Release – Flotek Announces Second Quarter 2021 Results

Posted on August 10, 2021 by Admin

Flotek Announces Second Quarter 2021 Results

HOUSTON, Aug. 9, 2021 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced second quarter results for the three months ended June 30, 2021.

John W. Gibson, Jr., Chairman, President, and Chief Executive Officer stated, “Two of our most significant customers changed ownership on accelerated timelines in the second quarter, and both buyers suspended our forecasted business immediately following their closings. Excluding these events, customer growth and diversification was strong, with a 26% sequential increase of new customers in our energy chemistry technologies business. Additionally, our Data Analytics segment improved slightly, experiencing the third sequential improvement in sales and representing our highest performing quarter since our acquisition of JP3 last year.”

“We remain focused on engaging with the industry to demonstrate the strategic benefits of our green chemistry solutions to support their ESG and operational goals. We are encouraged by the increased interest we are seeing in our value proposition; and to further accelerate these efforts, we have structurally realigned to reallocate resources to expand our sales team. This will support our strategy to diversify our customer base and expand our channels-to-market across the energy life cycle. Additionally, we are pleased that we have secured our first international sale for JP3 with a supermajor energy company in Southeast Asia, measuring hydrocarbons in their offshore operations – an exciting new frontier for our technologies.”

“We also continued to improve our liquidity, supported by recent actions. We have completed a lease agreement for our Waller facility with Resolute Oil, converting it into a more marketable, income-generating property. Further, we are pleased we have attained full forgiveness of our JP3 PPP loan. Additionally, we are exploring a number of credit-enhancing options, including an asset-based line of credit.”

Second Quarter Financial Results

Consolidated Revenues: Flotek generated second quarter 2021 consolidated revenue of $9.2 million, up 3.4% from $8.9 million in the second quarter 2020, and was down 22.0% versus $11.8 million in the first quarter 2021. The sequential decline in sales was driven by the loss of revenue associated with two major energy customers through M&A activity. The year-over-year increase in revenue was driven by the acquisition of JP3 in May 2020.
Consolidated Operating Expenses: Consolidated operating expenses (excluding depreciation and amortization) were $12.1 million in the second quarter 2021, a 12.3% decline from $13.8 million in the first quarter 2021 driven by a continued reduction in costs of sales, as well as lowering operating expenses. Year over year, consolidated operating expenses (excluding depreciation and amortization) rose 4.1% and were flat as a percentage of revenue.
Corporate General & Administrative Expenses (CG&A): Corporate general and administrative expenses for the second quarter of 2021 were $2.9 million, compared to $5.4 million for the second quarter of 2020 and $4.4 million for the first quarter of 2021. The declines were primarily driven by lower personnel costs and the Employee Retention Credit (“ERC”) recorded in the second quarter.
Adjusted EBITDA: Adjusted EBITDA for the second quarter 2021 was a loss of $6.7 million, slightly higher than the $6.5 million loss in the first quarter of 2021 and flat with the loss of $6.7 million last year.
Net Loss: The Company reported a net loss for the second quarter 2021 of $6.5 million, or a loss of $0.09 per basic/diluted share, an improvement over the net loss in the second quarter 2020 of $9.6 million, or a loss of $0.14 per basic/diluted share. Net loss for the second quarter 2021 improved compared to the net loss for the first quarter of 2021 of $8.3 million, or a loss of $0.12 per basic/diluted share.

Balance Sheet and Liquidity
As of June 30, 2021, the Company had cash and equivalents of $27.8 million which were impacted by operating losses and partially offset by the ERC taken in the quarter. Flotek also had a combined $4.8 million of loans outstanding pursuant to the Paycheck Protection Program (“PPP”) related to the “Cares Act.” In the second quarter 2021, JP3 was given full forgiveness of its $881,000 loan, and recently, Flotek filed for forgiveness of its PPP loan. The Company has also completed a term sheet for an asset-based line of credit.

Chemistry Technologies Segment: Energy Chemistries and Professional Chemistries
In the second quarter 2021, sales in the Chemistry Technologies segment declined 3.4% year-over-year to $7.7 million. The decrease was primarily a result of the loss of sales from two energy customers impacted by M&A activity in the second quarter. Professional Chemistries improved sequentially driven by sales of degreasers and disinfectants.

Highlights from the quarter include:

Entered into a multi-year lease agreement with Resolute Oil, a leader in high-quality white mineral oil. The agreement will generate other income while offsetting costs for Flotek and will allow Resolute to utilize the Company’s chemical blending facility in Waller, Texas to manufacture and globally distribute USP-NF-grade white mineral oil. Additionally, the collaboration between Flotek and Resolute will enable the companies to leverage their expertise in adjacent market verticals for mutual benefit. The agreement includes options to renew until 2036.
In support of the Company’s efforts to accelerate its ESG (Environmental, Social & Governance) solutions for domestic and international E&P operators and service companies across the energy life cycle, Flotek realigned and reallocated resources to build out its sales and marketing talent. The reallocation will result in a net, annualized cost savings of more than $1 million in salaries and benefits, while doubling the headcount in the sales force.
Following a successful field trial for a customer in the Permian Basin, the customer expanded its green, reservoir-centric chemistry technologies to new unconventional basins and technology applications.
Secured multiple remediation treatment applications of its Complex nano-fluid^® technologies, the Company’s bio-based, high-performance chemistry built upon non-toxic, plant-based solvents. The technology is enabling Flotek’s customers to cost effectively remove the use of BTEX (benzene, toluene, ethylbenzene and xylene) and other harmful solvents thus reducing the environmental risk of their remediation and production programs.
Following its strategic focus to rebuild its indirect sales channel relationships, the Company grew its customer base and domestic revenue associated with service companies by 58% and 68%, respectively, over Q1 2021.
Partnered with a major customer to begin an ESG scorecard assessment of their chemistry usage, identifying new opportunities to support their ESG goals.
Increased sales in the Professional Chemistries business, driven by strength in janitorial disinfectants and cleaning products, as well as establishing new contractual relationships with leading large-scale distributors and redistributors.

Data Analytics Segment
In the second quarter 2021, Data Analytics’ (“JP3”) sales were flat with first quarter 2021. Second quarter 2021 revenue was driven by the addition of new customers and new purchases by existing customers. Flotek acquired JP3 in May 2020, and as a result full quarter year-over-year results are not available for comparison. Highlights include:

In the second quarter 2021, JP3 completed the specifications and manufacturing of the international Verax analyzer prototype.
JP3 is currently undergoing the extensive process to secure the approvals from multiple international certifying bodies to ready the equipment for deployment.
JP3 received its first international purchase order supporting a supermajor energy company in Southeast Asia. This order also represents JP3’s first offshore deployment, expanding both its application use cases and geographical footprint.
International pilot programs that began in the first quarter remain on-track.

Conference Call Details
Flotek will host a conference call on Tuesday, August 10, 2021, at 8:30 am CDT (9:30 a.m. EDT) to discuss its second quarter results for the three months ended June 30, 2021. Participants may access the call through Flotek’s website at www.flotekind.com under “Webcasts” or by telephone at 844-835-9986.

About Flotek Industries, Inc.
Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream, and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.

Flotek Industries, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share data)

	June 30, 2021	December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$ 27,781	$ 38,660
Restricted cash	40	664
Accounts receivable, net of allowance for doubtful accounts of $1,329
and $1,316 at June 30, 2021 and December 31, 2020, respectively	9,713	11,764
Inventories, net	11,499	11,837
Income taxes receivable	71	403
Other current assets	3,255	3,127
Assets held for sale	546	—
Total current assets	52,905	66,455
Property and equipment, net	8,017	9,087
Operating lease right-of-use assets	2,162	2,320
Goodwill	8,092	8,092
Deferred tax assets, net	213	223
Other long-term assets	29	33
TOTAL ASSETS	$ 71,418	$ 86,210
LIABILITIES AND STOCKHOLDERS’ & EQUITY
Current liabilities:
Accounts payable	$ 6,587	$ 5,787
Accrued liabilities	17,221	18,275
Income taxes payable	39	21
Interest payable	58	34
Current portion of operating lease liabilities	589	636
Current portion of finance lease liabilities	55	60
Current portion of long-term debt	4,788	4,048
Total current liabilities	29,337	28,861
Deferred revenue, long-term	104	117
Long-term operating lease liabilities	8,011	8,348
Long-term finance lease liabilities	72	96
Long-term debt	0	1,617
TOTAL LIABILITIES	37,524	39,039
Stockholders’ Equity:
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued
and outstanding	—	—
Common stock, $0.0001 par value, 140,000,000 shares authorized; 79,606,743
shares issued and 70,152,591 shares outstanding at June 30, 2021;
78,669,414 shares issued and 73,088,494 shares outstanding at December 31, 2020	8	8
Additional paid-in capital	361,424	359,721
Accumulated other comprehensive income (loss)	13	(19)
Accumulated deficit	(293,534)	(278,688)
Treasury stock, at cost; 5,627,646 and 5,580,920 shares at June 30, 2021
and December 31, 2020, respectively	(34,017)	(33,851)
Total stockholders’ equity	33,894	47,171
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 71,418	$ 86,210

Flotek Industries, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)

	Three Months Ended			Six Months Ended
	6/30/2021	6/30/2020	3/31/2021	6/30/2021	6/30/2020

Revenue	$ 9,165	$ 8,880	$ 11,770	$ 20,935	$ 28,296
Costs and expenses:
Operating expenses (excluding depreciation and amortization)	12,110	11,632	13,801	25,911	34,473
Corporate general and administrative	2,868	5,395	4,361	7,229	9,888
Depreciation and amortization	253	468	307	560	2,659
Research and development	1,466	1,638	1,542	3,008	4,193
Loss (gain) on disposal of long-lived assets	(71)	(22)	2	(69)	(55)
Impairment of fixed, long-lived and intangible assets	–	–	–	–	57,454
Total costs and expenses	16,626	19,111	20,013	36,639	108,612
Loss from operations	(7,461)	(10,231)	(8,243)	(15,704)	(80,316)
Other (expense) income:
Payment Protection Program forgiveness	881	–	–	881	–
Gain on lease termination	–	576	–	–	576
Interest expense	(17)	(16)	(18)	(35)	(20)
Other (expense) income, net	72	78	(32)	39	31
Total other (expense) income, net	936	638	(51)	885	587
Loss before income taxes	(6,525)	(9,593)	(8,294)	(14,819)	(79,729)
Income tax (expense) benefit	(21)	32	(6)	(27)	6,201
Net loss	(6,546)	(9,561)	(8,300)	(14,846)	(73,528)

Loss per common share:
Basic	$ (0.09)	$ (0.14)	$ (0.12)	$ (0.22)	$ (1.17)
Diluted	$ (0.09)	$ (0.14)	$ (0.12)	$ (0.22)	$ (1.17)

Weighted average common shares:
Weighted average common shares used in computing basic and diluted loss per common share	69,531	66,035	68,447	69,001	62,828

Flotek Industries, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

	Six months ended June 30,
	2021	2020
Cash flows from operating activities:
Net loss	$ (14,846)	$ (73,528)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of contingent consideration	(302)	–
Depreciation and amortization	560	2,659
Provision for doubtful accounts	(1)	474
Provision for excess and obsolete inventory	580	529
Impairment of right-of-use assets	–	7,434
Impairment of fixed assets	–	30,178
Impairment of intangible assets	–	19,842
Gain on sale of assets	(69)	(631)
Non-cash lease expense	163	242
Stock compensation expense	1,750	1,521
Deferred income tax provision (benefit)	10	(105)
PPP loan forgiveness	(881)	–
Changes in current assets and liabilities:
Accounts receivable, net	1,995	7,252
Inventories, net	(222)	6,418
Income taxes receivable	207	(6,351)
Other current assets	(672)	1,715
Other long-term assets	541	–
Accounts payable	801	(10,229)
Accrued liabilities	(1,048)	(16,755)
Income taxes payable	168	119
Interest payable	24	–
Net cash used in operating activities	(11,242)	(29,216)
Cash flows from investing activities:
Capital expenditures	(31)	(42)
Proceeds from sale of business	–	9,844
Proceeds from sale of assets	74	66
Purchase of JP3, net of cash acquired	–	(26,284)
Abandonment of patents and other intangible assets	–	(8)
Net cash provided by (used in) by investing activities	43	(16,424)
Cash flows from financing activities:
Proceeds from Paycheck Protection Program loan	–	4,798
Purchase of treasury stock	(78)	(82)
Proceeds from sale of common stock	(166)	358
Payments for finance leases	(29)	(51)
Net cash (used in) provided by financing activities	(273)	5,023
Effect of changes in exchange rates on cash and cash equivalents	(31)	(31)
Net change in cash, cash equivalents and restricted cash	(11,503)	(40,648)
Cash and cash equivalents at beginning of period	38,660	100,575
Restricted cash at beginning of period	664	663
Cash and cash equivalents and restricted cash at beginning of period	39,324	101,238
Cash and cash equivalents at end of period	27,781	59,926
Restricted cash at the end of period	40	664
Cash, cash equivalents and restricted cash at end of period	$ 27,821	$ 60,590

