Gray Reports Solid 2021 Performance and is Poised for a Strong 2022

Posted on February 25, 2022 by Admin

Gray Reports Solid 2021 Performance and is Poised for a Strong 2022

Research, News, and Market Data on Gray Television

ATLANTA, Feb. 25, 2022 (GLOBE NEWSWIRE) — Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN) today announced financial results for the fourth quarter ended December 31, 2021. While the quarter did not include political advertising revenue at the robust levels experienced in the fourth quarter of 2020, our total revenues of $721 million were strong for an off-year of the two-year political advertising cycle, and higher than our anticipated results due to continued improvement in economic conditions and our acquisition of the Local Media Group of Meredith Corporation on December 1, 2021, and Quincy Media on August 2, 2021. Most notably, in the fourth quarter 2021 our combined local and national broadcast advertising revenue, excluding political advertising revenue (“Total Core Revenue”) increased by 26%, and our retransmission consent revenue increased by 35%. Our total revenue for the year ended December 31, 2021 was $2.4 billion, the highest we have ever reported.

Due to the significant effect that material transactions have had on our results of our operations, we present the financial information herein consistent with both U.S. Generally Accepted Accounting Principles (“GAAP” or “As Reported Basis”) and on a Combined Historical Basis (“CHB”), which incorporates certain historical results of acquired businesses, less the historical results of divested businesses. We also furnish certain other detailed non-GAAP metrics to provide more meaningful period-over-period comparisons to assist the public in its analysis and valuation of the Company. This additional information includes a summary of incremental expenses that were specific to our acquisitions, divestitures, and related financing activities (“Transaction Related Expenses”), non-cash stock-based compensation expenses and certain non-GAAP terms common in our industry. Please refer to the detailed discussion of the foregoing terms and concepts included elsewhere herein.

Summary of Operating Results

As Reported Basis (the respective 2021 periods reflect the “off-year” of the two year political advertising cycle):

For the fourth quarter of 2021:

Total revenue was $721 million, a decrease of 9% from the fourth quarter of 2020, primarily due to the cyclical decline in political advertising revenue.
Net income attributable to common stockholders was $16 million, or $0.17 per fully diluted share, a decrease of 92% from the fourth quarter of 2020. Excluding Transaction Related Expenses and non-cash stock compensation totaling $59 million, our net income attributable to common stockholders would have been $60 million.
Broadcast Cash Flow was $258 million, a decrease of 39% from the fourth quarter of 2020.
Adjusted EBITDA was $224 million, a decrease of 45% from the fourth quarter of 2020.

For the full year 2021:

Revenue was $2.4 billion, an increase of 1% from 2020, marking our highest ever annual revenue.
Net income attributable to common stockholders was $38 million, a decrease of 89% from 2020. Excluding Transaction Related Expenses and non-cash stock compensation totaling $95 million, our net income attributable to common stockholders would have been $109 million.
Broadcast Cash Flow was $813 million, a decrease of 19% from 2020.
Adjusted EBITDA was $739 million, a decrease of 21% from 2020.

Combined Historical Basis (the respective 2021 periods reflect the “off-year” of the two year political advertising cycle):

For the fourth quarter of 2021:

Revenue was $857 million, a decrease of 24% from the fourth quarter of 2020. Total Core Revenue increased by 11% from the fourth quarter of 2020.
Broadcast Cash Flow was $311 million, a decrease of 50% from the fourth quarter of 2020.

For the full year 2021:

Revenue was $3.2 billion, a decrease of 6% from 2020. Total Core Revenue increased by 18% from 2020.
Broadcast Cash Flow was $1.1 billion, a decrease of 24% from 2020.

Other Key Metrics

As of December 31, 2021, our Total Leverage Ratio, Net of all Cash, was 5.47 times on a trailing eight-quarter basis, netting our total cash balance of $189 million and giving effect to all Transaction Related Expenses.
During the fourth quarter of 2021, we repurchased 1,501,088 shares of our common stock at an average price of $19.98 per share, including commissions, for a total cost of approximately $30 million. We have not repurchased any shares since the close of the fourth quarter. Currently, we have 87,742,758 common shares and 7,560,937 Class A common shares outstanding and $174 million remaining under our share repurchase authorization.
Throughout 2021 and 2020, we incurred Transaction Related Expenses on an As Reported Basis that included but were not limited to legal and professional fees, severance and incentive compensation and contract termination fees. In addition, we recorded certain non-cash stock-based compensation expenses. These expenses are summarized as follows (in millions):

	Three Months Ended				Year Ended
	December 31,				December 31,
	2021		2020		2021		2020
Transaction Related Expenses:
Broadcasting	$	3	$	–	$	3	$	–
Corporate and administrative	52		1		71		1
Miscellaneous expense	–		–		7		–
Total Transaction Related Expenses	$	55	$	1	$	81	$	1

Total non-cash stock-based compensation	$	4	$	4	$	14	$	16

Taxes

During 2021 and 2020, we made aggregate federal and state income tax payments (net of refunds) of $149 million and $70 million, respectively. During 2022, we anticipate making income tax payments (net of refunds) within a range of $170 million to $190 million.
As of December 31, 2021, we have $10 million of federal operating loss carryforwards, which we expect to utilize in 2022. In addition, we have an aggregate of $424 million of various state operating loss carryforwards, of which we expect that approximately half will be utilized.

Guidance for the Three-Months Ending March 31, 2022

Based on our current forecasts for the quarter ending March 31, 2022, we anticipate the following key financial results, as outlined below in approximate ranges. We present revenue net of agency commissions. We present operating expenses net of depreciation, amortization and gain/loss on disposal of assets.

Revenue:
- Local revenue of $270 to $275 million, and national revenue of $81 to $86 million.
  - Total Core Revenue of $351 to $361 million, which reflects an increase by 0% to 3% on a Combined Historical Basis.
- Retransmission revenue of $380 to $385 million.
- Political revenue of $20 to $25 million.
- Production company revenue of $20 to $22 million.
- Total revenue of $789 to $812 million.
Operating Expenses:
- Broadcasting expenses of $535 to $545 million, including retransmission expense of approximately $225 million and transaction related expenses of approximately $3 million and non-cash stock-based compensation expense of approximately $1 million.
- Production company expenses of approximately $25 million.
- Corporate expenses of $29 to $33 million, including transaction related expenses of approximately $1 million and non-cash stock-based compensation expense of approximately $4 million.

Selected Operating Data on As Reported Basis (Unaudited)

	Three Months Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcasting	$	692	$	763	(9	)%	$	554	25	%
Production companies		29		29	0	%		25	16	%
Total revenue	$	721	$	792	(9	)%	$	579	25	%

Political advertising revenue	$	20	$	245	(92	)%	$	38	(47	)%

Operating expenses (1):
Broadcasting	$	449	$	355	26	%	$	339	32	%
Production companies	$	23	$	20	15	%	$	17	35	%
Corporate and administrative	$	84	$	18	367	%	$	21	300	%

Net income	$	29	$	224	(87	)%	$	94	(69	)%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	258	$	424	(39	)%	$	229	13	%
Broadcast Cash Flow Less Cash Corporate Expenses	$	177	$	409	(57	)%	$	212	(17	)%
Free Cash Flow	$	59	$	300	(80	)%	$	108	(45	)%


	Year Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcasting	$	2,340	$	2,320	1	%	$	2,035	15	%
Production companies		73		61	20	%		87	(16	)%
Total revenue	$	2,413	$	2,381	1	%	$	2,122	14	%

Political advertising revenue	$	44	$	430	(90	)%	$	68	(35	)%

Operating expenses (1):
Broadcasting	$	1,548	$	1,340	16	%	$	1,325	17	%
Production companies	$	62	$	52	19	%	$	74	(16	)%
Corporate and administrative	$	159	$	65	145	%	$	104	53	%

Net income	$	90	$	410	(78	)%	$	179	(50	)%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	813	$	999	(19	)%	$	729	12	%
Broadcast Cash Flow Less Cash Corporate Expenses	$	666	$	945	(30	)%	$	636	5	%
Free Cash Flow	$	238	$	559	(57	)%	$	273	(13	)%

(1) Excludes depreciation, amortization and gain on disposal of assets, net.
(2) See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included herein.

Selected Operating Data for the Fourth Quarter of 2021 on As Reported Basis
(Unaudited)

	Three Months Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	277	38	%	$	222	28	%	$	55		25	%
National		82	11	%		62	8	%		20		32	%
Political		20	3	%		245	31	%		(225	)	(92	)%
Retransmission consent		294	41	%		217	27	%		77		35	%
Production companies		29	4	%		29	4	%		–		0	%
Other		19	3	%		17	2	%		2		12	%
Total	$	721	100	%	$	792	100	%	$	(71	)	(9	)%

Total local and national revenue
combined (“Total Core Revenue”)	$	359	50	%	$	284	36	%	$	75		26	%

Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	274	61	%	$	230	65	%	$	44		19	%
Retransmission expense	171		38	%	125		35	%	46			37	%
Transaction Related Expenses	3		1	%	–		0	%	3
Non-cash stock-based compensation	1		0	%	–		0	%	1
Total broadcasting expense	$	449	100	%	$	355	100	%	$	94		26	%

Production companies expense	$	23			$	20			$	3		15	%

Corporate and administrative:
Corporate expenses	$	29	35	%	$	13	72	%	$	16		123	%
Transaction Related Expenses	52		61	%	1		6	%	51			5100	%
Non-cash stock-based compensation	3		4	%	4		22	%		(1	)	(25	)%
Total corporate and
administrative expense	$	84	100	%	$	18	100	%	$	66		367	%

Selected Operating Data for the Full Year 2021 on As Reported Basis
(Unaudited)

	Year Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	934	39	%	$	771	32	%	$	163		21	%
National		256	11	%		198	8	%		58		29	%
Political		44	2	%		430	18	%		(386	)	(90	)%
Retransmission consent		1,049	43	%		867	36	%		182		21	%
Production companies		73	3	%		61	3	%		12		20	%
Other		57	2	%		54	3	%		3		6	%
Total	$	2,413	100	%	$	2,381	100	%	$	32		1	%

Total Core Revenue	$	1,190	50	%	$	969	40	%	$	221		23	%

Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	928	60	%	$	839	63	%	$	89		11	%
Retransmission expense	615		40	%	496		37	%	119			24	%
Transaction Related Expenses	3		0	%	–		0	%	3
Non-cash stock-based compensation	2		0	%	5		0	%	(3		)	(60	)%
Total broadcasting expense	$	1,548	100	%	$	1,340	100	%	$	208		16	%

Production companies expense	$	62			$	52			$	10		19	%

Corporate and administrative:
Corporate expenses	$	76	48	%	$	53	81	%	$	23		43	%
Transaction Related Expenses	71		45	%	1		2	%	70			7000	%
Non-cash stock-based compensation	12		7	%	11		17	%	1			9	%
Total corporate and
administrative expense	$	159	100	%	$	65	100	%	$	94		145	%

Detail Table of Operating Results on As Reported Basis
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,

	2021			2020			2021			2020
	(in millions, except for net income per share data)
Revenue (less agency commissions):
Broadcasting	$	692		$	763		$	2,340		$	2,320
Production companies	29			29			73			61
Total revenue (less agency commissions)	721			792			2,413			2,381
Operating expenses before depreciation, amortization and gain on
disposal of assets, net:
Broadcasting	449			355			1,548			1,340
Production companies	23			20			62			52
Corporate and administrative	84			18			159			65
Depreciation	28			27			104			96
Amortization of intangible assets	36			27			117			105
(Gain) loss on disposal of assets, net	(4		)		(6	)	42			(29		)
Operating expenses	616			441			2,032			1,629
Operating income	105			351			381			752
Other (expense) income:
Miscellaneous (expense) income, net	(1		)	–				(8	)	(5		)
Interest expense	(62		)		(48	)		(205	)	(191		)
Loss on early extinguishment of debt	–				(12	)	–			(12		)
Income before income tax	42			291			168			544
Income tax expense	13			67			78			134
Net income	29			224			90			410
Preferred stock dividends	13			13			52			52
Net income attributable to common stockholders	$	16		$	211		$	38		$	358

Basic per share information:
Net income attributable to common stockholders	$	0.17		$	2.24		$	0.40		$	3.73
Weighted-average shares outstanding	95			94			95			96

Diluted per share information:
Net income attributable to common stockholders	$	0.17		$	2.22		$	0.40		$	3.69
Weighted-average shares outstanding	95			95			95			97

Selected Operating Data on Combined Historical Basis (Unaudited)

	Three Months Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcast	$	828	$	1,104	(25	)%	$	774	7	%
Production companies		29		30	(3	)%		25	16	%
Total revenue	$	857	$	1,134	(24	)%	$	799	7	%

Political advertising revenue	$	25	$	383	(93	)%	$	45	(44	)%

Operating expenses (1):
Broadcast	$	536	$	518	3	%	$	481	11	%
Production companies	$	23	$	21	10	%	$	17	35	%
Corporate and administrative	$	84	$	18	367	%	$	20	320	%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	311	$	624	(50	)%	$	336	(7	)%
Broadcast Cash Flow Less Cash Corporate Expenses	$	230	$	609	(62	)%	$	319	(28	)%
Operating Cash Flow as Defined in our Senior Credit Agreement	$	285	$	609	(53	)%	$	320	(11	)%
Free Cash Flow	$	139	$	423	(67	)%	$	168	(17	)%

	Year Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcast	$	3,080	$	3,291	(6	)%	$	2,854	8	%
Production companies		73		61	20	%		87	(16	)%
Total revenue	$	3,153	$	3,352	(6	)%	$	2,941	7	%

Political advertising revenue	$	60	$	652	(91	)%	$	79	(24	)%

Operating expenses (1):
Broadcast	$	2,059	$	1,923	7	%	$	1,885	9	%
Production companies	$	62	$	53	17	%	$	74	(16	)%
Corporate and administrative	$	160	$	65	146	%	$	104	54	%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	1,105	$	1,459	(24	)%	$	1,121	(1	)%
Broadcast Cash Flow Less Cash Corporate Expenses	$	958	$	1,405	(32	)%	$	1,028	(7	)%
Operating Cash Flow as Defined in our Senior Credit Agreement	$	1,029	$	1,403	(27	)%	$	1,060	(3	)%
Free Cash Flow	$	443	$	809	(45	)%	$	533	(17	)%

(1) Excludes depreciation, amortization and gain on disposal of assets, net.
(2) See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included herein.

Selected Operating Data for the Fourth Quarter of 2021 on Combined Historical Basis
(Unaudited)

	Three Months Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	317	37	%	$	287	25	%	$	30		10	%
National		105	12	%		92	8	%		13		14	%
Political		25	3	%		383	34	%		(358	)	(93	)%
Retransmission consent		358	42	%		319	28	%		39		12	%
Production companies		29	3	%		30	3	%		(1	)	(3	)%
Other		23	3	%		23	2	%		–		0	%
Total	$	857	100	%	$	1,134	100	%	$	(277	)	(24	)%


Total Core Revenue	$	422	49	%	$	379	33	%	$	43		11	%


Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	321	60	%	$	331	64	%	$	(10	)	(3	)%
Retransmission expense		211	39	%		186	36	%		25		13	%
Transaction Related Expenses		3	1	%		–	0	%		3
Non-cash stock-based compensation		1	0	%		1	0	%		–
Total broadcasting expense	$	536	100	%	$	518	100	%	$	18		3	%

Production companies expense	$	23			$	21			$	2		10	%

Corporate and administrative:
Corporate expenses	$	29	35	%	$	13	72	%	$	16		123	%
Transaction Related Expenses		52	61	%		1	6	%		51		5100	%
Non-cash stock-based compensation		3	4	%		4	22	%		(1	)	(25	)%
Total corporate and
administrative expense	$	84	100	%	$	18	100	%	$	66		367	%

Selected Operating Data for the Full Year 2021 on Combined Historical Basis
(Unaudited)

	Year Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	1,158	37	%	$	1,000	30	%	$	158		16	%
National		357	11	%		289	9	%		68		24	%
Political		60	2	%		652	19	%		(592	)	(91	)%
Retransmission consent		1,429	45	%		1,276	38	%		153		12	%
Production companies		73	2	%		61	2	%		12		20	%
Other		76	3	%		74	2	%		2		3	%
Total	$	3,153	100	%	$	3,352	100	%	$	(199	)	(6	)%


Total Core Revenue	$	1,515	48	%	$	1,289	38	%	$	226		18	%

Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	1,210	59	%	$	1,184	62	%	$	26		2	%
Retransmission expense	842		41	%	732		38	%	110			15	%
Transaction Related Expenses	3		0	%	–		0	%	3
Non-cash stock-based compensation	4		0	%	7		0	%	(3		)	(43	)%
Total broadcasting expense	$	2,059	100	%	$	1,923	100	%	$	136		7	%

Production companies expense	$	62			$	53			$	9		17	%

Corporate and administrative:
Corporate expenses	$	77	48	%	$	53	81	%	$	24		45	%
Transaction Related Expenses	71		44	%	1		2	%	70			7000	%
Non-cash stock-based compensation	12		8	%	11		17	%	1			9	%
Total corporate and
administrative expense	$	160	100	%	$	65	100	%	$	95		146	%

Other Financial Data,
As Reported Basis

	As of December 31,
	2021			2020
	(in millions)

Cash	$	189		$	773
Long-term debt, including current portion, less deferred
financing costs	$	6,755		$	3,974
Series A perpetual preferred stock	$	650		$	650
Borrowing availability under senior credit facility	$	497		$	200

	Year Ended December 31,
	2021			2020
	(in millions)

Net cash provided by operating activities	$	300		$	652
Net cash used in investing activities	(3,534		)	(211		)
Net cash provided by financing activities	2,650			120
Net (decrease) increase in cash	$	(584	)	$	561

Additional Information

The Company

We are a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets in the United States. Our television stations serve 113 television markets that collectively reach approximately 36 percent of US television households. This portfolio includes 80 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station. We also own video program companies Raycom Sports, Tupelo Honey, PowerNation Studios and Third Rail Studios.

