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Release – Alvopetro Announces Record Funds Flow from Operations for the Second Quarter of 2022 & Q2 Results Webcast

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Alvopetro Announces Record Funds Flow from Operations for the Second Quarter of 2022 & Q2 Results Webcast

Research, News, and Market Data on Alvopetro Energy

Aug 11, 2022

CALGARY, AB, Aug. 11, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces operating and financial results for the second quarter of 2022 including record funds flow from operations of $12.4 million. We will host a live webcast to discuss Q2 2022 results on Friday August 12, 2022 beginning at 8:00 am Mountain time.

All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

Financial and Operating Highlights – Second Quarter of 2022

  • Daily sales averaged 2,359 boepd in Q2 2022, consistent with the Q2 2021 average of 2,361 boepd and a 6% reduction from the Q1 2022 average of 2,501 boepd as a result of a planned five-day shut-down of our gas processing facility to complete necessary work in advance of the facility expansion.
  • On February 1, 2022, our contracted natural gas price under our long-term gas sales agreement increased 48% to Brazilian real (“BRL”)1.94/m3. With all natural gas sales in Q2 2022 at this higher price and an appreciation of the BRL relative to the USD compared to Q2 2021, our average realized natural gas price increased to $11.90/Mcf compared to the Q2 2021 average price of $6.06/Mcf and the Q1 2022 average price of $10.03/Mcf. Higher commodity prices resulted in a 93% increase in our natural gas, condensate and oil revenue compared to Q2 2021.
  • With higher realized sales prices, our operating netback increased to $63.96 per boe in Q2 2022, an improvement of 103% from Q2 2021 and 19% from Q1 2022.
  • We generated cash flows from operating activities of $13.0 million ($0.38 per basic share and $0.35 per diluted share) and funds flows from operations of $12.4 million ($0.37 per basic share and $0.34 per diluted share), increases of $7.3 million and $7.0 million, respectively compared to Q2 2021.
  • We reported net income of $6.6 million, an increase of $2.8 million compared to Q2 2021.
  • Capital expenditures totaled $6.3 million, focused on drilling costs for our 182-C1 and 183-B1 wells, long lead purchases, final costs for our Murucututu field production facility installation on other development costs on our Murucututu project.
  • We repaid an additional $2.5 million of our credit facility, bringing the balance outstanding to $2.5 million. As at June 30, 2022, we had a net working capital surplus of $11.6 million, including $13.7 million in cash and cash equivalents. The Company’s working capital net of our credit facility balance improved to $9.1 million, compared to $7.3 million as of March 31, 2022.
  • Effective August 1, 2022 our natural gas price has been set at BRL1.94/m3 or $11.28/Mcf (based on our average heat content to date of 107% and the July 31, 2022 BRL/USD foreign exchange rate of 5.19). The adjusted price is based on the ceiling price in the contract, which was adjusted to $10.22/MMBtu effective August 1, 2022. While the ceiling price increased by 6% from the February 1, 2022 ceiling price, due to the appreciation of the BRL relative to the USD in the first half of 2022 compared to the latter half of 2021, the BRL denominated contractual price remained consistent. This price will be effective for all natural gas sales from August 1, 2022 to January 31, 2023.

The following table provides a summary of Alvopetro’s financial and operating results for three and six months ended June 30, 2022 and June 30, 2021. The consolidated financial statements with the Management’s Discussion and Analysis (“MD&A) are available on our website at www.alvopetro.com and will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

As at and Three Months EndedJune 30,

As at and Six Months EndedJune 30,

2022

2021

Change (%)

2022

2021

Change (%)

Financial

($000s, except where noted)

Natural gas, oil and condensate sales

15,787

8,182

93

29,759

15,121

97

Net income – restated(1)

6,631

3,784

75

17,746

2,837

526

      Per share – basic restated ($)(1)(2)

0.20

0.11

82

0.52

0.09

478

      Per share – diluted restated ($)(1)(2)

0.18

0.11

64

0.49

0.08

513

Cash flow from operating activities

12,997

5,665

129

21,330

9,969

114

      Per share – basic ($)(2)

0.38

0.17

124

0.63

0.30

110

      Per share – diluted ($)(2)

0.35

0.16

119

0.59

0.29

103

Funds flow from operations (3)

12,434

5,471

127

23,338

10,227

128

      Per share – basic ($)(2)

0.37

0.16

131

0.69

0.31

123

      Per share – diluted ($)(2)

0.34

0.16

113

0.64

0.30

113

Dividends declared

2,728

–

–

5,444

–

–

Per share(2)

0.08

–

–

0.16

–

–

Capital expenditures

6,338

918

590

10,138

1,782

469

Cash and cash equivalents

13,672

4,249

222

13,672

4,249

222

Net working capital surplus (3)

11,641

4,499

159

11,641

4,499

159

Working capital, net of debt (net debt)(3)

9,096

(3,046)

–

9,096

(3,046)

–

Weighted average shares outstanding

      Basic (000s)(2)

33,973

33,265

2

33,941

33,250

2

      Diluted (000s)(2)

36,637

34,339

7

36,426

34,075

7

Operations

Natural gas, NGLs and crude oil sales:

      Natural gas (Mcfpd)

13,546

13,512

–

13,940

12,991

7

      NGLs – condensate (bopd)

97

105

(8)

98

101

(3)

      Oil (bopd)

5

5

–

8

2

300

      Total (boepd)

2,359

2,361

–

2,429

2,269

7

Average realized prices(3):

      Natural gas ($/Mcf)

11.90

6.06

96

10.94

5.88

86

      NGL – condensate ($/bbl)

121.93

74.47

64

114.11

69.65

64

      Oil ($/bbl)

94.47

59.63

58

83.90

59.63

41

      Company total ($/boe)

73.54

38.08

93

67.68

36.82

84

Operating netback ($/boe)(3)

      Realized sales price

73.54

38.08

93

67.68

36.82

84

      Royalties

(5.35)

(2.82)

90

(4.84)

(3.05)

59

      Production expenses

(4.23)

(3.68)

15

(4.00)

(3.66)

9

      Operating netback

63.96

31.58

103

58.84

30.11

95

Operating netback margin(3)

87 %

83 %

5

87 %

82 %

6

Notes:

(1)

The 2021 comparative periods in the table above have been restated. See “Restatement of the 2021 Comparative Period” section within the MD&A and Note 14 of the unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2022 for further details.

(2)

Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share.

(3)

See “Non-GAAP and
Other Financial Measures” section within this news release.

 

Second Quarter 2022 Results Webcast

Alvopetro will host a live webcast to discuss Q2 2022 financial results at 8:00 am Mountain time on August 12, 2022. Details for joining the event are as follows:

Date: August 12, 2022Time: 8:00 AM Mountain/10:00 AM Eastern
Link: https://us06web.zoom.us/j/89887067576Dial-in
Numbers: https://us06web.zoom.us/u/kSVhrrkB0Webinar
ID: 898 8706 7576

The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com.

Corporate Presentation

Alvopetro’s updated corporate presentation is available on our website at: http://www.alvopetro.com/corporate-presentation. 

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy Instagram – 
https://www.instagram.com/alvopetro/ LinkedIn – 
https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd.’s vision is to become a
leading independent upstream and midstream operator in Brazil. Our
strategy is to unlock the on-shore natural gas potential in the state of Bahia
in Brazil,
building off the development of our Caburé natural gas field and our strategic
midstream infrastructure.

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

All amounts contained in this new release are in United States dollars,
unless otherwise stated and all tabular amounts are in thousands of United States dollars,
except as otherwise noted.

Abbreviations:

boepd

=

barrels of oil equivalent (“boe”) per day

bopd

=

barrels of oil and/or natural gas liquids (condensate) per day

BRL

=

Brazilian Real

m3

=

cubic metre

Mcf

=

thousand cubic feet

Mcfpd

=

thousand cubic feet per day

MMcf

=

million cubic feet

MMcfpd

=

million cubic feet per day

NGLs

=

natural gas liquids

Q1 2022

=

three months ended March 31, 2022

Q2 2021

=

three months ended June 30, 2021

Q2 2022

=

three months ended June 30, 2022

 

Non-GAAP and Other Financial Measures

This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company’s reported financial performance or position. These are complementary measures that are used by management in assessing the Company’s financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the “Non-GAAP
Measures and Other Financial Measures” section of the Company’s MD&A which may be accessed through the SEDAR website at www.sedar.com.

Non-GAAP Financial Measures

Operating netback

Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the “Operating Netback” section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR website at www.sedar.com. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.

Non-GAAP Financial Ratios

Operating netback per boe

Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent (“boe”). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company’s producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (barrels of oil equivalent). This calculation is provided in the “Operating Netback” section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR website at www.sedar.com. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per unit basis (boe).

Operating netback margin

Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:

Three Months EndedJune 30,

Six Months EndedJune 30,

2022

2021

2022

2021

Operating netback – $ per boe

63.96

31.58

58.84

30.11

Average realized price – $ per boe

73.54

38.08

67.68

36.82

Operating netback margin

87 %

83 %

87 %

82 %

 

Funds Flow from Operations Per Share

Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:

Three Months EndedJune 30,

Six Months EndedJune 30,

$ per share

2022

2021

2022

2021

Per basic share:

Cash flows from operating activities

0.38

0.17

0.63

0.30

Funds flow from operations

0.37

0.16

0.69

0.31

Per diluted share:

Cash flows from operating activities

0.35

0.16

0.58

0.29

Funds flow from operations

0.34

0.16

0.64

0.30

 

Capital Management Measures

Funds Flow from Operations 

Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company’s ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:

Three Months EndedJune 30,

Six Months EndedJune 30,

2022

2021

2022

2021

Cash flows from operating activities

12,997

5,665

21,330

9,969

Add back changes in non-cash working capital

(563)

(194)

2,008

258

Funds flow from operations

12,434

5,471

23,338

10,227

 

Net Working Capital

Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows: 

As at June 30,

2022

2021

Total current assets

21,461

8,413

Total current liabilities

(9,820)

(3,914)

Net working capital surplus

11,641

4,499

 

Working Capital Net of Debt (Net Debt)

Working capital net of debt is computed as net working capital surplus decreased by the carrying amount of the Credit Facility. Working capital net of debt is used by management to assess the Company’s overall financial position. As of June 30, 2022, Alvopetro’s net working capital surplus exceeds the balance outstanding on the Credit Facility.

As at June 30,

2022

2021

Net working capital surplus

11,641

4,499

Credit Facility, balance outstanding

(2,545)

(7,545)

Working capital, net of debt (net debt)

9,096

(3,046)

 

Supplementary Financial Measures

“Average realized natural gas price – $/Mcf” is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company’s natural gas sales volumes.

“Average realized NGL – condensate price – $/bbl” is comprised of condensate sales as determined in accordance with IFRS, divided by the Company’s NGL sales volumes from condensate.

“Average realized oil price – $/bbl” is comprised of oil sales as determined in accordance with IFRS, divided by the Company’s oil sales volumes.

“Average realized price – $/boe” is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company’s total natural gas, condensate and oil sales volumes (barrels of oil equivalent).

“Royalties per boe” is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, condensate and oil sales volumes (barrels of oil equivalent).

“Production expenses per boe” is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, condensate and oil sales volumes (barrels of oil equivalent).

BOE Disclosure

The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this MD&A are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Forward-Looking Statements and Cautionary Language

This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward?looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning the plans relating to the Company’s operational activities, the expected natural gas price, gas sales and gas deliveries under Alvopetro’s long-term gas sales agreement, exploration and development prospects of Alvopetro, the expected timing of certain of Alvopetro’s testing and operational activities, future results from operations, and the Company’s plans for dividends in the future. The forward?looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to equipment availability, the timing of testing of the 182-C1 and the 183-B1 wells and the results from such testing, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic and other significant worldwide events, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our restated annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

 


Direct Digital Holdings (DRCT) – A “Colossal” Quarter

Posted on by Admin

Friday, August 12, 2022

Direct Digital Holdings (DRCT)
A “Colossal” Quarter

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Q2 exceeded even our expectations. The company reported Q2 revenue of $21.3 million, 33% above our forecast of $16 million. Adj. EBITDA of $3.6 million topped our estimate of $2.6 million by an impressive 37%. We believe that our estimates were the highest on the Street.

Sell-side growth was “Colossal”. The strong quarter was fueled by better-than-expected growth from Colossus SSP, which constitutes the company’s Sell-side segment. Segment revenue of $11.9 million exceeded our forecast by nearly 76%, marking a 477% increase from the prior year period’s $2.1 million.

