HOUSTON, Aug. 4, 2022 /PRNewswire/ — Direct Digital Holdings (Nasdaq: DRCT) (“Direct Digital”), a leading advertising and marketing technology platform and owner of operating companies Colossus SSP, Huddled Masses and Orange 142, will report financial results for the second quarter ended June 30, 2022, on Thursday, August 11, 2022 after the U.S. stock market closes. Management will host a conference call and webcast on the same day at 5:00 P.M. ET to discuss the results.
About
Direct Digital Holdings Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The company’s subsidiaries Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 70,000 clients monthly, generating over 90 billion impressions per month across display, CTV, in-app and other media channels. The company has been named a top minority-owned business by The Houston Business Journal.
Spin-off
of United Maritime Corporation (“United”) and distribution of United’s
common shares to Seanergy’s shareholders
Quarterly
dividend of $0.025 per share for Q2 2022, payable on or about October 11,
2022 to all common shareholders of record as of September 25, 2022
Total
cash dividends of $0.10 per common share to the Company’s shareholders in
2022 to date plus the distribution of United’s shares
Additional
repurchase plan of up to $5.0 million, on top of the $26.7 million
buybacks completed in Q4 2021 / Q1 2022
Delivery
of the recently acquired Capesize vessel and commencement of period
employment
New
financing and refinancing transactions totaling $80.3 million with
improved pricing and overall loan terms
$28.0
million commitment letter from a prominent European lender for the
refinancing of the last balloon remaining for 2022
No
remaining loan maturities until Q4 2023
1 Adjusted EPS, Adjusted Net Income, EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted EPS, Adjusted Net Income, EBITDA and Adjusted EBITDA to net income, the most directly comparable U.S. GAAP measure.
ATHENS, Greece, Aug. 04, 2022 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”) (NASDAQ: SHIP), announced today its financial results for the second quarter and six months ended June 30, 2022. The Company also declared a quarterly dividend of $0.025 per common share for the second quarter of 2022.
For the quarter ended June 30, 2022, the Company generated Net Revenues of $32.8 million, a 18% increase compared to the second quarter of 2021. Adjusted EBITDA for the quarter was $17.3 million, a 53% increase compared to $11.3 million in the same period of 2021. Net Income and Adjusted Net Income for the quarter were $5.9 million and $7.1 million a 203% and 187% increase respectively, compared to Net Income of $2.0 million and Adjusted Net Income of $2.5 million in the second quarter of 2021. The daily Time Charter Equivalent (“TCE rate”1) of the fleet for the second quarter of 2022 was $23,251, marking a 16% increase compared to $20,095 for the same period of 2021.
For the six-month period ended June 30, 2022, Net Revenues were $62.5 million, increased by 30% when compared to $48.2 million in same period of 2021. Adjusted EBITDA for the first six months of 2022 was $34.1 million, a 77% increase compared to $19.2 million in the same period of 2021. The daily TCE of the fleet for the first six months of 2022 was $21,207 compared to $18,327 in the first six months of 2021. The average daily OPEX was $6,510 compared to $5,766 of the respective period of 2021.
Cash, cash-equivalents and restricted cash, as of June 30, 2022, stood at $41.4 million. Shareholders’ equity at the end of the second quarter was $233.7 million. Long-term debt (senior loans, convertible note and other financial liabilities) net of deferred charges stood at $257.6 million, while the book value of our fleet stood at $455.0 million.
1 TCE rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to net revenues from vessels, the most directly comparable U.S. GAAP measure.
Stamatis
Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“Seanergy reported record financial results for the second quarter and the first half of the year. Based on the sustained profitability of Seanergy, we are declaring a quarterly dividend of $0.025 per share for Q2 2022, which represents approximately 63% of our adjusted net income for the period. Over the last three quarters, we will have distributed approximately $18.0 million or $0.10 per share to our shareholders.
“Concerning our results for the second quarter of 2022, our daily TCE was $23,251, marking an increase of 16% compared to the TCE of the second quarter of 2021. The TCE for the first 6 months of 2022 was $21,207 per day as compared to a daily TCE of approximately $18,327 in the first half of 2021. Most importantly, the TCE of our fleet outperformed the Baltic Capesize Index (“BCI”) average in the first six months of 2022 by 17%. Our guidance for the third quarter is $23,650 per day.
“Adjusted EBITDA for the second quarter and first half of 2022 was $17.3 million and $34.1 million, respectively, marking a 53% and a 77% increase versus the respective periods of 2021. Net income for the quarter was approximately $5.9 million, while that of the first half was $9.6 million.
“We also recently completed the spin-off of United, which commenced trading on the NASDAQ Capital Market on July 6, 2022, under the ticker “USEA”. The distribution of all of United’s common shares to our shareholders represents a significant return of value.
“Lastly, concerning our shareholder rewards plan, following the successful execution of two buyback plans of shares and equity-linked instruments totaling $26.7 million, our Board of Directors authorized an additional share repurchase plan of $5 million. Including the aforementioned dividend payments, a total of $44.7 million of the Company’s cash has been allocated to activities which directly reward our shareholders since the fourth quarter of 2021.
“In the second quarter, we concluded the acquisition of another quality Japanese Capesize vessel, replacing the M/V Gloriuship that was spun out to United. The new acquisition, renamed M/V Honorship, was delivered to us in June and immediately commenced its period employment for approximately 2 years with NYK Line.
“On the financing front, in 2022 to-date, we have successfully concluded new financings and refinancings of $80.3 million while obtaining a commitment letter from a prominent European lender for the last remaining loan maturity in 2022. In addition to the replacement of legacy debt at considerably improved terms, one of our new facilities includes a significant sustainability-linked element. This is aligned with our intention to incorporate our ESG agenda in every aspect of our corporation.
“Concerning our fleet developments, we have now successfully completed installations of ballast water treatment systems on 100% of our fleet and have upgraded various vessels by installing Energy Saving Devices. In most cases, these projects are accompanied by agreements with our charterers to increase the daily hire rate, reflecting the improved performance of the underlying vessels, as well as to extend the respective time-charter periods. As a result, we believe our fleet is optimally positioned commercially and operationally.
“Looking ahead, considering the favorable demand and vessel-supply fundamentals of our sector, we are optimistic about the prospects of the Capesize market for the coming years.”
Company
Fleet:
Vessel
Name
Capacity (DWT)
Year Built
Yard
Scrubber Fitted
Employment Type
FFA conversion option(18)
Minimum T/C expiration
Maximum T/C expiration(19)
Patriotship
181,709
2010
Imabari
Yes
T/C – fixed rate(1)
–
06/2022
12/2022
Dukeship
181,453
2010
Sasebo
–
T/C Index Linked(2)
Yes
01/2022
06/2023
Worldship
181,415
2012
Koyo – Imabari
Yes
T/C – fixed rate(3)
–
09/2022
01/2023
Hellasship
181,325
2012
Imabari
–
T/C Index Linked(4)
–
12/2023
04/2024
Honorship
180,242
2010
Imabari
–
T/C Index Linked(5)
Yes
02/2024
06/2024
Fellowship
179,701
2010
Daewoo
–
T/C Index Linked(6)
Yes
06/2024
10/2024
Championship
179,238
2011
Sungdong SB
Yes
T/C Index Linked(7)
Yes
11/2023
11/2023
Partnership
179,213
2012
Hyundai
Yes
T/C Index Linked(8)
Yes
10/2022
11/2023
Knightship
178,978
2010
Hyundai
Yes
T/C Index Linked(9)
–
05/2023
11/2023
Lordship
178,838
2010
Hyundai
Yes
T/C Index Linked(10)
Yes
05/2022
09/2022
Goodship
177,536
2005
Mitsui
–
T/C Index Linked(11)
Yes
08/2022
11/2022
Friendship
176,952
2009
Namura
–
T/C Index Linked(12)
–
12/2023
03/2024
Tradership
176,925
2006
Namura
–
T/C Index Linked(13)
Yes
06/2023
10/2023
Flagship
176,387
2013
Mitsui
–
T/C Index Linked(14)
Yes
05/2026
05/2026
Geniuship
170,057
2010
Sungdong SB
–
T/C Index Linked(15)
Yes
01/2023
05/2023
Premiership
170,024
2010
Sungdong SB
Yes
T/C Index Linked(16)
–
11/2022
05/2023
Squireship
170,018
2010
Sungdong SB
Yes
T/C Index Linked(17)
–
12/2022
06/2023
Total/Average age
3,020,012
12.1
(1)
Chartered by a European cargo operator and delivered to the charterer on June 7, 2021 for a period of about 12 to about 18 months. The daily charter hire is fixed at $31,000.