Cautionary Statements for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act

This press release contains certain forward-looking statements that are based largely on our current expectations and reflect various estimates and assumptions by us. These statements are statements other than those of historical fact and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond our control, include our inability to achieve expected synergies from recent transactions on a timely basis or at all, the impact of recently completed transactions, estimates of future revenue, future expenses and other future events. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained therein, which reports are made publicly available via our website, www.gray.tv. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise.

Conference Call Information

We will host a conference call to discuss our fourth quarter operating results on February 25, 2022. The call will begin at 11:00 a.m. Eastern Time. The live dial-in number is 1-855-493-3489 and the confirmation code is 8667075. The call will be webcast live and available for replay at www.gray.tv. The taped replay of the conference call will be available at 1-855-859-2056, Confirmation Code is 8667075 until March 25, 2022.

Gray Contacts

Web site: www.gray.tv

Hilton H. Howell, Jr., Executive Chairman and Chief Executive Officer, 404-266-5513

Pat LaPlatney, President and Co-Chief Executive Officer, 334-206-1400

Jim Ryan, Executive Vice President and Chief Financial Officer, 404-504-9828

Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333

Effects of Acquisitions and Divestitures on Our Results of Operations and Non-GAAP Terms

From January 1, 2019 through December 31, 2021, we completed several acquisition and divestiture transactions. As more fully described in our Form 10-K to be filed with the Securities and Exchange Commission today and in our prior disclosures, these transactions materially affected our operations. We refer to the 2021 Acquisitions collectively with all other television stations acquired or divested on or subsequent to January 1, 2019 as the “Acquisitions”.

Due to the significant effect that the Acquisitions have had on our results of operations, and in order to provide more meaningful period over period comparisons, we present herein certain financial information on a Combined Historical Basis (or “CHB”). Combined Historical Basis financial information does not include any adjustments for other events attributable to the Acquisitions unless otherwise described. Certain of the Combined Historical Basis financial information has been derived from, and adjusted based on unaudited, unreviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the accuracy of such information, or that our actual results would not differ materially from the Combined Historical Basis financial information if the Acquisitions had been completed at the stated date. In addition, the presentation of Combined Historical Basis may not comply with United Stated Generally Accepted Accounting Principles (“GAAP”) or the requirements for proforma financial information under Regulation S-X under the Securities Act.

From time to time, we supplement our financial results prepared in accordance with GAAP by disclosing the non-GAAP financial measures Broadcast Cash Flow, Broadcast Cash Flow Less Cash Corporate Expenses, Operating Cash Flow as defined in the Senior Credit Agreement, Free Cash Flow, Adjusted EBITDA and Total Leverage Ratio, Net of All Cash. These non-GAAP amounts are used by us to approximate amounts used to calculate key financial performance covenants contained in our debt agreements and are used with our GAAP data to evaluate our results and liquidity.

We define Broadcast Cash Flow as net income or loss plus loss on early extinguishment of debt, non-cash corporate and administrative expenses, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Broadcast Transactions Related Expenses and broadcast other adjustments less any gain on disposal of assets, any miscellaneous income, any income tax benefits and payments for program broadcast rights.

We define Broadcast Cash Flow Less Cash Corporate Expenses as net income or loss plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Transaction Related Expenses and other adjustments less any gain on disposal of assets, any miscellaneous income, any income tax benefits and payments for program broadcast rights.

We define Operating Cash Flow as defined in our Senior Credit Agreement as net income or loss plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Transaction Related Expenses, other adjustments, certain pension expenses, synergies and other adjustments less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast rights, pension income and contributions to pension plans.

Operating Cash Flow as defined in our Senior Credit Agreement gives effect to the revenue and broadcast expenses of all completed acquisitions and divestitures as if they had been acquired or divested, respectively, on January 1, 2019. It also gives effect to certain operating synergies expected from the acquisitions and related financings and adds back professional fees incurred in completing the acquisitions. Certain of the financial information related to the acquisitions has been derived from, and adjusted based on, unaudited, un-reviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the accuracy of such information, or that our actual results would not differ materially from this financial information if the acquisitions had been completed on the stated date. In addition, the presentation of Operating Cash Flow as defined in the Senior Credit Agreement and the adjustments to such information, including expected synergies resulting from such transactions, may not comply with GAAP or the requirements for pro forma financial information under Regulation S-X under the Securities Act of 1933.

We define Free Cash Flow as net income or loss, plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, any income tax expense, non-cash 401(k) expense, Transactions Related Expenses, broadcast other adjustments, certain pension expenses, synergies, other adjustments and amortization of deferred financing costs less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast rights, pension income, contributions to pension plans, preferred dividends, purchase of property and equipment (net of reimbursements and certain defined purchases) and income taxes paid (net of any refunds received and certain defined payments).

We define Adjusted EBITDA as net income or loss, plus loss on early extinguishment of debt, non-cash stock-based compensation, depreciation and amortization of intangible assets, any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense, Transaction Related Expenses less any gain on disposal of assets, any miscellaneous income and any income tax benefits.

Our Total Leverage Ratio, Net of All Cash is determined by dividing our Adjusted Total Indebtedness, Net of All Cash, by our Operating Cash Flow as defined in our Senior Credit Agreement, divided by two. Our Adjusted Total Indebtedness, Net of All Cash, represents the total outstanding principal of our long-term debt, plus certain other obligations as defined in our Senior Credit Agreement, less all cash (excluding restricted cash). Our Operating Cash Flow, as defined in our Senior Credit Agreement, divided by two, represents our average annual Operating Cash Flow as defined in our Senior Credit Agreement for the preceding eight quarters.

We define Transaction Related Expenses as incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation, and contract termination fees. We present certain line items from our selected operating data, net of Transaction Related Expenses, in order to present a more meaningful comparison between periods of our operating expenses and our results of operations.

These non-GAAP terms are not defined in GAAP and our definitions may differ from, and therefore may not be comparable to, similarly titled measures used by other companies, thereby limiting their usefulness. Such terms are used by management in addition to, and in conjunction with, results presented in accordance with GAAP and should be considered as supplements to, and not as substitutes for, net income and cash flows reported in accordance with GAAP.

Reconciliation of Non-GAAP Terms on As Reported Basis, in millions:

	Three Months Ended
	December 31,
	2021			2020			2019

Net income	$	29		$	224		$	94
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	28			27			20
Amortization of intangible assets	36			27			29
Non-cash stock-based compensation	4			4			6
Non-cash 401(k) expense, excluding corporate portion	7			6			5
Gain on disposal of assets, net	(4		)	(6		)	(27		)
Miscellaneous expense, net	1			–			–
Interest expense	62			48			54
Loss on early extinguishment of debt	–			12			–
Income tax expense	13			67			32
Amortization of program broadcast rights	12			10			9
Payments for program broadcast rights	(11		)	(10		)	(10		)
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	81			15			17
Broadcast Cash Flow	258			424			229
Corporate and administrative expenses excluding
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(81		)	(15		)	(17		)
Broadcast Cash Flow Less Cash Corporate Expenses	177			409			212
Interest expense	(62		)	(48		)	(54		)
Amortization of deferred financing costs	2			2			2
Preferred stock dividends	(13		)	(13		)	(13		)
Common stock dividends	(8		)	–			–
Purchase of property and equipment (1)	(35		)	(40		)	(37		)
Reimbursements of property and equipment purchases	1			10			9
Income taxes paid, net of refunds (2)	(3		)	(20		)	(11		)
Free Cash Flow	$	59		$	300		$	108

(1) Excludes approximately $18 million related to the Assembly Atlanta project in the fourth quarter of 2021.
(2) Excludes approximately $17 million of income tax payments related to the Meredith Divestiture and the Quincy Divestiture in the fourth quarter of 2021.

Reconciliation of Non-GAAP Terms on As Reported Basis, in millions:

	Year Ended
	December 31,
	2021			2020			2019

Net income	$	90		$	410		$	179
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	104			96			80
Amortization of intangible assets	117			105			115
Non-cash stock-based compensation	14			16			16
Non-cash 401(k) expense, excluding corporate portion	8			6			5
Loss (gain) on disposal of assets, net	42			(29		)	(54		)
Miscellaneous expense (income), net	8			5			(4		)
Interest expense	205			191			227
Loss on early extinguishment of debt	–			12			–
Income tax expense	78			134			76
Amortization of program broadcast rights	38			38			39
Payments for program broadcast rights	(38		)	(39		)	(43		)
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	147			54			93
Broadcast Cash Flow	813			999			729
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(147		)	(54		)	(93		)
Broadcast Cash Flow Less Cash Corporate Expenses	666			945			636
Contributions to pension plans	(4		)	(3		)	(3		)
Interest expense	(205		)	(191		)	(227		)
Amortization of deferred financing costs	11			11			11
Preferred stock dividends	(52		)	(52		)	(52		)
Common stock dividends	(31		)	–			–
Purchase of property and equipment (1)	(98		)	(110		)	(110		)
Reimbursements of property and equipment purchases	11			29			41
Income taxes paid, net of refunds (2)	(60		)	(70		)	(23		)
Free Cash Flow	$	238		$	559		$	273

(1) Excludes approximately $109 million related to the Assembly Atlanta project in 2021.
(2) Excludes approximately $89 million of income tax payments related to the Meredith Divestiture and the Quincy Divestiture in 2021.

Reconciliation of Non-GAAP Terms on a Combined Historical Basis, in millions:

	Three Months Ended
	December 31,
	2021			2020			2019

Net income	$	57		$	364		$	110
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	32			34			28
Amortization of intangible assets	37			29			33
Non-cash stock based compensation	4			5			6
Non-cash 401(k) expense, excluding corporate portion	7			6			5
(Gain) loss on disposal of assets, net	(2		)	(5		)	2
Miscellaneous expense, net	1			1			–
Interest expense	78			78			78
Loss from early extinguishment of debt	–			12			–
Income tax expense	9			66			30
Amortization of program broadcast rights	14			15			14
Payments for program broadcast rights	(14		)	(14		)	(15		)
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	81			15			17
Broadcast Transaction Related Expenses	3			–			7
Broadcast other adjustments	4			18			21
Broadcast Cash Flow	311			624			336
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(81		)	(15		)	(17		)
Broadcast Cash Flow Less Cash Corporate Expenses	230			609			319
Adjustments for unrestricted subsidiaries	3			–			–
Corporate Transaction Related Expenses	52			–			1
Operating Cash Flow as Defined in Senior Credit Facility	285			609			320
Interest expense	(78		)	(78		)	(78		)
Amortization of deferred financing costs	3			3			3
Preferred dividends	(13		)	(13		)	(13		)
Common stock dividends	(8		)	–			–
Purchase of property and equipment (1)	(37		)	(46		)	(51		)
Reimbursement of purchases of property and equipment	1			11			12
Income taxes paid, net of refunds (2)	(14		)	(63		)	(25		)
Free Cash Flow	$	139		$	423		$	168

Reconciliation of Non-GAAP Terms on a Combined Historical Basis, in millions:

	Year Ended
	December 31,
	2021			2020			2019

Net income	$	265		$	635		$	310
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	128			128			111
Amortization of intangible assets	123			114			127
Non-cash stock-based compensation	16			18			17
Non-cash 401(k) expense, excluding corporate portion	8			6			5
Gain on disposal of assets, net	(10		)	(32		)	(41		)
Miscellaneous expense (income), net	8			27			(5		)
Interest expense	311			311			311
Loss from early extinguishment of debt	–			12			–
Income tax expense	46			117			65
Amortization of program broadcast rights	55			58			60
Payments for program broadcast rights	(56		)	(59		)	(64		)
Corporate and administrative expenses excluding
depreciation, amortization of intangible assets and
non-cash stock-based compensation	147			54			93
Broadcast Transaction Related Expenses	3			–			45
Broadcast other adjustments	61			70			87
Broadcast Cash Flow	1,105			1,459			1,121
Corporate and administrative expenses excluding
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(147		)	(54		)	(93		)
Broadcast Cash Flow Less Cash Corporate Expenses	958			1,405			1,028
Contributions to pension plans	(4		)	(3		)	(3		)
Adjustments for unrestricted subsidiaries	4			–			–
Corporate Transaction Related Expenses	71			1			35
Operating Cash Flow as Defined in Senior Credit Facility	1,029			1,403			1,060
Interest expense	(311		)	(311		)	(311		)
Amortization of deferred financing costs	12			12			12
Preferred dividends	(52		)	(52		)	(52		)
Common stock dividends	(31		)	–			–
Purchase of property and equipment (1)	(107		)	(127		)	(154		)
Reimbursement of purchases of property and equipment	13			36			55
Income taxes paid, net of refunds (2)	(110		)	(152		)	(77		)
Free Cash Flow	$	443		$	809		$	533

Reconciliation of Net Income on As Reported Basis to Adjusted EBITDA and the Effect of Transaction Related Expenses and Certain Non-cash Expenses, in millions except for per share information:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020

Net income	$	29		$	224		$	90		$	410
Adjustments to reconcile from net income to
Adjusted EBITDA:
Depreciation	28			27			104			96
Amortization of intangible assets	36			27			117			105
Non-cash stock-based compensation	4			4			14			16
(Gain) loss on disposal of assets, net	(4		)	(6		)	42			(29		)
Miscellaneous expense, net	1			–			8			5
Interest expense	62			48			205			191
Loss on early extinguishment of debt	–			12			–			12
Income tax expense	13			67			78			134
Total	169			403			658			940
Add: Transaction Related Expenses	55			1			81			1
Adjusted EBITDA	$	224		$	404		$	739		$	941

Net income attributable to common stockholders	$	16		$	211		$	38		$	358
Add: Transaction Related Expenses and non-cash
stock-based compensation	59			5			95			17
Less: Income tax expense related to Transaction Related
Expenses and non-cash stock-based compensation	(15		)	(1		)	(24		)	(4		)
Net income attributable to common stockholders – excluding Transaction Related Expenses and non-cash stock-based compensation	$	60		$	215		$	109		$	371

Net income attributable to common stockholders per common share, diluted – excluding Transaction Related Expenses and non-cash stock-based compensation	$	0.63		$	2.26		$	1.15		$	3.82

Diluted weighted-average shares outstanding	95			95			95			97

Reconciliation of Total Leverage Ratio, Net of All Cash, in millions except for ratio:

	Eight Quarters Ended
	December 31, 2021

Net income	$	500
Adjustments to reconcile from net income to operating cash flow as
defined in our Senior Credit Agreement:
Depreciation	200
Amortization of intangible assets	222
Non-cash stock-based compensation	30
Non-cash 401(k) expense, excluding corporate portion	15
Loss on disposal of assets, net	13
Interest expense	396
Loss on early extinguishment of debt	12
Income tax expense	212
Amortization of program broadcast rights	75
Payments for program broadcast rights	(77)
Pension gain	(3)
Contributions to pension plan	(7)
Adjustments for unrestricted subsidiaries	3
Adjustments for stations acquired or divested, financings and expected
synergies during the eight quarter period	759
Transaction Related Expenses	82
Operating Cash Flow, as defined in our Senior Credit Agreement	$	2,432
Operating Cash Flow, as defined in our Senior Credit Agreement,
divided by two	$	1,216

	December 31, 2021
Adjusted Total Indebtedness:
Total outstanding principal, including current portion	$	6,835
Letters of Credit Outstanding	3
Cash	(189)
Adjusted Total Indebtedness, Net of All Cash	$	6,649

Total Leverage Ratio, Net of All Cash	5.47

Gevo Reports Fourth Quarter 2021 Financial Results

Posted on February 25, 2022 by Admin

Gevo Reports Fourth Quarter 2021 Financial Results

Research, News, and Market Data on Gevo

ENGLEWOOD, Colo., Feb. 24, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the fourth quarter of 2021 and summarized recent corporate highlights.