…

This Company Sponsored 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 – Axcella Reports Second Quarter Financial Results and Provides Business Update

Posted on by Admin



Axcella Reports Second Quarter Financial Results and Provides Business Update

Research, News, and Market Data on Axcella Therapeutics

August 12, 2022 at 7:30 AM EDT

  • Announced Statistically Significant Clinical
    Improvement in Fatigue in the Phase 2A Long COVID Trial Topline data
  • NASH Trial interim Data
    Expected in Late Q3 2022
  • Company to Host Conference Call
    at 8:30 a.m. ET today

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Aug. 12, 2022– Axcella Therapeutics (Nasdaq: AXLA), a clinical-stage biotechnology company pioneering a new approach to treat complex diseases using multi-targeted endogenous metabolic modulator (EMM) compositions, today announced financial results for the second quarter ended 
June 30, 2022 and provided a business update.

“Axcella has been a leader in clinical development in Long COVID. We continued this leadership through the second quarter as we advanced the development of our two clinical programs for AXA1125. Our Phase 2A trial of Long COVID in collaboration with 
Oxford University
 is now complete. The results were extremely encouraging and showed that administration of AXA1125 to patients significantly reduced mental and physical fatigue,” said  Bill Hinshaw , President and Chief Executive Officer of Axcella. “Since reporting our data last week, we have received extremely positive feedback from our community of physicians and patients regarding their excitement about the further development of this therapeutic and its potential to benefit patients once it reaches the clinic. In addition, we continue to participate in investors meetings to get the story of the company out to the wider investment community.”

Financial Results

Cash Position: As of 
June 30, 2022, cash, cash equivalents, and marketable securities totaled 
$44.4 million
, compared to 
$55.0 million
 as of 
December 31, 2021. In 
March 2022, the Company received approximately 
$25.0 million
 in gross proceeds from a registered direct offering of common stock. Axcella expects that its current cash balance will be sufficient to meet its operating needs into the first quarter of 2023, provided that, if the Company is unable to satisfy the cash covenants contained in its loan and security agreement with SLR Investment Corp., and SLR Investment Corp. seeks immediate repayment of the loan in full, the Company believes that its cash and cash equivalents will be sufficient to fund its operations into the fourth quarter of 2022.

R&D Expenses: Research and development expenses for the quarter and six months ended 
June 30, 2022 were 
$16.9 million
 and 
$30.4 million
, respectively. Research and development expenses for the same periods ended 
June 30, 2021 were 
$10.3 million
 and 
$20.5 million
, respectively. These increases are the result of the Company’s EMMPACT and Long COVID Phase 2 clinical trials, as well as closure costs for its EMMPOWER Phase 2 clinical trial.

G&A Expenses: General and administrative expenses for the quarter and six months ended 
June 30, 2022 were 
$3.8 million
 and 
$8.5 million
, respectively. General and administrative expenses for the same periods ended 
June 30, 2021 were 
$4.9 million
 and 
$9.2 million
. These decreases are primarily the result of lower non-cash stock-based compensation expenses.

Net Loss: Net loss for the quarter and six months ended 
June 30, 2022 was 
$21.3 million
, or 
$0.40 per basic and diluted share, and 
$40.3 million
, or 
$0.86 per basic and diluted share, respectively. This compares with a net loss of 
$15.9 million
, or 
$0.42 per basic and diluted share, and 
$31.1 million
, or 
$0.83 per basic and diluted share, for the quarter and six months ended 
June 30, 2021.

Internet Posting of
Information

Axcella uses the “Investors and News” section of its website, www.axcellatx.com, as a means of disclosing material nonpublic information, to communicate with investors and the public, and for complying with its disclosure obligations under Regulation FD. Such disclosures include, but may not be limited to, investor presentations and FAQs, 
Securities and Exchange Commission filings, press releases, and public conference calls and webcasts. The information that we post on our website could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

About Axcella
Therapeutics (Nasdaq: AXLA)

Axcella is a clinical-stage biotechnology company pioneering a new approach to treat complex diseases using compositions of endogenous metabolic modulators (EMMs). The company’s product candidates are comprised of EMMs and derivatives that are engineered in distinct combinations and ratios to restore cellular homeostasis in multiple key biological pathways and improve cellular energetic efficiency. Axcella’s pipeline includes lead therapeutic candidates in Phase 2 development for the treatment of Long COVID, and non-alcoholic steatohepatitis (NASH). The company’s unique model allows for the evaluation of its EMM compositions through non-IND clinical studies or IND clinical trials. For more information, please visit www.axcellatx.com.

Forward-Looking
Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the timing of the company’s clinical trial data readouts, its expected cash runway and the potential impact of the company’s recent clinical trial data readouts on market interest and acceptance of the company’s product candidates and investment interest in the company’s securities. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, those related to the potential impact of COVID-19 on the company’s ability to conduct and complete its ongoing or planned clinical studies and clinical trials in a timely manner or at all due to patient or principal investigator recruitment or availability challenges, clinical trial site shutdowns or other interruptions and potential limitations on the quality, completeness and interpretability of data the company is able to collect in its clinical trials of AXA1125, other potential impacts of COVID-19 on the company’s business and financial results, including with respect to its ability to raise additional capital and operational disruptions or delays, changes in law, regulations, or interpretations and enforcement of regulatory guidance, whether data readouts support the company’s clinical trial plans and timing, clinical trial design and target indications for AXA1125, the clinical development and safety profile of AXA1125 and its therapeutic potential, whether and when, if at all, the company’s product candidates will receive approval from the FDA or other comparable regulatory authorities, potential competition from other biopharma companies in the company’s target indications, and other risks identified in the company’s 
SEC filings, including Axcella’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent filings with the 
SEC. The company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Axcella disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Any forward-looking statements contained in this press release represent the company’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. The company explicitly disclaims any obligation to update any forward-looking statements.

Ashley Robinson arr@lifesciadvisors.com
(617) 430-7577

Source: Axcella Therapeutics

 

Onconova Therapeutics (ONTX) – All Trials Continue Toward Data Milestones

Posted on by Admin

Friday, August 12, 2022

Onconova Therapeutics (ONTX)
All Trials Continue Toward Data Milestones

Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation. Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in two Phase 1 dose-escalation and expansion studies. These trials are currently underway in the United States and China. Onconova’s product candidate rigosertib is being studied in an investigator-sponsored study program, including in a dose-escalation and expansion Phase 1/2a investigator-sponsored study with oral rigosertib in combination with nivolumab for patients with KRAS+ non-small cell lung cancer.

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

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

2Q22 Onconova Reported Trial Progress. 2Q22 loss of $4.0 million or $(0.19) per share, compared with our estimated loss of $3.7 million or $(0.18) per share.  Several clinical trials for both narazaciclib and rigosertib are continuing as expected.  The company ended the quarter with $46.5 million in cash and cash equivalents.

Both Narazaciclib Phase 1/2 Trials Continue To Enroll Patients.  The two trials testing narazaciclib at different treatment schedules continue to treat patients.  The trial in China continues in its fifth cohort while the US trial recently begun dosing its fifth cohort.  Neither trial has reached its maximum tolerated dose and none of the toxicities associated with other CDK4/6 drugs have been reported.  We expect announcement of the dosing level selected for Phase 2 around 4Q22….

This Company Sponsored 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. 

V2X, Inc. (VVX) – A Final Quarter for Vectrus

Posted on by Admin

Thursday, August 11, 2022

V2X, Inc. (VVX)
A Final Quarter for Vectrus

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

2Q22 Operating Results. V2X reported record second quarter revenue of $498 million, up 6% year-over-year and 9% sequentially. The growth was even more impressive considering the absence of revenues related to the 2021 Pacific Defender exercise and the lack of Afghanistan revenue. We had projected revenue of $460 million. The Company reported GAAP EPS of $0.88 compared to $1.35 in 2Q21. Adjusted EPS was $1.41 versus $1.52. We had projected $1.04 and $1.21, respectively.

Drivers. High OPTEMPO, LOGCAP V momentum, and contract growth on existing programs all drove the top-line growth. Notably, INDOPACOM accounted for 9% of overall revenue, up from 3% in 2Q21. Lower margin early stage contracts as well as M&A and integration costs associated with the Vertex merger negatively impacted margins.…

This Company Sponsored 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. 

Highlights and Outlook from OPEC’s August Report

Posted on by Admin 



Image Credit: Kishjar (Flickr)


OPEC Sees a Better Balance of Supply and Demand in New Forecast

The Organization of Petroleum Exporting Nations (OPEC) released a 92-page report dated August 11, 2022, on the state of the global oil market. The topics include expected supply and demand balance shifts, global demand expectations, world economy expectations, and physical versus futures prices. The OPEC Monthly Oil Market Report suggests the cartel is not expecting to increase output.


Supply

The global oil supply has risen steadily over the past several months. This includes OPEC coordination with countries participating in the Declaration of Cooperation (DoC). However, ongoing low overall investment is limiting non-OPEC oil supply growth. Signs of slowing growth in the world economy and oil demand have been causing a better balance of output and consumption.

The oil market since the beginning of 2022 has been riddled with price volatility, this became much more pronounced after February 2022. The late winter imbalances were triggered by concerns in Eastern Europe. Sanctions on Russian oil by some major oil importing nations served to increase the premium that was built into crude prices. The sanctions led to significant changes to inter-regional trade flows. This raised supply concerns heading into the summer travel season.

The early summer was characterized by increased pressure on prices in most regions and soaring prices. This created a situation that resulted in crude differentials rising to record-high levels in 2Q22, along with steepening backwardation, a situation where physical oil is priced higher than futures contracts.


Demand

The OPEC report shows fundamentals in the physical oil market remain heightened, and volatility in the futures markets is reacting to expectations of lower GDP growth. Lower growth expectations are fed by rising worldwide inflation and the central banks’ reaction to slow economies.

Another factor impacting world demand is the US dollar’s value which strengthened further against major currencies. Oil is priced in US Dollars. Moreover, market price volatility contributed to reduced market liquidity, as seen in declining futures and options open interest in ICE Brent and NYMEX WTI dropped in July 2022 to the lowest since June 2015.


Source: OPEC Monthly Oil Market Report (August 2022)


Prices

Fuel prices surged in the first half of the year due to lower supplies amid refinery closures and a busy refinery turnaround season. The summer also ushered in stronger fuel consumption as pandemic-related travel restrictions were lifted in most regions. Adjustments to flow tied to the war in Eastern Europe further produced tightness. Combined, this all worked to push oil prices to record highs in June.

Jet fuel became the second strongest performer in the US product market. The product saw its price benefit from growing international air travel.

Prices peaked in June, with US gasoline reaching $193.06/b, up by $97.79/b, or 103%, y-o-y.

In July, rising refinery run rates reduced some of the tightness, mostly in US Gulf Coast (USGC), where product prices declined by $26.83/b, on average. In Europe, average prices declined the least,  $20.24/b, m-o-m.

 

Looking Ahead

Refined product markets in the coming months are expected to experience seasonal support from transport fuels, while fuel sales could increase from the trend of moderating product prices.

Available refinery capacity will be helped by the operational ramp-up of at least two large capacity additions last year. These include the Middle East. The countries participating in the DoC will continue to monitor market developments and seek investment to help ensure adequate levels of capacity and bolster their efforts to maintain a stable oil market balance which is perceived to be in the interest of producers and consumers alike.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://momr.opec.org/pdf-download/

https://www.bloomberg.com/news/articles/2022-08-11/opec-sees-global-oil-market-tipping-into-surplus-this-quarter

https://www.investopedia.com/terms/b/backwardation.asp#:~:text=Key%20Takeaways,months%20through%20the%20futures%20market.

https://www.wsj.com/articles/opec-cuts-oil-demand-forecasts-as-economic-growth-slows-11660220861?mod=hp_lead_pos2

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Release – Kelly Reports Second-Quarter 2022 Earnings

Posted on by Admin



Kelly Reports Second-Quarter 2022 Earnings

Research, News, and Market Data on Kelly

Kelly Reports Second-Quarter
2022 Earnings

August 11, 2022

  • Q2 revenue up 0.7% from a
    year ago; 2.7% in constant currency
  • Q2 operating earnings of $8.2
    million     and earnings per share of $0.06 down
    from a year ago primarily due to a non-cash impairment charge related to
    our operations in Russia
  • Adjusted operating earnings
    of $22.3 million; up
    63% from a year ago
  • Completed the acquisition
    of Pediatric Therapeutic Services in May to extend our leading position in
    K-12 education

TROY, Mich., 
Aug. 11, 2022 /PRNewswire/ — 
Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the second quarter of 2022.

Peter Quigley , president and chief executive officer, announced revenue for the second quarter of 2022 totaled 
$1.3 billion, a 0.7% increase, or 2.7% in constant currency, compared to the corresponding quarter of 2021. Revenue improved year-over-year in the quarter reflecting increased customer demand compared to the COVID-19-impacted prior year period, as well as the impact of the recent acquisitions of RocketPower, a recruitment process outsourcing firm, and Pediatric Therapeutic Services, a specialty firm providing in-school therapy services.