(2)
Chartered by NYK and delivered to the charterer on December 1, 2021 for a period of about 13 to about 18 months. The daily charter hire is based on the BCI.
(3)
Chartered by a U.S. commodity trading company and delivered to the charterer on September 2, 2021 for a period of about 12 to about 16 months. The daily charter hire is fixed at $31,750.
(4)
Chartered by NYK and delivered to the charterer on May 10, 2021 for an initial period of minimum 11 to maximum 15 months, which was further extended until minimum December 2023 to maximum March 2024. The daily charter hire is based on the BCI.
(5)
Chartered by NYK and delivered to the charterer on June 30, 2022 for a period of about 20 to about 24 months. The daily charter hire is based on the BCI.
(6)
Chartered by Anglo American, a leading global mining company, and delivered to the charterer on June 18, 2021 for an initial period of minimum 12 to about 15 months, which was further extended for a period of minimum 20 to about 24 months starting as of October 2022. The daily charter hire is based on the BCI.
(7)
Chartered by Cargill and delivered to the charterer on November 7, 2018 for a period of employment of 60 months, with an additional period of about 16 to about 18 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $1,740.
(8)
Chartered by a major European utility and energy company and delivered to the charterer on September 11, 2019 for an initial period of minimum 33 to maximum 37, ending in October 2022. Pursuant to a charterer’s option the time-charter (“T/C”) was extended for a further 11 to 13 months. According to the terms of the agreement, the charterer has an additional 11 to 13 months optional period. The daily charter hire is based on the BCI.
(9)
Chartered by Glencore and delivered to the charterer on May 15, 2020 for a period of about 36 to about 42 months with two optional periods of 11 to 13 months. The daily charter hire is based on the BCI.
(10)
Chartered by a major European utility and energy company and delivered on August 4, 2019 for a period of minimum 33 to maximum 37 months with an optional period of about 11 to maximum 13 months. The daily charter hire is based on the BCI.
(11)
Chartered by an international commodities trader and delivered to the charterer on November 12, 2021 for a period of about 9 to about 12 months. The daily charter hire is based on the BCI.
(12)
Chartered by NYK and delivered to the charterer on July 29, 2021 for an initial period of minimum 17 to maximum 24 months, which was extended until minimum December 2023 to maximum March 2024. The daily charter hire is based on the BCI.
(13)
Chartered by a major European operator and delivered to the charterer on July 26, 2022 for a period of about 11 to about 15 months. The daily charter hire is based on the BCI.
(14)
Chartered by Cargill. The vessel was delivered to the charterer on May 10, 2021 for a period of 60 months. The daily charter hire is based at a premium over the BCI minus $1,325 per day.
(15)
Chartered by NYK and delivered to the charterer on February 6, 2022 for a period of about 11 to about 15. The daily charter hire is based on the BCI.
(16)
Chartered by Glencore and delivered to the charterer on November 29, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $2,055.
(17)
Chartered by Glencore and delivered to the charterer on December 19, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $2,055.
(18)
The Company has the option to convert the index-linked rate to a fixed one for a period ranging between 2 and 12 months, based on the prevailing Capesize FFA Rate for the selected period.
(19)
The latest redelivery date does not include any additional optional period.
Fleet Data:
(U.S. Dollars in thousands)
Q2 2022
Q2 2021
6M 2022
6M 2021
Ownership days (1)
1,551
1,164
3,081
2,155
Operating days (2)
1,341
1,122
2,823
2,055
Fleet utilization (3)
86.5%
96.4%
91.6%
95.4%
TCE rate (4)
$23,251
$20,095
$21,207
$18,327
Daily Vessel Operating Expenses (5)
$6,575
$5,908
$6,510
$5,766
(1)
Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.
(2)
Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Operating days includes the days that our vessels are in ballast voyages without having finalized agreements for their next employment.
(3)
Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.
(4)
TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of our vessels and because the Company believes that it provides useful information to investors regarding our financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies. The following table reconciles the Company’s net revenues from vessels to the TCE rate.
(In thousands of U.S. Dollars,
except operating days and TCE rate)
Q2 2022
Q2 2021
6M 2022
6M 2021
Net revenues from vessels
32,847
27,832
62,513
48,230
Less: Voyage expenses
1,667
5,285
2,646
10,567
Time charter equivalent revenues
31,180
22,547
59,867
37,663
Operating
days
1,341
1,122
2,823
2,055
TCE rate
$23,251
$20,095
$21,207
$18,327
(5)
Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses, excluding pre delivery costs, by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating expenses to daily vessel operating expenses.
(In thousands of U.S. Dollars,
except ownership days and Daily Vessel Operating Expenses)
Q2 2022
Q2 2021
6M 2022
6M 2021
Vessel operating expenses
10,529
8,879
20,441
14,428
Less: Pre-delivery expenses
331
2,002
384
2,002
Vessel operating expenses before pre-delivery expenses
10,198
6,877
20,057
12,426
Ownership
days
1,551
1,164
3,081
2,155
Daily Vessel Operating Expenses
$6,575
$5,908
$6,510
$5,766
Net Income to EBITDA and Adjusted
EBITDA Reconciliation:
(In thousands of U.S. Dollars)
Q2 2022
Q2 2021
6M 2022
6M 2021
Net income
5,935
1,961
9,606
640
Add: Net interest and finance cost
3,163
4,277
6,013
8,307
Add: Depreciation and amortization
7,034
4,520
13,299
8,337
Add: Taxes
(28
)
–
(28
)
–
EBITDA
16,104
10,758
28,890
17,284
Add: Stock based compensation
1,163
528
3,842
1,931
Add: Loss on extinguishment of debt
6
–
1,285
–
Less: Loss on forward freight agreements, net
36
–
72
–
Adjusted EBITDA
17,309
11,286
34,089
19,215
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss), net interest and finance costs, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP. Adjusted EBITDA represents EBITDA adjusted to exclude stock-based compensation, loss on forward freight agreements, net, and loss on extinguishment of debt, which the Company believes are not indicative of the ongoing performance of its core operations.
EBITDA and adjusted EBITDA are presented as we believe that these measures are useful to investors as a widely used means of evaluating operating profitability. EBITDA and adjusted EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.
Adjusted
Net income Reconciliation and calculation of Adjusted Net Income Per Share
(In thousands of U.S. Dollars)
Q2 2022
Q2 2021
6M 2022
6M 2021
Net income
5,935
1,961
9,606
640
Add: Stock based compensation
1,163
528
3,842
1,931
Add: Loss on extinguishment of debt
6
–
1,285
–
Less: Loss on forward freight agreements, net
36
–
72
–
Adjusted net income
7,140
2,489
14,805
2,571
Adjusted net income per common share, basic
0.04
0.02
0.09
0.02
Adjusted net income per common share, diluted
0.04
0.02
0.08
0.02
Weighted average number of common shares outstanding, basic
172,559,248
160,171,874
172,437,211
137,590,311
Weighted average number of common shares outstanding, diluted
177,368,289
165,864,695
178,074,877
143,292,880
To derive Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share from Net Income/(Loss), we exclude non-cash items, as provided in the table above. We believe that Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as gain/(loss) on extinguishment of debt and other items which may vary from year to year, for reasons unrelated to overall operating performance. In addition, we believe that the presentation of the respective measure provides investors with supplemental data relating to our results of operations, and therefore, with a more complete understanding of factors affecting our business than with GAAP measures alone. Our method of computing Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.
Interest
and Finance Costs to Cash Interest and Finance Costs Reconciliation:
(In thousands of U.S. Dollars)
Q2 2022
Q2 2021
6M 2022
6M 2021
Interest and finance costs, net
(3,163
)
(4,277
)
(6,013
)
(8,307
)
Add: Amortization of deferred finance charges and other discounts
617
1,068
1,275
1,876
Add: Amortization of convertible note beneficial conversion feature
–
680
–
1,238
Cash interest and finance costs
(2,546
)
(2,529
)
(4,738
)
(5,193
)
Third Quarter 2022 TCE Guidance:
As of the date hereof, approximately 62% of the Company fleet’s expected operating days in the third quarter of 2022 have been fixed at an estimated TCE of approximately $26,600. Assuming that for the remaining operating days of our index-linked T/Cs, the respective vessels’ TCE will be equal to the average Forward Freight Agreement (“FFA”) rate of $19,865 per day (based on the FFA curve of August 1, 2022), our estimated TCE for the third quarter of 2022 will be approximately $23,6501. Our TCE guidance for the third quarter of 2022 includes certain conversions (three vessels) of index-linked charters to fixed, which were concluded in previous quarters as part of our freight hedging strategy. The following table provides the break-down:
Operating Days
TCE
TCE – fixed rate (index-linked conversion)
281
$33,839
TCE – fixed rate
183
$29,992
TCE – index-linked unhedged
1,102
$19,998
Total / Average
1,566
$23,650
1 This guidance is based on certain assumptions and there can be no assurance that these TCE estimates, or projected utilization will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of the quarter for an index-linked T/C is equal to the average FFA rate of $19,865. Spot estimates are provided using the load-to-discharge method of accounting. Over the duration of the voyage (discharge-to-discharge) there is no difference in the total revenues and costs to be recognized. The rates quoted are for days currently contracted. Increased ballast days at the end of the quarter will reduce the additional revenues that can be booked based on the accounting cut-offs and therefore the resulting TCE will be reduced accordingly.