Recent Corporate Highlights

On December 7, 2021, Kolmar Americas Inc and Gevo entered into a financeable fuel supply agreement for 45 million gallons per year of renewable, energy-dense liquid hydrocarbons.
On November 16, 2021, Gevo signed a memorandum of understanding (MoU) with Sweetwater Energy, Inc., regarding the use of sustainably sourced agricultural residues and woody biomass as a feedstock for producing cellulosic alcohols and energy-dense renewable liquid hydrocarbons.
On October 25, 2021, ADM, a global leader in nutrition and agricultural origination and processing, and Gevo signed a MoU to support the production of sustainable aviation fuel and other low carbon-footprint hydrocarbon fuels.
On October 12, 2021, Gevo and Axens North America, Inc. (“Axens”) entered into an agreement that establishes a strategic alliance aimed at accelerating the commercialization of sustainable ethanol-to-jet projects in the United States.
In December 2021, Argonne National Laboratory (“ANL”), a U.S. Department of Energy multidisciplinary science and engineering research center, reported the preliminary results of its life cycle analysis of Gevo’s planned Net-Zero plant to Gevo. ANL’s preliminary findings were consistent with Gevo’s findings that when renewable energy is used to power production processes, and the corn is produced with climate smart ag practices that drive the carbon intensity score of corn down, then the sustainable aviation fuel (“SAF”) that would be produced could achieve net-zero life-cycle emissions when measured using ANL’s GREET Model. When carbon capture sequestration technology is added as a de-carbonization tool, the life-cycle emissions should be negative according to the model. ANL is currently working through the scientific peer reviewed publication process.
In January 2022, Gevo’s renewable natural gas (“RNG”) facilities in NW Iowa began to start-up operations. The start-up process is expected to take a few months and reach a steady state operation in the second quarter of 2022 which will allow time for Gevo to apply for credits under the federal Renewable Fuel Standard Program (“RFS”) and the Low Carbon Fuel Standard (“LCFS”) in California, including verification of carbon intensity levels and other requirements. Depending on the timing of the qualification and approval processes for obtaining credits under RFS and LCFS, Gevo expects to generate biogas revenues starting in the second quarter of 2022 and sales of credits under RFS and LCFS in the second half of 2022. Gevo expects that the RNG Project EBITDA¹ should generate approximately $16-22 million per year by 2023 depending on a variety of assumptions, including the value of credits under RFS and LCFS.

2021 Fourth Quarter Financial Highlights

Ended the quarter with cash, cash equivalents, restricted cash and marketable securities of $475.8 million compared to $522.4 as of the end Q3 2021
Revenue of $0.1 million for the quarter compared to $0.5 million in Q4 2020
Loss from operations of ($16.5) million for the quarter compared to ($7.6) million in Q4 2020
Non-GAAP cash EBITDA loss² of ($10.9) million for the quarter compared to ($5.7) million in Q4 2020
Net loss per share of ($0.08) for the quarter compared to ($0.15) in Q4 2020
Non-GAAP adjusted net loss per share³ of ($0.08) for the quarter compared to ($0.07) in Q4 2020

Net-Zero 1 Update

Gevo continues to make progress on the design and engineering work related to its Net-Zero 1 Project. As a result of Gevo’s agreement and relationship with Axens, Gevo recently made the decision to utilize ethanol fermentation technology instead of isobutanol fermentation technology to produce SAF and other renewable hydrocarbon products at Net-Zero 1.

Gevo believes that there are several advantages of using ethanol fermentation technology at Net-Zero 1, including the following:

Lower capital costs per gallon of hydrocarbon produced
Increased production capacity of renewable hydrocarbons from 45MGPY to 60MGPY
Process guarantees from Axens on the conversion of ethanol into SAF
Lower technology and execution risk which are expected to make debt financing more readily available
Leverages previous Net-Zero 1 engineering and design work from 2021
The hydrocarbon plant design for Net-Zero 1 can be used at any ethanol plant that meets certain sustainability and carbon intensity score requirements which should enable Gevo to grow more rapidly to meet demand

Gevo currently expects to construct Net-Zero 1 in Lake Preston, South Dakota. In addition to Lake Preston, Gevo has identified several other attractive greenfield sites that are at least as attractive as Lake Preston from the standpoint of fundamental economics, access to sustainable feedstocks, deployment of renewable energy and transportation of finished product to market. Lake Preston is the furthest developed of the sites that Gevo has identified for Net-Zero 1. Gevo expects final site selection for Net-Zero 1 to occur later in 2022.

Gevo is targeting Net-Zero 1 to be mechanically complete in late 2024 and operational in 2025. Based on current assumptions, including those around future commodity pricing and future environmental benefit credit values, and preliminary engineering work, Gevo estimates Net-Zero 1 will have a fully installed and non-recourse project financed capital cost of approximately $900 million, to generate approximately $150-200 million of Net-Zero 1 Project EBITDA⁴ per year. Because Gevo can leverage a substantial amount of the work already done for Net-Zero 1, Gevo expects to order long lead equipment and begin site preparation in late 2022 with full construction commencing in 2023.

Commenting on the fourth quarter of 2021 and recent corporate developments, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “It’s an exciting time to work for Gevo with plans moving forward on our first of its kind, fully-decarbonized alcohol-to-SAF plant that will produce commercial volumes of SAF. Our relationship with Axens is bearing fruit. Knowing how to convert ethanol into net-zero SAF and other hydrocarbons is key to our growth strategy, especially with the potential commercial relationships with ADM and other partners.”

Dr. Gruber continued, “Over the last twelve months, we’ve hired the leaders for our Net-Zero 1 Project. We are focused on engineering Net-Zero 1 so that we can get it built and operating.”

Fourth Quarter 2021 Financial Results

Revenue for the three months ended December 31, 2021 was $0.1 million compared with $0.5 million in the same period in 2020.

During the three months ended December 31, 2021, hydrocarbon revenue was nil compared to $0.4 million during the three months ended December 31, 2020. Gevo’s hydrocarbon revenue is comprised of sales of SAF and renewable premium gasoline.

During the three months ended December 31, 2021 and 2020, no significant revenue was derived at Gevo’s production facility in Luverne, Minnesota (the “Luverne Facility”) related to ethanol sales and related products.

As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains in March 2020. As previously announced, the Luverne Facility is currently producing isobutanol that will be used as a feedstock for us to produce SAF and renewable premium gasoline to fulfill existing sales contracts. We also expect to utilize some of the isobutanol produced to develop certain isobutanol specialty markets. These renewable hydrocarbons will be produced at Gevo’s demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”).

Cost of goods sold was $2.8 million for the three months ended December 31, 2021, compared with $0.9 million in the same period in 2020. We began producing isobutanol during the third quarter 2021 resulting in higher production costs. The cost of goods sold was significantly higher for isobutanol without the coproduction of ethanol as operated in previous years as we worked to improve and refine our production processes. Cost of goods sold included costs associated with the production of isobutanol, SAF and isooctane as well as maintenance of the Luverne Facility and the South Hampton Facility.

Depreciation and amortization for the three months ended December 31, 2021 totaled approximately $1.1 million related to production costs. Depreciation and amortization for the three months ended December 31, 2021 totaled approximately $0.5 million related to research and development expense and sales, general and administrative expense.

Gross loss was ($3.8) million for the three months ended December 31, 2021, compared with a ($1.4) million gross loss in the same period in 2020.

Research and development expense increased by approximately $1.1 million during the three months ended December 31, 2021, compared with the three months ended December 31, 2020, due primarily to an increase in personnel and recruiting costs related to increased headcount and stock-based compensation as we work to improve our process for growing and fermenting yeast strains.

Selling, general and administrative expense increased by approximately $4.5 million during the three months ended December 31, 2021, compared with the three months ended December 31, 2020, due primarily to increases in personnel costs and recruiting related to increased headcount and stock-based compensation, increased professional fees, higher costs for insurance and increased consulting fees related to documenting our compliance with Section 404(b) of the Sarbanes-Oxley Act.

Preliminary stage project costs related to our RNG and Net-Zero projects were approximately $2.1 million during the three months ended December 31, 2021 compared to $1.0 million for the three months ended December 31, 2020. During the three months ended December 31, 2021, the preliminary stage project costs were primarily related to consulting for preliminary engineering costs and for personnel expenses to support the growth in business activity at our Net-Zero projects. During the three months ended December 31, 2020, the preliminary stage project costs were primarily related to consulting for preliminary engineering costs and for personnel expenses to support the growth in business activity at our RNG project. During the three months ended December 31, 2021, we began capitalizing our Net-Zero 1 project costs after completing certain front-end engineering studies and determining it was probable that we would build the Net-Zero 1 project.

Loss from operations in the three months ended December 31, 2021 was ($16.5) million, compared with a ($7.6) million loss from operations in the same period in 2020.

Non-GAAP cash EBITDA loss⁵ in the three months ended December 31, 2021 was ($10.9) million, compared with a ($5.7) million non-GAAP cash EBITDA loss in the same period in 2020.

Interest expense decreased by $0.4 million in the three months ended December 31, 2021 as compared to the same period in 2020, due to the conversion of all Gevo’s 12% convertible senior secured notes due 2020/2021 to common stock during 2020.

Interest and dividend income during the three months ended December 31, 2021 increased $0.2 million compared to the three months ended December 31, 2020, primarily due to income received on marketable securities and restricted cash.

Gevo incurred a net loss for the three months ended December 31, 2021 of ($16.5) million, compared with a net loss of ($18.1) million during the same period in 2020. Non-GAAP adjusted net loss⁶ for the three months ended December 31, 2021 was ($16.5) million, compared with a non-GAAP adjusted net loss of ($8.1) million during the same period in 2020.

Cash, cash equivalents, restricted cash and marketable securities at December 31, 2021 totaled $475.8 million compared to $522.4 as of the end Q3 2021.

Webcast and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Heather Manuel, Vice President – Investor Relations & Communications and John Richardson, Investor Relations Manager. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial 1 (833) 729-4776 (inside the U.S.) or 1 (830) 213-7701 (outside the U.S.) and reference the access code 3465026# or through the event weblink https://edge.media-server.com/mmc/p/38zwqbqa.

A replay of the call and webcast will be available two hours after the conference call ends on February 24, 2022. To access the replay, please visit https://edge.media-server.com/mmc/p/38zwqbqa. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s business development activities, Gevo’s agreement with Kolmar Americas Inc., Gevo’s Net-Zero Projects, Gevo’s RNG project, fermentation technologies, the status of the engineering and design work for the Net-Zero 1 Project, the timing of Net-Zero 1, projections concerning Net-Zero 1, including projected capital costs, projected internal rates of return and projected EBITDA, Gevo’s ability to the commercialize its projects, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2021 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (“GAAP”), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA loss excludes depreciation and amortization and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

¹ RNG Project EBITDA is a non-GAAP financial measure that we define as total operating revenues less total operating expenses for the project.
² Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.
³ Adjusted net loss per share is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss per share. A reconciliation of adjusted net loss per share to GAAP net loss per share is provided in the financial statement tables following this release.
⁴ Net-Zero 1 Project EBITDA is a non-GAAP financial measure that we define as total operating revenues less total operating expenses for the project.
⁵ Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.
⁶ Adjusted net loss is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss. A reconciliation of adjusted net loss to GAAP net loss is provided in the financial statement tables following this release.

Gevo, Inc.
Condensed Consolidated Balance Sheets Information
(Unaudited, in thousands, except share and per share amounts)

	December 31,			December 31,
		2021			2020
Assets
Current assets
Cash and cash equivalents	$	40,833		$	78,338
Marketable securities (current)		275,340			–
Restricted cash (current)		25,032			–
Accounts receivable, net		978			527
Inventories		2,751			2,491
Prepaid expenses and other current assets		6,857			1,914
Total current assets		351,791			83,270

Property, plant and equipment, net		139,141			66,408
Long-term marketable securities		64,396			–
Long-term restricted cash		70,168			–
Operating right-of-use assets		2,414			133
Finance right-of-use assets		27,297			176
Intangible assets, net		8,938			114
Deposits and other assets		2,331			1,998
Total assets	$	666,476		$	152,099

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	28,288		$	3,943
Operating lease liabilities (current)		772			172
Financing lease liabilities (current)		3,413			10
Loans payable – other (current)		158			807
Total current liabilities		32,631			4,932

2021 Bonds payable (long-term)		66,486			–
Loans payable – other (long-term)		318			447
Operating lease liabilities (long-term)		1,902			–
Finance lease liabilities (long-term)		17,797			162
Other long-term liabilities		87			179
Total liabilities		119,221			5,720

Commitments and Contingencies

Stockholders’ Equity
Common Stock, $0.01 par value per share; 250,000,000 authorized, 201,988,662 and 128,138,311 shares issued and outstanding at December 31, 2021 and 2020, respectively.		2,020			1,282
Additional paid-in capital		1,103,224			643,269
Accumulated other comprehensive loss		(614	)		–
Accumulated deficit		(557,375	)		(498,172	)
Total stockholders’ equity		547,255			146,379
Total liabilities and stockholders’ equity	$	666,476		$	152,099

Gevo, Inc.
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,
		2021			2020			2019
Revenue and cost of goods sold
Ethanol sales and related products, net	$	34		$	5		$	5,931
Hydrocarbon revenue		20			416			957
Other revenue		–			110			–
Total revenues		54			531			6,888

Cost of goods sold (exclusive of depreciation shown below)		2,791			866			7,836
Depreciation and amortization		1,104			1,094			1,591

Gross loss		(3,841	)		(1,429	)		(2,539	)

Operating Expenses
Research and development expense		2,570			1,507			271
Selling, general and administrative expense		7,546			3,010			3,155
Preliminary stage project costs		2,069			998			205
Loss on disposal of assets		–			587			23
Depreciation and amortization		452			56			57
Total operating expenses		12,637			6,158			3,711

Loss from operations		(16,478	)		(7,587	)		(6,250	)

Other income (expense)
Interest expense		(173	)		(535	)		(611	)
Interest and dividend income		183			26			32
(Loss) on modification of 2020 Notes		–			(6	)		–
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,373	)		–
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		–			(8,578	)		–
Other income (expense), net		(45	)		(1	)		10
Total other income (expense)		(35	)		(10,467	)		(569	)

Net loss	$	(16,513	)	$	(18,054	)	$	(6,819	)

Net loss per share – basic and diluted	$	(0.08	)	$	(0.15	)	$	(0.50	)

Weighted-average number of common shares outstanding – basic and diluted		201,892,596			120,017,120			13,659,944

Gevo, Inc.
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)

	Year Ended December 31,
		2021			2020			2019
Revenue and cost of goods sold
Ethanol sales and related products, net	$	50		$	3,809		$	22,115
Hydrocarbon revenue		483			1,501			2,338
Other revenue		178			226			34
Total revenues		711			5,536			24,487

Cost of goods sold (exclusive of depreciation shown below)		7,687			9,313			30,286
Depreciation and amortization		4,478			5,690			6,447

Gross loss		(11,454	)		(9,467	)		(12,246	)

Operating Expenses
Research and development expense		6,775			3,511			3,868
Selling, general and administrative expense		25,493			11,192			9,823
Preliminary stage project costs		10,581			1,698			205
Loss on disposal of assets		5,137			625			4
Depreciation and amortization		650			214			209
Restructuring expense		–			254			–
Total operating expenses		48,636			17,494			14,109

Loss from operations		(60,090	)		(26,961	)		(26,355	)

Other income (expense)
Gain on forgiveness of SBA Loans		641			–			–
Interest expense		(251	)		(2,094	)		(2,738	)
Interest and dividend income		571			102			33
(Loss) on modification of 2020 Notes		–			(732	)		–
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,916	)		–
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		–			(8,607	)		394
Other income (expense), net		(74	)		22			6
Total other income (expense)		887			(13,225	)		(2,305	)

Net loss	$	(59,203	)	$	(40,186	)	$	(28,660	)

Net loss per share – basic and diluted	$	(0.30	)	$	(0.71	)	$	(2.35	)

Weighted-average number of common shares outstanding – basic and diluted		195,794,606			56,881,586			12,177,906

