.73
Cost of sales per AgEqOz	$	11.48	$	8.96
Cash Cost per AgEqOz²	$	11.02	$	8.43
AISC per AgEqOz²	$	19.62	$	14.71
Cost of sales per CuEqLb²	$	1.69	$	1.37
Cash Cost per CuEqLb²	$	1.62	$	1.29
AISC per CuEqLb²	$	2.88	$	2.25
Cost of sales per ZnEqLb²	$	0.54	$	0.50
Cash Cost per ZnEqLb²	$	0.52	$	0.47
AISC per ZnEqLb²	$	0.92	$	0.83

Cash Cost per ZnEqLb (Yauricocha)²	$	0.47	$	0.43
AISC per ZnEqLb (Yauricocha)²	$	0.85	$	0.82
Cash Cost per CuEqLb (Yauricocha)²	$	1.48	$	1.17
AISC per CuEqLb (Yauricocha)²	$	2.65	$	2.24
Cash Cost per CuEqLb (Bolivar)²	$	1.58	$	1.15
AISC per CuEqLb (Bolivar)²	$	2.91	$	1.85
Cash Cost per AgEqOz (Cusi)²	$	18.72	$	22.62
AISC per AgEqOz (Cusi)²	$	30.28	$	30.00
Financial
Revenues	$	69,624	$	55,558
Adjusted EBITDA²	$	25,269	$	16,074
Operating cash flows before movements in working capital	$	25,626	$	15,710
Adjusted net income (loss) attributable to shareholders²	$	4,383	$	1,210
Net income (loss) attributable to shareholders	$	3,084	$	(1,869	)
Cash and cash equivalents	$	74,329	$	36,915
Working capital	$	64,704	$	49,193

⁽¹⁾ Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.
⁽²⁾ This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

The following table displays average realized metal prices information for the three months ended March 31, 2021, vs March 31, 2020:

Average Realized Metal Prices					%
(In US dollars)	Q1 2021		Q1 2020		Increase

Silver ($/oz)	$	26.44	$	16.57	60	%
Copper ($/lb)	$	3.88	$	2.53	53	%
Lead ($/lb)	$	0.92	$	0.80	15	%
Zinc ($/lb)	$	1.24	$	0.93	33	%
Gold ($/oz)	$	1,778	$	1,585	12	%

Q1 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q1 2021 increased by 25% from $55.6 million in Q1 2020. The increase in revenues was largely driven by the increase in realized metal prices, which more than compensated for the decrease in metal payable, except zinc and lead.

Yauricocha’s cost of sales per zinc equivalent payable pound was $0.50 (Q1 2020 – $0.45), cash cost per zinc equivalent payable pound was $0.47 (Q1 2020 – $0.43), and AISC per zinc equivalent payable pound of $0.85 (Q1 2020 – $0.82). AISC per zinc equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to an 11% decline in zinc equivalent payable pounds during the quarter.

Yauricocha’s cost of sales per copper equivalent payable pound was $1.56 (Q1 2020 – $1.22), cash cost per copper equivalent payable pound was $1.48 (Q1 2020 – $1.17), and AISC per copper equivalent payable pound of $2.65 (Q1 2020 – $2.24). AISC per copper equivalent payable pound for Q1 2021 increased as compared to Q1 2020 due to a 22% decline in copper equivalent payable pounds during the quarter.

Bolivar’s cost of sales per copper equivalent payable pound was $1.64 (Q1 2020 – $1.19), cash cost per copper equivalent payable pound was $1.58 (Q1 2020 – $1.15), and AISC per copper equivalent payable pound was $2.91 (Q1 2020 – $1.85) for Q1 2021. Unit costs at Bolivar increased due to the 24% decline in the copper equivalent payable pound resulting from lower grades as compared to Q1 2020.

Cusi’s cost of sales per silver equivalent payable ounce was $18.92 (Q1 2020 – $27.48), cash cost per silver equivalent payable ounce was $18.72 (Q1 2020 – $22.62), and AISC per silver equivalent payable ounce was $30.28 (Q1 2020 – $30.00) for Q1 2021 as compared to Q1 2020. Cost of sales and cash costs per unit declined at Cusi due to the 23% increase in the silver equivalent payable ounces sold as compare to Q1 2020. AISC per silver equivalent payable pound at Cusi was in line with Q1 2020 as a 188% increase in sustaining capital, driven by higher development costs, offset the impact of higher silver equivalent ounces sold.

Adjusted EBITDA⁽¹⁾ of $25.3 million for Q1 2021 increased compared to $16.1 million in Q1 2020. The increase in adjusted EBITDA in Q1 2021 resulted from higher revenues and higher gross margins at all sites.