Earnings from operations in the second quarter of 2022 totaled 
$8.2 million
, compared to 
$13.7 million
 reported in the second quarter of 2021. Earnings in the second quarter of 2022 include an asset impairment charge related to our decision to transition our business in 
Russia and a gain on sale of assets related to the disposition of under-utilized real property located in 
the United States. Excluding those items, adjusted earnings from operations were 
$22.3 million compared to 
$13.7 million in the second quarter of 2021. Earnings improved as a result of revenue growth combined with structural improvement in gross profit rate and expense leverage.

Earnings per share in the second quarter of 2022 were 
$0.06 compared to earnings per share of 
$0.60 in the second quarter of 2021. Included in the earnings per share in the second quarter of 2022 is a 
$0.48 per share asset impairment charge, net of tax, related to our decision to transition our business in 
Russia and an 
$0.08 per share gain on sale of assets, net of tax, related to the disposition of under-utilized real property located in 
the United States. Included in the second quarter of 2021 is earnings per share of 
$0.11 gain, net of tax, related to non-cash gains, net of tax, on 
Persol Holding
 common shares. On an adjusted basis, earnings per share were 
$0.45 in the second quarter of 2022 compared to 
$0.49 in the corresponding quarter of 2021. Adjusted earnings per share in the second quarter of 2022 declined as a result of higher 2022 tax expense compared to the same period in 2021.

“We saw solid demand for Kelly’s specialties in the second quarter and, importantly, we are successfully translating revenue into strong gross profit growth. We drove significant improvement in our gross profit rate year over year, due to our continued positive shift in business mix toward higher-margin products and specialties boosted by our specialty acquisitions,” said Quigley. “We have significant capital available to enable growth, and we are putting that capital to work to drive shareholder value. While there is some economic uncertainty in the second half of the year, we are confident that our focused and well-capitalized specialization strategy will continue to deliver value in 2022 and beyond.”

Kelly also reported that on 
August 10, its board of directors declared a dividend of 
$0.075 per share. The dividend is payable on 
September 7, 2022 to stockholders of record as of the close of business on 
August 24, 2022.

In conjunction with its second-quarter earnings release, Kelly has published a financial presentation on the Investor Relations page of its public website and will host a conference call at 
9 a.m. ET on August 11 to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Internet:
Kellyservices.com

Via the Telephone
(877) 692-8955 (toll free) or (234) 720-6979 (caller paid)
Enter access code 5728672
After the prompt, please enter “#”

A recording of the conference call will be available after 
2:30 p.m. ET on 
August 11, 2022
, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 8237932#. The recording will also be available at kellyservices.com during this period.

This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These factors include, but are not limited to, changing market and economic conditions, the impact of the novel coronavirus (COVID-19) outbreak, competitive market pressures including pricing and technology introductions and disruptions, disruption in the labor market and weakened demand for human capital resulting from technological advances, competition law risks, the impact of changes in laws and regulations (including federal, state and international tax laws), unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, or the risk of additional tax liabilities in excess of our estimates, our ability to achieve our business strategy, our ability to successfully develop new service offerings, material changes in demand from or loss of large corporate customers as well as changes in their buying practices, risks particular to doing business with government or government contractors, the risk of damage to our brand, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, services of licensed professionals and services connecting talent to independent work, our increasing dependency on third parties for the execution of critical functions, our ability to effectively implement and manage our information technology strategy, the risks associated with past and future acquisitions, including risk of related impairment of goodwill and intangible assets, risks associated with conducting business in foreign countries, including foreign currency fluctuations, risks associated with violations of anti-corruption, trade protection and other laws and regulations, availability of qualified full-time employees, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, our ability to sustain critical business applications through our key data centers, risks arising from failure to preserve the privacy of information entrusted to us or to meet our obligations under global privacy laws, the risk of cyberattacks or other breaches of network or information technology security, our ability to realize value from our tax credit and net operating loss carryforwards, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in the Company’s filings with the 
Securities and Exchange Commission. Actual results may differ materially from any forward-looking statements contained herein, and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

About Kelly®

Kelly Services, Inc.
 (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, 
Light Industrial
, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ more than 350,000 people around the world, and we connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was 
$4.9 billion. Visit 
kellyservices.com and let us help with what’s next for you.

KLYA-FIN

MEDIA CONTACT:

ANALYST CONTACT:

Jane
Stehney

James
Polehna

(248) 765-6864

(248) 244-4586

stehnja@kellyservices.com

james.polehna@kellyservices.com

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 13 WEEKS ENDED JULY
3, 2022 AND JULY 4,
2021

(UNAUDITED)

(In millions of dollars except per share data)

%

CC %

2022

2021

Change

Change

Change

Revenue
from services

$

1,267.3

$

1,258.1

$

9.2

0.7

%

2.7

%

Cost of services

1,004.9

1,027.1

(22.2)

(2.2)

Gross
profit

262.4

231.0

31.4

13.6

15.6

Selling, general and administrative expenses

240.1

217.3

22.8

10.6

12.3

Impairment of assets held for sale

18.5

—

18.5

NM

Gain on sale of assets

(4.4)

—

(4.4)

NM

Earnings
from operations

8.2

13.7

(5.5)

(40.6)

Gain on investment in Persol Holdings

—

6.3

(6.3)

NM

Other expense, net

(1.1)

(0.3)

(0.8)

(350.6)

Earnings
before taxes and equity in net earnings (loss) of affiliate

7.1

19.7

(12.6)

(64.1)

Income tax expense (benefit)

4.9

(2.6)

7.5

282.9

Net
earnings before equity in net earnings (loss) of affiliate

2.2

22.3

(20.1)

(90.1)

Equity in net earnings (loss) of affiliate

—

1.7

(1.7)

NM

Net
earnings

$

2.2

$

24.0

$

(21.8)

(90.8)

Basic
earnings  per share

$

0.06

$

0.60

$

(0.54)

(90.0)

Diluted
earnings per share

$

0.06

$

0.60

$

(0.54)

(90.0)

STATISTICS:

Permanent placement revenue (included in revenue from services)

$

24.8

$

18.6

$

6.2

33.2

%

36.3

%

Gross profit rate

20.7

%

18.4

%

2.3

pts.

Conversion rate

3.1

%

5.9

%

(2.8)

pts.

Adjusted EBITDA

$

31.7

$

22.2

$

9.5

Adjusted EBITDA margin

2.5

%

1.8

%

0.7

pts.

Effective income tax rate

68.8

%

(13.5)

%

82.3

pts.

Average number of shares outstanding (millions):

     Basic

37.9

39.4

     Diluted

38.2

39.5

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 26 WEEKS ENDED JULY
3, 2022 AND JULY 4,
2021

(UNAUDITED)

(In millions of dollars except per share data)

%

CC %

2022

2021

Change

Change

Change

Revenue
from services

$

2,563.7

$

2,464.0

$

99.7

4.0

%

5.8

%

Cost of services

2,042.7

2,019.7

23.0

1.1

Gross
profit

521.0

444.3

76.7

17.3

19.0

Selling, general and administrative expenses

476.2

420.0

56.2

13.4

14.8

Impairment of assets held for sale

18.5

—

18.5

NM

Gain on sale of assets

(5.3)

—

(5.3)

NM

Earnings
from operations

31.6

24.3

7.3

29.8

Gain (loss) on investment in Persol Holdings

(67.2)

36.3

(103.5)

NM

Loss on currency translation from liquidation of subsidiary(1)

(20.4)

—

(20.4)

NM

Other income (expense), net

1.7

(3.7)

5.4

147.2

Earnings
(loss) before taxes and equity in net earnings (loss) of affiliate

(54.3)

56.9

(111.2)

NM

Income tax expense (benefit)

(8.1)

7.9

(16.0)

(204.0)

Net
earnings (loss) before equity in net earnings (loss) of affiliate

(46.2)

49.0

(95.2)

NM

Equity in net earnings (loss) of affiliate

0.8

0.6

0.2

35.7

Net
earnings (loss)

$

(45.4)

$

49.6

$

(95.0)

NM

Basic
earnings (loss) per share

$

(1.19)

$

1.25

$

(2.44)

NM

Diluted
earnings (loss) per share

$

(1.19)

$

1.25

$

(2.44)

NM

STATISTICS:

Permanent placement revenue (included in revenue from services)

$

51.4

$

34.6

$

16.8

48.5

%

51.4

%

Gross profit rate

20.3

%

18.0

%

2.3

pts.

Conversion rate

6.1

%

5.5

%

0.6

pts.

Adjusted EBITDA

$

62.4

$

39.1

$

23.3

Adjusted EBITDA margin

2.4

%

1.6

%

0.8

pts.

Effective income tax rate

15.0

%

13.8

%

1.2

pts.

Average number of shares outstanding (millions):

     Basic

38.3

39.4

     Diluted

38.3

39.5

 

(1)

Subsequent to the sale of the Persol Holdings investment, the Company commenced the dissolution process of the Kelly Services Japan subsidiary, which was considered substantially liquidated as of the first quarter-end 2022, resulting in the recognition of the 
$20.4 million
 loss on currency translation from liquidation of this subsidiary in the first quarter of 2022.

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

Second Quarter

%

CC %

2022

2021

Change

Change

Professional
& Industrial

Revenue from services

$

415.8

$

466.5

(10.9)

%

(10.6)

%

Gross profit

77.8

75.2

3.6

3.9

Total SG&A expenses

67.4

69.0

(2.2)

(2.0)

Earnings (loss) from operations

10.4

6.2

68.6

Gross profit rate

18.7

%

16.1

%

2.6

 pts.

Science,
Engineering & Technology

Revenue from services

$

324.3

$

298.2

8.7

%

9.0

%

Gross profit

75.2

66.5

13.1

13.3

Total SG&A expenses

54.8

46.9

16.9

17.1

Earnings (loss) from operations

20.4

19.6

3.8

Gross profit rate

23.2

%

22.3

%

0.9

 pts.

Education

Revenue from services

$

155.5

$

105.9

46.8

%

46.8

%

Gross profit

26.0

16.8

55.0

55.0

Total SG&A expenses

20.4

15.3

33.4

33.4

Earnings (loss) from operations

5.6

1.5

278.6

Gross profit rate

16.7

%

15.8

%

0.9

 pts.

Outsourcing
& Consulting

Revenue from services

$

124.4

$

107.3

16.0

%

17.3

%

Gross profit

46.2

34.8

32.8

35.3

Total SG&A expenses

39.8

30.1

32.5

34.5

Earnings (loss) from operations

6.4

4.7

34.5

Gross profit rate

37.2

%

32.5

%

4.7

pts.

International

Revenue from services

$

247.6

$

280.4

(11.7)

%

(4.3)

%

Gross profit

37.2

37.7

(1.5)

7.3

Total SG&A expenses

34.6

34.6

(0.1)

8.2

Earnings (loss) from operations

2.6

3.1

(16.3)

Gross profit rate

15.0

%

13.4

%

1.6

pts.

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

June Year to Date

%

CC %

2022

2021

Change

Change

Professional
& Industrial

Revenue from services

$

860.1

$

934.1

(7.9)

%

(7.8)

%

Gross profit

160.9

151.1

6.5

6.7

Total SG&A expenses

138.8

138.4

0.3

0.4

Earnings (loss) from operations

22.1

12.7

74.2

Gross profit rate

18.7

%

16.2

%

2.5

 pts.

Science,
Engineering & Technology

Revenue from services

$

641.4

$

552.9

16.0

%

16.2

%

Gross profit

149.0

119.7

24.5

24.7

Total SG&A expenses

108.0

82.6

30.8

30.9

Earnings (loss) from operations

41.0

37.1

10.5

Gross profit rate

23.2

%

21.6

%

1.6

 pts.

Education

Revenue from services

$

328.9

$

217.5

51.2

%

51.2

%

Gross profit

52.6

34.0

54.9

54.9

Total SG&A expenses

39.0

29.5

32.4

32.4

Earnings (loss) from operations

13.6

4.5

203.1

Gross profit rate

16.0

%

15.6

%

0.4

 pts.

Outsourcing
& Consulting

Revenue from services

$

233.5

$

206.6

13.0

%

14.1

%

Gross profit

83.5

66.1

26.3

28.2

Total SG&A expenses

74.1

58.5

26.7

28.2

Earnings (loss) from operations

9.4

7.6

23.1

Gross profit rate

35.8

%

32.0

%

3.8

pts.

International

Revenue from services

$

500.4

$

553.3

(9.5)

%

(2.7)

%

Gross profit

75.0

73.4

2.1

10.0

Total SG&A expenses

67.8

67.7

0.2

7.4

Earnings (loss) from operations

7.2

5.7

25.7

Gross profit rate

15.0

%

13.3

%

1.7

pts.