Second
Quarter and Recent Developments:
Dividend Distribution and
Declaration of Q2 Dividend
On July 14, 2022, the Company paid the previously-announced quarterly dividend of $0.025 per share, for the first quarter of 2022. Committed to its dividend strategy, the Company also declared a cash dividend of $0.025 per share for the second quarter of 2022 payable on or about October 11, 2022 to the shareholders of record as of September 25, 2022.
Additional Share Buyback Plan
In June 2022, the Board of Directors of the Company authorized an additional share repurchase plan, under which the Company may repurchase up to $5.0 million of its outstanding common shares, convertible note or warrants. Since the fourth quarter of 2021 to date, the Company has repurchased $26.7 million of outstanding common shares, convertible notes and warrants reducing its financial leverage and preventing a potential dilution.
Vessel acquisitions and commercial
updates
M/V
Honorship In June 2022, the Company took delivery of the 180,242 dwt Capesize bulk carrier, built in 2010 in Japan, which was renamed M/V Honorship. The M/V Honorship was fixed on a time charter with NYK Line, a leading Japanese shipping company and existing charterer of the Company. The T/C commenced on June 30, 2022 and will have a term of about 20 to about 24 months. The gross daily rate of the T/C is based at a premium over the BCI.
M/V
Partnership Following the completion of her recent drydock, the charterer agreed to exercise the optional period extending the T/C until October 2022 at a higher rate based at a premium over the BCI and at an increased scrubber profit sharing scheme. In addition, the T/C provides for one more optional extension period of 11-13 months at charterer’s option.
Financing Updates
During the first half of 2022, the Company has successfully concluded new financings and refinancings of $80.3 million, out of which $59.0 million were concluded in the second quarter of 2022. Furthermore, the Company has received a commitment letter for a loan facility of up to $28.0 million, which will be concluded within Q3 2022.
Piraeus
Bank S.A On June 22, 2022, the Company entered into an up to $38.0 million sustainability-linked loan facility to (i) refinance the existing facility of $14.9 million secured by the M/V Worldship and (ii) partially fund the acquisition cost of the M/V Honorship. The facility has a term of five years while the interest rate is 3.0% plus LIBOR per annum and can be further reduced based on certain emission reduction thresholds.
Alpha
Bank S.A. On June 21, 2022, the Company entered into a credit facility for an amount of up to $21.0 million secured by the M/V Dukeship. The facility has a term of four years and the interest rate is 2.95% plus SOFR per annum.
Danish
Ship Finance Commitment Letter In July 2022, the Company obtained a commitment letter from Danish Ship Finance A/S for a loan facility of up to $28.0 million, in order to refinance an existing facility of $24.8 million secured by the M/Vs Premiership & Fellowship. The interest rate will be 2.5% plus SOFR per annum and the term of the loan will be five years. The facility will be repaid through six quarterly instalments of $1.6 million followed by 14 quarterly instalments of $1.04 million and a balloon of $4.1 million payable together with the last instalment. The existing facility that is intended to be refinanced includes a balloon payment of $23.6 million to be paid during the fourth quarter of 2022. The transaction is subject to completion of definitive documentation.
Spin-Off and distribution of
United’s shares
In July 2022, the Company completed the spin-off of its wholly-owned subsidiary, United Maritime Corporation which commenced trading on the Nasdaq Capital Market on July 6, 2022 under the symbol “USEA”. The Company’s shareholders on record as of June 28, 2022, received one United common share for every 118 Seanergy common shares. Following the spin-off, the M/V Gloriuship was substituted by the younger M/V Honorship, positively affecting the Company’s average fleet and overall operating margin.
Nasdaq Notice
The Company received written notification from The Nasdaq Stock Market (“Nasdaq”) dated August 1, 2022, indicating that because the closing bid price of the Company’s common stock for 30 consecutive business days, from June 16, 2022, to July 29, 2022, was below the minimum $1.00 per share bid price requirement for continued listing on the Nasdaq Capital Market, the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2). Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the applicable grace period to regain compliance is 180 days, or until January 30, 2023. The Company can cure this deficiency if the closing bid price of its common stock is $1.00 per share or higher for at least ten consecutive business days during the grace period.
Conference Call:
The Company’s management will host a conference call to discuss financial results today, Thursday, August 4, 2022 at 10:00 a.m. Eastern Time.
Slides and Audio Webcast:
There will be a live, and then archived, webcast of the conference call and accompanying slides available through the Company’s website. To listen to the archived audio file, visit our website, following Webcast &
Presentations. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast, following this link.
Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.
Seanergy
Maritime Holdings Corp. Unaudited Condensed Consolidated Balance Sheets (In
thousands of U.S. Dollars)
June 30, 2022
December 31, 2021*
ASSETS
Cash and cash equivalents, restricted cash and term deposits
41,357
47,126
Vessels, net
455,020
426,062
Other assets
22,546
14,023
TOTAL ASSETS
518,923
487,211
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt and other financial liabilities
247,373
215,174
Convertible notes
10,245
7,573
Other liabilities
27,636
19,988
Stockholders’ equity1
233,669
244,476
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
518,923
487,211
* Derived from the audited consolidated financial statements as of the period as of that date
Seanergy
Maritime Holdings Corp. Unaudited Condensed Consolidated Statements of Operations (In
thousands of U.S. Dollars, except for share and per share data, unless
otherwise stated)
Three months ended June 30,
Six months ended June 30,
2022
2021
2022
2021
Vessel revenue, net
32,847
27,832
62,513
48,230
Expenses:
Voyage expenses
(1,667
)
(5,285
)
(2,646
)
(10,567
)
Vessel operating expenses
(10,529
)
(8,879
)
(20,441
)
(14,428
)
Management fees
(377
)
(348
)
(753
)
(629
)
General and administrative expenses
(4,205
)
(2,566
)
(8,520
)
(5,296
)
Depreciation and amortization
(7,034
)
(4,520
)
(13,299
)
(8,337
)
Loss on forward freight agreements, net
(36
)
–
(72
)
–
Operating income
8,999
6,234
16,782
8,973
Other income / (expenses):
Interest and finance costs, net1
(3,163
)
(4,277
)
(6,013
)
(8,307
)
Loss on extinguishment of debt
(6
)
–
(1,285
)
–
Other, net
105
4
122
(26
)
Total other expenses, net:
(3,064
)
(4,273
)
(7,176
)
(8,333
)
Net income
5,935
1,961
9,606
640
Net income per common share, basic
0.03
0.01
0.06
0.01
Net income per common share, diluted
0.03
0.01
0.05
0.01
Weighted average number of common shares outstanding, basic
172,559,248
160,171,874
172,437,211
137,590,311
Weighted average number of common shares outstanding, diluted
177,368,289
165,864,695
178,074,877
143,292,880
1 On January 1, 2022, we adopted ASU 2020-06, eliminating the beneficial conversion feature model in ASC 470-20. The adoption of ASU 2020-06 resulted in an increase of the Convertible notes, a reduction of the Accumulated deficit and a reduction of Additional paid-in capital.
Seanergy
Maritime Holdings Corp. Unaudited Condensed Consolidated Cash Flow Data (In
thousands of U.S. Dollars, except for share and per share data, unless
otherwise stated)
Six months ended June 30,
2022
2021
Net cash provided by operating activities
18,939
15,037
Vessels acquisitions and improvements
(37,246
)
(117,058
)
Term deposits
1,500
(1,000
)
Other fixed assets, net
(69
)
–
Net cash used in investing activities
(35,815
)
(118,058
)
Proceeds from long-term debt and other financial liabilities
80,300
104,350
Repayments of long-term debt and other financial liabilities
(47,910
)
(66,722
)
Repayments of convertible notes
(10,000
)
–
Payments of financing and stock issuance costs
(937
)
(1,096
)
Dividend paid
(8,916
)
–
Proceeds from issuance of common stock and warrants, net of underwriters fees and commissions
70
98,232
Net cash provided by financing activities
12,607
134,764
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for interest
4,798
5,160
Noncash investing activities
Vessels acquisitions and improvements
3,518
(884
)
Noncash financing activities
Dividends declared but not paid
4,460
–
Units issued for repayment of subordinated long term-debt
–
3,000
Repayment of subordinated long term-debt by issuance of units
–
(3,000
)
About
Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the U.S. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12.1 years and an aggregate cargo carrying capacity of approximately 3,020,012 dwt.