Net income attributable to shareholders for Q1 2021 was $3.1 million (Q1 2020: $(1.9) million) or $0.02 per share (basic and diluted) (Q1 2020: $(0.01).

Adjusted net income attributable to shareholders (1) of $4.4, or $0.03 per share, for Q1 2021 as compared to the adjusted net income of $1.2 million, or $0.01 per share for Q1 2020.

Cash flow generated from operations before movements in working capital of $25.6 million for Q1 2021 increased compared to $15.7 million in Q1 2020. The increase in operating cash flow is mainly the result of higher consolidated revenues generated, and higher gross margins realized.

Cash and cash equivalents of $74.3 million and working capital of $64.7 million as at March 31, 2021, compared to $71.5 million and $70.1 million, respectively, at the end of 2020. Cash and cash equivalents increased during Q1 2021 due to $18.2 million of operating cash flows after working capital adjustments and taxes offset by $14.6 of cash used in investing activities and interest payments of $0.8 million.

⁽¹⁾ This is a non-IFRS performance measure. See the Non-IFRS Performance Measures section of the MD&A.

Exploration Update

Peru:

During the first quarter, surface exploration continued in the Triada copper porphyry (446 meters) and Kilkasca zones (224 meters);

Underground exploration continued during Q1 2021 with the aim to replace and increase mineral resources that were depleted during 2020. Approximately 5,028 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

At Bolivar during Q1 2021, 11,185 meters were drilled from the surface as well as diamond drilling within the mine. Surface exploration drilling included 2,071 meters drilled in the Bolivar West – Bolivar West extension and 3,697 meters in the “Gallo Inferior” (“La Montura” Area) encountering skarn intersections with mineralization. Additionally, infill drilling of 2,846 meters was completed in the Bolivar West zone and 2,571 meters in the Gallo Inferior (Fierro Mine).

Cusi

During Q1 2021, the Company completed 2,775 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,383 meters of surface drilling was completed to support the “San Juan Vein” exploration and the “Gallo vein.”

Covid-19 Update and Guidance

The COVID-19 pandemic has impacted the Company’s operations, and this is reflected in delays in mine development and preparation of areas for mining and consequent lower head grades. A lower volume of sales is a result of a decrease in concentrate production attributable to lower grades. Costs are also negatively impacted mainly due to indirect fixed costs which have to be incurred, despite lower production. The Company continues to take proactive and reactive mitigation measures to minimize any potential impacts COVID-19 may have on its employees, communities, operations, supply chain, and finances. These measures, including COVID testing and quarantining employees and contractors. Further, some exploration and capital expenditure projects have been deferred due to ongoing and residual difficulties.

On January 27, 2021, the Peruvian Government, in response to the “second wave” of COVID-19, declared a quarantine period in certain cities for two weeks ending on February 14, 2021. This period was extended on February 10, 2021, for an additional two weeks until February 28, 2021. The second wave in Perú is still ongoing, with the number of cases remaining at all-time highs.

In Mexico, the contagion was at its peak at the end of 2020. Hospitalization rates were higher than 80% of the capacity in the state of Chihuahua, where the Company operates. Although the number of new cases declined until mid-March 2021, these cases have gradually been increasing since then, possibly due to new strains of the virus. The Mexican Government announced a precautionary closure of non-essential businesses in the last weekend of April 2021, and greater restrictions have been imposed on businesses and the mobility of people.

Currently, although the operations have not been directly affected by these recent additional measures taken by the local governments, they are affected by the overall pandemic operational restrictions and inefficiencies. Management continues to assess the situation but is maintaining its production guidance of between 155 million to 170 million Cu Eq pounds issued on January 18, 2021.

Conference Call and Webcast

Sierra Metals’ senior management will host a conference call on Friday, May 7, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended March 31, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/3081089/8CC784C584EEDC0F4B1375A13E2CE27A

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call.

If you experience difficulty registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call. However, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link for Phone:

http://www.directeventreg.com/registration/event/4189713

Qualified Persons

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 30, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Salem Media (SALM) – Steady As She Goes

Posted on May 7, 2021 by Admin

Friday, May 07, 2021

Salem Media (SALM)
Steady As She Goes

Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 exceeds expectations. Total company revenues increased 1.9% to $59.4 million versus our $56.4 million estimate. Cash flow, as measured by adjusted EBITDA, beat expectations as well, $7.9 million versus our estimate of $4.9 million. Each of the company’s operating segments performed better than our expectations, with the largest upside in its Publishing division.