Flotek Industries, Inc.
Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings
(in thousands)

GAAP Loss from Operations and Reconciliation to Adjusted EBITDA (Non-GAAP)

		Three Months Ended			Six Months Ended
		6/30/2021	6/30/2020	3/31/2021	6/30/2021	6/30/2020


Loss from Operations (GAAP)		$ (6,546)	$ (9,561)	$ (8,300)	$ (14,846)	$ (73,528)

	Interest Expense	17	16	18	35	20

	Interest Income	(3)	12	(5)	(8)	(257)

	Income Tax Benefit (Expense)	21	(32)	6	27	(6,201)

	Depreciation and Amortization	253	468	307	560	2,659

	Impairment of Fixed and Long Lived Assets	–	–	–	–	57,454

EBITDA (Non-GAAP)		$ (6,258)	$ (9,097)	$ (7,974)	$ (14,232)	$ (19,853)

	Stock Compensation Expense	969	1,059	738	1,707	1,521

	Severance and Retirement	946	1,227	33	979	2,765

	Inventory Write-Down	–	–	–	–	2,293

	M&A Transaction Costs	100	498	(157)	(57)	498

	Inventory Step-Up	32	155	48	80	155

	(Gain) loss on Disposal of Assets	(71)	(22)	2	(69)	(55)

	Gain on Lease Termination	–	(576)	–	–	(576)

	PPP Loan Forgiveness	(881)	–	–	(881)	–

	Employee Retention Credit	(1,923)	–	–	(1,923)	–

	Non-recurring Professional Fees	447	–	147	594	–

	Discontinued Legal Fees	(59)	73	518	459	322

	Winter Storm (Natural Disaster)	–	–	199	199	–

Adjusted EBITDA (Non-GAAP)		$ (6,698)	$ (6,683)	$ (6,446)	$ (13,144)	$ (12,930)

(1) Management believes that adjusted EBITDA for the three and six months ended June 30, 2021 and June 30, 2020, and the three months ended March 31, 2021, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the expenses noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish operational goals.

SOURCE Flotek Industries, Inc.

Release – CoreCivic Reports Second Quarter 2021 Financial Results

Posted on August 10, 2021 by Admin

CoreCivic Reports Second Quarter 2021 Financial Results

BRENTWOOD, Tenn., Aug. 09, 2021 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the second quarter of 2021.

Financial Highlights – Second Quarter 2021

Total revenue of $464.6 million
- CoreCivic Safety revenue of $419.9 million
- CoreCivic Community revenue of $24.9 million
- CoreCivic Properties revenue of $19.7 million
Diluted earnings per share of $0.13
Adjusted diluted EPS of $0.25
Normalized FFO per diluted share of $0.46
Adjusted EBITDA of $101.7 million
Sale of five non-core real estate assets for gross proceeds of $328.7 million
Issuance of $450.0 million of Unsecured Senior Notes

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “We had a strong quarter as our business remains resilient and our cash flows are stable. Adjusted EBITDA generated in the second quarter of 2021 slightly exceeded Adjusted EBITDA for the same period in the prior year despite the continuing impact of COVID-19. During the quarter we continued to make meaningful progress on our capital allocation strategy to extend debt maturities, reduce overall debt leverage and improve our credit profile through the sale of our non-core real estate assets and our issuance of unsecured bonds in April. We are confident in the stability of our cash flows and believe our capital allocation strategy best positions the company to generate long-term value.”

Second Quarter 2021 Financial Results Compared With Second Quarter 2020

Net income attributable to common stockholders in the second quarter of 2021 totaled $15.6 million, or $0.13 per diluted share, compared with net income attributable to common stockholders generated in the second quarter of 2020 of $22.2 million, or $0.18 per diluted share. Adjusted for special items, net income in the second quarter of 2021 was $31.1 million, or $0.25 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the second quarter of 2020 of $39.6 million, or $0.33 per diluted share. Special items in the second quarter of 2021 included a charge of $52.2 million in expenses associated with debt repayments and refinancing transactions, $2.9 million in asset impairments, $2.6 million in shareholder litigation expense, $0.8 million in expenses associated with COVID-19, and a $38.8 million gain on the sale of non-core real estate assets, net of $4.2 million of income tax benefits for such items. Special items in the second quarter of 2020 included $11.7 million in asset impairments, $8.2 million in expenses associated with COVID-19 (including hero bonuses of $6.3 million to facility staff), $0.3 million of expenses associated with the evaluation of our change in corporate tax structure, and a $2.8 million gain on the sale of non-core real estate assets.

EBITDA was $82.1 million in the second quarter of 2021, compared with $83.7 million in the second quarter of 2020. Adjusted EBITDA, which excludes the special items described above, was $101.7 million in the second quarter of 2021, compared with $101.1 million in the second quarter of 2020. Adjusted EBITDA increased from the prior year quarter despite a $3.2 million reduction in facility EBITDA attributable to the operations in the second quarter of 2020 of the 42 properties sold in the fourth quarter of 2020 and the five additional non-core real estate assets sold in the second quarter of 2021.

Funds From Operations (FFO) was $11.4 million, or $0.09 per diluted share, in the second quarter of 2021, compared to $57.4 million, or $0.47 per diluted share, in the second quarter of 2020. Normalized FFO, which excludes the special items described above, was $56.0 million, or $0.46 per diluted share, in the second quarter of 2021, compared with $67.8 million, or $0.56 per diluted share, in the second quarter of 2020. FFO and Normalized FFO were also impacted by our new corporate tax structure.

Adjusted financial results in the second quarter of 2021, compared with the second quarter of 2020, declined primarily because 2021 financial results reflect an income tax provision under our new corporate tax structure effective January 1, 2021, compared with the prior year when we were entitled to a deduction for dividends paid as a real estate investment trust (REIT), which significantly reduced our income tax expense.

Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and related note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.

Business Development Updates

New Contract Award with Mahoning County at the Northeast Ohio Correctional Center. On May 28, 2021, we entered into a new three-year contract with Mahoning County, Ohio to utilize up to 990 beds at our 2,016-bed Northeast Ohio Correctional Center. Mahoning County is responsible for County inmates and federal detainees, and the County is using the Northeast Ohio facility to address its population needs. The management contract with Mahoning County replaces a contract we had with U.S. Marshals Service (USMS) for up to 992 beds at the Northeast Ohio facility. In addition to providing much needed capacity for Mahoning County, the Company also cares for approximately 800 inmates under a management contract with the state of Ohio at the Northeast Ohio Correctional Center.

Contract Expansion with the State of Montana at the Crossroads Correctional Center. On July 27, 2021, we entered into an amendment to our contract with the state of Montana to utilize all of the capacity at the 664-bed Crossroads Correctional Center, including approximately 96 beds recently vacated by the USMS due to a contract expiration, and to extend the existing contract to June 30, 2023, with additional renewal options by mutual agreement through August 31, 2029.

Contract Renewal with the State of Hawaii at the Saguaro Correctional Facility. On July 1, 2021, we received a Notice of Award from the State of Hawaii for the rebid of our contract at the 1,896-bed Saguaro Correctional Facility in Eloy, Arizona. We expect to enter into a new three-year contract with Hawaii, and currently care for approximately 1,100 inmates from Hawaii, along with approximately 375 inmates from the state of Idaho, at this facility.

Contract Renewal with ICE at the Elizabeth Detention Center. ICE has notified the Company of its intent to exercise its renewal option to extend our contract at the 300-bed Elizabeth Detention Center through August 31, 2023.

Sale of Five Non-Core Properties for $328.7 Million. On June 29, 2021, the Company announced it had completed the sale of 100% of the membership interests of SSA Baltimore Holdings, LLC, a wholly-owned unrestricted subsidiary of ours and the owner of the approximately 541,000 square-foot Social Security Administration office building in Baltimore, Maryland (SSA-Baltimore). Earlier in the second quarter of 2021, we completed the sale of two additional properties, our approximately 277,000 square-foot office property in Tallahassee, Florida (Capital Commerce Center) and our approximately 217,000 square-foot warehouse property in Dayton, Ohio (NARA-Dayton) in a single transaction. These three properties were sold for an aggregate gross sales price of $326.0 million. The Company had purchased all three properties in 2018 in separate transactions for an aggregate gross purchase price of $293.6 million. Concurrent with the sale of these three properties, the Company used $194.4 million of the aggregate sales proceeds to fully repay two non-recourse mortgage notes associated with SSA-Baltimore and Capital Commerce Center, including prepayment premiums of an aggregate of $32.5 million. The total outstanding balances of the non-recourse mortgage notes, both of which had interest rates of 4.5%, were $161.9 million in the aggregate on the dates sold. The sale of these three non-core government-leased properties generated net proceeds of nearly $122.5 million after repayment of the non-recourse mortgage notes and other transaction-related costs.

During the second quarter of 2021, we also sold two idled non-core real estate properties located in St. Louis, Missouri and Philadelphia, Pennsylvania, in separate transactions for gross proceeds of $2.7 million, generating net proceeds of $2.5 million after transaction-related costs.

Recent Developments

Balance Sheet and Debt Reduction Update

On April 14, 2021, we completed the offering of $450.0 million aggregate principal amount of 8.25% senior unsecured notes, due April 2026. We used net proceeds from the offering of the new notes of approximately $435.1 million, after deducting the original issuance and underwriting discounts, and estimated offering expenses, to redeem all $250.0 million principal amount of our outstanding 5.0% senior unsecured notes due 2022. We used additional net proceeds from the offering to repay $149.0 million of the $350.0 million principal amount of our outstanding 4.625% senior unsecured notes due 2023 (the 2023 notes) at an aggregate purchase price of $151.2 million in privately negotiated transactions, reducing the outstanding balance of the 2023 notes to $201.0 million.

On June 21, 2021, we purchased an additional $27.0 million of the 2023 notes at par in a privately negotiated transaction, further reducing the outstanding balance of the 2023 notes to $174.0 million. Following these transactions, the 2023 notes are the Company’s nearest-term unsecured note maturity.

As of June 30, 2021, we had $162.9 million in cash and only $112.0 million drawn on our $800 million revolving credit facility, which matures in April 2023. We have made substantial progress in reducing debt toward our targeted total leverage ratio, or net debt to Adjusted EBITDA, of 2.25x to 2.75x. Using the trailing twelve months ended June 30, 2021, our total leverage ratio was 3.3x, compared with 3.9x using the trailing twelve months ended June 30, 2020. Including repayments of the mortgage notes associated with the sale of non-core assets, we have reduced our net debt balance by almost $550.0 million during the last twelve months.

Termination of Leases by the State of Alabama

In February 2021, we entered into two 30-year lease agreements with the Alabama Department of Corrections (ADOC) for the development of two correctional facilities in Alabama, which was subject to the successful completion of financing we were pursuing on behalf of the state of Alabama. Subsequent to quarter-end, we received notice from the ADOC of its decision to terminate the leases effective August 6, 2021. We continue to engage in discussions with the ADOC regarding our potential involvement in their pursuit of construction and financing of the facilities. As a result of the lease terminations, during the third quarter of 2021, we expect to report asset impairment charges of $4.0 million to $6.0 million for pre-development activities, subject to certain vendor negotiations.

Update on Contracts with the United States Marshals Service.

Pursuant to President Biden’s Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities (the Private Prison EO), the USMS has indicated that it has been advised by the Office of the Deputy Attorney General not to renew existing contracts, or enter into new contracts for private detention facilities. We currently have two remaining contracts with the USMS that expire in 2021.

The USMS has full access to our 600-bed West Tennessee Detention Facility and our 1,033-bed Leavenworth Detention Center under direct contracts with the USMS that expire in September 2021 and December 2021, respectively. We do not yet know if the USMS will relocate the detainees at our West Tennessee and Leavenworth facilities. We continue to work with the USMS to enable it to fulfill its mission, including at the West Tennessee and Leavenworth facilities. However, we can provide no assurance that we will be able to provide a solution that is acceptable to all parties that would be involved in such a solution.

Financial Guidance

At this time we are not providing 2021 financial guidance because of uncertainties associated with COVID-19, including a resurgence caused by the Delta variant, as well as uncertainties associated with the application of the administration’s various executive actions and policies related to immigration and criminal justice. We do not expect to provide financial guidance until we have further clarity around these uncertainties. Our business is very durable, and continues to generate cash flow even during these unprecedented disruptions to the economy and criminal justice system. This resiliency is due to the essential nature of our facilities and services in our Safety and Community segments, further enhanced by the stability of our Properties segment, all supported by payments from highly rated federal, state, and local government agencies.

Supplemental Financial Information and Investor Presentations

We have made available on our website supplemental financial information and other data for the second quarter of 2021. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation, and disclaim any duties to update any of the information disclosed in this report.