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In millions of dollars)

July 3,
2022

January 2,
2022

July 4,
2021

Current
Assets

  Cash and equivalents

$

133.9

$

112.7

$

64.4

  Trade accounts receivable, less allowances of

    
$12.0, 
$12.6, and 
$12.5, respectively

1,497.9

1,423.2

1,362.5

  Prepaid expenses and other current assets

80.6

52.8

82.4

Assets held for sale

24.6

—

—

Total current assets

1,737.0

1,588.7

1,509.3

Noncurrent
Assets

  Property and equipment, net

25.4

35.3

37.7

  Operating lease right-of-use assets

70.1

75.8

83.2

  Deferred taxes

298.3

302.8

302.9

  
Goodwill, net

192.1

114.8

114.8

  Investment in Persol Holdings

—

264.3

187.7

  Investment in equity affiliate

—

123.4

120.0

  Other assets

412.3

389.1

391.3

Total noncurrent assets

998.2

1,305.5

1,237.6

Total
Assets

$

2,735.2

$

2,894.2

$

2,746.9

Current
Liabilities

  Short-term borrowings

$

—

$

—

$

0.1

  Accounts payable and accrued liabilities

734.7

687.2

612.6

  Operating lease liabilities

15.3

17.5

19.6

  Accrued payroll and related taxes

322.4

318.4

337.0

  Accrued workers’ compensation and other claims

24.4

20.8

22.0

  Income and other taxes

50.5

51.3

62.6

Liabilities held for sale

13.7

—

—

Total current liabilities

1,161.0

1,095.2

1,053.9

Noncurrent
Liabilities

  Operating lease liabilities

57.7

61.4

67.1

Accrued payroll and related taxes

—

57.6

58.5

  Accrued workers’ compensation and other claims

43.4

37.0

40.8

  Accrued retirement benefits

180.2

220.0

214.6

  Other long-term liabilities

16.0

86.8

68.2

Total noncurrent liabilities

297.3

462.8

449.2

Stockholders’
Equity

  Common stock

38.5

40.1

40.1

  
Treasury stock

(12.5)

(15.1)

(15.3)

  Paid-in capital

24.9

23.9

22.3

  Earnings invested in the business

1,239.2

1,315.0

1,212.5

  Accumulated other comprehensive income (loss)

(13.2)

(27.7)

(15.8)

Total stockholders’ equity

1,276.9

1,336.2

1,243.8

Total
Liabilities and Stockholders’ Equity

$

2,735.2

$

2,894.2

$

2,746.9

STATISTICS:

 Working Capital

$

576.0

$

493.5

$

455.4

 Current Ratio

1.5

1.5

1.4

 Debt-to-capital %

0.0

%

0.0

%

0.0

%

 Global Days Sales Outstanding

63

60

60

 Year-to-Date Free Cash Flow

$

(110.8)

$

73.8

$

42.7

               

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 26 WEEKS ENDED JULY
3, 2022 AND JULY 4,
2021

(UNAUDITED)

(In millions of dollars)

2022

2021

Cash flows
from operating activities:

Net earnings (loss)

$

(45.4)

$

49.6

Adjustments to reconcile net earnings (loss) to net cash from operating activities:

Impairment of assets held for sale

18.5

—

Depreciation and amortization

16.1

14.1

Operating lease asset amortization

9.8

10.7

Provision for credit losses and sales allowances

1.3

—

Stock-based compensation

3.8

2.8

(Gain) loss on investment in Persol Holdings

67.2

(36.3)

Loss on currency translation from liquidation of subsidiary

20.4

—

Gain on foreign currency remeasurement

(5.5)

—

Gain on sale of assets

(5.3)

—

Equity in net (earnings) loss of 
PersolKelly Pte. Ltd.

(0.8)

(0.6)

Other, net

2.9

2.2

Changes in operating assets and liabilities, net of acquisitions

(190.3)

5.1

Net cash
(used in) from operating activities

(107.3)

47.6

Cash flows
from investing activities:

Capital expenditures

(3.5)

(4.9)

Proceeds from sale of assets

4.5

—

Acquisition of companies, net of cash received

(143.1)

(219.0)

Proceeds from company-owned life insurance

1.5

10.4

Proceeds from sale of Persol Holdings investment

196.9

—

Proceeds from sale of equity method investment

119.5

—

Proceeds related to loans with equity affiliate

—

5.8

Proceeds from equity securities

—

5.0

Other investing activities

(0.2)

1.0

Net cash
from (used in) investing activities

175.6

(201.7)

Cash flows
from financing activities:

Net change in short-term borrowings

—

(0.1)

Financing lease payments

(0.4)

(0.3)

Dividend payments

(4.8)

—

Payments of tax withholding for stock awards

(0.8)

(0.6)

Buyback of common shares

(27.2)

—

Contingent consideration payments

(0.7)

—

Net cash
used in financing activities

(33.9)

(1.0)

Effect of
exchange rates on cash, cash equivalents and restricted cash

0.1

(2.3)

Net change
in cash, cash equivalents and restricted cash

34.5

(157.4)

Cash, cash
equivalents and restricted cash at beginning of period

119.5

228.1

Cash, cash
equivalents and restricted cash at end of period

$

154.0

$

70.7

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES BY GEOGRAPHY

(UNAUDITED)

(In millions of dollars)

Second Quarter

%

CC %

2022

2021

Change

Change

Americas

United States

$

928.9

$

894.6

3.8

%

3.8

%

Canada

40.3

39.5

1.8

6.0

Puerto Rico

28.9

26.9

7.7

7.7

Mexico

11.2

33.1

(66.3)

(66.2)

Total
Americas Region

1,009.3

994.1

1.5

1.7

Europe

Switzerland

55.3

54.0

2.4

8.7

France

50.4

57.5

(12.4)

(0.7)

Portugal

42.0

40.6

3.5

17.3

Russia

28.7

33.7

(14.6)

(24.6)

Italy

18.4

19.4

(5.4)

7.4

United Kingdom

16.0

17.7

(9.6)

1.0

Other

35.7

31.8

12.1

28.3

Total
Europe Region

246.5

254.7

(3.2)

5.4

Total
Asia-Pacific Region

11.5

9.3

24.2

32.1

Total
Kelly Services, Inc.

$

1,267.3

$

1,258.1

0.7

%

2.7

%

               

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES BY GEOGRAPHY

(UNAUDITED)

(In millions of dollars)

June Year to Date

%

CC %

2022

2021

Change

Change

Americas

United States

$

1,885.5

$

1,753.1

7.6

%

7.6

%

Canada

79.4

73.6

7.8

10.1

Puerto Rico

56.5

51.1

10.7

10.7

Mexico

21.5

67.7

(68.3)

(68.1)

Total
Americas Region

2,042.9

1,945.5

5.0

5.1

Europe 

Switzerland

110.3

106.7

3.4

7.5

France

105.0

111.8

(6.1)

3.6

Portugal

83.9

84.3

(0.5)

9.9

Russia

58.4

66.3

(11.9)

(9.4)

Italy

37.9

37.5

0.8

11.3

United Kingdom

31.0

34.7

(10.7)

(4.0)

Other

72.0

59.6

20.8

33.9

Total
Europe Region

498.5

500.9

(0.5)

7.4

Total
Asia-Pacific Region

22.3

17.6

26.7

33.7

Total
Kelly Services, Inc.

$

2,563.7

$

2,464.0

4.0

%

5.8

%

 

 

 KELLY SERVICES, INC. AND SUBSIDIARIES

 RECONCILIATION OF NON-GAAP MEASURES

SECOND QUARTER

 (UNAUDITED)

 (In millions of dollars)

2022

2021

Earnings
(loss) from Operations:

As Reported

Gain on sale of
assets(3)

Impairment of
assets held

for sale(4)

Adjusted

As Reported

Professional & Industrial

$                  10.4

$                     —

$                     —

$                  10.4

$                    6.2

Science, Engineering & Technology

20.4

—

—

20.4

19.6

Education

5.6

—

—

5.6

1.5

Outsourcing & Consulting

6.4

—

—

6.4

4.7

International

2.6

—

—

2.6

3.1

Corporate

(23.1)

—

—

(23.1)

(21.4)

Impairment of assets held for sale

(18.5)

—

18.5

—

—

Gain on sale of assets

4.4

(4.4)

—

—

—

Total Company

$                    8.2

$                   (4.4)

$                  18.5

$                  22.3

$                  13.7

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

JUNE YEAR TO DATE

(UNAUDITED)

(In millions of dollars)

2022

2021

Earnings
(loss) from Operations:

As Reported

Gain on sale

of assets(3)

Impairment of
assets held

for sale(4)

Adjusted

As Reported

Professional & Industrial

$                  22.1

$                     —

$                     —

$                  22.1

$                  12.7

Science, Engineering & Technology

41.0

—

—

41.0

37.1

Education

13.6

—

—

13.6

4.5

Outsourcing & Consulting

9.4

—

—

9.4

7.6

International

7.2

—

—

7.2

5.7

Corporate

(48.5)

—

—

(48.5)

(43.3)

Impairment of assets held for sale

(18.5)

—

18.5

—

—

Gain on sale of assets

5.3

(5.3)

—

—

—

Total Company

$                  31.6

$                  (5.3)

$                  18.5

$                  44.8

$                  24.3

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

(In millions of dollars except per share data)

Second Quarter

June Year to Date

2022

2021

2022

2021

Income tax expense (benefit)

$                      4.9

$                     (2.6)

$                     (8.1)

$                      7.9

Taxes on investment in Persol Holdings(1)

—

(1.9)

18.4

(11.1)

Taxes on foreign currency matters(2)

—

—

(1.5)

—

Taxes on gain on sale of assets(3)

(1.1)

—

(1.3)

—

Taxes on impairment of assets held for sale(4)

—

—

—

—

Adjusted income tax expense (benefit)

$                      3.8

$                     (4.5)

$                      7.5

$                     (3.2)

Second Quarter

June Year to Date

2022

2021

2022

2021

Net earnings (loss)

$                      2.2

$                    24.0

$                  (45.4)

$                    49.6

(Gain) loss on investment in Persol Holdings, net of taxes(1)

—

(4.4)

48.8

(25.2)

Loss on foreign currency matters, net of taxes(2)

—

—

16.4

—

Gain on sale of assets, net of taxes(3)

(3.3)

—

(4.0)

—

Impairment of assets held for sale, net of taxes(4)

18.5

—

18.5

—

Adjusted net earnings

$                    17.4

$                    19.6

$                    34.3

$                    24.4

Second Quarter

June Year to Date

2022

2021

2022

2021

Per Share

Per Share

Net earnings (loss)

$                    0.06

$                    0.60

$                  (1.19)

$                    1.25

(Gain) loss on investment in Persol Holdings, net of taxes(1)

—

(0.11)

1.27

(0.63)

Loss on foreign currency matters, net of taxes(2)

—

—

0.43

—

Gain on sale of assets, net of taxes(3)

(0.08)

—

(0.10)

—

Impairment of assets held for sale, net of taxes(4)

0.48

—

0.48

—

Adjusted net earnings

$                    0.45

$                    0.49

$                    0.90

$                    0.61

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

 

 

KELLY
SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

(In millions of dollars)

Second Quarter

June Year to Date

2022

2021

2022

2021

Net earnings (loss)

$                  2.2

$                24.0

$               (45.4)

$                49.6

Other (income) expense, net(2)

1.1

0.3

(1.7)

3.7

Income tax expense (benefit)

4.9

(2.6)

(8.1)

7.9

Depreciation and amortization

9.4

8.5

17.6

14.8

EBITDA

17.6

30.2

(37.6)

76.0

Equity in net (earnings) loss of affiliate

—

(1.7)

(0.8)

(0.6)

(Gain) loss on investment in Persol Holdings(1)

—

(6.3)

67.2

(36.3)

Loss on foreign currency matters(2)

—

—

20.4

—

Gain on sale of assets(3)

(4.4)

—

(5.3)

—

Held for sale impairment charge(4)

18.5

—

18.5

—

Adjusted
EBITDA

$                31.7

$                22.2

$                62.4

$                39.1

Adjusted
EBITDA margin

2.5 %

1.8 %

2.4 %

1.6 %

 

KELLY SERVICES,
INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2022 sale of the Persol Holdings investment, the 2022 and 2021 gains and losses on the fair value changes of the investment in Persol Holdings, the 2022 losses on foreign currency matters, the 2022 gains on sale of assets and the impairment of assets held for sale, are useful to understand the Company’s fiscal 2022 financial performance and increases comparability.  Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods.  Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.

Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements.

These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share.  As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company’s financial performance.  Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company’s financial performance.  Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1)  In 2022, the loss on the investment in Persol Holdings represents the change in fair value up until the date of the sale of the investment on 
February 15, 2022 as well as the loss on the sale of the investment during the period presented and the related tax benefit.  In 2021, the gain on the investment in Persol Holdings represents the change in fair value of the investment during the period presented and the related tax expense.