The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; broader market impacts arising from war (or threatened war) or international hostilities, such as between Russia and Ukraine; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Who will Regulate Cryptocurrencies? The Senate May Have a Favorite
One ongoing cloud over cryptocurrency exchanges, crypto creators, and even the NFT market is the uncertainty of future regulations. Regulation, while seen as restrictive, would also mean acceptance of the asset class. Acceptance coupled with a more certain playing field would benefit all stakeholders, from the crypto investor to the business that allows purchases in crypto, all the way through to the blockchain companies that are necessary for its digital existence.
SEC vs CFTC
Crypto interests have had a favorite among two potential oversight bodies, the Securities and Exchange Commission (SEC), versus the Commodities Futures Trading Commission (CFTC). And the stakeholders have been vocal to lawmakers in Washington as to the preference.
The SEC Chair Gary Gensler once taught cryptocurrency at MIT, a top school helping to design and study the future of crypto. However, this is not the regulator most crypto interests would prefer. Instead, they prefer oversight from the CFTC. The CFTC Chairman Rostin Behnam is advocating his agency provide the biggest role in cryptocurrency regulation. In a speech last month, he said federal and state regulators sharing responsibility in a “patchwork blanket” approach “is increasingly proving inadequate” as the crypto market rapidly evolves. Lawmakers in the Senate must have been listening.
Senate Crypto Bill
Under a new bipartisan bill from Sens. Debbie Stabenow (Mich) and John Boozman (Ark), the CFTC would take the lead role in overseeing the two largest cryptocurrencies and the platforms where they are traded under the bill. Oversight of the remaining cryptocurrencies would be divided between the CFTC and the SEC – the methodology to be used in determining who has higher jurisdiction is not yet fully specified.
The two agencies have been positioning for more authority over digital assets. As the assets are still very new to the world, there has certainly been confusion in Washington over how to classify and regulate cryptocurrencies and its digital ecosystem. While lawmakers looked to the regulators for guidance, in the end, the official determination is the responsibility of lawmakers. The major goal of the Stabenow/Boozman bill is to provide some clarity by deeming as commodities both bitcoin (BTC.X) and ethereum (ETH.X), which account for roughly two-thirds of the cryptocurrency outstanding.
If passed by the Senate and House and signed into law, both bitcoin and ethereum would primarily fall under the CFTC, which already oversees futures markets for both. Online platforms that allow investors to trade the coins, such as Coinbase (COIN), would be required to register with the agency.
Two other members of the panel, Sens. Cory Booker (D-N.J.) and John Thune (R-S.D.), are co-sponsoring the measure. Stabenow, said the committee could mark up the bill as soon as September.
The bill comes after another introduced by Sens. Cynthia M. Lummis (Wyo) and Kirsten Gillibrand (N.Y.) in June unveiled what they announced as a comprehensive plan to regulate the industry. Their proposal outlines primary responsibility for the industry to the CFTC, but unlike the bill from Stabenow and Boozman, it would make it optional for crypto exchanges to register with the agency.
Related News
This week Gary Gensler who Chairs the SEC, is facing massive criticism after being accused of being complicit in criminal activities “perpetuated by Citadel Securities & Citadel Market Maker. He is being accused of “obstruction of justice due to his lack of enforcement of the laws pertaining to naked short selling and lack of competent oversight of the market makers activities,” according to the petitions home page. The petition also demands, “Mr. Gensler needs to step down as the chairman, and a thorough, detailed, forensic analysis and investigation into Citadel Securities and Citadel Market Maker. This cannot go unpunished.”
Take Away
Both Senate bills would allow the CFTC to assess fees on crypto industry players to fund an expanded agency budget. The agency, roughly a sixth the size of the SEC, is already tasked with overseeing a section of financial markets, from grain and oil futures to more complex products.
The SEC has been seen as regulating without proper authority. Agencies can not overstep the powers granted to them by Congress. Members of the Senate, to their credit, have been looking to determine how best to develop oversight between these two agencies and the others that are also impacted.
CALGARY, AB, Aug. 4, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces our inaugural sustainability report for the year-ended December 31, 2021, July sales volumes and an operational update.
Inaugural Sustainability Report
We are pleased to present our inaugural 2021 Sustainability Report (the “Report”), highlighting the operational milestones achieved through the development of our Caburé project and outlining Alvopetro’s approach to environmental, social and governance (“ESG”) practices. The Report was approved by the Company’s Board of Directors and provides stakeholders insight into our environmental stewardship, community involvement and corporate governance practices. A full copy of the Report can be found on our website at https://alvopetro.com/Sustainability.
Corey Ruttan, President and Chief Executive Officer, commented: “Our goal while developing this sustainability report was to create transparency on how we manage our business objectives focused on innovation, business strength and our approach to sustainability by; responsibly supplying energy, strengthening communities and our workforce, and minimizing our impact.”
2021 ESG highlights included:
Alvopetro’s locally produced natural gas resulted in average savings of 48% for consumers relative to imported LNG and 53% lower GHG emissions relative to fuel oil;
100% of produced water reinjected;
Scope 1 & 2 emissions intensity of 4.7 kg CO2e per boe;
65% less vegetation removed than allowed in our permit during the construction of our Murucututu pipeline extension;
75 jobs created during Murucututu pipeline construction;
Zero lost-time safety incidents; and
Budgeting $0.20/boe to voluntary social programs.
July Sales Volumes and Facility Expansion
Our July sales volumes averaged 2,514 boepd based on field estimates, including natural gas sales of 14.4 MMcfpd, associated natural gas liquids sales from condensate of 108 bopd and oil sales of 6 bopd, a 7% increase from our Q2 average of 2,359 boepd. Our Caburé gas processing facility expansion was commissioned and completed in late July. We now have available processing capacity of up to 500,000 cubic metres per day (18 MMcfpd). Prior to the expansion our sales volumes were limited by the gas processing facility capacity. With the expanded capacity, our production is expected to be driven by Alvopetro’s share of available Caburé unit production and production additions from new projects.
Operational Update
In April, we completed drilling our 182-C1 well on Block 182 and, based on open-hole wireline logs, the well discovered 25 metres of potential net natural gas pay in the Agua Grande formation with an average 34% water saturation and average porosity of 8.2%, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off. We have commenced completion and testing operations using the drilling rig. After perforating and cleaning up the well we will complete a 72-hour formation test. We then plan to move the drilling rig on the same drilling location to drill a follow up well further east from the bounding fault to further assess the Agua Grande potential and to target the Sergi Formation.
In July, we completed drilling our second 2022 exploration well (183-B1) on the fault block immediately east to our 182-C1 discovery. The 183-B1 location was also a multi-zone pre-rift prospect targeting both the Agua Grande and Sergi Formations. Based on open-hole logs and collected fluid samples, the 183-B1 well encountered multiple zones of interest with an aggregate 34.3 metres of potential net hydrocarbon pay, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off. Subject to equipment availability we expect to commence multi-zone formation tests later in the third quarter.
On our Murucututu project, we commenced commissioning of our field production facility at our 183-1 location in July and subject to final ANP inspection we expect to have our 183-1 well on production near the end of the month. We also commenced field installation of the pipeline extension to tie-in our 197-1 well in June and expect construction to be completed later in the third quarter. Subject to receipt of regulatory approvals, we plan to complete and tie-in the 197-1 well in the fourth quarter.
At the Caburé Unit, the unit operator has commenced drilling the Unit C well (49.1% Alvopetro) targeting development and exploration potential in the Pojuca, Marfim and Caruaçu formations. Drilling is expected to be completed near the end of August.
Semi-Annual Natural Gas Price Redetermination
Pursuant to the terms of our long-term gas sales agreement with Bahiagás, our natural gas price effective August 1, 2022 is 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.
Alvopetro Energy Ltd.’svision 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
daybopd
=
barrels of oil and/or natural gas liquids (condensate) per
dayMMcf
=
million cubic feetMMcfpd
=
million cubic feet per day
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
(6Mcf/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 news release
are derived from converting gas to oil in the ratio mix of six thousand cubic
feet of gas to one barrel of oil.