Gevo, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,
		2021			2020			2019

Net Loss	$	(16,513	)	$	(18,054	)	$	(6,815	)
Other comprehensive income (loss):
Unrealized (loss) on available-for-sale securities, net of tax		(262	)		–			–
Adjustment for net (loss) realized and included in net income		(56	)		–			–
Total change in unrealized (loss) on marketable debt securities		(318	)		–			–

Comprehensive loss	$	(16,831	)	$	(18,054	)	$	(6,815	)


	Year Ended December 31,
		2021			2020			2020

Net Loss	$	(59,203	)	$	(40,186	)	$	(28,660	)
Other comprehensive income (loss):
Unrealized (loss) on available-for-sale securities, net of tax		(524	)		–			–
Adjustment for net (loss) realized and included in net income		(90	)		–			–
Total change in unrealized (loss) on marketable debt securities		(614	)		–			–

Comprehensive loss	$	(59,817	)	$	(40,186	)	$	(28,660	)

Gevo, Inc.
Condensed Consolidated Statements of Stockholders’ Equity Information
(Unaudited, in thousands, except share amounts)

	Common Stock			Paid-In Capital			Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity
	Shares	Amount		Paid-In Capital			Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity

Balance, December 31, 2018	8,640,583	$	86	$	518,027		$	–		$	(429,326	)	$	88,787

Issuance of common stock, net of issue costs	3,965,688		40		11,317			–			–			11,357
Non-cash stock-based compensation	–		–		1,221			–			–			1,221
Issuance of common stock under stock plans, net of taxes	1,476,961		15		(216	)		–			–			(201	)
Net loss	–		–		–			–			(28,660	)		(28,660	)

Balance, December 31, 2019	14,083,232		141		530,349			–			(457,986	)		72,504

Issuance of common stock and common stock warrants, net of issue costs	46,290,808		463		69,614			–			–			70,077
Issuance of common stock upon exercise of warrants	53,678,400		537		16,545			–			–			17,082
Issuance of common stock upon conversion of 2020/21 Notes	9,842,080		99		24,958			–			–			25,057
Issuance of common stock in exchange for services rendered	101,730		1		93			–			–			94
Non-cash stock-based compensation	–		–		2,101			–			–			2,101
Issuance of common stock under stock plans, net of taxes	4,142,061		41		(391	)		–			–			(350	)
Net loss	–		–		–			–			(40,186	)		(40,186	)

Balance December 31, 2020	128,138,311		1,282		643,269			–			(498,172	)		146,379

Issuance of common stock, net of issue costs	68,170,579		682		456,765			–			–			457,447
Issuance of common stock upon exercise of warrants	1,866,758		18		1,103			–			–			1,121
Non-cash stock-based compensation	–		–		7,700			–			–			7,700
Issuance of common stock under stock plans, net of taxes	3,813,014		38		(5,613	)		–			–			(5,575	)
Other comprehensive loss	–		–		–			(614	)		–			(614	)
Net loss	–		–		–			–			(59,203	)		(59,203	)

Balance, December 31, 2021	201,988,662	$	2,020	$	1,103,224		$	(614	)	$	(557,375	)	$	547,255

Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

	Three Months Ended December 31,
		2021			2020			2019
Operating Activities
Net loss	$	(16,513	)	$	(18,054	)	$	(6,815	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss from change in fair value of 2020/21 Notes embedded derivative liability		–			8,578			–
Loss on conversion of 2020/21 Notes to common stock		–			1,373			–
Loss on disposal of assets		–			587			23
Stock-based compensation		4,051			778			411
Depreciation and amortization		1,556			1,150			1,807
Non-cash lease expense		45			17			23
Non-cash interest expense		(28	)		155			257
Changes in operating assets and liabilities:
Accounts receivable		(271	)		(157	)		(757	)
Inventories		(409	)		295			(239	)
Prepaid expenses and other current assets, deposits and other assets		1,330			1,395			(1,801	)
Accounts payable, accrued expenses and long-term liabilities		(4,604	)		(874	)		1,050
Net cash used in operating activities		(14,843	)		(4,757	)		(6,041	)

Investing Activities
Acquisitions of property, plant and equipment		(28,707	)		(4,149	)		(210	)
Acquisition of patents		(170	)		–			–
Proceeds from sale marketable securities		45,242			–			–
Proceeds from sale of property, plant and equipment		–			–			13
Net cash used in investing activities		16,365			(4,149	)		(197	)

Financing Activities
Debt and equity offering costs		(36	)		(200	)		(54	)
Proceeds from issuance of common stock and common stock warrants		1,824			6,429			1,942
Proceeds from the exercise of warrants		2			435			–
Net settlement of common stock under stock plans		(1,904	)		(19	)		–
Payment of loans payable – other		(56	)		(20	)		(292	)
Payment of finance lease liabilities		(1,492	)		(2	)		–
Net cash provided by financing activities		(1,662	)		6,623			1,596

Net (decrease) in cash and cash equivalents and restricted cash		(140	)		(2,283	)		(4,642	)

Cash, cash equivalents and restricted cash
Beginning of period		136,173			80,621			20,944

End of period	$	136,033		$	78,338		$	16,302

Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

	Year to Date December 31,
		2021			2020			2019
Operating Activities
Net loss	$	(59,203	)	$	(40,186	)	$	(28,660	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss (gain) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability		–			8,607			(394	)
Loss on conversion of 2020/21 Notes to common stock		–			1,916			–
Loss on disposal of assets		5,137			625			4
(Gain) on forgiveness of SBA Loans		(641	)		–			–
Stock-based compensation		9,874			2,125			1,349
Depreciation and amortization		5,128			5,904			6,656
Non-cash lease expense		52			62			48
Non-cash interest expense		37			761			1,346
Changes in operating assets and liabilities:
Accounts receivable		(257	)		608			(609	)
Inventories		(259	)		945			(35	)
Prepaid expenses and other current assets, deposits and other assets		(3,133	)		782			(1,824	)
Accounts payable, accrued expenses and long-term liabilities		(271	)		(1,487	)		1,280
Net cash used in operating activities		(43,536	)		(19,338	)		(20,839	)

Investing Activities
Acquisitions of property, plant and equipment		(59,662	)		(5,905	)		(5,989	)
Acquisition of patents		(9,170	)		–			–
Proceeds from sale marketable securities		79,574			–			–
Purchase of marketable securities		(422,362	)		–			–
Proceeds from sale of property, plant and equipment		–			–			32
Investment in Juhl		–			–			(1,500	)
Net cash used in investing activities		(411620	)		(5,905	)		(7,457	)

Financing Activities
Proceeds from issuance of 2021 Bonds		68,995			–			–
Debt and equity offering costs		(34,955	)		(6,370	)		(232	)
Proceeds from issuance of common stock and common stock warrants		489,373			76,414			11,589
Proceeds from the exercise of warrants		1,121			17,082			–
Net settlement of common stock under stock plans		(7,041	)		(350	)		(201	)
Payment of loans payable – other		(154	)		(501	)		(292	)
Payment of finance lease liabilities		(4,488	)		(2	)		–
Proceeds from SBA Loans		–			1,006			–
Net cash provided by financing activities		512,851			87,279			10,864

Net increase (decrease) in cash and cash equivalents and restricted cash		57,695			62,036			(17,432	)

Cash, cash equivalents and restricted cash
Beginning of period		78,338			16,302			33,734

End of period	$	136,033		$	78,338		$	16,302

Gevo, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,
Non-GAAP Cash EBITDA:		2021			2020			2019

Loss from operations	$	(16,478	)	$	(7,587	)	$	(6,250	)
Stock-based compensation		4,051			778			411
Depreciation and amortization		1,556			1,150			1,807
Non-GAAP cash EBITDA	$	(10,871	)	$	(5,659	)	$	(4,032	)

Non-GAAP Adjusted Net Loss:
Net loss	$	(16,513	)	$	(18,054	)	$	(6,819	)
Adjustments:
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,373	)		–
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		–			(8,578	)		–
Total adjustments		–			(9,951	)		–
Non-GAAP Net Income (Loss)	$	(16,513	)	$	(8,103	)	$	(6,819	)
Non-GAAP adjusted net loss per share – basic and diluted	$	(0.08	)	$	(0.07	)	$	(0.50	)
Weighted-average number of common shares outstanding – basic and diluted		201,892,596			120,017,120			13,659,944

Non-GAAP Cash EBITDA:	Years Ended December 31,
		2021			2020			2019

Loss from operations	$	(60,090	)	$	(26,961	)	$	(26,355	)
Stock-based compensation		9,874			2,125			1,349
Depreciation and amortization		5,128			5,904			6,656
Non-GAAP cash EBITDA	$	(45,088	)	$	(18,932	)	$	(18,350	)

Non-GAAP Adjusted Net Loss:
Net loss
Net loss	$	(59,203	)	$	(40,186	)	$	(28,660	)
Adjustments:
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,916	)		–
(Loss) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability		–			(8,607	)		394
Total adjustments		–			(10,523	)		394
Non-GAAP Net Income (Loss)	$	(59,203	)	$	(29,663	)	$	(29,054	)
Non-GAAP adjusted net loss per share – basic and diluted	$	(0.30	)	$	(0.52	)	$	(2.39	)
Weighted-average number of common shares outstanding – basic and diluted		195,794,606			56,881,586			12,177,906

Investor and Media Contact
Heather Manuel
+1 720-418-0085
IR@gevo.com

Retail Traders and One Top Hedge Fund Have Something in Common

Posted on February 25, 2022 by Admin



  Image Credit: Slices of Light (Flickr)

Institutional Shorts of Meme Stocks Reduced While Top Hedge Fund Adds Long Positions

It’s the premise of many movies; two unlikely partners fighting for a common goal.

In their quarterly SEC filing, it was discovered that Renaissance Technologies (RenTech), considered one of the best-performing giant hedge funds in history, added substantially to its AMC Entertainment (AMC) position and GameStop (GME) holdings. Meanwhile, hedge fund Citadel LLC., is further reducing its shares in a short fund managed by Melvin Capital that was near collapse early last year after suffering substantial difficulties with short positions including AMC and GME.

According to The Wall Street Journal, Citadel LLC is further reducing its once $2 billion investment in Melvin Capital Management’s Short Fund. During late January, Citadel asked to redeem half the firm’s remaining position in Melvin. It had previously halved the investment late last year after Melvin produced double-digit losses for the second January in a row. The Journal reported the recent redemption request would be paid out at the end of March.

Shares in GameStop and AMC were severely underperforming the S&P 500 year-to-date 2022. As of Thursday (February 24), the S&P 500 averaged -10.34%, while GME had a negative return of -18.49% and AMC dropped more substantially with a -33.33% return on the year.

This may have turned around this week. As the market traded off in response to Russia invading Ukraine, reporting by RenTech showed they are aggressively adding to their positions, this helped push the two stocks up. During the fourth quarter they nearly doubled their holding of AMC to 4.7 million shares and the fund has also gotten back involved with Gamestop with a 2600 share position at year-end.

The recent advance of AMC and Gamestop creates curious allies. RenTech is a huge hedge fund. It was founded by Jim Simons, a former NSA codebreaker and MIT math professor. The quantitative fund relies on algorithms to decide many of its trades. The retail investing “Apes” said to derive their decisions from social media and stock memes owned 80% of AMC by November 2021. The social media-driven positions of the retail accounts and the Renaissance Technologies PhDs developing sophisticated models make for peculiar allies. But together, they are causing the likes of Citadel to continue its retreat. The more those that are short, give up ground, the more likely the stocks will trade up. For now, the PhDs and the “Apes” seem to control the “battlefield.” The proof is in the price movement of AMC and GME.

Paul Hoffman

Managing Editor, Channelchek

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Reddit Era Investors May Want to HODL this New Book

Sources

https://markets.businessinsider.com/news/stocks/jim-simons-renaissance-technologies-rentech-amc-entertainment-gamestop-tesla-stock-2022-2

https://www.marketwatch.com/story/meme-stocks-soar-on-bad-news-for-melvin-capital-and-russias-invasion-of-ukraine-11645744516

https://www.cnbc.com/video/2021/10/29/how-the-amc-apes-are-taking-on-wall-street.html

www.koyfin

https://www.wsj.com/articles/citadel-is-further-paring-back-2-billion-melvin-investment-11645710666?mod=rss_markets_main–

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Sierra Metals Announces the Appointment of Dawn Whittaker to Its Board of Directors

Posted on February 25, 2022 by Admin

Sierra Metals Announces the Appointment of Dawn Whittaker to Its Board of Directors

Research, News, and Market Data on Sierra Metals

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or ““Company”) announces the appointment of Ms. Dawn Whittaker to its Board of Directors effective immediately.

Ms. Whittaker is a legal professional with over 30 years of experience in corporate law. She has provided legal counsel in domestic and international mergers and acquisitions and corporate finance transactions, including take-overs, joint ventures and strategic alliances, and in commercial transactions, corporate governance, directors’ and officers’ liabilities and shareholder rights. She retired as a Senior Partner from Norton Rose Fulbright in June of 2018 where she served as the Canadian Head of the firm’s mining practice.

Having served on numerous boards and committees throughout her career, Ms. Whittaker has a wealth of experience with both public and private companies and as a member of governance, audit, compensation and strategic review committees. She is currently Chair of the Board of Directors and a member of the Audit Committee for Triple Flag Precious Metals Corp. and previously served on the Board of Directors for Detour Gold and Kirkland Lake Gold. In addition, she is currently the Vice President of the Board of Directors for the Badminton and Racquet Club of Toronto where she is a member. She has also served on the Board of the Canadian Mental Health Association and was on the Nominating and Governance Committee of the Ontario Division of the Canadian Cancer Society.

Jose Vizquerra, Chairman of Sierra Metals, commented: “On behalf of the Board and Management, I would like to welcome Dawn to the Sierra Metals Board of Directors. Dawn’s expertise in legal and governance matters complements the skills and experiences of our Board, making her a valuable addition as an independent director. We believe Dawn will provide important perspective and will help execute the Company’s corporate strategic goals and deliver maximum value for shareholders.”

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its 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 Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

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

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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 (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2021 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. 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 the Company’s annual information form dated March 18, 2021 for its fiscal year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is 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 such 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.

Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

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

Source: Sierra Metals Inc.

Release – Sierra Metals Announces the Appointment of Dawn Whittaker to Its Board of Directors

Posted on February 25, 2022 by Admin

Sierra Metals Announces the Appointment of Dawn Whittaker to Its Board of Directors

Research, News, and Market Data on Sierra Metals

About Sierra Metals

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange 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

Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

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

Source: Sierra Metals Inc.

Trouble Ahead for Microchips, Energy, Food, Metals, and Transportation

Posted on February 25, 2022 by Admin



  Image Credit: Diverse Stock Photos (Flickr)

Five Essential Commodities that Will be Hit by War in Ukraine

The war in Ukraine is threatening further disruption to already stretched supply chains. Ukraine and Russia may only account for a small proportion of the imports of major manufacturing nations like Germany and the US, but they are essential suppliers of raw materials and energy for many crucial supply chains.

Though the economic consequences of a war that threatens the lives and livelihoods of many Ukrainians will always be secondary to the looming humanitarian crisis, here are five areas likely to see trouble ahead:

Energy

Many European countries are heavily dependent on Russian energy, particularly gas, through several vital pipelines, and this may have colored their approach to the crisis. Russian gas reliance has been suggested as the reason Europe has been reluctant to remove Russia from the international payments system SWIFT, for example, though it’s worth pointing out that the Germans have indefinitely suspended new Baltic gas pipeline Nord Stream 2.

While a complete suspension of Russian gas flows is unlikely at the moment, even small disruptions will have a significant impact. Global gas reserves are low due to the pandemic and energy prices are already rising sharply, impacting consumers and industry.

With gas an essential input to many supply chains, disruptions to such a fundamental supply will have widespread economic consequences. When gas prices first surged in autumn of 2021, for instance, fertilizer plants in the UK shut down as high energy cost made production untenable. This led to shortages of carbon dioxide, which is essential for everything from medical procedures to keeping food fresh. Such consequences are likely to magnify with rising oil and gas prices.

Food

Global food prices already rose sharply during 2021 due to everything from higher energy prices to environmental awareness. Food producers are likely to come under further pressure as prices of key inputs rise now.

Russia and Ukraine together account for more than a quarter of global wheat exports, while Ukraine alone makes up almost half of the exports of sunflower oil. Both are key commodities used in many food products. If harvesting and processing is hindered in a war-torn Ukraine, or exports are blocked, importers will struggle to replace supplies.

Some countries are particularly dependent on grain from Russia and Ukraine. For example, Turkey and Egypt rely on them for almost 70% of their wheat imports. Ukraine is also the top supplier of corn to China.