(2)  In 2022, the loss on foreign currency matters includes a 
$20.4 million
 loss on currency translation resulting from the substantially complete liquidation of the Company’s 
Japan entity, partially offset by a 
$5.5 million foreign exchange gain on the 
Japan entity’s USD-denominated cash balance.  The foreign exchange gain is included in other (income) expense, net in the EBITDA calculation.

(3)  Gain on sale of assets in 2022 is related to the sale of under-utilized real property in the second quarter of 2022 and other real property sold in the first quarter of 2022.

(4)  Impairment of assets held for sale represents the write-down of the net assets of the Russian operations that are classified as held for sale as of the second quarter of 2022.

 

 

 

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SOURCE 
Kelly Services, Inc.


Release – Onconova Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

Posted on by Admin



Onconova Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

News and Market Data on Onconova Therapeutics

Conference call and live webcast at 4:30 p.m. ET today

NEWTOWN, Pa., Aug. 11, 2022 (GLOBE NEWSWIRE) — Onconova Therapeutics, Inc. (NASDAQ: ONTX), (“Onconova”), a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer, today announced financial results for the three months ended June 30, 2022, and provided a business update.

Highlights for the second quarter of 2022 and recent weeks include:

  • Safety data from the ongoing Phase 1 solid tumor trials of narazaciclib in the United States and China continue to be encouraging with the maximum tolerated dose not yet reached in either study. The trial in the United States is currently enrolling its fifth dose escalation cohort, with continuous dosing. The trial in China is also enrolling its fifth dose escalation cohort but once a day on days 1-21 of 28-day cycles. A protocol amendment to enable further dose escalation in the trial in China is being prepared.
  • Data from 
    in
    vitro     and cell-based assays that suggest narazaciclib’s inhibitory profile may provide safety and efficacy advantages over currently approved CDK4/6 inhibitors were featured in an abstract published at the American Society of Clinical Oncology (ASCO) Annual Meeting.
  • Each of rigosertib’s investigator-sponsored trials continues to progress. A Phase 2 trial evaluating rigosertib plus pembrolizumab in patients with checkpoint inhibitor refractory metastatic melanoma is on schedule to be initiated in the second half of 2022. The expansion cohort of the Phase 1/2a trial of rigosertib plus nivolumab in patients with KRAS-mutated non-small cell lung cancer continues to enroll patients, with additional data from the trial expected in Q3 2022. The Phase 2 trial of rigosertib monotherapy in advanced squamous cell carcinoma associated with recessive dystrophic epidermolysis bullosa also continues to enroll patients.
  • Mark Guerin was appointed Chief Operating Officer in addition to his role as Chief Financial Officer and Dr. Adar Makovski Silverstein was promoted to Senior Director and Head of Corporate Development.
  • Cash and cash equivalents at June 30, 2022 were $46.5 million, which the Company believes will be sufficient to fund ongoing clinical trials and business operations for at least eighteen months.

Management Commentary

“We saw sustained progress across our pipeline over the past months and are well positioned to complete our current Phase 1 trials as we move through the second half of the year,” said Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova. “Narazaciclib continues to show a favorable safety profile in its Phase 1 studies, which will be key to informing the design of future trials seeking to address the unmet needs posed by the limitations of currently available CDK4/6 inhibitors. These limitations stem from issues related to safety, tolerability, and primary and acquired drug resistance, which we believe narazaciclib’s differentiated inhibitory profile may overcome. We were pleased to publish preclinical data supporting this hypothesis at the most recent ASCO meeting and look forward to continued efforts to translate these promising findings to the clinic.”

Dr. Fruchtman continued, “Alongside narazaciclib’s advancement, we also made key progress in rigosertib’s investigator-sponsored studies. This includes a Phase 2 trial evaluating rigosertib combined with a PD-1 checkpoint inhibitor in checkpoint inhibitor refractory metastatic melanoma which is on schedule to open for enrollment in the second half of 2022. This study seeks to leverage rigosertib’s immunomodulatory effects and is supported by initial data from the ongoing trial of rigosertib plus anti-PD-1 therapy in KRAS-mutated NSCLC. These data provided strong evidence of the studied doublet’s activity in patients who previously failed checkpoint inhibitor therapy, which is a finding we aim to build upon with the presentation of additional data at a medical meeting later this quarter. Data has been presented, which will be updated, demonstrating that responses seen with rigosertib in this setting are agnostic to the type of KRAS mutation present. This upcoming milestone highlights how rigosertib’s investigator-sponsored studies enable the capital efficient pursuit of value creating opportunities to complement our lead narazaciclib program.”

Second Quarter Financial Results

Cash and cash equivalents as of June 30, 2022, were $46.5 million, compared with $55.1 million as of December 31, 2021. The Company believes that its cash and cash equivalents will be sufficient to fund ongoing clinical trials and business operations for at least eighteen months.

Research and development expenses were $2.0 million for the second quarter of 2022, compared with $1.9 million for the second quarter of 2021.

General and administrative expenses were $2.1 million for the second quarter of 2022, compared with $2.9 million for the second quarter of 2021.

Net loss for the second quarter of 2022 was $4.0 million, or $0.19 per share on 20.9 million weighted shares outstanding, compared with a net loss of $4.2 million, or $0.27 per share for the second quarter of 2021 on 15.8 million weighted shares outstanding.

Conference Call and Webcast

Onconova will host an investment community conference call today beginning at 4:30 p.m. Eastern Time, during which management will discuss financial results for the second quarter of 2022, provide a business update, and answer questions. Interested parties can participate by dialing (800) 289-0571 (domestic callers) or (856) 344-9290 (international callers) and using conference ID 3600715.

A live webcast of the conference call will be available in the Investors & Media section of the Company’s website at www.onconova.com. A replay of the webcast will be available on the Onconova website for 90 days following the call.

About Onconova Therapeutics, Inc.

Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation.

Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in two separate and complementary Phase 1 dose-escalation and expansion studies. These trials are currently underway in the United States and China.

Onconova’s product candidate rigosertib is being studied in an investigator-sponsored study program, including in a dose-escalation and expansion Phase 1/2a investigator-sponsored study with oral rigosertib in combination with nivolumab for patients with KRAS+ non-small cell lung cancer.

For more information, please visit www.onconova.com.

Forward-Looking Statements

Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These statements relate to Onconova’s expectations regarding the timing of Onconova’s and investigator-initiated clinical development and data presentation plans, and the mechanisms and indications for Onconova’s product candidates. Onconova has attempted to identify forward-looking statements by terminology including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “preliminary,” “encouraging,” “approximately” or other words that convey uncertainty of future events or outcomes. Although Onconova believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including the success and timing of Onconova’s clinical trials, investigator-initiated trials and regulatory agency and institutional review board approvals of protocols, Onconova’s collaborations, market conditions and those discussed under the heading “Risk Factors” in Onconova’s most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements contained in this release speak only as of its date. Onconova undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Company Contact:
Mark Guerin
Onconova Therapeutics, Inc.
267-759-3680

ir@onconova.us
https://www.onconova.com/contact/

Investor Contact:
Bruce Mackle
LifeSci Advisors, LLC
646-889-1200

bmackle@lifesciadvisors.com

 

ONCONOVA
THERAPEUTICS, INC.

Condensed
Consolidated Balance Sheets

(in
thousands)

 

June 30

 

December 31,

 

 

2022

 

 

 

2021

 

Assets

(unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

46,533

 

 

$

55,070

 

Receivables

 

28

 

 

 

28

 

Prepaid expenses and other current assets

 

1,472

 

 

 

332

 

Total current assets

 

48,033

 

 

 

55,430

 

Property and equipment, net

 

31

 

 

 

38

 

Other non-current assets

 

10

 

 

 

10

 

Total assets

$

48,074

 

 

$

55,478

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,003

 

 

$

2,757

 

Accrued expenses and other current liabilities

 

3,231

 

 

 

3,132

 

Deferred revenue

 

226

 

 

 

226

 

Total current liabilities

 

6,460

 

 

 

6,115

 

Deferred revenue, non-current

 

3,130

 

 

 

3,243

 

Total liabilities

 

9,590

 

 

 

9,358

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

–

 

 

 

–

 

Common stock

 

209

 

 

 

209

 

Additional paid in capital

 

491,181

 

 

 

490,644

 

Accumulated other comprehensive loss

 

(41

)

 

 

(14

)

Accumulated deficit

 

(452,865

)

 

 

(444,719

)

Total stockholders’ equity

 

38,484

 

 

 

46,120

 

Total liabilities and stockholders’ equity

$

48,074

 

 

$

55,478

 

 

 

 

 

 

ONCONOVA
THERAPEUTICS, INC.

Condensed
Consolidated Statements of Operations

(in
thousands, except share and per share amounts)

 

Three Months Ended June 30,

 

Six months months ended June
30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Revenue

$

57

 

 

$

57

 

 

$

113

 

 

$

113

 

Operating expenses:

 

 

 

 

 

 

 

General and administrative

 

2,139

 

 

 

2,850

 

 

 

4,325

 

 

 

5,067

 

Research and development

 

2,038

 

 

 

1,852

 

 

 

4,040

 

 

 

3,789

 

Total operating expenses

 

4,177

 

 

 

4,702

 

 

 

8,365

 

 

 

8,856

 

Loss from operations

 

(4,120

)

 

 

(4,645

)

 

 

(8,252

)

 

 

(8,743

)

 

 

 

 

 

 

 

 

Change in fair value of warrant liability

 

–

 

 

 

427

 

 

 

–

 

 

 

(209

)

Other income (loss,) net

 

96

 

 

 

(13

)

 

 

106

 

 

 

6

 

Net loss

 

(4,024

)

 

 

(4,231

)

 

 

(8,146

)

 

 

(8,946

)

Net loss per share of common stock, basic and diluted

$

(0.19

)

 

$

(0.27

)

 

$

(0.39

)

 

$

(0.59

)

Basic and diluted weighted average shares outstanding

 

20,904,085

 

 

 

15,780,863

 

 

 

20,904,085

 

 

 

15,201,719

 


RCI Hospitality Holdings (RICK) – Another Solid Quarter

Posted on by Admin

Thursday, August 11, 2022

RCI Hospitality Holdings (RICK)
Another Solid Quarter

With more than 60 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, Scarlett’s Cabaret, Diamond Cabaret, and PT’s Showclub. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

3Q22 Results. Revenue hit a record $70.7 million, up 11% sequentially and up 22.2% y-o-y.  We had projected $72 million of revenue. Net income was $13.9 million, or $1.48 per share, compared to $12.3 million, or $1.37 per share last year. Adjusted EPS was $1.60 compared to $1.36. We were at $12.5 million of net income, or $1.33 per share.

Quarterly Drivers. Quarterly results benefited from higher sales, partially due to the acquired clubs, a continued rebound in Nightclubs service revenue, and sequential improvement in Bombshells….

This Company Sponsored 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. 

Inflationary and Deflationary Cryptocurrency Tokens

Posted on by Admin 

Image Credit: SUN ZU Lab


What is Tokenomics and Why Does it Matter?

Tokenomics historical perspective. Let’s start this article with the famous experience of Philip II, King of Spain in the 16th century, with the Eldorado discovery and the massive rise in inflation that followed throughout the entirety of Europe!  

In the 16th century, Spain conquered Latin America and discovered an immeasurable wealth within gold and silver mines. The kingdom hit the jackpot, and its financial deficits appeared long behind it. This wasn’t the case, nevertheless, the problem came from the fact that the Crown of Spain was over-indebted to many European creditors, leading the massive silver and gold discoveries to only make a quick passage through Spain before enriching the coffers of its French and Dutch neighbors. The European market ended up being flooded with coins so that the immense Spanish wealth was diminished relative to other European kingdoms.

In the end, the excessive amount of silver and gold imported, and above all distributed, in Europe caused an important devaluation of what Philip II could think of as his Eldorado. A better financial management could have allowed him to preserve his reserves of invaluable minerals and thus be able to develop on a more important scale of time his fabulous treasure.

This story shows the importance of the quantity put into circulation on the valuation of an asset. This analysis works perfectly for the cryptocurrency market as well; any analysis of an asset’s ecosystem requires careful attention to the notions of quantity in circulation, total quantity, and inflation management.

 

Inflation and the Importance of Tokenomics

While the media usually describes inflation as a rise in the price of everyday consumer goods, it is in reality, the value of money that tends to fall rather than prices getting higher. This notion of inflation is at the heart of tokenomics, a merger of “token” and “economics” used to refer to all the elements that make a particular cryptocurrency valuable and interesting to investors. In this regard, there exist two predominant models: deflationary and inflationary tokens.


The Limited Quantity Deflationary Model

This is the model used by Bitcoin, i.e. a fixed total supply and less and less money issued over time. Many cryptocurrencies are governed under this model, like Solana, Litecoin, Tron, and many others, alongside the king of cryptos.