Management may meet with investors from time to time during the third quarter of 2021. Written materials used in the investor presentations will also be available on our website beginning on or about August 30, 2021. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.

Conference Call, Webcast and Replay Information

We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Tuesday, August 10, 2021, which will be accessible through the Company’s website at www.corecivic.com under the “Events & Presentations” section of the “Investors” page. The live broadcast can also be accessed by dialing 800-353-6461 in the U.S. and Canada, including the confirmation passcode 7244786. An online replay of the call will be archived on our website promptly following the conference call. In addition, there will be a telephonic replay available beginning at 1:00 p.m. central time (2:00 p.m. eastern time) on August 10, 2021, through 1:00 p.m. central time (2:00 p.m. eastern time) on August 18, 2021. To access the telephonic replay, dial 888-203-1112 in the U.S. and Canada. International callers may dial +1 719-457-0820 and enter passcode 7244786.

About CoreCivic

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

Forward-Looking Statements

This press release contains statements as to our beliefs and expectations of the outcome of future events that are “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy (including the United States Department of Justice, or DOJ, not renewing contracts as a result of the Private Prison EO) (two agencies of the DOJ, the United States Federal Bureau of Prisons and the USMS utilize our services), legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, and the impact of any changes to immigration reform and sentencing laws (our company does not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (v) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, contract renegotiations or terminations, increases in costs of operations, fluctuations in interest rates and risks of operations; (vi) the duration of the federal government’s denial of entry at the United States southern border to asylum-seekers and anyone crossing the southern border without proper documentation or authority in an effort to contain the spread of COVID-19; (vii) government and staff responses to staff or residents testing positive for COVID-19 within public and private correctional, detention and reentry facilities, including the facilities we operate; (viii) restrictions associated with COVID-19 that disrupt the criminal justice system, along with government policies on prosecutions and newly ordered legal restrictions that affect the number of people placed in correctional, detention, and reentry facilities; (ix) whether revoking our REIT election, effective January 1, 2021, and our revised capital allocation strategy can be implemented in a cost effective manner that provides the expected benefits, including facilitating our planned debt reduction initiative and planned return of capital to shareholders; (x) our ability to successfully identify and consummate future development and acquisition opportunities and our ability to successfully integrate the operations of our completed acquisitions and realize projected returns resulting therefrom; (xi) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xii) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.

CoreCivic takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.

CORECIVIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

ASSETS	June 30, 2021			December 31, 2020

Cash and cash equivalents	$	162,891		$	113,219
Restricted cash		8,864			23,549
Accounts receivable, net of credit loss reserve of $6,777 and $6,103, respectively		282,227			267,705
Prepaid expenses and other current assets		37,267			33,243
Assets held for sale		–			279,406
Total current assets		491,249			717,122
Real estate and related assets:
Property and equipment, net of accumulated depreciation of $1,602,276 and $1,559,388, respectively		2,318,161			2,350,272
Other real estate assets		223,293			228,243
Goodwill		4,844			5,902
Non-current deferred tax assets		–			11,113
Other assets		386,649			396,663

Total assets	$	3,424,196		$	3,709,315

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued expenses	$	284,604		$	274,318
Current portion of long-term debt		31,999			39,087
Total current liabilities		316,603			313,405

Long-term debt, net		1,480,293			1,747,664
Deferred revenue		27,336			18,336
Non-current deferred tax liabilities		86,323			–
Other liabilities		203,411			216,468

Total liabilities		2,113,966			2,295,873

Commitments and contingencies

Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at June 30, 2021, and December 31, 2020, respectively		–			–
Common stock ? $0.01 par value; 300,000 shares authorized; 120,285 and 119,638 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively		1,203			1,196
Additional paid-in capital		1,842,395			1,835,494
Accumulated deficit		(556,639	)		(446,519	)
Total stockholders’ equity		1,286,959			1,390,171
Non-controlling interest – operating partnership		23,271			23,271
Total equity		1,310,230			1,413,442

Total liabilities and equity	$	3,424,196		$	3,709,315

CORECIVIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2021			2020			2021			2020

REVENUES:
Safety	$	419,880		$	424,117		$	829,649		$	861,882
Community		24,929			26,004			48,587			56,603
Properties		19,732			22,483			40,987			45,162
Other		30			37			66			95
		464,571			472,641			919,289			963,742

EXPENSES:
Operating
Safety		307,280			323,739			612,707			654,476
Community		20,024			22,201			41,124			46,650
Properties		5,668			6,906			11,942			13,860
Other		98			81			181			256
Total operating expenses		333,070			352,927			665,954			715,242
General and administrative		33,228			30,145			62,758			61,424
Depreciation and amortization		34,084			38,619			66,796			76,571
Shareholder litigation expense		2,550			–			54,295			–
Asset impairments		2,866			11,717			4,174			12,253
		405,798			433,408			853,977			865,490

OTHER INCOME (EXPENSE):
Interest expense, net		(23,222	)		(20,996	)		(41,650	)		(43,534	)
Expenses associated with debt repayments and refinancing transactions		(52,167	)		–			(52,167	)		–
Gain on sale of real estate assets, net		38,766			2,818			38,766			2,818
Other income (expense)		(8	)		169			(156	)		702

INCOME (LOSS) BEFORE INCOME TAXES		22,142			21,224			10,105			58,238

Income tax benefit (expense)		(6,519	)		962			(120,050	)		(2,814	)
NET INCOME (LOSS)		15,623			22,186			(109,945	)		55,424

Net income attributable to non-controlling interest		–			–			–			(1,181	)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	15,623		$	22,186		$	(109,945	)	$	54,243


BASIC EARNINGS (LOSS) PER SHARE	$	0.13		$	0.19		$	(0.92	)	$	0.45

DILUTED EARNINGS (LOSS) PER SHARE	$	0.13		$	0.18		$	(0.92	)	$	0.45

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2021			2020			2021			2020

Net income (loss) attributable to common stockholders	$	15,623		$	22,186		$	(109,945	)	$	54,243
Non-controlling interest		–			–			–			1,181
Diluted net income (loss) attributable to common stockholders	$	15,623		$	22,186		$	(109,945	)	$	55,424

Special items:
Expenses associated with debt repayments and refinancing transactions		52,167			–			52,167			–
Expenses associated with mergers and acquisitions		–			–			–			338
Expenses associated with COVID-19		836			8,165			2,434			8,165
Expenses associated with changes in corporate tax structure		–			347			–			347
Income taxes associated with change in corporate tax structure and other special tax items		–			–			114,249			3,085
Gain on sale of real estate assets, net		(38,766	)		(2,818	)		(38,766	)		(2,818	)
Shareholder litigation expense		2,550			–			54,295			–
Asset impairments		2,866			11,717			4,174			12,253
Income tax expense (benefit) for special items		(4,185	)		–			(18,245	)		–
Adjusted net income	$	31,091		$	39,597		$	60,363		$	76,794
Weighted average common shares outstanding – basic		120,283			119,630			120,098			119,483
Effect of dilutive securities:
Restricted stock-based awards		434			2			275			25
Non-controlling interest – operating partnership units		1,342			1,342			1,342			1,342
Weighted average shares and assumed conversions – diluted		122,059			120,974			121,715			120,850
Adjusted Earnings Per Diluted Share	$	0.25		$	0.33		$	0.50		$	0.63

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2021			2020			2021			2020

Net income (loss)	$	15,623		$	22,186		$	(109,945	)	$	55,424
Depreciation and amortization of real estate assets		24,926			28,244			48,685			56,350
Impairment of real estate assets		–			9,750			1,308			10,155
Gain on sale of real estate assets, net		(38,766	)		(2,818	)		(38,766	)		(2,818	)
Income tax expense (benefit) for special items		9,641			–			9,291			–
Funds From Operations	$	11,424		$	57,362		$	(89,427	)	$	119,111

Expenses associated with debt repayments and refinancing transactions		52,167			–			52,167			–
Expenses associated with mergers and acquisitions		–			–			–			338
Expenses associated with COVID-19		836			8,165			2,434			8,165
Expenses associated with changes in corporate tax structure		–			347			–			347
Income taxes associated with change in corporate tax structure and other special tax items		–			–			114,249			3,085
Shareholder litigation expense		2,550			–			54,295			–
Goodwill and other impairments		2,866			1,967			2,866			2,098
Income tax benefit for special items		(13,826	)		–			(27,536	)		–
Normalized Funds From Operations	$	56,017		$	67,841		$	109,048		$	133,144

Funds From Operations Per Diluted Share	$	0.09		$	0.47		$	(0.73	)	$	0.99
Normalized Funds From Operations Per Diluted Share	$	0.46		$	0.56		$	0.90		$	1.10

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF EBITDA AND ADJUSTED EBITDA

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2021			2020			2021			2020

Net income (loss)	$	15,623		$	22,186		$	(109,945	)	$	55,424
Interest expense		25,843			23,873			46,768			48,428
Depreciation and amortization		34,084			38,619			66,796			76,571
Income tax expense (benefit)		6,519			(962	)		120,050			2,814
EBITDA	$	82,069		$	83,716		$	123,669		$	183,237
Expenses associated with debt repayments and refinancing transactions		52,167			–			52,167			–
Expenses associated with mergers and acquisitions		–			–			–			338
Expenses associated with COVID-19		836			8,165			2,434			8,165
Expenses associated with changes in corporate tax structure		–			347			–			347
Gain on sale of real estate assets, net		(38,766	)		(2,818	)		(38,766	)		(2,818	)
Shareholder litigation expense		2,550			–			54,295			–
Asset impairments		2,866			11,717			4,174			12,253
Adjusted EBITDA	$	101,722		$	101,127		$	197,973		$	201,522

NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION

Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company’s results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, lenders and security analysts disclosures of its results of operations on the same basis that is used by management. FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT).

NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. EBITDA, Adjusted EBITDA, and Normalized FFO are useful as supplemental measures of performance of the Company’s properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company’s tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company’s properties, management believes that assessing performance of the Company’s properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, M&A activity, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented. Even though expenses associated with mergers and acquisitions may be recurring, the magnitude and timing fluctuate based on the timing and scope of M&A activity, and therefore, such expenses, which are not a necessary component of the ongoing operations of the Company, may not be comparable from period to period.

Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company’s operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company’s consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.

Contact:

Investors: Cameron Hopewell – Managing Director, Investor Relations – (615) 263-3024
Financial Media: David Gutierrez, Dresner Corporate Services – (312) 780-7204

Release – Sierra Metals Reports Consolidated Financial Results for the Second Quarter of 2021 and Provides Revised Guidance for 2021

Posted on August 10, 2021 by Admin

Sierra Metals Reports Consolidated Financial Results for the Second Quarter of 2021 and Provides Revised Guidance for 2021

Conference Call August 10, 2021, at 10:30 AM (EDT)

(All $ figures reported in USD)

Revenue from metals payable of $79.4 million in Q2 2021, a 90% increase from $41.9 million in Q2 2020
Operating cash flows before movements in working capital of $35.8 million in Q2 2021, a 171% increase from $13.2 million in Q2 2020
Adjusted EBITDA of $37.7 million in Q2 2021, a 173% increase from $12.6 million in Q2 2021
Record quarterly throughput at the Yauricocha Mine in Peru
Q2 2021 consolidated production includes 9.5 million pounds of copper, a 2% decrease; 1.0 million ounces of silver, a 67% increase; 21.1 million pounds of zinc, a 54% increase; 8.0 million pounds of lead, a 24% increase; and 2,812 ounces of gold, a 2% increase respectively, compared to Q2 2020. Copper production decreased due to mining of lower-grade zones in Yauricocha and Bolivar
Cash costs and All-in Sustaining Costs (“AISC”) per copper equivalent payable pound of $1.41 and $1.57 respectively compared to Q2 2020 cash costs of $0.91 and AISC of $1.80 at the Yauricocha Mine; cash costs and AISC per copper equivalent payable pound of $1.17 and $3.27 respectively compared to Q2 2020 cash costs of $1.02 and AISC of $1.60 at the Bolivar Mine; cash costs and AISC per silver equivalent payable ounce of $21.67 and $35.73 respectively compared to Q2 2020 cash costs of $18.66 and AISC of $26.25 at the Cusi Mine; cash costs increased during Q2 2021 due to the ongoing COVID-19 related impact on operations, while AISC was driven higher by the increase in sustaining capital expenditure, as the mines tried to catch up on the capital expenditure deferred during the recent quarters.
$76.1 million of cash and cash equivalents as at June 30, 2021
A shareholder conference call to be held Tuesday, August 10, 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 $79.4 million and an adjusted EBITDA of $37.7 million on the throughput of 787,534 tonnes and metal production of 24.8 million copper equivalent pounds for the three-month period ended June 30, 2021. The Company saw increased metals production of all individual metals except copper in Q2 2021. However, using the formula below to calculate copper equivalent, the increased copper price lowers the total copper equivalent pounds produced.