Wheat prices (US$/bushel)

Stepping up production in other parts of the world could help to reduce the impact of interruptions to food supplies. However, Russia is also a main supplier of key ingredients for fertilizers, so trade sanctions could affect production elsewhere. Meanwhile, we can also expect diversions to trade flows: China has already said it will begin importing Russian wheat, for instance.

Transport

With global transport already severely disrupted in the aftermath of the pandemic, a war could create further problems. The transport modes likely to be affected are ocean shipping and rail freight.

Since 2011, regular rail freight links between China and Europe have been established. Recently, the 50,000th train made the journey. While rail carries only a small proportion of the total freight between Asia and Europe, it has played a vital role during recent transport disruptions and is growing steadily.

Trains are now being rerouted away from Ukraine, and rail freight experts are currently optimistic that disruptions will be kept to a minimum. However, countries like Lithuania are expecting to see their rail traffic severely affected by sanctions against Russia.

Even prior to the invasion, ship owners started to avoid Black Sea shipping routes, and insurance providers demanded notification of any such voyages. Although container shipping in the Black Sea is a relatively niche market on the global scale, one of the largest container terminals is Odessa. If this is cut off by Russian forces, the effects on Ukrainian imports and exports could be considerable, with potentially drastic humanitarian consequences.

Rising oil prices due to the war are a worry to shipping more generally. Freight rates are already extremely high and could rise even further.

There is also a worry that cyber-attacks could target global supply chains. As trade is highly dependent on online information exchange, this could have far-reaching consequences if key shipping lines or infrastructure are targeted. The ripple effects from a supply chain cyber-attack can be enormous.

Metals

Russia and Ukraine lead the global production of metals such as nickel, copper and iron. They are also largely involved in the export and manufacture of other essential raw materials like neon, palladium and platinum.

Fears of sanctions on Russia have increased the price of these metals. With palladium, for example, the current trading price of almost US$2,700 per ounce, up over 80% since mid-December. Palladium is used for everything from automotive exhaust systems and mobile phones to dental fillings. The prices of nickel and copper, which are used in manufacturing and building respectively, have also also been soaring.

The aerospace industries of the US, Europe and Britain also depend on supplies of titanium from Russia. Boeing and Airbus have already approached alternative suppliers. However, the market share and product base of leading Russian supplier VSMPO-AVISMA make it impossible to fully diversify away from it, with some of the aerospace manufacturers having signed long-term supply contracts up to 2028.

For all these materials, we can expect disruptions and potential shortages, threatening to lead to increased prices for many products and services.

Microchips

Shortages of microchips were a major problem throughout 2021. Some analysts had been predicting that this problem would ease in 2022, but recent developments might dampen such optimism.

As part of the sanctions towards Russia, the US has been threatening to cut off Russia’s supply of microchips. But this rings hollow when Russia and Ukraine are such key exporters of neon, palladium and platinum, all of which are critical for microchip production.

About 90% of neon, which is used for chip lithography, originates from Russia, and 60% of this is purified by one company in Odessa. Alternative sources will require long-term investments prior to being able to supply the global market.

Chip manufacturers currently hold an excess of two to four weeks’ additional inventory, but any prolonged supply disruption caused by military action in Ukraine will severely impact the production of semiconductors and products dependent on them, including cars.

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 thoughts of Sarah Schiffling, Senior Lecturer in Supply Chain Management, Liverpool John Moores University and Nikolaos Valantasis Kanellos, Lecturer in Logistics, Technological University Dublin.

Suggested Reading

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Genco Shipping (GNK) – Results Slightly Short of Estimates But Positive Outlook Intact

Posted on February 25, 2022 by Admin

Friday, February 25, 2022

Genco Shipping (GNK)
Results Slightly Short of Estimates But Positive Outlook Intact

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

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

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

Robust 4Q2021 Results and Dividend Slightly Short of Estimates Due to Higher Costs. Reported EBITDA of $102.3 million was short of our EBITDA estimate of $109.2 million due to lower TCE rates and higher operating expenses. TCE rates of $35.2k/day were $800 below our estimate of $36.0k/day. Based on total ownership days and versus our estimates, operating costs of $5,766k/day were $666 higher and G&A expenses of $1,755/day were $417 higher. As a result, the 4Q2021 dividend of $0.67/share was below our estimate of $0.80/share.

Fine tuning 2022 EBITDA and dividend estimates. Forward cover of 87% of 4Q2021 days booked at ~$24.2k/day creates a solid base and the quarter should be solid even though the BCI and BSI weakened over the past quarter before rebounding ahead of Chinese New Year. Our 2022 EBITDA estimate increases to $261.5 million from $249.4 million based on TCE rates of $24.5k/day, but our 2022 dividend estimate …

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.

Release – Gevo Reports Fourth Quarter 2021 Financial Results

Posted on February 25, 2022 by Admin

Gevo Reports Fourth Quarter 2021 Financial Results

Research, News, and Market Data on Gevo

ENGLEWOOD, Colo., Feb. 24, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the fourth quarter of 2021 and summarized recent corporate highlights.

Recent Corporate Highlights

On December 7, 2021, Kolmar Americas Inc and Gevo entered into a financeable fuel supply agreement for 45 million gallons per year of renewable, energy-dense liquid hydrocarbons.
On November 16, 2021, Gevo signed a memorandum of understanding (MoU) with Sweetwater Energy, Inc., regarding the use of sustainably sourced agricultural residues and woody biomass as a feedstock for producing cellulosic alcohols and energy-dense renewable liquid hydrocarbons.
On October 25, 2021, ADM, a global leader in nutrition and agricultural origination and processing, and Gevo signed a MoU to support the production of sustainable aviation fuel and other low carbon-footprint hydrocarbon fuels.
On October 12, 2021, Gevo and Axens North America, Inc. (“Axens”) entered into an agreement that establishes a strategic alliance aimed at accelerating the commercialization of sustainable ethanol-to-jet projects in the United States.
In December 2021, Argonne National Laboratory (“ANL”), a U.S. Department of Energy multidisciplinary science and engineering research center, reported the preliminary results of its life cycle analysis of Gevo’s planned Net-Zero plant to Gevo. ANL’s preliminary findings were consistent with Gevo’s findings that when renewable energy is used to power production processes, and the corn is produced with climate smart ag practices that drive the carbon intensity score of corn down, then the sustainable aviation fuel (“SAF”) that would be produced could achieve net-zero life-cycle emissions when measured using ANL’s GREET Model. When carbon capture sequestration technology is added as a de-carbonization tool, the life-cycle emissions should be negative according to the model. ANL is currently working through the scientific peer reviewed publication process.
In January 2022, Gevo’s renewable natural gas (“RNG”) facilities in NW Iowa began to start-up operations. The start-up process is expected to take a few months and reach a steady state operation in the second quarter of 2022 which will allow time for Gevo to apply for credits under the federal Renewable Fuel Standard Program (“RFS”) and the Low Carbon Fuel Standard (“LCFS”) in California, including verification of carbon intensity levels and other requirements. Depending on the timing of the qualification and approval processes for obtaining credits under RFS and LCFS, Gevo expects to generate biogas revenues starting in the second quarter of 2022 and sales of credits under RFS and LCFS in the second half of 2022. Gevo expects that the RNG Project EBITDA¹ should generate approximately $16-22 million per year by 2023 depending on a variety of assumptions, including the value of credits under RFS and LCFS.

2021 Fourth Quarter Financial Highlights

Ended the quarter with cash, cash equivalents, restricted cash and marketable securities of $475.8 million compared to $522.4 as of the end Q3 2021
Revenue of $0.1 million for the quarter compared to $0.5 million in Q4 2020
Loss from operations of ($16.5) million for the quarter compared to ($7.6) million in Q4 2020
Non-GAAP cash EBITDA loss² of ($10.9) million for the quarter compared to ($5.7) million in Q4 2020
Net loss per share of ($0.08) for the quarter compared to ($0.15) in Q4 2020
Non-GAAP adjusted net loss per share³ of ($0.08) for the quarter compared to ($0.07) in Q4 2020

Net-Zero 1 Update

Gevo believes that there are several advantages of using ethanol fermentation technology at Net-Zero 1, including the following:

Lower capital costs per gallon of hydrocarbon produced
Increased production capacity of renewable hydrocarbons from 45MGPY to 60MGPY
Process guarantees from Axens on the conversion of ethanol into SAF
Lower technology and execution risk which are expected to make debt financing more readily available
Leverages previous Net-Zero 1 engineering and design work from 2021
The hydrocarbon plant design for Net-Zero 1 can be used at any ethanol plant that meets certain sustainability and carbon intensity score requirements which should enable Gevo to grow more rapidly to meet demand

Dr. Gruber continued, “Over the last twelve months, we’ve hired the leaders for our Net-Zero 1 Project. We are focused on engineering Net-Zero 1 so that we can get it built and operating.”

Fourth Quarter 2021 Financial Results

Revenue for the three months ended December 31, 2021 was $0.1 million compared with $0.5 million in the same period in 2020.

Gross loss was ($3.8) million for the three months ended December 31, 2021, compared with a ($1.4) million gross loss in the same period in 2020.

Loss from operations in the three months ended December 31, 2021 was ($16.5) million, compared with a ($7.6) million loss from operations in the same period in 2020.

Non-GAAP cash EBITDA loss⁵ in the three months ended December 31, 2021 was ($10.9) million, compared with a ($5.7) million non-GAAP cash EBITDA loss in the same period in 2020.

Cash, cash equivalents, restricted cash and marketable securities at December 31, 2021 totaled $475.8 million compared to $522.4 as of the end Q3 2021.

Webcast and Conference Call Information

About Gevo

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Non-GAAP Financial Information

Gevo, Inc.
Condensed Consolidated Balance Sheets Information
(Unaudited, in thousands, except share and per share amounts)

	December 31,			December 31,
		2021			2020
Assets
Current assets
Cash and cash equivalents	$	40,833		$	78,338
Marketable securities (current)		275,340			–
Restricted cash (current)		25,032			–
Accounts receivable, net		978			527
Inventories		2,751			2,491
Prepaid expenses and other current assets		6,857			1,914
Total current assets		351,791			83,270

Property, plant and equipment, net		139,141			66,408
Long-term marketable securities		64,396			–
Long-term restricted cash		70,168			–
Operating right-of-use assets		2,414			133
Finance right-of-use assets		27,297			176
Intangible assets, net		8,938			114
Deposits and other assets		2,331			1,998
Total assets	$	666,476		$	152,099

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	28,288		$	3,943
Operating lease liabilities (current)		772			172
Financing lease liabilities (current)		3,413			10
Loans payable – other (current)		158			807
Total current liabilities		32,631			4,932

2021 Bonds payable (long-term)		66,486			–
Loans payable – other (long-term)		318			447
Operating lease liabilities (long-term)		1,902			–
Finance lease liabilities (long-term)		17,797			162
Other long-term liabilities		87			179
Total liabilities		119,221			5,720

Commitments and Contingencies

Stockholders’ Equity
Common Stock, $0.01 par value per share; 250,000,000 authorized, 201,988,662 and 128,138,311 shares issued and outstanding at December 31, 2021 and 2020, respectively.		2,020			1,282
Additional paid-in capital		1,103,224			643,269
Accumulated other comprehensive loss		(614	)		–
Accumulated deficit		(557,375	)		(498,172	)
Total stockholders’ equity		547,255			146,379
Total liabilities and stockholders’ equity	$	666,476		$	152,099

Gevo, Inc.
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,
		2021			2020			2019
Revenue and cost of goods sold
Ethanol sales and related products, net	$	34		$	5		$	5,931
Hydrocarbon revenue		20			416			957
Other revenue		–			110			–
Total revenues		54			531			6,888

Cost of goods sold (exclusive of depreciation shown below)		2,791			866			7,836
Depreciation and amortization		1,104			1,094			1,591

Gross loss		(3,841	)		(1,429	)		(2,539	)

Operating Expenses
Research and development expense		2,570			1,507			271
Selling, general and administrative expense		7,546			3,010			3,155
Preliminary stage project costs		2,069			998			205
Loss on disposal of assets		–			587			23
Depreciation and amortization		452			56			57
Total operating expenses		12,637			6,158			3,711

Loss from operations		(16,478	)		(7,587	)		(6,250	)

Other income (expense)
Interest expense		(173	)		(535	)		(611	)
Interest and dividend income		183			26			32
(Loss) on modification of 2020 Notes		–			(6	)		–
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,373	)		–
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		–			(8,578	)		–
Other income (expense), net		(45	)		(1	)		10
Total other income (expense)		(35	)		(10,467	)		(569	)

Net loss	$	(16,513	)	$	(18,054	)	$	(6,819	)

Net loss per share – basic and diluted	$	(0.08	)	$	(0.15	)	$	(0.50	)

Weighted-average number of common shares outstanding – basic and diluted		201,892,596			120,017,120			13,659,944

Gevo, Inc.
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)

	Year Ended December 31,
		2021			2020			2019
Revenue and cost of goods sold
Ethanol sales and related products, net	$	50		$	3,809		$	22,115
Hydrocarbon revenue		483			1,501			2,338
Other revenue		178			226			34
Total revenues		711			5,536			24,487

Cost of goods sold (exclusive of depreciation shown below)		7,687			9,313			30,286
Depreciation and amortization		4,478			5,690			6,447

Gross loss		(11,454	)		(9,467	)		(12,246	)

Operating Expenses
Research and development expense		6,775			3,511			3,868
Selling, general and administrative expense		25,493			11,192			9,823
Preliminary stage project costs		10,581			1,698			205
Loss on disposal of assets		5,137			625			4
Depreciation and amortization		650			214			209
Restructuring expense		–			254			–
Total operating expenses		48,636			17,494			14,109

Loss from operations		(60,090	)		(26,961	)		(26,355	)

Other income (expense)
Gain on forgiveness of SBA Loans		641			–			–
Interest expense		(251	)		(2,094	)		(2,738	)
Interest and dividend income		571			102			33
(Loss) on modification of 2020 Notes		–			(732	)		–
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,916	)		–
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		–			(8,607	)		394
Other income (expense), net		(74	)		22			6
Total other income (expense)		887			(13,225	)		(2,305	)

Net loss	$	(59,203	)	$	(40,186	)	$	(28,660	)

Net loss per share – basic and diluted	$	(0.30	)	$	(0.71	)	$	(2.35	)

Weighted-average number of common shares outstanding – basic and diluted		195,794,606			56,881,586			12,177,906

Gevo, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,
		2021			2020			2019

Net Loss	$	(16,513	)	$	(18,054	)	$	(6,815	)
Other comprehensive income (loss):
Unrealized (loss) on available-for-sale securities, net of tax		(262	)		–			–
Adjustment for net (loss) realized and included in net income		(56	)		–			–
Total change in unrealized (loss) on marketable debt securities		(318	)		–			–

Comprehensive loss	$	(16,831	)	$	(18,054	)	$	(6,815	)


	Year Ended December 31,
		2021			2020			2020

Net Loss	$	(59,203	)	$	(40,186	)	$	(28,660	)
Other comprehensive income (loss):
Unrealized (loss) on available-for-sale securities, net of tax		(524	)		–			–
Adjustment for net (loss) realized and included in net income		(90	)		–			–
Total change in unrealized (loss) on marketable debt securities		(614	)		–			–

Comprehensive loss	$	(59,817	)	$	(40,186	)	$	(28,660	)

Gevo, Inc.
Condensed Consolidated Statements of Stockholders’ Equity Information
(Unaudited, in thousands, except share amounts)

	Common Stock			Paid-In Capital			Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity
	Shares	Amount		Paid-In Capital			Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity

Balance, December 31, 2018	8,640,583	$	86	$	518,027		$	–		$	(429,326	)	$	88,787

Issuance of common stock, net of issue costs	3,965,688		40		11,317			–			–			11,357
Non-cash stock-based compensation	–		–		1,221			–			–			1,221
Issuance of common stock under stock plans, net of taxes	1,476,961		15		(216	)		–			–			(201	)
Net loss	–		–		–			–			(28,660	)		(28,660	)

Balance, December 31, 2019	14,083,232		141		530,349			–			(457,986	)		72,504

Issuance of common stock and common stock warrants, net of issue costs	46,290,808		463		69,614			–			–			70,077
Issuance of common stock upon exercise of warrants	53,678,400		537		16,545			–			–			17,082
Issuance of common stock upon conversion of 2020/21 Notes	9,842,080		99		24,958			–			–			25,057
Issuance of common stock in exchange for services rendered	101,730		1		93			–			–			94
Non-cash stock-based compensation	–		–		2,101			–			–			2,101
Issuance of common stock under stock plans, net of taxes	4,142,061		41		(391	)		–			–			(350	)
Net loss	–		–		–			–			(40,186	)		(40,186	)