In the case of Bitcoin, for example, a block is mined about every 10 minutes, rewarding the miner 6.25 BTC (when Bitcoin started it was 50 BTC per block, then 25, 12.5, 6.25, etc). The reward is halved every 210K blocks, leading to a halving every 4 years with the 10 minutes mining-time per block assumption. Without changes to the protocol, the final Bitcoin will be mined around the year 2140.


The Balanced Inflation Model

Many blockchains have been coded without incorporating a limited amount of token issuance. This choice can be made for a variety of reasons, usually involving the use to be made of the blockchain in question. The Ethereum protocol for example, operates under this model. However, some mechanisms are put in place to limit inflation or even to create a deflationary system.

This is the objective of the implementation of future updates of the Ethereum network: while the annual rate of ETH tokens issuance is currently equal to nearly 4.5%, the switch from Proof of Work to Proof of Stake should allow developers to reduce this rate to less than 1%. The network introduced as well a burn mechanism, meaning that part of the fees paid by Ethereum users in the future will not be returned to validators but will be removed altogether. This could not only achieve a balance with the issuance rate but potentially lead to a decrease in the number of tokens in circulation in case of high network usage.

Both models have their strengths and weaknesses, with good justifications behind their use. For example, the Ethereum white paper indicates that a stable issuance rate would prevent the excessive concentration of wealth in the hands of a few actors/validators. Whereas Bitcoin’s deflationary system, as previously stated, allowed for the growing development of its ecosystem by paying miners large amounts of Bitcoin when it was not worth the tens of thousands of dollars it is worth today.

More generally, it is always a good idea to look into a project’s tokenomics before getting involved. This can help answer questions like:

  • What is the current token supply as well as total supply?
  • Does the token have an inflationary or deflationary model?
  • What is the real-world use case?
  • Who owns the majority of coins? Is it well spread out or concentrated?

 

Main Differences Between Deflationary and Inflationary
Tokens

Solana Case Study

Let’s take a deep dive into one of the most prominent blockchains’ tokenomics. Solana has a native token called SOL that has two primary use cases within the network:

Staking: users can stake their SOL either directly on the network or delegate their holding to an active validator to help secure the network. In return, stakers will receive inflation rewards.

Transaction Fees: users can use SOL to pay fees related to transaction processing or running smart contracts.

The Solana team distributed tokens in five different funding rounds, four of which were private sales. These private sales began in Q1 2019 and culminated in a $20 million Series A led by Multicoin Capital, announced in July 2019. Additional participants included Distributed Global, BlockTower Capital, Foundation Capital, Blockchange VC, Slow Ventures, NEO Global Capital, Passport Capital, and Rockaway Ventures. The firms received SOL tokens in exchange for their investments, although the number of tokens allocated to investors was not disclosed.

The initial distribution of SOL tokens was as follows:

According to Messari data, vesting schedules were as follows: Solana’s three pre-launch private sales all came with a nine-month lockup after the network launched. The project’s public auction sale (held in March 2020) did not come with a lockup schedule, and the SOL tokens distributed in that sale were fully liquid once the network launched. The founder’s allocation (13% of the initial supply) was also subject to a nine-month lockup post-network launch. After the lockup period ends, these tokens will vest monthly for another two years (expected to fully vest by January 2023). This last clause is good protection for investors as team members’ tokens are locked up for a longer period. The Grant Pool and Community Reserve (both overseen by the Solana Foundation) contain ~39% of the initial SOL supply combined. These allocations began to vest in small amounts since Solana’s main net launch.

Inflation stands at an initial annual inflation rate of 8%. However, this inflation rate will decrease at an annual rate of 15% (“dis-inflation rate”). The inflation decrease is thus non-linear and much more important in the first years. Solana’s inflation rate will continue to decrease until it reaches an annual rate of 1.5%, which the network should reach in about ten years or 2031. 1.5% will remain the long-term inflation rate for Solana unless the network’s governance system votes to change it.


Source: docs.solana

Major identified issues with current projects’ tokenomics:

Is it Really that Decentralised?

Using the Solana example, we can see that more than 50% of the tokens in circulation are concentrated, during a long period after the project’s launch, in the hands of the core team, VCs and early investors. This is hardly an exception to Solana as similar distributions are very common within the blockchain ecosystem projects. Can we talk seriously about the benefits of blockchain decentralization with such capital and governance concentration without forgetting technical knowledge concentration as well?

 

What Happens After the End of the Lock-Up Period?

Blockchain projects often come with varying lock-up periods that can last from less than a year to five years for early investors and the founding team, who usually cash out their investments after this period. What we identify as a significant issue after the end of the lock-up period is the huge and asymmetric risk-return transfer between this first group, which realized a pretty good return on their initial investments and are completely de-risked at this stage, and retail investors joining the project at a stage where core decision-makers are no longer incentivized to ensure the well-functioning of the project.

 

What Rights for Token Investors?

Cryptocurrency projects often use ICOs (Initial Coin Offering), among other fundraising techniques, to raise funds through the issue of crypto-assets in exchange for either fiat currency or an established cryptocurrency like bitcoin or ether. The issuing entity usually accounts for digital assets collected as an intangible asset, or as a financial instrument in the case of stablecoins for example, as they are redeemable for cash. The accounting for tokens distributed on the other hand, depends on the promise given to investors under the terms of the ICO, which could include: free or discounted access to the entity’s goods or services for a specified or indefinite period of time; a share of the profits of the entity or access to an exchange through which it can transact with other users of the exchange in buying goods or services. Digital asset projects may also offer equity tokens, which are a type of security tokens that work more like a traditional stock asset, giving their holders some form of ownership in their investments. The use of these equity instruments remains restricted, nevertheless raising the question of the rights and guarantees given to retail investors in particular in exchange for the funds given to the cryptocurrency project.  

 

VC Double-Dipping Practices

What we refer to as double-dipping practices, in this case, relates to VCs investing in cryptocurrency projects and realizing important capital gains on their equity shares as well as digital token holdings. This privilege is almost unique to the cryptocurrency ecosystem, raising some questions again about asymmetric information advantages against retail investors: compared to traditional VC funding, crypto VC investors enjoy a double economic as well as governance advantage, having control over token and equity.

 

Conclusion

Tokenomics is an important aspect of cryptocurrency, which covers almost anything to do with the token. Professional as well as retail investors should spend a lot of time studying a project’s tokenomics before investing to be well aware of the financial and governance rights attributed to them via the token purchase. There is an absolute need in our view for regulation on this particular topic to evolve in order to provide better transparency and, eventually, protection levels for investors.

This article was republished with permission from the SUN ZU Lab website. It was authored by Chadi El Adnani, Crypto
Research Analyst at SUN ZU Lab.


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Release – Harte Hanks Generates 180 Percent Increase in Operating income, Delivers $0.52 in EPS for the Second Quarter of 2022

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Harte Hanks Generates 180 Percent Increase in Operating income, Delivers $0.52 in EPS for the Second Quarter of 2022

Research, News, and Market Data on Harte Hanks

CHELMSFORD, MA / ACCESSWIRE / August 11, 2022 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for nearly 100 years, today announced financial results for the second quarter, the period ended June 30, 2022.

Harte Hanks CEO, Brian Linscott, commented: “Harte Hanks delivered solid improvements in EBITDA and Operating Income, even with the expected runoff of certain pandemic-related projects that concluded during the second quarter. Despite the macro-economic environment, demand for customer care and fulfillment and logistics services continues to grow, giving us increasing confidence that we can grow our top-line this year and drive significant improvements in operating income and cash generation for the full-year.”

“In addition to the significant improvement in our operating results, we took steps to streamline our capital structure, eliminating the dilutive impact to common shareholders,” continued Linscott. “We have agreed to repurchase all Preferred Stock currently outstanding, which will provide greater flexibility with our capital to further maximize shareholder value.”

Second Quarter Financial Highlights

  • Revenues decreased by 1.4% to $48.6 million, compared to $49.3 million in the same period in the prior year.
  • Fulfillment & Logistics Services grew 24.3%, partially offsetting declines in customer care and marketing services revenue related to sunsetting pandemic-related projects.
  • Operating income of $4.0 million, compared to operating income of $1.4 million in the same period in the prior year, an increase of 179.5%.
  • Net income of $4.5 million, compared to net income of $10.6 million, inclusive of a $10.0 million non-recurring gain for the extinguishment of the Company’s PPP loan, in the same period in the prior year.
  • Diluted EPS of $0.52 for the second quarter of 2022 vs. $1.27 for the same period in the prior year.
  • EBITDA improved to $4.6 million compared to $2.1 million in the same period in the prior year.[1]

Segment Highlights

  • Customer
    Care, $15.4 million in revenue, 32% of total     – Revenue decreased by 19.8%, or $3.8 million, from the prior year quarter, and year-over-year EBITDA decreased by 25.6% to $2.5 million from $3.4 million. New business wins for the quarter included:
    • An existing client that leveraged Harte Hanks for its back-office, ticket processing and ticket sharing capabilities has awarded Harte Hanks all of its customer facing functions including phone, email and chat. The growth with this client has been driven by consistent delivery, execution efficiency, and high customer satisfaction scores.
  • Harte Hanks was awarded a new business assignment by a leading employee screening services company to provide a wide scope of B2B sales and marketing support services. Harte Hanks was selected based on its strong track record of providing seamless support and integration with B2B sales operations seeking to accelerate their growth. As part of the program, Harte Hanks will provide our client’s sales team with a range of services to enhance their B2B sales efforts, including new lead generation, appointment setting, education and nurturing, and sales performance tracking.
  • Fulfillment
    & Logistics Services, $19.7 million in revenue, 40% of total     – Revenue increased by 24.3%, or $3.9 million, compared to the prior year quarter; and year-over-year EBITDA improved 91.7% to $3.2 million from $1.7 million. New business wins for the quarter included:
  • A leading branding company selected Harte Hanks Fulfillment to manage the mass production, kitting, and distribution of 600k+ holiday sample kits for a Fortune 50 retail partner. This new relationship has already led to multiple follow-on production runs across their kitting and fulfillment network, directly supporting additional retailers and national brands looking for innovative ways to get products into the hands of their consumers.
  • An existing Customer Care client leveraged our Fulfillment expertise to build and deliver thousands of promotional kits to ‘High Value Customers’, timed to coincide with and promote their major monthly televised events.
  • Marketing
    Services, $13.5 million in revenue, 28% of total     – Revenue decreased by 5.3% compared to the prior year quarter but year-over-year EBITDA improved 5.1% to $1.8 million from $1.7 million. New business wins for the quarter included:
  • A regional bank selected Harte Hanks to provide digital media planning and buying, creative, strategy and content development leveraging our strong expertise in this category, effective creative product, and ability to provide the full array of services needed.

Consolidated Second Quarter 2022 Results

Second quarter revenues were $48.6 million, down 1.4% from $49.3 million in the second quarter of 2021. The Company’s Fulfillment & Logistics Services segment grew, largely offsetting declines in Marketing Services and Customer Care.

Second quarter operating income was $4.0 million, compared to operating income of $1.4 million in the second quarter of 2021. The improvement resulted from margin expansion, the elimination of low-margin revenue, and cost-reduction initiatives.

Net income for the quarter was $4.5 million, compared to net income of $10.6 million in the second quarter last year. Last year’s second quarter included a non-recurring $10.0 million gain related to the extinguishment of its PPP loan. Absent this non-operational gain, net income would have been $0.6 million. Income attributable to common stockholders for the second quarter was $3.8 million, or $0.54 per basic share and $0.52 per fully diluted share, compared to net income attributable to common shareholders of $9.1 million, or $1.36 per basic share and $1.27 per fully diluted share during the prior year second quarter.

Consolidated Year-To-Date 2022 Results

Revenues for the first six months of 2022 were $97.6 million, up 5.0% from $93.0 million last year. Year-to-date operating income was $7.9 million, compared to operating income of $0.6 million last year. Net income for the first six months of 2022 was $7.8 million, compared to net income of $8.8 million (inclusive of the $10.0 million gain), last year. Income attributable to common stockholders for the first six months was $6.6 million, or $0.94 per basic share and $0.91 per fully diluted share, compared to net income attributable to common shareholders of $7.4 million, or $1.12 per basic share and $1.05 per fully diluted share.

Balance Sheet and Liquidity

Harte Hanks ended the quarter with $12.9 million in cash, cash equivalents and restricted cash, compared to $15.1 million at December 31, 2021. At June 30, 2022, the Company had no short-term debt, $10.0 million in long-term debt and $50.7 million in outstanding long-term pension liability. On December 31, 2021, the Company had no short-term debt, $5 million in long-term debt and $52.5 million in outstanding long-term pension liability.