Copper Equivalent Pounds produced = (Ag ounces Produced * Ag$) + (Pb pounds produced * Pb$) + (Zn Pounds Produced *Zn$) + (Au ounces produced *Au$) + (Cu Pounds Produced*Cu$) / Cu$

At the Yauricocha Mine, the higher throughput was partially offset by lower head grades for all metals, resulting in a 7% higher copper equivalent production as compared to Q2 2020. In terms of zinc equivalents, this was a 29% increase over the same quarter of 2020. Copper production for the quarter was 11% lower, while silver, lead, zinc and gold production increased by 35%, 22%, 54% and 23%, respectively, compared to Q2 2020. Due to COVID-19 operating restrictions, the focus has been on larger, but low-grade ore bodies to meet tonnages with a reduced workforce. As a result, mining of certain high-grade, but smaller ore bodies have been delayed while the Company continues to manage operations during the pandemic.

The Bolivar Mine processed 385,331 tonnes in Q2 2021, which is a 25% increase from the Q2 2020 throughput. The average daily throughput realized during the quarter was 4,404 tpd. Head grades for copper, silver, and gold were 8%, 27%, and 30% lower, respectively, compared to Q2 2020. Grades were negatively impacted by the inability to continue mining in the Bolivar West zone due to the COVID-19 residual delays in development and infrastructure. Production continues to be focused more on the Mina de Fierro zone in Q2 2021. Mina de Fierro is a larger ore body with greater tonnages; however, the head grades and recoveries are lower than the Bolivar West zone. Copper equivalent production for Q2 2021 decreased 8% compared to Q2 2020 because of lower silver (6%) and gold (15%) production offset by 5% higher copper production.

The Cusi Mine throughput for Q2 2021 was 73,294 tonnes or 838 tpd. There was no production during the same quarter of 2020, as Cusi remained in care and maintenance throughout that quarter due to the government-mandated shutdown to contain the advancement of COVID-19. The silver head grade for Q2 2021 was 138.94 g/t resulting in silver production of 269,000 ounces. Mined tonnage and grade were impacted by the problems related to underground water and high temperatures deemed unsafe to work in the planned mining zones. Additionally, gold production was 142 ounces, and lead production was 129,000 pounds respectively during the quarter.

Consolidated production of silver increased 67% to 1.0 million ounces, copper decreased 2% to 9.5 million pounds, lead increased 24% to 8.0 million pounds, zinc increased 54% to 21.1 million pounds, and gold increased 2% to 2,812 ounces compared to Q2 2020.

Luis Marchese, CEO of Sierra Metals, commented, “Despite the challenges we faced in relation to the COVID-19 pandemic in the second quarter, the Company continues to see improvements in consolidated throughput, revenue, EBITDA and net income over the same period in 2020 and over the previous quarter in 2021. Our teams are using best practices to manage the impact of the pandemic. However, in reflecting the ongoing challenges of the COVID-19 pandemic and the impact on operations in the first half of 2021, we saw the need to revise our production, cost, and EBITDA guidance to align with the outlook for the year. While Peru and Mexico are making important improvements on their vaccination efforts, COVID-19 remains an ongoing challenge, adding to our cost base and challenging some of our processes. Overall, our goal continues to be to avoid any mine closures while ensuring that strict protocols remain in place to protect the wellbeing of our employees and the local communities.”

He continued, “During the second quarter, we received the final permit required to expand the throughput at Yauricocha to 3,600 tonnes per day. Looking ahead to the remainder of 2021, we are also expanding and diversifying operations at Bolivar with the construction of a 500,000 tonne per year magnetite plant, expected to be fully operational early next year. Furthermore, we continue to work on the completion of a Preliminary Feasibility Study to evaluate a 53% throughput expansion at the Yauricocha Mine in Peru and a potential doubling of production at the Bolivar and Cusi Mines in Mexico. Finally, turning to exploration, we continue with our brownfield programs while reactivating our greenfield explorations programs, and we continue to work to improve operations and manage costs in this challenging environment.”

He concluded, “The Company continues to have a strong balance sheet and strong EBITDA to support the Company’s capital expenditures and growth initiatives at all mines, and we continue to work to improve per-share value for all shareholders. Based on our current budgeting process, and current strong metals price environment, this scenario could provide support for an attractive dividend policy.”

The following table displays selected financial and operational information for the three months ended June 30, 2021:

MDA Selected Financial Results


	Three Months Ended				Six Months Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Operating
Ore Processed / Tonnes Milled		787,534		511,485		1,561,955		1,252,183
Silver Ounces Produced (000’s)		954		572		1,915		1,520
Copper Pounds Produced (000’s)		9,535		9,708		17,430		21,483
Lead Pounds Produced (000’s)		7,960		6,406		16,964		15,485
Zinc Pounds Produced (000’s)		21,133		13,741		45,256		35,387
Gold Ounces Produced		2,812		2,762		5,448		6,419
Copper Equivalent Pounds Produced (000’s)¹		24,786		22,743		50,157		54,016
Zinc Equivalent Pounds Produced (000’s)¹		81,114		61,353		160,750		146,032
Silver Equivalent Ounces Produced (000’s)¹		4,043		3,297		7,778		8,028

Cash Cost per Tonne Processed	$	46.54	$	34.26	$	47.04	$	41.62
Cost of sales per AgEqOz	$	9.91	$	6.93	$	10.66	$	8.11
Cash Cost per AgEqOz²	$	9.17	$	6.87	$	10.06	$	7.79
AISC per AgEqOz²	$	18.48	$	12.29	$	19.04	$	13.71
Cost of sales per CuEqLb²	$	1.62	$	1.00	$	1.65	$	1.21
Cash Cost per CuEqLb²	$	1.49	$	1.00	$	1.56	$	1.16
AISC per CuEqLb²	$	3.01	$	1.78	$	2.95	$	2.04
Cost of sales per ZnEqLb²	$	0.50	$	0.37	$	0.52	$	0.45
Cash Cost per ZnEqLb²	$	0.46	$	0.37	$	0.49	$	0.43
AISC per ZnEqLb²	$	0.92	$	0.66	$	0.92	$	0.75

Cash Cost per ZnEqLb (Yauricocha)²	$	0.43	$	0.34	$	0.45	$	0.39
AISC per ZnEqLb (Yauricocha)²	$	0.79	$	0.67	$	0.82	$	0.76
Cash Cost per CuEqLb (Yauricocha)²	$	1.41	$	0.91	$	1.45	$	1.06
AISC per CuEqLb (Yauricocha)²	$	2.57	$	1.80	$	2.62	$	2.05
Cash Cost per CuEqLb (Bolivar)²	$	1.17	$	1.02	$	1.38	$	1.09
AISC per CuEqLb (Bolivar)²	$	3.27	$	1.60	$	3.09	$	1.73
Cash Cost per AgEqOz (Cusi)²	$	21.67	$	18.66	$	20.15	$	21.53
AISC per AgEqOz (Cusi)²	$	35.73	$	26.25	$	32.92	$	28.96
Financial
Revenues	$	79,449	$	41,901	$	149,073	$	97,459
Adjusted EBITDA²	$	37,689	$	12,595	$	62,958	$	28,669
Operating cash flows before movements in working capital	$	35,848	$	13,184	$	61,474	$	28,894
Adjusted net income (loss) attributable to shareholders²	$	12,681	$	1,344	$	17,064	$	2,554
Net income (loss) attributable to shareholders	$	9,084	$	154	$	12,168	$	(1,715	)
Cash and cash equivalents	$	76,102	$	40,743	$	76,102	$	40,743
Working capital	$	62,291	$	49,351	$	62,291	$	49,351

(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q2 2020 were calculated using the following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2020 were calculated using the following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/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 June 30, 2021, vs June 30, 2020:

Average Realized Metal Prices					%
(In US dollars)	Q2 2021		Q2 2020		Increase

Silver ($/oz)	$	26.80	$	16.59	62	%
Copper ($/lb)	$	4.37	$	2.40	82	%
Lead ($/lb)	$	0.97	$	0.76	28	%
Zinc ($/lb)	$	1.34	$	0.89	51	%
Gold ($/oz)	$	1,818	$	1,722	6	%

Q2 2021 Financial Highlights

Revenue from metals payable of $69.6 million in Q2 2021 increased by 25% from $55.6 million in Q2 2020. The increase in revenues was primarily 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 copper equivalent payable pound was $1.53 (Q2 2020 – $0.94), cash cost per copper equivalent payable pound was $1.41 (Q2 2020 – $0.91), and AISC per copper equivalent payable pound of $2.57 (Q2 2020 – $1.80). Unit costs increased during Q2 2021 as the 5% increase in copper equivalent payable pounds could not compensate for the higher production costs during Q2 2021. It may be noted here that costs for Q2 2020 were also suppressed due to a lack of underground development activities resulting from the COVID-19 related lack of workforce at the site. AISC per copper equivalent payable pounds for Q2 2021 was also driven higher by a sharp increase in sustaining capital expenditure during the quarter compared to Q2 2020 when the Company had to curtail or defer its capital projects for cash preservation.

Bolivar’s cost of sales per copper equivalent payable pound was $1.33 (Q2 2020 – $1.01), cash cost per copper equivalent payable pound was $1.17 (Q2 2020 – $1.02), and AISC per copper equivalent payable pound was $3.27 (Q2 2020 – $1.60) for Q2 2021. Costs increased as the mine ramped up development activities. Unit costs were also impacted by the 15% decrease in the copper equivalent payable pounds during Q2 2021 compared to Q2 2020. AISC per copper equivalent payable pound was also negatively impacted by the increase in treatment and refining costs and higher sustaining capital during the quarter.

Cusi’s cost of sales per silver equivalent payable ounce was $21.90 (Q2 2020 – $16.33), cash cost per silver equivalent payable ounce was $21.67 (Q2 2020 – $18.66), and AISC per silver equivalent payable ounce was $35.73 (Q2 2020 – $26.25) for Q2 2021.

Adjusted EBITDA⁽¹⁾ increased 173% to $37.7 million for Q2 2021 from $12.6 million in the same quarter of 2020.

Net income attributable to shareholders for Q2 2021 was $9.1 million (Q2 2020: $0.2 million) or $0.06 per share (basic and diluted) (Q2 2020: $0.00).

Adjusted net income attributable to shareholders⁽¹⁾ of $12.7 million, or $0.08 per share, for Q2 2021 compared to the adjusted net income of $1.3 million, or $0.01 per share for Q2 2020.

Cash flow generated from operations before movements in working capital of $35.8 million for Q2 2021 increased compared to $13.2 million in Q2 2020. The increase resulted from higher revenue during the quarter resulting from higher realized metal prices; and

Cash and cash equivalents of $76.1 million and working capital of $62.3 million as at June 30, 2021, compared to $71.5 million and $70.9 million, respectively, at the end of 2020. Cash and cash equivalents increased as $46.6 million of cash generated from operating activities were partially used to finance capital expenditure of $34.1 million, repayment of debt installment of $6.2 million and interest payment of $1.7 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 second quarter, 1,033 meters of surface exploration drilling was completed in the Triada copper porphyry target, reaching a total of 1,479 meters for the year. Additionally, 697 meters of drilling was completed in the Kilkasca zones, for a total of 921 meters for the year 2021.

Underground exploration drilling continued during Q2 2021 with the aim to replace and increase mineral resources that were depleted during 2020 and the first half of 2021. Approximately 4,976 meters of drilling was completed in Esperanza North, Central Mine, Cachi-cachi and the high-grade cuerpos chicos.

Mexico:

Bolivar

At Bolivar during Q2 2021, 11,377 meters were drilled in the Bolivar West, Bolivar North-West, La Montura and the Cieneguita zones encountering skarn intersections with mineralization. Additionally, infill drilling of 2,490 meters was completed in the Bolivar West zone and 2,852 meters in El Gallo Inferior.

Cusi

During Q2 2021, the Company completed 6,518 meters of infill drilling to support the development of the Santa Rosa de Lima vein and NE Trend. In addition, 2,020 meters of surface drilling was completed to support the “San Nicolas Vein” exploration and the “Gallo vein.”

Covid-19 Update

Protecting our employees and the communities in which we operate is extremely important to us. The COVID-19 situation in Peru and Mexico remains serious and is an important factor in the daily operations. The Company continues to take proactive and reactive mitigation measures adhering to strict health protocols to minimize the potential impacts from COVID-19.

The pandemic has impacted operations as we adhere to the public health restrictions. Testing and quarantining have helped identify and keep active cases from occurring in the mines, but as a result, we are operating with a reduced workforce. This results in ongoing and residual operational issues on the Company’s ability to function effectively. These issues include delayed capital expenditures, mine development and preparation of areas for mining, maintenance and replacement of equipment, staffing, specialized technical oversight, and exploration drilling, among others.