Favorable Q2 outlook. Management indicated that Q2 revenues are expected to increase between 13% and 15%, which is slightly better than our expectations. Expense growth guidance between 6% and 9% is a little higher than we have modeled. As such, while we are raising our Q2 revenue estimate, we are tweaking lower our Q2 adj. EBITDA …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

InPlay Oil (IPOOF)(IPO:CA) – 2021-1Q Operating Results Leverage Drilling Success

Posted on May 7, 2021 by Admin

Friday, May 07, 2021

InPlay Oil (IPOOF)(IPO:CA)
2021-1Q Operating Results Leverage Drilling Success

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter production results surpassed elevated expectations. Results were generally in line with our elevated expectations. Production levels rose to 4,965 BOE/day, up 17% q-t-q and above our 4,809 estimate. Wells drilled in the Pembina Basin last year are producing well above expectations leading management to shift drilling to that area (including 3 wells drilled this quarter) where the company made a recent tuck-in acquisition. The shift is making light oil a larger component of production at a time of high oil prices.

Realized prices were slightly below expectations. Realized oil prices were C$55.75/BBL, a sharp rise over previous quarters but below our C$60.49 estimate. Basin discounts were larger than expected and will need to improve in upcoming quarters to meet management’s guidance for the year. Natural gas and NGL prices were in line with expectations. No new hedges were added leaving more than half of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Genco Shipping and Trading Limited (GNK) – Post Call Estimate Adjustments and Price Target Increase

Posted on May 7, 2021 by Admin

Friday, May 07, 2021

Genco Shipping & Trading Limited (GNK)
Post Call Estimate Adjustments and Price Target Increase

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Adjusted 1Q2021 EBITDA of $21.0 million was in line with expectations. TCE rates averaged $12.2k/day down from $13.2k/day in 4Q2021, with Capes at $13.6k/day, Ultra/Supras at $11.7k/day and Handys at $7.9k/day. Costs were also in line with lower opex more than offsetting higher G&A expenses.

Post call fine tuning 2021 EBITDA estimate to $179.3 million on TCE rate assumptions of $19.1k/day. Forward cover is higher versus 1Q2021 and TCE rates are much higher with 74% of 2Q2021 days booked at $20.7k/day. By sector, forward cover is 72% booked at $24.9k/day for Capes and 76% booked at $17.8k/day for Ultra/Supramaxes. Also, three time charters were recently signed, which indicates that the …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Entravision Communications Corporation (EVC) – Hits A Digital Home Run

Posted on May 7, 2021 by Admin

Friday, May 07, 2021

Entravision Communications Corporation (EVC)
Hits A Digital Home Run

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 exceeds expectations. Q1 revenues increase 131% to $148.8 million, beating our estimate by nearly 20%. The extraordinary growth was primarily driven by the October 2020 acquisition of Cisneros Interactive, which increased revenues a remarkable 43% on a proforma basis, as if the company owned the operations a year earlier. Notably, the company’s Digital business represented 68% of total company revenues in the quarter, leading its diversified broadcast peers.

Core advertising improves. The strong Digital performance overshadowed the company’s underlying strength in its broadcast core advertising. Q1 core Television increased 3% and Audio (Radio) core increased 6%. Management indicated that Q2 core Television advertising is pacing up a strong 44%, 55% excluding Political. Radio is up 84%. Digital revenues are pacing up 900% …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

DLH Holdings Corp. (DLHC) – Post Call Commentary Updated Models

Posted on May 7, 2021 by Admin

Friday, May 07, 2021

DLH Holdings Corp. (DLHC)
Post Call Commentary, Updated Models

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Two Down and One to Go. DLHC has now won recompetes on two of its three key contracts. We expect DLH to retain the VA logistics award after the protest and we believe the logistics win puts the Company in the drivers seat for the pharmacy services contract. Nailing down these three contracts positions the Company to add incremental organic growth from the recent acquisitions and any future acquisitions, in our view.

Expanded TAM. DLH’s recent acquisitions, specifically S3 and IBA, have expanded the Company’s Total Addressable Market, in our view. Management continues to see significant opportunities going forward and we believe the Company’s increased size provides DLH with the breadth and depth to compete for an expanded menu of awards. We also believe the Company will be successful in competing for …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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E.W. Scripps Company (SSP)
Stepping Up To The OTT Plate

CoreCivic, Inc. (CXW)
Post Call Update

Salem Media (SALM)
Steady As She Goes

InPlay Oil (IPOOF)(IPO:CA)
2021-1Q Operating Results Leverage Drilling Success

Genco Shipping & Trading Limited (GNK)
Post Call Estimate Adjustments and Price Target Increase

Entravision Communications Corporation (EVC)
Hits A Digital Home Run

DLH Holdings Corp. (DLHC)
Post Call Commentary, Updated Models