The company anticipates receiving a Federal income tax refund related to a net operating loss (NOL) carryback claim of $7.6 million in 2022 which will further enhance liquidity.

On June 30, 2022, Harte Hanks entered into a share repurchase agreement with Wipro, LLC d/b/a Wipro US Branch IT Services, a Delaware limited liability company (“Wipro”), pursuant to which, Harte Hanks will repurchase all 9,926 shares of the Company’s Series A Convertible Preferred Stock currently outstanding (the “Preferred Stock”) in exchange for (i) a cash payment equal to their liquidation value, or total cash payment of $9.9 million and (ii) 100,000 shares of the Company’s common stock, par value $1.00 per share (the “Common Stock”). Harte Hanks will fund the cash portion of the repurchase consideration with a combination of cash and cash equivalents on hand and borrowings under the Company’s credit facility.

Conference Call Information

The Company will host a conference call and live webcast to discuss these results today at 4:30 p.m. EST. Interested parties may access the webcast at https://investors.hartehanks.com/events or may access the conference call by dialing in the United States (800) 445-7795 or internationally (785) 424-1699 and access code is HARTE.

A replay of the call can also be accessed via phone through August 25, 2022 by dialing (877) 481-4010 from the U.S., or (919) 882-2331 from outside the U.S. The conference call replay passcode is 46246.

About Harte Hanks:

Harte Hanks (NASDAQ:HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers.

Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands, including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,500 employees in offices across the Americas, Europe, and Asia Pacific.

For more information, visit hartehanks.com

As used herein, “Harte Hanks” or “the Company” refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks’ logo and name are trademarks of Harte Hanks.

Cautionary Note Regarding Forward-Looking Statements:

Our press release and related earnings conference call contain “forward-looking statements” within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “seeks,” “could,” “intends,” or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) the outbreak of diseases, such as the COVID-19 coronavirus, which has curtailed travel to and from certain countries and geographic regions, created supply chain disruption and shortages, disrupted business operations and reduced consumer spending, (ii) market conditions that may adversely impact marketing expenditures, (iii) the impact of the Russia/Ukraine conflict on the global economy and our business, including impacts from related sanctions and export controls and (iv) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (b) the demand for our products and services by clients and prospective clients, including (i) the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (ii) our ability to predict changes in client needs and preferences; (c) economic and other business factors that impact the industry verticals we serve, including competition and consolidation of current and prospective clients, vendors and partners in these verticals; (d) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (e) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (f) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (g) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (h) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (i) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (j) the number of shares, if any, that we may repurchase in connection with our repurchase program; (k) unanticipated developments regarding litigation or other contingent liabilities; (l) our ability to complete anticipated divestitures and reorganizations, including cost-saving initiatives; (m) our ability to realize the expected tax refunds; and (n) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 which was filed on March 21, 2022. The forward-looking statements in this press release and our related earnings conference call are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future.

Supplemental Non-GAAP Financial Measures:

The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, the Company may use certain non-GAAP measures of financial performance in order to provide investors with a better understanding of operating results and underlying trends to assess the Company’s performance and liquidity in this press release and our related earnings conference call. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure.

The Company presents the non-GAAP financial measure “Adjusted Operating Income (Loss)” as a measure useful to both management and investors in their analysis of the Company’s financial results because it facilitates a period-to-period comparison of Operating Revenue and Operating Income (Loss) by excluding restructuring expense, impairment expense and stock-based compensation. The most directly comparable measure for this non-GAAP financial measure is Operating Income (Loss).

The Company presents the non-GAAP financial measure “EBITDA” as a supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. The Company defines “Adjusted EBITDA” as earnings before interest expense net, income tax expense (benefit) and depreciation expense. The most directly comparable measure for EBITDA is Net Income (Loss). We believe EBITDA is an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash items, including items which do not directly correlate to our business operations; however, we urge investors to review the reconciliation of non-GAAP EBITDA to the comparable GAAP Net Income (Loss), which is included in this press release, and not to rely on any single financial measure to evaluate the Company’s financial performance.

The use of non-GAAP measures do not serve as a substitute and should not be construed as a substitute for GAAP performance but should provide supplemental information concerning our performance that our investors and we find useful. The Company evaluates its operating performance based on several measures, including this non-GAAP financial measures. The Company believes that the presentation of this non-GAAP financial measures in this press release and earnings conference call presentations are useful supplemental financial measures of operating performance for investors because they facilitate investors’ ability to evaluate the operational strength of the Company’s business. However, there are limitations to the use of this non-GAAP measures, including that they may not be calculated the same by other companies in our industry limiting their use as a tool to compare results. Any supplemental non-GAAP financial measures referred to herein are not calculated in accordance with GAAP and they should not be considered in isolation or as substitutes for the most comparable GAAP financial measures.

EBITDA is the Company’s measure of segment profitability.

Investor Relations Contact:

Rob Fink

FNK IR
HHS@fnkir.com
646-809-4048

SOURCE: Harte Hanks, Inc.

View source version on accesswire.com:
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Release – Lineage Cell Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

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Lineage Cell Therapeutics Reports Second Quarter 2022 Financial Results and Provides Business Update

Research, News, and Market Data on Lineage Cell Therapeutics

  • Advanced RG6501 (OpRegen®)
    Development in Partnership with Roche and Genentech
  • Published OPC1 Phase 1/2a Clinical Study
    Results in Journal of Neurosurgery: Spine
  • Completed Key Activities to Support Planned
    Regulatory Interactions for OPC1 and VAC2
  • Expanded Collaboration with Advanced BioMatrix
    for HyStem    ® Cell Drug Delivery Technology
  • Cash, Cash Equivalents, and Marketable
    Securities of $72.0 Million as of June 30,
    2022 Expected to Provide Capital Through Q2 2024

CARLSBAD, Calif.–(BUSINESS WIRE)–Aug. 11, 2022– Lineage Cell
Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, today reported financial and operating results for the second quarter of 2022. Lineage management will host a conference call and webcast today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time to discuss its second quarter 2022 financial and operating results and to provide a business update.

“We are pleased with the progress on RG6501 (OpRegen) product development under our collaboration with Roche and Genentech. During the second quarter this year, we have made progress across multiple functional areas, including clinical, regulatory, and technology transfer activities,” stated Brian M. Culley, Lineage CEO. “As we continue to position Lineage as a leader in regenerative medicine through the transplant of specific cell types, our focus is on completing the necessary clinical, regulatory and related activities which can create value and reduce risk across our portfolio of five cell transplant assets. In particular, our efforts have been focused on preparing for OPC1 and VAC2 regulatory interactions to enable their next phases of clinical testing in spinal cord injury and oncology, respectively. In parallel, we are advancing our auditory neuron and photoreceptor programs through preclinical development activities which are necessary to support initial clinical testing. We believe our disciplined use of capital and our increased strategic business development activities can support multiple years of growth and the achievement of important milestones in the months and years to come.”

Second quarter milestones and activities included:

– RG6501 (OpRegen)

  • Continued execution under our collaboration with Roche and Genentech across multiple functional areas, including:
    • Conducting additional OpRegen manufacturing runs and supporting Chemistry Manufacturing and Controls (CMC) activities.
    • Continuing technology transfer activities.
    • Actively participating in both Joint Advisory and Joint Manufacturing Committees, forums for discussion and planning with respect to next steps in clinical development and related activities.
  • Continuing long-term follow-up of patients from the Phase 1/2a clinical study of OpRegen:
    • Enrolled patients have continued to do well, supporting multi-year durability of a treatment effect with RG6501 (OpRegen).

– OPC1

  • Results from a Phase 1/2a clinical study in subacute cervical spinal cord injury were 
    published in the 
    Journal of Neurosurgery: Spine;

    • OPC1 has demonstrated an excellent safety profile, and at one-year post-treatment, 96% of patients had recovered one or more levels of neurological function on at least one side of their body, and 32% of patients had recovered two or more levels of neurological function on at least one side of their body.
  • Preclinical testing of a new thaw and inject formulation of OPC1, manufactured via an improved and larger-scale process, has demonstrated functional recovery, improvement in gait coordination and motor performance with a reduction of the area of cavitation.
  • A majority of the verification and validation activities for the novel parenchymal spinal delivery (PSD) system, and its preclinical testing in support of a regulatory submission have been completed.
  • Preclinical activities to support upcoming regulatory interactions are near completion.
  • Engagement with the California Institute of Regenerative Medicine (CIRM), as well as various patient advocacy organizations and patient advocates, is underway.

– VAC2

  • Following technology transfer of the program from Cancer Research UK (CRUK) to Lineage and improvement of manufacturing processes, production scale was increased and accordingly the cost of goods has been reduced significantly, along with marked improvements in the purity and functionality of the manufactured material.
  • CRUK continues to follow patients on the Phase 1 NSCLC clinical study; Lineage has received all necessary clinical information from CRUK required to support U.S., or other, regulatory interactions.

– ANP1 & PNC1

  • Preclinical activities are continuing, including thought leader engagement to support future preclinical testing.

– Business Development

  • Broadened collaboration with Advanced BioMatrix, a division of BICO Group AB (STO: BICO), for the HyStem delivery technology to include clinical/commercial GMP (Good Manufacturing Practice) material, increasing the milestone payments and royalty percentages due to Lineage upon ABM reaching certain development milestones and/or product sales.
  • Continued work under our collaboration with our strategic partner, Immunomic Therapeutics (“ITI”); currently awaiting decision on next steps for ITI’s allogeneic cell-based cancer immunotherapy for the treatment of glioblastoma based on the VAC platform.

Some of the key upcoming milestones and activities anticipated
by Lineage include:

– Planned interaction with FDA in Q4 2022 to discuss an OPC1 IND amendment submission to enable clinical performance and safety testing of a novel PSD system.

– A pre-IND regulatory interaction in Q4 2022 to seek feedback on a VAC2 CMC, nonclinical, and clinical package to support U.S. clinical development; pre-IND briefing package submission in Q3 2022.

– Submission of a grant application to the California Institute for Regenerative Medicine (CIRM) for the continued support of the clinical development of OPC1.

– Clinical data update from the ongoing VAC2 Phase 1 non-small cell lung cancer (NSCLC) study, pending release from CRUK.

– Preclinical activities for both the ANP1 and PNC1 programs.

– Additional OPC1 publications, including preclinical study results utilizing a new thaw and inject formulation of OPC1, manufactured via an improved and larger-scale process.

– An additional OPC1 manuscript from a Phase 1/2a clinical study in subacute cervical spinal cord injury, focused on MRI data.

– Evaluation of new partnership opportunities and/or expansion of existing collaborations.

– Continued participation in investor and partnering meetings and medical and industry conferences to broaden awareness of our mission and accomplishments.

Balance Sheet Highlights

Cash, cash equivalents, and marketable securities totaled $72 million as of June 30, 2022, which is expected to support operations through Q2 2024.

Second Quarter Operating Results

Revenues: Lineage’s revenue is generated primarily from licensing fees, royalties, collaboration revenues, and research grants. Total revenues for the three months ended June 30, 2022 were approximately $4.6 million, a net increase of $4.0 million as compared to $0.5 million for the same period in 2021. The increase was primarily related to licensing fees recognized from deferred revenues in connection with the $50.0 million upfront licensing payment received in the first quarter of 2022 from Roche.

Operating Expenses: Operating expenses are comprised of research and development (“R&D”) expenses and general and administrative (“G&A”) expenses. Total operating expenses for the three months ended June 30, 2022 were $8.6 million, an increase of $1.1 million as compared to $7.5 million for the same period in 2021.

R&D Expenses: R&D expenses for the three months ended June 30, 2022 were $3.3 million, a net increase of $0.4 million as compared to $2.9 million for the same period in 2021. The net increase was driven by $0.1 million in higher OpRegen related expenses to support the Roche Collaboration. Another $0.2 million and $0.1 million of the increase was related to R&D spending on the new auditory neuron and photoreceptor cell therapy programs, respectively.

G&A Expenses: G&A expenses for the three months ended June 30, 2022 were $5.3 million, a net increase of approximately $0.7 million as compared to $4.5 million for the same period in 2021. The increase was primarily attributable to $0.4 million in payroll and related benefits expense, and $0.5 million in share-based compensation, partially offset by $0.2 million in lower investor relations expense.

Loss from Operations: Loss from operations for the three months ended June 30, 2022 was $4.2 million, a decrease of $2.9 million as compared to $7.1 million for the same period in 2021.

Other Income/(Expenses), Net: Other income (expenses), net for the three months ended June 30, 2022 reflected other expense, net of ($2.5) million, compared to other income, net of $2.1 million for the same period in 2021. The net change was primarily driven by exchange rate fluctuations related to Lineage’s international subsidiaries, as well as a decrease in the value of marketable equity securities, and partially offset by the gain on extinguishment of debt from Lineage’s Paycheck Protection Program loan forgiveness recognized in the prior year’s quarter.