The Peruvian and Mexican governments vaccination efforts are bringing vaccines to the population in our areas of influence, starting with the most at risk in the communities. The situation is not yet under control yet and remains a significant risk for our personnel, communities, and our business. The Company has engaged proactively with the local authorities to support their efforts and to facilitate vaccination efforts nearby our operations.

Revised Guidance

The production and financial results of the Company in the first half of 2021 were impacted by COVID-19 and operational challenges. Some of the COVID-19 issues are still ongoing or are a residual effect from previous quarters on current operations. Direct impact issues have included lower workforce availability and additional costs related to management and prevention of COVID-19. Residual effect includes delays on Mine development, which has forced production to come from lower grade, higher tonnage areas in order to reach throughput targets.

Operational challenges include Permitting delays in Yauricocha, higher treatment charges due to price participation escalators from off takers, larger than normal high temperature water flows in planned mining area at Cusi, among others. Unit costs have been negatively impacted by indirect fixed costs, which must be incurred, despite lower production.

Management believes that these issues are temporary and will not affect the Company’s results in the medium to longer term time frame. Appropriate actions are being taken to return to full operational efficiency, while continuing to manage the outstanding risks related to COVID-19.

The Company has reviewed the impact of these setbacks and has lowered its production, cost, and EBITDA guidance for 2021, as per the charts below. Copper equivalent production is now expected to fall between 110 to 115 million pounds, as summarized in the table below:

Production

	Revised 2021 guidance		Original guidance
	Low	High	Low	High

Silver (000 oz)	3,700	4,000	4,298	4,628
Copper (000 lbs)	36,500	39,000	44,090	48,380
Lead (000 lbs)	30,500	33,000	31,871	34,322
Zinc (000 lbs)	76,500	84,000	101,409	109,240
Gold (oz)	10,500	11,000	10,691	11,720


Copper equivalent pounds (000’s) ⁽¹⁾	110,000	115,000	129,988	141,018
Silver equivalent ounces (000’s) ⁽¹⁾	13,500	14,500	16,126	17,494

⁽¹⁾ 2021 metal equivalent guidance was calculated using the following prices: $25.15/oz Ag, $3.12/lb Cu, $1.09/lb Zn, $0.90/lb Pb and $1,936/oz Au.

The table below summarizes the equivalent production, cash costs and AISC ranges for each of the sites:

		Equivalent Production Range ⁽¹⁾	Cash costs range	AISC⁽²⁾ range
Mine			per CuEqLb or AgEqOz	per CuEqLb or AgEqOz

Revised 2021 guidance
Yauricocha	Copper Eq Lbs (‘000)	67,000 – 69,000	$1.20 – $1.25	$2.50 – $2.60
Bolivar	Copper Eq Lbs (‘000)	31,000 – 33,000	$1.32 – $1.40	$2.60 – 2.74
Cusi	Silver Eq Oz (‘000)	1,270 – 1,400	$16.40 – $17.90	$26.00 – $28.00

Original guidance
Yauricocha	Copper Eq Lbs (‘000)	79,300 – 85,600	$0.96 – $1.03	$1.89 – $1.98
Bolivar	Copper Eq Lbs (‘000)	37,500 – 41,500	$1.00 – $1.07	$1.92 – $2.05
Cusi	Silver Eq Oz (‘000)	1,650 – 1,725	$13.37 – $14.08	$21.43 – $22.46

⁽¹⁾2021 metal equivalent guidance was calculated using the following prices: $25.15/oz Ag, $3.12/lb Cu, $1.09/lb Zn, $0.90/lb Pb and $1,936/oz Au.
⁽²⁾AISC includes treatment and refining charges, selling costs, G&A costs and sustaining capital expenditure

Based on the new production and cost guidance ranges, Management has also revised its EBITDA guidance, which is now expected to range between $130 to $140 million, as per the table below:

	Revised 2021 Guidance		Original guidance
	EBITDA Range ($’000)^{(1) (2)}		EBITDA Range ($’000)⁽¹⁾
Mine	Low	High	Low	High

Yauricocha	87,000	91,000	93,400	100,200
Bolivar	44,000	48,000	47,200	54,500
Cusi	4,000	6,000	19,100	20,000
Corporate	(5,000)	(5,000)	(4,700)	(4,700)
Total	130,000	140,000	155,000	170,000

⁽¹⁾Calculated using the following analyst consensus prices: $26.24/oz Ag, $4.13/lb Cu, $1.26/lb Zn, $0.94/lb Pb and $1,812/oz Au.
⁽²⁾ Using the spot prices $25.53/oz, $4.35/lb, $1.35/lb Zn, $1.11/lb lead and $1,811/oz Au for the second half of the year, the annual EBITDA is expected to range between $134 million to $144 million

Revised capital expenditure guidance

In April 2021, the Company announced its plan to invest in constructing an iron-ore processing plant at its Bolivar Mine to produce an iron ore concentrate. With the inclusion of this project, management are now revising capital expenditure guidance for the year from $78 million to $100 million. This additional growth capital is expected to return immediate benefits in the form of additional revenues and reduce tailings deposition and related costs.

Management will continue to monitor the COVID-19 situation and its impact on the production and metal prices and will provide any further updates as required.

	Amounts in $M
Revised 2021 Capital Expenditure guidance	Sustaining	Growth	Total

Yauricocha	26	20	46
Bolivar	12	30	42
Cusi	6	5	11
Greenfield Exploration	–	1	1
Total Capital Expenditure	44	56	100

Strategic Review Process Update

The company has strong foundations for a solid valuation in the market and return for its shareholders. Despite current challenges, the company benefits from a strong EBITDA performance at current metal prices and a solid financial position to build additional value into the future. It has a current number of exciting actionable organic growth opportunities, particularly at Bolivar and Yauricocha, and a large land package for growth in the future, both near mine and further afield.

The process is still ongoing and considering all options. We expect to be able to provide a more detailed report on the process in the coming weeks.

Conference Call and Webcast

Sierra Metals’ Senior Management will host a conference call on Tuesday, August 10, 2021, at 10:30 AM (EDT) to discuss the Company’s financial and operating results for the three months ended June 30, 2021.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:
https://event.on24.com/wcc/r/3193745/DC7EA7F3C83E666235B780E1DAD14D0A

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 full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link:
http://www.directeventreg.com/registration/event/7308198

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.

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.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

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.

Release – Endeavour Silver Reports Financial Results for the Second Quarter 2021 Earnings Conference Call at 10am PDT (1pm EDT) Today

Posted on August 10, 2021 by Admin

Endeavour Silver Reports Financial Results for the Second Quarter 2021; Earnings Conference Call at 10am PDT (1pm EDT) Today

VANCOUVER, British Columbia, Aug. 10, 2021 (GLOBE NEWSWIRE) — Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) released its financial results today for the three and six months ended June 30, 2021. The Company operates three silver-gold mines in Mexico: the Guanaceví mine in Durango state, the Bolañitos mine in Guanajuato state and the El Compas mine in Zacatecas state. All amounts reported are in United States (US) dollars.

Dan Dickson, CEO, commented, “From a financial standpoint, our Q2 performance was stronger than the respective period last year, as revenue, cash flow and earnings were all higher. However, our operating costs are clearly not where we want them to be. We are working to optimize our operating cost profile in the second half of 2021.”

“This month, we plan to suspend operations at El Compas due to exhaustion of reserves. This small asset represents less than 5% of 2021 consolidated production and will not affect our progress towards attaining or surpassing our production guidance for the year. Our remaining production platform at Guanacevi and Bolañitos is strong and sustainable with excellent brownfield exploration opportunities.”

“We are pleased to enter the second half of the year with a robust cash balance of $125 million and a clean balance sheet ahead of a potential construction decision for Terronera later this year. We will be completing the Feasibility Study during Q3 with a construction decision anticipated shortly thereafter.”

2021 Second Quarter Highlights

Metal Production: Produced 1,073,724 ounces (oz) silver, up 80% and 11,166 oz gold, up 92%, in-line with guidance for 2.0 million oz silver equivalent (AgEq), up 85%, at an 80:1 silver:gold ratio, compared to Q2, 2020 when operations were suspended due to COVID-19 for a portion of the period.
Net Revenue: Totaled $47.7 million, up 136%, from the sale of 1,120,266 oz silver and 9,810 oz gold at average realized prices of $26.82 per oz silver and $1,866 per oz gold. Management withheld metal sales in Q1, 2021 and continues to carry higher metal inventory totaling 459,659 oz silver and 1,891 oz gold of bullion inventory and 12,159 oz silver and 944 oz gold in concentrate inventory.
Operating Costs: Cash cost⁽¹⁾ $13.03 per oz payable silver, up 369% year-on-year and all-in sustaining cost (AISC)⁽¹⁾ $25.39 per oz payable silver, up 70% year-on-year, net of gold credits. Operating costs were higher than budgeted due to global supply chain constraints creating inflationary pressures, increased labor costs, a strengthening Mexican Peso and increased operating development at Guanacevi.
Cash Flow: $8.7 million in cash flow from operations before working capital changes, up 358% compared to Q2, 2020. The Company continued to hold significant finished goods, increased deposits for equipment purchases, invested in exploration activities and advanced the Terronera Feasibility Study.
Earnings: Realized earnings of $6.7 million or $0.04 per share, up sharply compared to a loss of $3.3 million in Q2, 2020 due to increased mine operating earnings, the gain on the sale of the El Cubo asset and gain on the sale of marketable securities, offset by increased exploration and evaluation activities, higher general and administrative costs and higher tax expense. Excluding the gain on sale of the El Cubo asset, the adjusted earnings are $0.8 million. At quarter end, the finished golds inventory was carried at a cost of $10.1 million compared to the fair market value of $17.3 million.

Strong Balance Sheet: Cash position $125.2 million and working capital $146.8 million. Raised $28.4 million in equity financing through an ATM facility, net of issuance costs. Only remaining term liabilities are equipment loans of $7.8 million.

Completed the Sale of El Cubo: The transaction closed on April 9, 2021 for $19.8 million in cash and share payments with up to $3 million in contingent payments payable by Guanajuato Silver (previously Vangold Mining Corp).

Subsequent to the End of the Second Quarter 2021:

Suspension of Operations at El Compas: The Company has decided to suspend mining and milling operations at El Compas in August. Mining assets and key talent will be transferred within the Company to Bolañitos and Terronera. The associated suspension costs are estimated to be $1.3 million, including $1.0 million in severance, to be incurred over the remainder of the year. Management is currently evaluating its alternatives for the assets.
Agreement to Acquire Bruner Gold Project from Canamex: strategic acquisition opportunity for an advanced stage exploration property in a favorable jurisdiction for $10 million in cash. The agreement is subject to Canamex shareholder approval in Q3 (see EDR news release dated July 19, 2021).

(1) Mine operating cash flow, cash costs and all-in sustaining costs are non-IFRS measures. Please refer to the definitions in the Company’s Management Discussion & Analysis.

Financial Overview

In Q2 2021, net revenue increased 136% to $47.7 million as a result of higher metal prices and increased production. Mine operating cash flows, operating cash flows and EBITDA increased significantly compared to Q2, 2020. For a period in Q2, 2020, the mine operations were suspended due to government decree to stop the spread of COVID-19.

The Company recognized earnings of $6.7 million compared to a loss of $3.3 million in Q2, 2020. A gain of $5.8 million was recognized on the sale of the El Cubo mine and related assets and liabilities.

Cost of sales for Q2, 2021 was $37.5 million, an increase of 109% over the cost of sales of $17.1 million for the same period of 2020. The increase in cost of sales was primarily related to the 76% increase in silver ounces sold, significantly higher royalty costs, labour costs and additional costs attributed to global supply constraints. Royalties increased 438% from $0.8 million to $4.3 million due to higher production and realized prices and the increased mining of the high grade Porvenir Cuatro extensions at the Guanaceví operation, which are subject to the significantly higher royalty rates.

The Company slightly decreased its finished goods silver and increased its finished goods gold inventory to 459,659oz and 1,891 oz, respectively at June 30, 2021 compared to 529,817 oz silver and 1,689 oz gold at March 31, 2021. The cost allocated to these finished goods was $10.1 million at June 30, 2021, compared to $8.0 million at March 31, 2021. At June 30, 2021, the finished goods inventory fair market value was $17.3 million, compared to $15.9 million at March 31, 2021.

Financial Results (Consolidated Statement of Operations Appended Below)

For the period ended June 30, 2021, the Company generated net revenue of $47.7 million an increase of 136% compared to $20.2 million. Gross sales of $48.3 million in Q2, 2021 represented a 136% increase over the $20.5 million for the same period in 2020. There was a 76% increase in silver ounces sold and a 57% increase in the realized silver price resulting in a 179% increase to silver sales. Similarly, there was an 88% increase in gold ounces sold at prices similar to the prior year resulting in an 88% increase in gold sales. During the period, the Company sold 1,120,266 oz silver and 9,810 oz gold, for realized prices of $26.82 and $1,866 per oz, respectively, compared to sales of 634,839 oz silver and 5,218 oz gold, for realized prices of $17.04 and $1,862 per oz, respectively, in the same period of 2020. For the three months ended June 30, 2021, silver and gold spot prices averaged $26.69 and $1,816, respectively.