Testing and Well Results. Data obtained
from the 183-B1 and 182-C1 wells identified in this press release, including
hydrocarbon shows, open-hole logging, net pay and porosities, should be
considered to be preliminary until testing, detailed analysis and
interpretation has been completed. Hydrocarbon shows can be seen during the
drilling of a well in numerous circumstances and do not necessarily indicate a
commercial discovery or the presence of commercial hydrocarbons in a well.
There is no representation by Alvopetro that the data relating to the 183-B1
well nor the 182-C1 well contained in this press release is necessarily
indicative of long-term performance or ultimate recovery. The reader is
cautioned not to unduly rely on such data as such data may not be indicative of
future performance of the well or of expected production or operational results
for Alvopetro in the future.
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 potential hydrocarbon pay in the 183-B1 and the 182-C1
wells, exploration and development prospects of Alvopetro and the expected
timing of certain of Alvopetro’s testing and operational activities. The
forward?looking
statements are based on certain key expectations and assumptions made by
Alvopetro, including but not limited to expectations and assumptions concerning
testing results of the 183-B1 well and the 182-C1 well, equipment availability,
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, 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. 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 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.
MIAMI, Aug. 04, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, today announced that management will participate in the Cannacord Genuity 42nd Annual Growth Conference on Thursday, August 11, 2022.
Dmitry Kozko, Chief Executive Officer of Motorsport Games, will present at 2:00 p.m. ET on August 11. Participants may access a live webcast of the presentation on the Motorsport Games Investor Relations site at https://ir.motorsportgames.com/ under “News & Events.” A replay will be archived online for one year.
About Motorsport Games:
Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Motorsport Games combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”). Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. For more information about Motorsport Games visit: www.motorsportgames.com.
Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on these websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
August 4, 2022 – Vancouver, Canada – Cypress
Development Corp. (TSXV: CYP) (OTCQX: CYDVF) (Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to report results from the recently completed drill program at its 100%-owned Clayton Valley Lithium Project (“Project”), in Nevada, USA. A sonic drill program was conducted in May 2022, to obtain sample material for lithium extraction testing at the Company’s Lithium Extraction Facility (“Pilot Plant”) in Amargosa Valley, Nevada, and to supplement the Project’s resource model for the Feasibility Study that is currently underway.
Highlights:
Best intersection of 70.1 meters of 1,336 parts per million (“ppm”) lithium
Successful use of sonic drilling to obtain six- and four-inch diameter cores
Completed 580 meters in eight drill holes ranging from 61 to 76 meters in depth
Acquired 15 tonnes of claystone for testing at the Company’s Pilot Plant
Confirmed resource model built by Global Resource Engineering (“GRE”)
Confirmed drill data obtained in the acquisition of Enertopia Corporation (“Enertopia”) property
“The drill program was highly successful in generating material for our pilot plant and providing distinct data to strengthen the Project’s resource model” stated Bill Willoughby, Cypress President, and CEO. “These are significant steps as we continue to work to de-risk the project and provide information for the Feasibility Study.”
Drill Program
Cypress has received all assays from its May 2022 drilling program. The program was conducted to collect claystone with large diameter core for use in metallurgical testing at the Company’s Pilot Plant. A total of 580 meters were drilled in eight holes. Hole depths were limited to intersect lithium-bearing claystone to a depth of 61 to 76 meters and to obtain approximately 15 tonnes of material for testing.
Representative core samples ranging from 0.1- to 3-meters in length were collected and delivered to ALS Global in Reno, Nevada for analysis. Lithium values shown in the table are weighted averages over the length of claystone intersected in each hole. All eight holes ended in lithium-bearing claystone. Each sample submittal was accompanied with QA/QC samples of blanks, standards, and duplicates.
DRILL HOLE NUMBER
UNSAMPLED OVERBURDEN (METERS)
CLAYSTONE (METERS)
LITHIUM (PPM)
CVS1
6.1
70.1
1,336
CVS2
3.0
70.1
805
CVS3
6.1
73.2
1,198
CVS4
3.0
70.1
1,119
CVS5
9.1
73.2
801
CVS6
6.1
51.8
1,264
CVS7
6.1
70.1
1,243
CVS8
6.1
54.9
873
Measurements from surface, samples analysed with four
acid digestion with ICP-MS
Four holes, CSV1 through CVS4, were drilled in the central portion of the Project in the vicinity of the planned starter-pit. CVS2 is located outside of the reserve pit outline from the 2021 Prefeasibility Study, nearest the location of the anticipated plant site for the feasibility study. CVS3 is located adjacent to a reclaimed test pit where 500-tonnes of claystone were collected in April.
Four additional holes, CVS5 through CVS8, were drilled in the northeast portion of the project on and near the parcel of property acquired this year from Enertopia. These holes were arranged southeast to northwest infilling the fence of TOP-01, TOP-02, TOP2M and TOP-04 drilled by Enertopia, and DCH-09 drilled by Cypress.
Interpretation of Results
The assay results are in line with lithium grades predicted at all eight locations by the resource block model developed by GRE. The overall estimated lithium grade for all eight locations from GRE’s model is 1,060 ppm. This compares to the compiled average lithium grade from all eight holes drilled of 1,080 ppm, for a variance of +2%.
When viewed in cross-section, the assay results are also consistent with those from previous drilling and support the continuation of a higher-grade northeast trend of lithium-bearing claystone on Cypress’s project as interpreted by GRE in developing the resource model. The results are encouraging and have potential to extend the 2021 pit design through Cypress hole DCH-13 (82.3 meters, 1,221 ppm lithium) to CVS6, CVS7 and the northeast corner of the property.
With the drill program completed, GRE will revise and update the resource model with the new data and proceed with work on the mine plan and production schedule for the feasibility study, which is expected to be completed by year end.
Figure 1: Cypress Development
Drill Hole Location Map
Qualified Person
Daniel Kalmbach, CPG, is the qualified person as defined by National Instrument 43-101 and has approved the technical information in this release.
About Cypress Development Corp
Cypress Development Corp. is a Canadian based advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Cypress is in the pilot stage of testing on material from its lithium-bearing claystone deposit and progressing towards completing a feasibility study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle and battery storage market.
ON BEHALF OF CYPRESS DEVELOPMENT
CORP. WILLIAM WILLOUGHBY, PhD., PE President &
Chief Executive Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-Looking Statements This release
includes certain statements that may be deemed to be “forward-looking
statements”. Forward-looking statements are subject to risks,
uncertainties and assumptions and are identified by words such as “expects,”
“estimates,” “projects,” “anticipates,” “believes,” “could,” “scheduled,” and
other similar words. All statements in this release, other than statements
of historical facts, that address events or developments that management of the
Company expects, are forward-looking statements. Although management believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ materially from
those in the forward-looking statements. The Company undertakes no obligation
to update these forward-looking statements if management’s beliefs, estimates
or opinions, or other factors, should change. Factors that could cause actual
results to differ materially from those in forward-looking statements, include
market prices, exploration, and development successes, continued availability
of capital and financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for
further information.
CARLSBAD, Calif.–(BUSINESS WIRE)–Aug. 4, 2022– Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, today announced that it will report its second quarter 2022 financial and operating results on Thursday, August 11, 2022, following the close of the U.S. financial markets. Lineage management will also host a conference call and webcast on Thursday, August 11, 2022, 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.
Interested parties may access the 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 number6448886. 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 Phase 1/2a development for the treatment of geographic atrophy secondary to age-related macular degeneration, which 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.
Maple Gold Mines (MGMLF) Deep Drill Program Commences at Joutel
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
What’s past is prologue. In August 2021, Maple Gold reported 3D modeling results for the main mine trend at the Telbel mine within the Joutel Project which is held in the company’s joint venture with Agnico Eagle. The results were based on the digitization of more than 250,000 meters of historical drill data which highlighted the potential for higher-grade gold mineralization above and below the historic mine workings along with additional discovery targets. While past gold production at Telbel focused on a single zone between 500 to 1,050 meters, data digitization and 3D modeling identified significant gold intercepts up to approximately 1,400 meters below surface.
Deep drilling program commences. While one drill rig continues Phase II drilling at its 100%-controlled Eagle Project, a second drill rig has been mobilized to commence a 6,000-meter-deep drilling program at the Joutel Project. The deep drilling program will entail three drill holes in the Telbel mine area beneath and adjacent to historic underground mine workings which extend to roughly 1,200 meters below surface. The program represents the first drilling at Telbel since the early 1990s. …
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.
Entravision Communications (EVC) Demonstrating Good Operating Momentum
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A solid Q2. The company met our upwardly revised Q2 expectations with strong 24% revenue growth and 26% adj. EBITDA growth. The adj. EBITDA growth was notable given that it was achieved in spite of the absence of $5.4 million in revenue from three TV station affiliations that it no longer has.