Balance December 31, 2020	128,138,311		1,282		643,269			–			(498,172	)		146,379

Issuance of common stock, net of issue costs	68,170,579		682		456,765			–			–			457,447
Issuance of common stock upon exercise of warrants	1,866,758		18		1,103			–			–			1,121
Non-cash stock-based compensation	–		–		7,700			–			–			7,700
Issuance of common stock under stock plans, net of taxes	3,813,014		38		(5,613	)		–			–			(5,575	)
Other comprehensive loss	–		–		–			(614	)		–			(614	)
Net loss	–		–		–			–			(59,203	)		(59,203	)

Balance, December 31, 2021	201,988,662	$	2,020	$	1,103,224		$	(614	)	$	(557,375	)	$	547,255

Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

	Three Months Ended December 31,
		2021			2020			2019
Operating Activities
Net loss	$	(16,513	)	$	(18,054	)	$	(6,815	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss from change in fair value of 2020/21 Notes embedded derivative liability		–			8,578			–
Loss on conversion of 2020/21 Notes to common stock		–			1,373			–
Loss on disposal of assets		–			587			23
Stock-based compensation		4,051			778			411
Depreciation and amortization		1,556			1,150			1,807
Non-cash lease expense		45			17			23
Non-cash interest expense		(28	)		155			257
Changes in operating assets and liabilities:
Accounts receivable		(271	)		(157	)		(757	)
Inventories		(409	)		295			(239	)
Prepaid expenses and other current assets, deposits and other assets		1,330			1,395			(1,801	)
Accounts payable, accrued expenses and long-term liabilities		(4,604	)		(874	)		1,050
Net cash used in operating activities		(14,843	)		(4,757	)		(6,041	)

Investing Activities
Acquisitions of property, plant and equipment		(28,707	)		(4,149	)		(210	)
Acquisition of patents		(170	)		–			–
Proceeds from sale marketable securities		45,242			–			–
Proceeds from sale of property, plant and equipment		–			–			13
Net cash used in investing activities		16,365			(4,149	)		(197	)

Financing Activities
Debt and equity offering costs		(36	)		(200	)		(54	)
Proceeds from issuance of common stock and common stock warrants		1,824			6,429			1,942
Proceeds from the exercise of warrants		2			435			–
Net settlement of common stock under stock plans		(1,904	)		(19	)		–
Payment of loans payable – other		(56	)		(20	)		(292	)
Payment of finance lease liabilities		(1,492	)		(2	)		–
Net cash provided by financing activities		(1,662	)		6,623			1,596

Net (decrease) in cash and cash equivalents and restricted cash		(140	)		(2,283	)		(4,642	)

Cash, cash equivalents and restricted cash
Beginning of period		136,173			80,621			20,944

End of period	$	136,033		$	78,338		$	16,302

Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

	Year to Date December 31,
		2021			2020			2019
Operating Activities
Net loss	$	(59,203	)	$	(40,186	)	$	(28,660	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss (gain) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability		–			8,607			(394	)
Loss on conversion of 2020/21 Notes to common stock		–			1,916			–
Loss on disposal of assets		5,137			625			4
(Gain) on forgiveness of SBA Loans		(641	)		–			–
Stock-based compensation		9,874			2,125			1,349
Depreciation and amortization		5,128			5,904			6,656
Non-cash lease expense		52			62			48
Non-cash interest expense		37			761			1,346
Changes in operating assets and liabilities:
Accounts receivable		(257	)		608			(609	)
Inventories		(259	)		945			(35	)
Prepaid expenses and other current assets, deposits and other assets		(3,133	)		782			(1,824	)
Accounts payable, accrued expenses and long-term liabilities		(271	)		(1,487	)		1,280
Net cash used in operating activities		(43,536	)		(19,338	)		(20,839	)

Investing Activities
Acquisitions of property, plant and equipment		(59,662	)		(5,905	)		(5,989	)
Acquisition of patents		(9,170	)		–			–
Proceeds from sale marketable securities		79,574			–			–
Purchase of marketable securities		(422,362	)		–			–
Proceeds from sale of property, plant and equipment		–			–			32
Investment in Juhl		–			–			(1,500	)
Net cash used in investing activities		(411620	)		(5,905	)		(7,457	)

Financing Activities
Proceeds from issuance of 2021 Bonds		68,995			–			–
Debt and equity offering costs		(34,955	)		(6,370	)		(232	)
Proceeds from issuance of common stock and common stock warrants		489,373			76,414			11,589
Proceeds from the exercise of warrants		1,121			17,082			–
Net settlement of common stock under stock plans		(7,041	)		(350	)		(201	)
Payment of loans payable – other		(154	)		(501	)		(292	)
Payment of finance lease liabilities		(4,488	)		(2	)		–
Proceeds from SBA Loans		–			1,006			–
Net cash provided by financing activities		512,851			87,279			10,864

Net increase (decrease) in cash and cash equivalents and restricted cash		57,695			62,036			(17,432	)

Cash, cash equivalents and restricted cash
Beginning of period		78,338			16,302			33,734

End of period	$	136,033		$	78,338		$	16,302

Gevo, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,
Non-GAAP Cash EBITDA:		2021			2020			2019

Loss from operations	$	(16,478	)	$	(7,587	)	$	(6,250	)
Stock-based compensation		4,051			778			411
Depreciation and amortization		1,556			1,150			1,807
Non-GAAP cash EBITDA	$	(10,871	)	$	(5,659	)	$	(4,032	)

Non-GAAP Adjusted Net Loss:
Net loss	$	(16,513	)	$	(18,054	)	$	(6,819	)
Adjustments:
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,373	)		–
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability		–			(8,578	)		–
Total adjustments		–			(9,951	)		–
Non-GAAP Net Income (Loss)	$	(16,513	)	$	(8,103	)	$	(6,819	)
Non-GAAP adjusted net loss per share – basic and diluted	$	(0.08	)	$	(0.07	)	$	(0.50	)
Weighted-average number of common shares outstanding – basic and diluted		201,892,596			120,017,120			13,659,944

Non-GAAP Cash EBITDA:	Years Ended December 31,
		2021			2020			2019

Loss from operations	$	(60,090	)	$	(26,961	)	$	(26,355	)
Stock-based compensation		9,874			2,125			1,349
Depreciation and amortization		5,128			5,904			6,656
Non-GAAP cash EBITDA	$	(45,088	)	$	(18,932	)	$	(18,350	)

Non-GAAP Adjusted Net Loss:
Net loss
Net loss	$	(59,203	)	$	(40,186	)	$	(28,660	)
Adjustments:
(Loss) on conversion of 2020/21 Notes to common stock		–			(1,916	)		–
(Loss) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability		–			(8,607	)		394
Total adjustments		–			(10,523	)		394
Non-GAAP Net Income (Loss)	$	(59,203	)	$	(29,663	)	$	(29,054	)
Non-GAAP adjusted net loss per share – basic and diluted	$	(0.30	)	$	(0.52	)	$	(2.39	)
Weighted-average number of common shares outstanding – basic and diluted		195,794,606			56,881,586			12,177,906

Investor and Media Contact
Heather Manuel
+1 720-418-0085
IR@gevo.com

Release – Gray Reports Solid 2021 Performance and is Poised for a Strong 2022

Posted on February 25, 2022 by Admin

Gray Reports Solid 2021 Performance and is Poised for a Strong 2022

Research, News, and Market Data on Gray Television

Summary of Operating Results

As Reported Basis (the respective 2021 periods reflect the “off-year” of the two year political advertising cycle):

For the fourth quarter of 2021:

Total revenue was $721 million, a decrease of 9% from the fourth quarter of 2020, primarily due to the cyclical decline in political advertising revenue.
Net income attributable to common stockholders was $16 million, or $0.17 per fully diluted share, a decrease of 92% from the fourth quarter of 2020. Excluding Transaction Related Expenses and non-cash stock compensation totaling $59 million, our net income attributable to common stockholders would have been $60 million.
Broadcast Cash Flow was $258 million, a decrease of 39% from the fourth quarter of 2020.
Adjusted EBITDA was $224 million, a decrease of 45% from the fourth quarter of 2020.

For the full year 2021:

Revenue was $2.4 billion, an increase of 1% from 2020, marking our highest ever annual revenue.
Net income attributable to common stockholders was $38 million, a decrease of 89% from 2020. Excluding Transaction Related Expenses and non-cash stock compensation totaling $95 million, our net income attributable to common stockholders would have been $109 million.
Broadcast Cash Flow was $813 million, a decrease of 19% from 2020.
Adjusted EBITDA was $739 million, a decrease of 21% from 2020.

Combined Historical Basis (the respective 2021 periods reflect the “off-year” of the two year political advertising cycle):

For the fourth quarter of 2021:

Revenue was $857 million, a decrease of 24% from the fourth quarter of 2020. Total Core Revenue increased by 11% from the fourth quarter of 2020.
Broadcast Cash Flow was $311 million, a decrease of 50% from the fourth quarter of 2020.

For the full year 2021:

Revenue was $3.2 billion, a decrease of 6% from 2020. Total Core Revenue increased by 18% from 2020.
Broadcast Cash Flow was $1.1 billion, a decrease of 24% from 2020.

Other Key Metrics

As of December 31, 2021, our Total Leverage Ratio, Net of all Cash, was 5.47 times on a trailing eight-quarter basis, netting our total cash balance of $189 million and giving effect to all Transaction Related Expenses.
During the fourth quarter of 2021, we repurchased 1,501,088 shares of our common stock at an average price of $19.98 per share, including commissions, for a total cost of approximately $30 million. We have not repurchased any shares since the close of the fourth quarter. Currently, we have 87,742,758 common shares and 7,560,937 Class A common shares outstanding and $174 million remaining under our share repurchase authorization.
Throughout 2021 and 2020, we incurred Transaction Related Expenses on an As Reported Basis that included but were not limited to legal and professional fees, severance and incentive compensation and contract termination fees. In addition, we recorded certain non-cash stock-based compensation expenses. These expenses are summarized as follows (in millions):

	Three Months Ended				Year Ended
	December 31,				December 31,
	2021		2020		2021		2020
Transaction Related Expenses:
Broadcasting	$	3	$	–	$	3	$	–
Corporate and administrative	52		1		71		1
Miscellaneous expense	–		–		7		–
Total Transaction Related Expenses	$	55	$	1	$	81	$	1

Total non-cash stock-based compensation	$	4	$	4	$	14	$	16

Taxes

During 2021 and 2020, we made aggregate federal and state income tax payments (net of refunds) of $149 million and $70 million, respectively. During 2022, we anticipate making income tax payments (net of refunds) within a range of $170 million to $190 million.
As of December 31, 2021, we have $10 million of federal operating loss carryforwards, which we expect to utilize in 2022. In addition, we have an aggregate of $424 million of various state operating loss carryforwards, of which we expect that approximately half will be utilized.

Guidance for the Three-Months Ending March 31, 2022

Revenue:
- Local revenue of $270 to $275 million, and national revenue of $81 to $86 million.
  - Total Core Revenue of $351 to $361 million, which reflects an increase by 0% to 3% on a Combined Historical Basis.
- Retransmission revenue of $380 to $385 million.
- Political revenue of $20 to $25 million.
- Production company revenue of $20 to $22 million.
- Total revenue of $789 to $812 million.
Operating Expenses:
- Broadcasting expenses of $535 to $545 million, including retransmission expense of approximately $225 million and transaction related expenses of approximately $3 million and non-cash stock-based compensation expense of approximately $1 million.
- Production company expenses of approximately $25 million.
- Corporate expenses of $29 to $33 million, including transaction related expenses of approximately $1 million and non-cash stock-based compensation expense of approximately $4 million.

Selected Operating Data on As Reported Basis (Unaudited)

	Three Months Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcasting	$	692	$	763	(9	)%	$	554	25	%
Production companies		29		29	0	%		25	16	%
Total revenue	$	721	$	792	(9	)%	$	579	25	%

Political advertising revenue	$	20	$	245	(92	)%	$	38	(47	)%

Operating expenses (1):
Broadcasting	$	449	$	355	26	%	$	339	32	%
Production companies	$	23	$	20	15	%	$	17	35	%
Corporate and administrative	$	84	$	18	367	%	$	21	300	%

Net income	$	29	$	224	(87	)%	$	94	(69	)%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	258	$	424	(39	)%	$	229	13	%
Broadcast Cash Flow Less Cash Corporate Expenses	$	177	$	409	(57	)%	$	212	(17	)%
Free Cash Flow	$	59	$	300	(80	)%	$	108	(45	)%


	Year Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcasting	$	2,340	$	2,320	1	%	$	2,035	15	%
Production companies		73		61	20	%		87	(16	)%
Total revenue	$	2,413	$	2,381	1	%	$	2,122	14	%

Political advertising revenue	$	44	$	430	(90	)%	$	68	(35	)%

Operating expenses (1):
Broadcasting	$	1,548	$	1,340	16	%	$	1,325	17	%
Production companies	$	62	$	52	19	%	$	74	(16	)%
Corporate and administrative	$	159	$	65	145	%	$	104	53	%

Net income	$	90	$	410	(78	)%	$	179	(50	)%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	813	$	999	(19	)%	$	729	12	%
Broadcast Cash Flow Less Cash Corporate Expenses	$	666	$	945	(30	)%	$	636	5	%
Free Cash Flow	$	238	$	559	(57	)%	$	273	(13	)%

(1) Excludes depreciation, amortization and gain on disposal of assets, net.
(2) See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included herein.

Selected Operating Data for the Fourth Quarter of 2021 on As Reported Basis
(Unaudited)

	Three Months Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	277	38	%	$	222	28	%	$	55		25	%
National		82	11	%		62	8	%		20		32	%
Political		20	3	%		245	31	%		(225	)	(92	)%
Retransmission consent		294	41	%		217	27	%		77		35	%
Production companies		29	4	%		29	4	%		–		0	%
Other		19	3	%		17	2	%		2		12	%
Total	$	721	100	%	$	792	100	%	$	(71	)	(9	)%

Total local and national revenue
combined (“Total Core Revenue”)	$	359	50	%	$	284	36	%	$	75		26	%

Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	274	61	%	$	230	65	%	$	44		19	%
Retransmission expense	171		38	%	125		35	%	46			37	%
Transaction Related Expenses	3		1	%	–		0	%	3
Non-cash stock-based compensation	1		0	%	–		0	%	1
Total broadcasting expense	$	449	100	%	$	355	100	%	$	94		26	%

Production companies expense	$	23			$	20			$	3		15	%

Corporate and administrative:
Corporate expenses	$	29	35	%	$	13	72	%	$	16		123	%
Transaction Related Expenses	52		61	%	1		6	%	51			5100	%
Non-cash stock-based compensation	3		4	%	4		22	%		(1	)	(25	)%
Total corporate and
administrative expense	$	84	100	%	$	18	100	%	$	66		367	%

Selected Operating Data for the Full Year 2021 on As Reported Basis
(Unaudited)

	Year Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	934	39	%	$	771	32	%	$	163		21	%
National		256	11	%		198	8	%		58		29	%
Political		44	2	%		430	18	%		(386	)	(90	)%
Retransmission consent		1,049	43	%		867	36	%		182		21	%
Production companies		73	3	%		61	3	%		12		20	%
Other		57	2	%		54	3	%		3		6	%
Total	$	2,413	100	%	$	2,381	100	%	$	32		1	%

Total Core Revenue	$	1,190	50	%	$	969	40	%	$	221		23	%

Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	928	60	%	$	839	63	%	$	89		11	%
Retransmission expense	615		40	%	496		37	%	119			24	%
Transaction Related Expenses	3		0	%	–		0	%	3
Non-cash stock-based compensation	2		0	%	5		0	%	(3		)	(60	)%
Total broadcasting expense	$	1,548	100	%	$	1,340	100	%	$	208		16	%

Production companies expense	$	62			$	52			$	10		19	%

Corporate and administrative:
Corporate expenses	$	76	48	%	$	53	81	%	$	23		43	%
Transaction Related Expenses	71		45	%	1		2	%	70			7000	%
Non-cash stock-based compensation	12		7	%	11		17	%	1			9	%
Total corporate and
administrative expense	$	159	100	%	$	65	100	%	$	94		145	%

Detail Table of Operating Results on As Reported Basis
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,