After cost of sales of $37.5 million (Q2, 2020 – $17.1 million), mine operating earnings amounted to a $10.2 million (Q2, 2020 –$3.1 million) from mining and milling operations in Mexico.

Excluding depreciation and depletion of $6.6 million (Q2, 2020 – $3.9 million), stock-based compensation of $0.1 million (Q2, 2020- $0.1 million) and a write-down of inventory of $0.3 million (Q2, 2020 – $0.5 million), mine operating cash flow before taxes was $17.2 million in Q2, 2021 (Q2, 2020 – $7.6 million). Operating earnings were $0.8 million (Q2, 2020 – loss of $4.6 million) after exploration and evaluation expenditures of $5.0 million (Q2, 2020 – $1.7 million), general and administrative expense of $4.3 million (Q2, 2020 – $3.1 million) and care and maintenance costs of $0.1 million (Q2, 2020 – $2.9 million).

Net earnings amounted to $6.7 million ($0.04 per share) compared to a net loss of $3.3 million (loss of $0.02 per share) in Q2, 2020.

Current income tax expense increased to $2.2 million (Q2 2020 – $0.2 million) due to increased profitability impacting special mining duty, while deferred income tax expense of $1.1 million was recognized due to the estimated use of loss carry forwards to reduce taxable income at Guanacevi (Q2 2020 – $0.5 million deferred income tax recovery).

Direct operating costs per tonne in Q2, 2021 increased 18%, to $119.94 compared with Q2, 2020 due to higher operating costs at all operations. The operations have seen a strengthening of the Mexican Peso, increased labour costs, increased third party ore purchased and increased operating development at Guanaceví compared to prior year and budgeted. Including royalties and special mining duty, direct costs per tonne increased 29% to $141.61. Royalties increase 1,781% to $4.3 million as increased production from the El Curso and El Porvenir concessions at Guanaceví with higher prices substantially increased the royalty expense. The improved profitability increased special mining duty expense to $0.9 million for Q2, 2021, which was negligible in Q2, 2020.

Consolidated cash costs per ounce, net of by-product credits (a non-IFRS measure and a standard of the Silver Institute) increased to $13.03 due to the increased direct costs per tonne. All-in sustaining costs (also a non-IFRS measure) increased to $25.39 per ounce in Q2, 2021 as a result of higher corporate general and administrative costs, increased mine site expensed exploration and increased capital expenditures at Guanaceví to accelerate mine development within the El Curso ore body. In Q2, 2021 corporate general and administrative included a $1.6 million mark to market expense of deferred share units expense whereas the mark to market expense was $1.1 million in Q2, 2020.

The Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

Conference Call

A conference call to discuss these results will be held today, Tuesday, August 10 at 10am PDT (1pm EDT). To participate in the conference call, please dial the numbers below. No pass-code is necessary.

Toll-free in Canada and the US: 1-800-319-4610
Local Vancouver: 604-638-5340
Outside of Canada and the US: +-604-638-5340

A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010 outside of Canada and the US. The required pass-code is 7318 #. The replay will also be available on the Company’s website at www.edrsilver.com.

About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information:
Galina Meleger, Vice President, Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com

Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding Endeavour’s anticipated performance in 2021 including changes in mining operations and production levels, the timing and results of various activities and the impact of the COVID 19 pandemic on operations. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the ultimate impact of the COVID 19 pandemic on operations and results, changes in production and costs guidance, national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices, operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

ENDEAVOUR SILVER CORP.
COMPARATIVE HIGHLIGHTS

Three Months Ended June 30					Q2 2021 Highlights	Six Months Ended June 30
2021	2020		% Change		Q2 2021 Highlights	2021		2020		% Change
Production
1,073,724	596,545		80	%	Silver ounces produced	2,121,824		1,454,204		46	%
11,166	5,817		92	%	Gold ounces produced	22,275		14,293		56	%
1,062,267	590,618		80	%	Payable silver ounces produced	2,098,977		1,440,409		46	%
10,955	5,717		92	%	Payable gold ounces produced	21,849		14,037		56	%
1,967,004	1,061,905		85	%	Silver equivalent ounces produced	3,903,824		2,597,644		50	%
13.03	2.78		369	%	Cash costs per silver ounce	10.48		5.77		82	%
19.55	10.33		89	%	Total production costs per ounce	17.51		13.88		26	%
25.39	14.91		70	%	All-in sustaining costs per ounce	22.69		16.96		34	%
242,018	114,120		112	%	Processed tonnes	451,471		313,447		44	%
119.94	102.02		18	%	Direct operating costs per tonne	116.43		98.76		18	%
141.61	109.74		29	%	Direct costs per tonne	134.48		104.59		29	%
18.52	10.16		82	%	Silver co-product cash costs	16.89		10.99		54	%
1,288	1,111		16	%	Gold co-product cash costs	1,116		1,175		(5
Financial
47.7	20.2		136	%	Revenue ($ millions)	82.2		42.1		95	%
1,120,266	634,839		76	%	Silver ounces sold	1,743,645		1,300,339		34	%
9,810	5,218		88	%	Gold ounces sold	20,473		12,672		62	%
26.82	17.04		57	%	Realized silver price per ounce	26.95		16.16		67	%
1,866	1,862		0	%	Realized gold price per ounce	1,781		1,727		3	%
6.7	(3.3	)	302	%	Net earnings (loss) ($ millions)	18.9		(19.2	)	198	%
0.8	(3.3	)	126	%	Adjusted net earnings (loss) ($ millions)	(3.7	)	(19.2	)	81	%
10.2	3.1		228	%	Mine operating earnings (loss) ($ millions)	15.9		0.2		6800	%
17.2	7.6		125	%	Mine operating cash flow ($ millions)	30.5		11.9		156	%
8.7	1.9		358	%	Operating cash flow before working capital changes	13.9		(3.1	)	551	%
15.9	1.2		1214	%	Earnings before ITDA ($ millions)	39.8		(5.5	)	823	%
146.8	44.6		229	%	Working capital ($ millions)	146.8		44.6		229	%
Shareholders
0.04	(0.02	)	300	%	Earnings (loss) per share – basic	0.12		(0.13	)	192	%
0.01	(0.02	)	123	%	Adjusted earnings (loss) per share – basic	(0.02	)	(0.13	)	83	%
0.05	0.01		302	%	Operating cash flow before working capital changes per share	0.08		(0.02	)	499	%
168,383,755	147,862,393		14	%	Weighted average shares outstanding	164,051,368		144,836,300		13	%

The above highlights are key measures used by management, however they should not be the sole measures used in determining the performance of the Company’s operations. The related definitions and reconciliations are contained in the Management Discussion and Analysis.

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
(expressed in thousands in U.S. dollars)

	Three months ended						Six months ended
	June 30,			June 30,			June 30,			June 30,
	2021			2020			2021			2020
Operating activities
Net earnings (loss) for the period	$	6,656		$	(3,289	)	$	18,905		$	(19,215	)
Items not affecting cash:
Share-based compensation		1,028			848			2,193			1,593
Depreciation, depletion and amortization		6,723			4,213			14,347			10,481
Impairment reversal of non-current assets		–			–			(16,791	)		–
Deferred income tax expense (recovery)		1,116			(514	)		4,243			1,350
Unrealized foreign exchange loss (gain)		(143	)		(140	)		(53	)		514
Finance costs		216			337			507			648
Write down of inventory to net realizable value		272			486			272			1,528
Loss (gain) on asset disposal		(5,841	)		57			(5,807	)		135
Gain on other investments		(1,366	)		(107	)		(3,912	)		(114	)
Net changes in non-cash working capital		806			(2,800	)		(8,360	)		(178	)
Cash from (used in) operating activities		9,467			(909	)		5,544			(3,258	)
Investing activities
Proceeds on disposal of property, plant and equipment		6,985			73			7,541			100
Mineral property, plant and equipment expenditures		(8,164	)		(4,872	)		(15,434	)		(10,384	)
Purchase of marketable securities		–			–			(832	)		–
Proceeds from disposal of marketable securities		4,905			–			9,288			–
Redemption of (investment in) non-current deposits		19			–			(1	)		–
Cash from (used in) investing activities		3,745			(4,799	)		562			(10,284	)
Financing activities
Repayment of loans payable		(918	)		(554	)		(1,887	)		(1,326	)
Repayment of lease liabilities		(43	)		(49	)		(85	)		(92	)
Interest paid		(174	)		(243	)		(367	)		(461	)
Public equity offerings		29,034			22,703			59,134			24,188
Exercise of options		785			8			4,583			20
Share issuance costs		(664	)		(963	)		(1,266	)		(1,037	)
Performance share unit redemption		(2,174	)		–			(2,174	)		–
Cash from (used in) financing activities		25,846			20,902			57,938			21,292

Effect of exchange rate change on cash and cash equivalents		144			314			64			(620	)

Increase (decrease) in cash and cash equivalents		39,058			15,194			64,044			7,750
Cash and cash equivalents, beginning of the period		85,989			14,990			61,083			23,368
Cash and cash equivalents, end of the period	$	125,191		$	30,498		$	125,191		$	30,498

This statement should be read in conjunction with the condensed consolidated interim financial statements for the period ended June 30, 2021 and the related notes contained therein.

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(expressed in thousands in U.S. dollars, except for share and per share amounts)

	Three months ended					Six months ended
	June 30,		June 30,			June 30,			June 30,
	2021		2020			2021			2020
Revenue	$	47,775	$	20,201		$	82,241		$	42,128
Cost of sales:
Direct production costs		26,223		11,722			44,951			28,522
Royalties		4,340		834			6,800			1,691
Share-based payments		111		92			229			183
Depreciation, depletion and amortization		6,624		3,951			14,120			9,974
Write down of inventory to net realizable value		272		486			272			1,528
		37,570		17,085			66,372			41,898
Mine operating earnings		10,205		3,116			15,869			230
Expenses:
Exploration and evaluation		5,025		1,665			9,155			4,047
General and administrative		4,293		3,137			7,816			5,142
Care and maintenance costs		55		2,911			576			4,256
Impairment reversal of non-current assets		–		–			(16,791	)		–
		9,373		7,713			756			13,445
Operating earnings (loss)		832		(4,597	)		15,113			(13,215	)
Finance costs		216		356			507			666
Other income (expense):
Foreign exchange		659		740			(35	)		(4,177	)
Gain on asset disposals		5,841		–			5,841			–
Investment and other		1,802		605			4,553			654
		8,302		1,345			10,359			(3,523	)
Earnings (loss) before income taxes		8,918		(3,608	)		24,965			(17,404	)
Income tax expense (recovery):
Current income tax expense		1,146		195			1,817			461
Deferred income tax expense (recovery)		1,116		(514	)		4,243			1,350
		2,262		(319	)		6,060			1,811

Net earnings (loss) and comprehensive earnings (loss) for the period		6,656		(3,289	)		18,905			(19,215	)

Basic earnings (loss) per share based on net earnings (loss)	$	0.04	$	(0.02	)	$	0.12		$	(0.13	)
Diluted earnings (loss) per share based on net earnings (loss)	$	0.04	$	(0.02	)	$	0.11		$	(0.13	)

Basic weighted average number of shares outstanding		168,383,755		147,862,393			164,051,368			144,836,300
Diluted weighted average number of shares outstanding		172,195,942		147,862,393			167,743,113			144,836,300

This statement should be read in conjunction with the condensed consolidated interim financial statements for the period ended June 30, 2021 and the related notes contained therein.

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
(expressed in thousands in U.S. dollars, except for share and per share amounts)

	June 30,			December 31,
	2021			2020
ASSETS
Current assets
Cash and cash equivalents	$	125,191		$	61,083
Other investments		10,024			4,767
Accounts and other receivable		16,167			20,144
Income tax receivable		61			52
Inventories		23,929			16,640
Prepaid expenses		7,281			2,284
Total current assets		182,653			104,970
Deposits		592			591
Deferred financing costs		–			294
Income tax recoverable		3,570			–
IVA receivable		2,699			2,676
Deferred income tax asset		8,510			12,753
Intangible assets		248			492
Right-of-use leased assets		757			861
Mineral properties, plant and equipment		87,845			87,955
Total assets	$	286,874		$	210,592
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	29,687		$	27,764
Income taxes payable		2,681			3,038
Loans payable		3,251			3,578
Lease liabilities		201			173
Total current liabilities		35,820			34,553
Loans payable		4,534			6,094
Lease liabilities		923			921
Provision for reclamation and rehabilitation		4,383			8,876
Deferred income tax liability		1,080			1,077
Total liabilities		46,740			51,521
Shareholders’ equity
Common shares, unlimited shares authorized, no par value, issued
and outstanding 170,300,394 shares (Dec 31, 2020 – 157,924,708 shares)		584,378			517,711
Contributed surplus		5,153			9,662
Retained earnings (deficit)		(349,397	)		(368,302	)
Total shareholders’ equity		240,134			159,071
Total liabilities and shareholders’ equity	$	286,874		$	210,592

This statement should be read in conjunction with the condensed consolidated interim financial statements for the period ended June 30, 2021 and the related notes contained therein.