Digital continues its impressive growth. Digital revenues increased a strong 35% in Q2. While the company is comping against its previous acquisitions, it is expecting to reflect favorable double digit revenue growth. Management indicated that Digital is pacing up 24% in Q3, well above industry averages near 8%. …
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.
DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.
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.
3Q Results. Ex FEMA revenue totaled $71.6 million, up 16.2% from $61.6 million in 3Q21. Ex FEMA, DLH would have reported net income of $3.1 million, or $0.22 per share compared to $2.9 million, or $0.21 per diluted share last year. Ex FEMA EBITDA would be at $8.4 million versus $7.0 million the previous year. We had projected revenue of $67 million, EPS of $0.23, and EBITDA of $7 million.
Base Business Continues to Thrive. DLH continues to have growth in the base business. Revenue segments increased for the Company, like the Company’s VA ($33.3 million from $27.5 million) and HHS ($27.7 million from $23.2 million) business. This is further indication of a rise in demand for DLH’s services….
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.
Cumulus Media (CMLS) Ability To Weather Uncertain Times
Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.
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.
Solid Q2 results. The company reported Q2 revenue of $236.7 million, just above our expectation of $235 million. Adj. EBITDA of $45.5 million beat our forecast of $42.8 million by 6% reflecting lower than expected corporate expenses.
Digital impact. While National advertising was weak (Network revenue down 12%), local spot advertising grew 8%, resulting in Broadcast revenue being flat year-over-year. Digital revenue, on the other hand, grew 20%, which drove the 5.4% total company revenue growth in the quarter.
…
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Company to host conference call and webcast at 4:30 p.m. Eastern Time on Thursday, August 11, 2022
NEWTOWN, Pa., Aug. 04, 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 that the Company intends to release its second quarter 2022 financial results on Thursday, August 11, 2022. Management plans to host a conference call and live webcast at 4:30 p.m. ET on the same day to discuss these results and provide an update on its pipeline programs.
Conference Call and Webcast Information
Interested parties who wish to participate in the conference call may do so by dialing (800) 289-0571 for domestic and (856) 344-9290 for international callers and using conference ID 3600715.
Those interested in listening to the conference call via the internet may do so by visiting the investors and media page on the Company’s website at www.onconova.com and clicking on the webcast link. In addition to the live webcast, a replay 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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (Nasdaq: SALM) released its results for the three and six months ended June 30, 2022.
Second Quarter
2022 Results
For the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021:
Consolidated
Total revenue increased 7.7% to $68.7 million from $63.8 million;
Total operating expenses increased 5.5% to $61.4 million from $58.1 million;
Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, debt modification costs, impairments, depreciation expense and amortization expense (1) increased 10.7% to $60.9 million from $55.0 million;
The company’s operating income increased 29.9% to $7.3 million from $5.6 million;
The company recognized $3.9 million in film distribution income from an unconsolidated equity investment;
The company’s net income increased 303.9% to $9.1 million, or $0.33 net income per diluted share from $2.3 million, or $0.08 net income per diluted share;
EBITDA (1) increased 60.9% to $14.5 million from $9.0 million; and
Adjusted EBITDA (1) increased 33.6% to $11.7 million from $8.7 million.
Broadcast
Net broadcast revenue increased 12.1% to $52.5 million from $46.8 million;
Station Operating Income (“SOI”) (1) decreased 6.2% to $10.0 million from $10.6 million;
Same Station (1) net broadcast revenue increased 12.2% to $52.4 million from $46.7 million; and
Same Station SOI (1) decreased 5.9% to $10.0 million from $10.6 million.
Digital Media
Digital media revenue increased 4.5% to $10.8 million from $10.3 million; and
Digital Media Operating Income (1) increased 26.5% to $2.5 million from $2.0 million.
Publishing
Publishing revenue decreased 18.5% to $5.4 million from $6.7 million; and
Publishing Operating Loss (1) was $6,000 as compared to publishing operating income of $0.2 million.
Included in the results for the quarter ended June 30, 2022 are:
A $6.9 million ($5.1 million, net of tax, or $0.19 per diluted share) net gain on the disposition of assets reflects a $6.5 million pre-tax gain on the sale of land used in the company’s Denver, Colorado broadcast operations and a $0.5 million pre-tax gain on the sale of the company’s radio stations in Louisville, Kentucky that was offset with losses from various fixed asset disposals;
A $3.9 million ($2.9 million, net of tax, or $0.11 per share) impairment charge to the value of broadcast licenses in Columbus, Dallas, Greenville, Honolulu, Orlando, Portland, and Sacramento;
A $0.1 million ($0.1 million, net of tax) goodwill impairment charge; and
A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Included in the results for the quarter ended June 30, 2021 are:
A $0.3 million ($0.2 million, net of tax, or $0.01 per diluted share) net gain on the disposition of assets relates to $0.5 million pre-tax gain on the sale of Singing News Magazine and Singing News Radio offset by an additional $0.1 million pre-tax loss recorded at closing on the sale of radio station WKAT-AM and FM translator in Miami, Florida; and
A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Per share numbers are calculated based on 27,570,881 diluted weighted average shares for the quarter ended June 30, 2022, and 27,232,423 diluted weighted average shares for the quarter ended June 30, 2021.
Year to Date 2022
Results
For the six months ended June 30, 2022 compared to the six months ended June 30, 2021:
Consolidated
Total revenue increased 6.6% to $131.3 million from $123.1 million;
Total operating expenses increased 5.2% to $119.0 million from $113.1 million;
Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, debt modification costs, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (1) increased 9.6% to $116.7 million from $106.5 million;
The company’s operating income increased 23.1% to $12.3 million from $10.0 million;
The company recognized $3.9 million in film distribution income from an unconsolidated equity investment;
The company’s net income increased 320.8% to $10.9 million, or $0.39 net income per diluted share from $2.6 million, or $0.10 net income per diluted share;
EBITDA (1) increased 37.0% to $22.7 million from $16.5 million; and
Adjusted EBITDA (1) increased 11.2% to $18.5 million from $16.7 million.
Broadcast
Net broadcast revenue increased 11.1% to $100.9 million from $90.8 million;
SOI (1) decreased 4.9% to $20.3 million from $21.3 million;
Same station (1) net broadcast revenue increased 10.8% to $100.5 million from $90.7 million; and
Same station SOI (1) decreased 5.4% to $20.3 million from $21.5 million.
Digital media
Digital media revenue increased 5.7% to $21.1 million from $20.0 million; and
Digital media operating income (1) increased 47.9% to $4.4 million from $2.9 million.
Publishing
Publishing revenue decreased 24.6% to $9.3 million from $12.3 million; and
Publishing Operating Loss (1) was $0.6 million compared to publishing operating income of $0.7 million.
Included in the results for the six months ended June 30, 2022 are:
A $8.6 million ($6.4 million, net of tax, or $0.23 per diluted share) net gain on the disposition of assets relates primarily to the $6.5 million pre-tax gain on the sale of land used in the company’s Denver, Colorado broadcast operations, the $1.8 million pre-tax gain on sale of land used in the company’s Phoenix, Arizona broadcast operations, and $0.5 million pre-tax gain on the sale of the company’s radio stations in Louisville, Kentucky offset by various fixed asset disposals;
A $3.9 million ($2.9 million, net of tax, or $0.11 per share) impairment charge to the value of broadcast licenses in Columbus, Dallas, Greenville, Honolulu, Orlando, Portland, and Sacramento;
A $0.1 million ($0.1 million, net of tax) goodwill impairment charge;
A $0.2 million ($0.2 million, net of tax, or $0.01 per share) charge for debt modification costs; and
A $0.2 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Included in the results for the six months ended June 30, 2021 are:
A $0.1 million net gain on the disposition of assets relating to a $0.5 million pre-tax gain on the sale of Singing News Magazine and Singing News Radio offset by $0.4 million additional loss recorded at closing on the sale of radio station WKAT-AM and FM translator in Miami, Florida and various fixed asset disposals; and
A $0.2 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Per share numbers are calculated based on 27,590,644 diluted weighted average shares for the six months ended June 30, 2022, and 27,185,598 diluted weighted average shares for the six months ended June 30, 2021.
Balance Sheet
As of June 30, 2022, the company had $114.7 million outstanding on the 7.125% senior secured notes due 2028 (“2028 Notes”), $44.7 million outstanding on 6.75% senior secured notes due 2024 (“2024 Notes”), and $10,000 outstanding balance on the ABL Facility.