	2021			2020			2021			2020
	(in millions, except for net income per share data)
Revenue (less agency commissions):
Broadcasting	$	692		$	763		$	2,340		$	2,320
Production companies	29			29			73			61
Total revenue (less agency commissions)	721			792			2,413			2,381
Operating expenses before depreciation, amortization and gain on
disposal of assets, net:
Broadcasting	449			355			1,548			1,340
Production companies	23			20			62			52
Corporate and administrative	84			18			159			65
Depreciation	28			27			104			96
Amortization of intangible assets	36			27			117			105
(Gain) loss on disposal of assets, net	(4		)		(6	)	42			(29		)
Operating expenses	616			441			2,032			1,629
Operating income	105			351			381			752
Other (expense) income:
Miscellaneous (expense) income, net	(1		)	–				(8	)	(5		)
Interest expense	(62		)		(48	)		(205	)	(191		)
Loss on early extinguishment of debt	–				(12	)	–			(12		)
Income before income tax	42			291			168			544
Income tax expense	13			67			78			134
Net income	29			224			90			410
Preferred stock dividends	13			13			52			52
Net income attributable to common stockholders	$	16		$	211		$	38		$	358

Basic per share information:
Net income attributable to common stockholders	$	0.17		$	2.24		$	0.40		$	3.73
Weighted-average shares outstanding	95			94			95			96

Diluted per share information:
Net income attributable to common stockholders	$	0.17		$	2.22		$	0.40		$	3.69
Weighted-average shares outstanding	95			95			95			97

Selected Operating Data on Combined Historical Basis (Unaudited)

	Three Months Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcast	$	828	$	1,104	(25	)%	$	774	7	%
Production companies		29		30	(3	)%		25	16	%
Total revenue	$	857	$	1,134	(24	)%	$	799	7	%

Political advertising revenue	$	25	$	383	(93	)%	$	45	(44	)%

Operating expenses (1):
Broadcast	$	536	$	518	3	%	$	481	11	%
Production companies	$	23	$	21	10	%	$	17	35	%
Corporate and administrative	$	84	$	18	367	%	$	20	320	%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	311	$	624	(50	)%	$	336	(7	)%
Broadcast Cash Flow Less Cash Corporate Expenses	$	230	$	609	(62	)%	$	319	(28	)%
Operating Cash Flow as Defined in our Senior Credit Agreement	$	285	$	609	(53	)%	$	320	(11	)%
Free Cash Flow	$	139	$	423	(67	)%	$	168	(17	)%

	Year Ended December 31,
	2021		2020		% Change 2021 to 2020		2019		% Change 2021 to 2019
	(dollars in millions)
Revenue (less agency commissions):
Broadcast	$	3,080	$	3,291	(6	)%	$	2,854	8	%
Production companies		73		61	20	%		87	(16	)%
Total revenue	$	3,153	$	3,352	(6	)%	$	2,941	7	%

Political advertising revenue	$	60	$	652	(91	)%	$	79	(24	)%

Operating expenses (1):
Broadcast	$	2,059	$	1,923	7	%	$	1,885	9	%
Production companies	$	62	$	53	17	%	$	74	(16	)%
Corporate and administrative	$	160	$	65	146	%	$	104	54	%

Non-GAAP Cash Flow (2):
Broadcast Cash Flow	$	1,105	$	1,459	(24	)%	$	1,121	(1	)%
Broadcast Cash Flow Less Cash Corporate Expenses	$	958	$	1,405	(32	)%	$	1,028	(7	)%
Operating Cash Flow as Defined in our Senior Credit Agreement	$	1,029	$	1,403	(27	)%	$	1,060	(3	)%
Free Cash Flow	$	443	$	809	(45	)%	$	533	(17	)%

(1) Excludes depreciation, amortization and gain on disposal of assets, net.
(2) See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included herein.

Selected Operating Data for the Fourth Quarter of 2021 on Combined Historical Basis
(Unaudited)

	Three Months Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	317	37	%	$	287	25	%	$	30		10	%
National		105	12	%		92	8	%		13		14	%
Political		25	3	%		383	34	%		(358	)	(93	)%
Retransmission consent		358	42	%		319	28	%		39		12	%
Production companies		29	3	%		30	3	%		(1	)	(3	)%
Other		23	3	%		23	2	%		–		0	%
Total	$	857	100	%	$	1,134	100	%	$	(277	)	(24	)%


Total Core Revenue	$	422	49	%	$	379	33	%	$	43		11	%


Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	321	60	%	$	331	64	%	$	(10	)	(3	)%
Retransmission expense		211	39	%		186	36	%		25		13	%
Transaction Related Expenses		3	1	%		–	0	%		3
Non-cash stock-based compensation		1	0	%		1	0	%		–
Total broadcasting expense	$	536	100	%	$	518	100	%	$	18		3	%

Production companies expense	$	23			$	21			$	2		10	%

Corporate and administrative:
Corporate expenses	$	29	35	%	$	13	72	%	$	16		123	%
Transaction Related Expenses		52	61	%		1	6	%		51		5100	%
Non-cash stock-based compensation		3	4	%		4	22	%		(1	)	(25	)%
Total corporate and
administrative expense	$	84	100	%	$	18	100	%	$	66		367	%

Selected Operating Data for the Full Year 2021 on Combined Historical Basis
(Unaudited)

	Year Ended December 31,
		2021				2020			Amount			Percent
			Percent				Percent		Increase			Increase
	Amount		of Total		Amount		of Total		(Decrease)			(Decrease)
	(dollars in millions)
Revenue (less agency commissions):
Local (including internet/digital/mobile)	$	1,158	37	%	$	1,000	30	%	$	158		16	%
National		357	11	%		289	9	%		68		24	%
Political		60	2	%		652	19	%		(592	)	(91	)%
Retransmission consent		1,429	45	%		1,276	38	%		153		12	%
Production companies		73	2	%		61	2	%		12		20	%
Other		76	3	%		74	2	%		2		3	%
Total	$	3,153	100	%	$	3,352	100	%	$	(199	)	(6	)%


Total Core Revenue	$	1,515	48	%	$	1,289	38	%	$	226		18	%

Operating Expenses (before
depreciation, amortization and
gain on disposal of assets, net):
Broadcasting:
Station expenses	$	1,210	59	%	$	1,184	62	%	$	26		2	%
Retransmission expense	842		41	%	732		38	%	110			15	%
Transaction Related Expenses	3		0	%	–		0	%	3
Non-cash stock-based compensation	4		0	%	7		0	%	(3		)	(43	)%
Total broadcasting expense	$	2,059	100	%	$	1,923	100	%	$	136		7	%

Production companies expense	$	62			$	53			$	9		17	%

Corporate and administrative:
Corporate expenses	$	77	48	%	$	53	81	%	$	24		45	%
Transaction Related Expenses	71		44	%	1		2	%	70			7000	%
Non-cash stock-based compensation	12		8	%	11		17	%	1			9	%
Total corporate and
administrative expense	$	160	100	%	$	65	100	%	$	95		146	%

Other Financial Data,
As Reported Basis

	As of December 31,
	2021			2020
	(in millions)

Cash	$	189		$	773
Long-term debt, including current portion, less deferred
financing costs	$	6,755		$	3,974
Series A perpetual preferred stock	$	650		$	650
Borrowing availability under senior credit facility	$	497		$	200

	Year Ended December 31,
	2021			2020
	(in millions)

Net cash provided by operating activities	$	300		$	652
Net cash used in investing activities	(3,534		)	(211		)
Net cash provided by financing activities	2,650			120
Net (decrease) increase in cash	$	(584	)	$	561

Additional Information

The Company

Cautionary Statements for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act

Conference Call Information

Gray Contacts

Web site: www.gray.tv

Hilton H. Howell, Jr., Executive Chairman and Chief Executive Officer, 404-266-5513

Pat LaPlatney, President and Co-Chief Executive Officer, 334-206-1400

Jim Ryan, Executive Vice President and Chief Financial Officer, 404-504-9828

Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333

Effects of Acquisitions and Divestitures on Our Results of Operations and Non-GAAP Terms

Reconciliation of Non-GAAP Terms on As Reported Basis, in millions:

	Three Months Ended
	December 31,
	2021			2020			2019

Net income	$	29		$	224		$	94
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	28			27			20
Amortization of intangible assets	36			27			29
Non-cash stock-based compensation	4			4			6
Non-cash 401(k) expense, excluding corporate portion	7			6			5
Gain on disposal of assets, net	(4		)	(6		)	(27		)
Miscellaneous expense, net	1			–			–
Interest expense	62			48			54
Loss on early extinguishment of debt	–			12			–
Income tax expense	13			67			32
Amortization of program broadcast rights	12			10			9
Payments for program broadcast rights	(11		)	(10		)	(10		)
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	81			15			17
Broadcast Cash Flow	258			424			229
Corporate and administrative expenses excluding
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(81		)	(15		)	(17		)
Broadcast Cash Flow Less Cash Corporate Expenses	177			409			212
Interest expense	(62		)	(48		)	(54		)
Amortization of deferred financing costs	2			2			2
Preferred stock dividends	(13		)	(13		)	(13		)
Common stock dividends	(8		)	–			–
Purchase of property and equipment (1)	(35		)	(40		)	(37		)
Reimbursements of property and equipment purchases	1			10			9
Income taxes paid, net of refunds (2)	(3		)	(20		)	(11		)
Free Cash Flow	$	59		$	300		$	108

Reconciliation of Non-GAAP Terms on As Reported Basis, in millions:

	Year Ended
	December 31,
	2021			2020			2019

Net income	$	90		$	410		$	179
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	104			96			80
Amortization of intangible assets	117			105			115
Non-cash stock-based compensation	14			16			16
Non-cash 401(k) expense, excluding corporate portion	8			6			5
Loss (gain) on disposal of assets, net	42			(29		)	(54		)
Miscellaneous expense (income), net	8			5			(4		)
Interest expense	205			191			227
Loss on early extinguishment of debt	–			12			–
Income tax expense	78			134			76
Amortization of program broadcast rights	38			38			39
Payments for program broadcast rights	(38		)	(39		)	(43		)
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	147			54			93
Broadcast Cash Flow	813			999			729
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(147		)	(54		)	(93		)
Broadcast Cash Flow Less Cash Corporate Expenses	666			945			636
Contributions to pension plans	(4		)	(3		)	(3		)
Interest expense	(205		)	(191		)	(227		)
Amortization of deferred financing costs	11			11			11
Preferred stock dividends	(52		)	(52		)	(52		)
Common stock dividends	(31		)	–			–
Purchase of property and equipment (1)	(98		)	(110		)	(110		)
Reimbursements of property and equipment purchases	11			29			41
Income taxes paid, net of refunds (2)	(60		)	(70		)	(23		)
Free Cash Flow	$	238		$	559		$	273

Reconciliation of Non-GAAP Terms on a Combined Historical Basis, in millions:

	Three Months Ended
	December 31,
	2021			2020			2019

Net income	$	57		$	364		$	110
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	32			34			28
Amortization of intangible assets	37			29			33
Non-cash stock based compensation	4			5			6
Non-cash 401(k) expense, excluding corporate portion	7			6			5
(Gain) loss on disposal of assets, net	(2		)	(5		)	2
Miscellaneous expense, net	1			1			–
Interest expense	78			78			78
Loss from early extinguishment of debt	–			12			–
Income tax expense	9			66			30
Amortization of program broadcast rights	14			15			14
Payments for program broadcast rights	(14		)	(14		)	(15		)
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	81			15			17
Broadcast Transaction Related Expenses	3			–			7
Broadcast other adjustments	4			18			21
Broadcast Cash Flow	311			624			336
Corporate and administrative expenses before
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(81		)	(15		)	(17		)
Broadcast Cash Flow Less Cash Corporate Expenses	230			609			319
Adjustments for unrestricted subsidiaries	3			–			–
Corporate Transaction Related Expenses	52			–			1
Operating Cash Flow as Defined in Senior Credit Facility	285			609			320
Interest expense	(78		)	(78		)	(78		)
Amortization of deferred financing costs	3			3			3
Preferred dividends	(13		)	(13		)	(13		)
Common stock dividends	(8		)	–			–
Purchase of property and equipment (1)	(37		)	(46		)	(51		)
Reimbursement of purchases of property and equipment	1			11			12
Income taxes paid, net of refunds (2)	(14		)	(63		)	(25		)
Free Cash Flow	$	139		$	423		$	168

Reconciliation of Non-GAAP Terms on a Combined Historical Basis, in millions:

	Year Ended
	December 31,
	2021			2020			2019

Net income	$	265		$	635		$	310
Adjustments to reconcile from net income to
Free Cash Flow:
Depreciation	128			128			111
Amortization of intangible assets	123			114			127
Non-cash stock-based compensation	16			18			17
Non-cash 401(k) expense, excluding corporate portion	8			6			5
Gain on disposal of assets, net	(10		)	(32		)	(41		)
Miscellaneous expense (income), net	8			27			(5		)
Interest expense	311			311			311
Loss from early extinguishment of debt	–			12			–
Income tax expense	46			117			65
Amortization of program broadcast rights	55			58			60
Payments for program broadcast rights	(56		)	(59		)	(64		)
Corporate and administrative expenses excluding
depreciation, amortization of intangible assets and
non-cash stock-based compensation	147			54			93
Broadcast Transaction Related Expenses	3			–			45
Broadcast other adjustments	61			70			87
Broadcast Cash Flow	1,105			1,459			1,121
Corporate and administrative expenses excluding
depreciation, amortization of intangible assets and
non-cash stock-based compensation	(147		)	(54		)	(93		)
Broadcast Cash Flow Less Cash Corporate Expenses	958			1,405			1,028
Contributions to pension plans	(4		)	(3		)	(3		)
Adjustments for unrestricted subsidiaries	4			–			–
Corporate Transaction Related Expenses	71			1			35
Operating Cash Flow as Defined in Senior Credit Facility	1,029			1,403			1,060
Interest expense	(311		)	(311		)	(311		)
Amortization of deferred financing costs	12			12			12
Preferred dividends	(52		)	(52		)	(52		)
Common stock dividends	(31		)	–			–
Purchase of property and equipment (1)	(107		)	(127		)	(154		)
Reimbursement of purchases of property and equipment	13			36			55
Income taxes paid, net of refunds (2)	(110		)	(152		)	(77		)
Free Cash Flow	$	443		$	809		$	533

Reconciliation of Net Income on As Reported Basis to Adjusted EBITDA and the Effect of Transaction Related Expenses and Certain Non-cash Expenses, in millions except for per share information:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020

Net income	$	29		$	224		$	90		$	410
Adjustments to reconcile from net income to
Adjusted EBITDA:
Depreciation	28			27			104			96
Amortization of intangible assets	36			27			117			105
Non-cash stock-based compensation	4			4			14			16
(Gain) loss on disposal of assets, net	(4		)	(6		)	42			(29		)
Miscellaneous expense, net	1			–			8			5
Interest expense	62			48			205			191
Loss on early extinguishment of debt	–			12			–			12
Income tax expense	13			67			78			134
Total	169			403			658			940
Add: Transaction Related Expenses	55			1			81			1
Adjusted EBITDA	$	224		$	404		$	739		$	941

Net income attributable to common stockholders	$	16		$	211		$	38		$	358
Add: Transaction Related Expenses and non-cash
stock-based compensation	59			5			95			17
Less: Income tax expense related to Transaction Related
Expenses and non-cash stock-based compensation	(15		)	(1		)	(24		)	(4		)
Net income attributable to common stockholders – excluding Transaction Related Expenses and non-cash stock-based compensation	$	60		$	215		$	109		$	371

Net income attributable to common stockholders per common share, diluted – excluding Transaction Related Expenses and non-cash stock-based compensation	$	0.63		$	2.26		$	1.15		$	3.82

Diluted weighted-average shares outstanding	95			95			95			97

Reconciliation of Total Leverage Ratio, Net of All Cash, in millions except for ratio:

	Eight Quarters Ended
	December 31, 2021

Net income	$	500
Adjustments to reconcile from net income to operating cash flow as
defined in our Senior Credit Agreement:
Depreciation	200
Amortization of intangible assets	222
Non-cash stock-based compensation	30
Non-cash 401(k) expense, excluding corporate portion	15
Loss on disposal of assets, net	13
Interest expense	396
Loss on early extinguishment of debt	12
Income tax expense	212
Amortization of program broadcast rights	75
Payments for program broadcast rights	(77)
Pension gain	(3)
Contributions to pension plan	(7)
Adjustments for unrestricted subsidiaries	3
Adjustments for stations acquired or divested, financings and expected
synergies during the eight quarter period	759
Transaction Related Expenses	82
Operating Cash Flow, as defined in our Senior Credit Agreement	$	2,432
Operating Cash Flow, as defined in our Senior Credit Agreement,
divided by two	$	1,216

	December 31, 2021
Adjusted Total Indebtedness:
Total outstanding principal, including current portion	$	6,835
Letters of Credit Outstanding	3
Cash	(189)
Adjusted Total Indebtedness, Net of All Cash	$	6,649

Total Leverage Ratio, Net of All Cash	5.47

Newrange Gold Corp. (NRGOF)(NRG:CA) – Newrange Closes First Tranche of Financing

Posted on February 25, 2022 by Admin

Friday, February 25, 2022

Newrange Gold Corp. (NRGOF)(NRG:CA)
Newrange Closes First Tranche of Financing

As of April 24, 2020, Noble Capital Markets research on Newrange Gold is published under ticker symbols (NRGOF and NRG:CA). The price target is in USD and based on ticker symbol NRGOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

Non-flow-through financing. Newrange Gold closed the first tranche of a private placement and received gross proceeds of ~C$408,100 with the issuance of 5,830,332 non-flow-through (NFT) units at a price of C$0.07 per unit. Management and insiders acquired a total of 1,615,000 units. Each NFT unit is comprised of one common share and one-half share purchase warrant. Each whole NFT warrant may be exercised to purchase one common share for C$0.12 at any time until February 23, 2024. A second and final tranche to raise gross proceeds of ~C$100,000 is expected to close in approximately two weeks. Proceeds will be used, among other things, to fund surface exploration at the Pamlico project in Nevada.