Source: Endeavour Silver Corporation

QuickChek – August 10, 2021

Posted on August 10, 2021 by Admin

Endeavour Silver Reports Financial Results for the Second Quarter 2021; Earnings Conference Call at 10am PDT (1pm EDT) Today

Endeavour Silver reported its financial results today for the three and six months ended June 30, 2021

Research, News & Market Data on Endeavour Silver

Watch recent presentation from Endeavour Silver

Sierra Metals Reports Consolidated Financial Results for the Second Quarter of 2021 and Provides Revised Guidance for 2021

Sierra Metals reported revenue of $79.4 million and an adjusted EBITDA of $37.7 million on the throughput of 787,534 tonnes and metal production of 24.8 million copper equivalent pounds for the three-month period ended June 30, 2021

Research, News & Market Data on Sierra Metals

Watch recent presentation from Sierra Metals

CoreCivic Reports Second Quarter 2021 Financial Results

CoreCivic announced its financial results for the second quarter of 2021

See today’s research report from Joe Gomes, Senior Research Analyst at Noble Capital Markets

Research, News & Market Data on CoreCivic

Watch recent presentation from CoreCivic

Flotek Announces Second Quarter 2021 Results

Flotek Industries announced second quarter results for the three months ended June 30, 2021

See today’s research report from Michael Heim, Senior Research Analyst at Noble Capital Markets

Research, News & Market Data on Flotek

Watch recent presentation from Flotek

Comstock Announces Second Quarter 2021 Results and Business Update

Comstock Mining announced its unaudited financial results for the periods ended June 30, 2021

Research, News & Market Data on Comstock Mining

Watch recent presentation from Comstock Mining

Lineage to Present at the H.C. Wainwright Ophthalmology Conference on August 17, 2021

Lineage Cell Therapeutics announced that Lineage CEO Brian M. Culley will be participating in and presenting at the H.C. Wainwright & Co. Inc. Virtual Ophthalmology Conference

Research, News & Market Data on Lineage

Watch recent presentation from Lineage

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for High-Power Amplifiers

Comtech Telecommunications announced it was awarded a $1.0 million contract for high-power amplifiers from a major domestic prime contractor

Research, News & Market Data on Comtech

Watch recent presentation from Comtech

Study of Non-Invasive Vagus Nerve Stimulation (nVNS) Shows Improvement in PTSD Symptoms and Decreased Inflammatory Response to Stress

electroCore announced the publication of a peer reviewed manuscript

Research, News & Market Data on electroCore

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Release – Lineage to Present at the H.C. Wainwright Ophthalmology Conference on August 17 2021

Posted on August 10, 2021 by Admin

Lineage to Present at the H.C. Wainwright Ophthalmology Conference on August 17, 2021

CARLSBAD, Calif.–(BUSINESS WIRE)–Aug. 10, 2021–

Lineage Cell Therapeutics, Inc.
(NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, today announced that Brian M. Culley, the Company’s Chief Executive Officer, will be participating in and presenting at the

H.C. Wainwright & Co. Inc.
Virtual Ophthalmology Conference
. Mr. Culley’s presentation will be available on-demand starting on
August 17^th, 2021 at
7am ET /
4am PT. Mr. Culley will also participate in an industry panel, Addressing Unmet Medical Needs in Macular Degeneration – Dry AMD and Stargardt Disease, hosted by Yi Chen, Ph.D., CFA, Managing Director,
Senior Healthcare Analyst,
H.C. Wainwright & Co., Inc., on
August 17^th, 2021 at
11am ET /
8am PT.

Interested parties can register to view both the on-demand and live industry panel presentations on the Events and Presentations section of Lineage’s website. Additional videos are available on the Media page of the Lineage website.

About Lineage Cell Therapeutics, Inc.

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include three allogeneic (“off-the-shelf”) product candidates: (i) OpRegen^®, a retinal pigment epithelium transplant therapy in Phase 1/2a development for the treatment of dry age-related macular degeneration, a leading cause of blindness in the developed world; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of subacute spinal cord injuries; and (iii) VAC2, an allogeneic dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer. For more information, please visit www.lineagecell.com or follow the Company on Twitter @LineageCell.

Lineage Cell Therapeutics, Inc. IR
Ioana C. Hone
(ir@lineagecell.com)
(442) 287-8963

Solebury Trout IR
Gitanjali Jain Ogawa
(Gogawa@soleburytrout.com)
(646) 378-2949

Russo Partners – Media Relations
Nic Johnson or David Schull
Nic.johnson@russopartnersllc.com
David.schull@russopartnersllc.com
(212) 845-4242

Source:
Lineage Cell Therapeutics, Inc.

Release – Study of Non-Invasive Vagus Nerve Stimulation Shows Improvement in PTSD Symptoms and Decreased Inflammatory Response to Stress

Posted on August 10, 2021 by Admin

Study of Non-Invasive Vagus Nerve Stimulation (nVNS) Shows Improvement in PTSD Symptoms and Decreased Inflammatory Response to Stress

ROCKAWAY, NJ,
Aug. 10, 2021 (GLOBE NEWSWIRE) —
electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today announced the publication of a peer reviewed manuscript, “Transcutaneous Cervical Vagal Nerve Stimulation (tcVNS/nVNS) in Patients with Posttraumatic Stress Disorder (PTSD): A Pilot Study of Effects on PTSD Symptoms and Interleukin-6 Response to Stress” in the Journal of Affective Disorders Reports. The manuscript reports the results of a randomized, double-blind, sham-controlled study conducted at
Georgia Institute of Technology and
Emory University that resulted from work funded in part by the
Defense Advanced Research Projects Agency (DARPA) Biological Technologies Office (BTO) Targeted Neuroplasticity Training (TNT) program through the
Naval Information Warfare Center.

PTSD is a psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event such as a natural disaster, serious accident, terrorist act, war, combat, or who have been threatened with death, sexual violence or serious injury. Eight million American adults experience PTSD annually, and with limited FDA approved therapies, there is a large unmet medical need. The disorder is more prominent in women, with about 10% of women and 4% of men developing PTSD at some point in their lives.

The study enrolled twenty patients suffering from PTSD. Study participants were exposed to personalized traumatic scripts followed by an immediate stimulation by an active or sham non-invasive vagus nerve stimulator (nVNS). The results show that three-months of treatment with nVNS lead to a 31% reduction (p<0.013) in PTSD symptoms compared to sham on the PTSD Checklist (PCL), as well as a significant decrease in hyperarousal symptoms (p=0.008) and a decrease in overall and somatic (gastric) anxiety. At the conclusion of the study, patients who continued to use nVNS for a further 3 month open-label period showed a significant improvement in their overall symptoms reported by the Clinical Global Index (p=0.003). Furthermore, nVNS effectively blocked the increase in the levels of the inflammatory cytokine IL-6 that is overexpressed in patients with PTSD who are exposed to a traumatic script (p<0.05).

Dr. Douglas Bremner, Professor of Psychiatry and Radiology at
Emory University School of Medicine and the primary investigator for the study commented, “PTSD is a devastating condition that can strike at almost any time after physical or mental trauma. Current treatments do not address the breadth of what a person with PTSD experiences. Dr. Omer Inan, the Linda J. and Mark C. Smith Chair in Bioscience and Bioengineering, Associate Professor of Electrical and Computer Engineering at
Georgia Institute of Technology, and co-investigator on the study added, “the results from this study, while still preliminary, suggest a role for nVNS as a practical and safe novel treatment for PTSD.”

“We congratulate and thank Dr. Bremner, Dr. Inan, and their clinical and research teams at
Georgia Tech,
Emory University and the
University of Utah, as well as the patients and families that participated in this study,” commented Eric Liebler, Senior Vice President of Neurology at electroCore. “PTSD strikes both our veterans who serve at home and across the globe, as well friends and family members who can suffer from the repercussions of a trauma at any time. We are pleased to be able to support the team’s on-going efforts to further define the possible use of nVNS in people with PTSD.”

The full publication is available at: https://www.sciencedirect.com/science/article/pii/S2666915321001165?via%3Dihub

About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine company dedicated to improving patient outcomes through its non-invasive vagus nerve stimulation therapy platform, initially focused on the treatment of multiple conditions in neurology. The company’s current indications are the preventive treatment of cluster headache and migraine and the acute treatment of migraine and episodic cluster headache.
For more information, visit www.electrocore.com.

About gammaCore^TM
gammaCore^TM (nVNS) is the first non-invasive, hand-held medical therapy applied at the neck as an adjunctive therapy to treat migraine and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore can be self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patient’s neck over the vagus nerve, gammaCore stimulates the nerve’s afferent fibers, which may lead to a reduction of pain in patients.

gammaCore (nVNS) is FDA cleared in
the United States for adjunctive use for the preventive treatment of cluster headache in adult patients, the acute treatment of pain associated with episodic cluster headache in adult patients, and the acute and preventive treatment of migraine in adolescent (ages 12 and older) and adult patients. gammaCore is CE-marked in the
European Union for the acute and/or prophylactic treatment of primary headache (Migraine, Cluster Headache, Trigeminal Autonomic Cephalalgias and Hemicrania Continua) and Medication Overuse Headache in adults.

gammaCore is contraindicated for patients if they:

Have an active implantable medical device, such as a pacemaker, hearing aid implant, or any implanted electronic device
Have a metallic device, such as a stent, bone plate, or bone screw, implanted at or near the neck
Are using another device at the same time (e.g., TENS Unit, muscle stimulator) or any portable electronic device (e.g., mobile phone)

Safety and efficacy of gammaCore have not been evaluated in the following patients:

Patients diagnosed with narrowing of the arteries (carotid atherosclerosis)
Patients who have had surgery to cut the vagus nerve in the neck (cervical vagotomy)
Pediatric patients (less than 12 years)
Pregnant women
Patients with clinically significant hypertension, hypotension, bradycardia, or tachycardia

Please refer to the gammaCore Instructions for Use for all of the important warnings and precautions before using or prescribing this product.

Forward-Looking Statements

This press release and other written and oral statements made by representatives of electroCore may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore’s business prospects and clinical and product development plans; its pipeline or potential markets for its technologies; the timing, outcome and impact of regulatory, clinical and commercial developments; the availability and impact of payer coverage, the potential of nVNS generally and gammaCore in particular to treat PTSD symptoms and related disorders and other statements that are not historical in nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “believes,” “intends,” other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, the potential impact and effects of COVID-19 on the business of electroCore, electroCore’s results of operations and financial performance, and any measures electroCore has and may take in response to COVID-19 and any expectations electroCore may have with respect thereto, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the
SEC available at www.sec.gov.

Investors:
Rich CockrellCG Capital
404-736-3838
ecor@cg.capital

or

Media Contact:
Jackie Dorsky
electroCore
908-313-6331
Jackie.dorsky@electrocore.com

Release – Comtech Telecommunications Corp. Awarded $1.0 Million Contract for High-Power Amplifiers

Posted on August 10, 2021 by Admin

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for High-Power Amplifiers

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 10, 2021–
August 10, 2021—
Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that during its fourth quarter of fiscal 2021, it was awarded a
$1.0 million contract for high-power amplifiers from a major domestic prime contractor.

These amplifiers, which utilize the latest in solid-state GaN transistor technology, are key transmit elements in a data communication system. They add to an installed base of
Comtech solid-state high-power RF amplifiers previously delivered to this major domestic prime contractor.

“This contract demonstrates our continued leadership position in providing high-power communications technology and the ongoing demand for our solid-state high-power amplifiers utilized by major OEMs in both domestic and international markets,” said Fred Kornberg, Chairman of the Board and Chief Executive Officer of
Comtech Telecommunications Corp.

The contract was awarded to
Comtech PST Corp. (www.comtechpst.com) which is a leading independent supplier of high-power, high performance RF microwave amplifiers and control components for use in a broad spectrum of applications including defense, medical, satellite communications systems and instrumentation.

Comtech Telecommunications Corp. is a leading provider of next-generation 911 emergency systems and critical wireless communication technologies to commercial and government customers around the world. Headquartered in
Melville, New York and with a passion for customer success,
Comtech designs, produces and markets advanced and secure wireless solutions to customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source:
Comtech Telecommunications Corp.

Powerful Technologies Borrowed from Nature

Posted on August 10, 2021 by Admin



	Image Credit: Jessica Na (Flickr)

From CRISPR to Glowing Proteins to Optogenetics – Scientists’ Most Powerful Technologies Have Been Borrowed from Nature

Watson and Crick, Schrödinger and Einstein all made theoretical breakthroughs that have changed the world’s understanding of science.