Net Loss Attributable to Lineage: The net loss attributable to Lineage for the three months ended June 30, 2022 was $6.8 million, or $0.04 per share (basic and diluted), compared to a net loss attributable to Lineage of $4.8 million, or $0.03 per share (basic and diluted), for the same period in 2021.

Conference Call and Webcast

Interested parties may access today’s conference call by dialing (800) 715-9871 from the U.S. and Canada and (646) 307-1952 from elsewhere outside the U.S. and Canada and should request the “Lineage Cell Therapeutics Call” or provide conference ID number 6448886. A live webcast of the conference call will be available online in the Investors section of Lineage’s website. A replay of the webcast will be available on Lineage’s website for 30 days and a telephone replay will be available through August 18, 2022, by dialing (800) 770-2030 from the U.S. and Canada and entering conference ID number 6448886.

About Lineage Cell Therapeutics, Inc.

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in development for the treatment of geographic atrophy secondary to age-related macular degeneration, is being developed under a worldwide collaboration with Roche and Genentech, a member of the Roche Group; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer; (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy; and (v) PNC1, a photoreceptor neural cell therapy for the treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.

Forward-Looking Statements

Lineage cautions you that all statements, other than statements of historical facts, contained in this press release, are forward-looking statements. Forward-looking statements, in some cases, can be identified by terms such as “believe,” “aim,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “can,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “contemplate,” “project,” “target,” “tend to,” or the negative version of these words and similar expressions. Such statements include, but are not limited to, statements relating to: our ability to support our operations for at least two years with our existing cash, cash equivalents and marketable securities; our ability to create value and reduce risk across our portfolio; our ability to support multiple years of progress and achieve important milestones; our collaboration and license agreement with Roche and Genentech and the potential to receive milestone and other consideration thereunder; the potential benefits of treatment with OpRegen; the potential future achievements of our clinical and preclinical programs; the timing of anticipated FDA interactions, preclinical activities, clinical trials, and clinical data updates related to our programs, and the submission of a grant application to the CIRM; plans and expectations regarding publications relating to our programs; plans and expectations regarding potential new partnership opportunities and existing collaborations; our ability to broaden awareness of our mission and accomplishments; plans and expectations regarding our products in development. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Lineage’s actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements in this press release, including, but not limited to, the following risks: that we may need to allocate our cash to unexpected events and expenses causing us to use our cash more quickly than expected; that positive findings in early clinical and/or nonclinical studies of a product candidate may not be predictive of success in subsequent clinical and/or nonclinical studies of that candidate; that competing alternative therapies may adversely impact the commercial potential of OpRegen; that Roche and Genentech may not successfully advance OpRegen or be successful in completing further clinical trials for OpRegen and/or obtaining regulatory approval for OpRegen in any particular jurisdiction; that we may not establish new partnerships or expand existing collaborations; that we do not successfully broaden awareness of our mission or accomplishments; that Lineage may not be able to manufacture sufficient clinical quantities of its product candidates in accordance with current good manufacturing practice; and those risks and uncertainties inherent in Lineage’s business and other risks discussed in Lineage’s filings with the Securities and Exchange Commission (SEC). Lineage’s forward-looking statements are based upon its current expectations and involve assumptions that may never materialize or may prove to be incorrect. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Further information regarding these and other risks is included under the heading “Risk Factors” in Lineage’s periodic reports with the SEC, including Lineage’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC and its other reports, which are available from the SEC’s website. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Lineage undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005126/en/

 

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

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

Source: Lineage Cell Therapeutics, Inc.

 


Release – (SHWZ) Schwazze Announces Second Quarter Results

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Schwazze Announces Second Quarter Results

Research, News, and Market Data on Schwazze

Record Quarterly Revenue and Adjusted EBITDA

Revenue Increases 44% to $44.3 Million Compared to $30.7 Million
in Q2 2021

Adjusted EBITDA of $15 Million, 33.9% of Revenue

Revised Guidance Driven by Short-Term, Challenging Colorado
Market Conditions
Q4 2022 Projected Revenue Annualized Run Rate: $175 Million – $200 Million
Q4 2022 Projected Adjusted EBITDA Annualized Run Rate: $60 Million – $72
Million

Conference Call & Webcast Scheduled for Today – 5:00 pm EDT

DENVER, Aug. 11, 2022 /PRNewswire/ – Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced financial results for the second quarter ended June 30, 2022 (“Q2 2022”).

Q2 2022 Financial
Summary:

  • Revenues of $44.3 million increased 44% compared to $30.7 million in second quarter ended June 30, 2021 (“Q2 2021”)
  • Retail sales were $38.1 million up 77% when compared to Q2 2021
  • Gross Margin of $25.2 million was up 69% compared to $14.9 million in Q2 2021, this quarter was affected by $0.2M in purchase accounting
  • Net Income was $33.8 million compared to a Net Income of $4.4 million for the same period last year
  • Adjusted EBITDA of $15 million was 33.9% of revenue, compared to $10 million for the same period last year
  • Colorado two year stacked IDs for Q2 2022 compared to Q2 2021 and Q2 2020 for same store sales(1) were 1.8% and one year IDs(1) were (12.7%) comparing Q2 2022 to Q2 2021
    • Average basket size (1) for Q2 2022 was $59.98 down 4.1% compared to Q2 2021
    • Recorded customer visits (1) for Q2 2022 totaled 444,771 down 8.9%, compared to Q2 2021
  • New Mexico two year stacked IDs for Q2 2022 compared to Q2 2021 and Q2 2020 for same store sales(1) were 41.0% and one year IDs(1) were 30.4% comparing Q2 2022 to Q2 2021
    • Average basket size (1) for Q2 2022 was $54.56 down 12.7% compared to Q2 2021
    • Recorded customer visits (1) for Q2 2022 totaled 209,591 up 49.4%, compared to Q2 2021

Accomplishments
Since December 2021, Schwazze has closed acquisitions adding 15 cannabis dispensaries, 10 in New Mexico and five in Colorado as well as four cultivation facilities in New Mexico and one in Colorado and one manufacturing asset in New Mexico.

  • Closed Acquisition of Urban Health & Wellness Assets
  • Listed Common Stock on the NEO Exchange
  • Closed Acquisition of Brow 2 LLC Assets
  • Closed Acquisition of Emerald Fields
  • Added President of New Mexico Division
  • Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
  • Added to Key Senior Leadership Team
  • Closed Acquisition of Drift Assets

Justin Dye, Chairman and CEO of Schwazze stated
, “Similar to the rest of the country, the cannabis industry in
Colorado is also experiencing a slowdown in growth compared to the last couple
of years. Schwazze, however, is demonstrating that our regional strategy, built
on a customer first approach, developing significant scale, building brands and
leveraging data analytics and technology is not only sound but gaining momentum
as demonstrated by revenue and unit sales growth, customer loyalty and by once
again outpacing the legacy market growth by approximately 12%.  We believe
this model will travel well to other states as we find attractive
opportunities. Despite share price weakness driven by broader market
influences, we remain bullish on our business and have conviction that as
Schwazze continues to deliver superior operating results that our shareholders
will be rewarded.”

Justin continued, “As we look to
the future, we expect continued growth in Colorado and New Mexico through both
organic and inorganic means. Our operations continue to mature and gain
momentum, and we firmly believe that we are winning in our markets. Our team
will continue to focus on growing profitably and generating cash flow from
operations.  When positive federal legislation is passed, Schwazze will be
well-positioned as a market leader to take advantage of banking services and
institutional investment.”

Q2 2022 Revenue
Revenues for the three months ended June 30, 2022, totaled $44.3 million, including (i) retail sales of $38.1 million (ii) wholesale sales of $6.1 million and (iii) other operating revenues of $43,750, compared to revenues of $30.7 million, including (i) retail sales of $21.5 million, (ii) wholesale of $9.2 million, and (iii) other operating revenues of $16,844 during the three months ended June 30, 2021, representing an increase of $13.5 million or 44%. This increase was due to increased sale of our products as well as execution of our growth through acquisition initiatives. In the second quarter of 2022, the Company acquired one additional retail dispensary, which generated additional retail revenue. Additionally, recreational marijuana sales became legal in New Mexico in April 2022, which increased sales volume and revenues in New Mexico. Wholesale revenues in Colorado decreased due to increased cultivation capacity in the state resulting in an over-supply of wholesale cannabis materials.

Cost of goods and services for the three months ended June 30, 2022, totaled $19.1 million compared to cost of services of $15.8 million during the three months ended June 30, 2021, representing an increase of $3.3 million or 21%. The increase in cost of goods is driven by the increase in revenue, however not at the same rate. In the quarter, the Company experienced a reduction in costs driven by vertical integration and third-party price negotiations.

Gross profit increased to $25.2 million for Q2 2022 compared to $14.9 million during the same period in 2021. Gross profit margin increased as a percentage of revenue from 48.5% to 56.8%, and net of purchase accounting, the gross margin increased to 57.4%.  This positive result, net of purchase accounting continues to reflect our consolidated purchasing approach, the implementation of our retail playbook, and vertical product sales in New Mexico.

Operating expenses for the three months ended June 30, 2022, totaled $16.1 million, compared to operating expenses of $10.5 million during the three months ended June 30, 2021, representing an increase of $5.6 million or 54%. This increase is due to increased selling, general and administrative expenses, professional service fees, salaries, benefits, and related employment costs driven by growth from acquisitions.

Other income for the three months ended June 30, 2022, totaled $29.2 million compared to $0.2 million during the three months ended June 30, 2021, representing an increase in income of $29 million or 18,435%. The increase in other income is due to the revaluation of the derivative liability related to the Investor Notes, offset by higher interest payments.

The Company generated net income for the three months ended June 30, 2022, of $33.8 million, compared to net income of $4.4 million for the three months ended June 30, 2021.

Adjusted EBITDA for Q2 2022 was $15 million representing 33.9% of revenue, compared to $10 million and 32.6% of revenue for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details. 

For six months ending June 30, 2022, the Company used cash for operations of ($8.0) million compared to generating cash of $1.4 million for the same period in 2021.  The Company has cash and cash equivalents of $33.9 million at the end of Q2 2022. 

Nancy Huber, CFO for Schwazze commented, ”
During Q2 we focused on completing integration of our acquisitions and
made sure that we used our resources effectively. We are focused on reducing
operating and SG&A expenses and judiciously investing growth capital to
ensure adequate liquidity and profitability despite difficult market conditions
in Colorado, which we believe to be transitory and temporary. Our balance sheet
remains strong, and we have ample liquidity.  We are focused on delivering
positive cash flow net of acquisition costs for the year while driving organic
growth and making smart acquisitions.”

2022 Guidance

The Company has revised its guidance for a fourth-quarter 2022 (Q4 2022) annualized run rate, which excludes transactions that are announced but not closed.  Q4 2022 revenue annualized run rate is projected to be $175 million to $200 million, and the Q4 2022 adjusted EBITDA annualized run rate is projected to be from $60 million to $72 million.  

NOTES:

(1)  Schwazze did not own all the
assets and entities in part of 2021, 2020 and 2019 and is using unaudited
numbers for this comparison.


Adjusted EBITDA represents income (loss) from operations, as reported, before
tax, adjusted to exclude non-recurring items, other non-cash items, including
stock-based compensation expense, depreciation, and amortization, and further
adjusted to remove acquisition and capital raise related costs, and other
one-time expenses, such as severance, retention, and employee relocation. The
Company uses adjusted EBITDA as it believes it better explains the results of
its core business. The Company has not reconciled guidance for adjusted EBITDA
to the corresponding GAAP financial measure because it cannot provide guidance
for the various reconciling items. The Company is unable to provide guidance
for these reconciling items because it cannot determine their probable
significance, as certain items are outside of its control and cannot be
reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP
financial measure is not available without unreasonable effort.

Webcast – August 11,
2022 – 5:00 PM EDT
Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 1-888-664-6383 or listen to the webcast from the Company’s website at https://ir.schwazze.com The webcast will be available on the Company’s website and on replay until August 18, 2022, and may be accessed by dialing 1-888-390-0541 / # 575833

Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call itself through the weblink: https://app.webinar.net/lwXbZbBZmKN  This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings

About Schwazze
Schwazze (OTCQX: SHWZ, NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking
Statements
Such forward-looking statements may be preceded by the words “plan,” “will,” “may,” “continue,” “anticipate,” “become,” “build,” “develop,” “expect,” “believe,” “poised,” “project,” “approximate,” “could,” “potential,” or similar expressions as they relate to Schwazze. Forward-looking statements include the guidance provided regarding the Company’s Q4 2022 performance and annual capital spending. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and New Mexico and outside the states, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/schwazze-announces-second-quarter-results-301604597.html

SOURCE Schwazze

Released August 11,
2022