Flow-through financing. Newrange expects to raise up to C$1,500,000 with the issuance of up to 15 million flow-through (FT) units at a price of C$0.10 per FT unit in a private placement. Each unit is comprised of one common share and one-half share purchase warrant. Each whole FT warrant may be exercised to purchase one common share at a price of C$0.12 at any time until February 23, 2024. Proceeds …

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

Is GDP Growth Transitory and Inflation Persistent?

Posted on February 24, 2022 by Admin



  Image Credit: NeilsPhotography (Flickr)

The Latest GDP Growth Number Should Squelch All Stagflation Conversation

The just-released 4Q GDP numbers should put on hold, at least for now, any conversation suggesting stagflation is imminent. While the stock market has been racking up consecutive red days, the economy is growing quite rapidly. This eliminates half of the stagflation debate. The other half, however, seems to be firmly in place. Here’s why the GDP trend is excellent news and the stagflation forecast is unlikely.

Stagflation

Source: Dictionary.com

The term stagflation was first used in the ’70s to describe an environment where the economy is effectively “stuck in the mud.” The wheels are spinning, but it isn’t going anyplace, and the driver, in this case, the Fed) applies the gas pedal, the more costs that are likely to rack up without any forward motion. Using the more refined definition from Dictionary.com, let’s look at two numbers related to the economic numbers released today (2/24/22).

The definition mentions employment and business activity. The Department of Labor reported the seasonally adjusted initial unemployment claims was 232,000. This is a 17,000 decrease from the previous week. The 4-week moving average is 236,250, which is a decrease of 7,250 from the previous week’s. This is just one employment indicator, but it is the most recent and it is a positive indicator of economic health.

The U.S. Gross Domestic Product (GDP), while a lagging indicator, is the most all-encompassing measure of economic activity. It’s an actual measure of all goods and services produced within the U.S. borders. The report showed the U.S. grew 7% in the 4th quarter. This is a large number and does more than just make up for the one (significantly) down quarter in 2020. The GDP is now trending at a slightly accelerated pace than the previous five years. At almost any other
time in market history, the stock market would have celebrated with a
substantially up day.

Lately, the market looks for bad news. Granted, today the negative news (Russia invades Ukraine) was the focus.

Inflation

As indicated in the below graph, using CPI as a measure, we see inflation is running well above the Federal Reserve’s stated 2% target. It is doing this whether food and energy are included in the measure or not.

The graph demonstrates just how rampant inflation has been since the second quarter of 2021. And it has been accelerating. In the past, an inflation trend like this would cause the Fed to move the overnight lending rate to a level much closer to the pace of inflation. The current stated Fed Funds target is 0.00% to 0.25%. At almost any other time in market history, the stock market might view the Fed as careless, and the bond market would have already been priced to have a positive real yield (yield net of inflation).

One reason this hasn’t happened is the Fed is exercising “yield curve control” which is keeping the bond market from increasing the price of borrowing.

If it’s not Stagflation, What is it?

With 7% growth and jobs plentiful, the current economic situation doesn’t meet the basic definition of stagflation. Yet, one of the most widely followed leading indicators, the stock market, tells us there is something just around the corner to worry about. Weakness in the equity markets is not just a leading indicator, it is also a driver of corporate and consumer behavior. When an individual or entity feels wealthy and has easy access to capital, economic activity thrives, when financial means are diminished by lower stock market prices, activity slows.

It may be that the markets are aware that the Fed, although it hasn’t changed the overnight lending rate, is dramatically reducing the still ongoing stimulus (tapering purchases of public market securities). Billions of dollars that have been entering the fixed income markets each month, billions that held rates down and provided new capital to the economy will no longer be available. And, perhaps what has continued to fuel 7% GDP growth, job growth, and yes even partially responsible for inflation, will now slow growth.

While this is not stagflation, it puts the Fed in a position where it has to choose a battle. Fight inflation by stunting economic growth, or keep the proverbial punch bowl out and not worry about the potential hangover (more inflation).

Take-Away

The cost of borrowing is climbing as the Federal Reserve prepares to raise overnight bank lending rates for the first time in four years. Inflation has soared to a 40-year high. Meanwhile, ongoing shortages of labor and supplies have handcuffed the ability of businesses to produce enough goods and services to meet customer demand. Even though production is being stymied, GDP is roaring at 7%.

The markets are trading off and it isn’t all because of the unsettled Russia Ukraine situation. Higher energy prices, after all have the same impact on the economy as raising rates does (higher cost of capital).

This isn’t a stagflation scenario, yet the markets are spooked. Does the combined wisdom of the stock market participants know something? This remains to be seen. While the U.S. economy continues to show solid fundamentals for growth, it is faced with increasing headwinds from significant, less overt, policy tightening (bond purchase taper).

Suggested Reading

Will the Market Soon Reach New Heights?

Why 2022 Investing Will Need to be Different

It’s Officially Warren Buffett Season – Hints on What to Expect

The Various Ways to Allocate into “War Investments”

Sources

https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20220331.pdf

https://data.bls.gov/pdq/SurveyOutputServlet

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Stocks in the Sectors Positively Impacted by Armed Conflict

Posted on February 24, 2022 by Admin



  Image: PxHere (1413412)

The Various Ways to Allocate into “War Investments”

The developments between Russia and Ukraine, coupled with international reactions will impact all investment markets over the coming weeks/months. While prices will settle as markets push and pull to determine the appropriate range, the current reaction has created some investments to gain substantially along with those that have been hurt by weakness in their own sectors.

A Different Angle on Gold

Gold spiked to its highest level since late 2020. Gold is up by $180 per ounce, or almost 10% since the end of January when it was well below $1800. Gold mining stocks, specifically junior gold miners, have performed even better. As measured by the VanEck Junior Miners ETF (GTXJ), the sector is up 16.89%.

Current news and company information on junior miners is plentiful on Channelchek. There you can review the research on Great Panther Mining (GPL) which is exceeding, by a wide margin, the performance of gold and the junior mining ETF. Among the many other junior miners worth the attention of investors interested in this sector are: Allegiant Gold Ltd. (AUXXF), Great Bear Resources (GTBAF), and Aurania Resources (AUIAF, ARU:CA).

Crude is Up, Who
Benefits?

Oil’s surge to the $100 per barrel mark has brought energy sector stocks up along with it, with a bit of a lag. While crude oil has risen 8.69% since January, the overall energy sector measured by the XLE, which is heavily weighted with giants like Chevron and Exxon, is up over 2% in less than a month while the overall stock market has been sliding rapidly.

Smaller energy stocks, represented in the graph below by the ETF Investco Small-Cap Energy (PSCE) are up twice the larger companies and appear to now be gaining at a more rapid pace than crude.

Small and microcap energy sector stocks are demonstrating they have more upside potential than larger companies in this sector. Current news and company
information on smaller energy stocks is plentiful on Channelchek. There you can review the research on Indonesia Energy (INDO) whose price has more than doubled over this period. InPlay Oil Inc. (IPOOF, IPO:CA) has also seen a positive impact.

Overlooked Natural Resources

Palladium and platinum mining stocks, although less talked about, have also surged. A good example is Palladium One Mining Inc. (NKORF, PDM:CA). Since the end of January, the stock has risen 9.68%. The percent performance of Palladium One has spiked double digits over the past two days.

Take-Way

Changes and events bring opportunities for investors to reallocate and open themselves to other areas to enrich their portfolios. While at times the more profitable changes are from events that we would prefer not to happen, these events are beyond our control. Whereas one’s portfolio positions are well within their control. For example: Reallocating into construction materials after a devastating hurricane should be done without guilt. The same is true for those investing to take advantage of the current Ukraine/Russia situation.

Channelchek provides data and research on companies that often move by higher percentages when their industry moves. Sign-up to receive our emails to supplement your knowledge in ways missing on other equity research and market information platforms.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading

Small-Cap Companies and IRA Investments

How Cryptocurrencies, Gold, and Oil Trade When Political Tensions Rise

Index Funds Still May Fall Apart over Time

Trading Accounts for Children

Sources

Channelchek.com

www.koyfin.com

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Release – PDS Biotech Announces Preliminary Safety Data on PDS0101 in Combination With KEYTRUDA

Posted on February 24, 2022 by Admin

PDS Biotech Announces Preliminary Safety Data on PDS0101 in Combination With KEYTRUDA® (pembrolizumab) at the 2022 Multidisciplinary Head and Neck Cancers Symposium

Research, News, and Market Data on PDS Biotech

Preliminary safety data has shown that PDS0101 in combination with Merck’s anti-PD-1 therapy, KEYTRUDA^® (pembrolizumab) for the treatment of recurrent or metastatic HPV16-positive head and neck cancer is likely safe and well tolerated without evidence of enhanced or significant toxicity

FLORHAM PARK, N.J., Feb. 24, 2022 (GLOBE NEWSWIRE) — PDS Biotechnology Corporation (Nasdaq: PDSB), a clinical-stage immunotherapy company developing novel cancer therapies and infectious disease vaccines based on the Company’s proprietary Versamune^® and Infectimune™ T-cell activating technology, today announced the presentation of preliminary safety data. The data are based on a total of 18 checkpoint inhibitor (CPI) naïve patients from the Company’s ongoing VERSATILE-002 Phase 2 study. The study is being conducted in collaboration with Merck (known as MSD outside the US and Canada) (NCT04260126). The data from the study will be presented at the 2022 Multidisciplinary Head and Neck Cancers Symposium.

The Phase 2 trial studies PDS0101 in combination with Merck’s anti-PD-1 therapy KEYTRUDA^® (pembrolizumab) for the treatment of recurrent or metastatic HPV16-positive head and neck cancer. The trial is designed to treat both CPI naïve and refractory patients and will assess the primary efficacy endpoint, as well as partial response per RECIST 1.1. The Company previously announced that it had achieved its preliminary efficacy milestone in the CPI naive arm earlier this month.

Patients in the trial are treated with KEYTRUDA^® 200 mg intravenously every three weeks plus PDS0101 delivered subcutaneously with KEYTRUDA^®on cycles of 1-4 and again at cycle 12. An initial safety cohort was assessed during cycle 1 and 21 days following for dose-limiting toxicity, and thereafter for safety and tolerability of the combination.

Highlights from the PDS Biotech’s presentation at the 2022 Multidisciplinary Head and Neck Cancers Symposium regarding the preliminary results of the Phase 2 trial studying PDS0101 in combination with KEYTRUDA for the treatment of recurrent or metastatic HPV16-positive head and neck cancer include the absence of dose-limiting toxicities, drug discontinuation related to toxicity, or immune-related adverse events. Subjects received a median of 4 doses of PDS0101 (range 1-5) and a median of 6 doses of KEYTRUDA^® (range 1-13). In addition, no treatment-related grade 3 or higher toxicities were reported.

Preliminary safety data has shown that PDS0101 in combination with KEYTRUDA^® for the treatment of recurrent or metastatic HPV16-positive head and neck cancer is likely safe and well tolerated without evidence of enhanced or significant toxicity in the first 18 patients evaluated on the study. Accrual in this study has progressed to Stage 2 for the CPI naïve cohort and is ongoing in Stage 1 for the CPI refractory cohort. The full data set can be found under abstract number 157 at the virtual poster library, here.

Receipt of preliminary results are not necessarily indicative of the final-results of the Phase 2 trial studying PDS0101 in combination with KEYTRUDA^® for the treatment of recurrent or metastatic HPV16-positive head and neck cancer.

“We are encouraged by the preliminary safety data of PDS0101 in combination with KEYTRUDA^®for patients with recurrent or metastatic HPV16-positive head and neck cancer,” commented Dr. Lauren V. Wood, Chief Medical Officer of PDS Biotech. “These data and the preliminary efficacy data continue to support the unique combination of safety and potency of our novel Versamune^® platform.”

In addition to the ongoing VERSATILE-002 Phase 2 trial, PDS Biotech is conducting another Phase 2 clinical study in both second-and third-line treatment for multiple advanced HPV-associated cancers with the National Cancer Institute (NCI) (NCT04287868). A third Phase 2 clinical trial, IMMUNOCERV (NCT04580771), in first-line treatment of locally advanced cervical cancer is being performed with The University of Texas, MD Anderson Cancer Center. In addition, the Company recently announced a fourth Phase 2 trial with Mayo Clinic to study PDS0101 with and without KEYTRUDA^® prior to surgery in locally advanced HPV-associated oropharyngeal cancer (NCT05232851).

KEYTRUDA^® is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Kenilworth, NJ, USA.

About PDS Biotechnology

PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of cancer and infectious disease immunotherapies based on the Company’s proprietary Versamune^® and Infectimune™ T-cell activating technology platforms.

Our Versamune^®-based products have demonstrated the potential to overcome the limitations of current immunotherapy by inducing in vivo, large quantities of high-quality, highly potent polyfunctional tumor specific CD4+ helper and CD8+ killer T-cells. PDS Biotech has developed multiple therapies, based on combinations of Versamune^® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them. The Company’s pipeline products address various cancers including HPV16-associated cancers (anal, cervical, head and neck, penile, vaginal, vulvar) and breast, colon, lung, prostate, and ovarian cancers.

Our Infectimune™-based vaccines have demonstrated the potential to induce not only robust and durable neutralizing antibody responses, but also powerful T-cell responses including long-lasting memory T-cell responses. To learn more, please visit www.pdsbiotech.com or follow us on Twitter at @PDSBiotech.

Forward Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the “Company”) and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” “forecast,” “guidance”, “outlook” and other similar expressions among others. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the Company’s ability to protect its intellectual property rights; the Company’s anticipated capital requirements, including the Company’s anticipated cash runway and the Company’s current expectations regarding its plans for future equity financings; the Company’s dependence on additional financing to fund its operations and complete the development and commercialization of its product candidates, and the risks that raising such additional capital may restrict the Company’s operations or require the Company to relinquish rights to the Company’s technologies or product candidates; the Company’s limited operating history in the Company’s current line of business, which makes it difficult to evaluate the Company’s prospects, the Company’s business plan or the likelihood of the Company’s successful implementation of such business plan; the timing for the Company or its partners to initiate the planned clinical trials for PDS0101, PDS0203 and other Versamune^®based products; the future success of such trials; the successful implementation of the Company’s research and development programs and collaborations, including any collaboration studies concerning PDS0101, PDS0203 and other Versamune^® based products and the Company’s interpretation of the results and findings of such programs and collaborations and whether such results are sufficient to support the future success of the Company’s product candidates; the success, timing and cost of the Company’s ongoing clinical trials and anticipated clinical trials for the Company’s current product candidates, including statements regarding the timing of initiation, pace of enrollment and completion of the trials (including our ability to fully fund our disclosed clinical trials, which assumes no material changes to our currently projected expenses), futility analyses, presentations at conferences and data reported in an abstract, and receipt of interim results (including, without limitation, any preclinical results or data), which are not necessarily indicative of the final results of the Company’s ongoing clinical trials; any Company statements about its understanding of product candidates mechanisms of action and interpretation of preclinical and early clinical results from its clinical development programs and any collaboration studies; the acceptance by the market of the Company’s product candidates, if approved; the timing of and the Company’s ability to obtain and maintain U.S. Food and Drug Administration or other regulatory authority approval of, or other action with respect to, the Company’s product candidates; and other factors, including legislative, regulatory, political and economic developments not within the Company’s control, including unforeseen circumstances or other disruptions to normal business operations arising from or related to COVID-19. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s annual and periodic reports filed with the SEC. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Rich Cockrell
CG Capital
Phone: +1 (404) 736-3838
pdsb@cg.capital

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