Today big, game-changing ideas are less common. New and improved techniques are the driving force behind modern scientific research and discoveries. They allow scientists – including chemists like me – to do our experiments faster than before, and they shine light on areas of science hidden to our predecessors.

Three cutting-edge techniques – the gene-editing tool CRISPR, fluorescent proteins and optogenetics – were all inspired by nature. Biomolecular tools that have worked for bacteria, jellyfish and algae for millions of years are now being used in medicine and biological research. Directly or indirectly, they will change the lives of everyday people.

Bacterial Defense Systems
as Genetic Editors

Bacteria and viruses battle themselves and one another. They are at constant biochemical war, competing for scarce resources.

One of the weapons that bacteria have in their arsenal is the CRISPR-Cas system. It is a genetic library consisting of short repeats of DNA gathered over time from hostile viruses, paired with a protein called Cas that can cut viral DNA as if with scissors. In the natural world, when bacteria are attacked by viruses whose DNA has been stored in the CRISPR archive, the CRISPR-Cas system hunts down, cuts and destroys the viral DNA.

Scientists have repurposed these weapons for their own use, with groundbreaking effect. Jennifer Doudna, a biochemist based at the University of California, Berkeley, and French microbiologist Emmanuelle Charpentier shared the 2020 Nobel Prize in chemistry for the development of CRISPR-Cas as a gene-editing technique.

The Human Genome Project has provided a nearly complete genetic sequence for humans and given scientists a template to sequence all other organisms. However, before CRISPR-Cas, we researchers didn’t have the tools to easily access and edit the genes in living organisms. Today, thanks to CRISPR-Cas, lab work that used to take months and years and cost hundreds of thousands of dollars can be done in less than a week for just a few hundred dollars.

There are more than 10,000 genetic disorders caused by mutations that occur on only one gene, the so-called single-gene disorders. They affect millions of people. Sickle cell anemia, cystic fibrosis and Huntington’s disease are among the most well-known of these disorders. These are all obvious targets for CRISPR therapy because it is much simpler to fix or replace just one defective gene rather than needing to correct errors on multiple genes.

For example, in preclinical studies, researchers injected an encapsuled CRISPR system into patients born with a rare genetic disease, transthyretin amyloidosis, that causes fatal nerve and heart conditions. Preliminary results from the study demonstrated that CRISPR-Cas can be injected directly into patients in such a way that it can find and edit the faulty genes associated with a disease. In the six patients included in this landmark work, the encapsuled CRISPR-Cas minimissiles reached their target genes and did their job, causing a significant drop in a misfolded protein associated with the disease.

Jellyfish Light up the Microscopic
World

The crystal jellyfish, Aequorea Victoria, which drifts aimlessly in the northern Pacific, has no brain, no anus and no poisonous stingers. It is an unlikely candidate to ignite a revolution in biotechnology. Yet on the periphery of its umbrella, it has about 300 photo-organs that give off pinpricks of green light that have changed the way science is conducted.

This bioluminescent light in the jellyfish stems from a luminescent protein called aequorin and a fluorescent molecule called green fluorescent protein, or GFP. In modern biotechnology GFP acts as a molecular lightbulb that can be fused to other proteins, allowing researchers to track them and to see when and where proteins are being made in the cells of living organisms. Fluorescent protein technology is used in thousands of labs every day and has resulted in the awarding of two Nobel Prizes, one in 2008 and the other in 2014. And fluorescent proteins have now been found in many more species.

This technology proved its utility once again when researchers created genetically modified COVID-19 viruses that express GFP. The resulting fluorescence makes it possible to follow the path of the viruses as they enter the respiratory system and bind to surface cells with hairlike structures.

Algae Let us Play the Brain
Neuron by Neuron

When algae, which depend on sunlight for growth, are placed in a large aquarium in a darkened room, they swim around aimlessly. But if a lamp is turned on, the algae will swim toward the light. The single-celled flagellates – so named for the whiplike appendages they use to move around – don’t have eyes. Instead, they have a structure called an eyespot that distinguishes between light and darkness. The eyespot is studded with light-sensitive proteins called channelrhodopsins.

In the early 2000s, researchers discovered that when they genetically inserted these channelrhodopsins into the nerve cells of any organism, illuminating the channelrhodopsins with blue light caused neurons to fire. This technique, known as optogenetics, involves inserting the algae gene that makes channelrhodopsin into neurons. When a pinpoint beam of blue light is shined on these neurons, the channelrhodopsins open up, calcium ions flood through the neurons and the neurons fire.

Using this tool, scientists can stimulate groups of neurons selectively and repeatedly, thereby gaining a more precise understanding of which neurons to target to treat specific disorders and diseases. Optogenetics might hold the key to treating debilitating and deadly brain diseases, such as Alzheimer’s and Parkinson’s.

But optogenetics isn’t only useful for understanding the brain. Researchers have used optogenetic techniques to partially reverse blindness and have found promising results in clinical trials using optogenetics on patients with retinitis pigmentosa, a group of genetic disorders that break down retinal cells. And in mouse studies, the technique has been used to manipulate heartbeat and regulate bowel movements of constipated mice.

What Else Lies Within Nature’s
Toolbox?

What undiscovered techniques does nature still hold for us?

According to a 2018 study, people represent just 0.01% of all living things by mass but have caused the loss of 83% of all wild mammals and half of all plants in our brief time on Earth. By annihilating nature, humankind might be losing out on new, powerful and life-altering techniques without having even imagined them.

This article was republished with permission from The
Conversation, a news site dedicated to sharing ideas from academic
experts. It represents the research-based findings and
opinions of Marc
Zimmer Professor of Chemistry, Connecticut College.

Suggested Reading:

Cells That Can Be Produced from Stem Cells

Advancing Research Into Alzheimer’s and Stem Cells

Preventing the Immune System from rejecting Gene Therapy

Stem Cell-Derived Retinal Pigment Epithelium Cells – Vision for the Future

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Pyxis Tankers Inc. (PXS) – Quarter Below Expectations and Still Waiting for Market Turn

Posted on August 10, 2021 by Admin

Tuesday, August 10, 2021

Pyxis Tankers Inc. (PXS)
Quarter Below Expectations and Still Waiting for Market Turn

Pyxis Tankers Inc is a United States-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of double hull product tankers employed under a mix of short- and medium-term time charters and spot charters. The fleet owned by the company includes Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta, Northsea Alpha, and Northsea Beta. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel, fuel oil, and other liquid bulk items, such as vegetable oils and organic chemicals.

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

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

Adjusted EBITDA of $0.4 million was below expectations. Lower TCE revenue of $4.1 million and flat rates of $10.9k/day and higher opex of $6.2k/day drove the negative variance. Versus our estimate, TCE revenue of $4.14 million was $0.38 million lower, opex of $2.83 million was $0.26 million higher, but G&A expense of $0.58 million was slightly lower than expected by $0.07 million. TCE rates were $379 off our estimate and operating days were 20 days below.

Adjusting 2021 EBITDA estimate. To reflect weaker 2Q2021 operating results and time charters at lower TCE rates, our new 2021 EBITDA estimate drops to $3.2 million (down from $5.4 million). Forward cover remains low as of August 4th with only 47% of 3Q2021 available MR days booked at at an average TCE rate of ~$10.9k/day. Forward cover visibility into 4Q2021 is limited to the Theta …

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.

Information Services (III) – Excellent 2Q21. Will the Momentum Continue?

Posted on August 10, 2021 by Admin

Tuesday, August 10, 2021

Information Services (III)
Excellent 2Q21. Will the Momentum Continue?

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

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

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

Strong 2Q21 Results. Revenue of $70.6 million rose 23.0% y-o-y and exceeded consensus of $65.5 million and our estimate of $65 million. ISG reported net income of $4.1 million, or $0.08 per share, up from $612,000, and $0.01, respectively, last year. Adjusted EPS was $0.12 and adjusted EBITDA totaled $9.7 million. We had forecast EPS of $0.04, adjusted EPS of $0.09, and adjusted EBITDA of $8.0 million.

All Segments Contributing. ISG saw solid contribution from each of its geographic segments as clients doubled down on their digital investments. Reported revenue in the Americas rose 28%, Europe was up 13% and 4% on a constant currency basis, while Asia Pacific revenues rose 36% on a reported basis and 18% on a constant currency basis …

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

Flotek Industries (FTK) – Second Quarter Results – Initial Thoughts

Posted on August 10, 2021 by Admin

Tuesday, August 10, 2021

Flotek Industries (FTK)
Second Quarter Results – Initial Thoughts

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that helps customers across industrial, commercial and consumer markets improve their Environmental, Social and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit Flotek’s web site at www.flotekind.com.

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

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

Revenues were disappointing. Flotek reported revenues of $9.2 million below 2021-1Q revenues of $11.8 million and our forecast of $12.6 million due to the loss of two significant customers. The loss offset a 26% sequential increase in energy chemical tech customers and 58% increase in service customers.

Management offset lower revenues with lower costs. Operating costs (excl. DDA) were $12.1 million down from 2021-1Q costs of $13.8 million and our estimate of $14.8 million. SG&A costs were $2.9 million versus $4.4 million in the previous quarter, which was also our estimate. By lowering costs, the company was able to report adjusted EBITDA of ($6.7) million roughly in line with previous quarters …

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

CoreCivic Inc. (CXW) – Solid Second Quarter Results

Posted on August 10, 2021 by Admin

Tuesday, August 10, 2021

CoreCivic, Inc. (CXW)
Solid Second Quarter Results

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.

2Q21 Results. CoreCivic reported solid second quarter results after the market closed yesterday. Revenue came in at $464.6 million, just below the $472.6 million in the same period last year, which was before populations were significantly reduced due to COVID. The Company reported net income of $15.6 million, or $0.13 per share, compared to $22.2 million, or $0.18 per share last year. Adjusted EPS was $0.25 compared to $0.33 last year. On a proforma basis to reflect the adoption of a C-corp structure EPS was $0.25 versus $0.23 last year. We had projected revenue of $445 million and EPS of $0.07.

Noise, Again. There was significant noise in the quarter. For example, special items included a charge of $52.2 million in expenses associated with debt repayments and refinancing transactions, $2.9 million in asset impairments, $2.6 million in shareholder litigation expense, $0.8 million in expenses associated with COVID-19, and a $38.8 million gain on the sale of non-core real estate assets, net …

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

Flotek Announces Second Quarter 2021 Results

CoreCivic Reports Second Quarter 2021 Financial Results

Sierra Metals Reports Consolidated Financial Results for the Second Quarter of 2021 and Provides Revised Guidance for 2021

Endeavour Silver Reports Financial Results for the Second Quarter 2021; Earnings Conference Call at 10am PDT (1pm EDT) Today

Endeavour Silver Reports Financial Results for the Second Quarter 2021; Earnings Conference Call at 10am PDT (1pm EDT) Today

Sierra Metals Reports Consolidated Financial Results for the Second Quarter of 2021 and Provides Revised Guidance for 2021

CoreCivic Reports Second Quarter 2021 Financial Results

Flotek Announces Second Quarter 2021 Results

Comstock Announces Second Quarter 2021 Results and Business Update

Lineage to Present at the H.C. Wainwright Ophthalmology Conference on August 17, 2021

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for High-Power Amplifiers

Study of Non-Invasive Vagus Nerve Stimulation (nVNS) Shows Improvement in PTSD Symptoms and Decreased Inflammatory Response to Stress

Lineage to Present at the H.C. Wainwright Ophthalmology Conference on August 17, 2021

Study of Non-Invasive Vagus Nerve Stimulation (nVNS) Shows Improvement in PTSD Symptoms and Decreased Inflammatory Response to Stress

Comtech Telecommunications Corp. Awarded $1.0 Million Contract for High-Power Amplifiers

From CRISPR to Glowing Proteins to Optogenetics – Scientists’ Most Powerful Technologies Have Been Borrowed from Nature

Cells That Can Be Produced from Stem Cells

Advancing Research Into Alzheimer’s and Stem Cells

Preventing the Immune System from rejecting Gene Therapy

Stem Cell-Derived Retinal Pigment Epithelium Cells – Vision for the Future

Pyxis Tankers Inc. (PXS)Quarter Below Expectations and Still Waiting for Market Turn

Information Services (III)Excellent 2Q21. Will the Momentum Continue?

Flotek Industries (FTK)Second Quarter Results – Initial Thoughts

CoreCivic, Inc. (CXW)Solid Second Quarter Results

Pyxis Tankers Inc. (PXS)
Quarter Below Expectations and Still Waiting for Market Turn

Information Services (III)
Excellent 2Q21. Will the Momentum Continue?

Flotek Industries (FTK)
Second Quarter Results – Initial Thoughts

CoreCivic, Inc. (CXW)
Solid Second Quarter Results