Acquisitions and
Divestitures
The following transactions were completed since April 1, 2022:
On June 27, 2022, the company sold 9.3 acres of land in the Denver area for $8.2 million. The land was being used as the transmitter site for radio stations KRKS-AM and KBJD-AM and was an integral part of its broadcast operations for these stations. The company will continue broadcasting both KRKS-AM and KBJD-AM from this site.
On May 25, 2022, the company sold radio stations WFIA-AM, WFIA-FM and WGTK-AM in Louisville, Kentucky for $4.0 million.
On May 2, 2022, the company acquired websites and related assets of Retirement Media for $0.2 million in cash.
Pending
transactions
On June 2, 2021, the company entered into an Asset Purchase Agreement to acquire radio station KKOL-AM in Seattle, Washington for $0.5 million. The company paid $0.1 million of cash into an escrow account and began operating the station under a Local Marketing Agreement on June 7, 2021.
Conference Call
Information
Salem will host a teleconference to discuss its results on August 4, 2022 at 4:00 p.m. Central Time. To access the teleconference, please dial (888) 770-7291, and then ask to be joined into the Salem Media Group Second Quarter 2022 call or listen via the investor relations portion of the company’s website, located at investor.salemmedia.com. A replay of the teleconference will be available through August 18, 2022 and can be heard by dialing (800) 770-2030, passcode 2413416 or on the investor relations portion of the company’s website, located at investor.salemmedia.com.
Follow us on Twitter @SalemMediaGrp.
Third Quarter
2022 Outlook
For the third quarter of 2022, the company is projecting total revenue to increase between 6% and 8% from third quarter 2021 total revenue of $66.0 million. The company is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to increase between 11% and 14% compared to the third quarter of 2021 non-GAAP operating expenses of $55.2 million.
A
reconciliation of non-GAAP operating expenses, excluding gains or losses
on the disposition of assets, stock-based compensation expense, changes in the
estimated fair value of contingent earn-out consideration, impairments,
depreciation expense and amortization expense to the most directly
comparable GAAP measure is not available without unreasonable efforts on a
forward-looking basis due to the potential high variability, complexity and low
visibility with respect to the charges excluded from this non-GAAP financial
measure, in particular, the change in the estimated fair value of earn-out
consideration, impairments and gains or losses from the disposition of fixed
assets. The company expects the variability of the above charges may have a
significant, and potentially unpredictable, impact on its future GAAP financial
results.
About Salem Media
Group, Inc.
Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com, Facebook and Twitter.
Forward-Looking
Statements
Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem’s reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
(1) Regulation G
Management
uses certain non-GAAP financial measures defined below in communications
with investors, analysts, rating agencies, banks and others to assist such
parties in understanding the impact of various items on its financial
statements. The company uses these non-GAAP financial measures to evaluate
financial results, develop budgets, manage expenditures and as a measure of
performance under compensation programs.
The
company’s presentation of these non-GAAP financial measures should not be considered
as a substitute for or superior to the most directly comparable financial
measures as reported in accordance with GAAP.
Regulation
G defines and prescribes the conditions under which certain non-GAAP financial
information may be presented in this earnings release. The company closely
monitors EBITDA, Adjusted EBITDA, Station Operating Income (“SOI”), Same
Station net broadcast revenue, Same Station broadcast operating expenses, Same
Station Operating Income, Digital Media Operating Income, Publishing Operating
Income (Loss), and operating expenses excluding gains or losses on the
disposition of assets, stock-based compensation, changes in the estimated fair
value of contingent earn-out consideration, impairments, depreciation and
amortization, all of which are non-GAAP financial measures. The company
believes that these non-GAAP financial measures provide useful information
about its core operating results, and thus, are appropriate to enhance the
overall understanding of its financial performance. These non-GAAP financial
measures are intended to provide management and investors a more complete
understanding of its underlying operational results, trends and performance.
The
company defines Station Operating Income (“SOI”) as net broadcast revenue minus
broadcast operating expenses. The company defines Digital Media Operating
Income as net Digital Media Revenue minus Digital Media Operating Expenses. The
company defines Publishing Operating Income (Loss) as net Publishing Revenue
minus Publishing Operating Expenses. The company defines EBITDA as net income
before interest, taxes, depreciation, and amortization. The company defines
Adjusted EBITDA as EBITDA before gains or losses on the disposition of assets,
before debt modification costs, before changes in the estimated fair value of
contingent earn-out consideration, before impairments, before net miscellaneous
income and expenses, before (gain) loss on early retirement of long-term debt
and before non-cash compensation expense. SOI, Digital Media Operating Income,
Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are commonly
used by the broadcast and media industry as important measures of performance
and are used by investors and analysts who report on the industry to provide
meaningful comparisons between broadcasters. SOI, Digital Media Operating
Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not
measures of liquidity or of performance in accordance with GAAP and should be
viewed as a supplement to and not a substitute for or superior to its results
of operations and financial condition presented in accordance with GAAP. The
company’s definitions of SOI, Digital Media Operating Income, Publishing
Operating Income (Loss), EBITDA and Adjusted EBITDA are not necessarily
comparable to similarly titled measures reported by other companies.
The
company defines Same Station net broadcast revenue as broadcast revenue from
its radio stations and networks that the company owns or operates in the same
format on the first and last day of each quarter, as well as the corresponding
quarter of the prior year. The company defines Same Station broadcast operating
expenses as broadcast operating expenses from its radio stations and networks
that the company owns or operates in the same format on the first and last day
of each quarter, as well as the corresponding quarter of the prior year. The
company defines Same Station SOI as Same Station net broadcast revenue less
Same Station broadcast operating expenses. Same Station operating results
include those stations that the company owns or operates in the same format on
the first and last day of each quarter, as well as the corresponding quarter of
the prior year. Same Station operating results for a full calendar year are
calculated as the sum of the Same Station-results for each of the four quarters
of that year. The company uses Same Station operating results, a non-GAAP
financial measure, both in presenting its results to stockholders and the
investment community, and in its internal evaluations and management of the
business. The company believes that Same Station operating results provide a
meaningful comparison of period over period performance of its core broadcast
operations as this measure excludes the impact of new stations, the impact of
stations the company no longer owns or operates, and the impact of stations
operating under a new programming format. The company’s presentation of Same
Station operating results are not intended to be considered in isolation or as
a substitute for the financial information prepared and presented in accordance
with GAAP. The company’s definition of Same Station operating results is not
necessarily comparable to similarly titled measures reported by other
companies.
For
all non-GAAP financial measures, investors should consider the limitations
associated with these metrics, including the potential lack of comparability of
these measures from one company to another.
The
Supplemental Information tables that follow the condensed consolidated financial
statements provide reconciliations of the non-GAAP financial measures that the
company uses in this earnings release to the most directly comparable measures
calculated in accordance with GAAP. The company uses non-GAAP financial
measures to evaluate financial performance, develop budgets, manage
expenditures, and determine employee compensation. The company’s presentation
of this additional information is not to be considered as a substitute for or
superior to the directly comparable measures as reported in accordance with
GAAP.
Salem Media Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2022
2021
2022
(Unaudited)
Net broadcast revenue
$
46,783
$
52,452
$
90,831
$
100,884
Net digital media revenue
10,339
10,804
19,958
21,104
Net publishing revenue
6,660
5,426
12,346
9,303
Total revenue
63,782
68,682
123,135
131,291
Operating expenses:
Broadcast operating expenses
36,162
42,489
69,505
80,610
Digital media operating expenses
8,338
8,273
17,011
16,746
Publishing operating expenses
6,426
5,432
11,631
9,899
Unallocated corporate expenses
4,192
4,781
8,480
9,591
Debt modification costs
—
20
—
248
Depreciation and amortization
3,286
3,190
6,456
6,466
Change in the estimated fair value of contingent earn-out consideration
—
—
—
(5)
Impairment of indefinite-lived long-term assets other than goodwill
—
3,935
—
3,935
Impairment of goodwill
—
127
—
127
Net (gain) loss on the disposition of assets
(263)
(6,893)
55
(8,628)
Total operating expenses
58,141
61,354
113,138
118,989
Operating income
5,641
7,328
9,997
12,302
Other income (expense):
Interest income
—
149
1
149
Interest expense
(3,935)
(3,389)
(7,861)
(6,783)
Gain (loss) on early retirement of long-term debt
—
35
—
(18)
Earnings from equity method investment
—
3,913
—
3,913
Net miscellaneous income and (expenses)
63
(1)
85
—
Net income before income taxes
1,769
8,035
2,222
9,563
Benefit from income taxes
(488)
(1,082)
(358)
(1,293)
Net income
$
2,257
$
9,117
$
2,580
$
10,856
Basic income per share Class A and Class B common stock
$
0.08
$
0.33
$
0.10
$
0.39
Diluted income per share Class A and Class B common stock
$
0.08
$
0.33
$
0.10
$
0.39
Basic weighted average Class A and Class B common stock shares outstanding
26,869,145
27,214,787
26,802,892
27,196,081
Diluted weighted average Class A and Class B common stock shares outstanding
27,232,423
27,570,881
27,185,598
27,590,644
Salem Media Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, 2021
June 30, 2022
(Unaudited)
Assets
Cash
$
1,785
$
2,540
Trade accounts receivable, net
25.663
29,271
Other current assets
14,066
15,856
Property and equipment, net
79,339
79,713
Operating and financing lease right-of-use assets
43,665
44,110
Intangible assets, net
346,438
339,160
Deferred financing costs
843
774
Other assets
4,313
3,845
Total assets
$
516,112
$
515,269
Liabilities and
Stockholders’ Equity
Current liabilities
$
51,455
$
56,161
Long-term debt
170,581
155,595
Operating and financing lease liabilities, less current portion
42,273
42,652
Deferred income taxes
67,012
65,808
Other liabilities
6,580
5,718
Stockholders’ Equity
178,211
189,335
Total liabilities and stockholders’ equity
$
516,112
$
515,269
SALEM MEDIA GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’
EQUITY
(in thousands,
except share and per share data)
Class A
Class B
Common Stock
Common Stock
Additional
Paid-In
Accumulated
Treasury
Shares
Amount
Shares
Amount
Capital
Deficit
Stock
Total
Stockholders’
equity, December 31, 2020
23,447,317
$
227
5,553,696
$
56
$
247,025
$
(78,023
)
$
(34,006
)
$
135,279
Stock-based compensation
—
—
—
—
78
—
—
78
Options
exercised
185,782
2
—
—
390
—
—
392
Net income
—
—
—
—
—
323
—
323
Stockholders’
equity,
March 31, 2021
23,633,099
$
229
5,553,696
$
56
$
247,493
$
(77,700
)
$
(34,006
)
$
136,072
Stock-based compensation
—
—
—
—
84
—
—
84
Net income
—
—
—
—
—
2,257
—
2,257
Stockholders’ equity, June 30, 2021
23,633,099
$
229
5,553,696
$
56
$
247,577
$
(75,443
)
$
(34,006
)
$
138,413
Class A
Class B
Common Stock
Common Stock
Additional
Paid-In
Accumulated
Treasury
Shares
Amount
Shares
Amount
Capital
Deficit
Stock
Total
Stockholders’
equity, December 31, 2021
23,922,974
$
232
5,553,696
$
56
$
248,438
$
(36,509
)
$
(34,006
)
$
178,211
Stock-based compensation
—
—
—
—
106
—
—
106
Options
exercised
40,913
—
—
—
94
—
—
94
Lapse of restricted shares
14,854
—
—
—
—
—
—
—
Net income
—
—
—
—
—
1,739
—
1,739
Stockholders’ equity,
March 31, 2022
23,978,741
$
232
5,553,696
$
56
$
248,638
$
(34,770
)
$
(34,006
)
$
180,150
Stock-based
compensation
—
—
—
—
68
—
—
68
Net income
—
—
—
—
—
9,117
—
9,117
Stockholders’
equity, June 30, 2022
23,978,741
$
232
5,553,696
$
56
$
248,706
$
(25,653
)
$
(34,006
)
$
189,335
Salem Media Group, Inc.
Supplemental Information
(in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2022
2021
2022
(Unaudited)
Reconciliation of Total Operating Expenses to
Operating Expenses excluding Debt Modification Costs, Depreciation and
Amortization Expense, Changes in the Estimated Fair Value of Contingent
Earn-out Consideration, Impairments, Gains or Losses on the Disposition of
Assets and Stock-based Compensation Expense (Recurring Operating Expenses)
Operating Expenses
$
58,141
$
61,354
$
113,138
$
118,989
Less debt modification costs
(20)
(248)
Less depreciation and amortization expense
(3,286)
(3,190)
(6,456)
(6,466)
Less change in estimated fair value of contingent earn-out
consideration
—
—
—
5
Less impairment of indefinite-lived long-term assets other
than goodwill
—
(3,935)
—
(3,935)
Less impairment of goodwill
—
(127)
—
(127)
Less net gain (loss) on the disposition of assets
263
6,893
(55)
8,628
Less stock-based compensation expense
(84)
(68)
(162)
(174)
Total Recurring
Operating Expenses
$
55,034
$
60,907
$
106,465
$
116,672
Reconciliation of Net Broadcast Revenue to Same
Station Net Broadcast Revenue
Net broadcast revenue
$
46,783
$
52,452
$
90,831
$
100,884
Net broadcast revenue – acquisitions
—
(14)
—
(247)
Net broadcast revenue – dispositions
(96)
(56)
(113)
(49)
Net broadcast revenue – format change
—
—
(65)
(111)
Same Station net broadcast revenue
$
46,687
$
52,382
$
90,653
$
100,477
Reconciliation
of Broadcast Operating Expenses to Same Station Broadcast Operating Expenses
Broadcast operating expenses
$
36,162
$
42,489
$
69,505
$
80,610
Broadcast operating expenses – acquisitions
—
(63)
(1)
(279)
Broadcast operating expenses – dispositions
(81)
(24)
(214)
(48)
Broadcast operating expenses – format change
—
—
(131)
(132)
Same Station broadcast operating expenses
$
36,081
$
42,402
$
69,159
$
80,151
Reconciliation of SOI to Same Station SOI
Station Operating Income
$
10,621
$
9,963
$
21,326
$
20,274
Station operating (income) loss – acquisitions
—
49
1
32
Station operating (income) loss – dispositions
(15)
(32)
101
(1)
Station operating (income) loss – format change
—
—
66
21
Same Station – Station Operating Income
$
10,606
$
9,980
$
21,494
$
20,326
Salem Media Group, Inc.
Supplemental Information
(in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2022
2021
2022
(Unaudited)
Calculation of Station Operating Income, Digital
Media Operating Income and Publishing Operating Income (Loss)
Net broadcast revenue
$
46,783
$
52,452
$
90,831
$
100,884
Less broadcast operating expenses
(36,162)
(42,489)
(69,505)
(80,610)
Station Operating Income
$
10,621
$
9,963
$
21,326
$
20,274
Net digital media revenue
$
10,339
$
10,804
$
19,958
$
21,104
Less digital media operating expenses
(8,338)
(8,273)
(17,011)
(16,746)
Digital Media Operating Income
$
2,001
$
2,531
$
2,947
$
4,358
Net publishing revenue
$
6,660
$
5,426
$
12,346
$
9,303
Less publishing operating expenses
(6,426)
(5,432)
(11,631)
(9,899)
Publishing Operating Income (Loss)
$
234
$
(6)
$
715
$
(596)
The company defines EBITDA (1) as net income before interest, taxes, depreciation, and amortization. The table below presents a reconciliation of EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP. The company defines Adjusted EBITDA (1) as EBITDA (1) before gains or losses on the disposition of assets,before debt modification costs, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. The table below presents a reconciliation of Adjusted EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. Adjusted EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2022
2021
2022
(Unaudited)
Net income
$
2,257
$
9,117
$
2,580
$
10,856
Plus interest expense, net of capitalized interest
3,935
3,389
7,861
6,783
Plus benefit from income taxes
(488
)
(1,082
)
(358
)
(1,293
)
Plus depreciation and amortization
3,286
3,190
6,456
6,466
Less interest income
—
(149
)
(1
)
(149
)
EBITDA
$
8,990
$
14,465
$
16,538
$
22,663
Plus net (gain) loss on the disposition of assets
(263
)
(6,893
)
55
(8,628
)
Plus change in the estimated fair value of contingent earn-out consideration
—
—
—
(5
)
Plus debt modification costs
—
20
248
Plus impairment of indefinite-lived long-term assets other than goodwill
—
3,935
—
3,935
Plus impairment of goodwill
—
127
—
127
Plus net miscellaneous (income) and expenses
(63
)
1
(85
)
—
Plus (gain) loss on early retirement of long- term debt
—
(35
)
—
18
Plus non-cash stock-based compensation
84
68
162
174
Adjusted EBITDA
$
8,748
$
11,688
$
16,670
$
18,532
Outstanding at
Applicable
Selected Debt Data
June 30, 2022
Interest Rate
Senior Secured Notes due 2028 (1)
$
114,731,000
7.125
%
Senior Secured Notes due 2024 (2)
$
44,685,000
6.750
%
(1) $114.7 million notes with semi-annual interest payments at an annual rate of 7.125%.
(2) $44.7 million notes with semi-annual interest payments at an annual rate of 6.750%.
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